catdaddyrt
8 years ago
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.
catdaddyrt
10 years ago
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
10 years ago
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.
Pennybuster
10 years ago
$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
old Mt
10 years ago
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.