NEW YORK (TheStreet) -- Shares of SandRidge Energy Inc. are higher by 2.14% to $1.91 in early afternoon trading on Friday, as the rally in oil prices sends some energy stocks soaring today. Crude oil (WTI) is rising by 1.50% to $51.55 per barrel and Brent crude is climbing by 1.70% to $57.53 per barrel this afternoon, according to the index provided by CNBC.com. SandRidge Energy is an Oklahoma City, OK-based oil and natural gas company that focuses on exploring and production activities in the mid-continent region of the U.S. This afternoon oil-field services firm Baker Hughes released its weekly rig count data, which showed that the rig count fell by 40, its biggest drop in a month. Oil prices are up today on geopolitical concerns including unrest in the Middle East and the potential for a final deal regarding Iran's nuclear program, the Wall Street Journal reports. Concerns about Iran increasing its oil exports, adding to the global oversupply, have mounted since the country began talks to lift sanctions on its nuclear program. "The latest agreement with Iran does not open the floodgates for a significant return of Iranian oil on the market as many had feared," Harry Tchilinguirian the head of commodity markets strategy and oil strategy at BNP Paribas told Reuters. Separately, TheStreet Ratings team rates SANDRIDGE ENERGY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation: "We rate SANDRIDGE ENERGY INC (SD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, weak operating cash flow and generally disappointing historical performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: Currently the debt-to-equity ratio of 1.65 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, SD has a quick ratio of 0.65, this demonstrates the lack of ability of the company to cover short-term liquidity needs. Net operating cash flow has decreased to $225.43 million or 17.61% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, SANDRIDGE ENERGY INC has marginally lower results. SD's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 71.20%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, SANDRIDGE ENERGY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500. SANDRIDGE ENERGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SANDRIDGE ENERGY INC turned its bottom line around by earning $0.34 versus -$1.28 in the prior year. For the next year, the market is expecting a contraction of 185.3% in earnings (-$0.29 versus $0.34). You can view the full analysis from the report here: SD Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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