SD - SandRidge Energy

[Redskin212]

 

Mississippi Lime deals:

 

http://seekingalpha.com/article/1228331-chesapeake-asset-sale-provides-ugly-data-point-for-sandridge-shareholders?source=email_rt_article_title

[bmichaud]

The permian sale was mature acreage with 80% oil. Miss Lime is highly undeveloped and less than 50% oil. And if SD waits, according to Deutsche Bank, they face the prospect of declining domestic oil prices down to marginal cost of $80...

 

Good point.  Can you provide a link or post the DB report?

Future_of_US_Oil_DB_Note_12.19.12.pdf

[tombgrt]

Interesting developments here. Thanks for all the great posts these last few months.

 

I'm getting interested. Possible downside is getting smaller, better liquidity and the potential cataylsts are plentiful (TW, more asset sales, ...). Even if TW stays, Prem is surely putting pressure on him to get his act straight. Activists can always go for round two if this try fails.

 

It will be very interesting in Toronto this year.  I think for those attending, you could get some hear very good Q&A, both at the AGM and our dinner.  With RIMM, SD, FBK, OSTK, end of the lawsuit, all the cash and market highs, lots to talk about with Prem!  Cheers!

 

Very interesting indeed! If I ever get to Canada (my gf and I love travel and Canada is definitely on our to do-list ;)), I'll make sure the holiday falls in sync with the meeting so that I can attend at least once. :)

 

 

 

OT: Have been looking into SD more yesterday and tonight and I can't get comfortable at any level. It's a much bigger mess than I thought but I guess that's what creates possible opportunity here. I also can't get any real grip on valuation and with stock markets and commodities at current levels, I don't feel bad leaving my cash untouched or in FFH until we get obvious bargains all around once more. Oh and after all, I still have FTP to deal with... I'm not sure I could handle two promotional CEO's and their big ego's! :D Good luck all with this one!

[sampr01]

SD results..loss $301 mil

>:(

 

http://www.reuters.com/article/2013/02/28/sandridge-results-idUSL1N0BSID120130228?feedType=RSS&feedName=marketsNews&rpc=43

[Parsad]

SD results..loss $301 mil

>:(

 

http://www.reuters.com/article/2013/02/28/sandridge-results-idUSL1N0BSID120130228?feedType=RSS&feedName=marketsNews&rpc=43

 

If you exclude the impairment, then the quarter wasn't bad at all.  Cheers!

[alertmeipp]

http://phx.corporate-ir.net/phoenix.zhtml?c=196066&p=irol-presentations

 

Type curve lowered again.. lowered from from Nov 12 ....YE12...... lower slightly in only 1 month

 

Hope it goes down to four.

[thecynic]

http://preview.tinyurl.com/dy84xxd

 

Doug Leggate, an analyst for Bank of America Merrill Lynch, said Chesapeake's sales price is not as bad as it looks and that the dire analyst warnings are "flawed."

 

He said the price Chesapeake received is based on the number of rigs the company has looking for oil and natural gas in the Mississippi Lime.

 

Because of funding and budget constraints, Chesapeake has reduced its rig count in the area to eight. At that level of drilling activity, Leggate said, the play is worth about $3,500 an acre on a fully developed basis. At 40 rigs -- the amount SandRidge is using -- the area would be worth $10,000 an acre, he said.

 

"There is no other way to summarize Chesapeake's much anticipated JV deal in the Mississippi Lime other than to acknowledge that headline metrics looked disappointing -- at least versus other transactions in the play that had broadly set expectations," Leggate wrote Wednesday.

 

 

[plato1976]

I don't get the logic here.

Whether it's based on rig count or not, CHK sold that acre @ 1B

 

 

http://preview.tinyurl.com/dy84xxd

 

Doug Leggate, an analyst for Bank of America Merrill Lynch, said Chesapeake's sales price is not as bad as it looks and that the dire analyst warnings are "flawed."

