Sandridge Energy said June 29 it agreed to buy producing assets and leasehold interests in the Cherokee play for $65 million in cash, before customary purchase price adjustments, with potential post-closing earn-outs of up to $6 million tied to future WTI prices.
The package adds about 3.0 thousand barrels of oil equivalent per day of net production, with roughly 43% oil, along with about 7,000 net leasehold acres. Sandridge said the assets include interests in 21 wells and eight proven development locations.
The company said the deal is effective May 1, 2026 and is expected to close in the third quarter of 2026. It plans to fund the purchase with cash on hand.
Sandridge described the acquisition as immediately accretive to production, EBITDA and free cash flow, and said the oily PDP production and new development should further lift its liquids mix on a pro forma basis.
Management said this is the second sizeable Cherokee asset acquisition for the company, following its entry into the play in 2024, and said the new assets directly offset its current drilling and leasing program in the Mid-Continent. Today the company's shares have moved 2.74% to a price of $13.88. For the full picture, make sure to review 's 8-K report.
