Sandridge Energy Inc (SD)

[DT597]

[STOCK PROF]

Hello financial reports! !!

[brandemarcus]

ot-I am glad you are satisfied about syncora- I am not-it should be three or four times the price it is trading. This run up should have happened months ago.
The market is frustrating! So on the sycrf board there was a post by "Slim Charles" to add to Bunk Moreland (WIRE-HBO). Completing the Baltimore connection -James Mcnulty one of the protagonists in the show tries to impress a women by claiming that he works for Legg Mason not his actual job as Baltimore Police Detective. I wonder if Legg mason is done with sycrf -perhaps they have some pfd and are hedging with a small short position in the common.

As for sandridge, it was a risk worth taking. Same for allied nevada, atna resources which also went bankrupt before the turn in gold. Gss, ntcpf , usapf have gone up more than 5 fold from their bottoms. They may go down in the short term but will probably go up 5 fold more at least. If you didn't tell me about Sandridge - I would not have found out about Swift energy. I am involved in that plus trusts hgt and royt. When those move , hopefully the uranium's will be asleep or the penny agricultural stuff. I did not have that much krltf when it moved -but perhaps still undervalued.
Now the sycrf profits after it's true value is hit will be parked back in Gse's ( talk about a long wait!). Thanks for the post. Let's find another place before the board is gone!
I am not in "the market" in regular stocks as I have no special advantage. Perhaps I will buy bac or gnw if we are lucky enough that the gses' and sycrf reach their value.

[betahighlander]

Brand- are you in the market. Sandridge has gone toast unfortunately. syncora has had some goood news and PPS action lately.

[Renee]

SDRXP changed to SDRPQ, bankruptcy:

http://otce.finra.org/DLSymbolNameChanges

[willlbone]

SANDRIDGE chap 11. Toxic

[IronMan123]

This will settle-out. Panic selling by all the people that just found these and drove the prices up so high over the last couple of weeks. I said on the commons board weeks ago that these would go under $1.

I am buying, adding, a few at these prices. I can wait till the final verdict is in.

[brandemarcus]

I lost 60% in just one day according to mr market. Even though the price is 30 cents for sdrxn , you can't buy at 1.1. My broker won't allow me to offer a higher price. Now way back in 2010 -2012 Prem Watsa was involved with some of the pfd shares. Based on the volume traded sdrxp or sdrxn , I think he is trapped in the position.
Of course they have never heard of the pfd on the common board, so the topic is how he dumped the common.

[betahighlander]

The good news is i cannot lose any more than twice what i lost today!!

Down 33% is rough. Still in my position!!!

Actually that was wayy to negative- gallows humour and all that.

The problem is the company really cannot in come out and say any positive developements or they would kill any deal in the works. They gotta wait till the deal is done.

[betahighlander]

this is going to be an epic fail or success.

Cheasapeake is doing well. heck they are mostly in gas.
probably not as leveraged. Still

[betahighlander]

Shares took a beating after that Rueters article last night.
Tried to pick up 6K in my 401K but BMO really sucks. they are so busy trying to screw me on the margin they missed the buy
my by was over the ask and the shits could not fill.

BMO has to be the worst stock manager if the entire pension field.

[brandemarcus]

We may soon find out whether the Roi will be negative or positive?

[betahighlander]

i cannot buy the N shares with Scottrade. or my 401K
and you are right. if you buy you buy for life/ redemption/dividend.
You will most likely never be able to sell without a severe beating.
Good ROI though

[brandemarcus]

If you think the spread is bad on the p shares , how about those n shares?
You can wait around for a fill at 1.3 but then maybe you might get 85 cents if you sell. Other than liquidity I can't see the big difference between the two(little higher dividend) Lets put a value of 2 average on the 5.5 million total shares (r and n) so about 11 million is the total value of the pfd with the common now worth over 50 million. Well trading sardines vs eating sardine cans!

[betahighlander]

Losses professional, financial, and personal are pretty large. here.
I have reached the i do not give a ---- point in the last year.
slowly getting together.
Lets face it SDRXP is the equivalent of shooting the Moon in the game of hearts.
I spent so many years cautiously building a future for my family. (well more cautious than i am now)
Now that the family thing is imploding and i have lost half or more through that process.
What to the poker players call it. "Tilt" i think is the expression.

