SandRidge Energy Inc. has sold more than 1 million shares each of its SandRidge Permian Trust and SandRidge Mississippian Trust II for a total of nearly $30 million, the Oklahoma oil and natural gas company said Tuesday.
SandRidge CEO James Bennett said the sale is routine and is part of the company's original plan for the trusts.
“We've said all along we intend to use the trust units we've retained as ongoing sources of capital to continue to fund our business at an attractive evaluation,” Bennett said in an interview with The Oklahoman on Tuesday.
“This is us continuing to slowly monetize those units to bring in additional capital to the business,” he said.
This week's sale is the fourth time SandRidge has sold shares in the trusts since their initial public offerings.
After the sale, SandRidge still owns more than 1.8 million Permian Trust common units and more than 13.1 million subordinated units. The company also owns more than 6.2 million Mississippian Trust II common units and more than 12.4 million subordinated units.
“We chose to sell a small amount of units so as to not adversely impact the trading price of the units,” Bennett said.
Bennett said the proceeds will be used for general corporate purposes, including the continued development of the Mississippian assets.
“When we did those trusts one and two years ago, it was a great source of capital for us to monetize some of our acreage position in a yield vehicle,” Bennett said. “It allowed us to step up development of the Mississippian.”