Friday, April 20, 2012

Interview With Sandridge's Tom Ward

This week we had a chance to participate in a Seeking Alpha interview with Sandridge's CEO Tom Ward.  Below is a recap of the article which I've written for Seeking Alpha summarizing the interview and Sandridge:
This week I was fortunate enough to be able to take part in a Seeking Alpha interview with SandRidge Energy's (SD) CEO Tom Ward. Mr. Ward was very generous with his time and allowed us as much time as we needed to pick his brain.
I decided to take the information I obtained from the interview and summarize the points that I think investors or potential investors in SandRidge would be interested in.
1) Why SandRidge's Share Price May Rise Significantly in the Next Few Years
I personally think SandRidge has some very attractive assets, the value of which is not being reflected in the current share price. As part of the interview I asked Ward what could help eliminate this discount and send SandRidge's shares higher.
His answer was simple, and I think pretty sensible. Ward simply said that you can't triple cash flow or EBITDA in three years, and not have your stock price double or triple along with it.
And a tripling EBITDA is the exactly the SandRidge three-year plan. How is the company going to do it? Check out the most recent SandRidgepresentation which provides the details. With 7,000 drilling locations in the Mississippian and another 7,000-plus in the Permian Basin, there is no doubt that SandRidge has the acreage to grow production for a long time.
2) A $400 Million Investment Worth Almost $9 Billion
Link to full article:

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