In this video, Motley Fool energy analyst Joel South describes the opportunities that SandRidge Energy (UNKNOWN:SD.DL) enjoys. Its Mississippian Lime play is producing healthily and at lower drilling costs than other oil plays. Building its own saltwater disposal system doesn't hurt earnings, either. SandRidge also has cut its leverage in half and funded drilling through 2014 with the sale of its Permian Basin assets. Also, the company sells at a discount, trading at low multiples and under its net asset value. Production from the Mississippian Lime doubled in 2012, so with all the assets and drilling activity SandRidge is engaged in, production growth should continue.

Joel South owns shares of SandRidge Energy. The Motley Fool has no position in any of the stocks mentioned. 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.