3. SandRidge grew its Mississippian production 131% year over year while also growing its oil reserves by 35%. The company’s investments in the Mississippian are beginning to pay off with visible production growth. Last year the company more than doubled its production in the play. Meanwhile, it was also able to grow its overall oil reserves by 35%.
The company sees its Mississippian oil and liquids production jumping another 78% in the year ahead, with overall production up 72%. This liquids-focused growth is important given that 80% of its Mississippian cash flows come from oil production. However, if natural gas prices continue to rise, there is potential here for some significant upside given the natural gas production that is coming out of the Mississippian.
The bottom line here is that you’re investing in SandRidge Energy Inc. (NYSE:SD) because you believe in the future of the Mississippian. While that is an important part of the story, it’s by no means the whole story.
If you’d like read more of the story and learn more about the future of this emerging oil and gas junior then check out The Motley Fool’s premium research report detailing SandRidge Energy Inc. (NYSE:SD)’s game plan. To get started, simply click here now!
The article 3 Reasons to Buy SandRidge Energy originally appeared on Fool.com and is written by Matt DiLallo.
Fool contributor Matt DiLallo owns shares of Phillips 66. The Motley Fool owns shares of Devon Energy 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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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