The Many Things To Like About Sandridge Energy
SandRidge Energy (SD) released first quarter earnings on May 3, reporting net income of $0.04 cents per share. Its earnings reportalso revealed record oil production for the company of 3.4 mmbbls, with peak production of 99 mboe per day just before the earnings report. I think this is a sign of SandRidge’s recent growth and an indication of good things to come.
Expect SandRidge’s CEO Tom Ward to be in the news in coming weeks, and perhaps not in a positive light. Ward was co-founder and former President of Chesapeake Energy (CHK) until 2006, when he resigned from Chesapeake and bought a stake in Riata Energy, which later became SandRidge. Ward ran the hedge fund that is currently under scrutiny with McClendon from 2004 until his resignation.
Growth Through Acquisition
SandRidge recently completed the acquisition of Dynamic Offshore Resources, LLC. It was a quick move by SandRidge, considering Dynamic’s first IPO was just completed in January 2012 and the first reports of the acquisition by SandRidge came mere weeks later, on February 1. It was a quick move by SandRidge, considering Dynamic’s first IPO was just completed in January 2012 and the first reports of the acquisition by SandRidge came mere weeks later, on February 1.
SandRidge was one of the first energy companies to begin a transition into oil and liquids ahead of the natural gas boom and resulting oversupply. Its early moves allowed it to acquire its current position in the Mississippian formation at an average of just $200 per acre; the current valuation is around $4,236 per acre, which makes this a stunning coup for SandRidge.To continue reading, click here.