SandRidge (UNKNOWN:SD.DL) 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.
Joel South owns shares of SandRidge Energy. Fool contributor Tyler Crowe has no positions in the stocks mentioned above. The Motley Fool has the following options: long JAN 2013 $16.00 calls on Chesapeake Energy, long JAN 2014 $20.00 calls on Chesapeake Energy, long JAN 2014 $30.00 calls on Chesapeake Energy, and short JAN 2014 $15.00 puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.