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What: Shares of oil and gas firm Sandridge Energy
So what: We're looking at multiple catalysts here: Sandridge's fourth-quarter loss was smaller than expected, the company raised its production outlook for the first time in nearly two years, and is even selling some underperforming properties in order to pay down about $200 million of debt.
Now what: A debt-reduction program is very much in order as a spree of land acquisitions has created a $3 billion debt load versus negligible cash reserves. But those opportunistic acquisitions are paying off in the form of vast expanses of low-cost development fields and a new focus on oil over natural gas exploration, which should serve the company well in coming years.
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Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.