In the following video, Motley Fool energy analyst Joel South takes a look at the nauseating drops in SandRidge's (NYSE: SD) 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 (SDTTU) and SandRidge Mississippian Trust II (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 (CHKA.Q) hurt SandRidge even further, and he breaks down SandRidge's guidance for the coming year.
You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Why SandRidge shares took such a beating this month, punishing this energy company's shareholders.
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. 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.
Stocks Mentioned
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Related Articles
Premium Investing Services
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.