Most Active Stories
- One Dead After Oklahoma Flooding, Tornadoes; Fallin Declares State Of Emergency
- Norman Man Faces Charges For Teaching People How To Beat A Lie Detector
- What Oklahoma Farmers Think About The Right-To-Farm Issue In Oklahoma
- House Introduces Resolution Directing University Of Oklahoma To Return Controversial Painting
- How The 1970s Changed The Role Of Human Rights In U.S. Foreign Policy
Tue January 7, 2014
OKC-Based SandRidge Sells Gulf Of Mexico Assets
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.
KGOU is a community-supported news organization and relies on contributions from readers and listeners to fulfill its mission of public service to Oklahoma and beyond. Donate online, or by contacting our Membership department.
Co-founder of Chesapeake and SandRidge