SandRidge Energy Rallies on Asset Sale
Shares of SandRidge Energy (NYSE: SD) traded sharply higher in Wednesday's after-hours session following an announcement from that company that it would sell its Permian Basin properties for $2.6 billion.
The sale should not be too surprising, given that the company said it was considering selling the assets back in early November. Interestingly, SandRidge's entire market cap is only about $3 billion.
SandRidge has been a terrible performer in 2012; year-to-date, shares are down over 20 percent. With its heavy exposure to natural gas, it has faced similar problems to Chesapeake Energy (NYSE: CHK), which has had similarly poor results this year.
Although natural gases have rebounded from the record low seen in the spring, the commodity still remains relatively cheap on a historic basis.
SandRidge's move to shed assets might allow it to shift its focus more to petroleum, which could more profitable in the longer term.
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