SandRidge to review strategic alternatives after rejecting Midstates’ proposal

SandRidge Energy Inc. will evaluate strategic alternatives after rejecting Midstates Petroleum Co. Inc.’s unsolicited public offer to combine the two companies.

SandRidge Energy Inc., Oklahoma City, will evaluate strategic alternatives after rejecting Midstates Petroleum Co. Inc.’s unsolicited public offer to combine the two companies (OGJ Online, Feb. 6, 2018).

The process includes, but is not limited to, an evaluation of divestment or joint venture opportunities associated with its North Park basin assets and potential corporate and asset combination options with other Midcontinent operators. SandRidge engaged RBC Capital Markets as its financial advisor.

SandRidge concluded that the relative asset values of the two companies do not support a combination effected at current stock prices. The decision was primarily based on widely differing opinions of Midstates’ proved oil and gas reserves, largely related to the assessment of the number of economically viable drilling locations at current oil and gas prices, the company said.

Bill Griffin, president and chief executive officer, said, “In light of ongoing feedback from shareholders and several expressions of interest we have recently received, we have decided to engage advisors to solicit third-party proposals and assist in evaluating all strategic options available to the company (OGJ Online, Feb. 9, 2018).”

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