SandRidge Permian Trust (NYSE:PER) is an oil and gas trust that owns royalties to wells in west Texas. Over the past two years, PER has frequently ranked among the top trusts that I follow in terms of value and I've maintained a long position. However, times are changing. While PER's share price has been on a tear, the trust's underlying fundamentals have shown consecutive weakened quarters. I'm selling my long position and this article discusses the reasons why.
As those familiar with my articles know, I analyze oil and gas trusts using a bottom-up, engineering-style model that forecasts future distributions. The forecasts are based upon a trust's historical performance, NYMEX commodity futures, trust agreement terms, and...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|
|PRO Top long ideas returned 21.7% in 2016**|