UPDATE: Global Hunter Securities Downgrades SandRidge Energy to Neutral on Production Declines
Global Hunter Securities reduced its rating on SandRidge Energy (NYSE: SD) from Buy to Neutral and lowered its price target from $9 to $5.
Global Hunter Securities said, "Not only did management announce plans to sell the Central Basin Platform assets, but it also informed the market that oil production from the company's other crown jewel asset, the Mississippian Lime, was not what they thought it would be. Specifically, what once was thought to be at least a 45% oil resource from the Mississippian Lime now looks more like 40% oil. While Mississippian downspacing typically would be a positive development, in this instance it appears to be more like marginalizing an even larger asset."
SandRidge Energy closed at $5.51 on Friday.
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