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SD - SandRidge Energy


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I hope that is what is being said behind the scenes.

 

I think SD has good assets, but convincing a few majors is probably easier then convincing the investment public. The credibility is shot, and it will take quite a bit of time for that to turn around, and to gain increases in the share price. I have mentally moved on, it would be nice to move the invested capital as well.

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Given the way SD was trading earlier this year, just hovering between $6.50 and $7.00, I still think offers were being bandied about in that range. The market is ferociously efficient pricing in deal talk, as evidenced by how Dell and Clearwire have traded around their various offers and rumors.

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Footnoted makes the case that Ward's exit package could actually be closer to $165 million in value!

 

http://www.footnoted.com/will-sandridge-ceo-really-only-get-90m/

 

"Ward is likely to get a gross-up to cover the tax bill. Gross-up math isn’t exactly straightforward, but based on other gross-ups we’ve seen, this could add another $60 million (or more) to the final bill.

 

Indeed, the proxy that Sandridge filed last month provides a bit more detail on the gross-up:

 

Mr. Ward is entitled to receive a gross-up payment equal to the amount of excise tax imposed plus all taxes imposed on the gross-up payment.

 

In plain English, that means a gross-up to cover the gross-up, which should add a few million more. Let’s put that at around $75 million, which could bring the total up to $165 million for Ward’s exit."

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Sandridge Voting ... A followup letter arrived from the company requesting that one be sure to vote ones shares for the upcoming annual meeting.  Normally I would not bother -- too few shares to matter.  Is there some concern related to the board or management changeover?  Only 3 directors up for election: Brewer, Gilliand, Serota.  Any comments from those who have studied the dynamics of this company's board?  Thanks, from woodstove.

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Vote them out! They are of the old guard or those who accepted this crazy severance package for Ward and closed their eyes on a ton of family dealings. They did not stood up for shareholders.

 

The reason why there are only 3 for election is that this company has a staggered board on top of it all. So if these guys are elected they are in for 3 years.

 

I think that they sent out the request one more time without any change to get the vote out as it is probably close. My view is that the more of them that we get out of there, the more shareholder oriented board members that we get or under the blessing of TPG-Axon, Leon Cooperman and Mount Kellett.

 

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Anyone going to the meeting on Monday?

 

I have asked an analyst that covers the company to do his best to keep me up to date with some color, as we are a client of his. Will fill you guys in if i hear anything meaningful from him....Anyone form the forum attending?

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I am dying to find out what is happening at the AGM!  Anyone heard any news?

 

Tks,

S

 

Anyone going to the meeting on Monday?

 

I have asked an analyst that covers the company to do his best to keep me up to date with some color, as we are a client of his. Will fill you guys in if i hear anything meaningful from him....Anyone form the forum attending?

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SD's focus area does not comprise their 1.8 million acres in the play but only a fraction of it. I would prefer if Bennett and others were more clear about how much is in this sweet spot and how is more speculative.

 

Range has more details on their Nemaha Ridge portion of the Miss. play.  Again looks like SD has missed the oiliest part of the play.

 

http://media.corporate-ir.net/media_files/IROL/10/101196/06.13.13_Company_Presentation.pdf

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Still think this will get sold in near term (like 3-6 months)?

 

Depends if they get a decent offer.  I think with the team they have in place, and the balance sheet is quite strong, they will develop the properties until they get an adequate offer.  No rush to give it away.  Cheers!

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Still think this will get sold in near term (like 3-6 months)?

 

Depends if they get a decent offer.  I think with the team they have in place, and the balance sheet is quite strong, they will develop the properties until they get an adequate offer.  No rush to give it away.  Cheers!

 

It is pretty darn clear from past communications that TPG and large shareholders like mount kellet and cooperman want a sale, so i think it will happen...eventually. With large board representation and shares in pocket that will become easier to implement. However, it will perhaps take time to find a buyer at the right price. I think it is likely a sale will come about eventually given the intentions TPG clearly communicated in recent months. I'm sure there is some discontent among employees of the company when you hear that hedge funds are taking over the board, talking about large cost cutting, firing the CEO, and talk of sellling the company. Naturally, that will put a damper on the perceived job security of employees. Who knows when it'll happen but a sale still seems fairly likely

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This stock has been acting poorly since TPG took over, pretty much miss out the whole rally plus some.

 

How long has TPG been in control?  Are things better or worse at SD? 

 

We all know that there is a fundamental disconnect at times between what is happening at a company and when the market finally values the business closer to intrinsic value.

 

Lastly, is this rally based on fundamentals or just capital needing a place to go because the risk-free rate has been artificially depressed for a prolonged period of time?  Maybe a good question for another thread!  ;D  Cheers!

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Another factor to consider is that WTI and Brent Crude are now only $3 apart or $105 vs $108 respectively. This is nowhere near the discount seen not that long ago which went as high as $27.68 in October 2011.

 

So something has definitely changed in terms of shipping oil out from the U.S. and Canadian inland and/or U.S. demand is much stronger than some make it to be.

 

This bodes well for Sandridge if we are to extrapolate some of the recent drilling successes in the Mississipian in terms of oil content and flows.

 

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