Moreover, since the company went public, a substantial portion of SandRidge's earnings and cash flow has gone toward paying its executives. Given the stock's precipitous decline, its severe relative underperformance, and a 60% drop in book value per share over this period, shareholder outrage is understandable.
SD own outright 25% of the SDR units as “subordinate”. My understanding is that the subordinate units are paid first, if there is not enough cash flow the subordinate units get paid on pro rata bases. There is a case where by should there is not enough cash flow to pay the common units the subordinate units are converted of common units and have the same type of payments.
My understanding is that subordinates units guaranty a cash flow. After having digested SDR, SDT and PER I do not plan on buying any of them. There are better and juicier deals. WHZ, ADLW and NTI plus several more.