UPDATE: KeyBanc Downgrades SandRidge Energy to Hold Following Permian Asset Sale
KeyBanc lowered its rating on SandRidge Energy (NYSE: SD) from Buy to Hold.
KeyBanc said, "In a general sense, we view the move to sell an oily conventional asset into a very receptive marketplace as a savvy and opportunistic move, especially in cases in which capital can be deployed to higher return horizontal resource plays with better EURs and a large inventory of drilling locations with the ability to prove-up oily reserves. In this instance, however, we do not see SD as being in such a position, as the ultimate returns and oil/liquids mix of the Mississippian remains an open question and generally is inferior to Permian returns."
SandRidge Energy closed at $6.48 on Wednesday.
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Tags: KeyBanc Capital Markets