2012 Preview – SandRidge Mississippian Trust I

With 2011 almost in the rearview mirror, many investors start to mull over their portfolios and ask what comes next. It’s a fair question, and the answers we find are really the crux of great investing. The ability to identify value before the market has already baked expectations into the stock price is what distinguishes the successful investor.

With that, let’s take a look at SandRidge Mississippian Trust I (NYSE: SDT  ) . This investment vehicle comes from Oklahoma-based SandRidge Energy (NYSE: SD  ) and focuses on the exploration and production of domestic oil and natural gas in the Mississippi Lime region of Kansas and Oklahoma. The economics of this region are pretty compelling, and taken with the current U.S. energy boom, investors are interested.

Stats for the trust

Sources: Yahoo! Finance and company statements.

A look backward
This was the first year of existence for this SandRidge trust. It had its IPO in April, and investors were able to buy into an investment vehicle that reaps 90% of the royalties from 37 SandRidge Energy wells, and 50% of the royalties from 123 other wells, to be drilled by its parent company by Dec. 31, 2014.

An eye on the future
Parent company SandRidge recently inked a joint-venture ! deal wit h Repsol in the Mississippi Lime, an important provision of which excluded all wells and acreage associated with the trust.

Here’s a peek at the expected shareholder payout schedule for next year