SandRidge Energy (NYSE:SD) has initiated an aggressive drilling campaign to generate growth in oil production and reserves, but the shares will be under pressure on the need for SandRidge to raise more capital.
Global Hunter says, "SandRidge has undergone a radical transformation into an oil-centric company and is launching an aggressive drilling campaign to fuel growth in oil production and reserves. However, the impact of recent financings, and the need for external capital from divestments or additional financing temper our optimism for the shares...Our estimated 2011 cash flow per share of $1.16 per share is also ahead of the recent $1.00 per share
consensus estimate."
Global Hunter Securities initiateds coverage on SandRidge Energy (SD) with a "Reduce." Sandridge closed Friday at $7.27, up $0.11, or 1.54 percent. Global has a price targeton Sandridge of $6.50.
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