Sandridge Energy Shares Popped: What You Need to Know
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 (NYS: SD) jumped as much as 10% in early trading after selling assets late yesterday.
So what: The company sold 363,636 net acres in the Mississippian basin to a joint venture funded by Repsol for $250 million and an additional $750 million drilling carry obligation. The venture is buying a 25% non-operated working interest in the Extension Mississippian play and a 16% non-operated working interest in the Original Mississippian play.
Now what: Shares began their jump late in trading yesterday and popped early in trading today, continuing the move. According to analysts, the price paid for the acreage was higher than they had anticipated, leading to the climb yesterday. I would hang on to the bump today on the hopes that this will fund the company through 2012 and be a long-term catalyst for the stock.
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