SandRidge Energy Shows Strong Capital Efficiency Against Market Rivalry
SandRidge Energy, Inc. (NYSE:SD), a U.S. oil and natural gas company, dedicates itself to hydrocarbon exploration and production, concentrating on the Mid-Continent region. It competes against corporations like Range Resources and Chesapeake Energy.
SandRidge boasts a Return on Invested Capital (ROIC) of 12.86%, surpassing its Weighted Average Cost of Capital (WACC) of 8.18%. This outcome delivers a ROIC to WACC ratio of 1.57, illustrating substantial capital efficiency, with returns exceeding financing costs.
In comparison, Range Resources exhibits a ROIC of 10.96% alongside a WACC of 6.56%, leading to a favorable ROIC to WACC ratio of 1.67, the highest in its class. This efficiency indicates superb capital management strategies.
Meanwhile, Chesapeake Energy falls behind with a ROIC of 1.08% against a WACC of 5.74%, suggesting bare minimum returns. Southwestern Energy even faces challenges with a negative ROIC of -6.16%, revealing substantial inefficiencies in capital usage.