Good point. I think their stock price has been largely depressed by the slide in Natural Gas prices, but at the same time, oil has moved up about 20 percent, Sandridge has shifted gears and their business model to move to a much larger mix of oil production and less gas. Sandridge, according to CEO Tom Ward, is producing oil at many of their wells in Oklahoma and Texas for an incredibly low $6.00 per barrel lifted cost. With the rapid progress being made by Clean Energy Fuels, thanks to 3 cash infusions by Chesapeake Energy and two other investors, the nation's long haul trucking business is rapidly moving away from Diesel fuel and toward clean burning Compressed Natural Gas and Liquid natural gas. Clean Energy has been picking up local fleet business for the past few years by converting bus fleets, airport fleets, UPS, school bus fleets, etc. to CNG. About 6 months ago, CNG was selling in Oklahoma City for $1.39 per gallon and Diesel was near $4.00 per gallon equivalent. Since that time, NG prices have dropped almost in half, from about $4.25 to $2.29, which is likely below production cost, even for Sandridge. However, Sandridge has been able to sell off some chunks of owned and leased land for huge profits. Meanwhile, their profits are HUGE in the liquids end of the business, which now comprises about half their business model.. By the end of this year, there will be meny long haul trucking routes which are covered with CNG fueling stations. It only costs about $40,000 to convert a dirty burning diesel rig to a a clean burning CNG rig with a brand new engine with a warranty. While gas prices are at extremely low levels, thjs will be good news for Sandridge in the mid to long term, because gas prices will likely move back above the $5.00 level due to cold weather, or hot weather in summer, when gas fired power plants will be buying more and eliminate the glut in supplies. The trucking fleet conversion is going to create a steady increase in demand, because trucks account for about half of the transportation fuel used in this country. If I owned a trucking company, and ran routes served by Natural Gas fuel, I would be ordering eiither new trucks NOW with CNG engines, or would be converting a large number of trucks in my fleet. Can you imagine the competitive edge a trucking company would have over companies who don't convert, and are paying at least $1,000 more PER WEEK PER TRUCK? Their are also tax incentives, both on the state and federal level to convert to natural gas vehicles. We are currently sending $3 trillion per year from the bank accounts of Americans straight to the bank accounts of OPEC, and that doesn't even account for the price gouging and price fixing which has been allowed by a blind eyed congress. Imagine the shot in the arm to our economy that $3 trillion in American's pockets per year would mean. This one facet of the "clean" and renewable energy technologies could create over 1 million new high paying jobs. The conversion of the trucking fleet was a centerpiece of the American Power Act, which was passed by the House in 2009, but blocked in the Senate by Mitch McConnell-after receiving a $500,000 "contribution" from Big OIl, who will stop at nothing to make sure that we continue to be dependent on the "evil energy empire" of Big Oil, the coal lobby, the refining Koch Brothers and their mid east partners in OPEC. This group of colluding crooks makes TRILLIONS OF DOLLARS every year by stealing the American public blind. In 2006 and, 2007, the big oil partners nearly drove the country into a depression by sucking most of the disposable income away from the middle class and poor, but they were allowed to do so by a congress which was taking hundreds of millions of dollars in "campaign contributions" from the Big Oil and Koch Brothers monopoly. Since the corrupt "Citizens United" supreme court decision, Big Oil is free to spend billions of dollars buying politicians with contributions. Mitt Romney has been spending almost $50 per vote so far, but it doesn't matter. If you are willing to sell your very should to Big oil, Wall street, and Too Big to fail institutions, the "campaign contributions" will have no limit.The money spent buying "water boy" politicians, is inconsequential. They will get it back after the election. With de-regulation, they will be able to once again steal all they want from Americans. We need to enact PUBLIC CAMPAIGN FINANCING AS SOON AS POSSIBLE, ALONG WITH tight regulations on all LOBBYING. It should be illegal for any lobbyist to be in direct contact with any politician, especially behind closed doors. All lobbying needs to be done in full public view on C SPAN and equal time should be afforded to opposing views. Lastly, it should be illegal for any politician to leave office and become a lobbyist. It's really a shame that what is in the best short term interests of big business (as far as immediate profit margins) is all too often BAD for the American People. I'd also like to see an effort made to COERCE businesses to sign a tough code of ethics of how they will conduct business and treat their customers. I'm a business owner and an investor, but I would be extremely happy to see business embrace a meaningful CODE OF ETHICS, even if it meant sacrificing a couple of percentage points in their bottom line. Actually, I think that businesses who took the lead in a move toward embracing ETHICS FIRST, would be rewarded with customers and investors enthusiastically moved to do business with them. If the health care and energy industries especially continue to steal the American public blind, it will result in economic disaster for our country. If greed can be corralled, the middle class and poor will have a little disposable income again, and will make the economy soar again. Even the greedy will benefit.
