8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 14, 2009

SANDRIDGE ENERGY, INC.

(Exact name of registrant as specified in its charter)

Delaware	1-33784	20-8084793
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

123 Robert S. Kerr Avenue
Oklahoma City, Oklahoma	73102
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, including Area Code: (405) 429-5500

Not Applicable.
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EX-99.1

EX-99.2

Item 2.02 – Results of Operations and Financial Condition.

     On January 14, 2009, SandRidge Energy, Inc. (“the Company”) issued a press release describing certain operational results. A copy of the Company’s press release is attached hereto as Exhibit 99.1, is incorporated herein by reference, and is hereby filed.

Item 8.01 – Other Events.

     On January 14, 2009, the Company issued a press release announcing the commencement of a private placement of convertible perpetual preferred stock. A copy of the Company’s press release is attached hereto as Exhibit 99.2, is incorporated herein, and is hereby filed.

     In addition, the Company has announced the following risk, which should be considered in addition to the risks described under the heading “Risk Factors” in the Company’s annual report on Form 10-K for the year ended December 31, 2007, as amended, and the Company’s quarterly report for the three months ended September 30, 2008.

Recent and future price declines may result in a writedown of the asset carrying values of our natural gas and oil properties.

     We utilize the full-cost method of accounting for costs related to our natural gas and oil properties. Under this accounting method, all such costs for both productive and nonproductive properties are capitalized and amortized on an aggregate basis over the estimated lives of the properties using the unit-of-production method. However, the amount of these costs that can be carried as capitalized assets is subject to a ceiling, which limits such pooled costs to the aggregate of the present value of future net revenues of proved natural gas and oil reserves attributable to proved properties, discounted at 10%, plus the lower of cost or market value of unproved properties. The full-cost ceiling is evaluated at the end of each quarter using the prices for natural gas and oil in effect at the end of the quarter, adjusted for the impact of derivatives accounted for as cash flow hedges. A significant decline in natural gas and oil prices from historic levels, such as that experienced in the fourth quarter of 2008, or other factors, without other mitigating circumstances, could cause us to make a writedown of capitalized costs of our natural gas and oil properties and a non-cash charge against fourth quarter 2008 earnings or future earnings. The amount of such a writedown and non-cash charge could be substantial. Our ceiling limitation applicable to the fourth quarter of 2008 cannot be determined as of the date of this report, and its impact on earnings and asset carrying values cannot be estimated, until all necessary information is available, including our estimates of year-end proved reserves.

Item 9.01 – Financial Statements and Exhibits.

     (d) Exhibits.

Exhibit No.	Description
99.1	Press release dated January 14, 2009 regarding operational results.
99.2	Press release dated January 14, 2009 regarding the private placement.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

	SANDRIDGE ENERGY, INC. (Registrant)
Date: January 14, 2009	By:	/s/ Dirk M. Van Doren
		Dirk M. Van Doren
		Executive Vice President and Chief Financial Officer

 

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated January 14, 2009 regarding operational results.
99.2	Press release dated January 14, 2009 regarding the private placement.

EX-99.1

Exhibit 99.1

SandRidge Energy, Inc. Provides Financial and Operational Updates

Oklahoma City, Oklahoma, January 14, 2009 – SandRidge Energy, Inc. (NYSE:SD) today provided an update on its daily production rates and hedging activities. The company exited 2008 producing approximately 325 MMcfe per day, excluding a minor amount of production shut in due to well work. Total production for 2008 is expected to be approximately 100 Bcfe, an increase of 56% over 2007.

The company is currently in negotiations to sell its midstream assets located in the Piñon Field. Based on preliminary indications of interest, the company expects to consummate a sale of its midstream assets in the Piñon Field in the second quarter of 2009. This transaction is valued at approximately $500 million from a combination of net cash proceeds and reduction in midstream capital expenditures.  The company has not entered into any binding agreement with respect to this transaction and there can be no assurance it will be successful in doing so. As a result of the planned sale of the company’s midstream assets in the Piñon Field and the anticipated closing of a concurrently announced private placement, the company intends to increase its 2009 capital expenditure budget from the previously announced $500 million to $700 million. This planned increase results in increased production guidance for 2009 of between 115 to 120 Bcfe, which is a 5 to 10 Bcfe increase over the previous guidance of 110 Bcfe. The company expects that the planned increase in capital expenditures will allow it to load the first phase of the Century Plant in 2010. As a result of these planned transactions, the company is reevaluating its options with respect to its undeveloped deep rights in East Texas.

The company has increased its hedged position since mid-December with the primary focus on 2010. For 2009, the company’s natural gas and crude oil swap positions remain unchanged, 78.7 Bcf and 0.18 MMBbls, respectively, and the average price is $8.61 per Mcfe.  For 2009, SandRidge has increased natural gas basis swap volume to 69.4 Bcfe from 65.7 Bcfe at a price of $0.74 which is unchanged from mid-December.  For 2010, natural gas swaps have increased to 79.4 Bcfe from 57.5 Bcfe, a 38% increase with a current average price of $7.71 per Mcf. Also, the company has increased natural gas basis swaps in 2010 to 58.4 Bcf from 54.8 Bcf and the price of $0.74 remains unchanged. There are currently no crude oil trades for 2010. A more detailed description of the company’s hedge positions is set forth in the table below.

