SandRidge (NYSE: SD) Chairman and CEO Tom Ward announced that the company is selling its 225,000 acres in the Permian Basin for $2.6 billion, giving the company a much needed infusion of cash which will be used to pay down debt and help fund its Mississippian Lime production.
While the company's original plan was to use the Permian Basin as a way to fund its expansion into the Mississippian Lime, this deal could not play out the way management was originally expecting. This sale comes on the heals of letters published by large SandRidge shareholders TPG-Axon and Mount Kellett Capital Management asking for the a shake-up in management and new independent board members. Check out the video below for more information on the deal and what it means for long-term shareholders.
