brker_guy Posted April 22, 2010 Share Posted April 22, 2010 Prem bought more of SD yesterday: http://www.sec.gov/Archives/edgar/data/1349436/000120919110023201/0001209191-10-023201-index.htm Link to comment Share on other sites More sharing options...
Viking Posted April 22, 2010 Share Posted April 22, 2010 This takes them from 6,527,000 at Dec 31 to 11,203,600 as of today (todays closing price = $7.59) = $85 million = less than 2% of their equity holdings (pretty small position). Link to comment Share on other sites More sharing options...
brker_guy Posted April 22, 2010 Share Posted April 22, 2010 Interesting development.... It appears that Fairfax converted 7M out of their 11M shares to preferred stock - 8.5% Convertible Perpetual Preferred Stock http://www.sec.gov/Archives/edgar/data/101618/000120919110023371/xslF345X03/c99569_4x0.xml Link to comment Share on other sites More sharing options...
oldye Posted June 2, 2010 Share Posted June 2, 2010 http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=SD×tamp=20100602123300 They're now offering 4.50 in cash instead of 2.50...so proforma they'll have an extra 100 million in debt if the deal goes through...and if it doesn't they now get 39 million instead of 50 so the destruction of value continues. Link to comment Share on other sites More sharing options...
Myth465 Posted June 2, 2010 Share Posted June 2, 2010 Sandridge is in a tough spot. I think they need Arena more than Arena needs them. I never saw what Arena was getting out of the deal. Link to comment Share on other sites More sharing options...
valuecfa Posted June 2, 2010 Share Posted June 2, 2010 Sandridge is in a tough spot. I think they need Arena more than Arena needs them. I never saw what Arena was getting out of the deal. The net asset value of Sandridge far exceeds it's market value. Arena is getting a very undervalued set of natural gas and other assets. I think Arena shareholders are getting a heck of deal, considering Arena is much closer to being fairly valued. Sandridge shareholders, on the other hand, are getting diversification, hedged oil production, & reduced leverage. Though Sandridge isn't in as bad a liquidity crunch as many are saying. Its debt doesn't even begin to start coming due till 2014/2015. And if it wanted to reduce costs it could JV out some of the future projects with little risk and much fewer expenses(though they would have to share the operating income on those projects). The merger is a win-win in my opinion. Long SD. Link to comment Share on other sites More sharing options...
oldye Posted June 2, 2010 Share Posted June 2, 2010 Sandridge is in a tough spot. I think they need Arena more than Arena needs them. I never saw what Arena was getting out of the deal. The net asset value of Sandridge far exceeds it's market value. Arena is getting a very undervalued set of natural gas and other assets. I think Arena shareholders are getting a heck of deal, considering Arena is closer to being more fairly valued. Sandridge shareholders, on the other hand, are getting diversification, hedged oil production, & reduced leverage. Though Sandridge isn't in as bad a liquidity crunch as many are saying. Its debt doesn't even begin to start coming due till 2014/2015. The merger is a win-win in my opinion. Long SD. I agree that Arena is fully valued at 1.6 billion (23$/barrel)/450 million shares= 3.55/share Legacy Sandridge has 105 million barrels or 2.4 billion @ 23$/barrel = 5.33/share 680 BCF x 1.80 = 3.06/share Gives you a full value of 11.94 less 6.11/share in proforma debt gets you about $5.83 in asset value per share. Link to comment Share on other sites More sharing options...
Myth465 Posted July 2, 2010 Share Posted July 2, 2010 I finally got my hands on some SD leaps. Hopefully we get some news on the merger soon. Link to comment Share on other sites More sharing options...
T-bone1 Posted July 2, 2010 Share Posted July 2, 2010 I think Arena shareholders vote on the 16th of this month, and the "go shop" period for Arena to solicit other offers expired yesterday Also, SD sold deap rights to part of its Oklahoma properties today (or at least signed an LOE to do so) for $140MM . . . This is an asset with no reserves associated with it and no value ascribed to it, yet they are selling part of it for $140MM, which is about $0.33 of value for the combined SD/ARD company on a fully diluted basis. Link to comment Share on other sites More sharing options...
Myth465 Posted July 2, 2010 Share Posted July 2, 2010 The updated July presentation is very interesting. Link to comment Share on other sites More sharing options...
alertmeipp Posted July 3, 2010 Share Posted July 3, 2010 What's interesting about it? I don't see anything new in there... Link to comment Share on other sites More sharing options...
Myth465 Posted July 3, 2010 Share Posted July 3, 2010 I probably didnt see the June one. It seems like they are going to great lengths to sell the deal to Arena, and the Go Shop period has ended. Link to comment Share on other sites More sharing options...
alertmeipp Posted August 20, 2010 Share Posted August 20, 2010 I bet lots of the selling recently is from ARD shareholders, the deal April 4 valued ARD at around around 37 bucks. Now, is 4.77 x $3.4 less = about 20 bucks. They probably think Tom screwed them. I am deeply underwater on this one too. I think the drop is also because it's almost impossible to project cash flow on this company. Shifting oil to ng or vice versa is it makes it impossible to do so. And with debt load like SD, if u can't project cash flow, it's hard to convince analysts to buy in. Unless the company gives guidance and stick to it, but that's what the company doesn't want to do! Link to comment Share on other sites More sharing options...
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