In this video, Joel South highlights three reasons to worry about SandRidge Energy.

  • Numerous shifts in its business strategy that later forced it to sell assets to pay off debt. If production from its Mississippian Lime play doesn't produce needed revenues, SandRidge may need to sell more assets. 
  • Speaking of the Mississippian Lime, it's had more natural gas than originally expected, and even though natural gas prices have come off their lows, the real revenue drivers are oil and liquids, and these may not deliver as needed.
  • CEO Tom Ward is in the crosshairs of the board and activist shareholders. Will Ward go? If so, how expensive will his departure be?

Check out the video for more details.

Joel South owns shares of SandRidge Energy. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.