SandRidge Energy Inc. released a letter to shareholders Wednesday, offering a rebuttal to what it called a “false and misleading campaign” by activist shareholders.
New York-based TPG-Axon Capital has asked SandRidge shareholders to replace the Oklahoma City energy company's directors in part because the company's stock price has tumbled 80 percent since the company's initial public offering.
“TPG-Axon simply does not have the facts straight,” SandRidge said in the statement. “Their campaign and ‘consent solicitation' is based on false, misleading and inflammatory statements regarding management, the board and the company — statements that are designed to distract you from the truth.”
The shareholder vote is scheduled to conclude March 15.
SandRidge on Wednesday addressed several of what it said are misleading statements by TPG-Axon, which owns 7 percent of SandRidge's outstanding stock.
The shareholder group has questioned SandRidge's financial performance and financial strength and has pointed out that its overhead spending is the highest of any peer company.
SandRidge said that it has exceeded analyst consensus estimates for earnings before interest, taxes, depreciation and amortization for each of the past five quarters and that the company's estimates of returns for Mississippian wells have been consistent with competitors.
The company also said its cost of capital is below its peers and that its net debt ratios declined over the last half of 2012 because of asset sales.
TPG-Axon also has claimed that CEO Tom Ward's large compensation and his family's personal investment in the Mississippi Lime have made his personal interests misaligned from those of the company's shareholders. The shareholder group also has pointed out that Ward has sold 75 percent of his personal stake in SandRidge.
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