SandRidge Center & Commons

[Kerry]

It's the guy's company - his legacy, his baby. It's categorically different than some secretary putting 100% of their 401k in the Enron company stock.

Go tell that to Aubrey McClendon. Baby or not, you have to be smart with your money. I am not saying Aubrey and Tom are not smart but when you have that kind of money you need to seperate it from your own business In reality I am sure Aubrey and Tom did just that). After all, the point of starting a company is to make money. It is the same reason no one ever beats the house in Vegas. Take your winnings and diversify; don't just keep playing the same game.

[onthestrip]

Go tell that to Aubrey McClendon. Baby or not, you have to be smart with your money. I am not saying Aubrey and Tom are not smart but when you have that kind of money you need to seperate it from your own business In reality I am sure Aubrey and Tom did just that). After all, the point of starting a company is to make money. It is the same reason no one ever beats the house in Vegas. Take your winnings and diversify; don't just keep playing the same game.

They did, the Thunder. I bet they are wishing they had that money back though. Two things stand out here. How is 23% of the company's stock only worth 50 mil. The other is that in the end this will make Kaiser even more wealthy. I guess it pays to have 50 mil in cash lying around.

[Kerry]

When Sandridge was worth a couple of billion dollar Tom Ward should have been cashing out, not buying more. This all reminds me of CBS and the NFL about 15 years ago. Back then CBS bought the TV rights for the NFC for $6 billion. For $5 billion they could have bought every team in the NFL. After 5 years CBS lost the TV rights and the NFL teams are worth way more than $5 billion. Why spend all that money for the rights to show something on TV when you could just own it outright.

When I had my company we had 100 million share of stock. I owned 21.6 million shares. My goal wasn't to buy the remaining shares, my goal was to get the stock price up and sell what I had.

[The Old Downtown Guy]

I'm wondering if, in all the new makeover plans, if Sandridge is planning on altering or adding something to the facade of the tower? As is, the building will, for next decade or so, be known as the 'old Kerr McGee building.'

If they were to add (if possible) a new architectural feature of some sort to the top of the tower, seems that would go a long way to change to mental history of the building.

Has anyone heard of such plans?

This building is one of the finest pieces of architecture in Oklahoma City and needs no architectural feature (aka crap) pasted on it to make it more interesting or alter it's image. There's nothing wrong with acknowledging the building's rich history by remembering it as the building formerly occupied by the Kerr McGee Corporation; not likely that the street names will be changed either. The new and the historic can coexist side by side . . . and should.

I don't think there will be any efforts by the new design team at Rogers Marvel Architects to change the exterior of the building, but I imagine that the master plan for the surrounding block may include the demolition of some, perhaps most, of the existing structures. I think the Branif Building will remain, but it may be the only viable building on the block. The India Temple Building has had a lot of the ornamentation carved off during ill-conceived "updating" in the past. It certainly could be restored if the building structure is still viable or repairable at a reasonable cost. The Skirvin Hotel was in MOL the same shape; much of the ornamental masonry was replicated and replaced. Restoring the fascade of a building like the India Temple is an expensive process and current economics may work to keep it standing for longer than it might have been otherwise, allowing more consideration of it's historical importance and giving it a better chance of remaining long term.

Some of the parking structure that wraps around the lower floors of the Sandridge Tower on the northeast corner could come out to create more public space at the base of the building on Broadway and the main entrance moved to the south side, facing the park rather than the present east and west orientation. Hopefully, the inviting water feature that was the hallmark of the curved south facing plaza will be restored or a different version reintroduced.

All in all, it will be a long process . . . twenty years or so.

Michael Smith

Pray For World Peace . . . pass it on

[metro]

They did, the Thunder. I bet they are wishing they had that money back though. Two things stand out here. How is 23% of the company's stock only worth 50 mil. The other is that in the end this will make Kaiser even more wealthy. I guess it pays to have 50 mil in cash lying around.

You can't be serious right? You think they bought the Thunder for a money making investment? They knew good and well it would be a money looser for quite some time, break even at best. They KNOW their money would have and is better invested elsewhere if they want to make serious money. Professional sports franchises are not big money makers, but more for hobby or philanthropic purposes (which is clearly the case as they knew it would take OKC to the next level).

[Shake2005]

Tom Ward must be in really deep financial trouble. Just over six months ago he paid $48.95 a share for 460,000 shares of stock and now he’s selling 8.9 million shares for $5.65, or 88% less than he paid last May?

Worse than that, he’s guaranteed Kaiser that the price won’t fall between here and February 16th or he will have to purchase the stock back at face value. Even worse than that he’s allowed the Kaiser Family Foundation (controlled by Kaiser) to restate existing stock warrants to purchase another 6.67 million of Ward’s shares at the current price for five years.

Ward basically just sold 15.17 million of his 36.95 million shares (41%) at $5.65 and had to guarantee the stock price to complete the sale.

From Forbes:

CEO of SandRidge sells stock
Tom Ward, the chief executive officer of SandRidge Energy Inc., has sold 8.9 million shares of his common stock in the company to Tulsa businessman George B. Kaiser.
The Oklahoma City-based company announced the privately negotiated transaction Monday. After the sale, Ward now owns 29.05 million shares of SandRidge common stock, or 17.5 percent.
Shares rose 99 cents, or 15 percent, to $7.67 in trading Monday.
Kaiser bought the 8.9 million shares for $50 million, or $5.62 per share. Under the sale agreement, Kaiser can sell the shares back to Ward at the same price on Feb. 16.
In a related transaction, existing rights held by a charitable income trust established by Kaiser were amended and restated as five-year warrants to purchase about 6.67 million shares from Ward for $5.62 per share, subject to certain adjustments.
Ward said the transactions were necessary for debt service and tax planning needs.
"Although I am disappointed to sell shares at this price, I am pleased to have completed a negotiated private transaction with such a highly regarded investor rather than an open-market sale," Ward said in a statement.

