Sandridge Mississippian Trust (SDT)

[ClayTrader]

* * SDT Video Chart Analysis 6-5-18 * *

Link to Video - click here to watch the technical chart video

[catdaddyrt]

Doing nicely

[catdaddyrt]

Adding more @1.45 today -hopefully - a bet on Trump imo

[catdaddyrt]

Once oil goes back up these dividends will do like wise - this summer should be much better round here - perfect storm forming in the energy sector.

[SelfMadeSociety]

Up up up we go

[catdaddyrt]

Well I saw it coming since the first of the year and even last year - and when they come out of BK after cutting most of the debt they will need 65 dollar oil to break even -50 dollar oil over the next 3 years will bankrupt the new company as well. They will emerge with a 425mm credit facility but at 50 dollar oil they will burn 119mm per year so they are betting on oil prices recovering the the next 3 yrs or they go back under.Woof woof lol

[old Mt]

So how will sdoc Bk effect the
Shares of SDT(trust for oil field income).
Sdoc did own 40%es. Of SDT
SDT did pay up 50% div. That's way down. Haha

[MikeBK205]

I think he's crying wolf now haba

[MikeBK205]

He called that one good !!

[TexasBonnie]

SDT STABLE INVESTMENT?
I want to hear from people who have been with SDT for while and still are. Is this a stable Dividend? I know you all aren't experts just wanting to know if what I am reading is real. I live in Austin, checked out the shell company etc but wanted ask in this group.

Thank you.

[catdaddyrt]

Well its pretty easy they are in serious debt, over leveraged and trading at .05 Go back and read my posts on SD board for the last 4 years and you will see the step by step mistakes that have led to their demise - I made money on SD from 6 to 11 bucks but those days are long gone- with 40 dollar oil they are sunk and oil is not coming back this year imo so when you are hanging on by a thread and burning the rope at both ends the result is obvious. Just a matter of time and they will file- they owe a hell of a lot more the 500mm -
they have been paying their preferred share holders with common stock as they do not have the money & after millions of shares of dilution they suspended the dividends completely - a lot of peeps lost big and you can bet the common's will be cancelled in the reorg. I used to like SD but I have always called it like I see it whether it's good or bad or whether anyone agrees with me. I know SD better than most around here and it's bad times for Sandridge and the flunky hedge fund clowns that took over the company a couple of years ago.

This trust is safe - thats the only good news I have for you.

[old Mt]

How do you figure BK for SDOC with $500.Mil cash on hand ,
Plus cutting cost to get though oils lows price.
I have investments in both stocks .
,DO some more D.D.
before
YOU cry WOLF

[catdaddyrt]

the parent company SDOC is almost bankrupt but this trust will continue as long as production does for years to come imo

[SelfMadeSociety]

Good company to invest in ? Heard this company was done awhile ago

[catdaddyrt]

Mike on this one the output of the existing wells is slowly diminishing over time. And the dividend revenue comes from the sale of oil which is down but this has been paying well in today's oil market. At one time they were going to keep adding a few wells to the trust along the way but the parent company SDOC is almost bankrupt so no new wells are coming..31 is a great yield I may need to take another ride here.

Date Div*
02/10/16 0.311
11/10/15 0.305
08/12/15 0.301
05/13/15 0.331
02/11/15 0.305
11/12/14 0.247
08/12/14 0.358
05/13/14 0.426
02/12/14 0.500
11/12/13 0.603
08/12/13 0.611
05/13/13 0.590
02/12/13 0.651
11/09/12 0.683
08/10/12 0.728
05/11/12 0.787
02/10/12 0.791
11/10/11 0.816
08/11/11

SandRidge Mississippian Trust I is a statutory trust. Co. holds Royalty Interests in oil and gas properties in the Mississippian formation in Alfalfa, Garfield, Grant and Woods counties in Oklahoma. The Royalty Interests entitle Co. to receive 90% of the proceeds from the sale of oil, natural gas liquids (NGL) and natural gas production attributable to SandRidge Energy, Inc.'s (Sandridge) interest in 36 wells producing at Dec. 31, 2010, and one additional well undergoing completion operations at that time, and 50% of the proceeds from the sale of oil, NGL and natural gas production attributable to SandRidge's interest in 123 development wells drilled within an area of mutual interest.