 

He said the price Chesapeake received is based on the number of rigs the company has looking for oil and natural gas in the Mississippi Lime.

 

Because of funding and budget constraints, Chesapeake has reduced its rig count in the area to eight. At that level of drilling activity, Leggate said, the play is worth about $3,500 an acre on a fully developed basis. At 40 rigs -- the amount SandRidge is using -- the area would be worth $10,000 an acre, he said.

 

"There is no other way to summarize Chesapeake's much anticipated JV deal in the Mississippi Lime other than to acknowledge that headline metrics looked disappointing -- at least versus other transactions in the play that had broadly set expectations," Leggate wrote Wednesday.

[thecynic]

I don't get the logic here.

Whether it's based on rig count or not, CHK sold that acre @ 1B

 

I think there are several advantages to having more rigs, so the pricing would have to be different based on # of rigs:

1) Proportionally more of the leased acreage can be put towards generating cash.

2) Quicker and hence ultimately higher rate of returns. With more wells, more oil can be pumped.

3) Helps lower well costs because drilling can be done close together so that company has to spend less on Water disposal, roads, electricity etc infrastruture.

 

Of course, if a company is cash strapped, more rigs are a problem because the company would have to spend more for drilling.

[plato1976]

I agree. But certainly it's not proportional to the rig count

On the other hand, I agree that for CHK this is more like a distressed sale. They had few choices I guess

What's depressing SD now is probably the lower oil percentage in MISS according to more recent data.

Don't see a short term catalyst for this baby - don't want to add if no catalyst

 

I don't get the logic here.

Whether it's based on rig count or not, CHK sold that acre @ 1B

 

I think there are several advantages to having more rigs, so the pricing would have to be different based on # of rigs:

1) Proportionally more of the leased acreage can be put towards generating cash.

2) Quicker and hence ultimately higher rate of returns. With more wells, more oil can be pumped.

3) Helps lower well costs because drilling can be done close together so that company has to spend less on Water disposal, roads, electricity etc infrastruture.

 

Of course, if a company is cash strapped, more rigs are a problem because the company would have to spend more for drilling.

[Palantir]

Any of you guys holdig SDT or SDR? I'm waiting for their annual report to see what their PV-10 is.

[Guest hellsten]

SandRidge Energy 2013 Investor/Analyst Meeting:

http://phx.corporate-ir.net/phoenix.zhtml?c=196066&p=irol-presentations

[nestorius]

TPG-Axon up to 7.3% - 36.2 million shares.

 

http://www.sec.gov/Archives/edgar/data/1349436/000090266413001332/p13-0907sc13da.htm

[PlanMaestro]

Any of you guys holdig SDT or SDR? I'm waiting for their annual report to see what their PV-10 is.

 

I think it includes the Permian trust.

 

http://farm9.staticflickr.com/8507/8532148325_1dc9b9c049.jpg

[alertmeipp]

I listened to a few sections of the call, it's great team.

[Zorrofan]

SD held their 2013 Investor day......

 

Presentation:

http://phx.corporate-ir.net/phoenix.zhtml?c=196066&p=irol-presentations

 

Transcript:

http://seekingalpha.com/article/1249251-sandridge-energy-s-ceo-hosts-2013-investor-analyst-meeting-conference-transcript

 

enjoy! Looking forward to March 15th results, should be interesting!!

 

cheers

Zorro

[ericd1]

Z Thanks for sharing. The proforma book value is impressive. 

[Parsad]

TPG Wins Injunction...Sandridge cannot bar TPG from running proxy to remove entire board:

 

http://www.bloomberg.com/news/2013-03-08/sandridge-investors-win-injunction-in-proxy-fight-case.html?cmpid=yhoo

 

Cheers!

[muscleman]

SD held their 2013 Investor day......

