SandRidge Energy Issues Letter To Shareholders On Bonanza Creek Acquisition

(RTTNews) - SandRidge Energy, Inc. (SD) said it has issued a letter to its shareholders highlighting the benefits of its acquisition of Bonanza Creek Energy, Inc. (BCEI).

In addition, the company said it will file a registration statement on Form S-4 today, which will communicate the strategic rationale behind the proposed acquisition and contain other important details and analysis regarding the transaction. The company has also launched a dedicated website with information regarding the transaction.

In the letter to its shareholders, SandRidge Energy noted that the acquisition of Bonanza Creek will provide immediate cash flow and high-return development opportunities that will allow the company to continue generating strong risk-adjusted returns while it delineates its emerging assets.

According to SandRidge, the acquisition will result in 15 percent accretion to cash flow per share in addition to a 4 percent accretion to net asset value per share in 2018, while significantly reducing the company's risk profile.

Further, the company noted that the acquisition will result in at least $20 million in annual G&A savings and an increase to 41 percent oil production in 2018, from 35 percent.