Midstates Petroleum Stands by Merger Proposal

The announcement this week by SandRidge Energy that it would not accept any merger proposal from Tulsa-based Midstates Petroleum drew only a brief response from Midstates.

The company issued a statement following the rejection by SandRidge Energy.

“Midstates Petroleum continues to believe in the merits of the SandRidge Energy transaction proposed on February 6, 2018. Midstates is considering its options with respect to that transaction.”

As OK Energy Today reported, SandRidge Energy leadership said they rejected the proposed merger because “the relative asset values of the two companies do not support a combination effected at current stock prices.”

They suggested the economic benefits of such a merger would not be as positive as claimed by Midstates Petroleum leadership.

“SandRidge has concluded that accepting Midstates’ proposal would be highly dilutive and not in the best long-term interests of SandRidge stockholders,” said SandRidge.

But the Oklahoma City-based company indicated it might consider other potential offers from other firms.