So the co. has the below key stats from yahoo.
I want to know what the board stance on the Debt profile and low cash balance vs. cash flow is... and how risky the high debt load is or is not and why?
Please let me know, I am going to dd this further on my own as well and post my opinion on the debt balance, but any opinions on this vs. the current operating profile will be helpful.
Total Cash (mrq): 161.27M
Total Cash Per Share (mrq): 0.38
Total Debt (mrq): 3.45B
Total Debt/Equity (mrq): 241.47
Current Ratio (mrq): 0.70
Book Value Per Share (mrq): 3.13
HK, CLR, DVN, CHK..... on the services PDS PES... probably a bunch others I don't follow... HK a little more similar to SD in price and size but still I see your point... WRES holding up somewhat...
SD needs a break... and the overall market taking a big flush ATM
Look it up.. rather interesting... one must ask why? He got a 90M payoff from SD, not to mention all his other moneys he has had... he was very comfortable and wealthy... so why put together funding and go back to where SD is at?
Is he crazy or does he know something we do not?
a buyout is a different story... if miss lime proves to be manageable output and the acreage alone has value, not to mention the other assets they own... and you get bought out on a premium if you can prove value.
GET US GAAP EARNINGS and GAAP Net Income growth pay down debt and pay the common a dividend in 5-6 years while growing the salt water treatment slowly and MLP that in 3-4 years along with a more productive oil rich region and perhaps a pipeline for steady income.
Less BS more taking pages from Anadarko and CLR and DVN's books.
Bennett I challenge you to have an open forum for investors to discuss these opportunities in further detail... more importantly quit outspending revenues unless you can prove beyond doubt that you are successfully drilling in the shallow regions...
Continue cost cutting, look for joint ventures that will reduce the amount of capital you need to spend... and get some stable cash flows that have longer term exposure and growth for equity holders and less exposed to volatile market downtrends in the underlying commodity...
Proved reserves needs to be proven... period... no more #$%$. Let's fix this company once and for all before it is too late.
The name Sandridge is currently not trusted... make it trusted again.
Sick and tired of honest share holders getting it in the #$%$ from oil/gas conglomerates that are outspending and giving way too competitive compensation at very senior level... this needs to be looked at by activists TPG and Cooperman... Executive compensation should be performance based excessively monitored by the board considering every million matters to SD's bottom line profit.
GET ON YOUR GAME BENNETT
its postings like this that add no value to an investment decision of buying selling or holding...
If you believe its going to three short with everything you own.
just stating what we already know... oil seems to be flushing out... with SD, PBR, HERO, EXXI on top of those lists of selloffs....
This pain is unbearable. Longs know the pain, shorts might know pleasure for now..
There has been action in the biz yest with Encana buying Athl. but Athl. was performing well in Permian I believe...
Seems market is distrusting of SD and lacks hope in the silence and lack of updates... and the production proforma growth rates...
If this can really hit proforma growth of 19-23% annually that is a major accomplishment with the cost savings of 2.9MM per well or less drilled.... supposedly EURs slowly improving... and 90+ oil still yields a 60% IRR or greater....
Now, there are major problems... liquidity being the most prime concern at heavy debt load... 3x leveraged... maturities have until 2020 so we have time to fix the situation or get bought out....
A company would absolutely assume debt with a buyout if this thing starts churning off some serious oil/gas but right now it definitely appears to be pretty grim from a shareholder holding perspective and shorts seem to just be bludgeoning this and taking control... Could SD get bought out today? Sure... Will they realistically? Probably not until they prove some more accomplishments to the industry...
Could a company like BP or DVN or others buy them? Sure... will they? Maybe..
Could the leverage stop in 2016 when earnings supposedly doubles? Sure... it could slowly be dropped and drop to 1.5x leverage in 2017-2018... will it? I don't know... Does coop know? Probably not... but he thinks this is a valuation play... which often times valuation and fundamental plays can be value traps....
Does SD have some assets to sell off? Yes, but not as much as they used to...
Can they slowdown CapEx? Yes... but will they? probably not since the main goal is to get oil wells producting to increase revenues which ultimately pays down debt... which is a double edged sword to take more debt
Dear Bennett, Coop, TPG, Chang,
You are saying the stock is worth 9-15... put your money where your mouth is... cut the capex, buy back the shares, slow down your outspend and pay down and debt with everything you can... and cut the work force.
if they dont come back for years, why does it have a 52 week high of 7.4 and we are the new 52 week low but relative to the lows of last year... that means last year it was around where it was and moved to where it is now...
Historically the stock does better in q4 and q1
rather interesting article... I definitely agree SWD is undervalued and if more players show up the value will only increase...
furthermore, other interest in miss. lime small or large is a bullish indicator on SD. if SD's gamble on miss. lime ends up being desirable (again) and moreso than before I would imagine if the desire increases... SD value could really move... perhaps that is why their capex budget is not scaled back at all.
seriously... you can just see the market reaction... the fed is keeping things as they are, this gives SD the chance to turn the trend now.
Sentiment: Strong Buy
definitely a riskier short now that the company is going to reduce the float and the stock will likely be more volatile as a result of buys/sales (as soon as purchases actually go through)
BUt if you are short knowing the company can step in anytime and blow you out with 200M has got to be kind of scary.. I would rather something else that doesn't have that backing and has OVERperformed.
I am pretty sure if we meet the low end of production estimates we should be able to drastically drop those leverage ratios buds.