Share “Another investor for Oklahoma City-based...”

Another investor for Oklahoma City-based SandRidge Energy calls for change

Investment firm Mount Kellett Capital Management LP is seeking management changes at SandRidge Energy Inc.
BY JAY F. MARKS Published: November 16, 2012

The heat on SandRidge Energy Inc. is rising.

Another large institutional investor is questioning the company's leadership, calling for the ouster of CEO Tom Ward and changes to SandRidge's board.

“We believe that — properly managed — the company's assets are worth approximately $20 per share,” Mount Kellett Capital Management LP wrote Thursday in a letter to SandRidge's board. “Unfortunately, all we see now are critical failures of management and board oversight.

“SandRidge has not merely failed to even remotely maximize the potential of its assets, but it has destroyed stockholder value.”

Mount Kellett is the second SandRidge investor in a week to call for change at the Oklahoma City-based oil company. TPG-Axon urged the company to replace Ward and some of its board members in a Nov. 8 letter.

“Lest the board believe that TPG-Axon's concerns are isolated ones, we are writing to add our views and be crystal clear that management and the board cannot ignore the interests of the company's stockholders any longer,” wrote Jonathan Fiorello, Mount Kellett's chief operating officer.

SandRidge spokesman Grey Dewey said the company's board and management value the opinions of shareholders as it works to improve performance.

Stock value has fallen

SandRidge's stock closed Thursday at $5.32 a share, up 13 cents, but it has dropped more than 35 percent since the first of the year.

Mount Kellet, which owns 22.2 million shares of SandRidge stock, estimates the company should be selling for at least $20 a share based on its asset base.

The investment firm wants the company to replace Ward as CEO and add independent directors to its board in consultation with its largest shareholders.

Continue reading this story on the...


  1. 1
    Multicounty grand jury seeks ouster of Rogers County commissioner
  2. 2
    Game warden won't be charged in April Adair County shooting
  3. 3
    Report: Pakistan on track to have world's 3rd largest nuclear arsenal
  4. 4
    Yellowstone visitor requests better trained bears
  5. 5
    Gym teacher charged with sexual battery bound for district court arraignment
+ show more


× Trending energy Article