TPG-Axon Sends Letter to SandRidge Energy′s Board of Directors

TPG-Axon, owners of more than 4.5% of the outstanding shares of
SandRidge Energy, Inc. (NYSE: SD), sent a letter today to SandRidge′s
Board of Directors.

In the letter, TPG-Axon outlines the following:

• 
  SandRidge stock has been a disastrous performer. It has been the
  single worst performing energy stock in the US market, and in the
  bottom 1% of the broader market, since its IPO in 2007. SandRidge
  stock has declined 76% since its 2007 IPO, and over 91% from its peak
  in 2008.
  
• 
  The market has lost confidence in management, which is reflected in
  the greatest discount to current Net Asset Value of any US energy
  company.
  
• 
  The dramatic decline in the stock, and massive discount to Net Asset
  Value, has been caused by three factors:
  
  
  • 
    Management strategy has been incoherent, unpredictable, and
    volatile, amplifying uncertainty regarding the future course of
    the company;
    
  • 
    Poor strategic planning and reckless spending have resulted in
    repeated "financial emergencies′, and caused massive dilution,
    soaring cost of capital, and unnecessary risks for shareholders;
    and,
    
  • 
    Corporate governance has been appalling, which has drained massive
    value from shareholders and completely misaligned management and
    shareholder interests.
    
• 
  Despite management missteps, SandRidge shares offer extraordinary
  value. On a standalone basis, fair value for SandRidge stock is $12 to
  14, with significantly greater upside possible through a strategic
  sale or sensible development of assets in coming years.
  
• 
  As a result, in order to unlock the value of the company in the best
  interests of shareholders, TPG-Axon calls for:
  
  
  • 
    The Board of Directors must be significantly reconfigured, with
    certain directors replaced by credible, independent directors,
    chosen after extensive consultation with large shareholders. In
    addition, large shareholders should be invited to join the board,
    if they so desire.
    
  • 
    The Board must then reconfigure management and leadership of the
    company. TPG-Axon believes CEO Tom Ward′s credibility is too
    damaged to continue in his role. The company must bring in new
    management that is viewed as credible, experienced, and highly
    competent.
    
  • 
    The Board should hire an advisor to explore all strategic
    alternatives. Given the difficult challenge of restoring
    confidence, the Board must also consider whether the value of the
    company′s assets will instead be maximized through a sale to
    another company.
    
• 
  TPG-Axon hopes management will work constructively with shareholders
  to achieve change, but their relentless focus will be on ensuring that
  necessary steps are taken to build and maximize shareholder value
  

The full text of the letter can be found attached.

Photos/Multimedia
Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50470829&lang=en

About TPG-Axon Capital

TPG-Axon Capital is a leading global investment firm. Through offices in
New York, London, Hong Kong and Tokyo, TPG-Axon invests across global
markets and asset classes. The firm was founded by Dinakar Singh in late
2004 in partnership with TPG Capital.

for TPG-Axon Capital

Anton Nicholas, 203-682-8200

Anton.Nicholas@icrinc.com

Phil
Denning, 203-682-8200

Phil.Denning@icrinc.com

Jason
Chudoba, 203-682-8200

Jason.Chudoba@icrinc.com