SandRidge Energy Down 10% After Announcing Acquisition of Dynamic Offshore Resources

SandRidge Energy

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%.