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SD - SandRidge Energy


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So is TPG buying out TW? If yes, this would seem to indicate TPG has confidence going forward........

 

cheers

Zorro

 

Well TW had 13.55 mn shares midway through July, so assuming he's been selling some on the open market the numbers can fit.

 

Somehow I think its unlikely that TW would fork out $9 million for the option to sell his shares.  Why not just sell them?

 

 

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I was bored and looking through tables of listed convert prefs and saw this, so I thought I would pass on. Just another way you could get long SD

 

Ticker: SDRXP CUSIP: 80007P406

 

These are 8.5% convert perpetual prefs with a liquidation preference of $100 with no stated maturity. It pays $4.25 on 2/15 and 8/15. The prefs are convertible at any time at the holders option into 12.4805 common shares of SD for a conversion price of $8.0125.

 

They currently trade at $103.5

 

I dont own them, but I do have a small position in the common. Here is a link the prospectus[ftp=ftp://www.sec.gov/Archives/edgar/data/1349436/000095013409000802/h65499exv3w1.htm]http://www.sec.gov/Archives/edgar/data/1349436/000095013409000802/h65499exv3w1.htm[/ftp]

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cunningham,

 

the pfd is nice is one is looking for the dividend. However,  the conversion option is 12.4805 share per share of the pfd.

 

"The preferred shares are convertible any time at the holder's option into 12.4805 common shares of SandRidge Energy Inc. (NYSE: SD), an initial conversion price of $8.0125 per common share."

 

Unless the stock trades about $8, one isn't going to get much out of it besides the dividend.

 

 

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Take-over coming, mark my words...  ;)

 

All stocks are going up big and especially some of the smaller oil stocks that have been pounded this summer. It is one of the very few areas that was cheap in the market.

 

Repsol has mentioned about a $5 to 10 billion acquisition in NA. There are not many that are cheap in that price range and the fit looks good IMO. Now, with SD share price moving up sharply, they have to act fast if not the opportunity will be gone.

 

It is time to put up or shut up Repsol!

 

Cardboard

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Take-over coming, mark my words...  ;)

 

All stocks are going up big and especially some of the smaller oil stocks that have been pounded this summer. It is one of the very few areas that was cheap in the market.

 

Repsol has mentioned about a $5 to 10 billion acquisition in NA. There are not many that are cheap in that price range and the fit looks good IMO. Now, with SD share price moving up sharply, they have to act fast if not the opportunity will be gone.

 

It is time to put up or shut up Repsol!

 

Cardboard

 

It's about time.

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I may be wrong but I highly doubt that a takeover will come anytime before March 2014.

For one thing, TPG has sold 10MM shares worth of March $6 puts (insider trade < 6 months?)

 

That brings me to another question. If TPG is so bullish, why did they sell puts instead of buying calls?

They are limiting their upside in a big way ($0.9 versus $3 or more)

 

And the recent well data do not show any monster wells. In fact, recent SD well data has been lackluster.

 

I think that this run up is due to Cooperman plus TPG puts.

 

Full disclosure - I got out of my entire position over the last couple of days.

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I sold all my LEAPS as well.  Mama always said: book the 150ish% gain.  I want to get back into it on a pullback, via some longer leaps or the converts.  Just wasn't feeling good about the approach of 01/14 and potential crosswinds from an energy pullback.  Seems like all these guys are going to keep drilling until half of them go bankrupt.  I suppose that excesses are the price for capitalism.

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SD has hedges in place so I would not be too worried about an energy pullback.

 

Tks,

S

 

I sold all my LEAPS as well.  Mama always said: book the 150ish% gain.  I want to get back into it on a pullback, via some longer leaps or the converts.  Just wasn't feeling good about the approach of 01/14 and potential crosswinds from an energy pullback.  Seems like all these guys are going to keep drilling until half of them go bankrupt.  I suppose that excesses are the price for capitalism.

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  • 2 weeks later...

http://phx.corporate-ir.net/phoenix.zhtml?c=196066&p=irol-newsArticle&ID=1872733&highlight=

 

Increases 2013 Production Guidance by 300 MBoe to 33.6 MMBoe

 

Mississippian Production Averaged 47.9 MBoe per Day in the Third Quarter, a 59% Increase Year-Over-Year

 

Decreased Mississippian Lease Operating Expense to $7.02 per Boe in the Third Quarter, a 22% Decrease Year-Over-Year

 

Delivered 104 Mississippian Wells with an Average 30-day IP of 307 Boe per Day during the Third Quarter, YTD Average 30-day IP of 339 Boe per Day

 

Initiated Development of Chester and Stacked Mississippian Formations

 

Issues 2014 Guidance

 

- Estimated 2014 Total Production of 36.3 MMBoe, 12% Organic Growth

 

- Estimated Mississippian Production of 22.8 MMBoe, 35% Growth

 

- Planned Capital Expenditures of $1.5 Billion

 

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