SandRidge -2.6%, says MLP tax request held up at IRS

|About: SandRidge Energy, Inc. (SD)|By:, SA News Editor

SandRidge Energy (SD -2.6%) says its letter asking the IRS whether its water disposal business qualifies as tax-free for inclusion in a possible MLP has run into delays at the agency that could go on for months.

The IRS appears to be more closely reviewing the scope of assets that can qualify as tax-free for MLPs and pausing the issuance of private letter rulings that companies normally ask for when setting up the structures.

SD is exploring ways, including forming an MLP, to unlock the value of its fracking water disposal business it values at ~$1B.