UPDATE: Stifel Nicolaus Downgrades SandRidge Energy to Hold on Lower Asset Upside

Stifel Nicolaus downgraded SandRidge Energy

from Buy to Hold and removed the price target of $8.50. Stifel Nicolaus commented, "We are downgrading SD from a Buy to a Hold following the company's updated EURs and oil cuts for its Miss Lime type curve, which meaningfully lowers the potential upside asset value for the name – which was the key reason for our Buy rating. SD was always a name with higher financial risk (meaningful leverage and outspending of CF), but the potential upside from its Miss Lime play made the name attractive. … [T]he extent of the downward revisions to the recoverable oil reserve (152 mbbl/well to 107 mbbl/well) and EURs (433 to 369 mboe), along with updated YE reserves, causes our risked NAV to decrease materially from $18 to $8.86/sh." SandRidge Energy closed at $5.70 on Thursday.