The Forensic Accountant
Research analyst, oil & gas, energy

SandRidge Mississippian Trust I: A Gamble, Not An Investment

SandRidge Mississippian Trust I (NYSE:SDT) is an oil and gas trust that receives proceeds from wells operated by SandRidge Energy, Inc. (NYSE:SD) in the Mississippian formation of northern Oklahoma. SDT recently announced its 2014-Q1 distribution at $0.426/share, and holds a robust 12-month trailing yield of nearly 30%. Touts on internet message boards have been pointing to these historical numbers and recent price declines as a reason to buy. But the only thing they are selling is misinformation. A deeper look at the numbers shows that the market may be grossly overvaluing SDT and could react substantially around several key dates.

SDT's future distributions will be significantly lower than past distributions

As those familiar with my articles...

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