Energy

Ex-CEO Of SandRidge Energy Is Allegedly Co-Conspirator In Oil Price Rigging Case

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The co-conspirator behind late oil tycoon Aubrey McClendon’s alleged conspiracy to rig crude prices was Tom Ward, the former head of natural gas producer SandRidge Energy Inc., according to people familiar with the indictment.

Ward co-founded Chesapeake Energy alongside McClendon in 1989.

McClendon died in a car wreck in Oklahoma City, Okla. on Wednesday morning hours after the Department of Justice indicted him on charges of colluding with what sources now believed to be SandRidge Energy to keep oil and gas bid prices at artificially low levels from 2007 to 2012 — all for the purposes of pushing competitors out of the market.

McClendon continued to receive an annual salary of $975,000 per year — or nearly $60,000 a month — after Chesapeake terminated him in 2013. He also scored a $1.95 million yearly bonus for another four years, according to financial statements disclosed by Chesapeake.

Oklahoma City Police Capt. Paco Balderrama told reporters at a news conference Wednesday that police are still investigating the wreck, but evidence suggests the McClendon was driving at a “high rate of speed.” Balderrama said the pioneer of the natural gas boom died instantly.

SandRidge officials have not responded to reporters, nor have they issued statements addressing the allegations made against Ward, the company’s one time chief operating officer.

Ward helped found Oklahoma City-based SandRidge, which eventually turned into a $10 billion enterprise under his tuetilage, in 2006 shortly after leaving Chesapeake.

He was eventually fired “without case” after a review was conducted following investors questioning transactions Ward and his family made with the company.

The former head of SandRidge used his own capital to form Tapstone Energy LLC in 2013.

SandRidge acknowledged in early 2014 that it received a subpoena from the Justice Department associated with antitrust violations.

Prior to his death, McClendon struck a defiant tone.

“The charge that has been filed against me today is wrong and unprecedented,” McClendon said in a statement shortly after being indicted. “All my life I have worked to create jobs in Oklahoma, grow its economy, and to provide abundant and affordable energy to all Americans. I am proud of my track record in this industry, and I will fight to prove my innocence and to clear my name.”

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