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SandRidge Energy, Inc. (SD)

NYSE - NYSE Delayed Price. Currency in USD
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12.27-0.79 (-6.05%)
At close: 4:00PM EST
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  • V
    Value Finder
    Added 50% more shares to my position today. As SD has been re-activating its wells that were shut down last year due to low prices, and as it continues to minimize its costs, it is becoming a cash printing machine. $115 million in cash with no debt as of earlier this month, so that number must be a little larger today.

    People here talk about oil prices which took a hit today due to news of a new lockdown in Austria combined with the ongoing fears of a coordinated SPR release. But the latter are just fears. Even if they become a reality, they won't keep oil prices down for long. The whole fear of the SPR release will have the effect of guaranteeing OPEC+ will be sticking to their guns. Of that one can be sure.

    But I would like to finish by saying that, regardless of all the talk on this board about oil prices (and now even I have now chimed in), in the current price environment with very high NG prices, SandRidge is much more of a play on NG than it is on oil. Over 50% of its production is NG, over 30% is NGL, and only about 15% is crude oil. This quarter (Q4) should be fantastic for SD. They must be raking in cash hand over fist with current high NG prices. Yes, they have a small hedge now on NG, but it is only on 13% of their production which is still much less than most of their peers.

    The cold air will be gripping much of the country starting early next week. You can see that reflected in the popping NG price as we speak.
    Bullish
  • A
    Anonymous
    Question ? If we lost 3 or 4 oil refineries that supplies 5 states MI.,OHIO,IND. and KY. with a total of appx. 7 hundred thousand BBLS. per day out put..+or- a 100,000 bbls. what would that do to the price of Energy ?
    Oil,Gas and don't forget all the Petrochimals that they produce ..think about.
    Well here's some facts Enbridge Pipeline replacement on Line 5 is still not approved yet !
    the 2-20 in. lines that feeds all these Refineries has a life of 50 yr. in operation and they are nearly 18 yrs. passed that as we speak, layed in 1953.
    In 2018 they were hit by a boat 6 Ton (12000 lbs.) Anchor and put 3 dents in them, the tests they ran showed in spots nearly a 1/3 loss of pipe thickness.
    The Feds and state of MI. are delaying , delaying, If they would have a Rupture, they would never be approved for Replacement..see the game plan .
    Please fact check this.
  • D
    Drew C.
    Consider that SD will likely earn $3.20/share this year, and will have nearly $4/share net cash, no debt, at the end of 2021. That means that at $13.50/share, the net share price would effectively be close to $9.60 and the Enterprise Value/Earnings would be about 3.0.

    Another way of looking at it would be that 3 more years like this one would pay for the entire enterprise value of the company. That's unheard of, now or at virtually any time. Sure there may be some oil and gas stocks that trade at a PE of 3 based on next year's projections (some, not a lot). But those stocks typically have at least as much debt as market cap, taking the EV/E to 6, not 3 as with SD. And that's on NEXT years (projected) earnings, while in SD's case the EV/E of 3 would be on THIS year's earnings.

    I think that SD's share price is where it is - i.e. dirt cheap vs. financials - because the price has run up a lot this year. A lot of buyers from earlier in the year have been taking profits, saying "thanks for the nice gain", without really caring about the intrinsic value.

    In the Q1 presentation, SD said they had "at least 9 years" of productive acreage. They may have more because that's all they've explored. They may be able to buy more in the future at good prices, because the smaller producers aren't going to be able to meet the methane containment and carbon capture regulations the way that SD can. So it's easy to see that the value here stretches on for years, and that the payback of the share price can be accomplished and a lot more.

    Additionally, SD carries forward about $1 billion of past loss tax-credits (NOLs) which are likely to have substantial value, either to SD or to an acquirer. Those aren't even counted in the typical formulaic "valuations".

