SandRidge Energy (NYSE: SD) was the recipient of a ratings changes during the seven days:
- SandRidge Energy had its “sector perform” rating reaffirmed by analysts at RBC Capital. They now have a $7.00 price target on the stock.
- SandRidge Energy was downgraded by analysts at Tudor Pickering from a “hold” rating to a “sell” rating.
- SandRidge Energy was downgraded by analysts at Stifel Nicolaus from a “buy” rating to a “hold” rating. They now have a $8.50 price target on the stock. They wrote, “We are downgrading SD from a Buy to a Hold following the company’s updated EURs and oil cuts for its Miss Lime type curve, which meaningfully lowers the potential upside asset value for the name – which was the key reason for our Buy rating. SD was always a name with higher financial risk (meaningful leverage and outspending of CF), but the potential upside from its Miss Lime play made the name attractive. … [T]he extent of the downward revisions to the recoverable oil reserve (152 mbbl/well to 107 mbbl/well) and EURs (433 to 369 mboe), along with updated YE reserves, causes our risked NAV to decrease materially from $18 to $8.86/sh.”
- SandRidge Energy had its price target lowered by analysts at Deutsche Bank from $5.00 to $4.00. They now have a “hold” rating on the stock. They wrote, “Another quarter, another downward revision. In the midst of all of the sound and fury of an activist campaign centered around concerns with management, the biggest problem at SD has been the steady deterioration of the Mississippian. SD revised down its type curve in the play, reducing per well oil reserves by 30% and total reserves by 22% since 3Q. As reserves have eroded, so has the market’s bull case on the stock (cheap on NAV), with our NAV suffering a further revision down, and CHK’s recent deal in the play adding further headwinds to the ability of SD to accretively sell or JV additional acreage in the future.”
- SandRidge Energy had its price target lowered by analysts at Wunderlich from $7.00 to $5.00. They now have a “hold” rating on the stock.
- SandRidge Energy had its price target lowered by analysts at Canaccord Genuity from $3.00 to $2.00. They now have a “sell” rating on the stock. They wrote, “We lowered our target price $1 to $2 per share due to a higher gas composition (production/capital allocation) in the Mississippian play. Specifically, we increased the gas percentage of Miss wells ~5% to ~70%. Assuming a $40K/Boepd production rate multiple for the Gulf of Mexico business (~$1 billion) and ~5K/Mmcfepd production rate multiple for the company’s gas assets outside the Mississippian (~$0.65 billion) implies a Mississippian leasehold value of ~$1,500 per acre using year-end ’13 enterprise value calculated with a $2 per share equity value.”
- SandRidge Energy had its price target lowered by analysts at Robert W. Baird from $8.00 to $6.00. They now have a “neutral” rating on the stock.
- SandRidge Energy had its price target lowered by analysts at Susquehanna from $12.00 to $10.00. They now have a “positive” rating on the stock.
SandRidge Energy opened at 5.48 on Wednesday. SandRidge Energy has a 1-year low of $4.81 and a 1-year high of $8.57. The stock’s 50-day moving average is currently $6.27. The company has a market cap of $2.687 billion and a price-to-earnings ratio of 30.21.
SandRidge Energy, Inc. (SandRidge) is an independent oil and natural gas company. It is engaged in development and production activities related to the exploitation of its holdings in West Texas and the Mid-Continent area of Oklahoma and Kansas.
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