[brandemarcus]

Losses from the 5 year commodities bear market(waiting on the gse's & sycrf) have turned me into a coward. I needed to be a coward in 2011-riches will be made by the Soros-"go for the jugular attitude" if this is the inflection point!

[betahighlander]

I am not sure lacking at least a modicum of risk aversion is something to envy.
It has gotten me in lots of trouble in the past.

SDRXP- and SD are deep into the speculative continuim.

[brandemarcus]

I wish I had your nerves. I have some pfds and a little common with the house money I made from crc a week ago. If we get lucky will roll that into sfywq, tck, royt and of course more gse's and sycrf. I am still thinking Prema has a fall back position in the bonds and the actual value in equity is just a natural hedge to his already big position in deflation derivatives. I agree the risk reward is still favorable for a position even if the chances of 0 are quite high. I hope I will be kicking myself for lack of guts a week from now!

[betahighlander]

Sandridge is the topic-
sold krn and putting profits into Sandridge pfs.

[brandemarcus]

Hope your right- Then they will kick us off the board for ot content. I think you gave your email on the common board for that possibility.

ot-Congratulations on krn- I sold some to buy ipi. Speculative as other people and they have warned of bankruptcy. Still look at the price sales plus enterprise value etc. Stock from 60 (2008) to .65 a few weeks ago-now 1.29.

ot- Here is book investment that I will send your way. Always Something to Do - about Canadian value investor Peter Cundhill. Forward and one chapter is about and by some guy named Prema Watsa. You can also read- Watsa's annual letters at Fairfax Holdings. He considers social media a bubble and made a considerable return in 2007 with credit default swaps.

[betahighlander]

Karnolyte- has some news. first Q- restatement then announcement of load deal to start mine production.
PPS moving.
Sandridge will be a similar sleeper - then Boom

[ars_2014]

Yes, agreed. I would ONLY bid, never buying on the ask.

[betahighlander]

Read Brand's note of caution- I really should have made that more clear.
"IF' is real, and we are talking real money, so be Please be careful.
Again pfds not for short term the MM is killing people with the spread. I think he has kept people away. NO one likes to get screwed. the spread is ridiculous. I at at bid or something reasonable. i you buy the ask the mm then drops the price. a piece of work

[brandemarcus]

I think there are two issues of pfd though ,that's where i am thinking 5 million total.

[brandemarcus]

I bet Watsa has a much larger position in the bonds than in the common stock. What this may mean for the future I don't know?

[ars_2014]

Gotcha, I read that it has less than 3m shares outstanding.

http://www.quantumonline.com/search.cfm

[brandemarcus]

Unlike Beta, I am not entirely convinced that the common or even pfd survives. The interesting thing is there are only 5 million shares of pfd(or so I remember when I looked at the 10K). Let's value the pfd at 2 that makes the pfd worth 10 million. Now go look at the market cap (28-36 million from memory?)for the common. If you are a trader then you want to own common to flip back and forth, but the value and better risk reward is clearly the pfd.

[ars_2014]

Thanks bud - I'd prefer the pdf than commons in the energy sector. Having said that, I will buy a small position hoping for $100 one day...lol!!!

Wondering if Carlyle(biggest holder) owns these pdf?

Thanks again for the info.

[betahighlander]

These are cumulative pfd. see quantum notes and link below.
i think but would like confermation that if the miss 3 semi annual payments the interest rate goes up 1% and (maybe) they get two seats on BOD. Anyone please confirm as was hard to read.
Also this can be PIK or paid in kind (common) but they decided not too as share price was too low. If BK was anticipated they just would have paid the PIK divi. Management is still trying to preserve shareholder value.
So if BK is out and divi returns next winter. these shares are worth 50 times the current share price. with a great divi percentage.
So if you think company survives, this makes a nice piece of your long term investment strategy. Common is definately a good value, but pfds good for portion that is long term.


