Oil and Gas price/ Sandridge stock

[Dally1up]

Anyone know if they truly have their current production hedged (forward contracted) and for how long?
Will they survive?

 

[poke2001]

I heard some talk today that made it sound like Sandridge was in trouble but it was time to start putting some money back into their peers...just don't touch Sandridge.
Posted from Rivals Mobile

 

[Pokes15]

They are basically just a one trick pony now. I can't see their stock going anywhere with what little they have left in their portfolio.

 

[irish_poke]

I'm pretty sure they have most of their rigs in the Mississippi Lime in Northern Oklahoma and Southern Kansas. Its expensive to pull oil out of that formation. Their COO Steve Lawler who is Doug Lawlers brother (Chesapeakes CEO) left to go to BP. I'm sure if he left it was because he figured it was a sinking ship and there is no turning it around. I know they spent a lot of money of things they didn't need. At one point they had 4 private planes unnecessary for a company their size.

 

[ells2090]

To answer your hedging question, based on their volumes hedged in their Q3 investor presentation, they look to have about 60% of their liquids production hedged in 2015. About half of that hedge volume are swaps and protected at 92.44, but they'll take a hit on the 3 way collars with the put options at 76.56. Most companies have not done a lot of hedging for 2016.

On the hedging front, Continental will be interesting next year since they sold their entire hedge book.On the other side, NFX and PXD are heavily hedged for oil (near $90) so they should see a positive impact.

 

[foo98]

Yeah Lawler leaving was not a good sign for SD.

 

[OSUIvan]

Originally posted by irish_poke:
I'm pretty sure they have most of their rigs in the Mississippi Lime in Northern Oklahoma and Southern Kansas. Its expensive to pull oil out of that formation. Their COO Steve Lawler who is Doug Lawlers brother (Chesapeakes CEO) left to go to BP. I'm sure if he left it was because he figured it was a sinking ship and there is no turning it around. I know they spent a lot of money of things they didn't need. At one point they had 4 private planes unnecessary for a company their size.

Sounds like Williams before their crash.

 

[ells2090]

Originally posted by OSUIvan:

Originally posted by irish_poke:
I'm pretty sure they have most of their rigs in the Mississippi Lime in Northern Oklahoma and Southern Kansas. Its expensive to pull oil out of that formation. Their COO Steve Lawler who is Doug Lawlers brother (Chesapeakes CEO) left to go to BP. I'm sure if he left it was because he figured it was a sinking ship and there is no turning it around. I know they spent a lot of money of things they didn't need. At one point they had 4 private planes unnecessary for a company their size.

Sounds like Williams before their crash.

I think Williams had more than 10 planes at one point

 

[Marshal Jim Duncan]

Williams had greater justification for some jets, given their business. Their crash was caused almost entirely by their energy trading unit and Williams Communcations.

This post was edited on 12/20 8:12 AM by Marshal Jim Duncan

 

[purkey]

the company aircraft have very little to do with the cash flow...it is more poor decisions on other matters. When things do go wrong, the aircraft are always the first to go. Tax play keeps things rocking for aircraft owners...as long as you're making money. You can buy a new $8 million aircraft before the end of the year and you can get $4 million in depreciation for owing it 2 weeks. Sandridge is down to 1 aircraft and own a share of 1 with Netjet.

 

[osuja]

What caught my eye was the negative 4 billion in retained earnings reflected on the balance sheet. How do they make their way out of that one?

 

[pokefan24/7]

Originally posted by irish_poke:
I'm pretty sure they have most of their rigs in the Mississippi Lime in Northern Oklahoma and Southern Kansas. Its expensive to pull oil out of that formation. Their COO Steve Lawler who is Doug Lawlers brother (Chesapeakes CEO) left to go to BP. I'm sure if he left it was because he figured it was a sinking ship and there is no turning it around. I know they spent a lot of money of things they didn't need. At one point they had 4 private planes unnecessary for a company their size.

His name is Dave Lawler and is a good friend of mine. I know he got a great offer from BP which was more of his reason for leaving than the state that Sandridge is in. They even allow him to commute from Arcadia to Houston and work with him on his schedule.

The Sandridge people seem to think thay are okay for now, but who knows.

