SD - SandRidge Energy

[Sombunall]

Seems to me SD might've been something special: debt-free E&P that could've been run for cash flow and put up for sale... but instead it's starting to look like every other E&P -- spend more than cash flow, even if it means taking on debt, to develop assets and even acquire adjacent acreage... all to get production numbers up... If SD is a microcosm of how E&Ps are run, then the industry hasn't learned a thing in this bear market for energy. It's the same old same old...

Having said all this, I'm pretty sure this post will market the bottom for SD. 

[Gregmal]

The problem is that, management gets rewarded for bankrupting a company. Ward made a fortune crippling them. Then the next crew had every incentive because then they got a clean slate and tons of free stock. If a company goes bankrupt, senior management should mandatorily be fired. As long as it is the current way, file and get a big slug of free stock... things will never change.

[Liberty]

Seems to me SD might've been something special: debt-free E&P that could've been run for cash flow and put up for sale... but instead it's starting to look like every other E&P -- spend more than cash flow, even if it means taking on debt, to develop assets and even acquire adjacent acreage... all to get production numbers up... If SD is a microcosm of how E&Ps are run, then the industry hasn't learned a thing in this bear market for energy. It's the same old same old...

"A scorpion asks a frog to carry it across a river. The frog hesitates, afraid of being stung by the scorpion, but the scorpion argues that if it did that, they would both drown. The frog considers this argument sensible and agrees to transport the scorpion. The scorpion climbs onto the frog's back and the frog begins to swim, but midway across the river, the scorpion stings the frog, dooming them both. The dying frog asks the scorpion why it stung the frog, to which the scorpion replies "I couldn't help it. It's in my nature.""

[meiroy]

Down almost 10% today.  Soon I'll be about 50% down on this. Lovely.

[Gregmal]

If at first you dont succeed, try, try again. If you fail again, then what? Someone just needs to end this disaster of a company. Seems like just yesterday Icahn was going to save the day. Seems like just two yesterdays ago, Watsa, Cooperman, and Pickens found the value investment of the decade. Seems like last week Tom Ward was God.

[meiroy]

It was a small position for fun as I never touch anything in commodities/energy. Still holding on to it now which means it's down like maybe 90%?

[Gregmal]

Yea no swipe at anyone intended. Made the same misfortune myself many a years back on this one. This epitomizes investing in this space.

[jeffsreng]

It's nice to travel back memories lane:

https://www.youtube.com/watch?v=XJBjotb0BWw

[meiroy]

"The Company named Carl F. Giesler, Jr. as its President and Chief Executive Officer. Most recently, Mr. Giesler led the cost and operational turnaround and subsequent cash sale in January for Jones Energy, Inc. ("Jones Energy"). At Jones Energy, Mr. Giesler led a team that significantly right-sized that company's administrative and operating costs as well meaningfully improved its capital expenditure efficiency and effectiveness."