I just finished reading the transcript of the cc yesterday. It sounds like SD can deliver a good return on capital with ng between $6.00 and $7.00 and a great return if prices were to go above $7.00.

They have some significant debt that will need to be reduced over the next two - three years and gas prices above $7 will go a long ways towards making a descent dent in this pile of debt.

A bet on SD is a bet that ng prices will be above $6 by third quarter 2010. They have no hedges in place for 2011, but obviously would be forced to do so if prices do not start to recover.