    In terms of technicals (charting), it appears that after SD bounced off $14.99 last Friday, the stock is taking a bit of a breather. But considering the strong fundamental value here, a breakout above $15/share sometime this year would not surprise me. OR it might take until the Q4 earnings report, after which SD will likely not only break out to the upper teens, but should challenge $20/share, IMO.
  • T
    Tim F.
    Some more bad Covid news news today, prepare for the world to end now, definitely - don’t we all know that news already that there will be more variants to come? What a surprise… By the way, NG is up today….
  • A
    Anonymous
    Wait a minute with the latest news out of D.C. about Joe's A team ...oil is going up why ??
    I thought it was going down.
  • z
    zhl889
    in case some one here wants to have more choices of oil stocks. PIPE.TO a Canadian small company is starting to buy back share on Nov 25. I have a lot of SD and PIPE.TO, both are very good companies to own for long term when WTI is above $60USD and GAS above $3USD. Both are having almost 0 debt and lots of cash. Cheers for longs!
    Bullish
  • T
    Tim F.
    CNBC just said as energy stocks are hit the most this is an overreaction and a buying opportunity. Couldn’t agree more.
    Bullish
  • T
    TruthM
    Sell off is overreacted! Just bought. Not going to see these prices for much longer.
  • G
    GAN
    Management believes the unaudited proved developed PV-10 reserve value of SandRidge's Mid-Continent assets to be approximately $413 million,(1) with an effective date of October 1, 2021, as routinely updated for the quarter from the Company's engineered year-end 2020 reserves, consistent with standard industry reserve practice, including performance and commercial updates for price differentials, operating expenses and other commercials, based on the historical trailing 12 month averages, using NYMEX strip pricing as of October 29, 2021.

    Normally PV 10 is calculated including the development costs. Here hardly there is any development taking place, infrastructure in place already.

    You need to multiply by 1.5 X this amount gives $600 mln

    Add $3 cash

    $21 per share - add NOL 1+ bln another $200 mln value

    Gl!
  • A
    Anonymous
    Buy all the good small & midcap oil stocks you can ,there's a perfect storm in the energy sector brewing.
    here in the U.S. you have the D.C. Hacks that's trying to take our energy sector apart pc. by pc. all they have to do is keep hammering the mid-stream in our oil sector like the XL- p/l and the line 5 in MI. when they cut the oil and products movement it's like cutting oil&gas production and reducing refinery output without even touching them.
    Not to speak of Europe and their energy mess... they are already looking at pulling their gas reserves below safe operating levels , so load up when you can these prices are cheap.
    Bullish
  • V
    Value Finder
    On the way back up to 52-week highs, folks! I have a feeling we are going to see a good close today with the momentum continuing throughout the afternoon. Could I be wrong? Of course. Just a feeling...
    Bullish
  • A
    Anonymous
    I just saw on the weather forecast ...that there is a huge "Energy Super Storm" brewing...
    Bullish
  • T
    Tom
    I will continue to buy and follow this down out of all my energy stocks this is my favorite one I like the fact that they have no debt and from read about energy the crisis is about do you get much worse we will be in supply deficit next year with the fact it air traffic is starting to open up this is going to be another Big plus for oil prices everyone in the industry it’s not money in what needs to be put in to keep supply levels high there are big bets right now that oil goes into the $200-$250 range sometime next year this is the pullback before the storm keep accumulating.
  • v
    vandeburgt
    They had some interesting insights about SD on (http://financialdeals.tech). Definitely made me think twice about the company.
  • T
    Tim F.
    Total BS in the last 2 days price movements
  • T
    Tom
    so Joe‘s gonna bring the price of oil down by opening up the strategic oil reserves maybe if he stop printing money that would be a start but I’m sure he has several trillion dollar new packages already to go out the door in 2022 so five and six dollar gasoline looks like a given .
  • z
    zhl889
    I loaded 10k more shares at $13. The price drop after the report was caused by profit taking. Also the whole market is going down and WTI is going down too. This stock will go back to $15 easy. There are a lot of short term investors who are trying to make a buck or two. However, this stock is going higher and higher from current price $12.80. Simply too cheap.

    To me, hedging a little bit 13% only at $4.07 is minimal and may not be a bad thing.
    Bullish
  • M
    Mike
    So...another -5% today? I am wondering how low it could go
  • V
    Value Finder
    Back in. Load up the truck.
    Bullish
  • D
    Drew C.
    SD should start putting that cash to work right now, buying back shares at $12+.
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