SandRidge Energy Thursday responded to a shareholder's call for SandRidge CEO Tom Ward to resign and for the company's board to consider all strategic alternatives - including a possible sale - saying SandRidge's board of directors was "actively working" with management to improve Sandridge's performance.
"The Board and management value the opinions of our shareholders and are always open to constructive management with them," the company said in a statement. "While our perspectives on various points made in the letter from TPG-Axon differ in many distances, we agree that SandRidge has valuable assets and that we need to focus on improving performance for shareholders."
The Oklahoma City-based company plans to "engage substantively" with shareholders following the release of its third quarter earnings release Thursday afternoon.
New York-based TPG-Axon on Thursday called for SandRidge's board to be significantly reconfigured, with certain directors replaced by credible, independent directors, chosen after extensive consultation with large shareholders.
"In addition, large shareholders should be invited to join the board, if they so desire," TPG-Axon said in a statement.
SandRidge's board then must reconfigure the company's management, noting that said CEO Ward's credibility was too damaged to continue in his role.
"The company must bring in new management that is viewed as credible, experienced and highly competent," TPG-Axon said.
"TPG-Axon hopes management will work constructively with shareholders to achieve change, but their relentless focus will be on ensuring that necessary steps are taken to build and maximize shareholder value," TPG-Axon noted.
The global investment firm called SandRidge's stock "a disastrous performer", ranking in the bottom one percent of the broader market since the stock's initial public offering (IPO) in 2007. The company's stock has declined 76 percent since the IPO and over 91 percent from its peak in 2008.
The firm attributed the stock's dramatic decline to "incoherent, unpredictable and volatile" management strategy, "amplifying uncertainty regarding the future course of the company."
Poor strategic planning and reckless spending also have resulted in repeated 'financial emergencies' and caused massive dilution, soaring cost of capital and unnecessary risk.
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