Canaccord Genuity Maintains a 'Hold' on SandRidge Energy (SD); Permian Royalty Trust Brings Much-Needed Liquidity Though Value Impact Neutral
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Price: $14.36 +0.14%
Rating Summary:
2 Buy, 13 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 13 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity maintains a 'Hold' on SandRidge Energy (NYSE: SD) price target of $10.00
Canaccord analyst, John Gerdes, said, "SandRidge priced 30 million units of the Permian Basin Trust at $18/unit, modestly below the $19-$21/unit price implied in previous filings. The pricing equates to almost 12x ’11E EBITDA, which compares favorably to SD’s current ~10x EBITDA multiple. After incorporating ~$600 million of net proceeds into our model (assumes exercise of over-allotment), we project SandRidge exceeds its current revolver by ~$300 million at year-end ’12 given the current capital plan. Accordingly, we have dialled back our assumed late ’11 equity offering from $800 million to $300 million."
For more ratings news on SandRidge Energy click here and for the rating history of SandRidge Energy click here.
Shares of SandRidge Energy closed at $7.50 yesterday.
Canaccord analyst, John Gerdes, said, "SandRidge priced 30 million units of the Permian Basin Trust at $18/unit, modestly below the $19-$21/unit price implied in previous filings. The pricing equates to almost 12x ’11E EBITDA, which compares favorably to SD’s current ~10x EBITDA multiple. After incorporating ~$600 million of net proceeds into our model (assumes exercise of over-allotment), we project SandRidge exceeds its current revolver by ~$300 million at year-end ’12 given the current capital plan. Accordingly, we have dialled back our assumed late ’11 equity offering from $800 million to $300 million."
For more ratings news on SandRidge Energy click here and for the rating history of SandRidge Energy click here.
Shares of SandRidge Energy closed at $7.50 yesterday.
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