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SD - SandRidge Energy


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Just nice to see someone with a fair bit of coin invested still adding. Its all about the Mississippi Lime now however if NG continues to rise the WTO might get back into the play. I have shifted dome to othet plays but this is still a game changer for me if cooperman and tpg are right

 

 

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  • 3 weeks later...

I am very bullish on Sandridge but it is now down in after hours trading which is crazy.  What amazing results!!! Am I missing anything?

 

Tks,

S

 

http://finance.yahoo.com/news/sandridge-energy-inc-updates-shareholders-211500701.html

 

-Exceeded 2013 Production Guidance with Lower than Projected Capital Expenditures

- Produced 33.8 MMBoe, 1% more than guidance of 33.6 MMBoe

- Spent $1.424 Billion, 2% less than guidance of $1.450 Billion

-Increased Mid-Continent Production 8% to 51.7 MBoe per Day from the Previous Quarter, 44% Above the Fourth Quarter of 2012

-Delivered 80 Mid-Continent Wells with an Average 30-day IP of 386 Boe per Day during the Fourth Quarter; 2013 Average 30-day IP was 366 Boe per Day

-Successful Appraisal Program Adds Sumner County, Kansas to the Focus Area

-Increased PUD Type Curve: Oil EUR Up 10% and Boe EUR Up 3%

-434% Reserve Replacement and All-in Finding and Development Cost of $11.72 per Boe, Based on Retained Properties

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Do you mean their focus areas or outside their focus areas? Production is up 8% QoQ, what else do they need to prove? They also reduced their drilling costs per well to $2.90 Million.

 

Tks,

S

 

well, it's up now. They need a partner or two to prove out their other locations.

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I am not sure if anyone else listned to the CC as everything was extremely positive and there were no surprises... (Something TW used to be known for)  I cannot wait until next week for Analyst day.  Now that Repsol has agreed to the $5B Argentina compensation, does TPG put Sandridge in play?  hmmm...

 

Tks,

S

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Their 30-day average well production numbers have bounced between low 300s and high 370-380 over the past year.  I think for a statistical play that would be okay once you've established an average in the high 360-370 Boe/day range.  But its up to them to show it and if they can move that Boe/day production average closer to 400 then the stock would take off.

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Most intriguing parts of the CC transcript:

 

So [Repsol's] numbers are good, and they’re in line. And I’d be very pleased with being at the top of the range, and I think it’s consistent with what we’ll talk about next week. These are not our numbers though, these are Repsol’s numbers. They came up with them completely on their own. But I think it does correspond to what we’re talking about, and I think it reaffirms our belief in the play, in the growth of the play, in the development of the asset over the next several years.

 

. . . .

 

But I think just early, we can comment that there is a certain geologic model that we’re targeting now that we’ve learned about initially. We have the Woodford over a vast portion of our lease hold. So we started out testing the different areas and quickly learned from what we’ve seen, what the results showed us, and now we’re starting to target a more specific area of the play. And that’s the reason that you see the improved performance. And we have several wells coming up here in Q2 that will test that theory and we’ll talk to that next week. But we are pretty excited. We think we’ve got a bead on it.

 

-----

 

So Repsol does seem to be a potential acquiror, especially now that they are getting some cash back from Argentina. 

 

Does anyone think that DVN might be interested?  I could see them going big in the Mississippi/Woodford.  And they would have the side benefit of being able to drop down the consolidated infrastructure assets into the new midstream MLP.  I would love to get DVN stock in exchange for SD stock.

 

Bennett also alluded to unlocking value with the infrastructure assets.  That could potentially be an MLP spin-off or sale to an existing MLP.

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I am not sure if anyone else listned to the CC as everything was extremely positive and there were no surprises... (Something TW used to be known for)  I cannot wait until next week for Analyst day.  Now that Repsol has agreed to the $5B Argentina compensation, does TPG put Sandridge in play?  hmmm...

 

Tks,

S

 

Analyst day was very positive, management doing everything right to turn this around, very focused on building shareholder value - result? Share price continues to drop, Zorro's blood pressure continues to rise    :'(

 

If someopne can explain this to me???  Are the shorts really pushing the share price down that much or is this just the most hated stock on the NYSE?

 

cheers

Zorro

 

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I am very puzzled by the PPS as well since I strongly expected it to rise above $7 after the Q4 earnings / analyst day!!!! The company is targeting to further drive efficiency and reduce the price per well from $2.9m to $2.7m which is a huge savings as they continue to drill more wells for less capital.  I am extremely impressed with the new management team. 

 

TPG did hint on a previous conference call that they should potentially tack on a share repurchase program.  This would be immediately accretive but who knows if this will be actually announced.

 

Thanks,

S

 

I am not sure if anyone else listned to the CC as everything was extremely positive and there were no surprises... (Something TW used to be known for)  I cannot wait until next week for Analyst day.  Now that Repsol has agreed to the $5B Argentina compensation, does TPG put Sandridge in play?  hmmm...

 

Tks,

S

 

Analyst day was very positive, management doing everything right to turn this around, very focused on building shareholder value - result? Share price continues to drop, Zorro's blood pressure continues to rise    :'(

 

If someopne can explain this to me???  Are the shorts really pushing the share price down that much or is this just the most hated stock on the NYSE?

 

cheers

Zorro

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