SandRidge's management is under attack by TPG-Axon Capital, one of the company's largest shareholders. The hedge fund published a letter today stating its intent to change the company's board, as well as replace top management, in an attempt to boost the deeply valued share price of the oil and gas junior.

TPG-Axon argues that SandRidge's deplorable stock price is directly related to management's incoherent strategy and unscrupulous spending; in addition, it has a CEO who is unconscionably compensated for massive underperformance. TPG also points to SandRidge's past acquisitions and states that the company's "early focus was wrong in general" with regard to its focus on acquiring natural gas assets.

TPG-Axon hopes management will work with shareholders to achieve change by altering the board of directors in addition to hiring an advisor to explore all strategic options, including an outright sale of the company. But, with the current management team owning more than twice the shares of ATP-Axon, it's unlikely any direct changes will take place in the short term. If nothing else, this letter should act as a warning signal to the current management team that market confidence needs to be restored, starting with shareholder-friendly measures.

At the time of publication, Joel South owned no shares of the companies mentioned. The Motley Fool owns shares of Chesapeake Energy.