SandRidge Energy (NYSE:SD) Raising $250 Million on IPO of Assets in Mississippian

SandRidge Energy (NYSE:SD) announced they're going to offer a part of its assets in Mississippian to raise about $250 million through an IPO via a trust they just made.

UBS noted, "SD plans to raise $250 million through an IPO of a portion of its Mississippian assets through a newly formed trust ("SDT"). SD is conveying to SDT: 1) a 90% royalty interest on PDPs (6.9 MMBoe reserve) and 2) a 50% royalty interest on PUDs (12.4 MMBoe reserve) on -42,600 net acres. SD will own 50.6% of SDT, (25.6% subordinated), with public unitholders owning 49.4%. S.D will commit to drill on 123 wells on the acreage by Dec 2014 (75% working interest)."

UBS maintains a "Neutral" on SandRidge Energy, which was trading at $7.83, up $0.29, or 3.85 percent. UBS boosted their price target on them from $6.05 to $8.