JP Morgan Reiterates Neutral on SandRidge

JP Morgan maintains its Neutral rating on SandRidge as it weighs in on the Repsol JV's value. JP Morgan says, " SD did not detail any value allocation o Original Miss vs. Extension Miss acreage. In our DCF-based NAV model, using NYMEX futures prices, we derive a value of $6,580/acre for the Original Miss (pre Repsol JV). If we assume that SD sold the Old Miss acreage for this same value, it then sold the Original Miss for $748 MM and the Extension Miss for $252 MM (or $1,009/acre). This calculation would value 100% of the Extension Miss at $1 Bn, or around $2/share." SD closed at $8.21 per share on Thursday.