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I think it's odd how tightly SD's stock price has clung to this 6.75 to 7.00 range over the past two weeks. Not huge volume, but the price action is strange enough to make me wonder if there isn't some type of 7 to 8 buyout negotiation going on behind the scenes. Not dissimilar to how Dell climbed just above $13 the day after the initial rumor broke and just before the announcement a 13.50 to 14 offer may be on the table. Who knows though, could just be happenstance.

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As I said its in Wards best interest to sell the company. If he losses the board he will be terminated with cause. I would sell the company now for $10 and get my parachute. With that he cant start another oil and gas company or turn WCT into one  :)

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As I said its in Wards best interest to sell the company. If he losses the board he will be terminated with cause. I would sell the company now for $10 and get my parachute. With that he cant start another oil and gas company or turn WCT into one  :)

 

I think that $12 would be a better price.... :D

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I think it's odd how tightly SD's stock price has clung to this 6.75 to 7.00 range over the past two weeks. Not huge volume, but the price action is strange enough to make me wonder if there isn't some type of 7 to 8 buyout negotiation going on behind the scenes. Not dissimilar to how Dell climbed just above $13 the day after the initial rumor broke and just before the announcement a 13.50 to 14 offer may be on the table. Who knows though, could just be happenstance.

 

That would be rough, and would piss everyone off. I dont see it happening. FFH, River, TPG, Mount Kelly, and any other LT shareholder would vote against it. At 9, I am happy, but would prefer $10 or $11.

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Susquehanna note via Bloomerg:

 

 

By Arie Shapira and Clyde Eltzroth

    Jan. 22 (Bloomberg) -- SandRidge has “appealing upside”

regardless of March 15 activist vote deadline outcome,

Susquehanna analyst Duane Grubert writes in note.

• Expects “modest” share buybacks and/or new partnerings given $2.6b of Permian sales proceeds due in 1Q

• Sees potential for SD to be sold prior to conclusion of activist vote

• Susquehanna rates SD positive, PT $12

 

 

 

A buyback would be shocking, to say the least. This thing is hideous from a cash flow standpoint on a standalone basis.

 

 

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Prem's position on SD/Ward is adding an interesting angle to this while situation. You'd think Prem would want $12, then move to the next idea. Hmmmm. I still think there will be enough pressure from other large investors to envoke change.

 

Prem would clean up. His converts I believe are striked at between $8 and $10. Most of the new shares were bought in the 6s. Seems like a no brainer.

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It would be interesting to see if Ward ultimately wins or losses in a take under. He was paid handsomely over the last few years, but has basis on his stock and will have a capital loss. He also would likely be dismissed with cause if he doesnt sale it prior to the vote.

 

At $11 I would be quite the happy camper.

 

Just read the letter - My guess is with the sales over the last few years he did ok.

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http://professional.wsj.com/article/SB10001424127887323539804578263581448097500.html?mod=WSJ_business_whatsNews&mg=reno64-wsj

 

SandRidge Says No Wrongdoing by CEO Found .

 

 

 

SandRidge Energy Inc. SD +0.17%said its board reviewed investors' allegations of Chairman and Chief Executive Tom Ward benefiting from mineral rights sold to the oil-and-gas producer and has found no wrongdoing.

 

SandRidge has come under increased pressure from certain shareholders to shake up its board, to replace Mr. Ward and to explore a possible sale of the company. Investment firm Mount Kellett Capital Management LP had called for the suspension of Mr. Ward earlier this month over allegations he and his son benefited from mineral rights sold through WCT Resources LLC, an independent oil-and-gas company formed in 2002 for Mr. Ward's children. Mount Kellett owns about 4.5% of SandRidge's shares.

 

TPG-Axon Capital Management LP, which owns about 6.7% of SandRidge's stock outstanding, said Wednesday it hired investigators to comb through Oklahoma and Kansas court records as part of its effort to convince SandRidge's shareholders to overthrow the current board and amend the company's bylaws. TPG-Axon filed last month to seek shareholder approval in order to change the energy company's bylaws and replace its entire board of directors, including Mr. Ward.

