Sunday, July 12, 2015

Sandridge Energy PV-10 Based On May 1, 2015 Forward Strip


On May 28, 2015, SandRidge Energy, Inc. (the “Company”) announced its intent to commence a private placement (the “Offering”) of $1.0 billion aggregate principal amount of senior secured notes due 2020 (the “Notes”). In connection with the Offering, the Company disclosed that the present value, discounted at 10% per annum, of its proved reserves as of December 31, 2014 would have been $3.04 billion based on NYMEX forward strip prices as of May 1, 2015 ($3.4 billion after giving effect to the Company’s hedging arrangements).

1 comment:

ADL said...

More or less the amount of its debt...

So for preferred shareholders, the glass is either half-full of a 40% yielding security which will triumphantly march back to par once the current tempest subsides, or half-empty with a wasting and depreciating asset on which there's an ever more tenuous claim.