Stock Monitor: Kelso Technologies Post Earnings Reporting
LONDON, UK / ACCESSWIRE / November 27, 2017 / Active-Investors issued a free report on SandRidge Energy, Inc. (NYSE: SD) ("SandRidge"), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=SD as the Company's latest news hit the wire. Activist Investor Carl Icahn, who recently upped his stake in SandRidge on November 23, 2017, has come out against the proposed SandRidge and Bonanza Creek Energy Inc. (NYSE: BCEI) ("Bonanza Creek") deal. Carl Icahn had via a regulatory filing with the US Securities and Exchange Commission (SEC) on November 15, 2017, disclosed that he and his affiliates have acquired 13.5% in SandRidge. Carl becomes the largest shareholder in the Company and the second investor to oppose the proposed SandRidge-Bonanza Creek deal. Sign up now for our free research reports at: www.active-investors.com/registration-sg.
Active-Investors.com is currently working on the research report for Kelso Technologies Inc. (NYSE American: KIQ), which also belongs to the Basic Materials sector as the Company SandRidge Energy. Do not miss out and become a member today for free to access this upcoming report at: www.active-investors.com/registration-sg/?symbol=KIQ.
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, SandRidge most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at: www.active-investors.com/registration-sg/?symbol=SD.
The SandRidge-Bonanza Creek deal
SandRidge announced the acquisition of Bonanza Creek on November 15, 2017, in a cash plus stock deal valued approximately $746 million of which the cash portion is $398 million and remainder in approximately 18.89 million of SandRidge's shares. SandRidge's Board of Directors have already approved the deal. The deal is expected to close in Q1 2018 and is waiting for clearance from its shareholders and regulatory authorities. The deal is expected to be accretive to SandRidge's cash flows from Q1 2018 and result in significant cost, technical, and operational synergies. Commenting on the deal, James Bennett, CEO of SandRidge, had said:
"This acquisition greatly enhances our existing portfolio by adding a deep inventory of drill-ready locations in the DJ Basin of Colorado and is highly complementary to our existing North Park, Northwest STACK and Mississippian assets."
Carl Icahn's stance on the SandRidge-Bonanza Creek deal
Carl has been acquiring SandRidge's shares since October 2017 when the shares were undervalued. He increased his holding in the Company after the announcement of the SandRidge-Bonanza Creek deal. Carl has disclosed in the SEC filing that he agrees with Fir Tree Partners, who have opposed the SandRidge-Bonanza Creek deal via a press communication dated November 20, 2017. He agreed with Fir Tree' assessment which states that the transaction "reminds us of SandRidge's prior history when this same management team acquired disparate assets and added leverage with reckless abandon". Both have a history of emerging from bankruptcy proceedings, SandRidge in October 2016 while Bonanza Creek emerged from Chapter 11 proceedings in April 2017.
Carl has emphasized that he intends to vote against the "nonsensical Bonanza transaction". Although Carl has not met with the other majority stockholders, he has taken cognizance of the fact that other major investors of SandRidge including Susquehanna Advisors who own 4% stake and Cannell Capital who own 1.5% stake, are not in favour of the deal and are planning to vote against it.
Carl has indicated that he would be meeting up with the management of SandRidge including James Bennett, the CEO, soon. Carl intends to find out the Company's rationale behind the decision to acquire Bonanza Creek. Carl has also plans to have discussions with the Company's Board members, shareholders, and other stakeholders to evaluate the situation. Carl has indicated that he may also suggest looking at other strategic alternatives for the Company and make changes in the composition of the Company's Board.
Fir Tree Partners' Opposition and their stand
Founded in 1994, New York based Fir Tree is a private investment firm that invests worldwide in public and private companies, real estate, and sovereign debt. Fir Tree manages assets on behalf of leading endowments, foundations, pension funds, and sovereign wealth funds.
Fir Tree own approximately 8.3% stake in SandRidge and is one of the largest shareholders in the Company. They have strongly opposed the proposed SandRidge-Bonanza Creek deal. Fir Tree believes that the deal does not make any economic or strategic sense as the deal will dilute SandRidge's value, drain its entire cash balance and force it to increase its RBL facility and issue SandRidge's undervalued equity. The situation will lead the Company back to its post-bankruptcy position, where the Company's management had "acquired disparate assets and added leverage with reckless abandon".
Commenting on the deal, Evan Lederman and David Proman, Managing Directors at Fir Tree, had said:
"We believe this proposed acquisition represents a complete about face by management on its post-bankruptcy strategy and would be extremely value destructive to shareholder value. Fir Tree is opposed to the proposed transaction and intends to vote against this nonsensical and overpriced acquisition."
About Carl Icahn
Carl C. Icahn is the CEO of Icahn Capital LP, a wholly owned subsidiary of Icahn Enterprises L.P. (NASDAQ: IEP), a Delaware master limited partnership. Icahn Enterprises is a diversified holding Company engaged in a variety of businesses, including investment management, metals, mining, energy, automotive, real estate, railcar, food packaging, gaming, and home fashion. Carl manages various private investment funds through these and other affiliated entities. Carl has a reputation of activist investor and shareholder advocate.
About SandRidge Energy, Inc.
Oklahoma City, Oklahoma based SandRidge is an oil and natural gas exploration and production Company with principal focus on developing high-return, growth-oriented projects in Mid-Continent and Niobrara Shale in US.
Stock Performance Snapshot
November 24, 2017 - At Friday's closing bell, SandRidge Energy's stock climbed 8.00%, ending the trading session at $18.90.
Volume traded for the day: 1.10 million shares, which was above the 3-month average volume of 336.79 thousand shares.
Stock performance in the last month – up 5.53%; and previous three-month period – up 6.42%
After last Friday's close, SandRidge Energy's market cap was at $623.89 million.
Price to Earnings (P/E) ratio was at 0.15.
The stock is part of the Basic Materials sector, categorized under the Oil & Gas Drilling & Exploration industry. This sector was up 0.3% at the end of the session.
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