NEW YORK (TheStreet) -- Shares of SandRidge Energy (SD) were falling 6.1% to $1.53 on heavy trading Friday after the oil company disclosed that it is the target of an antitrust grand jury investigation.
In a 10-Q filing SandRidge said that it received notification that it was notified on April 7, 2015 that it is the target of the antitrust grand jury investigation in the Western District of Oklahoma. The company said transactions from 2012 and prior years are subject to the government's inquiry.
SandRidge said it is responding to the government's requests regarding the investigation, and that it is unable to predict the outcome of the investigation.
About 15.7 million shares of SandRidge Energy were traded by 10:32 a.m. Friday, above the company's average trading volume of about 14.5 million shares a day.
Insight from TheStreet's Research Team:
SandRidge Energy is a part of David Peltier's Stocks Under $10 Portfolio. Here is what Dave had to say about the stock in a recent alert:
SandRidge Energy shares were trading about 5% lower at midday, after management announced mixed first-quarter results late Thursday. This Alert is an update on the company, and we're not recommending any trades for the model portfolio.
SandRidge had break-even net income in the quarter, which was a penny ahead of expectations. On the other hand, revenue fell by 51% from a year ago, to $215.3 million, and short of consensus analyst estimates.
Core production increased by 36% in the period, even though management continues to cut costs. SandRidge reduced its rig count by 80% in the quarter and will reduce quarterly capital spending to $100 million by the fourth quarter. The company has also hedged the remainder of its expected production for 2015 and has sufficient near-term liquidity, with no debt maturities coming due until the end of the decade.
We maintain our Two rating on the stock, which recently changed hands around $1.70. We believe that SandRidge can trade back up through $2 in the coming months.