SandRidge rejects Midstates offer; to explore strategic options

  • SandRidge Energy rejected smaller rival Midstates Petroleum's all-stock bid, calling the offer "highly dilutive."
  • The oil and gas producer also said it had received interest regarding "alternative transactions" from other producers. SandRidge did not provide further details
Source: Sandridge Energy

Oil and gas producer SandRidge Energy on Monday rejected smaller rival Midstates Petroleum's all-stock bid, calling the offer "highly dilutive."

However, the company said it had received interest regarding "alternative transactions" from other producers. SandRidge did not provide further details.

"Midstates Petroleum continues to believe in the merits of the SandRidge Energy transaction proposed on Feb. 6, 2018. Midstates is considering its options with respect to that transaction," Midstates Petroleum spokesman said.

SandRidge also said it would explore strategic options, including divestment or joint venture opportunities at its North Park Basin assets in Colorado.

Oklahoma-based Midstates Petroleum, backed by activist shareholder Fir Tree Partners, had offered to buy SandRidge last month, after activist shareholder Carl Icahn scuppered SandRidge's plans to buy Bonanza Creek Energy.

Under Midstates offer, SandRidge shareholders were to hold 60 percent of the combined company.

SandRidge's shares fell 2.8 percent in aftermarket trading, while Midstates' stock was up 2.2 percent.