[MikeBK205]

New to investing, jw: why wouldn't everyone wanna be in a trust if they dividend pays well?

[old Mt]

Nice to get $.311 div. Share Friday

[JGaines75]

Where is everyone?

[catdaddyrt]

The dividend has held up well since I was last here - I may have to take another ride

[SPM555]

$SDT with a solid chart, testing some key resistance at the moment.

http://chartdiligence.com/sdt-testing-resistance-near-4-60-not-far-off-from-new-52-week-highs/

[catdaddyrt]

wow look at this thing go -

[catdaddyrt]

well look at the dividend history, it will continue to sink as there are no new wells being drilled to up production - as production falls the royalty based dividend falls with it. Now it was set up where more wells could be drilled but alas none have.


SD is the mother ship which is late in the 15th round and all bloody and beat up - might check that board also


When I buy SD again I will hold this for the divi as a crazy hedge over time but SD moved quick last time and I sold 2 positions for profit -

at 3.80 a .30 divi is pretty good imo -I think it has bottomed here around the 3.50 -3.80 range

[Mork1]

I'm interested. Good dividend history. Why has it gone down so long?

[catdaddyrt]

out earlier this week at 3.90 plus the divi -easy .70-- got profit early for SD so no need to hang out here anymore

[catdaddyrt]

wow -tankage

[catdaddyrt]

if this will hold till Friday I am out - geeze its been strong from 3.50

[catdaddyrt]

Wow still going up -

[catdaddyrt]

that's your call but I personally think oil has bottom out at 45 and this should be moving up slowly with oil prices but there is a limited amount of well producing in this trust and no more will be drilled so as production slowly drops off the divi will continue to shrink over time - I want to hold this for this year and that is probably it - as SD comes up with oil prices later in the summer I will sell it, collect divi here a few times and call it good -this is my insane hedge against the parent company I bought that has serious debt and management problems - having said that it is way undervalued where it is trading today(SD) - look at the divi history here and you will see that it is shrinking over time but at this PPS it's a pretty good play now- if I had paid the higher prices in the past I would be pissed right now -lol

[Flashfan08]

For a stock with this high of dividend, what's a better play... I have 0 shares right now. Should I buy in, take the dividend? Or should I wait until the price drops on the Ex Date, then buy in at a lower price and hope it goes up a few pennies?

Thanks

[catdaddyrt]

at this price this is a good dividend 8.5% for the qtr- up from last qtr.


just need 3 more like it but it is a shrinking Trust with no new wells being added

For Immediate Release



AUSTIN, Texas January 29, 2015 — SANDRIDGE MISSISSIPPIAN TRUST I (NYSE: SDT) today announced a quarterly distribution for the three-month period ended December 31, 2014 (which primarily relates to production attributable to the Trust’s interests from September 1, 2014 through November 30, 2014) of $8.5 million, or $0.3049 per unit. The Trust makes distributions on a quarterly basis approximately 60 days after the end of each quarter. The distribution is expected to occur on or before February 27, 2015 to holders of record as of the close of business on February 13, 2015.



During the three-month production period ended November 30, 2014, total sales volumes were lower than initial Trust estimates; however, sales volumes for the three-month production period were higher than the previous period due to the completion of workovers and well repairs. Net cash settlements received under the derivatives agreement for the period were approximately $2.3 million, which increased the quarterly income available for distribution to $0.3049 per unit. As no additional development wells will be drilled, the Trust’s production is expected to decline each quarter during the remainder of its life.



The Trust owns royalty interests in oil and natural gas properties in the Mississippian formation in Alfalfa, Garfield, Grant and Woods counties in Oklahoma and is entitled to receive proceeds from the sale of production attributable to the royalty interests. As described in the Trust’s filings with the Securities and Exchange Commission (the “SEC”), the amount of the quarterly distributions is expected to fluctuate from quarter to quarter, depending on the proceeds received by the Trust as a result of actual production volumes, oil and natural gas prices and the amount and timing of the Trust’s administrative expenses, among other factors. All Trust unitholders share distributions on a pro rata basis.


http://www.nasdaq.com/symbol/sdt/dividend-history

[catdaddyrt]

so far so good maybe the bottom is in

[catdaddyrt]

SandRidge Mississippian Trust I (SDT)

Median target price: $6 (69% upside)
Positive ratings: 0% of 3 analysts


Latest: Zacks | neutral | $4 | 01/05





http://www.nasdaq.com/symbol/sdt/dividend-history

[catdaddyrt]

this thing has been bleeding long before oil went down -long before - bottom 3-3.5 ???