 

SandRidge said Friday its independent directors will consider the requests of TPG-Axon and Mount Kellett for the appointment of independent counsel and other investigative measures concerning the activities surrounding their allegations.

 

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http://www.fortmilltimes.com/2013/01/29/2465134/law-offices-of-howard-g-smith.html

 

BENSALEM, Pa. --

 

Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of shareholders of SandRidge Energy, Inc. (“SandRidge” or the “Company”) (NYSE:SD). The investigation concerns possible breaches of fiduciary duties by the Company or its fiduciaries.

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I received the consent solicitation.  Who are you guys voting for?  I liked TPG-Axon's approach but the guys they are nominating have little O&G experience so I assume they would sell the company. But wouldn't selling the company in such a manner (having primarily financial guys on our side of the table) put SD at a disadvantage versus the buyers who have experienced oil guys at the table?  In essence, SD is a forced seller?  Does anyone know what FFH's position is?  I would have like to have seen TPG provide more O&G guys so if the sale doesn't happen there is an alternative.

 

Packer

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SandRidge Mississippian Trust units tumble 14 pct.

http://finance.yahoo.com/news/sandridge-mississippian-trust-units-tumble-180638045.html

 

Shares of SandRidge Mississippian Trust II tumbled Friday after the owner of oil and natural gas wells announced a lower-than-expected distribution for the fourth-quarter because of a drop in sales volumes.

 

SandRidge Mississippian declared a distribution of 53.3 cents per unit. The distribution will take place on or before March 1 and will go to shareholders of record as of Feb. 14. The trust said that for the three months ended Nov. 30, its sales volumes fell 7 percent compared to the same period a year ago.

 

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SandRidge Mississippian Trust units tumble 14 pct.

http://finance.yahoo.com/news/sandridge-mississippian-trust-units-tumble-180638045.html

 

Shares of SandRidge Mississippian Trust II tumbled Friday after the owner of oil and natural gas wells announced a lower-than-expected distribution for the fourth-quarter because of a drop in sales volumes.

 

SandRidge Mississippian declared a distribution of 53.3 cents per unit. The distribution will take place on or before March 1 and will go to shareholders of record as of Feb. 14. The trust said that for the three months ended Nov. 30, its sales volumes fell 7 percent compared to the same period a year ago.

 

I think this is somewhat expected. I will get some common at low 6.

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A vote for TPG-Axon Group slate of directors essentially means you want to put the company up for sale ($10-$14/share) and a vote for Sandridge's current directors would be more of the same.  (excess spending, destroying shareholder value,  and numerous unethical behaviour)  I am seriously surprised after all those allegations Fairfax will continue to support TW.  We all agree there is value and SD really it needs a strong operator to run this company to create shareholder value.

 

My vote will be towards TPG-Axon to sell this company so I can allocate the capital into high quality companies with management committed to creating shareholder value.  I have received the WHITE card (Sandridge's card) so far and waiting for TPG-Axon's green card. 

 

tks,

S

 

I received the consent solicitation.  Who are you guys voting for?  I liked TPG-Axon's approach but the guys they are nominating have little O&G experience so I assume they would sell the company. But wouldn't selling the company in such a manner (having primarily financial guys on our side of the table) put SD at a disadvantage versus the buyers who have experienced oil guys at the table?  In essence, SD is a forced seller?  Does anyone know what FFH's position is?  I would have like to have seen TPG provide more O&G guys so if the sale doesn't happen there is an alternative.

 

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sounds like a plan:

 

http://www.shareholdersforsandridge.com/wp-content/uploads/2013/02/Creating-Value-at-SandRidge.pdf

 

but I am afraid that Fairfax with a debt interest thinks otherwise  :)

 

I have a feeling TPG won't prevail at the end

 

 

A vote for TPG-Axon Group slate of directors essentially means you want to put the company up for sale ($10-$14/share) and a vote for Sandridge's current directors would be more of the same.  (excess spending, destroying shareholder value,  and numerous unethical behaviour)  I am seriously surprised after all those allegations Fairfax will continue to support TW.  We all agree there is value and SD really it needs a strong operator to run this company to create shareholder value.

