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SandRidge Energy, Inc. (SD)

Company Dividend Discount ModelIndustry: Oil & Gas Exploration & ProductionSector: Energy

Valuation Snapshot

Stable Growth$12.67 - $18.24$15.38
Multi-Stage$20.42 - $22.44$21.41
Blended Fair Value$18.40
Current Price$11.28
Upside63.09%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%1.960.210.000.000.000.000.000.000.100.00
YoY Growth--837.60%0.00%0.00%0.00%0.00%0.00%0.00%-100.00%0.00%0.00%
Dividend Yield--17.14%1.43%0.00%0.00%0.00%0.00%0.00%0.00%0.52%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)66.14
(-) Cash Dividends Paid (M)16.13
(=) Cash Retained (M)50.02
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13.238.274.96
Cash Retained (M)50.0250.0250.02
(-) Cash Required (M)-13.23-8.27-4.96
(=) Excess Retained (M)36.7941.7545.05
(/) Shares Outstanding (M)36.9536.9536.95
(=) Excess Retained per Share1.001.131.22
LTM Dividend per Share0.440.440.44
(+) Excess Retained per Share1.001.131.22
(=) Adjusted Dividend1.431.571.66
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$12.67$15.38$18.24
Upside / Downside12.29%36.38%61.67%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)66.1465.4864.8364.1863.5462.9064.79
Payout Ratio24.38%37.51%50.63%63.75%76.88%90.00%92.50%
Projected Dividends (M)16.1324.5632.8240.9248.8456.6159.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)22.2922.5222.74
Year 2 PV (M)27.0327.5828.15
Year 3 PV (M)30.5831.5332.49
Year 4 PV (M)33.1334.5035.92
Year 5 PV (M)34.8436.6638.55
PV of Terminal Value (M)606.69638.28671.17
Equity Value (M)754.56791.06829.01
Shares Outstanding (M)36.9536.9536.95
Fair Value$20.42$21.41$22.44
Upside / Downside81.05%89.81%98.91%

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