alertmeipp Posted December 20, 2012 Share Posted December 20, 2012 Stock went back up above $7 in afterhour trading... That's weak Actually, I am not sure how big a pop to expect. What should be expected? looks like the market doesn't like the deal Link to comment Share on other sites More sharing options...
Redskin212 Posted December 20, 2012 Share Posted December 20, 2012 I would like to hear TPG comments regarding this sale - they after all are the catalyst for this sale. Link to comment Share on other sites More sharing options...
bmichaud Posted December 20, 2012 Share Posted December 20, 2012 I would like to hear TPG comments regarding this sale - they after all are the catalyst for this sale. They actually were not the catalyst - they announced they were pursuing the sale on Nov 8th, the same day TPG's first letter came out... http://investors.sandridgeenergy.com/phoenix.zhtml?c=196066&p=irol-newsArticle&ID=1756565&highlight= This is a very disappointing result. Change needs to happen and fast....TPG_1st_Letter.pdf Link to comment Share on other sites More sharing options...
alertmeipp Posted December 20, 2012 Share Posted December 20, 2012 the deal actually puts SD back into NG play. This move might mean TW is at least us slightly more bullish on gas than oil. The GOM assets got to go next. Link to comment Share on other sites More sharing options...
Myth465 Posted December 20, 2012 Share Posted December 20, 2012 Alert Tom Ward is just flopping around trying to hold on to his company, nothing more nothing less. I agree with TPG. The stock is down because the analyst cant figure out the strategy or the value of the Miss. Ward spent the last 3 years changing the strategy every 6 months. He also spent years billing the Miss as the best oil and gas place in the states based on IRR. The last call or two saw severe changes in strategy and a cutting of the Miss IRR from 90% to 45%. 45% is decent but who is to say thats valid. The market has no faith in the Miss value or in Management. Miss acre should be sold to firm up the value and Management must go. The market will keep the shares in the 6s until one or both of those happen. I think Mr. Market has this one right, on the bight side I dont see how Prem or anyone else votes with Management. Thats a vote for dead money for 3 years while they rebuild faith. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 20, 2012 Share Posted December 20, 2012 We will see. They underestimated Permian for 1.1 billion. 50% ROR still comparable to some of the best field and we are not paying anywhere close to Bakken. I am debating on quick buyout vs. long term value creation... A buyout can get us 10 bucks , vs. a home run if Tom stays the course for next couple years. The problem is nobody else is getting the scale in Miss (CHK has more acres but they only have 9 rigs there)...so we won't get many comparable transactions. CHK is looking to JV or a sale on theirs (2mm acres), maybe TW will get involved somehow which makes perfect sense. Sell Permian, Sell GOM, do a JV with CHK's and get much large scale right away. I hope at least TPG can replace the BOD to put some checks in place, this is not a private company after all. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 20, 2012 Share Posted December 20, 2012 Alert Tom Ward is just flopping around trying to hold on to his company, nothing more nothing less. I agree with TPG. The stock is down because the analyst cant figure out the strategy or the value of the Miss. Ward spent the last 3 years changing the strategy every 6 months. He also spent years billing the Miss as the best oil and gas place in the states based on IRR. The last call or two saw severe changes in strategy and a cutting of the Miss IRR from 90% to 45%. 45% is decent but who is to say thats valid. The market has no faith in the Miss value or in Management. Miss acre should be sold to firm up the value and Management must go. The market will keep the shares in the 6s until one or both of those happen. I think Mr. Market has this one right, on the bight side I dont see how Prem or anyone else votes with Management. Thats a vote for dead money for 3 years while they rebuild faith. Does FFH hold whole bunch of pfd, those 8% incoming stream may make Prem happy to wait it out? Link to comment Share on other sites More sharing options...
Myth465 Posted December 20, 2012 Share Posted December 20, 2012 Ya he is happy to wait due to preferreds but as TPG has said, no company can afford to spent what SD is spending on benefits and G&A and build shareholder value. Prem also needs the market to value SD accordingly to do well. Link to comment Share on other sites More sharing options...
zippy1 Posted December 20, 2012 Share Posted December 20, 2012 Ya he is happy to wait due to preferreds but as TPG has said, no company can afford to spent what SD is spending on benefits and G&A and build shareholder value. Prem also needs the market to value SD accordingly to do well. It seems that what is going on here is what was going on at CHK earlier. If Tom Ward is right to move to gap from oil, would it be better to sell out SD with a modest gain and buy CHK? Link to comment Share on other sites More sharing options...
