Wired News – Activist Investor Carl Icahn Acquires 13.51% Stake in Sandridge Energy; Second Major Investor to Oppose Sandridge Energy-Bonanza Creek Energy Deal

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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