[catdaddyrt]

another holiday in the market -no reason to expect much to happen in oil sectors other tan bleeding even though there is still a lot of drilling going on - some over reaction imo

[catdaddyrt]

Key Investment Considerations

The following are some key investment considerations related to the Underlying Properties, the royalty interests and the common units:



•
Royalty interests not burdened by operating or capital costs. The trust will not be responsible for any operating or capital costs associated with the Underlying Properties, including the costs to drill the PUD Wells. The trust will bear post-production costs, certain taxes and trust administrative expenses.




•
Exposure to oil and natural gas price volatility mitigated through December 31, 2015. Pursuant to a derivatives agreement, SandRidge will provide the trust with the benefit of certain hedging arrangements it has or will enter into with third parties. Under this arrangement, approximately 54% of the expected production and approximately 60% of the expected revenues upon which the target distributions are based from April 1, 2011 through December 31, 2015 will be hedged. These hedging arrangements should reduce commodity price risks inherent in holding interests in oil and natural gas through the fourth quarter of 2015. After the expiration of the derivatives agreement, the trust will have no additional hedges and will not have the ability to enter into any additional hedge contracts.

[catdaddyrt]

I am a gambler so I have to roll the dice


catdaddyrt Member Level Monday, 01/19/15 12:09:27 PM
Re: pete807 post# 1332
Post # of 1333

You are right, zero stability in oil prices and I bought unleaded gas at 1.65 this weekend - that's crazy good lol
Rigs are stacking, not just in the shale zones but here in West Texas also - most of the oil companies that I have friends connected with have given me reports of cut backs but no one is pulling the plug yet - a few are running business as usual and plan to do it all year - from what I can gather we have seen about a 10% reduction in drilling out here but I expect another 10% cut in the next 90 days - then maybe things will be bottomed and stabilize. Into the 2nd half of summer I think we see the momo start back up and by the end of 2015 back to wide open. We have oil & we are going to produce it - OPEC will just have to get over it. I have bought some bloody oil stocks for the long term and one of them also has a trust stock I bought along with it that pays a dividend off of royalty interests - so good luck everyone in 2015 however you play the market.


http://investorshub.advfn.com/boards/read_msg.aspx?message_id=110041858

[Pennybuster]

i agree. no doubt. there is nice potential with sandridge i'm guessing it will see further down pressure in the upcoming months but i wouldnt at all be surprised if it were trading in the 3.00's again sometime this year.

[catdaddyrt]

they are not too scared still hold a boat load

[catdaddyrt]

yes they come on strong and then settle into a consistent production rate after 8-12 months so to keep increasing production they have to drill like crazy - same thing in a NG zone about 75 miles south of where I live - can't keep numbers looking good without drilling but eventually with no drilling you will settle into a steady production rate but it will not impress the management that always wants to be pushing numbers around- I like this trust because it seems to have bottomed out and should start going up when the oil prices recover -meanwhile you get the divi

[Pennybuster]

$SD

TPG-Axon Capital Management’s 3Q14 positions (Part 11 of 11)

(Continued from Part 10)
TPG-Axon and SandRidge Energy

TPG-Axon reduced its position in SandRidge Energy (SD) during 3Q14. The stock accounts for 11.52% of the total portfolio, down from 13.88% of the fund’s 2Q14 portfolio. TPG-Axon further reduced its stake in 13D/A and 13G filings. It currently owns 32 million shares, or a 6.5% stake in SandRidge.
Hedging

SandRidge has exposure to falling oil and gas prices. The company aims to reduce oil and natural gas price risks by entering into derivative contracts, which helps it reduce commodity price volatility. SandRidge hedged more than 10 million barrels of oil at $90 a barrel and 15 billion cubic feet of gas at $450.

