Even a major with a ton of cash on its balance sheet is not going to buy SD because the cost of the proven reserves are too high. In short, not only would a major be spending cash, but they would also be raising the average cost of their proven reserves, something stockholders of major would not like to see. The only motivating factor would be if price of crude and nat gas go materially higher with speculation that a solid upward trend was in place for the longer term. With a stagnant global economy, I don't see any "booms" in the commodity space.
I see no buyouts. I just can't look at a stock in that way. If nat gas inventories become critical, we might see refining/marketing companies decide to integrate vertically, however, "vertical integration" has been a no-no in the past because the value of company gets assessed based (held down) by the worst performing business area (E&P vs refining/marketing). Anyone buying SD has to believe in the Miss and the production efficiencies that lay within. Frankly, I don't see SD as a grand-buy for anyone.
Clearly, SD is moving toward the point where they will have the choice of using cash flows for capex (growth) or to pay down debt. The world changes tremendously for SD shareholders when that point is reached. Looking at static data (balance sheet) without seeing the dynamics for the direction of pro forma data (discounted cash flows), you will miss good growth investments opportunities every time.
~$3.25 of debt for each $1 of equity, not that bad for a growth company. The direction of this function is improving materially each quarter.
If you are not selling today, that means you are a buyer. Every day that you don't sell, you are essentially buying at the current price. With that said, I think SD will trade down again in the 5's this year, but I also think it will pass-thru $7.50 on the highs.
I thought the CC was handled very well and everyone was prepared. Short and to the point, almost exactly 1 hour in duration.
SD is moving closer to its investors. Ya gotta think "discounted cash flow", spend now for the future streams of cash flow (production). The average payout on these wells is under a year, then you have 10 (or more)years of almost free cash flow.
Ouch! Hope this is not the reaction to SD earnings. Domestic independents seem to be plagued by debt. The high cost of growth seems to be another concern.
There won't be any surprises with tomorrow's earnings release. SD is a growing herd of cows giving more milk. You can get to how many cows are giving milk and how much milk is bringing in the market on the back of a cocktail napkin. If you are expecting a surprise you must not be following this company very closely.
Anyone who supports Hillary is a small-minded feral liberal who was also a token student council weenie that rode the short-bus to and from school who gains sexual gratification by telling other low-inbred idiots what to do.