Oil prices are rising and the author of the newsletter, builds a good case thar Sand Ridge Energy is well-placed as a turnaround with its debt erased in the bankruptcy and the company is emerging with nearly half a billion dollars in liquidity ....
"On another note today, we talked a few weeks ago about the opportunities in post–bankruptcy oil and gas stocks.
I walked through the backstory on Sand Ridge Energy and its emergence from bankruptcy on October 5.
After some initial selling (likely by the former debt holders), the stock has climbed almost daily—up almost 20% from when we discussed it on October 11.
Remember, this was a $3 billion company three years ago when oil was closer to $100. That was with a big debt burden on its balance sheet.
Now oil looks like it might be on its way back to the mid–$60s, if not higher, and SandRidge is a virtually debt–free, post bankruptcy company with half a billion dollars in liquidity.
Even at half the valuation of 2013, the new SandRidge is a triple from current levels.
Add to that, if Trump were to win, these post–bankruptcy commodity companies would have huge run–ups. (Not a selling point)
SandRidge Energy, Inc. is an oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma with its principal focus on developing high-return, growth-oriented projects in the U.S. Mid-Continent and Niobrara Shale.
Source: Newsletter: Bryan Rich
Forbes Billionaire's | Pro Perspectives + Forbes Billionaire's Portfolio
"...we talked a few weeks ago about the opportunities in post–bankruptcy oil and gas stocks.
I walked through the backstory on SandRidge Energy and its emergence from bankruptcy on October 5.
After some initial selling (likely by the former debt holders), the stock has climbed almost daily—up almost 20% from when we discussed it on October 11.
Remember, this was a $3 billion company three years ago when oil was closer to $100. That was with a big debt burden on its balance sheet.
Now oil looks like it might be on its way back to the mid–$60s, if not higher, and Sand Ridge is a virtually debt–free, post bankruptcy company with half a billion dollars in liquidity.
Even at half the valuation of 2013, the new SandRidge is a triple from current levels. Add to that, if Trump were to win, these post–bankruptcy commodity companies would have huge run–ups."
Click here to get started and get your portfolio in line with our Forbes Billionaire's Portfolio.
***************************************************************
"On another note today, we talked a few weeks ago about the opportunities in post–bankruptcy oil and gas stocks.
I walked through the backstory on Sand Ridge Energy and its emergence from bankruptcy on October 5.
After some initial selling (likely by the former debt holders), the stock has climbed almost daily—up almost 20% from when we discussed it on October 11.
Remember, this was a $3 billion company three years ago when oil was closer to $100. That was with a big debt burden on its balance sheet.
Now oil looks like it might be on its way back to the mid–$60s, if not higher, and SandRidge is a virtually debt–free, post bankruptcy company with half a billion dollars in liquidity.
Even at half the valuation of 2013, the new SandRidge is a triple from current levels.
Add to that, if Trump were to win, these post–bankruptcy commodity companies would have huge run–ups. (Not a selling point)
SandRidge Energy, Inc. is a petroleum and natural gas exploration company headquartered in Oklahoma City, United States. Wikipedia
CEO: James D. Bennett (Jun 2013–)
Founded: 2006
Revenue: 625 million USD (YTD 2015)
SandRidge Energy, Inc. is an oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma with its principal focus on developing high-return, growth-oriented projects in the U.S. Mid-Continent and Niobrara Shale.
Source: Newsletter: Bryan Rich
Forbes Billionaire's | Pro Perspectives + Forbes Billionaire's Portfolio
"...we talked a few weeks ago about the opportunities in post–bankruptcy oil and gas stocks.
I walked through the backstory on SandRidge Energy and its emergence from bankruptcy on October 5.
After some initial selling (likely by the former debt holders), the stock has climbed almost daily—up almost 20% from when we discussed it on October 11.
Remember, this was a $3 billion company three years ago when oil was closer to $100. That was with a big debt burden on its balance sheet.
Now oil looks like it might be on its way back to the mid–$60s, if not higher, and Sand Ridge is a virtually debt–free, post bankruptcy company with half a billion dollars in liquidity.
Even at half the valuation of 2013, the new SandRidge is a triple from current levels. Add to that, if Trump were to win, these post–bankruptcy commodity companies would have huge run–ups."
Click here to get started and get your portfolio in line with our Forbes Billionaire's Portfolio.
***************************************************************
News Release
SandRidge Energy Emerges from Reorganization with Approximately $525 Million of Liquidity
10/04/2016
Relisted on New York Stock Exchange and Resumed Trading Under Ticker “SD”
OKLAHOMA CITY
, Oct. 4, 2016 /PRNewswire/ --SandRidge Energy, Inc. ("SandRidge" or the "Company") (NYSE: SD)
today announced it has emerged from Chapter 11, having satisfied all
the necessary provisions of its Plan of Reorganization (the "Plan").
SandRidge received approval to relist on the New York Stock Exchange in
conjunction with its emergence and resumed trading of newly issued
common stock on October 4, 2016, under the ticker symbol "SD".
Combining its unrestricted
cash balance with the availability under its first lien credit facility
following emergence, SandRidge exits its restructuring with
approximately $525 million in total liquidity.
New Capital Structure Summary
SandRidge's new capital structure consists of a $425 million first lien revolving credit facility ("RBL") (maturing in 2020) and approximately $282 million
in mandatorily convertible notes, bearing no interest and converting at
any time at the option of the holders or mandatorily at the earlier of
certain events or four years from the effective date of the Plan. As
previously disclosed,
SandRidge's pre-petition second lien secured and
general unsecured claim holders receive 100% of the newly issued common
equity in the reorganized company. A summary of the Company's new
capital structure is presented below:
Unrestricted Cash
No comments:
Post a Comment