SandRidge expects to generate ~10% return on its wells at the $50 oil price, while current WTI is ~$48. It would be uneconomical for the company to drill at the current oil prices.
SandRidge troubled with lawsuits

Shareholders, mineral rights owners, and some of its former employees sued the company in various issues. The shareholders lawsuit addressed alleged violations of federal securities laws.
SandRidge’s turnaround

SandRidge Energy promotes itself as a turnaround story after ousting CEO Tom Ward in June 2013. The company sold Gulf of Mexico assets in January 2014 for $750 million. During his tenure in 2012, Ward purchased Gulf of Mexico offshore assets for $1.2 billion. TPG-Axon noted this move as “strategically incoherent,” as SandRidge is an onshore operator.

SandRidge Energy again shifted its focus to onshore assets with northern Oklahoma and southern Kansas’s Mississippi Lime formation. However, the company is currently facing challenges on its million-plus acres of Mississippi Lime.

According to analysts at Bernstein Research, “The top average initial production rate for a Mississippi Lime well is about 400 barrels oil equivalent per day (or boed), while wells in the Eagle Ford shale formation in Texas produce more than 1,000 boed on that same basis.”
SandRidge’s high leverage

SandRidge’s leverage ratio, or net debt to EBITDA (earnings before interest, tax, depreciation and amortization) ratio, was 3.17x. It was highest among its peers, followed by Denbury Resources (DNR) 2.70x, Chesapeake Energy Corp. (CHK) 2.03x, Anadarko Petroleum Corp. (APC) 1.23x, and Apache Corp. (APA) 1.04x.
Analyst estimates

In its January 9, 2015, report, Credit Suisse analysts noted that the risk factors associated with SandRidge are extremely high leverage, and it plans significant capex cuts in 2015. The company’s cuts in spending are expected to limit cash flow and production growth, leading to overall underperformance.

According to Wunderlich Securities analyst Jason A. Wangler, “The low oil price environment…SandRidge’s high debt level, declining liquidity position, and difficult economics cause us to believe there remains downside to the story.”

https://finance.yahoo.com/news/sandridge-energy-turnaround-successful-175501643.html


https://finance.yahoo.com/news/overview-sandridge-energy-155501764.html

[DocLevi]

I think the problem lies with life of well production... it drops-off too quickly in a year. (While I saw today somewhere, (Argent Energy Trust) that eagleford drop was a low 15% after first year... WOW...

[old Mt]

SandRidge Mississippian Trust I (The Trust) is a statutory trust. The Trust was created to acquire and hold the Royalty Interests for the benefit of Trust unitholders. SandRidge conveyed to the Trust the Royalty Interests in specified oil and natural gas properties in the Mississippian formation in Alfalfa, Garfield, Grant, Major and Woods counties in Oklahoma (the Underlying Properties). These Royalty Interests were derived from SandRidge's interests in a 36 wells and the equivalent of 123 horizontal development wells to be drilled in the Mississippian formation (Trust Development Wells) within an area of mutual interest (AMI), consisting of approximately 49,600 gross acres (42,000 net acres) in the counties where the Underlying Properties are located.

[old Mt]

I feel your pain I started buying this stock at$35. And working my way down, if my old mind ,remembers correct this sdt stock (is from SD stock profit ) ,off lease land royalties on a give area and they where drilling 24? 27 wells , that is done so PPS is on production and crude $.
If your after the Div. / your going to have to buy more stock

[jellis]

It's bad ... unbelievable. I can't find out why. Producing less oil? Also crude lower. They will probably cut distribution?

[NathanH]

This is the saddest pos I've ever seen lol

[jellis]

Yes. But maybe not from here.

[MSX]

Why is this board dead? Can this go any lower?

[Pamoo]

It's bottomed unless some very bad news pops up out of nowhere.

[sanbrunobaby]

I think becasue of perceived negative operating trends, and valuations based solely on current price of oil scaresome off this stock. Since I think oil price wil trend upwards next 10 years, I believe this will offset any operating difficulties. I could be wrong,I havent studied their operating results.

[sanbrunobaby]

Seems market has absorbed their recent perceived difficulties, and valueing without consideration of where oli might be 2 to 4 years from now.A definite buy for longer term investor.