SandRidge planning to use revolver to fund Arena acquisition

By Jennifer Lanning Drey

Portland, Ore., April 5 - SandRidge Energy Inc. will draw on its revolving credit facility to fund the cash portion of its acquisition of Arena Resources, Inc., Dirk Van Doren, SandRidge's chief financial officer, said Monday during a company conference call held to discuss the transaction.

SandRidge announced Monday that it had entered into a definitive merger agreement under which SandRidge will issue 4.7771 shares of SandRidge common stock and pay $2.50 in cash for each share of Arena common stock.

"From a financial viewpoint, this is a fantastic acquisition," Van Doren said during Monday's call.

Specifically, he said the transaction meets SandRidge's goals of increasing its exposure to oil and hedging a significant amount of its production for the next three years.

Additionally, it will be cash flow per share accretive for 2011 and improves SandRidge's balance sheet, he said.

The transaction is expected to be completed in June or July.

SandRidge is an Oklahoma City-based natural gas and crude oil company.

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