Will be an interesting quarter to watch. Of the 2 Mississippian Trusts SDR beat and SDT underperformed...
Overall energy companies have mostly reported weak revenues, but inline income. I would expect the same with SD now that TPG and the boys are pulling back on the reigns.
I will say in light of the decline rates Ward got the most money he could for SD out of them. Now that the cat is out of the bag these thing are worth 1/2 of their IPO levels!
yes and that casts a pallor over sd as a stock, unfortunately. it was, imo, a con job.... and totally unnecessary except for the fact that ward has been blowing shareholder money like it's water. the problem is you can only con for so long. it's better that tpg salvages what they can while they can.
and the sd trust holders are luckier than sd shareholders, imo. they have seen a decline of 80%.
ward and trust are too words that should never be in the same sentence.
had the ceo been astute enough to avoid deals like the occidental deal, not take compensation that borders on theft, not plundered the till with all sorts of toys... kept general expenses in line and carefully focused on building sustainable core value instead of leasing land they don't have capex to drill, can you imagine where sd would be today?
instead, the company exists in a cloud of discredit and mistrust.
ward would have crashed the company in another 2 or 3 years, except he would have gotten out a few more hundred million ahead.
I don't think Ward set out to scam shareholders. It could be a case of simple incompetence. Ward got lucky with CHK and cashed out of it when nat gas was $13. He then started SD with $500 million of that money. He was just not capable of running his new company all by himself. He made some good decisions and some bad ones. All we can hope for now is that he made enough good decisions to leave TPG with the basis of a solid oil and gas producing company.
just read the article on the trusts, and now i see the reason for the stock stuck in this ugly range, when these numbers come out i just hope we don't get crushed...I am worried about this stock falling further...it could get ugly...oh well i am in at 4.86 and holding
SDR's results are troubling....
Results are very concerning. Looks like they added about 20 ish wells in the period, however production is flat? (Added 4Mbbls) Gas increased a bit (200MMcf). Income down by $700K. Something isn't adding up. Results this period show oil at 99 gas at 3. Last reporting period it was 98 oil and 1.80 gas. Expenses were about the same (little lower). Lost about $2 million on derivative settlements?
Decline rates must be much greater than reported. Drill 20+ wells and barely keep pace.
At these levels would it make sense for SD to buy back the trusts? They could basically buy back the trusts for 1/2 of what they sold them for. It would make the company a little more marketable to get rid of the drilling obligations. The cash flow would help the company's support the capex. Then they could drill just the hot spots, not just wells to fill in as required by the trust.
Just wondering if they is plausible.
I have continued to add below 5 bucks the past two weeks. However, after reading about the results of the MissTrusts, I believe I will hold off on anymore buying. We are in deep Voo Doo, I think, and TPG now knows it.
Maybe they can sell us for 7