SandRidge Energy, 8.50% Convertible Perpetual Preferred Stock
Ticker Symbol: SDRXP CUSIP: 80007P406 Exchange: OTOTC
Security Type: Traditional Convertible Preferred Stock
Security's Distribution is Suspended!
QUANTUMONLINE.COM SECURITY DESCRIPTION: SandRidge Energy, 8.50% Convertible Perpetual Preferred Stock, liquidation preference $100 per share, not redeemable at the issuer's option at any time, and with no stated maturity. Cumulative distributions of 8.50% ($8.50) per annum paid in cash or common stock are paid quarterly on 2/15 & 8/15 to holders of record on the record date fixed by the board (NOTE: the ex-dividend date is at least 2 business days prior to the record date). Dividends paid by the preferred are eligible prior to 1/1/2011 for the 15% tax rate on dividends under normal holding restrictions and are also eligible for the dividends received deduction for corporate holders. The preferred shares are convertible any time at the holder's option into 12.4805 common shares of SandRidge Energy Inc. (NYSE: SD), an initial conversion price of $8.0125 per common share. On or after 2/20/2014, if the price of the common stock exceeds 130% of the conversion price for 20 of any 30 consecutive trading days, the company may, at their option, cause the preferred shares to be converted into common shares at the then prevailing conversion price. Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders. In regard to the payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the convertible preferred stock and the conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.
Stock
Exchange Cpn Rate
Ann Amt LiqPref
CallPrice Call Date
Matur Date Moodys/S&P
Dated Conv Shrs
Conv Price Distribution Dates 15%
Tax Rate
OTOTC
Chart 8.50%
$8.5 $100.00
n.a. 2/20/2014
None Caa3 / NR
12/17/15 12.4805
$8.0125 Suspended!
2/15 & 8/15
Click for MW ExDiv Date
Click for Yahoo ExDiv Date
Yes

Goto Parent Company's Record (SDOC)
Notes: January 8, 2016 -- SandRidge Energy, Inc (OTC PINK: SDOC) today announced that its Board of Directors has decided to suspend payment of the $4.25 per share semi-annual dividend on shares of its 8.5% Convertible Perpetual Preferred Stock. The dividend suspension follows the prior suspension of dividend payments on shares of the Company’s 7.0% Convertible Perpetual Preferred Stock announced on September 28, 2015 and reflects the Company’s continued focus on preservation of liquidity, prudent capital allocation and support of long-term enterprise value. The Company has 2,650,000 shares of 8.5% Convertible Perpetual Preferred Stock outstanding and will continue to re-evaluate the dividend payment policy on a semi-annual basis
IPO - 1/21/2009 - 2.25 Million Shares @ $100.00/share. Link to IPO Prospectus

http://www.quantumonline.com/search.cfm

[ars_2014]

What's the deal with these pfd? I heard the dividends are suspended, so is there any value to own these shares? Any helpful information is appreciated. Thanks

[betahighlander]

Chile sounds good. something new.
Costa Rica was with my currently estranged. We have been going there since 1998- lots of memories there.
anyway. This looks good.
not so liquid. but Woot Woot.
i have about over 40K between accounts. so good to be up!
As you know this has a face value of $100 and a PIK suspended dividend of 8.50%
So this could allow me to have an extended stay in Chile.
You will have to visit.
Your are the West Coast as i remember.
costa rica is an easy jump from there.

[brandemarcus]

You seem to be having a pretty good day! Maybe soon you may tell me about Costa Rica. I would prefer Chile my self.

[betahighlander]

i have a small tracker amount of SDR- unfortunatly the divi is a pain for tax purposes.
i would suggest only owning them in tax dfd unless your are doing your taxes late anyway.
But not worth the hassle.
I think i would advise selling prior to ex divi and then buy back
i would have made out better as well.

[brandemarcus]

Hope the cash and the bargaining skills will get the common and even better pfd something like what swift energy got. After (if?) these go up 30 fold- you should check to see what the royalty trusts are doing. Or perhaps you should just take over sycrf. ot- difference in value between pfd and common further evidence of the lack of value sense in the pricing of sycrf........and so many others? Well I will never get rid of my blood pressure medicine !

[betahighlander]

i am a sucker for undervalued pfds. i think because i put the potential value at full face value. where with common i am more conservative.
I also like the idea of getting a rich dividend someday and not realizing the capital gains.
30K plus 12k in tax defferred. Will sell the tax pfd first
30k at $100 face- 8.5% dividend. Well you can imagine that would free me up a bit.

Pipedream maybe, we will see

[betahighlander]

i am a sucker for undervalued pfds. i think because i put the potential value at full face value. where with common i am more conservative.
I also like the idea of getting a rich dividend someday and not realizing the capital gains.
30K plus 12k in tax defferred. Will sell the tax pfd first
30k at $100 face- 8.5% dividend. Well you can imagine that would free me up a bit.

