I wonder if SD has the same thoughts I do about a secondary from them selling remaining subordinate shares ? It seems that fully diluted, by the time all the wells are drilled, distribution will be between 15 and 20 cents per quarter or 80 cents per annum. At that rate it will take over 9 years for SD to get the cash it would get for a secondary at.7.20 a share. If they haven't done this yet, why not ? Do they think production will increase instead of decrease farther down the line ? Anyone else been thinking about this ??
Not short. SD is in business to make money. They need to drill new wells to do that. Their cash flow isn't great, but they do own millions of subordinate shares. By selling some, they raise cash quickly, rather than waiting for future distributions that would take years to equal what the sale of the shares would bring in now.