Shares of SandRidge (NYSE:SD) 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.
Joel South owns shares of SandRidge Energy. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. 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 has a disclosure policy.
