In this video, Joel South describes two things investors in SandRidge need to watch:
- Oil production from its Mississippian Lime play. SandRidge sold its Permian Basin assets to fund exploration in the Mississippian Lime and to reduce its debt load -- a gamble, but one that may pay off. Watch particularly for oil production, as initial wells have yielded more natural gas than originally expected.
- The battle between CEO Tom Ward and the board. Activist investors have forced the COO out of the company and seem intent on pushing Ward out as well. This squabble could be distracting or even expensive.
Investors were startled after SandRidge plummeted when natural gas prices reached 10-year lows, but with the company focusing on growing liquids production, the future looks optimistic. 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, then check out The Motley Fool's premium research report detailing SandRidge's game plan and what to expect from the company going forward. To get started, simply click here now!