Monday, January 14, 2013

Never Fails To Surprise Me -- The Energy Story -- SandRidge In The News

I was looking for a story to post since I had some free time. And there it was, a lead story at CNBC this evening: SandRidge: a page from Chesapeake's playbook.
Two large SandRidge shareholders - hedge fund TPG-Axon Capital and investment firm Mount Kellett Capital - have been pressing to replace Ward and the board and to put the company up for sale.
"There is constant intermingling of the personal and the private" between the CEO and SandRidge's business, said Dinakar Singh, founder of TPG-Axon, which owns 6.7 percent of SandRidge.
Greg Dewey, a spokesman for SandRidge, declined to respond to questions from Reuters on Ward's transactions or on any similarities between SandRidge and Chesapeake. But he stressed that "in each case, we have followed our own internal guidelines and we know the (Securities and Exchange Commission) rules very well and have followed those."
In addition to borrowing $75 million from Bank of Oklahoma's chairman, Ward also collected $67 million from SandRidge by selling back his personal interests in a controversial corporate perk: stakes in the company's wells. McClendon, too, had a similar incentive at Chesapeake.
SandRidge has also paid nearly $28 million more to Ward or firms linked to him or his family, according to SEC filings.
Very, very interesting. 

2 comments:

  1. They bought stock in SD, Tom's company.

    They hold stock in SD, Tom's company.

    They don't sell the stock.

    They complain about the management of the company they bought stock in with knowledge of the management.

    I wish the company could sue the troublemakers.

    anon 1

    ReplyDelete
    Replies
    1. Yes, that's accurate.

      Sort of like 3,000 folks who compete for 200 job vacancies, get the job, and then go on strike for better pay. If the analogy makes sense.

      But I know what you're saying.

      Delete

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