tombgrt Posted August 7, 2013 Share Posted August 7, 2013 Well it will take some time for the changes to pass through the quartlerly statements properly and clearly. Give it some time! :) Link to comment Share on other sites More sharing options...
CorpRaider Posted August 7, 2013 Share Posted August 7, 2013 I thought the quarter was a nice beat all around. It did sound, however, like there are no plans to sell the company anytime in the near future on the call. Link to comment Share on other sites More sharing options...
alertmeipp Posted August 7, 2013 Share Posted August 7, 2013 so tpg changes their mind after they get in and pay 120mills to get rid of tw, nice Link to comment Share on other sites More sharing options...
oldye Posted August 7, 2013 Share Posted August 7, 2013 I thought the quarter was a nice beat all around. It did sound, however, like there are no plans to sell the company anytime in the near future on the call. Not sure it would be a great idea to sell while their well costs are dropping like a rock and they're still proving the stacked play. During the annual meeting they said that using offshore technology they were able to drill 12 wells @ an 11 day average spud to spud. Not sure how many wells they can drill this way but this will keep driving costs below 2.95 mil. Give them time, I did not hear anything new regarding whether or not they plan on selling the company. He said it was always an option. The longer they keep developing this play, the likelier this becomes a 3x instead of a 2x. At a 5 billion EV you are getting 91 BOEPD with over 3.2k potential wells left to be drilled in the "sweet spot." Link to comment Share on other sites More sharing options...
alertmeipp Posted August 7, 2013 Share Posted August 7, 2013 TW selling out? Link to comment Share on other sites More sharing options...
tombgrt Posted August 7, 2013 Share Posted August 7, 2013 so tpg changes their mind after they get in and pay 120mills to get rid of tw, nice How did they change their mind? Just because you don't get paid right after they have taken over doesn't mean nothing is in progress, sale or no sale. I thought the quarter was a nice beat all around. It did sound, however, like there are no plans to sell the company anytime in the near future on the call. Not sure it would be a great idea to sell while their well costs are dropping like a rock and they're still proving the stacked play. During the annual meeting they said that using offshore technology they were able to drill 12 wells @ an 11 day average spud to spud. Not sure how many wells they can drill this way but this will keep driving costs below 2.95 mil. Give them time, I did not hear anything new regarding whether or not they plan on selling the company. He said it was always an option. The longer they keep developing this play, the likelier this becomes a 3x instead of a 2x. At a 5 billion EV you are getting 91 BOEPD with over 3.2k potential wells left to be drilled in the "sweet spot." Jup. Give it time. Meanwhile I buy and sell while Mr Market makes up his mind. Link to comment Share on other sites More sharing options...
CorpRaider Posted August 7, 2013 Share Posted August 7, 2013 Yeah I'm not disappointed in the least. I thought it was a great quarter. They're bringing down rig count by ~10% and upping overall production guidance 5% with even higher oil growth and that's with the expected slow decline in the GOM assets. I was just speculating that the sell-off was due to the tone being much more focused on (kicking ass) operating than selling. Link to comment Share on other sites More sharing options...
fareastwarriors Posted August 7, 2013 Share Posted August 7, 2013 Drop a bit more and I will add more. :D Link to comment Share on other sites More sharing options...
alertmeipp Posted August 7, 2013 Share Posted August 7, 2013 water infrastructure and gom assets will be keepers for now, not only that, they may get some gom assets if price is good. talk about change of thought Link to comment Share on other sites More sharing options...
CorpRaider Posted August 7, 2013 Share Posted August 7, 2013 Color me puzzled. Down 9% on over 3x avg. daily volume on what I thought was a really strong quarter. I expected one kind of crappy quarter and they got a pass given the transition. Link to comment Share on other sites More sharing options...
txlaw Posted August 8, 2013 Share Posted August 8, 2013 CC transcript: http://seekingalpha.com/article/1614322-sandridge-energys-ceo-discusses-q2-2013-results-earnings-call-transcript Link to comment Share on other sites More sharing options...
alertmeipp Posted August 8, 2013 Share Posted August 8, 2013 anyone still think this is going to get sold by year end? not going to happen Link to comment Share on other sites More sharing options...
txlaw Posted August 8, 2013 Share Posted August 8, 2013 anyone still think this is going to get sold by year end? not going to happen It's possible that it could still happen. But things are going well enough with new management that they will definitely turn down any inadequate offers, even for the gulf assets. I like their style. I don't want them to give the company away for a song. Link to comment Share on other sites More sharing options...
