Subsequent Events

Events occurring after December 31, 2012 were evaluated to ensure that any subsequent events that met the criteria for recognition and/or disclosure in this report have been included.

Royalty Trust Distributions. On January 31, 2013, the Royalty Trusts announced quarterly distributions for the three-month period ended December 31, 2012. The following distributions will be paid on March 1, 2013 to holders of record as of the close of business on February 14, 2013 (in thousands):



Royalty Trust	Total Distribution		Amount to be Distributed to Third-Party Unitholders
Mississippian Trust I	$	18,221	$	13,322
Permian Trust	31,659		22,011
Mississippian Trust II	26,481		15,923
Total	$	76,361	$	51,256

Sale of Permian Properties. On February 26, 2013, the Company completed the sale of its Permian Properties for $2.6 billion, subject to post-closing adjustments. This transaction is expected to result in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company expects to record a gain or loss on the sale. The gain or loss will be calculated based on a comparison of proceeds received to the sum of (i) an allocation of the historical net book value of the Company’s proved oil and natural gas properties and (ii) the historical cost of unproved acreage sold. The allocated net book value attributable to the Permian Properties will be calculated based on the relative fair value of the Permian Properties and the remaining proved oil and natural gas properties retained by the Company as of the date of sale. Based on net book value and historical costs and proved reserves as of December 31, 2012, the Company calculated an estimated loss on the sale of approximately $450.0 million. However, this amount may change materially based on final calculations performed as of the closing date.

In conjunction with the divestiture of the Permian Properties, the Company settled a portion of its existing oil derivative contracts in February 2013 prior to their respective maturities to reduce production volumes covered by derivative contracts in proportion to the anticipated reduction in daily production volumes due to the sale, which resulted in a realized loss of approximately $30.0 million.

The following unaudited pro forma results of operations for the year ended December 31, 2012 are presented as though the Company divested of the Permian Properties as of January 1, 2012. The pro forma results of operation for the year ended December 31, 2012 were prepared by adjusting the historical results of the Company to exclude the historical results of the Permian Properties and estimates of the effects of the transaction on the combined results. These supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved had the transaction occurred on January 1, 2012 or that may be achieved by the Company in the future. Future results may vary significantly from the results reflected in this pro forma financial information because of future events and transactions, as well as other factors.



	Year Ended December 31, 2012
	(In thousands, except per share data)
	(Unaudited)
Revenues	$	2,164,890
Net loss(1)	$	(472,101	)
Loss applicable to SandRidge Energy, Inc. common stockholders(1)	$	(585,879	)
Loss per common share
Basic	$	(1.29	)
Diluted	$	(1.29	)

____________________

(1) Includes approximately $450.0 million of loss on sale, discussed above.

Redemption of Senior Notes. In February 2013, the Company initiated a process to redeem its 9.875% Senior Notes due 2016 and its 8.0% Senior Notes due 2018. As of February 26, 2013, there was approximately $1.1 billion in aggregate principal amount of such notes outstanding. The Company intends to use a portion of the proceeds received from the sale of the Permian Properties to redeem these senior notes.