PER is hedged 80% at $100-102 for crude witch represents around 98% of production until 2016 according to most analysts. The company's projected target has been exceeded since the beginning. This is falling because other Sandridge trusts have missed numbers. And PER also missed but will pay $.65 before March 1.
"The company's projected target has been exceeded since the beginning."
That was true until this quarter, but for the quarter just announced the distribution target was .62 and the actual payment is .60.
So they are now paying below the target.
downgraded due to "reduced production visibility" ie. decline concerns.
Hedges don't help if the production drops.
See posts on SDT and SDR boards for downgrade details (yahoo won't let me post again here).
Another analyst Elliot Gue at StreetAuthority rates PER and SDT as top 10 stocks and he owns the stock. Any person can scare someone about the future which is not certain in any case, but if history is a guide the trust will produce.