Analyst Actions: SandRidge Energy Ests Raised, PT Lowered at Credit Suisse; Shares Edge Higher
Credit Suisse analysts have raised their earnings estimates on SandRidge Energy Inc. ( SD ) while lowering the price target on its shares to $5.80 from $6.30.
"In many respects, SD's analyst meeting had a defensive feel, with management defending the economics of the play despite a second meaningful cut in its type curve, the flattish progression in its Mid-Continent PV-10, and well results in the core Kansas part of the play," said Credit Suisse. "Unfortunately, defense does not generally resonate in E&P given the perception that the rate of change in the Mississippian is moving in the wrong direction."
Credit Suisse revised its 2013 and 2014 EPS estimates to ($0.12)/($0.15) from ($0.23)/($0.20) to incorporate lower cost guidance and lower non-controlling interests. It also raised its 2015 EPS estimates to a loss of $0.35 from a loss of $0.44.
The firm also lowered its NAV estimate to $5.80/share from $9/share to reflect the reduction in the company's type curve and higher than previously forecasted obligations related to the company's royalty trusts and P&A.
Shares of SD are down 0.4% to $5.80, amid a 52-week range of $4.81 - $8.57.