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SandRidge urges shareholder support

By: Sarah Terry-Cobo//The Journal Record//February 20, 2013//

SandRidge urges shareholder support

By: Sarah Terry-Cobo//The Journal Record//February 20, 2013//

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OKLAHOMA CITY – SandRidge Energy on Wednesday urged shareholders to support the company and reject proposed changes by a shareholder group that has initiated a proposal to restructure the board. In an open letter posted on the company’s website, SandRidge wrote that handing control to investment firm TPG-Axon Capital Management would jeopardize shareholders’ investments and prevent the company’s strategic drilling plan.

On Tuesday, TPG-Axon released several dozen documents of land purchases across 22 counties in Oklahoma and Kansas, alleging that the transactions represent a conflict of interest. The shareholder group accused CEO Tom Ward of conflict of interest because WCT Resources, a Ward family trust, sold land to SandRidge in the highly sought-after Mississippi Lime rock formation.

In its letter, SandRidge wrote that the board has found no evidence of wrongdoing regarding company transactions with WCT Resources. The transactions were reviewed and approved in advance by board members and disclosed the sales in public filings.

Dinakar Singh, founder of New York City-based TPG-Axon, said he’s unsatisfied with the board members’ response thus far. TPG-Axon owns 7 percent of the company’s shares.

“They’ve never really challenged our facts on the land acquisition,” he said.

J. Markham Collins, business professor at the University of Tulsa, said it is important for public companies to address perceived improprieties.

“I think the whole point of corporate governance is to protect minority shareholders,” Collins said. “The majority shareholders can protect themselves.”

Greg Dewey, spokesman for SandRidge, wrote in an email message that the company declined to comment.