Daniel R Moore
Portfolio strategy, bonds, oil & gas, long-term horizon

SandRidge Permian Trust- Ugly Updated PV-10 Priced In?

SandRidge Permian Trust (NYSE:PER) provided an updated PV-10 report in its 10-K published on February 28, 2014. This article augments information provided in the on-going series of reports on the Trust performance since its IPO.

The most recent PV-10 at SandRidge Permian Trust showed a standardized measure drop from $13.39 to $11.16 per unit. When underlying production of 1,515 MBOE in 2013 is taken into account and a generally favorable product pricing compared to 2012, the downward adjustment is a harsh, but probably not totally unexpected, result by the market. A big component in the drop is shown in the graph below, a 2,192 MBOE downward adjustment in proven reserves estimated to be recoverable by the Trust. This...

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