A proxy fight could be brewing at another Oklahoma City energy company.
Equal Energy Ltd, which moved its headquarters from Calgary, Alberta, earlier this year, is feeling the heat from one of its largest shareholders.
Montclair Energy LLC, whose principals developed Equal's assets in central Oklahoma's Hunton formation, is concerned about the company's ongoing strategy, the Alabama-based company said Friday.
Montclair first expressed an interest in acquiring Equal in February after a strategic review by Equal's board failed to result in a sale transaction.
Montclair contends Equal is not being operated effectively by its current management. It wants to take the company private to increase its value, but its acquisition offer was rebuffed by Equal's board.
Equal announced Nov. 18 it was negotiating with an unnamed party, but has not provided any details. A company official declined to comment when reached Friday by The Oklahoman.
Montclair said Friday it is concerned that Equal's current strategy could fail to maximize shareholder value or result in a viable transaction for them to consider.
Montclair had offered to acquire Equal for $4 a share, but that proposal was rejected by the company's board in March.
Equal's stock has risen since then — closing Friday on the Toronto Stock Exchange at $5.74 a share — but Montclair contends that was fueled by anticipation of a sale rather than confidence in Equal.
Montclair said it will mull its options, including exercising its rights to propose new directors for Equal's board.
Shareholder unrest resulted in management changes at two of Oklahoma City's largest energy companies this year, as Chesapeake Energy Corp. co-founder Aubrey McClendon and SandRidge Energy Inc. CEO Tom Ward were forced out of their positions.