Sandridge Energy (SD) at Howard Weil

Sandridge Energy

Overview

Company has 1,4 TCF of gas reserves, owns 44 drilling rigs, and major oil service business. Employees own 28%, and with board 37% ownership of company.

Company was an IPO in 2007 – focused on West Texas overthrust, where two continental plates collided millions of years ago leading to multiple traps, etc.

Likes the Pinon Field – 2600 locations and 260 wells to be drilled this year.

2008 is “year of exploration.”

8% growth in production in 2008 – but expect much higher in future.

Pinon field is south of Permian basin – where major CO 2 infrastructure is located. Sandridge has CO 2 reserves in its acreage at the Pinon Field.

Main focus of company capital spending is on E and P – don’t need acquisitions – debt to capital target is 33-50%, and the company hedges opportunistically.