									Year
	Quarter Ending								Ending
	3/31/2009		6/30/2009		9/30/2009		12/31/2009		12/31/2009
Natural Gas Swaps:
Volume (Bcf)		20.70		20.93		18.71		18.40		78.74
Swap	$	9.14	$	7.96	$	8.09	$	8.54	$	8.43
Natural Gas Basis Swaps:
Volume (Bcf)		17.10		17.29		17.48		17.48		69.35
Swap	$	0.74	$	0.74	$	0.74	$	0.74	$	0.74
Crude Oil Hedges:
Swap Volume (MMBbls)		0.05		0.05		0.05		0.05		0.18
Swap	$	126.38	$	126.71	$	126.61	$	126.51	$	126.55

									Year
	Quarter Ending								Ending
	3/31/2010		6/30/2010		9/30/2010		12/31/2010		12/31/2010
Natural Gas Swaps:
Volume (Bcf)		19.58		19.79		20.01		20.01		79.39
Swap	$	8.01	$	7.32	$	7.55	$	7.97	$	7.71
Natural Gas Basis Swaps:
Volume (Bcf)		14.40		14.56		14.72		14.72		58.40
Swap	$	0.73	$	0.73	$	0.73	$	0.73	$	0.73
Crude Oil Hedges:
Swap Volume (MMBbls)		0.00		0.00		0.00		0.00		0.00
Swap	NM		NM		NM		NM		NM

Approximately $574 million of the $1.1 billion currently available under the company’s revolving credit facility was drawn at year end, consistent with prior guidance. Except as otherwise discussed above, the company also confirmed the other guidance provided by it on December 16, 2008.

The company will host a conference call to discuss this release on Thursday, January 15, 2009 at 8:00 am CST. The telephone number to access the conference call from within the U.S. is 866-203-3206 and from outside the U.S. is 617,213-8848. The passcode for the call is 5124450. An audio replay of the call will be available at 11:00 am CST on January 15, 2009 until 11:59 pm CST on February 5, 2009. The number to access the conference call replay from within the U.S. is 888-286-8010 and from outside the U.S. is 617-801-6888. The passcode for the replay is 30578593.

A live audio webcast of the conference call will also be available via SandRidge’s website, www.sandridgeenergy.com, under Investor Relations/Events.  The webcast will be archived for replay on the company’s website for 30 days.

For further information, please contact:

Kevin R. White
Senior Vice President
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, Oklahoma 73102-6406
(405) 429-5515

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements express a belief, expectation or intention and are generally accompanied by words that convey projected future events or outcomes. The forward-looking statements include projections and estimates of future natural gas and oil production, pricing differentials, operating costs and capital spending, our development plans and estimates of future net cash flows. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including the volatility of natural gas and oil prices, our success in discovering, estimating, developing and replacing natural gas and oil reserves, the availability and terms of capital, the continued availability of credit under existing credit facilities, divestitures and other transactions involving our properties, the amount and timing of future development costs and other factors, many of which are beyond our control. We refer you to the discussion of risks under Risk Factors in the prospectus we filed with the Securities and Exchange Commission (“SEC”) on September 17, 2008 and in Part II, Item 1A — Risk Factors of our Quarterly Report on Form 10-Q filed with the SEC on November 6, 2008. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on our company or our business or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise any forward-looking statements.

SandRidge Energy, Inc. is a natural gas and crude oil company headquartered in Oklahoma City, Oklahoma with its principal focus on exploration and production. SandRidge and its subsidiaries also own and operate gas gathering and processing facilities and CO2 treating and transportation facilities and conduct marketing and tertiary oil recovery operations. In addition, Lariat Services, Inc., a wholly-owned subsidiary of SandRidge, owns and operates a drilling rig and related oil field services business. SandRidge focuses its exploration and production activities in West Texas, the Cotton Valley Trend in East Texas, the Gulf Coast, the Mid-Continent, and the Gulf of Mexico. SandRidge’s Internet address is www.sandridgeenergy.com.

EX-99.2

Exhibit 99.2

SandRidge Energy, Inc. Announces Private Offering of $220 Million Convertible Perpetual Preferred Stock

Oklahoma City, Oklahoma, January 14, 2009 — SandRidge Energy, Inc. (NYSE:SD) today announced that it commenced a private offering to eligible purchasers of approximately $220 million of a new series of convertible perpetual preferred stock. The company expects to grant a 30-day option to the initial purchasers to purchase approximately $40 million in additional shares of preferred stock. SandRidge intends to use the net proceeds of the offering to repay outstanding borrowings under its revolving credit facility and for general corporate purposes.

The preferred stock has not been registered under the Securities Act of 1933 or applicable state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. The company plans to offer and issue the preferred stock only to qualified institutional buyers pursuant to Rule 144A under the Securities Act.

This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.