Ward was gone from that moment that deal was struck. According to SandRidge’s announcement last night, Ward’s departure was effected “without cause.” An independent investigation in charges of improper related-party transactions found no reason to terminate Ward “for cause.”

Ward, who was also a co-founder with Aubrey McClendon of Chesapeake Energy Corp. (NYSE: CHK), had been accused of sending business to outside companies in which he had a personal interest.

There is no need to weep for Ward though. He will receive a severance package that includes vesting of 6.33 million shares of restricted stock, a cash payment of $53.5 million and his current base salary for another three years. That works out to a handsome total of around $90 million.

SandRidge stock is up 1.4% this morning, at $5.15 in a 52-week range of $4.52 to $7.80.

The EIA reported that U.S. working stocks of natural gas totaled 2.35 trillion cubic feet, about 58 billion cubic feet lower than the five-year average of 2.41 trillion cubic feet. Working gas in storage totaled 2.93 trillion cubic feet for the same period a year ago. Natural gas inventories remain roughly in the middle of the five-year range.

Milder weather in the Northeast offset warmer weather in the South, dampening demand for cooling. The weather forecast for the coming week indicates warmer weather across Texas and the Southeast, with normal or below normal reading due elsewhere. Demand increases due to outages at U.S. nuclear plants was also lower than a year ago.

Here’s how stocks of the largest U.S. natural gas producers are reacting to today’s report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, is up 0.4%, at $90.05 in a 52-week range of $79.78 to $93.67.

Chesapeake Energy Corp. (NYSE: CHK) is down 0.9%, at $20.90 in a 52-week range of $16.23 to $22.97.

EOG Resources Inc. (NYSE: EOG) is up 0.2%, at $129.86 in a 52-week range of $82.48 to $139.00.

The US Natural Gas Fund (NYSEMKT: UNG) is up 0.8%. at $20.31 in a 52-week range of $15.32 to $24.09. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is up 1%, at $42.72 in a 52-week range of $32.54 to $45.80. The first fund tracks spot prices; the second includes major drillers and services companies.

The EIA reported that U.S. working stocks of natural gas totaled 2.25 trillion cubic feet, about 70 billion cubic feet lower than the five-year average of 2.32 trillion cubic feet. Working gas in storage totaled 2.87 trillion cubic feet for the same period a year ago. Natural gas inventories remain roughly in the middle of the five-year range.

Milder weather likely influenced the larger-than-expected increase in inventories. Late spring typically sees lower demand since both heating and cooling demands are diminished. Natural gas has been unable to hold its price about $4.00 for the past few days, and today’s EIA report will not help.

Here is how stocks of the largest U.S. natural gas producers are reacting to today’s report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, is down 0.3%, at $89.39 in a 52-week range of $79.46 to $93.67.

Chesapeake Energy Corp. (NYSE: CHK) is down 1.1%, at $21.27 in a 52-week range of $16.23 to $22.97.

EOG Resources Inc. (NYSE: EOG) is down about 0.3%, at $128.13 in a 52-week range of $82.48 to $139.00.

The U.S. Natural Gas Fund (NYSEMKT: UNG) is down 3.5%, at $20.62 in a 52-week range of $15.18 to $24.09. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is down fractionally, at $42.95 in a 52-week range of $32.54 to $45.80. The first fund tracks spot prices; the second includes major drillers and services companies.

We also screened the stocks that were contrarian stocks to buy, according to Jefferies, with the largest upside to the posted price target. To be sure, it is a mixed bag of names. Here are the contrarian stocks to buy with the largest upside to their price target.

Limelight Networks Inc. (NASDAQ: LLNW) is a stock to buy with an upside potential of 90%. Limelight Networks met expectations on revenues and exceeded expectations on earnings per share for the first quarter of 2013. The Jefferies price target is $4. The Thomson/First Call estimate is $3.

Genco Shipping & Trading Ltd. (NYSE: GNK) was an $84 stock in May of 2008. Its market cap has slid from $2.4 billion to just above $60 million. Following an amended agreement with its lenders in August 2012, GNK is currently enjoying temporary immunity from debt repayments and waivers for most of its debt covenants until December 31, 2013. Jefferies has a $4 target, but the consensus estimate is $1. This is a very controversial call and only suitable for the most aggressive trading accounts.

Arena Pharmaceuticals Inc. (NASDAQ: ARNA) is a name we have covered before in the obesity drug business. The stock has surged just a week and a half ahead of the launch of its anti-obesity drug Belviq. The Jefferies price target is $12. The consensus is at $8.

