Chesapeake Energy Corporation (CHK), Magellan Midstream Partners, L.P. (MMP): Maybe the Mississippi Lime Isn’t So Bad After All

SandRidge, which is by far the biggest operator in the play, has nearly 700 wells drilled and more than 30 rigs currently running. For some context, Chesapeake Energy Corporation (NYSE:CHK) has drilled the second-largest number of wells, but it’s less than half the amount that SandRidge has. Chesapeake and its new Chinese partner are unlikely to catch up anytime soon with just eight rigs running; in fact, the Devon Energy Corp (NYSE:DVN) has the second-highest rig count at 10 rigs. Both Devon and Chesapeake Energy Corporation (NYSE:CHK) have focused their drilling dollars elsewhere, while SandRidge has doubled down on the Mississippian.

SandRidge has just under 2 million net acres in the Mississippian and sees the potential for nearly 11,000 future drilling locations. According to the company, that equates to an 18-year drilling inventory. That’s big-time growth, and the movement of Phillips 66 to secure some of the play’s production would seem to indicate that it sees a lot of value to its business in the play being developed. SandRidge could be on the cusp of something big, especially if it can shed its reputation of a poor performer.

The article Maybe the Mississippi Lime Isn’t So Bad After All originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of Phillips 66. The Motley Fool recommends Magellan Midstream Partners, L.P. 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.

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