 

My vote will be towards TPG-Axon to sell this company so I can allocate the capital into high quality companies with management committed to creating shareholder value.  I have received the WHITE card (Sandridge's card) so far and waiting for TPG-Axon's green card. 

 

tks,

S

 

I received the consent solicitation.  Who are you guys voting for?  I liked TPG-Axon's approach but the guys they are nominating have little O&G experience so I assume they would sell the company. But wouldn't selling the company in such a manner (having primarily financial guys on our side of the table) put SD at a disadvantage versus the buyers who have experienced oil guys at the table?  In essence, SD is a forced seller?  Does anyone know what FFH's position is?  I would have like to have seen TPG provide more O&G guys so if the sale doesn't happen there is an alternative.

 

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TPG's presentation is interesting, particularly the "field-level" EBITDA analysis. Ironically, I did precisely the same analysis two weeks ago, looking at "stacked production" in order to ascertain when SD would actually start generating sustainable cash flow.... I subsequently exited the stock after concluding there is ZERO margin of safety if the status quo is maintained. IMO, even TPG's best case scenario is a stretch, as it assumes SD is worth 8x Miss Lime operating cash flow....

 

I'm seriously starting to question the validity of any and all NAV calculations for the sector. SD's NAV is an utter fantasy (I'm shocked Fairfax is such a proponent of the company) and from what I can tell, so is Elliot's NAV work on Hess.

 

This sector is quickly making its way into the "too hard" pile....

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TPG's presentation was very interesting. It's hard to see how FFH can honestly say they back TW. The facts don't lie, there's been an awfull lot of value destruction. The "related party transaction" appendix is painful to read as an "owner". As for the NAV's, I learned to give  them a 20% haircut, for added conservitism.

 

I wonder if TPG has called Icahn.  ;)

I'm still waiting for my green card.

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Can we say it's shameless threat ?

 

http://www.reuters.com/article/2013/02/08/sandridge-ward-idUSL4N0B86MV20130208?feedType=RSS&feedName=marketsNews&rpc=43

 

This thing is going crazy...

 

TPG's presentation was very interesting. It's hard to see how FFH can honestly say they back TW. The facts don't lie, there's been an awfull lot of value destruction. The "related party transaction" appendix is painful to read as an "owner". As for the NAV's, I learned to give  them a 20% haircut, for added conservitism.

 

I wonder if TPG has called Icahn.  ;)

I'm still waiting for my green card.

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Is Mount Kellett Cap, officially on board/ backing TPG? Hmmmm, we really need Carl to come in a stomp out TW and crew.

BTW, here's some info on the Sandridge Airforce:

 

Tom and the sd board really like airplanes. Here's a list of the fleet.

 

 

 

N552SD

 

 

 

Tom's ride, a Falcon 900. This baby has 3 engines and transcontinental range.

 

Registered to Cornhusker LLC on March 2, 2012 a subsiderary of SD. however, the plane has Sandridge painted on it

 

Puchase price $21,000,000

 

 

 

N551SD

 

 

 

This is Grub's and White's ride, a Challenger 600.

 

Registered to Sandridge on July 25, 2009

 

Purchase price $5,500,000

 

 

 

N554SD

 

 

 

A Citation 560

 

Registered to Sandridge on Aug. 26 2011

 

Purchase price $3,200,000

 

 

 

N553SD

 

 

 

A Citation S550

 

Registered to Sandridge on July 13th, 2007

 

Purchase price unknown

 

 

 

You can view the pictures of the beautiful birds,registration info, and flight tracking of the 2 smaller jets, the big boys block their flights, at flightaware . Just type in the N# of the plane you want to see, and click on the picture or registration.

 

 

 

Since Tom Ward's salary and new airplane purchase cost the company $51,000,000 in 2012, plus thecosts of operation (including 12 pilots, 2 flight attendents, 3 mechanics) I guess you could say Tom and board do have our interests at heart.....but only if you like airplanes.

 

 

I know the operating capabilities of most of these airplanes, and a simple Citation 550 would get TW and crew to most of SD's fields quite easily.

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