SDTTU - SandRidge buys SDT overriding royalty interests

SandRidge Energy (SD) +5.1% post-market after saying it acquired all overriding royalty interest assets of SandRidge Mississippian Trust I (SDTTU) for a gross purchase price of $4.85M, or net $3.55M, given the company's 26.9% ownership of the trust.The company says the acquisition will add to its PDP reserves and improve netbacks and cash flow in wells that it mostly already operates."This acquisition is a good example of the relatively low-capital, high-return, quick-payback, 'small-ball' investments that [will] increase shareholder value realization from its asset base," SandRidge says.SandRidge shares are cheap and the company is unhedged in a rising price environment, Josh Young has written in a bullish analysis published on Seeking Alpha.

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SandRidge buys SDT overriding royalty interests