SandRidge Energy, Inc. Announces Increase In Borrowing Base And Extension Of Credit Facility

SandRidge Energy, Inc.

today announced that it has increased the borrowing base and extended the maturity of its senior credit facility. The new, five-year agreement with 27 lending institutions has a maximum facility size of $2 billion and an initial borrowing base of $1.2 billion. Due to its current liquidity position and hedging program, the company elected to initially set a facility limit of $900 million, which can be expanded up to the $1.2 billion borrowing base upon written request. These terms represent a $425 million increase in borrowing base capacity, a $125 million increase in currently available liquidity, and a 25 basis point reduction in drawn borrowing costs. The facility matures on October 22, 2019. Bank of America N.A. acts as the Administrative Agent and is joined by six other lead banks: Barclays Bank PLC, Capital One, Royal Bank of Canada, Sun Trust Bank, Union Bank N.A., and Wells Fargo Bank N.A. "The continued success in our Midcontinent drilling program comfortably supports an increase in our revolver borrowing limit from $775 million to $900 million, which is currently completely undrawn," noted SandRidge CEO and President James Bennett. "We want to assure our shareholders SandRidge is uniquely protected against risks associated with declining crude oil prices plaguing the market today. The combination of our attractive hedge position of over 90% of remaining projected 2014 liquids volumes and the majority of planned liquids production in 2015 hedged at prices over $90 per barrel, as well as our focus on further reducing drilling costs per horizontal lateral well, provides protection to our cash flows and liquidity."