Open report — full analysis, no account required.
Sign up to generate reports and read filings that aren't on the open list.
Get notified when SD files again. Create a free account and we'll email you the moment its next filing is analyzed.
Get filing alertsSandRidge acquires Cherokee Play assets for $65M, adding 3.0 MBoed production
Filed June 29, 2026 · Period ending June 26, 2026 · ~1 min read
Key Changes
-
high
SandRidge subsidiary acquiring oil and gas assets in Cherokee Play for $65M cash plus up to $6M in WTI price-linked earn-outs through Dec 2027, adding ~3.0 MBoed production (43% oil) and 7,000 net acres offsetting current operations.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
high
Transaction expected to be immediately accretive to production, EBITDA, and free cash flow, increasing SandRidge's liquids mix on a pro forma basis.
Exhibit 99.1 view on EDGAR → -
high
Acquisition includes interests in 21 wells and eight proven development locations, directly offsetting SandRidge's current drilling and leasing programs in the Mid-Continent region.
Exhibit 99.1 view on EDGAR → -
medium
Deal funded entirely with cash on hand, with Q3 2026 closing expected and May 1, 2026 effective date, indicating sufficient liquidity without external financing.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
Summary
SandRidge Energy disclosed a $65 million bolt-on acquisition in the Cherokee Play, its second major purchase in the region since entering in 2024. The deal adds approximately 3,000 barrels of oil equivalent per day of production (43% oil), 21 producing wells, eight proven development locations, and 7,000 net acres that directly offset the company's existing Mid-Continent operations.
The purchase price includes up to $6 million in contingent earn-outs tied to WTI crude prices exceeding specified thresholds between July 2026 and December 2027, creating upside exposure to oil price movements. Management expects the transaction to be immediately accretive to production, EBITDA, and free cash flow while increasing the company's liquids mix.
The acquisition will be funded entirely with cash on hand and is expected to close in Q3 2026 with a May 1, 2026 effective date. The bolt-on nature should enable operational efficiencies given the assets' proximity to current drilling programs. Management emphasized the company can complete the transaction while maintaining cash balances for future strategic initiatives and its return of capital program.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On June 26, 2026, SandRidge Exploration and Production, LLC, a Delaware limited liability company (the “Purchaser”) and a wholly owned subsidiary of SandRidge Energy, Inc. (the “Company”), entered into a Purchase and Sale Agreement, dated June 26, 2026, by and among Rockies Resources Holdings LLC, a Delaware limited liability company, and Rockies Resources Agent Corp., a Delaware corporation, as agent for Rockies Resources Holdings LLC (each of the foregoing, a “Seller” and collectively, the “Sellers”) (the “Purchase Agreement”), providing for the Purchaser’s acquisition of the Sellers’ right, title and interest in certain oil and gas properties and related assets and contracts (the “Assets”).
SandRidge's wholly owned subsidiary entered into an agreement to acquire oil and gas properties and related assets from Rockies Resources entities. The transaction involves certain oil and gas properties and associated contracts, expanding SandRidge's asset base.
Added in current filing · verify on EDGAR →
Pursuant to the Purchase Agreement, the Assets will be acquired for $65,000,000 in cash consideration at closing, subject to customary purchase price adjustments, and three contingent earn-out payments of $2,000,000 each, based on exceeding the average daily spot price for West Texas Intermediate crude oil at certain price thresholds beginning July 1, 2026 and ending December 31, 2027.
The purchase price is $65 million in cash at closing, with potential additional payments totaling up to $6 million through three contingent earn-outs of $2 million each. These earn-outs are tied to WTI crude oil prices exceeding specified thresholds during an 18-month period from July 2026 through December 2027, creating upside exposure to oil price movements.
Added in current filing · verify on EDGAR →
The transaction is expected to be funded with cash on hand and is anticipated to close in the third quarter of 2026, subject to the satisfaction of customary closing conditions.
The acquisition will be funded with existing cash and is expected to close in Q3 2026, subject to standard closing conditions. This indicates SandRidge has sufficient liquidity to complete the transaction without requiring external financing.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
entry into a definitive agreement to acquire certain producing assets and leasehold interests in the Cherokee Play in the Mid-Continent region for cash consideration of $65 million, before customary purchase price adjustments and potential post-closing adjustments.
SandRidge has entered a definitive agreement to acquire producing assets and leasehold in the Cherokee Play for $65 million cash, subject to customary adjustments. The acquisition includes interests in 21 wells, eight proven development locations, net production of approximately 3.0 thousand barrels of oil equivalent per day (43% oil), and approximately 7,000 net leasehold acres. The assets directly offset SandRidge's current drilling operations and leasing program in the Mid-Continent region.
Added in current filing · view on EDGAR →
May 1, 2026 effective date with anticipated closing in the third quarter 2026. SandRidge plans to fund the transaction with cash on hand
The acquisition has a May 1, 2026 effective date and is expected to close in the third quarter of 2026. SandRidge plans to fund the $65 million purchase entirely with cash on hand, indicating the company has sufficient liquidity to complete the transaction without raising external capital.
Added in current filing · view on EDGAR →
Potential post-closing adjustments may include earn-outs of up to $6 million paid to seller based on certain predetermined average future WTI prices.
Beyond the $65 million base purchase price, the agreement includes potential earn-out payments of up to $6 million to the seller. These contingent payments are tied to predetermined average future West Texas Intermediate (WTI) oil prices, meaning the final consideration could reach $71 million depending on commodity price performance.
Added in current filing · view on EDGAR →
Immediately accretive to key metrics, including production, EBITDA and free cash flow
Management expects the acquisition to be immediately accretive to production, EBITDA, and free cash flow. The oily producing developed producing (PDP) production and new development opportunities are projected to increase SandRidge's liquids mix on a pro forma basis, which typically commands higher realizations than natural gas.
Added in current filing · view on EDGAR →
We’re excited to continue expanding our footprint in the Mid-Continent by bolstering our inventory with quality bolt-on production and acreage that immediately offsets the area of our current drilling and leasing programs. Our team has delivered strong results in the Cherokee since entering the play in 2024
This represents SandRidge's second sizeable asset acquisition in the Cherokee Play since entering in 2024. The bolt-on nature of the acquisition—directly offsetting existing operations—should enable operational efficiencies and synergies. Management emphasizes the company can fund the transaction while maintaining meaningful cash balances for future strategic initiatives and its return of capital program.
Thanks — your feedback helps us improve report quality.
Figures/quotes linked to EDGAR · Narrative written by AI · Jul 6, 2026 · How we verify