SANDRIDGE ENERGY, INC. ANNOUNCES ENTRY INTO DEFINITIVE AGREEMENT TO ACQUIRE ASSETS IN THE CHEROKEE PLAY

Rhea-AI Summary

SandRidge Energy (NYSE: SD) entered a definitive agreement to acquire producing assets and leasehold interests in the Cherokee Play in the Mid-Continent region for $65 million in cash, before adjustments and potential earn-outs of up to $6 million.

The assets include ~3.0 MBoed net production (~43% oil), ~7,000 net acres, interests in 21 wells and eight proved development locations. According to SandRidge, the deal is expected to be immediately accretive to production, EBITDA and free cash flow, with funding from cash on hand. The effective date is May 1, 2026, and closing is anticipated in third-quarter 2026.

Positive

• Cash acquisition price of $65 million plus potential earn-outs up to $6 million
• Adds net production of about 3.0 MBoed, ~43% oil-weighted
• Expands position with ~7,000 net leasehold acres in Cherokee Play
• Includes interests in 21 wells and eight proved development locations
• Company expects acquisition to be immediately accretive to production, EBITDA and free cash flow
• Funded entirely with cash on hand, avoiding equity dilution

Negative

• None.

News Market Reaction – SD

+2.15%

+2.15% Session close to close

In the Jun 29 session, SD gained 2.15%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement adds $65 million of Cherokee assets with 3.0 MBoed output and expanded inventory, ...

Analysis

This announcement adds $65 million of Cherokee assets with 3.0 MBoed output and expanded inventory, consistent with SD’s prior bolt-on strategy. Key risks include future commodity prices and any eventual use of the $500,000,000 shelf for capital raising.

Key Figures

Acquisition price: $65 million Potential earn-outs: $6 million Net production: 3.0 MBoed +5 more

8 metrics

Acquisition price $65 million Cash consideration for Cherokee Play assets before adjustments

Potential earn-outs $6 million Contingent post-closing earn-outs tied to future WTI prices

Net production 3.0 MBoed Production from acquired Cherokee assets

Oil mix 43% oil Liquids share of acquired production

Net leasehold 7,000 acres Net leasehold acres in Cherokee Play from acquisition

Producing wells 21 wells Interests included in the acquired assets

Development locations 8 locations Proven development locations in the acquired package

Safety record 4+ years Period without a recordable safety incident cited by management

Previous Acquisition Reports

2 past events · Latest: Sep 03 (Positive)

Same Type Pattern 2 events

Date	Event	Sentiment	24h Move	Catalyst
Sep 03	Cherokee acquisition closing	Positive	-2.1%	Closed $144M Cherokee acquisition and updated 2024 guidance using cash on hand.
Jul 29	Cherokee acquisition deal	Positive	+2.0%	Announced $144M Cherokee asset acquisition and joint development agreement funded with cash.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Past acquisition announcements for SD have produced mixed, small price reactions, with one positive and one negative move and an almost flat average impact.

Key Terms

mboed, ebitda, free cash flow, earn-outs, +1 more

5 terms

mboed technical

"Net production of ~3.0 MBoed (~43% oil) and ~7,000 net leasehold acres"

mboed stands for “thousand barrels of oil equivalent per day,” a unit that combines oil, natural gas and other hydrocarbons into a single daily production measure by converting gas into an oil-equivalent amount. Think of it like converting different fruits into apple-equivalents so you can compare total output easily. Investors use it to gauge a producer’s scale, revenue potential and operating efficiency because higher mboed usually means more product to sell and greater cash flow.

ebitda financial

"Immediately accretive to key metrics, including production, EBITDA and free cash flow"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

free cash flow financial

"Immediately accretive to key metrics, including production, EBITDA and free cash flow"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

earn-outs financial

"Potential post-closing adjustments may include earn-outs of up to $6 million"

Earn-outs are contingent future payments a seller of a business receives after a sale if the company hits agreed performance targets over a fixed period—such as revenue, profit, or customer milestones. They matter to investors because they alter the deal’s effective price and future cash flows, align seller and buyer incentives, and introduce measurement and timing risk—think of it like part of a sale price being paid later only if promised results are delivered.

wti financial

"earn-outs of up to $6 million paid to seller based on certain predetermined average future WTI prices"

West Texas Intermediate (WTI) is a widely used grade of crude oil and one of the main global benchmarks for oil prices, serving as a common yardstick that buyers and sellers use to set contracts. Investors watch WTI because its price influences energy company profits, fuel and transport costs, inflation expectations and broad market sentiment—similar to how a central market price for apples would shape decisions for growers, grocery stores and consumers.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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OKLAHOMA CITY, June 29, 2026 /PRNewswire/ -- SandRidge Energy, Inc. (the "Company" or "SandRidge") (NYSE: SD) today announced the 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.⁽¹⁾

Acquisition Highlights

• Acquisition assets located within the Mid-Continent region, directly offsetting SandRidge's current drilling operations and leasing program
• Net production of ~3.0 MBoed (~43% oil) and ~7,000 net leasehold acres provide additional inventory and expand efficient operations in the area
• Includes interests in 21 wells and eight proven development locations
• Immediately accretive to key metrics, including production, EBITDA and free cash flow⁽²⁾
• Oily PDP production and new development are projected to further increase SandRidge's liquids mix on a pro forma basis
• May 1, 2026 effective date with anticipated closing in the third quarter 2026. SandRidge plans to fund the transaction with cash on hand

Grayson Pranin, SandRidge's President & Chief Executive Officer, commented on the acquisition:

"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, and this acquisition provides an opportunity to further expand our efficient operations in this high-quality area while striving to maintain our impressive record of more than four years without a recordable safety incident.