Myth465 Posted December 20, 2012 Share Posted December 20, 2012 Perhaps but TPG might be able to sell SD for $9 to $10 a share, which would generate a fine gain in 3-6 months. One can take that and then buy CHK or any number of oil companies. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 20, 2012 Share Posted December 20, 2012 Ya he is happy to wait due to preferreds but as TPG has said, no company can afford to spent what SD is spending on benefits and G&A and build shareholder value. Prem also needs the market to value SD accordingly to do well. Yes, I agree that we need to change the BOD & management to put the benefits and G&A in checks, but not sure if I want a quick buyout for 9 bucks. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 20, 2012 Share Posted December 20, 2012 Ya he is happy to wait due to preferreds but as TPG has said, no company can afford to spent what SD is spending on benefits and G&A and build shareholder value. Prem also needs the market to value SD accordingly to do well. It seems that what is going on here is what was going on at CHK earlier. If Tom Ward is right to move to gap from oil, would it be better to sell out SD with a modest gain and buy CHK? Both are cheap. CHK has different problems and opportunities. It's still heavily leveraged to NG pricing. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 20, 2012 Share Posted December 20, 2012 btw, do you guys find it odd that SD was able to put together this deal so quick? Make me wonder if they actually get the best value from it. This could be partly because TW, as mentioned by Myth, urgently put this together to avoid being kicked out... now the pps comes down after the sale, TW's day is numbered?! Link to comment Share on other sites More sharing options...
Myth465 Posted December 21, 2012 Share Posted December 21, 2012 The deal was pretty much worked out before it was announced. That is how TW does things. I think he got a fair price, but the company cant afford its G&A nor its senior management costs. We also cant develop almost 2 million acres. Link to comment Share on other sites More sharing options...
bmichaud Posted December 21, 2012 Share Posted December 21, 2012 Repsol presentation on the SD JV: http://www.repsol.com/imagenes/es_en/Presentacion_EurotekSandRidge_tcm11-617660.pdf Find it interesting that the SD JV is Repsol's only U.S. exposure.... Link to comment Share on other sites More sharing options...
bmichaud Posted December 23, 2012 Share Posted December 23, 2012 Some articles on the Miss Lime - if estimates are to be believed, perhaps there is a method to Ward's madness.... http://www.kansascity.com/2012/12/16/3968169/mississippi-lime-formation-could.html http://www.ogj.com/articles/2012/08/mississippi-lime-play-sprawls-northward-into-nebraska.html http://www.marketintelligencecenter.com/articles/251069 http://www.tughilloperating.com/wp-content/uploads/2012/11/1012-Tug-Hill_Eprint.pdf Link to comment Share on other sites More sharing options...
zippy1 Posted December 23, 2012 Share Posted December 23, 2012 Some articles on the Miss Lime - if estimates are to be believed, perhaps there is a method to Ward's madness.... http://www.kansascity.com/2012/12/16/3968169/mississippi-lime-formation-could.html http://www.ogj.com/articles/2012/08/mississippi-lime-play-sprawls-northward-into-nebraska.html http://www.marketintelligencecenter.com/articles/251069 http://www.tughilloperating.com/wp-content/uploads/2012/11/1012-Tug-Hill_Eprint.pdf Thank you for posting these. Link to comment Share on other sites More sharing options...
zippy1 Posted December 24, 2012 Share Posted December 24, 2012 According to NewsOK, the sandridge vote is underway. Anyone has received notification on voting? SandRidge vote under way, company says SandRidge Energy Inc. shareholders will decide over the next two months if they want a leadership change at the Oklahoma City oil company. The future of SandRidge Energy Inc. is in the hands of its shareholders. SandRidge shareholders must decide if they want the company to continue under the stewardship of CEO Tom Ward and his team or turn it over to new management, as sought by investment firm TPG-Axon Capital. http://newsok.com/sandridge-vote-under-way-company-says/article/3739680 Link to comment Share on other sites More sharing options...
ourkid8 Posted December 24, 2012 Share Posted December 24, 2012 Not yet and I hope everyone is voting for leadership change. I would love to sell out of this investment to allocate the capital to Markel (especially as it is almost at book) but it is too tempting for a potential double from here... According to NewsOK, the sandridge vote is underway. Anyone has received notification on voting? SandRidge vote under way, company says SandRidge Energy Inc. shareholders will decide over the next two months if they want a leadership change at the Oklahoma City oil company. The future of SandRidge Energy Inc. is in the hands of its shareholders. SandRidge shareholders must decide if they want the company to continue under the stewardship of CEO Tom Ward and his team or turn it over to new management, as sought by investment firm TPG-Axon Capital. http://newsok.com/sandridge-vote-under-way-company-says/article/3739680 Link to comment Share on other sites More sharing options...
