SandRidge Energy
In a move to tap into more oil resources, SandRidge Energy (NYSE:SD) announced it will acquire its rival, Arena Resources (NYSE: ARD), for $1.6 billion, equaling the market cap of SandRidge at the time of this writing.
Natural gas prices are projected to remain low for a long time, and companies overweight in natural gas are scrambling to diversify to remain profitable and grow.
SandRidge has a strategy of searching for its oil and gas in a more conventional manner, holding back from entering into the higher-cost shale gas others are tapping into at this time.
As far as natural gas goes, this is a good strategy as the most profitable companies will be those able to contain their costs the best in a low-price environment.
SandRidge Energy
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