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Acquisitions and Divestitures (Tables)
 3 Months Ended
Mar. 31, 2013
Dynamic Acquisition
  
Business Acquisitions and Dispositions [Line Items]  
Schedule of Purchase Price Allocation
The following table summarizes the estimated values of assets acquired and liabilities assumed in connection with the Dynamic Acquisition (in thousands, except stock price):
Consideration(1)
 
Shares of SandRidge common stock issued
73,962

SandRidge common stock price
$
7.33

Fair value of common stock issued
542,138

Cash consideration(2)
680,000

Cash balance adjustment(3)
13,091

Total purchase price
$
1,235,229

 
 
Estimated Fair Value of Liabilities Assumed
 
Current liabilities
$
129,363

Asset retirement obligations(4)
315,922

Long-term deferred tax liability(5)
100,288

Other non-current liabilities
4,469

Amount attributable to liabilities assumed
550,042

Total purchase price plus liabilities assumed
1,785,271

 
 
Estimated Fair Value of Assets Acquired
 
Current assets
142,027

Oil and natural gas properties(6)
1,746,753

Other property, plant and equipment
1,296

Other non-current assets
17,891

Amount attributable to assets acquired
1,907,967

Bargain purchase gain(7)
$
(122,696
)
____________________
(1)
Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date.
(2)
Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022.
(3)
In accordance with the acquisition agreement, the Company remitted to the seller a cash payment equal to Dynamic’s average daily cash balance for the 30-day period ending on the second day prior to closing. This resulted in an additional cash payment by the Company of $13.1 million at closing.
(4)
The estimated fair value of the acquired asset retirement obligation was determined using the Company’s credit adjusted risk-free rate.
(5)
The net deferred tax liability is primarily a result of the difference between the estimated fair value and the Company’s expected tax basis in the assets acquired and liabilities assumed. The net deferred tax liability also includes the effects of deferred tax assets associated with net operating losses and other tax attributes acquired as a result of the Dynamic Acquisition.
(6)
The fair value of oil and natural gas properties acquired was estimated using a discounted cash flow model, with future cash flows estimated based upon projections of oil and natural gas reserve quantities and weighted average oil and natural gas prices of $113.62 per barrel of oil and $3.83 per Mcf of natural gas, after adjustment for transportation fees and regional price differentials. The commodity prices utilized were based upon commodity strip prices as of April 17, 2012 for the first four years and escalated for inflation at a rate of 2.0% annually beginning with the fifth year through the end of production. Future cash flows were discounted using an industry weighted average cost of capital rate.
(7)
The bargain purchase gain results from the excess of the fair value of net assets acquired over consideration paid and, as additional information becomes available, is subject to adjustment. To validate the estimated bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition.
Unaudited Pro Forma Results of Operations
The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the Dynamic Acquisition or any estimated costs incurred to integrate Dynamic. 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.
 
Three Months Ended March 31, 2012
 
(in thousands, except per share data)
Revenues
$
529,805

Net loss (1)
$
(218,725
)
Loss applicable to SandRidge Energy, Inc. common stockholders (1)
$
(234,560
)
Loss per common share (1)
 
Basic
$
(0.49
)
Diluted
$
(0.49
)
_________________
(1)
Pro forma net loss, loss applicable to SandRidge Energy, Inc. common stockholders and loss per common share exclude $2.5 million of acquisition costs and $10.9 million of fees to secure financing included in the accompanying unaudited condensed consolidated statement of operations for the three-month period ended March 31, 2012.
Gulf of Mexico Properties
  
Business Acquisitions and Dispositions [Line Items]  
Schedule of Purchase Price Allocation
The following table summarizes the consideration paid to acquire the properties and the final valuation of assets acquired and liabilities assumed as of June 20, 2012 (in thousands):
 
 
Consideration paid
 
Cash, net of purchase price adjustments
$
43,282

Fair value of identifiable assets acquired and liabilities assumed
 
Proved developed and undeveloped properties
$
98,725

Asset retirement obligation
(55,443
)
Total identifiable net assets
$
43,282
Unaudited Pro Forma Results of Operations
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.
 
Three Months Ended March 31, 2012
 
(In thousands, except per share data)
Revenues
$
396,252

Net loss
$
(215,020
)
Loss applicable to SandRidge Energy, Inc. common stockholders
$
(230,855
)
Loss per common share
 
Basic
$
(0.58
)
Diluted
$
(0.58
)
Permian Properties
  
Business Acquisitions and Dispositions [Line Items]  
Disposal, Revenue and Expense Information
The following table presents revenues and direct operating expenses of the Permian Properties included in the accompanying unaudited condensed consolidated statements of operations for the three months ended March 31, 2013 and 2012 (in thousands):
 
Three Months Ended March 31,
 
2013(1)
 
2012
Revenue
$
68,027

 
$
161,765

Direct operating expenses
$
17,453

 
$
35,990

__________________
(1)    Information for the three months ended March 31, 2013 is through February 26, 2013, the date of sale.
Drilling Carry Transaction Activities
  
Business Acquisitions and Dispositions [Line Items]  
Drilling and Completion Costs Associated with Sale of Working Interests
These transactions and the associated drilling carries as of March 31, 2013 were as follows: 
Partner
 
Closing Date
 
Total Drilling Carry
 
Drilling Carry Recorded
 
Drilling Carry Remaining
 
 
 
 
(in millions)
Atinum MidCon I, LLC
 
September 2011
 
$
250.0

 
$
197.2

 
$
52.8

Repsol E&P USA, Inc.
 
January 2012
 
750.0

 
312.5

 
437.5

 
 
 
 
$
1,000.0

 
$
509.7

 
$
490.3