UPDATE: Canaccord Genuity Downgrades SandRidge Energy (SD) to Sell; Severe Liquidity Challenges

March 1, 2012 7:31 AM EST
SD Hot Sheet
Rating Summary:
    8 Buy, 9 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 11 | New: 36
(Updated - March 1, 2012 9:35 AM EST)

Canaccord Genuity downgraded SandRidge Energy (NYSE: SD) from Hold to Sell, price target lowered from $7 to $6.

Analyst, John Gerdes, said, " Even with rosy sale assumptions, SandRidge severely stressing capitalization The Mississippian royalty trust should generate $700 million, the sale of ~250,000 net Mississippian acres may garner $700 million in cash up front and the company likely sells down its remaining royalty/trust units for $200 million. Assuming the above, SandRidge would be $1.9 billion drawn on its revolver at year-end ’14. Revolver capacity should increase from $1.0 to $1.5 billion by year-end ’14 given cash flow growth."

For an analyst ratings summary and ratings history on SandRidge Energy click here. For more ratings news on SandRidge Energy click here.

Shares of SandRidge Energy closed at $8.67 yesterday, with a 52 week range of $4.55-$13.34.


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