NEW YORK (TheStreet) -- Shares of SandRidge Energy (SD) were gaining 6.5% to $2.04 Tuesday after the oil and gas company announced the mandatory conversion of $200 million of its 6% convertible perpetual preferred stock sold in 2009.
Each share of convertible preferred stock automatically converted to 9.211496 shares of common stock of SandRidge Energy on Dec. 21, 2014, as per the certificate of designation that governs the terms of the convertible preferred stock.
The dividends on the convertible preferred stock stopped accruing on Dec. 21.
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Oil prices were also rebounding Tuesday morning, which may have contributed to SandRidge's gains. WTI crude oil for February delivery were gaining 1.1% to $55.89 a barrel Tuesday morning, and Brent crude oil for February delivery was gaining 0.6% to $60.46 a barrel.
TheStreet Ratings team rates SANDRIDGE ENERGY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SANDRIDGE ENERGY INC (SD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."