Editor’s Note: Related tickers: SandRidge Energy Inc. (NYSE:SD), Chesapeake Energy Corporation (NYSE:CHK), Morgans Hotel Group Co. (NASDAQ:MHGC)
It’s been bad year to be a highly paid CEO of an underperforming energy company. This past January we found out that Chesapeake Energy Corporation (NYSE:CHK) co-founder Aubrey McClendon was “retiring” after philosophical differences with his board. Now, SandRidge Energy Inc. (NYSE:SD) CEO Tom Ward, also a co-founder of Chesapeake Energy Corporation (NYSE:CHK), is being sent packing. Unfortunately, for Ward, there won’t be any cake served at a retirement party, for he’s being let go effective immediately. It could have been worse: The company, which had hired an independent investigation firm to look into allegations of improper related-party transactions, determined that Ward’s actions didn’t merit him being terminated with cause. Despite that finding, this isn’t the most graceful exit for the company’s founder.
SandRidge Energy Sets Semi-Annual Preferred Dividend (Fool)
Oil and natural gas producer SandRidge Energy Inc. (NYSE:SD) announced yesterday its semi-annual dividend for its 6% convertible perpetual preferred stock, at $3 per share. The board of directors said the quarterly dividend is payable on July 15 to the holders of record at the close of business on July 1. SandRidge Energy Inc. (NYSE:SD) has 2 million shares of 6% preferred stock outstanding. The preferred shares were issued in December 2009, and five years after their issuance, or Dec. 21, 2014, all outstanding shares of the convertible preferred stock will be converted automatically into common stock at then-prevailing conversion prices. SandRidge Energy Inc. (NYSE:SD) does not pay a regular dividend on its common stock.
Morgans Hotel Board Learns SandRidge ‘Proxy Put’ Lesson (Law360)
Morgans Hotel Group Co. (NASDAQ:MHGC) said Tuesday its board’s ouster last week won’t force the company to buy back its debt because it had already approved the dissident directors for the purposes of its covenants, heeding a recent lesson from Delaware court. …Earlier this year, SandRidge Energy Inc. (NYSE:SD) did just that. It urged shareholders to reject a slate put forward by hedge fund TPG-Axon Capital Management LLC or else force the company to buy back $4.3 billion in outstanding debt, potentially forcing it to borrow more money and endangering its credit rating. But in a March 8 ruling, Chancellor Leo E. Strine Jr. said the SandRidge Energy Inc. (NYSE:SD)board couldn’t refuse to approve otherwise qualified candidates simply to entrench itself. Finding the board had no basis for withholding its approval, the chancellor enjoined it from soliciting any more anti-TPG votes until it greenlighted the nominees.
SandRidge Energy Given New $8.00 Price Target at SunTrust (SD) (DailyPolitical)
Research analysts at SunTrust reduced their target price on shares of SandRidge Energy Inc. (NYSE:SD) from $9.50 to $8.00 in a report released on Tuesday, Stock Ratings Network reports. SunTrust’s price target indicates a potential upside of 65.98% from the stock’s previous close. Other equities research analysts have also recently issued reports about the stock. Analysts at Susquehanna cut their price target on shares of SandRidge Energy Inc. (NYSE:SD) from $10.00 to $9.00 in a research note to investors on Wednesday, May 22nd. They now have a “positive” rating on the stock.
