Because it trades at a discount to book. And any company that trades at a discount is a possible takeover target. http://www.fool.com/investing/general/2014/07/18/is-sandridge-energy-inc-the-next-6-billion-energy.aspx Cooperman also notes that oil below $90 for a sustained period could produce a default on debt... Bankruptcy. It's the debt service that prevents SD from showing positive earnings.