Sandridge Energy Inc. (NYSE: SD) is getting shelled today. The company’s new announcement that it was going to buy Dyanmic Offfshore for $1.28 billion has created some waves. Dynamic operates in the Gulf of Mexico and the move is believed to be an expensive entrance. After the buyout was announced, at least two downgrades have been seen so far today: A firm called Tudor Pickering cut the rating to Hold from Buy, and another energy firm called Howard Weil downgraded the Sandridge rating to Market Perform from a prior Market Outperform.
Citigroup may have hit an unlucky timing on its call last week. On January 27, Citi initiated coverage with a Buy rating.
Sandridge Energy has a market cap of $2.8 billion after the move and shares are down 9.9% at $7.07 on more than 28 million shares in less than an hour of formal trading. The average volume is usually about 11.7 million shares and the 52-week trading range is $4.55 to $13.34.
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