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They have so much land. They can sell part of that land and make a huge profit. Their profit margin is over 130%. That's incredible.
Good point. I think their stock price has been largely depressed by the slide in Natural Gas prices, but at the same time, oil has moved up about 20 percent, Sandridge has shifted gears and their business model to move to a much larger mix of oil production and less gas. Sandridge, according to CEO Tom Ward, is producing oil at many of their wells in Oklahoma and Texas for an incredibly low $6.00 per barrel lifted cost. With the rapid progress being made by Clean Energy Fuels, thanks to 3 cash infusions by Chesapeake Energy and two other investors, the nation's long haul trucking business is rapidly moving away from Diesel fuel and toward clean burning Compressed Natural Gas and Liquid natural gas. Clean Energy has been picking up local fleet business for the past few years by converting bus fleets, airport fleets, UPS, school bus fleets, etc. to CNG. About 6 months ago, CNG was selling in Oklahoma City for $1.39 per gallon and Diesel was near $4.00 per gallon equivalent. Since that time, NG prices have dropped almost in half, from about $4.25 to $2.29, which is likely below production cost, even for Sandridge. However, Sandridge has been able to sell off some chunks of owned and leased land for huge profits. Meanwhile, their profits are HUGE in the liquids end of the business, which now comprises about half their business model.. By the end of this year, there will be meny long haul trucking routes which are covered with CNG fueling stations. It only costs about $40,000 to convert a dirty burning diesel rig to a a clean burning CNG rig with a brand new engine with a warranty. While gas prices are at extremely low levels, thjs will be good news for Sandridge in the mid to long term, because gas prices will likely move back above the $5.00 level due to cold weather, or hot weather in summer, when gas fired power plants will be buying more and eliminate the glut in supplies. The trucking fleet conversion is going to create a steady increase in demand, because trucks account for about half of the transportation fuel used in this country. If I owned a trucking company, and ran routes served by Natural Gas fuel, I would be ordering eiither new trucks NOW with CNG engines, or would be converting a large number of trucks in my fleet. Can you imagine the competitive edge a trucking company would have over companies who don't convert, and are paying at least $1,000 more PER WEEK PER TRUCK? Their are also tax incentives, both on the state and federal level to convert to natural gas vehicles. We are currently sending $3 trillion per year from the bank accounts of Americans straight to the bank accounts of OPEC, and that doesn't even account for the price gouging and price fixing which has been allowed by a blind eyed congress. Imagine the shot in the arm to our economy that $3 trillion in American's pockets per year would mean. This one facet of the "clean" and renewable energy technologies could create over 1 million new high paying jobs. The conversion of the trucking fleet was a centerpiece of the American Power Act, which was passed by the House in 2009, but blocked in the Senate by Mitch McConnell-after receiving a $500,000 "contribution" from Big OIl, who will stop at nothing to make sure that we continue to be dependent on the "evil energy empire" of Big Oil, the coal lobby, the refining Koch Brothers and their mid east partners in OPEC. This group of colluding crooks makes TRILLIONS OF DOLLARS every year by stealing the American public blind. In 2006 and, 2007, the big oil partners nearly drove the country into a depression by sucking most of the disposable income away from the middle class and poor, but they were allowed to do so by a congress which was taking hundreds of millions of dollars in "campaign contributions" from the Big Oil and Koch Brothers monopoly. Since the corrupt "Citizens United" supreme court decision, Big Oil is free to spend billions of dollars buying politicians with contributions. Mitt Romney has been spending almost $50 per vote so far, but it doesn't matter. If you are willing to sell your very should to Big oil, Wall street, and Too Big to fail institutions, the "campaign contributions" will have no limit.The money spent buying "water boy" politicians, is inconsequential. They will get it back after the election. With de-regulation, they will be able to once again steal all they want from Americans. We need to enact PUBLIC CAMPAIGN FINANCING AS SOON AS POSSIBLE, ALONG WITH tight regulations on all LOBBYING. It should be illegal for any lobbyist to be in direct contact with any politician, especially behind closed doors. All lobbying needs to be done in full public view on C SPAN and equal time should be afforded to opposing views. Lastly, it should be illegal for any politician to leave office and become a lobbyist. It's really a shame that what is in the best short term interests of big business (as far as immediate profit margins) is all too often BAD for the American People. I'd also like to see an effort made to COERCE businesses to sign a tough code of ethics of how they will conduct business and treat their customers. I'm a business owner and an investor, but I would be extremely happy to see business embrace a meaningful CODE OF ETHICS, even if it meant sacrificing a couple of percentage points in their bottom line. Actually, I think that businesses who took the lead in a move toward embracing ETHICS FIRST, would be rewarded with customers and investors enthusiastically moved to do business with them. If the health care and energy industries especially continue to steal the American public blind, it will result in economic disaster for our country. If greed can be corralled, the middle class and poor will have a little disposable income again, and will make the economy soar again. Even the greedy will benefit.