SandRidge acquires Piñon Gathering from EIG

SandRidge Energy Inc. (NYSE: SD) has entered into an agreement to acquire Piñon Gathering Co. LLC from EIG Global Energy Partners for $48 million cash and $78 million of its 8.75% senior secured notes due 2020.

The Piñon Gathering Co. owns 370 miles of gathering lines supporting the natural gas and carbon-dioxide production from the SandRidge's Piñon field in West Texas. As a result of the transaction, SandRidge will eliminate minimum volume commitment payments of $40 million per year, forecasted to continue until 2021 and additional contractual fees thereafter, as well as secure a strategic asset supporting its West Texas natural gas production.

The transaction is anticipated to close in the fourth quarter of 2015.

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