TPG-Axon’s Continued Investigation Reveals Undeniable Pattern of Conflicted
Related-Party Transactions at SandRidge Energy
- Evidence Suggests Undeniable Pattern of Unacceptable Conflicts of Interests
- Contrary to SandRidge Assertions, Transactions Appear to Constitute Large
Amounts of Land –
- SandRidge Spending Roughly 80 Percent of Market Cap Annually, Potentially
Making the Ward Family One of the Biggest Beneficiaries of This Spending -
- Presentation Detailing Latest Findings Available at
NEW YORK -- February 19, 2013
TPG-Axon, beneficial owner of seven percent of the outstanding shares of
SandRidge Energy, Inc. (NYSE: SD) (the “Company”), today announced that a
second presentation detailing the wide scope of SandRidge’s related-party land
transactions can be found by visiting www.Shareholdersforsandridge.com.
In the presentation, TPG-Axon outlines what it believes to be an undeniable
pattern of conflicted related-party transactions of large proportions with
entities related to Tom Ward and his family. TPG-Axon’s ongoing and exhaustive
investigation has identified that WCT Resources, a company owned and
controlled by trusts established by Tom Ward for the benefit of his children,
owns mineral rights adjacent to SandRidge in 22 counties in Oklahoma and
Kansas which make up part of the Mississippian Lime formation, the Company’s
primary oil and natural gas play.
Based on a thorough review of the aforementioned 22 counties, TPG-Axon has
found that WCT Resources controls roughly 475,000 acres throughout the
Mississippian. TPG-Axon believes this acreage count makes WCT Resources the
fifth largest exploration and production (E&P) company in the Mississippian,
behind only SandRidge, Chesapeake Energy, Shell and Devon Energy, and a direct
competitor of SandRidge.
TPG-Axon is concerned not only by the scale of WCT Resources’ involvement in
the Mississippian, but by the suspicious timing of the company’s purchases.
TPG-Axon has discovered that in many instances, WCT Resources and SandRidge
actively acquire acreage within weeks and months of each other. Contrary to
SandRidge’s claims, based on the data TPG-Axon has reviewed, this pattern of
activity is not rare; it is now clear that the degree of overlap and
competition is truly massive.
TPG-Axon believes the adjacent land WCT Resources acquired could be worth
billions of dollars if SandRidge’s efforts to build infrastructure and ‘prove
out’ acreage in the Mississippian are successful. SandRidge projects it will
spend roughly 80 percent of its entire remaining market capitalization this
year to, among other things, increase the value of its Mississippian mineral
rights, which could make the Ward family one of the biggest beneficiaries of
TPG-Axon reiterates its belief that the fact pattern surrounding the
related-party land transactions outlined in its presentations dated February
19, 2013 and January 23, 2013 suggests SandRidge stockholders may have been
disadvantaged by the actions of entities related to Mr. Ward or his immediate
TPG-Axon urges stockholders of record as of December 13, 2012 to vote the
GREEN consent card in favor of its proposals to amend the Company’s bylaws and
replace SandRidge’s entire Board of Directors with its slate of highly
qualified director nominees. TPG-Axon requests that stockholders return their
signed and dated GREEN consent cards promptly, to ensure that their consent
cards are received by SandRidge prior to March 15, 2013, the deadline for
About TPG-Axon Capital
TPG-Axon Capital is a leading global investment firm. Through offices in New
York, London, Hong Kong and Tokyo, TPG-Axon invests across global markets and
TPG-AXON MANAGEMENT LP, TPG-AXON PARTNERS GP, L.P., TPG-AXON GP, LLC, TPG-AXON
PARTNERS, LP, TPG-AXON INTERNATIONAL, L.P., TPG-AXON INTERNATIONAL GP, LLC,
DINAKAR SINGH LLC AND DINAKAR SINGH (COLLECTIVELY, “TPG-AXON”) HAS FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION (THE “SEC”) A DEFINITIVE CONSENT
STATEMENT AND ACCOMPANYING CONSENT CARD TO BE USED TO SOLICIT WRITTEN CONSENTS
FROM THE STOCKHOLDERS OF SANDRIDGE ENERGY, INC. IN CONNECTION WITH TPG-AXON'S
INTENT TO TAKE CORPORATE ACTION BY WRITTEN CONSENT. ALL STOCKHOLDERS OF
SANDRIDGE ENERGY, INC. ARE ADVISED TO READ THE DEFINITIVE CONSENT STATEMENT
AND OTHER DOCUMENTS RELATED TO THE SOLICITATION OF WRITTEN CONSENTS BY
TPG-AXON, STEPHEN C. BEASLEY, EDWARD W. MONEYPENNY, FREDRIC G. REYNOLDS, PETER
H. ROTHSCHILD, ALAN J. WEBER AND DAN A. WESTBROOK (COLLECTIVELY, THE
"PARTICIPANTS") FROM THE STOCKHOLDERS OF SANDRIDGE ENERGY, INC. BECAUSE THEY
CONTAIN IMPORTANT INFORMATION, INCLUDING ADDITIONAL INFORMATION RELATED TO THE
PARTICIPANTS. THE DEFINITIVE CONSENT STATEMENT AND FORM OF WRITTEN CONSENT
HAVE BEEN FURNISHED TO SOME OR ALL OF THE STOCKHOLDERS OF SANDRIDGE ENERGY,
INC. AND ARE, ALONG WITH OTHER RELEVANT DOCUMENTS, AVAILABLE AT NO CHARGE ON
THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, TPG-AXON WILL PROVIDE
COPIES OF THE DEFINITIVE CONSENT STATEMENT AND ACCOMPANYING CONSENT CARD
WITHOUT CHARGE UPON REQUEST.
INFORMATION ABOUT THE PARTICIPANTS AND A DESCRIPTION OF THEIR DIRECT OR
INDIRECT INTERESTS BY SECURITY HOLDINGS IS CONTAINED IN THE DEFINITIVE CONSENT
STATEMENT ON SCHEDULE 14A FILED BY TPG-AXON WITH THE SEC ON JANUARY 18, 2013.
THIS DOCUMENT CAN BE OBTAINED FREE OF CHARGE FROM THE SOURCES INDICATED ABOVE.
MacKenzie Partners, Inc.
Dan Burch or Larry Dennedy, 212-929-5500
Anton Nicholas, 203-682-8245
Phil Denning, 203-682-8246
Jason Chudoba, 646-277-1249
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