SandRidge Energy Down 10% After Announcing Acquisition of Dynamic Offshore Resources
SandRidge Energy (NYSE: SD) is trading lower on the session following its announcement to acquire Dynamic Offshore Resources. Under the terms of agreement SandRidge Energy will pay $1.275 billion consisting of approximately $680 million in cash and approximately 74 million shares of SandRidge common stock valued at $8.02 per share.
CEO of SandRidge, Tom Ward said: "The value of this acquisition will be evident immediately in our results. We are acquiring these assets for less than PV-10 of the proved developed reserves and at just over $50,000 per flowing barrel. Additionally, we expect these operations to contribute significant free cash flow in excess of the anticipated annual drilling and recompletion capital budget of $200 million."
SandRidge Energy is currently trading at $7.05, a loss of $0.78 or 10.03%.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.