Rackspace Hosting Inc. (NYSE: RAX) strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. The Jefferies target is $60, but the consensus estimate for the stock is at $45.50.

Freightcar America Inc. (NASDAQ: RAIL) constructs the cars that the major railroads use. In the first quarter of 2012, strength in coal sales pushed railcar deliveries to more than 2,600 units. Yet, in its recently reported quarter, railcar deliveries slumped to just 1,073 units as coal shipments remained weak. The good news for the company is natural gas prices have doubled over the past year, making coal a considerably more attractive option once again for electric utilities. The Jefferies price target is $23. The consensus is at $18. Investors are paid a 1.40% dividend.

RadiSys Corp. (NASDAQ: RSYS) provides wireless infrastructure solutions for the telecom, aerospace and defense markets. Jefferies has a $7 price target for the stock, while the consensus is at $5.75.

Chesapeake Energy Corp. (NYSE: CHK) recently replaced its longtime CEO Aubrey McClendon. The company saw its share price depreciate after negative news surfaced concerning the company’s management and spiraling debt picture. Given that natural gas pricing has improved, this could be a top stock to buy. The Jefferies price target is $26. The consensus target is $22. Investors are paid a 1.60% dividend.

It is pretty easy to spot the contrarian nature of the Jefferies stocks to buy. The price targets on all these names are much higher than street consensus. Investors should remember that while the contrarian play may hold large upside if Jefferies is right, the stocks may have more potential downside than some if they are wrong.

The EIA reported that U.S. working stocks of natural gas totaled 2.05 trillion cubic feet, about 84 billion cubic feet lower than the five-year average of 2.14 trillion cubic feet. Working gas in storage totaled 2.73 trillion cubic feet for the same period a year ago. Natural gas inventories are roughly in the middle of the five-year range.

The weekly storage increase is a bit smaller than the 99 billion cubic feet build in the previous week. Seasonal factors likely influenced the smaller increase. Late spring typically sees lower demand since both heating and cooling demands are diminished. The slightly lower storage total could also indicate that producers are waiting (hoping?) for prices to rise.

Here’s how stocks of the largest U.S. natural gas producers are reacting to today’s report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, is down 0.5% to $91.72, in a 52-week range of $77.13 to $93.67.

Chesapeake Energy Corp. (NYSE: CHK) is down 0.1%, at $21.08 in a 52-week range of $14.25 to $22.97. Chesapeake’s share drop is largely due to a downgrade to Neutral from J.P. Morgan.

EOG Resources Inc. (NYSE: EOG) is down about 0.4%, at $130.39 in a 52-week range of $82.48 to $139.00.

The U.S. Natural Gas Fund (NYSEMKT: UNG) is up 0.8%, at $22.75 in a 52-week range of $15.18 to $24.09. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is down 1.5%, at $43.89 in a 52-week range of $32.54 to $45.80. The first fund tracks spot prices; the second includes major drillers and services companies.

So far in 2013, refiners have managed to keep the profits rolling in, but those profits are getting slimmer as the spread between West Texas Intermediate (WTI) and Brent grades of crude oil narrows. The producers feel the pinch from lower realized prices per barrel, the services firms feel the pinch as fewer wells are drilled and the refiners no longer benefit as much.

Natural gas producers have begun to see an improvement in pricing, from around $3.20 per thousand cubic feet at the beginning of the year to more than $4.00 last week. That is a boost of 25%, and some analysts think that price could double by the end of this year.

Here is our latest take on some of the major players in the oil and gas sector.

Integrated Major Oil and Gas Companies, Plus One

Exxon Mobil Corp. (NYSE: XOM) closed at $92.21 last night and has a market value of about $410 billion. The consensus target price from Thomson Reuters is around $94.30, and the 52-week range is $77.13 to $93.67. Exxon has a dividend yield of 2.7%. The implied upside to the consensus target is a scant 2.3%, and note that the target price is above the 52-week high.

Chevron Corp. (NYSE: CVX) closed at $124.93 last night and has a market value of about $242.2 billion. The consensus target price is around $129.50, and the 52-week range is $95.73 to $126.98, a new high set yesterday. Chevron has a dividend yield of 3.2%. The implied upside to the consensus target is just 3.66%, and the target price is above the 52-week high.

BP PLC (NYSE: BP) closed at $43.30 last night and has a market value of about $138.2 billion. The consensus target price is around $51.40, and the 52-week range is $36.25 to $45.45. BP’s dividend yield is about 5%. The implied upside to the consensus target is 18.7%, and note that BP’s target price also is above the 52-week high.

