Market Overview

SandRidge Energy Rallies on Asset Sale

Share:
SandRidge Energy Rallies on Asset Sale
Related USO
Are The Markets 'Melting Up'?
Asian, European Stocks Gain Ground As Brent Crude Tops The $50 Mark
Jim Cramer Has A Question - I Have The Answer (On Dollar/Market Congruence) (Seeking Alpha)
Related UNG
Why Natural Gas Investors And Renewable Energy Investors Are Hoping For The Same Thing
All You Need To Know From David Einhorn's Q1 Letter To Greenlight Investors
Are Some LNG Shipping Companies Ignoring Oversupply Concerns? (Seeking Alpha)

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.

Posted-In: News Commodities Asset Sales Intraday Update Markets Movers Trading Ideas Best of Benzinga

 

Related Articles (CHK + SD)

View Comments and Join the Discussion!