SandRidge Punished After Chesapeake Sells Assets

Shares of SandRidge (UNKNOWN: SD.DL  ) are down sharply today after Chesapeake Energy (NYSE: CHK  ) sold off its Mississippian assets for less than analysts had expected: $1.02 billion for 425 thousand acres, or $2,400 per acre. SandRidge is now largely levered to the Mississippian after selling off its Permian assets and concentrating in the Mississippian region. In this video, Motley Fool energy analyst Joel South tells investors why this deal may have spooked SandRidge investors a bit too far, why the company may now be oversold on this market reaction, and why now may be a good time to buy.

With fourth-quarter earnings being released later this week, and activist shareholder TPG-Axon trying to reshuffle SandRidge's board of directors, now would be a good time to learn more about the future of this emerging oil and gas junior. To find out more about the company's strengths and weaknesses, you should view this brand-new premium report detailing SandRidge's game plan, and find out what to expect from the company going forward. To get started -- click here!

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  • Report this Comment On February 25, 2013, at 1:16 PM, carolina1954 wrote:

    $1.02B/425,000 acres = $2,400/acre

  • Report this Comment On February 25, 2013, at 1:37 PM, TMFTheWhisperer wrote:

    Yes, you are correct... it should read $2,400/ acre. The article was corrected from $4,200 acre to the correct amount ($2,400). Thanks for pointing this out!

  • Report this Comment On February 25, 2013, at 4:22 PM, russfischer1013 wrote:

    This is awful. The video said that CHK sold half of its Mississippi Lime assets. The sold 425,000 acres of a total holding of 2.1 millioon acres. That is about 20% of the holding. And the $2400 vs. $4200.

    do you still think I shoulld buy some SD on your say so?

    Is anyone at TMF watching this stuff.

  • Report this Comment On March 01, 2013, at 3:51 PM, joenaiz wrote:

    Pretty big mistake. What are the acres owned by Sandridge in the Mississippian?? So we can at least check the overall math by multiplying the total acres by the $2400 instead of the mistaken $4200. If he at least got the overall value of the land correct, it wouldn't be as big of a mistake.

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9/30/2016 4:03 PM
CHK $6.27 Up +0.15 +2.45%
Chesapeake Energy CAPS Rating: ***
SD.DL $0.00 Down +0.00 +0.00%
SandRidge Energy CAPS Rating: ***