Continental Resources Inc. (NYSE: CLR) closed at $84.44 last night and has a market value of about $15.5 billion. The consensus price target is around $101.70, and the 52-week range is $61.02 to $93.99. Continental pays no dividend. The implied upside to the consensus target is above 20%, and the target price is well above the 52-week high.

We thought it might be instructive to toss Continental Resources into the mix because it is the largest producer in the Bakken oil shale play. As a valuation play, it offers an upside that is stronger than even BP’s, without the drag that BP still gets from any remaining liability for the April 2010 Gulf of Mexico disaster. The downside for Continental is high expectations — the company is expected to grow revenues by nearly 50% in 2013. The major upside is the narrowing gap between WTI and Brent crude varieties and added rail transportation out of the Bakken.

Forced to choose between BP and Continental, we would go with Continental, even absent a dividend. Share price growth potential is more likely than at BP, and the share price only has to rise by a little more than $2.00 to make up for the forgone dividend. Share price appreciation at BP is much more problematic.

Natural Gas Producers

Chesapeake Energy Corp. (NYSE: CHK) closed at $21.10 yesterday and has a market value of about $14.1 billion. The consensus target price is $22.45, and the 52-week range is $14.45 to $22.97. Chesapeake’s dividend yield is 1.7%. The implied upside to the consensus target is about 6.4%, and the target price is only slightly below the 52-week high.

EOG Resources Inc. (NYSE: EOG) closed last night at $130.93 and has a market value of about $35.6 billion. The consensus price target is about $155.25. The 52-week range is $82.48 to $139.00. EOG has a dividend yield of 0.6%. The implied upside to the consensus target is 18.5%, and the target price is well above the 52-week high.

These two companies rank second and third behind Exxon in natural gas production. Higher natural gas prices in 2013 represent the view of virtually every energy expert in the country. On valuation alone, EOG holds the inside track among these producers. It simply takes too much growth for Exxon to move the needle, and even though Chesapeake has a new chief executive officer with a solid background in operations, he will not join the company until next month and is likely to have only a limited impact on this quarter’s performance.

Oil Field Services

Schlumberger Ltd. (NYSE: SLB) closed last night at $75.58 and has a market value of about $100 billion. The consensus price target from Thomson Reuters is $90.50, and the 52-week range is $59.12 to $82.00. Schlumberger has a dividend yield of 1.7%. The implied upside to the consensus target is about 19.7%, and the price target is well above the 52-week high.

Halliburton Co. (NYSE: HAL) closed at $44.02 last night and has a market value of about $41 billion. The consensus target price is $51.00, and the 52-week range is $26.28 to $45.75. Halliburton’s dividend yield is 1.1%. The implied upside to the consensus target is 15.9%. Again the target price is well above the 52-week high.

Baker Hughes Inc. (NYSE: BHI) ended yesterday at $47.40 and has a market value of about $21.2 billion. The consensus target price is $50.65, and the 52-week range is $37.08 to $50.97. Baker Hughes has a dividend yield of 1.3%. The implied upside to the consensus target is about 6.9%, and the target price is above the 52-week high.

National Oilwell Varco Inc. (NYSE: NOV) closed last night at $69.17 and has a market value of about $30 billion. The consensus target price is $82.65, and the 52-week range is $59.07 to $89.95. National has a dividend yield of 0.8%. The implied upside to the consensus target is 19.5%, and the price target is below the 52-week high.

Transocean Ltd. (NYSE: RIG) closed at $52.31 last night and has a market value of about $19 billion. The consensus price target is $61.00 and the 52-week range is $39.32 to $59.50. Transocean does not pay a dividend (it will pay a special, one-time dividend of $2.24 a share in four equal quarterly installments beginning in June). The implied upside to the consensus target is 16.6%, and again the price target is above the 52-week high.

Ensco PLC (NYSE: ESV) closed last night at $62.35 and has a market value of about $14.8 billion. The consensus target price is around $68.00, and the 52-week range is $41.63 to $65.82. Ensco has a dividend yield of 3.2%. The implied upside to the consensus target is about 9%, and again the price target is above the 52-week high.

Of the services firms, Schlumberger and Transocean currently trade lower today than they did when we last surveyed these companies in February. Ensco trades essentially flat. The rest have posted share price gains that have cut implied gains significantly. National Oilwell Varco remains the choice here, partly because its price target is considerably below its 52-week high. The shares have plenty of room to run.