Pipedream maybe, we will see

[brandemarcus]

pfds are like those $50 pfds for the gse's(hidden value but no liquidity). Dumped a small position in common(see how brilliant a trader I am!) to buy these pfds. ot-When reading boards, I read about swift which already declared bk. Common supposed to get 4 % plus options. Averaging down in crc,hgt and looking at royt. The last two are trusts which will lag the others. They have no debt but will liquidate if no recovery in two to three years.

[betahighlander]

Water is still good- R U thinking of jumping in?
as you said bonds are about 6 cents on the dollar, pfds are less than 1 cent on the dollar with 8% cumulative. heck one payment of PIK and you have 8x.
"if" the company survives this will be an extremly good payout.
Prem Watsa would do pretty goood with his commons should this workout.
I would not be surprised if he was buying Bonds. mkt cap for pfds probably too small a pond for him only 4 million shares out there.

Just think how well he would do if they this debt restructure happens!
Added more pfd today. I posted a response earlier then realized it was on the common board, so i quickly edited it.

[brandemarcus]

Well beta, for what less than 8 million value of pfd. one can control 400 million boe. Less than the value of 20 million for the common , one can get security that's supposed to be ahead of the common. I know upside capped at 150 times value. I have heard that gse song before!

[stocktrademan]

$SDRXP recent news/filings

bearish 6.40

## source: finance.yahoo.com

no recent news found
*********************************************************

$SDRXP charts

basic chart ## source: stockcharts.com



basic chart ## source: stockscores.com



big daily chart ## source: stockcharts.com



big weekly chart ## source: stockcharts.com



$SDRXP company information

## source: otcmarkets.com

Link: http://www.otcmarkets.com/stock/SDRXP/company-info
Ticker: $SDRXP
OTC Market Place: OTC Pink Current
CIK code: 0001349436
Company name: Sandridge Energy, Inc.
Company website: http://www.snsenergy.com/
Incorporated In: DE, USA


$SDRXP share structure

## source: otcmarkets.com

Market Value: Not Available
Shares Outstanding: Not Available
Float: Not Available
Authorized Shares: Not Available
Par Value: No Par Value

$SDRXP extra dd links

Company name: Sandridge Energy, Inc.
Company website: http://www.snsenergy.com/

## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=SDRXP+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=SDRXP+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=SDRXP+Industry

## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/SDRXP/news - http://finance.yahoo.com/q/h?s=SDRXP+Headlines

## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/SDRXP/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/SDRXP/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=SDRXP+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/SDRXP
DTCC (dtcc.com): http://search2.dtcc.com/?q=Sandridge+Energy%2C+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Sandridge+Energy%2C+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Sandridge+Energy%2C+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.snsenergy.com/
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.snsenergy.com/#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.snsenergy.com/

## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/SDRXP
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001349436&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/SDRXP/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/SDRXP/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=SDRXP&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=SDRXP
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/SDRXP/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=SDRXP+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=SDRXP+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=SDRXP
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=SDRXP
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=SDRXP+Cash+Flow&annual

## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/SDRXP/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=SDRXP+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/SDRXP.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=SDRXP
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/SDRXP/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/SDRXP/insider-transactions

## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/SDRXP
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/SDRXP
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/SDRXP:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=SDRXP
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=SDRXP



$SDRXP DD Notes ~ http://www.ddnotesmaker.com/SDRXP

[betahighlander]

http://www.marketwatch.com/story/sandridge-energy-inc-announces-affirmed-500-million-borrowing-base-and-amendment-of-senior-credit-facility-2015-10-19

SandRidge Energy, Inc. Announces Affirmed $500 Million Borrowing Base and Amendment of Senior Credit Facility
Published: Oct 19, 2015 7:30 a.m. ET


OKLAHOMA CITY, Oct. 19, 2015 /PRNewswire/ -- SandRidge Energy, Inc. (the "Company") SD, +4.91% today announced that, in connection with a regularly scheduled redetermination, its lenders have affirmed the $500 million borrowing base under its senior secured credit facility. In addition, the credit agreement was amended to increase from $200 million to $275 million a basket available to the Company for the cash repurchase of senior unsecured notes.

About SandRidge Energy, Inc.

SandRidge Energy, Inc. SD, +4.91% is an oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma with its principal focus on developing high-return, growth-oriented projects in the Mid-Continent region of the United States. In addition, SandRidge owns and operates a saltwater gathering and disposal system and a drilling rig and related oil field services business.

[betahighlander]

up in pre market to like .39

[betahighlander]

pfd - hammered today down 34% - no news that i can see. not even much volume
???????? buy opportunity or sell panic.

