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New wells coming online in Permian and more tied to oil prices instead of natural gas.
Sandridge Permian Trust has 509 developed oil and natural gas wells located in Andrews County, Texas, and 888 oil and natural gas development wells to be drilled within an Area of Mutual Interest. This area consists of the Grayburg / San Andres formation in the Permian Basin in Andrews County, Texas. As of December 31, 2010, SandRidge held approximately 16,700 gross acres (15,900 net acres) in the AMI.The Underlying Properties consist of the working interest owned by SandRidge in the Permian Basin in Andrews County, Texas arising under leases and farmout agreements related to properties from which the PDP Royalty Interest and the Development Royalty Interest will be conveyed.Production will be increasing, and so will the dividend, for some time to come. I like the fact that production is not winding down for some time to come and shareholders actually get a chance to participate in those new production wells. The trust distribution is paid quarterly, and last quarter totaled $0.585 per unit. At $14.60 per unit, the dividend yields approx. 16%, an excellent payout. I believe the shares are undervalued by approx. 50% given the increased production and estimated earnings of $2.68 over the next quarter. My sell price would be $22, although I may just keep my shares and sell calls against them if it ever gets close to my price estimate of $22.
Great dividend yield and oil/gas will continue to rise,
The increased use of horizontal drilling for the production of Oil and Natural gas liquids will be money makers even if oil prices decline and they will make a lot if prices increase, Increases likely due to the never ending problem in the Middle East. Play the right companies right here in U.S. and cash in.
Great current divi yield of 15.36% plus my GNVR: $21.90 to $22.23 GNVR(Graham Number Valuation Range) based on the Graham Number formula: http://wiki.fool.com/The_Graham_Number
good enough for CAPS
Tons of income and hedged at 100 per barrel for the next few years
bottom feeding for defensive yield play. jakila has a nice write-up at SA.
Still lots of production and a nice dividend.
Oil prices tending lower, after Isreal attacks Iran oil prices will go up,and stay up for a while
sd sdt per
Great dividend. Output is weighted to oil, not natural gas.
Good for the next 29 years, even with the fluctuation of oil prices, I look forward to increased divs in the future.
over 800 wells pumpin' black gold! Short and sweet crude!
SandRidge Permian Trust was spun off into an IPO by SandRidge Energy on August 11th, two weeks ago at $18 per share, slightly below the target. SandRidge Permian Trust raised $540 Million on 30 Million shares issued. Sandridge did a similar IPO with SandRidge Mississippian Trust I (SDT) for wells it held in Oklahoma....why Mississippi Trust for Oklahoma wells....hmmmm maybe SnadRidge is Geographically challenged. The $1.06 Dividend in August three months later shows the potential of this type of trust as a dividend play and how it might be desired by those looking for a dividend income.SandRidge Permian currently has 509 producing wells in western Texas, (13 not complete), but estimates they have room on the acreage for up to 888 more with reasonable spacing. Wells are relatively shallow. Trusts have various variations on how they are implemented. Some are for a certain time period, some disappear as the resource is used up. SandRidge Permian plans on splitting profits between shareholders and continued drilling that should carry it through more than a decade at potentially increasing production and has considerable more time before worrying about asset depletion that faces trusts like Dominion (DOM) which has confused dividend chasing investors over the last two years as it winds down. With a mix of new drilling and asset, (oil/NG) hedging SandRidge Permian Trust expects to produce stable dividends.Personally, I believe a bottom on oil even in a bad ecomony is at least $80 per barrel. SandRidge, (all three variations) has low cost production. Once solid dividends are established then SandRidge Permian Trust will receive more investor attention. The first dividend on the Mississippi Trust resulted in a solid share price appreciation for it's cousin SDT.Reevaluate each quarter with dividends, oil prices, and managements performance in balancing hedges and capex.
Dividends. Long on SDT also.
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