- SandRidge has done very well to reduce lease operating expenses to below $4 per BOE in Q3 2020 compared to over $7 per BOE in 2019.
- This has enhanced its value as it tries to harvest its assets.
- It sold its North Park Basin assets for $47 million, a decent price that is estimated at around 3.0x 2021 EBITDAX.
- SandRidge may be able to generate around $100 million in positive cash flow between Q3 2020 and the end of 2023.
- That will give it around its current share price in net cash. Further value improvement will depend on what it does with that money.
For further details see:
SandRidge Energy: Strong Cost Reduction Efforts And A Decent Price For North Park Basin Assets