Myth465 Posted August 8, 2013 Share Posted August 8, 2013 This could be a long term home run if the stacked play works out. Great quarter operationally, but the shareholder base is rotating from quick sale to long term hold. I am in the quick sale bucket but am coming around. I really like the new CEO. Link to comment Share on other sites More sharing options...
plato1976 Posted August 8, 2013 Share Posted August 8, 2013 My original plan was to get a quick 50-100% return from this one, and reinvest into CHK ; seems the opposite may happen ... either way I am fine, in fact This could be a long term home run if the stacked play works out. Great quarter operationally, but the shareholder base is rotating from quick sale to long term hold. I am in the quick sale bucket but am coming around. I really like the new CEO. Link to comment Share on other sites More sharing options...
txlaw Posted August 8, 2013 Share Posted August 8, 2013 This could be a long term home run if the stacked play works out. Great quarter operationally, but the shareholder base is rotating from quick sale to long term hold. I am in the quick sale bucket but am coming around. I really like the new CEO. I gotta say, I was hoping for quick sale too, because I also wanted to put more into CHK. I figure that SD is worth a decent premium to a consolidator in the region because of the infrastructure and expertise. (Sinopec perhaps?) But I'm cool either way. Link to comment Share on other sites More sharing options...
txlaw Posted August 8, 2013 Share Posted August 8, 2013 This could be a long term home run if the stacked play works out. Great quarter operationally, but the shareholder base is rotating from quick sale to long term hold. I am in the quick sale bucket but am coming around. I really like the new CEO. I gotta say, I was hoping for quick sale too, because I also wanted to put more into CHK. I figure that SD is worth a decent premium to a consolidator in the region because of the infrastructure and expertise. (Sinopec perhaps?) But I'm cool either way. What turned me around was the quality of the new guy, Lawler. I was a bit worried that SD would deteriorate operationally after Ward was kicked out. Link to comment Share on other sites More sharing options...
alertmeipp Posted August 8, 2013 Share Posted August 8, 2013 Probably FFH has influenced some of the thinking here. Seems like they don't mind purchasing cheap GOM assets, maximize capital allocation while controlling their cost. Won't be surprised if TW and co. is selling heavily today. Link to comment Share on other sites More sharing options...
Myth465 Posted August 8, 2013 Share Posted August 8, 2013 I have always liked the cheap GOM tuck on acquisitions, but didnt like the orginal price of first major acquisitions. I need to listen to the call, but they are reducing capex and increasing production which is what I like. They are no longer in empire building mode, and seem focused on realizing value on what they have. Hopefully we get a bit of a rebound, and this is likely dead money for a bit; but over the long term I think it will work out well. Link to comment Share on other sites More sharing options...
txlaw Posted August 8, 2013 Share Posted August 8, 2013 Probably FFH has influenced some of the thinking here. Seems like they don't mind purchasing cheap GOM assets, maximize capital allocation while controlling their cost. Won't be surprised if TW and co. is selling heavily today. Yeah, Bennett was very focused on capital allocation on the call. He also said he was all about maximizing the share price on the call, which was a little weird (not exactly pandering to the Street, but . . . ). Btw, I forgot that Lawler had been at SD for a while, and was just promoted to COO in April. Was getting confused with his bro being put at the top of CHK. Definitely could be that TW is dumping more stock. Link to comment Share on other sites More sharing options...
alertmeipp Posted August 8, 2013 Share Posted August 8, 2013 >>Yeah, Bennett was very focused on capital allocation on the call. He also said he was all about maximizing the share price on the call, which was a little weird (not exactly pandering to the Street, but . . . ). The call does have some awkward moment, especially when the bond holder keep saying the company should consider merge itself into a larger entity. I think Bennett wants to focus on execution and does not want to talk about a sale for some reasons. Maybe for the employees, maybe tactics. Link to comment Share on other sites More sharing options...
ASTA Posted August 8, 2013 Share Posted August 8, 2013 I think what Leon Cooperman said that either its a double or 0 with one year applies. And looking at the number I think the probability that a double happens is higher after the 2nd quarterly results. Link to comment Share on other sites More sharing options...
CorpRaider Posted August 8, 2013 Share Posted August 8, 2013 Yeah that guy asking about the sale was tenacious. On the last two calls, a couple of the analysts have really tried to get them to state what level of cap ex they hope to be able to sustain when their current funding is projected to run out (end of 2015) and both times they've basically said "that's not in our plan". I think if they said, "we could slow growth to X and sustain that based on our projected cash flows in 2016 if we successfully execute our plan" the people fearful of the zero possibility would be soothed. Also, it would save the two questions on that each call for the next 10 quarters. Link to comment Share on other sites More sharing options...
txlaw Posted August 8, 2013 Share Posted August 8, 2013 I think what Leon Cooperman said that either its a double or 0 with one year applies. And looking at the number I think the probability that a double happens is higher after the 2nd quarterly results. I think Cooperman was being a bit facetious on the 0 remark, as there's no way the company is a 0. He seemed to be saying that as long as oil prices don't tank, the company is worth a lot more than what it's trading at. Link to comment Share on other sites More sharing options...
bmichaud Posted August 8, 2013 Share Posted August 8, 2013 Just now getting to DVN and SD transcripts - this Woodford subzone play could be an interesting wild card for SD if it is similar to DVN. DVN discusses extensively in the CC attached. Devon_Energy_Corporation_Q2_2013_Earnings_Call_Aug_07_20132.pdf Link to comment Share on other sites More sharing options...
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