c9, are you in HK?. That TMS is a tough area to keep the hole open drilling vertical, much less 7000' of Horizontal.? I Engineered some wells in Pt Coupee Parish back in the 80's and we had collapsed casing on two wells just above that shale section. I am in for a few thousand shares, and I think Floyd wants out of there.
As a dubious long, I can only hope that they have lined up a suitor for a 7.50 buyout. Maybe Coop will jump in and match their announced buyback
They need to sell the Lariat Services bunch now, while they can still get a near dollar on the dollar. Bottom line, in my opinion, is that SD works much too hard (too many rigs and frac mobilizations)) for the paltry results they are getting for drilling and hauling frac and produced saltwater. If there is a sweet spot, which I don't believe there is, concentrate on that. Hope that is the plan when they finish their obligations to the Trusts, realize they are retaining leases that nobody wants
The fact that they are putting $200MM up to buy back common, must have put a scare in the Contract staff, which they have a ton of. Or a few floors in OKC will be empty soon.
SD has always been about enriching their employees and contract workers. The reason they floated those Trusts was to raise cash, provide work, and rid themselves of some cruddy property while they were at it. The common shareholder is still looking for a bone, which Wals St doesn't think is forthcoming.
Their 200MM dollar buyback indicates to me that there is no big sweet spot to infill drill. They will still be delineating the Miss, but Wall St is not happy.
I think the run to 7.50 was tied to the TMS/Goodrich result, and the opportunity to get in that play at a cheap price with HK. Once the bloom came off that rose, either due to less than stellar production reports around HK, or the fact that Long string casing is collapsing in some laterals, the spec money bailed out, with us backing to 5 bucks. Floyd seems tired to me. I see him selling for 8-10 bucks soon, and calling it a career.
If those production casing strings continue to collapse, due to unconsolidated rubble and shale shifting, the game is over in the TMS in those areas. Higher compressive strength Cement will not help for long. It might take a year or more to get those failures, but I think that was a problem 30 years ago on the Tuscaloosa deep vertical wells in some Louisiana parishes. That would have me concerned if I were a major shareholder. Me? I have only 1000 shares and could kick myself for not selling at 7+.
We can dream. If the GOP takes the Senate back, and Obama has a nervous breakdown over World problems, then maybe we will get a pop to 5
NG producers are in debt up to their eyeballs. There will be no shut in gas wells, at least not on purpose. Cooperman will sell his stock at 7 if he can. No more dreams of 10
Panic moves like getting in bed with the French(Alstom), and selling a profitable credit card company on the cheap, do not make Wall St happy. They have said that they will buy back shares, and have not. I am long, but not for long, if they don;t raise the divy to a buck and buy back some common. By Christmas.
Back to the mandated 65b injection for the East. Gotta fill the headline maker Northeast before the Winter.
SD has a problem. I own it, and they have sold off all of their valuable assets. (the Permian) For what? To find out that the Miss is a mess. No sustained Bottom hole pressure (BHP) anywhere. In my days as a Reservoir and Production Engineer those would have been called marginally economical wells, totally dependent on good pricing. They are just providing employment for all their friends now, on our dime. Coop will sell out I think, slowly but surely..
Converts to1055 from Roman. Probably a few guys who have been in the market from 1055 S&P500 to 1950 and think they are experts. I'll take any upgrade however.