SandRidge Energy Inc. (SD): Performance Against Expectations

How goes the Gulf
While a bulk of SandRidge Energy Inc. (NYSE:SD)’s future is resting on its Mississippian acreage, it does have a sizable shallow Gulf of Mexico position. This is a cash flow asset for the company as its just investing to maintain its production with the excess cash flow going to fund the development of the Mississippian. That being said, SandRidge is looking to expand its position with additional bolt-on acquisitions.

That was until it settled with activist investors who’ve been calling for Ward’s resignation. These same investors are also calling for SandRidge Energy Inc. (NYSE:SD) to exit the Gulf. It’s possible that we will get some additional color from the company as to whether it plans to grow or divest the Gulf assets.

Foolish bottom line
It’s an important quarter for SandRidge, as it could be Ward’s last if the company’s performance flops. That could lead to yet another strategy change for the company, particularly surrounding its Gulf of Mexico assets. Despite the fact that its capital plans are funded through the end of next year, SandRidge Energy Inc. (NYSE:SD) still has a lot of work ahead of it.

The article 3 Things to Watch When SandRidge Energy Reports originally appeared on Fool.com.

Motley Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy Corporation (NYSE:DVN) and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy Corporation (NYSE:CHK), Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy Corporation (NYSE:CHK).

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