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SandRidge Energy, Inc. (NYSE:SD) Outperforms in ROIC to WACC Ratio

  • SandRidge Energy, Inc. (NYSE:SD) boasts a Return on Invested Capital (ROIC) of 11.19% and a Weighted Average Cost of Capital (WACC) of 6.02%, indicating efficient value creation for shareholders.
  • Compared to its competitors, SandRidge Energy has a higher ROIC to WACC ratio of 1.86, showcasing its superior performance in generating returns above its cost of capital.
  • Competitors like Chesapeake Energy Corporation and Southwestern Energy Company have lower or negative ROIC to WACC ratios, highlighting SandRidge Energy's competitive advantage in the energy sector.

SandRidge Energy, Inc., an oil and natural gas company based in the United States, focuses on the exploration and production of hydrocarbons, primarily in the Mid-Continent region. It competes with other energy firms like Range Resources Corporation, Chesapeake Energy Corporation, Southwestern Energy Company, SM Energy Company, and Northern Oil and Gas, Inc.

SandRidge Energy's Return on Invested Capital (ROIC) is 11.19%, while its Weighted Average Cost of Capital (WACC) is 6.02%. This results in a ROIC to WACC ratio of 1.86, indicating that the company is generating returns significantly above its cost of capital. This is a positive indicator of value creation for shareholders.

In comparison, Range Resources Corporation has a ROIC of 9.89% and a WACC of 5.90%, resulting in a ROIC to WACC ratio of 1.68. While this is also above its cost of capital, it is not as high as SandRidge Energy's ratio, suggesting that SandRidge is more efficient in generating returns.

Chesapeake Energy Corporation, with a ROIC of 3.89% and a WACC of 5.74%, has a ROIC to WACC ratio of 0.68. This indicates that it is not generating returns above its cost of capital, unlike SandRidge Energy. Similarly, Southwestern Energy Company and SM Energy Company have negative ROIC to WACC ratios, further highlighting SandRidge's superior performance.

Northern Oil and Gas, Inc. has a ROIC of 6.32% and a WACC of 7.39%, resulting in a ROIC to WACC ratio of 0.86. This is slightly better than Chesapeake but still below SandRidge Energy's performance. Overall, SandRidge Energy's ability to generate returns above its cost of capital makes it a potentially attractive investment opportunity.