NEW YORK (TheStreet) -- Shares of Sandridge Energy Inc. (SD) are down 1.94% to 6.32 this afternoon after the company's letter asking the IRS whether its water disposal business qualifies as tax-free for inclusion in a possible master limited partnership (MLP) has run into an agency delays, Reuters reports.
Duane Grubert, SandRidge's head of investor relations, estimates that the delay could go on for months.
SandRidge is exploring ways, including forming an MLP, to unlock the value of its fracking water disposal business it values at about $1 billion.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 106.6% when compared to the same quarter one year prior, rising from -$287.90 million to $19.08 million.
- Powered by its strong earnings growth of 101.58% and other important driving factors, this stock has surged by 31.38% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- SANDRIDGE ENERGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SANDRIDGE ENERGY INC reported poor results of -$1.27 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus -$1.27).
- Currently the debt-to-equity ratio of 1.75 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, SD's quick ratio is somewhat strong at 1.25, demonstrating the ability to handle short-term liquidity needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, SANDRIDGE ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: SD Ratings Report
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