| IRS gives blessing to SandRidge for water disposal MLP -filing | |
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HOUSTON, June 1 (Reuters) - SandRidge Energy Inc said the Internal Revenue Service has determined that income from its well-water treatment and disposal business will qualify for inclusion in a master limited partnership (MLP), according to a regulatory filing on Monday. SandRidge, based in Oklahoma City, Oklahoma, in October filed documents with the U.S. and Securities Exchange Commission to register the partnership, called CEBA Midstream LP, for a potential public offering. SandRidge's request about the water disposal business had been snared for more than a year by the IRS' decision to "pause" the issuance of so-called private letter rulings on qualifying income for MLPs while the agency reviewed the process. The IRS lifted the "pause" in March. SandRidge said it received its letter on May 29, according to an SEC filing. The company, which drills for crude in the watery Mississippi Lime formation, has seen its liquidity sapped by the steep decline in oil prices. An MLP for its water-disposal unit is seen as one way to the unlock value of that business. MLPs are a structure favored by energy companies because they pay no income taxes, instead passing profits to investors who receive high yields. Because the partnerships pay no taxes, they have a lower cost of capital that provides an advantage. (Reporting by Anna Driver; Editing by Terry Wade and David Gregorio)
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SandRidge Energy
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CODE : SD |
ISIN : US80007P3073 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
SandRidge is a exploration company based in United states of america. SandRidge is listed in United States of America. Its market capitalisation is US$ 438.1 millions as of today (€ 393.8 millions). Its stock quote reached its lowest recent point on January 06, 2016 at US$ 0.15, and its highest recent level on September 18, 2024 at US$ 12.22. SandRidge has 35 850 000 shares outstanding. |