Refiners

Valero Energy Corp. (NYSE: VLO) closed last night at $40.53 and has a market value of about $22.1 billion. The consensus target price from Thomson Reuters is $47.90, and the 52-week range is $18.28 to $44.76. Valero has a dividend yield of 1.9%. The implied upside to the consensus target is 18.2%, and the price target is above the 52-week high.

Phillips 66 (NYSE: PSX) closed at $65.39 last night, and it has a market value of about $40.5 billion. The consensus price target is $72.15, and the 52-week range is $29.25 to $70.52. Phillips 66 has a dividend yield of 1.9%. The implied upside to the consensus target is 10.3%, and again the price target is above the 52-week high.

Marathon Petroleum Corp. (NYSE: MPC) ended yesterday at $82.45 and has a market value of about $26.8 billion. The consensus price target is $95.27, and the 52-week range is $33.65 to $92.73. Marathon’s dividend yield is about 1.7%. The implied upside to the consensus target is about 15.5%, and again the price target is above the 52-week high.

Refiners are beginning to feel the pinch as prices for WTI crude narrow the spread to Brent crude. In February that spread was $21 a barrel, and these refiners were able to source their feedstocks from the much cheaper U.S. barrels. The spread has now narrowed to around $8 a barrel, shaving away the bulk of the refiners’ profitability.

Phillips 66’s margin at its mid-continent refineries in the first quarter was $27.29 a barrel, and its worldwide margin came in at $13.94 a barrel, higher than either Valero or Marathon. Phillips 66 stands to be the last of the big refiners to lose any margin to the closing spread between WTI and Brent.

Some Observations

Production was lower at all the major integrated companies last quarter, and given the slowing demand and high inventory levels, there is no reason to expect a big spurt in production this year. Prices for crude will continue on their general downward trend, forcing these firms to make hard choices about new projects.

Prices for gasoline will have to fall because U.S. gasoline inventories are rising as new cars are more fuel-efficient and drivers simply drive less. Unless federal law is changed to permit crude oil exports beyond Canada and Mexico, increased U.S. production will find its way to U.S. refineries. Refined products exports could grow, and with them, refining revenues and profits.

If there are any profits to be had in the second quarter, they are once again likely to depend on refining. Services companies’ margins are being squeezed because of price competition and falling crude prices are limiting margins for the producers.

Natural gas producers should see an upturn in prices during the summer cooling season, and most analysts expect that to carry on right through the rest of this year. Gas prices around $8 per thousand cubic feet are certainly possible.

ARM Holdings PLC (NASDAQ: ARMH) was reiterated Buy and the ADR price target was raised to $56 at Canaccord Genuity.

Bristol-Myers Squibb Co. (NYSE: BMY) was raised to Buy from Neutral at Citigroup.

Chesapeake Energy Corp. (NYSE: CHK) was raised to Positive at Susquehanna.

Citigroup Inc. (NYSE: C) was reiterated Outperform but the target price was raised to $60 from $53 based on earnings diversification and Latin American growth prospects.

Cree Inc. (NASDAQ: CREE) was raised to Buy with $72 price target from Neutral and $59 target at Stern Agee.

Galena Biopharma Inc. (NASDAQ: GALE) was started as Outperform at JMP Securities.

Home Depot Inc. (NYSE: HD) was reiterated as Buy at Argus but the target price was raised to $90 from $85 based on higher earnings estimates for 2013 and 2014.

International Flavors & Fragrances Inc. (NYSE: IFF) was reiterated Buy at Argus but the target price was to $93 from $87 based on higher earnings expectations.

Read also: Lessons of the 2013 Solar Bubble Versus the 2007-2008 Solar Bubble

Medtronic Inc. (NYSE: MDT) was raised to Buy from Hold late on Tuesday by S&P Capital IQ.

Monster Beverage Corp. (NASDAQ: MNST) was started as Outperform at BMO Capital Markets.

PepsiCo Inc. (NYSE: PEP) was started as Outperform at BMO Capital Markets.

Popular Inc. (NASDAQ: BPOP) was started as Outperform at Wells Fargo.

Terex Corp. (NYSE: TEX) was raised to Overweight from Equal Weight at Barclays.

Read also: Top Chip CapEx and Materials Stocks to Buy Now from UBS

UBS gave a list of 10 wireless trends for investors to bank on 2013.

The Wall Street Journal reported the hiring this morning, citing “people familiar with the matter.” Lawler joined Anadarko in 2006 with the company’s acquisition of Kerr-McGee, where he had been employed since 1988. He is a petroleum engineer with long experience in operations.

