SandRidge Energy Inc. (NYSE:SD) Turns The Corner?


Dallas, Texas 01/01/2014 (FINANCIALSTRENDS) – When James Bennett assumed charge as Chief Executive Officer of SandRidge Energy Inc. (NYSE:SD) after the ouster of founding member and Chief Executive Officer Tom Ward in June 2013, expectations were predictable. Many assumed the company would sell out, as Ward’s severance settlement was to the tune of $90 million. He also sold over10 million shares he owned in July, lowering his stake in the company to 2.7% from the earlier 40%.

SandRidge Energy, Inc. (NYSE:SD) had for a long time struggled with overwhelming focus on management earnings than growth. This factor was emphasized further; with the six-months run-in that Bennett has had with SD for some six months now. James Bennett who began with high focus on the financial aspects such as returns, costs and allocation of capital, it appears has delivered his promises.

In August, SandRidge Energy, Inc. (NYSE:SD) focussed on furthering the output from its Mississippi Lime mine. This well has been one of critical growth sectors for SD nad has seen 20% increase on a quarterly basis, while the annual comparison is over 88%. August was a benchmark of sorts for the company as it completed new wells- six in number, clocking over 1,000 barrels of extraction per days, in the first month of production.

The positive production in Mississippi Lime is indicative and forecast of 4% is currently estimated. By the last week of September SandRidge Energy, Inc. (NYSE:SD) was going full-steam with expenses of wells dropping to 5%, while production reached 7.8 million and LOE costs dropped by 20%. Then the announcement of the third quarter results, proved to be the final shove, for the turnaround, as the company posted EPS of $0.07 over and above estimates by $0.04. The company in third quarter had 22 rigs, drilled 53 wells and posted 363 boe/day.

SandRidge in the second week of December received analyst Cooperman’s backing, fixing price target of $10. Perhaps, SD has turned the corner?