heres a simple one, My peers work for SD and they are happy. i see them drive away to work everday, with smiles on their faces. they arent worried about a thing. oil up, nat gas up, good quarters, TPG good track record. price is low, bottom is near. SD is drilling like crazy, plus TW on the way out. the company will become more streamlined and efficient. fat will be cut, some more heads will roll but it will be for the greater good. if i was shorting this stock right now i would consider myself reckless w/ chances to make $$$$$ that are fading as quick as a fart in the wind. anyone bashing is just trying to create FUD. i wouldnt even waste my time posting on this board but some of these bashers are sofakingwetarded its crazy! this trmamra chick is about as clever as my 7 year olds hamster. with that said, SD is not some long term hold that will someday be a Exxon. but, buying at thisbprice will make you money. if trading was easy then trmmara wouldnt have to turn tricks at night to make up for her losses. be patient.
1) SD has the least leverage now than in the history of the company
2) Debt maturity is pretty far out, nothing imminent
3) Capex is funded until 2015
4) Costs per well are decreasing ( 2012 by $500k, 2013 by $250k?)
5) Infrastructure (power & SWD well) 1st phase complete, most 2013 wells drilled within existing infrastructure
6) New Percent of Proceeds (PoP) with Atlas helps revenues as NGL revenue captured
7) 2013 Oil production hedged nicely around $98
8) Rising NG price (now above $4) helps signifcantly
9) IP rate averages are increasing due to Electric Submersible Pump (ESP) usage and better knowledge of the play (more wells drilled, more knowledge gained).
LESS RISK (lower debt, corporate issues will be sorted soon)
LOWER COSTS (debt interest, cost per well, reduced infrastructure spending, reduced corporate spending)
HIGHER MISS. PRODUCTION (better IP rates, focus on sweet spots, ESP usage, better play knowledge)
HIGHER MISS. REVENUE (PoP agreement, increasing NG price, high oil price, hedges)
I asked you about SD on a different topic on this MB a few minutes ago.....no need to address that one, your comments here answer more than my share of question and doubt about SD. One last question though. Does SD have problem with leases coming to fruition before they can get drills to the sites?