TPG-Axon Capital, the hedge fund manager, has landed almost half of the seats at SandRidge Energy Corp's board. Despite such position, it still is facing an uphill climb in reversing the company's sluggish stock price.
The share values of SandRidge have fallen by 20% in this year alone to just US$5 per share. It also has low forecasts for its wells located in Oklahoma and Kansas as well as uncertainty as to the strategic direction of the company.
Natural gas prices have increased from low prices of the previous year remain depressed but has added pressure on SandRidge and its fellow energy companies to lower costs and increase overall efficiency.
There is also uncertainty over CEO Tom Ward, as he has been accused by TPG-Axon of making strategic mistakes as well as self-dealing at the expense of its shareholders. A deal was reached last March that stipulated that Ward has to go by June 30 or give TPG-Axon the majority control over the seats in the board of directors.
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