Why SandRidge Energy's Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of SandRidge Energy (NYSE: SD  ) fell as much as 11% today after the company released fourth-quarter earnings.

So what: Revenue jumped from $373.8 million a year ago, to $1.3 billion, as oil and gas prices and sales jumped, but that didn't help the bottom line. The company reported a loss of $302 million, or $0.63 per share, although they'd like you to look at a $0.06 adjusted profit.  

Now what: It was widely considered a terrible quarter, and analysts at Stifel downgraded the stock from buy to hold. I just don't see how such a massive loss is good, even if the adjusted numbers were ahead of estimates. I'd be a seller today, and wouldn't buy in until we see some real bottom-line profits.

A deep dive into SandRidge

Investors were startled after SandRidge plummeted when natural gas prices reached 10-year lows; but with the company halfway through its ambitious three-year plan to profitability, the future looks bright. If you are unsure about the future of this emerging oil and gas junior, and are looking to find out more about its strengths and weaknesses, you should view this brand new premium report detailing SandRidge's game plan, and what to expect from the company going forward. To get started -- click here!


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