SandRidge Energy Inc. (NYSE:SD) – Reduction In Debt To Result In Better Profitability

Chris Brown - October 14, 2013

Boston, MA 10/14/2013 (wallstreetpr) – SandRidge Energy, Inc. is an oil & natural gas company engaged in the development and production activities of various oil & natural gas blocks. They have a presence in Permian Basin in west Texas and Gulf of Mexico. The Mississippian formation is the key focus for the company in the Mid-Continent area of northern Oklahoma and Kansas. The company has widened its business in 1.85 million acres of lease hold with more than 11,000 horizontal drilling locations.

SandRidge Energy,Inc has had an impressive growth of 25% in the last twelve months as the production has grown 20% compared to last quarter, and it has tremendous growth of 88% as compared to last year. There is also an appreciation in revenue of about 6% to $454 million in comparison of $430 million in 2012. The company declares a semi –annual dividend on its shares of 7%,  and there will be payment in cash to convertible perpetual preferred stock holders, which will motivate the investor to take an active part in the company. The immediate changes and improvements in the company have come in the favour of the company’s benefit. The change in management has resulted in more effective and cohesive leadership structure in the company.

Though the cost of the company had increased to $14.73 as compared to $13.77 per boe because of buying off shore properties, the debt of the company has reduced by a great extent as it will help by paying less interest on loans. The reduction in interest outgo will immediately boost the company profitability in the time to come.

In this case, the company stock has been given better than expected result to their investor even though it was targeted by activists, and the forecast helped the stock to raise by 2% to $5.89. It reported $34 million per share as compared to profit of $804 million or $1.46 per shares.

Chris Brown

About Me: I have a Phd in Economics Gender: Male Interests: Playing games like cricket, volleyball Favorite Music: hip hop, rock, jazz

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