SandRidge Sells Value Destroying Assets
About two years after announcing the surprising purchase of Gulf of Mexico producer Dynamic Offshore Resources, LLC, SandRidge (SD) is announcing the sell of those related assets at a fraction of the original cost. The good news is that though the deal was value destructing, the company did pay a large portion of the original deal for stock at higher prices.
The deal highlights the importance of focusing on core competency and questions why the new management team is willing to dump the assets at such low prices. Reading the recent presentations from the company it is apparent that the new management team wasn't exploring the development of the Gulf of Mexico assets. Oddly, the team appeared willing to dump these assets without even attempting to spruce them up.
Read the full article at Seeking Alpha.
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