I remember from the call an analyst asked Ward a question of when there could be another Trust and Ward said by this summer as they would need to complete more wells for a new trust. I think they would have to have a certain number of wells online to be producing enough oil revenue to form the trust. Of course the Summer officially begins June 20th or so which is less then 6 weeks away!
Thanks Scott and Payam,
I thought I had heard about some NEW Trusts and JV's. 3 more SDT trusts at $335 million each would go a long way towards Capex or Debt, huh? That would "burn up" less than 150K acres of our leases and WE would get about 40% back in revenues over time, too! What's not to like about that? Did you guys ever notice that when the "bashers" get going the stock starts to move,..UP? LMAO,..all JMHO
we must take care of debt or we will see more of this shet, JV / trust / SPO... too much debt can eat the best company alive if it's not attended to promptly... after the earnings call i feel ward understands this and will give us more info very soon...
Oil price hedging takes care of the debt risk to some extent by locking in a stable profit margin on oil sales. That generates steady predictable cash flow which is used for debt service. That's why Ward has to hedge oil & gas production. If he can get debt levels down, SD could go more unhedged and take more advantage of the upside in oil prices.
he was just on cnbc and named some american oil stocks. not sd. he got his pump mixed up with his dump, maybe...
if you are a holder and read the yearly report book, you know they are holding all their natgas in reserve, along with the oil reserve, until the price on it goes up and selling the oil now.
its all in the report...that changes up the picture.
Read why its downgrading it. due to the expanded capex which causes not much revenue and stagnant growth compared to last year but in reality they replaced significant natgas with oil production so there has been enormous growth to almost completely replace one product with another.
Agree, number crunchers at Street.com are exactly that, number crunchers who totally ignore variables such as the transition from NatGas to Oil and with SDT already trading, Ward has shown he can monetize assets anytime he needs/wants to for capex going forward.
Thestreet analysts/number cruncherstotally ignore the assets and production going forward. STOCKs price based on EXPECTAIONs looking forward, not dismal backward looking forensic financials.
I hear you and that's how I understand it.
But it is difficult to sort out what's useful info and what's not these days. With the plethora of information and commentary available in the mediasphere nowadays we still cannot really believe anything. My personal theory is that most everything we are told and sold is a big lie and the remainder is largely ignorant and mistaken incompetence.
this is puzzling isn't it? On Friday's show he said to buy some SD on Monday.
this is so typical of Wall Street, every possible opinion for every possible scenario except when everyone agrees to all be wrong at the same time.