SandRidge Bankruptcy

I signed a lease with SandRidge in Sept. 2015 for minerals I own in Alfalfa County, Cherokee, Oklahoma. As of May 2016 SandRidge entered into bankruptcy but was granted the okay to continue Royalty payments. I have never received any royalty payment from them at all...only a small sign on bonus. Just curious if anyone knows or is also dealing with SandRidge and is receiving royalty payments.

Kim

Kim,

SandRidge is a good exploration company that got caught up in the feeding frenzy of $100 oil, borrowed too much money relative to the current production. the company is using bankruptcy laws to reorganize its debt. For a period of time, sandRidge will be under court protection against creditor's demands. During that time, they may sell some positions, streamline its operations, and renegotiate sales contracts to profitable status all under the control of the court.

During this time the company will be allowed to pay its obligations like salaries, rent, production royalties, etc. If you have not received a Division Order, you may not be in line for royalties. If SandRidge has drilled a well that includes some of your leased acreage and the well is completed as an economic producer, you will eventually get a DO. If your lease reaches its expiration date and SandRidge is still in bankruptcy, you can apply to the court to have your lease terminated. Otherwise, ALL control of your minerals were given to SandRidge when you signed the lease and took the bonus.

Don't worry about it. The Court is there to protect SandRidge, its creditors, and lessees. You may receive a notice from the Court. Read it carefully and keep track of your options.

The national debt and how it got to be where it is should be of more concern to mineral owners. That is something you can do something about in November. $19 trillion divided by 310 million will give you some idea of your share of that debt.

Gary L Hutchinson

Minerals Managment

Just my opinion: We may be seeing the end of the US dollar as the primary reserve currency. If that is the case, all of those dollars held abroad will be coming home, and that means a big inflation. For the time being, the best place for our minerals is in the ground.

Wait it out.

The dollars never left. They are being used and in most cases wasted on government programs that keep people in poverty and dependent on government for votes instead of producing jobs that create weath for mankind otherwise known as manufacturing at a profit. Employment in manufacturing is the only way to really contribute to GDP government jobs and federal programs that don't build anything are whittling away out economy. Balancing supply with demand on consumed products not governmental programs is the key to success. Without a steady growth of the money supply going into manufacturing, we won't be able to sustain a song economy. Interest on the national debt contributed only to the growth of the lender economies and shortsighted money grubbing financiers.

Show me something the Clinton Foundation manufactures in the USA. Compare that to the drop in oil manufacturing in the USA due to manipulation of Saudi Oil Prices and no more pipelines. If the drop in oil prices is a real inflation fighting tool, why is the price of gold creating up as oil goes down?

Why can't politicians understand that getting elected is just the first step in helping the country that allowed them to run for office in the first place. We need legislators who will look past getting elected soon or we will perish as a proud society.

Gary Hutchinson, a frustrated old citizen.

Gary,

Thanks for the economics lesson. You're right on. Legislators on both sides of the isle are to blame. It's time to clean out the rats that created and added to this problem. By doing nothing they have become 'fat rats'.

http://www.timeanddate.com/countdown/generic?p0=263&iso=20170120T00&msg=Time%20left%20until%20Obama%20leaves%20office

Another frustrated old citizen,

Clint Liles

It appears that those holding dollars are putting them into equities. The stock market is way over sold. Look at the PE ratios. It reminds me of the run up to the Dot Com fiasco. Companies that never paid a dividend had their stock soaring.

When I get those "we want to buy" letters on some of my real estate, I know people are looking for places to dump dollars.

Stores are closing all across the country. Fiat Chrysler will no longer manufacture sedans in the US. That is going to Mexico. The government cannot lie a depression away.

Worse, look at the price of precious metals. They rise until the bankers in New York have had their coffee and then they begin selling paper gold. Then it falls.There is real gold that one can keep in your safe, and then there is paper gold that says one has gold on deposit. They can sell that paper gold all day, but if everyone wanted their gold in their hand, the COMEX would crash. There is only so much precious metals, but there is a lot of paper out there. This multiplier gives the dollar a false value.

I read the seventeen per cent of the loans held by Italian banks are not performing. If they go down, so will the Portuguese and Spanish banks, and then Deutsche bank will be next. Where will it stop?

