Why SandRidge Energy Inc. (SD) Is Not a Dud

This is a company that’s also improving its financial metrics in that core Mississippian Lime play. Drilling and completion costs dropped by 14%, or half a million dollars per well, over the year. A lot of this was due to a 20% decrease in spud-to-spud cycle time as the company has the best spud-to-first sales in its class. These are really important metrics for improving margins and cash flow; it’s something you really want to see from an energy investment.

Now, I’m not saying that SandRidge is the best energy investment out there, but the company really could surprise investors. If the Mississippian turns out to be even halfway decent SandRidge could have multibagger potential because the expectations are so low. SandRidge is really an intriguing story and one worth a deeper look.

The article Why SandRidge Energy Is Not a Dud originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of SandRidge Mississippian Trust II and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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