Sandridge stock soars first day!

[metro]

SandRidge stock soars on first day

By Don Mecoy
Business Writer

Shares of SandRidge Energy Inc. soared 23 percent Tuesday in their New York Stock Exchange debut.

The Oklahoma City energy company raised nearly $750 million on Monday through an initial public offering of 28.7 million shares at $26 each. Traders on Tuesday quickly pushed the price higher on heavy volume.

More than 20 million shares, represented by the ticker symbol "SD,” traded hands Tuesday, making it among the 25 most active issues.

Chief Financial Officer Dirk M. Van Doren said the stock was priced to benefit shareholders.

"Our No. 1 goal for the stock was we wanted investors to make money,” he said.

Underwriters and stock specialists working with SandRidge told insiders the stock issue was "dramatically oversubscribed,” meaning that demand likely would outstrip supply and push share prices up in the open market, Van Doren said.

"The reception was a little overwhelming,” he said. "It's nice to see, and we're sort of pleased that investors could make money Day One.”

Van Doren said, though, he wasn't necessarily surprised by the market's enthusiasm for SandRidge shares.

"Surprised? I think the word is pleased,” he said.

Tuesday's stock surge pushed the company's market capitalization beyond $4 billion, making it one of the most valuable publicly traded Oklahoma companies.

Bob Rader, senior vice president with Capital West Securities in Oklahoma City, said successful IPOs by local companies boost the city and state's economies.

"It was a great day for Oklahoma,” he said.

Among the investors who benefited from Tuesday's gains was the biggest shareholder, Chief Executive Officer Tom Ward. The 23 percent increase in the stock sent the value of Ward's shares above $1 billion.

Ward, co-founder of Chesapeake Energy Corp., stepped down from that company last year to pursue other interests. Within three months, Ward leveraged his considerable Chesapeake holdings to buy Riata Energy for $500 million. He then moved the company headquarters to Oklahoma City and renamed the business SandRidge.

Van Doren said a big day on Wall Street doesn't change the company's mission.

"We'll continue to try to keep costs down and find gas and oil,” he said.

[Midtowner]

I almost bought into that IPO.

I was in an energy buying mood... but after a little looking, I decided I'd put that money on Devon -- a much safer play as far as local energy stocks go.

[Oh GAWD the Smell!]

I almost bought into that IPO.

I was in an energy buying mood... but after a little looking, I decided I'd put that money on Devon -- a much safer play as far as local energy stocks go.

How does one go about getting "in" on IPO's anyway? Last time I called my money guy and asked him about it, he just laughed and said "I don't think so".

[solitude]

Investing a hundred grand on Monday would have netted you almost $20,000.00 overnight. I was looking for a quarter, maybe fifty cent gain - this was huge! The response was much better than expected. Devon vs Sandridge? No comparison as far as how well these two will be performing over the next year. I'd take Sandridge in an instant. Quicker than an instant. Of course, this isn't meant as investment advice and all the other usual disclaimers. On the other hand, are you willing to place a bet, Midtowner? A little extra cash in my pocket would never hurt.

[Midtowner]

lol.. Devon has much more in the way of proven reserves. Also, Devon has grown tremendously over the past 5 years. I'm not a "day trader" by any means. I generally put things in and leave them alone for awhile. I'll bet Sandridge does quite well in speculative trading over the next few months... but over the next year plus? I think Devon wins big.