What CEO’s Probable Removal Means for SandRidge Energy Inc. (SD)

Out from under McClendon’s reign, the company is reining in spending, selling under-performing and economically unsound assets. It’s a good start and offers potential for Chesapeake future.

Hess too recently caved to activist investors. The company just agreed to replace six board members and sell a variety of assets amid persistent prodding from investor Elliott Associates to break up the company’s energy empire.

By 2015, Hess will have exited its retail and marketing business. Company focus will be on exploration and production. Hess also announced a share buyback of up to $4 billion, and it boosted its dividend from 40 cents to a buck. Shares jumped on the news, and the upward momentum has continued.

As for SandRidge Energy Inc. (NYSE:SD), speculation has been around for some time that the company is a takeover target. With Ward out of the way, that scenario seems likely.

The recent flurry of M&A activity, growing demand for cheap, clean natural gas, and SandRidge’s proved and potential reserves all make for a good argument that it could be taken out. Then there is SandRidge’s depressed share price.

Global natural gas demand is exploding. All things considered, SandRidge Energy Inc. (NYSE:SD) looks like a natural to do a deal.

The article What CEO’s Probable Removal Means for SandRidge originally appeared on Fool.com and is written by Diane Alter.

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