[56Chevy]

Sandridge Energy, In (SDRXP)
$21.25 down -0.92 (-4.15%)
Volume: 6,444

CL\N15 Light Sweet Crude at this moment; $51.91

SD common equity 10am pps @ $0.70

EUR/USD
1.09421

*This was "Greek" week.

**China is waning...and far more serious.

[56Chevy]

Sandridge Energy, In (SDRXP)
$30.75 up 0.25 (0.82%)
Volume: 3,711

*SDRXP shares up 21% in a month.

CL\N15 Light Sweet Crude at this moment; $60.43

SD common equity closed today @ $1.09

EUR/USD
1.13644

[56Chevy]

Saudi Arabia Turns Down Chinese Requests For More Crude Oil

Posted by: : Paul Ebeling Posted on: May 20, 2015

Research found Saudi Arabia’s share of Chinese Crude Oil imports dropped to just over 30% in May from 36.5% in April

Saudi Arabia and its main Middle East OPEC partners are turning down Chinese requests for more Crude Oil as they hold back fuel for their own refineries just as demand from the world’s biggest Crude importer hits new records.

While the Saudi and other refusals for additional Crude Oil supplies may not be part of a new pricing strategy, the rejections to their biggest client help explain a 40% rise in prices this year as Chinese importers have had to seek more Crude Oil from other suppliers in what analysts say is still an oversupplied market.

Senior Chinese Oil traders say the Saudis have turned down requests from Chinaoil and Unipec, the respective trading arms of PetroChina (NYSE:PTR) and Sinopec (NYSE:SHI), for extra cargoes of crude for May and June loadings, forcing them to seek supplies from producers in West Africa, Oman and Russia.

Saudi Arabia “used to provide us and if we asked for extra cargoes on top of contract during the 1st 4 months of the year, but not for May and June,” said a trader with 1 of China’s biggest Crude Oil importers.

Another source with a Chinese refinery that takes Saudi Oil said Saudi heavy Crude was “a bit tight” in May and June.

Recent pricing and trade flow data show a 40% rise in Brent Crude Oil since January has coincided with a more than 10% fall in overall Middle East supplies to China, although in historical terms they remain high.

Saudi Aramco, not available for comment, has reduced contractual supplies to some Japanese and South Korean customers in April.

The trader with 1 of China’s big importers said requests for more Crude Oil to Kuwait and the United Arab Emirates (UAE) were also turned down.

PetroChina and Sinopec officials seldom comment on trading activity.

http://www.livetradingnews.com/saudi-arabia-turns-down-chinese-requests-for-more-crude-oil-105438.htm#.VV4yqk1FCUk

Marker:
Sandridge Energy, In (SDRXP)
$24.33 up 1.58 (6.95% )
Volume: 13,869

*are these the ever so small beginning signs the Saudi's have reversed policy? I think the answer has to be a yes...

[56Chevy]

Marker;
SandRidge Energy Inc. (SDRXP)
$23.00 down 1.61 (-6.54%)
Volume 6,686

CL/N15 Light Sweet Crude: $58.92

SD common equity today: $1.10

EUR/USD
1.111645

[56Chevy]

Marker:
Sandridge Energy, In (SDRXP)
$40.00 up 0.6 (1.52%)
Volume: 1,640

CL/H15 Light Sweet Crude: $48.94

SD common equity closing price today:
Sandridge Energy Inc. (SD)
$ 1.79 up 0.10 (5.92%)
Volume: 9,390,218

EUR/USD
$1.09718

Sandridge Energy, In (SDRXP)
$29.98 down -3.52 (-10.51%)
Volume: 14,933

CL\M15 Light Sweet Crude: $59.96

SD common equity closing price on Friday:
Sandridge Energy Inc. (SD)
$ 1.18 down -0.15 ( -11.28%)
Volume: 33,798,767

EUR/USD
1.1446

[catdaddyrt]

http://seekingalpha.com/article/3070646-sandridge-energy-preferred-convertible-a-21-percent-yield-paid-in-shares-of-sd-common?auth_param=46e5d:1airda7:37fbff268ceb28645579f9cfc3d40d4c&uprof=45


SandRidge Energy Preferred Convertible: A 21% Yield Paid In Shares Of SD Common


Apr. 14, 2015 8:47 PM ET | 11 comments | About: SandRidge Energy, Inc. (SD), Includes: ARP



Disclosure: The author is long SD. (More...)






