In the following video, Motley Fool energy analyst Joel South takes a look at the nauseating drops in SandRidge's (UNKNOWN:SD.DL) share price this month. SandRidge is heavily levered to the Mississippian Shale after selling its Permian Basin assets last quarter. It started down in February after SandRidge Mississippian Trust I (NYSE:SDT) and SandRidge Mississippian Trust II (NYSE:SDR) missed distribution targets as wells continued to produce increased natural gas levels. And with natural gas prices remaining so low, natural gas plays just aren't producing the margins that the oil plays are producing at the moment. Joel also discusses why a recent sale of 425,000 acres in the Mississippian by Chesapeake Energy (NYSE:CHK) hurt SandRidge even further, and he breaks down SandRidge's guidance for the coming year.
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.