- Investor reaction to SandRidge Energy's (SD -1.7%) deal to sell its Gulf of Mexico assets for $750M, ending a much-criticized foray into offshore drilling, is decidedly negative; Morningstar's Mark Hanson thinks investors are worried about leverage, because the Gulf assets generated a fair amount of cash for SD.
- But TPG-Axon CEO Dinakar Singh is praising the sale, calling it a "perfect move" by SD; TPG-Axon was one of the funds agitating for change at SD last year, resulting in Tom Ward's ouster.
- CEO James Bennett says SD would use the proceeds from the sale to further develop its holdings in northern Oklahoma and western Kansas, where it is the biggest operator in the Mississippian play.
- Hanson says the deal should help SD because it makes sense for a company of its size to focus its money and personnel in one area; he also notes the move makes it easier to sell the company outright.
SandRidge slides on Gulf sale, but analysts say the deal makes sense
Jan 7 2014, 14:39 ET