Sandridge Energy Reverses Course After an Acquisition Blunder
It only took Sandridge Energy two years to realize that the assets it bought from Dynamic Offshore weren't exactly everything it was hoping those assets could be. So, the company has unloaded them on to a private company for $750 million. Unfortunately, they bought those assets for $1.2 billion two years ago. Just because the company offloaded these assets doesn't mean it was a bad idea. It gets it off the hook for some sizable asset retirement costs and gives the company some money to expand its drilling in its wheelhouse: the Mississippian Lime formation in Oklahoma and Texas.
Tune into the video below to find out how this deal seems awfully similar to some of the moves made by Chesapeake Energy , and what investors should watch for in Sandridge going forward.
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The article Sandridge Energy Reverses Course After an Acquisition Blunder originally appeared on Fool.com.Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow them on Twitter @TMFDuffy and @TylerCroweFool, respectively. 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 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.
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