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OKC-Based SandRidge Sells Gulf Of Mexico Assets

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SandRidge Energy

SandRidge Energy is selling all of its holdings in the Gulf of Mexico.

The Oklahoma City-based oil and natural gas company announced early Tuesday morning Fieldwood Energy will pay $750 million in cash and assume $370 million in abandonment liabilities for its Gulf and coastal properties.

“One of the things this does is turns us into a higher-growth business,” SandRidge President and CEO James Bennett said Tuesday during an investor conference call. “So in our minds, we’re selling an asset that had declining production and declining cash flow and taking that capital and redeploying it in areas where we have some clear competitive advantages.”

Bennett said the company had projected a 10-15 percent decline in their offshore assets between 2013 and 2014.

“It was masking some of the growth in our on-shore business,” Bennett said.

In a news release, the company says it plans to use funds previously dedicated to Gulf projects to develop assets in its Mid-Continent properties, which should boost its production by nearly 7 million barrels of oil equivalent over the previous year.

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Brian Hardzinski is from Flower Mound, Texas and a graduate of the University of Oklahoma. He began his career at KGOU as a student intern, joining KGOU full time in 2009 as Operations and Public Service Announcement Director. He began regularly hosting Morning Edition in 2014, and became the station's first Digital News Editor in 2015-16. Brian’s work at KGOU has been honored by Public Radio News Directors Incorporated (PRNDI), the Oklahoma Association of Broadcasters, the Oklahoma Associated Press Broadcasters, and local and regional chapters of the Society of Professional Journalists. Brian enjoys competing in triathlons, distance running, playing tennis, and entertaining his rambunctious Boston Terrier, Bucky.
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