Shorts have been playing with sd for a while and it finally blew a load, unfortunately as most all of us know, once your out, it's gonna go back down eventually until u can reload.... ;)
Elvis Well, Woodford Wells, Mid-Miss Wells and lower G&A. Just lowering the G&A is worth $50 Million or around .10/share to EPS. At a P/E of 20, that should be good for two bucks.
The type curve on new wells is much better than what is on record.
SD has filed 26 Permits in the Permian since 7/1. Two rigs can drill that amount, previously there were 3 rigs drilling the PER which is a trust and yields far less to SD than company drilled wells. SDT is already drilled out and SDR may see a rig get dropped as well. Couple this with much better IP's on new wells and better type curves and another .10eps does not appear out of line. It's going to take a couple of quarters for this to hit the bottom line. By then NG is likely to be up, perhaps substantially.
Shorts had their fun, now its our turn. Clitto swallowed feces and urine, pretty soon she will vomit.
We had another above average volume today.
Oil price was up $2.65 and gas price was down 2 cents for January contract but still above $4.
The recent big gas wells could fetch almost $200k/month/well net on top of oil production. Adding G&A savings and lower well cost, we should see light at the end of tunnel. Looking for $7/share by the end of the week.