 

Presentation:

http://phx.corporate-ir.net/phoenix.zhtml?c=196066&p=irol-presentations

 

Transcript:

http://seekingalpha.com/article/1249251-sandridge-energy-s-ceo-hosts-2013-investor-analyst-meeting-conference-transcript

 

enjoy! Looking forward to March 15th results, should be interesting!!

 

cheers

Zorro

 

Pro forma net asset value per share is over $31, but most of it is based on projected value. Does anyone believe what TW says? What could be the true net asset value?

[muscleman]

TPG Wins Injunction...Sandridge cannot bar TPG from running proxy to remove entire board:

 

http://www.bloomberg.com/news/2013-03-08/sandridge-investors-win-injunction-in-proxy-fight-case.html?cmpid=yhoo

 

Cheers!

 

Nice! Well, I think even if TPG loses the proxy fight, the assets are so undervalued that we will probably do ok in the long term. Let's say they lose and share price tank to $4, then it would become so undervalued that it doesn't matter that TW and his board sucks some blood from the shareholders every year.

If that really happens, do you think TPG can call for another round of vote? At that time, retail investors would be scared out, and these funds would have the chance to acquire more than 50% of the stakes on their own and do not rely on retail side's vote to determine the result.

[plato1976]

Is SD really that cheap ?

According to SD 's own estimation, its value based on proved reserve is not that big.

See this article:

http://seekingalpha.com/article/1255201-sandridge-energy-value-gap-not-obvious-leverage-remains-a-challenge

 

ppl are probably betting on its huge unproved reserve. This is hard to prove in the short term, and to prove it you need lots of drilling and lots of capital expenditure.

 

 

TPG Wins Injunction...Sandridge cannot bar TPG from running proxy to remove entire board:

 

http://www.bloomberg.com/news/2013-03-08/sandridge-investors-win-injunction-in-proxy-fight-case.html?cmpid=yhoo

 

Cheers!

 

Nice! Well, I think even if TPG loses the proxy fight, the assets are so undervalued that we will probably do ok in the long term. Let's say they lose and share price tank to $4, then it would become so undervalued that it doesn't matter that TW and his board sucks some blood from the shareholders every year.

If that really happens, do you think TPG can call for another round of vote? At that time, retail investors would be scared out, and these funds would have the chance to acquire more than 50% of the stakes on their own and do not rely on retail side's vote to determine the result.

[lessthaniv]

I'm not so sure that the stock price falls if TPG loses.

 

Like him or not there is no denying that Tom Ward has built a wonderful collection of assets in a short period of time. Many investors came to this company because of Tom Ward's track record and although I'm not a fan of corporate officers taking liberties ... everything that he's done has been disclosed. So investors have always had the opportunity to make there own decision. Contrary to the press, I think a strong contingent of shareholders are invested here because of and for - Tom Ward.

[Parsad]

I'm not so sure that the stock price falls if TPG loses.

 

Like him or not there is no denying that Tom Ward has built a wonderful collection of assets in a short period of time. Many investors came to this company because of Tom Ward's track record and although I'm not a fan of corporate officers taking liberties ... everything that he's done has been disclosed. So investors have always had the opportunity to make there own decision. Contrary to the press, I think a strong contingent of shareholders are invested here because of and for - Tom Ward.

 

I think the stock price does better...win or lose.  Markets don't like uncertainty. 

 

Regardless, I think like CHK, SD is going to have to change some of the behavior around the company.  I'm going to be first in line at the AGM to ask a question on this, so if I'm asking, how many other shareholders, be it Fairfax or Sandridge, are wondering the same thing?  TPG did illuminate a number of disturbing issues around compensation and conflict of interest.  Cheers!

[zippy1]

I managed the account of my father-in-law, who live in Taiwan. This morning I was told by him that he received calls about this proxy vote.  Wow! This fight must be fierce!

[Redskin212]

I have received no less than 15 messages at home AFTER telling them twice that I have received the information and will be voting.  SD campaign to get shareholders to vote is bordering on harassment.