Will we see buy ins where the bond holders and account holders assets will be used to save the institutions? It scares me!

Most likely SandRidge was just picking up leases wherever they could and may not be drilling at all, like Gary said. I received the SandRidge Ch 11 paperwork months ago and never signed a lease with them so things are pretty crazy. Like Gary said, keep all of your bankruptcy paperwork. You're probably lucky to have even gotten the lease as bad as things are now!

It has been my experience that when companies know they will be going into bankruptcy, they take as much into their inventories as possible. The material supplied become assets in the bankruptcy. Their suppliers will have to share the loss.

There should be a disclaimer on this thread like "This is not intended to be investing advice, please contact a professional".

BTW, oversold means that stocks are cheap.

This is not investing advice, but my own personal fear. But think about, if the price to earning ratios are so out of kilter, what does that mean to you?

Evaluate the situation and make your own opinions.

They are drilling and producing in Alfalfa County, Cherokee, Oklahoma...I have confirmed this.

Gary, my vote is for Trump in November! I have been a supporter of his from the git-go.

Reading about a recent Bitcoin exchange that was hacked, without asking anyone the exchange spread the loss to those who had bitcoin deposited and the exchange gave each depositor a token for the amount taken which if the value of the "currency" grows enough supposedly the token will be redeemable. Other exchanges have failed and depositors of their bitcoin have been waiting on the courts to get any of their bitcoin back.

Since the US dollar is backed by nothing, it is in the same boat. The IRS "lost" 2 billion dollars that were earmarked to update their computers? How does one lose 2 billion dollars without a trace? It never really existed. Just as Bitcoin never really existed. Both supposed counters of worth only have value if we agree they have value and I'm starting to become agnostic on that subject.

My disclaimer is this is just an observation.

On P/E ratios.The average P/E ratio since the 1870's has been about 16.7. But the disconnect between price and TTM earnings during much of 2009 was so extreme that the P/E ratio was in triple digits — as high as the 120s — in the Spring of 2009. In 1999, a few months before the top of the Tech Bubble, the conventional P/E ratio hit 34. It peaked close to 47 two years after the market topped out. The explanation is simple. Earnings fell faster than price. In fact, the negative earnings of 2008 Q4 (-$23.25) is something that has never happened before in the history of the S&P 500.

I like to read Barry Ritholtz at http://ritholtz.com/

Fear is your enemy.

Time will tell.

Watching P/E ratios is like watching a willow in a windstorm and ignoring the funnel cloud on the horizon.

Gary Hutchinson

I am afraid you two are correct. We may be seeing the end of the era of fiat currency. The only way we can deal with the debt is to keep printing currency until we have ruined the dollar. That will destroy our savings and dollar denominated instruments. This will take down the member banks of the Fed.

Remember Germany of 1923? How about Zimbabwe?

Just how much gold is in Fort Knox? The German government asked to have their gold repatriated, and they were told it would take eight years to do that.

I don't have a good feeling about this. Sorry Lynden.

Politicians promise to do things for us, then they get to Washington and they do things to us.

There is no free lunch. There is no mythical one per cent that will pay all of our bills.

The United States is the richest country in the world, right? We are not the Weimar Republic nor are we Zimbabwe. Remember, when you talk about debt, that most of us have had mortgages which were much larger than our annual salaries and we have had car notes from time to time. What is really important for the United States is the interest expense. How much it costs to carry that debt. Much like a corporation the U.S. is a going concern which will outlive all of us.

the net interest payment in 1995 was $232.1 billion or 17 percent of revenues. In 2014, the net interest payment was $229 billion or 8 percent of revenues. Despite the ominous debt/GDP headlines, net interest payments are the same as 20 years ago

I believe the national debt had progressed rapidly in the last 2 years but the national debt is not what worries me. 20 Trillion debt vs the estimated 869 Trillion net worth (only figures I have heard) of the US is a drop in the bucket. I really wish they would stop blowing money on boondoggles and foreign aid to people who hate us, anyway.

We still are currently the worlds reserve currency which props up the value of the dollar. What happens when we no longer are?

If there is no problem why is it the US credit rating was lowered? Not pointing this at anyone, just observations and a few questions without apparent answers.