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Wired News – Sandridge Energy Confirms Midstates Petroleum's Unsolicited Proposal; Plans to Weigh in Pros and Cons

Stock Monitor: Midstates Petroleum Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 09, 2018 / Active-Investors.com has just released a free research report on SandRidge Energy, Inc. (NYSE: SD) ("SD"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SD as the Company's latest news hit the wire. On February 07, 2018, the Company confirmed that it has received an unsolicited proposal from Midstates Petroleum Company, Inc. (NYSE: MPO) ("MPO"). MPO proposed the merger of the two Companies in an all-stock deal. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, SandRidge Energy and Midstates Petroleum most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=SD

www.active-investors.com/registration-sg/?symbol=MPO

Responding to the offer, the Company has stated that its Board of Directors will consult with its independent financial and legal advisors to review and evaluate MPO's offer. The Board will take into consideration all the pros and cons of MPO's offer before taking an informed decision which will be in the best interests of the Company and its stakeholders.

MPO's Proposal for merger

MPO had made an unsolicited offer to merge with SD via an all-stock deal on February 06, 2018. The deal if accepted by SD would create a leading exploration and production company in the Mississippian Lime play. MPO offered 1.068 MPO's share for each SD's share. If the transaction is completed, SD's shareholders would own nearly 60% in the merged entity and the remaining 40% would be owned by MPO's shareholders. MPO confirmed that the deal had the support of its majority shareholders - Fir Tree Partners and Avenue Capital Group. Interestingly, Fir Tree Partners own 8.3% stake in SD. MPO believes that since there is a significant shareholder overlap the deal would be in the best interests of the shareholders of both companies.

Commenting on the benefits of its offer, David J. Sambrooks, President and CEO of MPO, said:

"We are ready to move forward immediately to negotiate a merger agreement to form a stronger, more formidable Company. The combined Company will have zero net debt, strong liquidity, and forecasted free cash flow generation of up to $480 million over the next five years."

MPO's proposal also envisions that its current CEO David J. Sambrooks would lead the merged Company. MPO plans to implement certain business strategies focused on proven assets in the Mississippian Lime including optimized drilling program, maintain high-grades of inventory and utilizes the latest completion technology to drive shareholder value and improve cash flows. MPO also plans to divest non-core assets of the merged Company for better financial performance.

MPO is confident of closing the transaction in Q2 2018 and is willing to work purposefully towards achievement of this goal

Benefits of the merger envisioned by MPO

MPO believes that the merger of MPO and SD has major benefits for both their shareholders which would not be possible on a standalone basis. Some of the key points cited by MPO include:

The merger would be accretive to shareholders of both companies and the merged Company would have annual synergies of over $70 million and projected annual free cash flow of over $100 million.

The merged Company would have increased scale, liquidity, access to capital markets, and investments from a wider audience which would help in future growth and expansion.

The merged Company would together have control over 450,000 net acres in the core of the Mississippian Lime play and produce over 53,000 barrels of oil equivalent per day and own 75,000 net acres in the emerging NW STACK play having significant upside potential.

Factors affecting SD's decision

SD has been facing opposition from activist investor Carl Icahn regarding the Company's management. Carl Icahn has been pressuring SD's management to look at unlocking value for its shareholders. This sentiment is supported by another SD's investor - Fir Tree Partners. SD had proposed to acquire Bonanza Creek Energy (NYSE: BCEI) in November 2017 for approximately $746 million. However, Carl Icahn and Fir Tree Partners had strongly opposed the deal. Ultimately the deal fell through in December 2017, after SD failed to garner shareholders' support.

Given that Fir Tree Partners is an investor in both SD and MPO, the deal is sure to get support from major shareholders of SD. Also, since Fir Tree Partners supported Carl Icahn in opposing the Bonanza Creek deal, and since Carl Icahn is looking to unlock shareholder value, it can be surmised that he would support the SD-MPO merger.

However, it would be interesting to see how this deal unfolds.

About SandRidge Energy, Inc.

Oklahoma City, Oklahoma-based SD is an oil and natural gas exploration and production company with its principal focus on developing high-return, growth-oriented projects in US Mid-Continent and Niobrara Shale. SD's drilling activity is currently concentrated in two areas: the NW STACK in Oklahoma and the North Park Basin in Jackson County, Colorado.

About Midstates Petroleum Company, Inc.

Tulsa, Oklahoma-based MPO is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore US. It operations are currently focused on oilfields in the Mississippian Lime play in Oklahoma and the Anadarko Basin in Texas and Oklahoma.

Stock Performance Snapshot

February 08, 2018 - At Thursday's closing bell, SandRidge Energy's stock dropped 3.59%, ending the trading session at $16.10.

Volume traded for the day: 685.79 thousand shares, which was above the 3-month average volume of 649.22 thousand shares.

After yesterday's close, SandRidge Energy's market cap was at $589.10 million.

Price to Earnings (P/E) ratio was at 0.13.

The stock is part of the Basic Materials sector, categorized under the Oil & Gas Drilling & Exploration industry.

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