SandRidge is up nearly 12% after raising its oil production guidance for the first time in six quarters.
It plans to produce 23.3 million barrels in 2011, up from the original 21.6 million.
The raised outlook came out with its fourth-quarter earnings release yesterday which reported a slightly narrower loss than analysts had expected.
It posted a net loss of $208.02 million or $0.53 per share, smaller than the $434.24 million in the same quarter in 2009.
SandRidge also increased its outlook for capital expenditures by 18% to $1.3 billion. The increase is attributable to increased drilling and land acquisition, according to a UBS research note.
SandRidge also just sold 23,000 net acres in New Mexico to an unnamed buyer for $200 million. Proceeds will be used to pay off balances on the company’s revolver. UBS estimates an attractive transaction multiple of $4,782 per acre.
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