SandRidge Energy Inc. (SD:US) has paid $9.5 million since 2008 to companies controlled by Chief Executive Officer Tom Ward and his family, according to shareholder TPG- Axon Capital Management LP.
SandRidge, based in Oklahoma City, has paid $3.9 million to TLW Land & Cattle LP, a Ward business, and $5.6 million to WCT Resources LLC, run by Ward’s son Trent, for royalties and leases, according to a slide presentation posted by TPG-Axon today. The figures include data from SandRidge’s public filings since 2008.
The fund, which owns 6.7 percent of SandRidge, has accused the Wards of improperly profiting by buying oil and natural-gas leases and selling them weeks or months later to SandRidge. TPG- Axon, based in New York and run by former Goldman Sachs Group Inc. partner Dinakar Singh, is asking shareholders to remove Ward and replace SandRidge’s board.
SandRidge has said TPG’s nominees lack industry experience and electing them may trigger change-in-control provisions linked to its debt. The company said last week that TPG-Axon “has repeatedly made inflammatory and false statements” with the goal of taking control of the company and restructuring or selling it.
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