|SandRidge goes offshore: one more surprise from a company full of surprises.|
The privately held offshore company it acquired -- Dynamic Offshore Resources --- had filed to go public in 2011, backed by the Carlyle Group. Capital contributions to Dynamic from Carlyle and its partner Riverstone Holdings equaled roughly $200 million in the three years between 2008 and 2010, according published reports at the time of the S-1 filing. Seems like the real cheap deal went, as usual, to the private equity players, turning a few hundred million into close to $1.3 billion payday. Why didn't the company end up waiting to go public after it filed in late 2011? Because SandRidge ended up paying just under the targeted IPO value. So why take the risk -- during the period of time it takes to dot all the "i's" and cross all the "t's" required of an IPO filing -- of a potential fall in crude oil prices caused by a global economic slowdown, which could dampen enthusiasm for the offering? As far as SandRidge's take that it was an offer the company couldn't refuse, analysts say SandRidge paid a value that is equal to recent deals in the Gulf of Mexico. That means it wasn't cheap, but simply in line with peer comps.