BargainValueHunter Posted December 24, 2012 Share Posted December 24, 2012 TPG sends a third letter to the BOD... http://www.fortmilltimes.com/2012/12/24/2402551/tpg-axon-sends-third-letter-to.html In the latest letter, TPG-Axon notes that it has filed a lawsuit in Delaware Chancery Court contesting the validity of the declared Initial Consent Date noted in SandRidge’s 8-K, dated December 21, 2012, relating to TPG-Axon’s proposals to amend the Company’s bylaws and remove and replace members of the current Board of Directors. TPG-Axon also stated that it plans to file consent solicitation documents with the U.S. Securities and Exchange Commission (the “SEC”) today. TPG-Axon is seeking to replace SandRidge’s entire Board of Directors with a slate of directors that are highly qualified, of high integrity, and driven by shareholder interest. After TPG-Axon’s consent solicitation is mailed to SandRidge shareholders in early January, SandRidge shareholders of record as of December 13, 2012 will have up to 60 days to submit their written consent for TPG-Axon’s proposals. Link to comment Share on other sites More sharing options...
Grenville Posted December 24, 2012 Share Posted December 24, 2012 Here's a link to the third letter. http://www.shareholdersforsandridge.com/wp-content/uploads/2012/12/Third_Letter_To_SandRidge_12_24_12.pdf I hope a lot of what they are saying about Ward isn't true. If it is, I wouldn't be too happy as an owner. Link to comment Share on other sites More sharing options...
zippy1 Posted December 24, 2012 Share Posted December 24, 2012 Originally, we have untill mid-Feb to vote. Does anyone know what Tom Ward wants to change the date to? If Tom is doing such things, how can "Fairfax" with Fair in its name support such behavior? I am asking this question as I do own some Fairfax shares. Now, the company attempts to shorten the period of time in which shareholders have to vote, claiming it has received consents in our solicitation - which is impossible as we have yet to even request them! These are all just additional examples of Tom Ward and the Board of Directors’ utter disregard for shareholder interests. Link to comment Share on other sites More sharing options...
fareastwarriors Posted December 24, 2012 Share Posted December 24, 2012 http://www.bloomberg.com/news/2012-12-24/tpg-axon-accuses-sandridge-ceo-ward-and-son-of-impropriety-1-.html TPG-Axon Capital Management LP, owner of 6.7 percent of SandRidge Energy Inc. (SD)’s outstanding shares, requested the company’s board investigate whether Chief Executive Officer Tom Ward and his son acted improperly with regard to acquiring mineral rights. Ward and his son, Trent Ward, acquired mineral rights from third parties and then leased those rights to Oklahoma City- based SandRidge “just weeks or months later” for profit, TPG- Axon said in a letter sent to the company’s board today. Greg Dewey, a spokesman for SandRidge, did not immediately respond to messages seeking comment. “It is our understanding that Mr. Ward and his son, Trent Ward, actively compete with the company, and in addition, have also engaged in repeated transactions in which they ‘front-run’ the company,” Dinakar Singh, chief executive officer of TPG- Axon, wrote in the letter. SandRidge has disclosed several transactions with Ward in its annual federal filing in March, including that it bought a working interest in leases from WCT Resources LLC, which is owned by trusts that are for the benefit of the CEO’s children. TPG-Axon sued Sandridge and its directors today in Delaware Chancery Court in Wilmington, asking a judge to stop any interference by Sandridge and to extend the start of the 60-day period of consent solicitation. TPG-Axon has previously called for a shareholder vote on replacing SandRidge’s board of directors. Ward founded SandRidge after leaving Chesapeake Energy Corp. (CHK) in 2006 and owns 5.2 percent of the company’s shares, according to data compiled by Bloomberg. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 25, 2012 Share Posted December 25, 2012 What a story, wonder if Prem knows about this. Link to comment Share on other sites More sharing options...
muscleman Posted December 26, 2012 Share Posted December 26, 2012 What a story, wonder if Prem knows about this. I knew TW won't easily give up the fight. Well at least I took the December 6th to 10th ride out of most of the long position, so I am just watching the drama going on now. Link to comment Share on other sites More sharing options...
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