SandRidge is uniquely positioned to fund this transaction with cash on hand while keeping a meaningful cash balance post-close to support future strategic initiatives, the Company's return of capital program and other uses."

Vince Intrieri, Chairman of SandRidge's Board of Directors, further commented:

"This is the second sizeable asset acquisition for the Company in the Cherokee Play as the team continues to make tremendous progress expanding its strong position in the area. Adding assets to the portfolio that further increase SandRidge's liquids mix and add quality drilling inventory will help the team continue to create value." 

Legal Advisor
Sidley Austin LLP is serving as SandRidge's legal advisor for the transaction.

Contact Information
Investor Relations
SandRidge Energy, Inc.
1 E. Sheridan Ave. Suite 500
Oklahoma City, OK 73104
investors@sandridgeenergy.com

About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the production, development, and acquisition of oil and gas properties. Its primary area of operation is the Mid-Continent region in Oklahoma, Texas, and Kansas. Further information can be found at sandridgeenergy.com.

(1)	Potential post-closing adjustments may include earn-outs of up to $6 million paid to seller based on certain predetermined average future WTI prices.
(2)	EBITDA and free cash flow are non-GAAP financial measures. For reconciliations of non-GAAP measures to the most relevant GAAP measure, please see the Company's website (sandridgeenergy.com).

Cautionary Note to Investors - This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are neither historical facts nor assurances of future performance and reflect SandRidge's current beliefs and expectations regarding future events and operating performance. The forward-looking statements include projections and estimates of the Company's corporate strategies, anticipated financial impacts of the proposed transaction, future operations, development plans and appraisal programs, drilling inventory and locations, estimated oil, natural gas and natural gas liquids production, price realizations and differentials. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including the possibility that the transaction does not close or that the closing may be delayed because conditions to the closing may not be satisfied, the performance of the acquired interests, the volatility of oil and natural gas prices, our success in discovering, estimating, developing and replacing oil and natural gas reserves, actual decline curves and the actual effect of adding compression to natural gas wells, the availability and terms of capital, the ability of counterparties to transactions with us to meet their obligations, our timely execution of hedge transactions, credit conditions of global capital markets, changes in economic conditions, the amount and timing of future development costs, the availability and demand for alternative energy sources, regulatory changes, including those related to carbon dioxide and greenhouse gas emissions, and other factors, many of which are beyond our control. We refer you to the discussion of risk factors in Part I, Item 1A - "Risk Factors" of our Annual Report on Form 10-K and in comparable "Risk Factor" sections of our Quarterly Reports on Form 10-Q filed after such form 10-K. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on our Company or our business or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, except as required by law. 

SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the production, development, and acquisition of oil and gas properties. Its primary area of operations is the Mid-Continent region in Oklahoma, Texas, and Kansas. Further information can be found at sandridgeenergy.com.

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SOURCE SANDRIDGE ENERGY, INC.

FAQ

What did SandRidge Energy (NYSE: SD) announce about the Cherokee Play acquisition on June 29, 2026?

SandRidge announced a definitive agreement to buy producing assets and leasehold interests in the Cherokee Play for $65 million in cash. According to SandRidge, the deal includes production, acreage, and development locations that complement its existing Mid-Continent operations.

How much production does SandRidge’s 2026 Cherokee Play acquisition add for SD shareholders?

The Cherokee Play assets are expected to add about 3.0 MBoed of net production, approximately 43% oil. According to SandRidge, this oily production should increase the company’s liquids mix on a pro forma basis, potentially enhancing cash flow quality.

What acreage and drilling inventory is included in SandRidge (SD) Cherokee Play deal?

The acquisition includes roughly 7,000 net leasehold acres, interests in 21 wells, and eight proved development locations. According to SandRidge, these bolt-on assets expand its inventory and directly offset its current drilling and leasing programs in the Mid-Continent.

How is SandRidge funding its $65 million Cherokee Play acquisition and will there be dilution for SD stock?

SandRidge plans to fund the $65 million cash consideration entirely with cash on hand. According to SandRidge, this structure avoids issuing new equity, so the transaction does not create share dilution for existing SD shareholders.

When is SandRidge’s Cherokee Play acquisition effective and when is closing expected?

The transaction has an effective date of May 1, 2026, with closing anticipated in the third quarter of 2026. According to SandRidge, the deal remains subject to customary purchase price adjustments and potential post-closing adjustments.

Why does SandRidge Energy say the Cherokee Play acquisition is accretive for SD investors?

SandRidge expects the acquisition to be immediately accretive to key metrics, including production, EBITDA and free cash flow. According to SandRidge, the oily PDP production and new development opportunities also increase its overall liquids mix going forward.