SandRidge Energy (SD) remains quite cheap when looking at its enterprise value as a multiple of EBITDA. However, the company has significantly reduced its oil production guidance, and it seems that it cannot increase oil production without significant cash burn. SandRidge is hurt by low prices for natural gas, and NGLs and may need to decide between lower oil (and total production) or substantial cash burn in 2020.
North Park Basin Oil Production Questions
There are some questions around the long-term productivity of wells in SandRidge's North Park Basin asset.
In August, the