I've looked over SD's earnings, listened to the conference calls and watched the 'Analyst Day' presentation yesterday. What I don't understand, are many of the investors comments on this message board. I like many of them have concerns about the compensation structure, however, building and running a highly leveraged growth company in the public eye is no small matter. If an investor doesn't have the guts to own a highly leveraged growth company and want to invest in an steady earnings grower, they should go buy Home Depot or something. If TW and company were really greedy, they should offer shareholders a price for their shares, take the company private, develop the Mississipian Lime acreage, then bring the company public in 5 years for $60/share. Too many "wusses", including hedge funds that want a quick two-card poker hand at SD. Sorry folks, this is a 7-card stud game and there are more cards yet to be delt and you have to wait on them. If the effects of leverage at this stage bugs you, get out and go buy Home Depot stock.
to the insulting BEE ESS above by hounddawgie ...... you've been here a week , you can shut your pie hole about "pansy Sd investors" that (in your worthless opinion) want a quick game of poker , while you are playing "7 card stud" (oooooh I'm impressed) ........ Tons of SD investors have been here 5 years ...... we sort of laugh at all the "just give it 3 years" garbage ........ TPG's accusations are 100% spot on concerning Tom using this company as a piggy bank and as a means to bolster his private investments , FOR YEARS , while hocking the holy krap outta us to pay for it every chance he gets ....... You wanna know why he doesn't buy us out and take it private ????? Because he and his buddies prefer ALL THE RISK to be on us ....... while they enjoy the profits ........ and you effing call us "pansies" ...... GFYS ....... THE ONLY way anyone has made money here is trading in and out , and that's fine , don't mind that at all , except Tom and his cronies reward themselves too much in the process of aquiring this huge debt load ...... now , YOU might like to get boned in the rear , but we don't ..... pansies my #$%$
I should have known that my title would provoke some hate. I don't really care if TW survives as CEO, he can be replaced. These boardroom seat battles isn't senior to getting crude out of the ground, IMO. It just doesn't seem like we can expect a few NY hedge funds to put together a "pearl buttoned" team to run things much better, they are going to have their "warts" too. If you think you are going to drop a "first-string" CEO out of the ceiling for a $3B E&P company without a bunch of short strings and hooks in him, I've got news for ya, what you are most likely to get is a castrated house cat.
Leverage isn't the main concern of the board. I don't have a problem with the leverage but with TW thinking this is his personal piggy bank. If you listened to the annual report you know it sounded good but it's no different than the last 3 annual report comments about how great things were. The issue is that the stock is down about 75% in the last 5 years and 90% from the all time high. The only one getting fat is TW and Family. He changes direction so often that the company can't finish anything before he's off somewhere else. Why else would this be the worst performing stock in it's sector. The company has promise but not with #$%$ the helm.
Tom Ward needs to know "someone is watching" if he continues as CEO ..... I prefer he get the boot , but either way SD is better off ....... I don't care what anyone says , TW has made as many blunders as he has made brilliance ....... hedging losses (CFO got fired over it) , overpaying for DOR which is an offshore play , the potential risk being very large for a small oil company ...... Can we afford a "BP Spill" ???? This company will go BK if we have an offshore "situation" of any magnitude ....... Tom Ward's presentations have been very positive always , yet the stock never performs or earns shareholders equity ....... and Tom never pays down debt , and he has dilutively spun off trusts using the parent as collateral , just like George Econameau does with DRYS ...... Do what you want , fine with me , but don't massively reward yourself every chnce you get , while shares stink from 4 - 7 endlessly ..... and 7 is usually just a great time for the shorts to pile in again ...... gets old ...... I started out wanting an investment here , but it has just turned into a trading platform ...... ALL OF US longs wanted an investment , I am 100% sure of that ....... Obviously , politics and NG prices have had a huge effect on SD and others , no doubt , no blame to Tom there ...... He's just draining equity away from us , and that is the entire beef , and it won't stop unless we get the Fox out of the Henhouse , or a ticked off Farmer with a shotgun watching ...... TPG
The energy landscape in the U.S. is not "static", it is very dynamic. You need a CEO who is not afraid to make moves as the landscape changes. If you want a CEO who can run the ball straight ahead for a score from the competition's 5 yardline SD may not be a good stock for you. If you want a CEO to start on his own 5-yardline and run the ball 95 yards for a goal, you gotta expect some zigging and zagging over a series of downs. Given this, I don't think TW is the only capable person to lead the company, but at this juncture he is the QB. I also think the board needs to tighten-up governance and compensation, but those aren't the most material issues here, there are a lot of bigger fish to fry in getting the company moving, making larger yardage gains.
Agreed to a certain extent (leverage has to be weighed against the acreage/assets, there is such a thing as too much). Anyone who did not see risk in this stock (heck ANY stock) did not understand it. The greater the risk, the greater the potential reward. In SD's case they have actively reduced the risk (hedges and deleveraging) and I think the stock is a steal at this price. It works as a trade, a takeover target and as a long-term investment. TW must have seen what has happened at CHK and will restrain himself going forward even if TPG loses the vote. I think it is a win either way.