 

[Pokes15]

Originally posted by pokefan24/7:

Originally posted by irish_poke:
I'm pretty sure they have most of their rigs in the Mississippi Lime in Northern Oklahoma and Southern Kansas. Its expensive to pull oil out of that formation. Their COO Steve Lawler who is Doug Lawlers brother (Chesapeakes CEO) left to go to BP. I'm sure if he left it was because he figured it was a sinking ship and there is no turning it around. I know they spent a lot of money of things they didn't need. At one point they had 4 private planes unnecessary for a company their size.

His name is Dave Lawler and is a good friend of mine. I know he got a great offer from BP which was more of his reason for leaving than the state that Sandridge is in. They even allow him to commute from Arcadia to Houston and work with him on his schedule.

The Sandridge people seem to think thay are okay for now, but who knows.

I don't know either of the Lawlers personally, but Doug spoke at Oklahoma Energy Explorers several months back and he seemed like a kind of guy that anyone would want to work for. Seems to be doing good things at CHK.

 

[pokefan24/7]

Originally posted by Pokes15:

Originally posted by pokefan24/7:

Originally posted by irish_poke:
I'm pretty sure they have most of their rigs in the Mississippi Lime in Northern Oklahoma and Southern Kansas. Its expensive to pull oil out of that formation. Their COO Steve Lawler who is Doug Lawlers brother (Chesapeakes CEO) left to go to BP. I'm sure if he left it was because he figured it was a sinking ship and there is no turning it around. I know they spent a lot of money of things they didn't need. At one point they had 4 private planes unnecessary for a company their size.

His name is Dave Lawler and is a good friend of mine. I know he got a great offer from BP which was more of his reason for leaving than the state that Sandridge is in. They even allow him to commute from Arcadia to Houston and work with him on his schedule.

The Sandridge people seem to think thay are okay for now, but who knows.

I don't know either of the Lawlers personally, but Doug spoke at Oklahoma Energy Explorers several months back and he seemed like a kind of guy that anyone would want to work for. Seems to be doing good things at CHK.

Dave is a great guy himself. Played football at Colorado School of Mines. Got to love that.

 

[Dally1up]

Originally posted by irish_poke:
I'm pretty sure they have most of their rigs in the Mississippi Lime in Northern Oklahoma and Southern Kansas. Its expensive to pull oil out of that formation. Their COO Steve Lawler who is Doug Lawlers brother (Chesapeakes CEO) left to go to BP. I'm sure if he left it was because he figured it was a sinking ship and there is no turning it around. I know they spent a lot of money of things they didn't need. At one point they had 4 private planes unnecessary for a company their size.

Everything you hear and read states that the Mississippi Lime play has some of the lowest horizontal drilling costs in the Nation and some would say under half the cost of that of the actual shales in TX , ND, MT, etc.

 

[Pokes15]

Originally posted by Dally1up:

Originally posted by irish_poke:
I'm pretty sure they have most of their rigs in the Mississippi Lime in Northern Oklahoma and Southern Kansas. Its expensive to pull oil out of that formation. Their COO Steve Lawler who is Doug Lawlers brother (Chesapeakes CEO) left to go to BP. I'm sure if he left it was because he figured it was a sinking ship and there is no turning it around. I know they spent a lot of money of things they didn't need. At one point they had 4 private planes unnecessary for a company their size.

Everything you hear and read states that the Mississippi Lime play has some of the lowest horizontal drilling costs in the Nation and some would say under half the cost of that of the actual shales in TX , ND, MT, etc.

What you don't read about is the very steep decline rates, insane amounts of produced water, and gas quality issues.

 

[parlayn_poke]

Originally posted by Dally1up:

Originally posted by irish_poke:
I'm pretty sure they have most of their rigs in the Mississippi Lime in Northern Oklahoma and Southern Kansas. Its expensive to pull oil out of that formation. Their COO Steve Lawler who is Doug Lawlers brother (Chesapeakes CEO) left to go to BP. I'm sure if he left it was because he figured it was a sinking ship and there is no turning it around. I know they spent a lot of money of things they didn't need. At one point they had 4 private planes unnecessary for a company their size.

Everything you hear and read states that the Mississippi Lime play has some of the lowest horizontal drilling costs in the Nation and some would say under half the cost of that of the actual shales in TX , ND, MT, etc.

I could rent a Ditch Witch and drill a horizontal "well" for much cheaper than someone could drill a Miss Lime well... Doesn't mean its a better investment.