SDR's production decreased last quarter even though they drilled more wells. Production has already peaked, that is why this stock is dropping. Do not believe the PV-10 reports, look how far off they were in the IPO. Just my opinion.
The price of NG was very low last quarter, and production cuts by all have helped get NG to $4.30 something now. Sure colder winter weather was a factor also. Producers were losing money at $2-3 cfm last quarter. NG is more profitable this quarter,maybe SDR's production will be up too, after all, the management has been in the NG game a long time.
Still, that's too strong statement on the basis of 1 quarter results. Drilling continues, there are fluctuations, and it can well be one of them. But what is certain is that there is a severe over-reaction to that one negative news.
I think those NatGas hedges are killing SDR.. Of course the Oil output hasn't help.. T Ward and the motley crew of engineers scammed everyone at the IPO or they are so inept that don't even belong working the frier at Micky D's!!