Why SandRidge Needs the Permian (SD)

Why SandRidge Needs the Permian

After deciding to shift the company's focus away from natural gas production, SandRidge Energy (NYSE: SD ) stated that its three-year plan was to use its Permian Basin assets to generate cash flows that would be used to fund the exploration and production of the Mississippian Lime. But the company decided instead to sell off its Permian assets, and use the proceeds to pay down debt and expedite its production schedule in the Mississippian. In this video, Motley Fool energy analyst Joel South tells us why he doesn't like the move. It leaves the company concentrated solely in the Mississippian, where SandRidge has been striking more natural gas than oil, which is something investors don't like to see at the moment. In addition, he looks at Chesapeake Energy (NYSE: CHK ) , which is taking a more cautious approach to the Mississippian, one that will employ capital more efficiently.

SandRidge will release fourth-quarter earnings on Feb. 28 and investors should be focusing on the oil content from new wells drilled the past three months. If you are unsure about the future of this emerging oil and gas junior, and are looking to find out more about its strengths and weaknesses, you should view this brand-new premium report detailing SandRidge's game plan and what to expect from the company going forward. To get started -- click here!

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Joel South owns shares of SandRidge Energy. The Motley Fool owns shares of SandRidge Mississippian Trust II and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.