Lawler’s selection is an interesting choice. Chesapeake’s problems stem from aggressive leasing followed by proving the presence of the resource and then flipping the property for a profit. As natural gas prices collapsed, the company took on a number of partners that were given a share of production in exchange for cash and promises to provide more cash for operations in the future.

The company’s CEO selection could have gone in several directions. One obvious choice would have been a financial wizard who could have sifted through the company’s assets, jettisoning the losers and strengthening Chesapeake’s free cash flow. The course the company’s board took, however, appears to be one in which it will seek to maximize the value of the properties it retained in order to keep its investors happy. Lawler’s operations background makes him a good fit for that role.

Like other producers of natural gas, prices below $4 per thousand cubic feet of gas have pressured revenues and profits for Chesapeake. Most observers and natural gas experts expect prices to rise this year and into next, with the most optimistic looking for prices to double. That will have a larger impact on Chesapeake’s cash flow than any CEO.

Chesapeake stayed within the industry with its new chief executive pick. That is just as well. Chesapeake is a complex energy company with equally complex financials. Marketwatch says of the new Chesapeake Energy CEO pick:

Chesapeake Energy Corp. has chosen Robert Douglas Lawler, a top executive at rival oil-and-gas company Anadarko, as chief executive, the Wall Street Journal reported on Monday. The 46-year-old will replace Aubrey McClendon, who was ousted from the second-biggest natural-gas producer in the U.S. in April. Petroleum engineer Lawler was senior vice president of international and deep-water operations at Anadarko

It is deepwater Lawler will have to get Chesapeake out of.

Chesapeake Energy Corp. (NYSE: CHK) finally has succeeded in throwing out its morally challenged CEO Aubrey McClendon and some of his equally morally challenged board. McClendon not only enjoyed extravagant compensation, he also made investments side by side with the company, which almost certainly was a conflict of interest. Chesapeake stayed within the industry with its new chief executive pick. That is just as well. Chesapeake is a complex energy company with equally complex financials. Marketwatch says of the new Chesapeake Energy CEO pick:

Chesapeake Energy Corp. has chosen Robert Douglas Lawler, a top executive at rival oil-and-gas company Anadarko, as chief executive, the Wall Street Journal reported on Monday. The 46-year-old will replace Aubrey McClendon, who was ousted from the second-biggest natural-gas producer in the U.S. in April. Petroleum engineer Lawler was senior vice president of international and deep-water operations at Anadarko

It is deepwater Lawler will have to get Chesapeake out of.

EU Tax Dodgers Beware

European Union leaders will turn to one of the most crippling parts of the region’s economies — tax dodging. Given the size of the underground economies in Spain and Greece, missing taxes are a large portion of the taxable revenue base. Even in the United States, what the IRS collects is only a portion of the real, total income of people. Europe’s problem is that most countries have no mechanism to detect who cheats, let alone how to collect money from them. That means the decision to improve the system likely lacks teeth. Bloomberg reports on efforts to fight tax evasion in the EU:

The agenda for this week will include stepping up the fight against tax evasion after finance ministers from Luxembourg and Austria last week blocked efforts to reach agreement on sharing tax data. The accord aims to set standards for how countries collect data on income residents earn in other nations.

“Priority will be given to efforts to extend the automatic exchange of information at the EU and global levels,” according to the draft.

So, it may be as hard to get an agreement as it will be to implement it.

Steven Cohen and the Grand Jury

As federal officials investigate insider trading at Steven Cohen’s SAC Capital Advisors, the noose has begun to tighten around his neck. There has long been a suspicion that he was aware of the illegal practice within his firm, if he did not employ it himself. Worries about the possible legal effects of the probe have caused many of his investors to flee. If Cohen is caught in the government’s web, the process likely escalate. CNBC reported on the investigation of SAC Capital Advisors:

Steven A. Cohen has received a subpoena to testify before a grand jury in the government’s insider trading investigation into his hedge fund, SAC Capital Advisors, a development that signals a newly aggressive phase in the multiyear inquiry, according to lawyers and executives briefed on the case.

Issued last week, the grand jury subpoena came as part of a broader round of requests from criminal authorities. Other SAC executives were also named in the subpoenas, the lawyers and executives said, and the fund itself received requests for information about its activities.

The subpoenas suggested that federal prosecutors and the F.B.I. are intensifying their efforts to build a case, not only against SAC executives, but also the fund itself. Typically, a grand jury will hear testimony and review evidence before deciding to approve an indictment.