Mount Kellett Boosts Its Stake in SandRidge Energy Inc. (SD)

Page 1 of 2

At the beginning of January, SandRidge Energy Inc. (NYSE:SD), a $2.6 billion market cap exploration and production company which primarily produces natural gas, was one of the largest holdings by market value in Mount Kellett Capital Management’s portfolio. Find more stocks Mount Kellett owned. An activist battle has been brewing at SandRidge. On the one hand, investors such as Mount Kellett and TPG-Axon Capital Management have been trying to remove unpopular CEO Tom Ward; the CEO of peer Chesapeake Energy Corporation (NYSE:CHK) was recently forced outfollowing questionable business practices and a history of overexpansion, which may have emboldened the activists. On the other hand, some investors- including Prem Watsa’s Fairfax Financial Holdings- are standing by management.

Now Mount Kellett, which is managed by Mark McGoldrick and Jason Maynard, has filed with the SEC to disclose that it has purchased an additional 3 million shares of SandRidge Energy Inc. This brings the fund’s total ownership above 25 million shares and to 5.1% of the total shares outstanding. Recently, both the activists and the company came to an arrangement under which it is essentially TPG-Axon’s decision to either replace Ward or gain majority control over the Board of Directors. Shortly afterward, Ward sold a significant percentage of his stock holdings.

SandRidgeTPG-Axon (check out TPG-Axon’s favorite stocks), Mount Kellett, and Fairfax were three of the largest holders of SandRidge Energy Inc. (NYSE:SD) stock out of the hedge funds and other notable investors which we track in our database of 13F filings. They were joined by billionaire Leon Cooperman’s Omega Advisors, which initiated a position of over 24 million shares between October and December 2012; in an interview earlier this year, Cooperman claimed that his team had not made up their minds regarding the struggle over the company. See Cooperman’s stock picks.

SandRidge Energy Inc. (NYSE:SD)’s stock price has fallen 33% in the last year, and 14% of the outstanding shares are held short. Wall Street analysts expect the company to be unprofitable both this year and next year, at the same time that they are expecting Chesapeake to at least achieve positive earnings. We’d also note that SandRidge Energy Inc. (NYSE:SD)’s beta is 3.0, reflecting that the stock is very responsive to changes in broader market indices.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!