Summary
•Preferred dividends are now being paid in shares of SD common stock.
•A preferred stock dividend deferral is unlikely since dividends are no longer a cash cost.
•SDRXP yields far more than peer issues such as ARP-PD with comparable credit risk as measured objectively by bond yields.
•SD holders should consider swapping into SDRXP.



SandRidge Energy (NYSE:SD) is well known to energy sector investors, but few are familiar with its preferred stock issues. SDRXP and SDRXN are par $100 cumulative preferred convertible issues. I profiled SDRXP in this 3/3/2015 Seeking Alpha article. SDRXP traded lower, as oil prices dropped and some readers questioned whether SD would defer the preferred stock dividend in order to preserve cash. On 4/1/2015, the SDRXN dividend was declared and will be paid in shares of SD common stock. A deferral is now very unlikely since the preferred stock dividends are no longer a cash cost.

SandRidge Energy has been attacked by some recent Seeking Alpha articles, but bond market yields and credit agency ratings are a more objective way to measure credit risk than negative headlines. SandRidge has no near-term debt maturities and hedging provides some protection against low commodity prices for 2015 and 2016. Based on bond prices, SandRidge has comparable credit risk to Atlas Resource Partners (NYSE:ARP). SDRXP yields more than twice as much as the ARP-PD's par $25 cumulative preferred units.

The SandRidge 8.125% unsecured bonds due 10/15/2022 (CUSIP 80007PAQ2) last traded at $65.50 with a 16.3% yield to maturity. The Atlas Energy 9.25% unsecured bonds due 8/15/2021 (CUSIP 049296AE6) last traded at $72.75 with a 16.3% yield to maturity. The SandRidge Energy bonds are rated B2 by Moody's and B- by S&P. The Atlas Energy bonds are rated Caa1 by Moody's and B- by S&P. Based on the bond yields and credit agency ratings, SD and ARP have comparable credit risk. Given their comparable credit risk, SDRXP and ARP-PD should trade at comparable yields. At a recent price of $21.10, ARP-PD now yields 10.2%. At a recent price of $40.38, SDRXP now yields 21.1%, which is more than double the yield of ARP-PD!

The recent decision by SandRidge to begin paying the preferred stock dividend in shares of SD common is extremely favorable for preferred stockholders. The dividend is no longer a cash cost, so there is no incentive to defer it to preserve cash. Note that SDRXP holders actually get a slightly higher dividend when paid in shares of SD. The shares of SD are discounted by 5% as compared to cash dividend payments. The calculation of the dividend payment is detailed on page 8 of the SDRXP prospectus:
“

"If the Company elects to make any such payment, or any portion thereof, in shares of Common Stock, such shares shall be valued for such purpose, in the case of any dividend payment, at 95% of the Market Value as determined on the second Trading Day immediately prior to the Dividend Record Date for such dividend."

Given the recent decision to start paying the preferred dividend in common stock, SD holders should consider swapping into SDRXP. Using round numbers, 100 shares of SDRXP at $40 has the same cost as 2,000 shares of SD at $2. Suppose that SDRXP continues to pay the dividend in common stock for the next 3 years while commodity prices recover and suppose that SD shares trade at an average price of $2.50 during this period, the dollar value of 3 years of dividends received from 100 shares of par $100 SDRXP at 8.5% coupon is $2,550. Given these assumptions (ignoring the 5% discount), 100 shares of SDRXP would receive 1,020 shares of SD as dividend payments over the next 3 years.

Each share of SDRXP may be optionally converted into 12.48 shares of SD. Using the above example, after 3 years, 100 shares of SDRXP would have received 1,020 SD shares in dividends and be convertible into 1,248 shares for a total of 2,268 shares. In this example, if you bought SD common, you still have only 2,000 shares. SDRXP holders are clearly ahead. Note that SDRXP holders would not actually convert into SD common since it would still be far better to continue receiving the preferred stock dividend.

The payment of SDRXP dividends in common stock is very favorable to preferred stockholders. SD shareholders face modest dilution, as shares are issued to pay the preferred dividend. SDRXP deserves a closer look from high-yield investors, as well as SD shareholders.





Additional disclosure: The author is long SDRXP. SDRXP is covered in the Panick Value Research Report. The Panick Report is focused on high yield preferred stock issues, [e-mail] for the 2 week free trial.

















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[56Chevy]

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