Thursday, October 4, 2012

SandRidge Energy: Not As Risky As It Appears

SandRidge Energy (SD) presented at the Johnson Rice Energy Conference yesterday. The presentation didn't provide a lot of new information, but it did further highlight how this company is less risky than it appears.

The company is an oil and natural gas exploration and production company focused on the Mississippian, Permian Basin, and now Gulf of Mexico.

Since the CEO, Tom Ward, was a co-founder of Chesapeake Energy (CHK), the company is routinely painted with the broad swath as being a risky wildcatter, similar to how Aubrey McClendon supposedly runs that company.

While SandRidge has a propensity for debt and aggressive growth, management has correctly steered this company towards oil production that is hedged considerably into the future. Not to mention, the company takes on less risky and less costly drilling programs.

Read the full article at Seeking Alpha.


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