The CEO of SandRidge Energy, Inc. (NYSE: SD) sold approximately 8.90 million shares at $5.62/share in a private transaction in order to meet "debt service and tax planning needs." Tom Ward, SandRidge’s CEO, retained the option to purchase the shares back at the original price on February 16. The total value of the transaction was about $50 million. Mr. Ward still owns 29.05 million shares of SandRidge common stock.
SandRidge has been forced to pull-in capital spending for 2009, because thecompany has been unable to find qualified buyers for properties ittried to sell in East Texas.
The transaction doesn’t appear to have had any impact on the shareprice. Shares are up about 4% in early trading this morning, but stillof nearly 90% from 52-week highs.
January 5, 2009