Form 4: Sandridge Energy EVP Jonathan Frates Sells Shares to Cover Tax Obligations

Jonathan Frates, EVP and CFO of Sandridge Energy, sold 17,936 shares of common stock to cover tax withholding obligations.

Summary

• Jonathan Frates, the EVP and Chief Financial Officer of Sandridge Energy Inc., disposed of 17,936 shares of common stock on March 14, 2025.
• The sale was executed to cover tax withholding obligations related to prior award agreements.
• The shares were sold at a weighted average price of $11.34, with individual transactions ranging from $11.30 to $11.4348.
• Following the transaction, Frates directly owns 47,202 shares of Sandridge Energy common stock.
• Additionally, Frates exercised 12,237 restricted stock units (RSUs) on March 12, 2025, each representing a contingent right to receive one share of common stock.
• After exercising the RSUs, Frates directly owns 12,237 derivative securities.
• The restricted stock units vest in one-third increments annually from the grant date.

Sentiment

Score: 5

Explanation: The document describes a routine transaction (stock sale for tax obligations) and exercise of stock options, so the sentiment is neutral.

Industry Context

Executive stock sales are a common occurrence, often related to compensation and tax planning. Monitoring these transactions can provide insights into management's perspective on the company's value, although sales to cover tax obligations are generally less indicative of sentiment.

Comparison to Industry Standards

• Executive compensation structures, including restricted stock units, are standard practice across the energy industry.
• Companies like Devon Energy (DVN) and Continental Resources (CLR) also utilize RSUs as part of their executive compensation packages.
• The vesting schedules and tax implications are generally similar across these companies.

Stakeholder Impact

• The stock sale could have a minor impact on shareholders due to the increased supply of shares in the market, but the effect is likely minimal given the relatively small volume.
• The transaction has no direct impact on employees, customers, suppliers, or creditors.

Key Dates