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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

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!