Back in November, hedge fund TPG-Axon Capital sent a letter to the board of directors of SandRidge Energy Inc. (NYSE: SD) challenging the company’s strategy and management. TPG-Axon owns about 6.7% of SandRidge. Investment firm Mount Kellett Capital Management, which owns 4.5% of SandRidge, has called for the suspension of SandRidge’s chief executive.
Earlier this week, TPG-Axon posted a presentation detailing what appears to be a cozy relationship between SandRidge and companies in which SandRidge CEO Tom Ward has a personal, if not always a financial, stake. TPG-Axon claims that, based on SEC filings, since 2008, SandRidge has paid $9.5 million to companies related to Tom Ward.
SandRidge’s board this morning released a statement exonerating Ward, saying that it has “reviewed issues related to these allegations several times over the Company’s history and has found no wrongdoing to have taken place.”
Shares of SandRidge are up about 2% in early trading this morning, at $7.18 in a 52-week range of $4.81 to $8.98.
The TPG-Axon presentation is available here.
The SandRidge board’s announcement is available here.