Don't let the after hour action or even tomorrow's fake sell off fool you. This was a good quarter, and moving forward SD is in good shape financially. Well costs in Miss are coming down nicely, liquidity is very good, debt expenses will decrease and drilling for 2013 and 2014 already accounted for with cash on hand and cash flow.
The upside is much greater than the downside at these discount prices. If the fear continues to persist tomorrow, I will have to buy a little more on the dip as it will be unwarranted. Though Ward may be a dirtbag, the overall drilling operations are doing fine and balance sheet is ok and will continue to improve as growth ramps up in the Miss.
Its harvest time guys, get ready
SD is paying over 1 Billion w/ Permiun sale money
That will reduce interest cost over 100 million in 2013
that goes to the bottom line
Means 20 cents /share earning increase in 2013
Sd is a buy here
agreed...the numbers do look better.
also, if people wanted to dump, then after hours volume would have been at least a million per usual. The inconsequential volume suggests up.
Sentiment: Strong Buy
The only real negative was the 13% decrease in oil production. To replace the permian production in oneyear less the 13% is great. Also the cheaper drilling, cheaper interest--I can't tell what the pps is going to do---we are playing their game !