SandRidge Energy Inc. (NYSE: SD) has closed the sale of its Permian Basin properties, excluding assets associated with SandRidge Permian Trust (NYSE: PER), to Sheridan Holding Co. II LLC for total cash proceeds of US $2.6 billion.
The effective date of the sale is Jan. 1. During 4Q 2012, the divested properties produced 23 thousand barrels of oil equivalent per day. Proceeds will be used to reduce debt, fund capital expenditures, and for general corporate purposes.
SandRidge has also initiated a process to redeem all of its outstanding 9.875% senior notes due 2016, which have an aggregate principal amount outstanding of US $365.5 million and all of its 8% senior notes due 2018, which have an aggregate principal amount outstanding of US $750 million. Each series of notes is being redeemed for 100% of the principal amount thereof, plus a premium as of the redemption date as well as accrued and unpaid interest on the notes at that time. The redemption date is March 28.
SandRidge Energy is an oil and natural gas company headquartered in Oklahoma City, with its principal focus on E&P.