Daniel R Moore
Long only, portfolio strategy, value, research analyst

SandRidge Mississippian Trust II: PV-10 Reflects Another Mississippian Nightmare In The Making

For the second year in a row, a major revision downward in the standard measurement of reserves was recorded at the SandRidge Mississippian Trust II (NYSE:SDR). On March 14, 2014 the Trust published it 10-K report which contained an updated standardized measure of proven reserves (PV-10). The updated report showed continued deterioration in reserves due to poor well performance as reductions in valuable oil reserves were exhibited through another revision in the expected product mix going forward. As shown in the table below, the total reported net reduction in proven reserves since the IPO of the Trust in April of 2012 is 2,522 MBOE, a loss of 9.5% of the estimated reserve level at the Trust IPO.

(click...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details