Pogo Producing Company (NYSE:PPP) moved up $0.62, or 1.23%, to $51.20 in early trading today after Daniel Loeb's Third Point announced Friday that it would be seeking a seat on the company's board at the next annual shareholder's meeting. According to the Schedule 13D/A filing, the activist hedge fund said that while the company had hired Goldman Sachs and TD Securities to explore strategic alternatives, they have no faith in the current management to follow through with a sale process. Consequently, the 7.9% holder said that it would continue to seek the majority of the seats on the company's board.

The news comes after many investors, including Third Point, had expressed concerns about the company's valuation and mismanagement. The company announced its earnings on Friday, which included lower boepd (barrel of oil equivalent per day) output than expected along with steep increases in capital expenditures. Third Point insisted that while these numbers were sad, they still believe that the company's assets are undervalued and under-utilized. If the hedge fund is successful in taking over seats on the board, it would greatly increase the likelihood of a sale. Combined, these factors make PPP a stock that is definitely worth watching.

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