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SandRidge trusts sink after sales volumes fall short of estimates

  • SandRidge Mississippian trusts I and II (SDT; SDR) sink premarket after reporting last night that during the three-month production period ended Aug. 31, total sales volumes finished below initial Trust estimates: I, II.
  • SDT/SDR says the shortfall was due to lower oil volumes, partially offset by higher natural gas production; the production drop from the previous period mainly was driven by the completion of the drilling obligation which occurred in the previous period.
  • SDT -3.9%, SDR -5.9% premarket.
Comments (13)
  • tommye51
    , contributor
    Comments (5) | Send Message
     
    Looks like selling the permian basin assets was the wrong move. PER seems to have done better with more wells left.
    25 Oct 2013, 08:58 AM Reply Like
  • Ron Reed
    , contributor
    Comments (280) | Send Message
     
    From the inside looking out, SD and SD trusts are a sell until the issues inter company get resolved.
    25 Oct 2013, 10:33 AM Reply Like
  • buckx
    , contributor
    Comments (71) | Send Message
     
    managent of this company has been suspect for a long time.
    25 Oct 2013, 10:48 AM Reply Like
  • Bob de'Long
    , contributor
    Comments (696) | Send Message
     
    Trust are just a major financing tool for E&Ps. SD will not be able to use the tool again and it damages other E&Ps. As I type, SDR is down 15.6% today.
    25 Oct 2013, 01:47 PM Reply Like
  • zz28
    , contributor
    Comment (1) | Send Message
     
    It's like a 16 to 17 percent dividend. What more do investors want? You can always move your money into a half a percent CD.
    25 Oct 2013, 03:22 PM Reply Like
  • Douglas E. Johnston
    , contributor
    Comments (1526) | Send Message
     
    zzz
    25 Oct 2013, 04:55 PM Reply Like
  • Ron Reed
    , contributor
    Comments (280) | Send Message
     
    @zz28, While I agree that risk follows the money, mismanagement and loosing capital is much different than the asset loosing capital on its own merits.
    26 Oct 2013, 06:24 AM Reply Like
  • Douglas E. Johnston
    , contributor
    Comments (1526) | Send Message
     
    its worth $8 at best. don't touch it until the drilling programs is done and the subs have been used up.....then dist declines should make them trade cheap and "yielders" give up on them.....
    25 Oct 2013, 04:55 PM Reply Like
  • Ron Reed
    , contributor
    Comments (280) | Send Message
     
    Lets see, warnings were issued in Nov-12, Dec-12, Feb-13, Mar-13, Arp-13, Sep-13 all stating that SD was having issues with the trusts and/or having to pull resources from other projects to fund the distributions. Oddly enough SD is attempting to operate like the Fed, it just cannot print its own money to back itself. @Douglas, I concur with your statement, however I wonder if they will ever be sustainable.
    26 Oct 2013, 06:21 AM Reply Like
  • Douglas E. Johnston
    , contributor
    Comments (1526) | Send Message
     
    it does look to be a very poor set of wells with declines a lot worst than advertised ... dist may stay steady for a few more quarters (but subs go to zero) but then the big slide occurs...also, i expect SD to ramp drilling up again to finish drilling by end of year so their subs convert sooner (dec '14)
    26 Oct 2013, 03:15 PM Reply Like
  • yesouican
    , contributor
    Comment (1) | Send Message
     
    Would you recommend to bail out at a loss
    28 Oct 2013, 03:30 AM Reply Like
  • Ron Reed
    , contributor
    Comments (280) | Send Message
     
    No, I'd hang on to gain as much from the distributions as possible. Assuming another flare-up in the MENA the price of oil may strike high enough and with winter upon up the increase in the cost of NG should prop up some of the distributions enough to keep it in the 15.00 area.
    28 Oct 2013, 07:29 AM Reply Like
  • Douglas E. Johnston
    , contributor
    Comments (1526) | Send Message
     
    i see little chance of making anything over the long term. Short term u might get a kick because they will ramp up drilling into year end to complete the program but starting post Q1 '14 this will drop like a rock.....
    28 Oct 2013, 10:29 AM Reply Like
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