[Kerry]

Tom Ward must be in really deep financial trouble. Just over six months ago he paid $48.95 a share for 460,000 shares of stock and now he’s selling 8.9 million shares for $5.65, or 88% less than he paid last May?

This is exactly the point I was trying to make. Instead of buying 460,000 shares at $48.95 he should have sold a few million and locked in the profit. Just think, he could have sold 10,000,000 shares (about 1/4 of his total) for nearly a half billion dollars. He could now buy it back for $50 million. He would have made cash profit (not paper profit) of $450 million in just 6 months.

The lesson I have learned is always get paid in cash. Don't take stock options, pensions, or promises of future benefits. Take the money now. No one can take away something they already paid you. Anyone can always break a promise, even a contractual promise.

I don't know, maybe these guys did think oil was going to $200 per bbl and we are in an oil bust.

[onthestrip]

You can't be serious right? You think they bought the Thunder for a money making investment? They knew good and well it would be a money looser for quite some time, break even at best. They KNOW their money would have and is better invested elsewhere if they want to make serious money. Professional sports franchises are not big money makers, but more for hobby or philanthropic purposes (which is clearly the case as they knew it would take OKC to the next level).

Of course Im not serious. It was terrible investment, anyone can tell you that they overpaid for it. Im going to guess that the franchise is valued at least 30% less than what they paid for it. Nevertheless, I dont mind that its here now.

[mcgrawsdad]

Kerry we are not in an oil bust. Oil will be 60 bbl by July 4th. A very healthy price that will keep the o&g sector in oklahoma running at full employment. I will also make another prediction. SD will be a $14 stock by labor day.

[Kerry]

I guess it is all in how you define 'bust'. I take it to mean that an investor thinks the price is going to X but it only goes to X-1 and all of the leveraged investors have to take a huge loss. If Ward and McClendon thought oil was priced too high at $147 why did they keep buying company stock at inflated values? My guess is that they thought oil was going to go higher (maybe even to $200). They are in good company though - thousands of bankers thought exponential growth in the housing market would last foreven also.

[mcgrawsdad]

Markets are like tides, they come and go. The key is all in the timing. IMO, now is the perfect time to buy solid energy companies that have been hammered with the fall in commodities. Both SD and CHK have good assets. I like the SD play better however, more upside potential I believe in the short run.

[DesingerOKC]

I work for a design firm in Edmond that is working with Rogers Marvel Architects out of NY on this project. They are doing some really neat things and it's going look amazing when they're done. The executive floor will include a glass staircase that's stunning.

[LakeEffect]

I work for a design firm in Edmond that is working with Rogers Marvel Architects out of NY on this project. They are doing some really neat things and it's going look amazing when they're done. The executive floor will include a glass staircase that's stunning.

If you are, then you are not a friend to other local designers... traitor is a good word that comes to mind. A local firm rightfully had the whole contract, had amazing designs, and was pushed out by an overreaching SandRidge contact and a contract-poaching outsider firm.

[LakeEffect]

Sorry about my previous comment DesignerOKC. I know you aren't personally involved in the behind-the-scenes work, but I do think it's crap that a local firm was pushed out because SandRidge's contact wants to make a name for herself. From what I know, the local firm actually designed the staircase, not Rogers Marvel.

[metro]

pics or renderings??

[DesingerOKC]

Cafeboeuf you need to calm down. You might think you know what you're talking about but I doubt you have all the facts. We've been working with SandRidge from the very start and have nothing to do with the architects they choose.

[Pete]

Any update on this project?

Has the interior renovating -- including the executive floors -- been completed?

Any plans for the outdoor plaza?

There was also talk about a restaurant.

[metro]

SandRidge is really a quiet corporation. Don't hear much of anything out of them. Originally I believe this was supposed to be finished two years ago.

[adaniel]

I hate to be a Debbie Downer, but I know someone who works there and, if they are to be believed, I wouldn't expect to hear anything from them soon. Gas is below $4.00/mcf, so I would expect to hear much from any of the natural gas companies around here.

[OKCMallen]

And lower than that in the mid-con region. adaniel is right- I wouldn't expect to hear tons from CHK, DEV or SDRGE for a while.

[architect5311]

This project continues to move forward........

[Edge]

Expect to hear something regarding both Kerr/Couch Park and SandRidge HQ within the next couple of months.

[lonestarstatesux]

Kerry we are not in an oil bust. Oil will be 60 bbl by July 4th. A very healthy price that will keep the o&g sector in oklahoma running at full employment. I will also make another prediction. SD will be a $14 stock by labor day.

I just wanted to reiterate how excellent a call this was.

[OUGrad05]

I just wanted to reiterate how excellent a call this was.

Unfortunately gas prices are still in the 4 dollar range, spot prices finally made it above 4 dollars today. 4 to 7 is decent, I just hope we dont see the industry pickup a bunch of rigs real fast and put us back into over supply at this time next year.

[okcpulse]

Expect to hear something regarding both Kerr/Couch Park and SandRidge HQ within the next couple of months.

Regarding???