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SD - SandRidge Energy


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They bot 90k for 800millions couple years ago. Now, IPO 60% of 16k (net 100k) for 6-700millions... that's good business.

 

I know there is cost associated with it... I am very tempted to add back.

 

I am going to hold. When we take out the new highs or if. I plan on selling a chunk and then will add on a pullback with the excess proceeds and a bit more. I am kicking myself for not taking gains at $13, adding at $10, and preparing to sell the new leaps. This will be done in my Roth. I think I will exercise my $5 2012s in my taxable account.

 

I will do this on the next go round. I cant add, similar to ATSG - SD is dominating my portfolio. Oil and Gas is my portfolio which makes it even tougher. I have sold off Petrobank, and Diamond and will sell Ensco soon. Now its just SD and TAT.

 

I think SD will continue to trade with oil prices though inmo so we have plenty of chances. This just got a whole lot more interesting. I notice Ward did this right after his last conference, we wont hear from him till July Q2 call or August. Interesting. He can do this for quite a while. He could do it again, close the funding gap, buy a bunch of cheap rigs and do another one in the Permian or Miss for more cash.

 

I think demand is there as long as rates are low and oil prices are high. We get paid up front and get a kicker on the upside. He could delever through this lol. Very interesting indeed.....

If we pullback to $10 I may sell something and buy.

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I made a few notes from the recent conference call.  I still can't get over how different this company is from the Sandridge of 2009.

 

http://seekingalpha.com/article/272825-sandridge-energy-finding-salvation-through-oil-production

 

 

Thanks Swizzled, always enjoy your reports. You were right about one thing, tough to value. I am looking for 50% of NAV calculated by Ward and his team. Though the market is putting insane prices on smaller tracks via the trusts. The calculated land values are .......

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  • 1 month later...

after seeing this news i had to revisit the story - it is my largest holding - everything looks to be coming together - Permian trust,drilling,oil prices,selling of Petrohawk at a very nice premium - of course world events,failure of trust and missed guidance on production for quarter would hurt especially the last  - i will hold - maybe they have other need for the cash - they still own a lot of convertibles for now anyway - i believe mr. wasta owned some SD in his own accounts - is he still holding

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Still my largest holding. I want to lighten up a bit around $13. I love these trusts and would love to see another Permian trust right after, followed by a Miss trust. The economics are amazing in my opinion. Hopefully we are hedging every drop of oil in production at $100 out 2 years....

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  • 2 weeks later...

http://finance.yahoo.com/news/SandRidge-Energy-Inc-Reports-prnews-3675657076.html?x=0&.v=1

 

Signs $500 Million Mississippian Joint Venture

Launches New Mississippian Play, Targeting One Million Acres

Announces Three-Year Strategic Plan

    - Self-Funding Capital Program

    - Double-Digit Annual Production Growth

    - Debt to EBITDA Ratio of Less Than 2:1

Increases 2011 Production Guidance to 24.1 MMBoe, 20% Growth from 2010

 

I am shocked by the steep sell-off as the numbers were actually pretty good once you subtract the one time items...

 

Thanks,

 

S

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- debt

- oil prices down

- fairfax selling > 20 million shares

 

the first 2 can be debated but the third one can't.......

 

regards

rijk

 

... much of which should have been reflected in yesterday's closing price.

 

CC must have gone badly.  Off over 20% today.  Sheesh.

 

I wasn't listening in, but I doubt it; Ward's team has always been very polished in their interaction with analysts and investors.

 

My initial read is that the market seems worried about higher '11 and '12 capex - the current market volatility introduces the risk that not all of the (now larger) funding gap can be filled with new JVs/trusts.

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To be honest I am glad Tom Ward is buying land  ;D. Today sucks my networth has taken a significant hit now that SD and ATSG have collapsed. I am probably going to sell ATPG for a loss (tax reasons), buy tons of SD 2013s, and sell my 2012s at a gain.

 

Ward flipped land bought last year for 20x the purchase price, he can do what he wants to inmo when it comes to buying land.....

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Myth - I like your interpretation better.

 

How about Hete's pronouncement at the end of the ATSG call...  nice to hear from a CEO.

 

Do you mind posting what he said. I am playing catchup today. Everything I own is being hammered. I liked the ATSG close but havent listened to the call.

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I just doubled my position in SD @ $7.029 by selling half my position in ATPG.

 

Thanks,

 

S

 

EDIT: I just put an edit that I sold my other half position in ATPG but the trade did not execute and I just cancelled it right now! YAY cause of the rebound...

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after seeing this news i had to revisit the story - it is my largest holding - everything looks to be coming together - Permian trust,drilling,oil prices,selling of Petrohawk at a very nice premium - of course world events,failure of trust and missed guidance on production for quarter would hurt especially the last  - i will hold - maybe they have other need for the cash - they still own a lot of convertibles for now anyway - i believe mr. wasta owned some SD in his own accounts - is he still holding

 

i guess i should have revisited a little harder  -  talk about a timely sell

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