SandRidge Energy debuts trust offering
SandRidge Energy Inc. has commenced an initial public offering for units of SandRidge Mississippian Trust II.
SandRidge Energy Inc. on Monday launched its third initial public offering in a little more than a year for a trust bearing royalty interests in its operations.
The company is offering nearly 30 million units in the SandRidge Mississippian Trust II.
It is the second trust to involve a stake in SandRidge's holdings in the Mississippian formation in northern Oklahoma and southern Kansas.
The new trust, which will trade on the New York Stock Exchange under the ticker symbol “SDR,” will be entitled to a percentage of the proceeds from SandRidge wells on about 53,000 net acres.
SandRidge is selling 26 million common units in the trust, with another 3.9 million available to underwriters. SandRidge will own about 11.3 million units, plus 12.4 million subordinated units that can be converted into common units.
SandRidge made its first trust offering last March, when SandRidge Mississippian Trust I went public. The company followed that in August with the SandRidge Permian Trust.
The two offerings netted SandRidge about $925 million to help fund its capital programs.