Since he acquired a position he's always said that one reason SD was undervalued was because of it's bankruptcy potential. That may seem a bit weird, but SD is highly profitable on an operational basis. It's debt structure though, makes it very difficult for earnings to make it to the bottom line.
You'll note that he is worried about SD's survivability if oil remains at current levels for "multi years". A look at oil's historic price chart shows that is a pretty unlikely scenario.
News 
Market Data 
Discover 
