XML 51 R32.htm IDEA: XBRL DOCUMENT v2.4.0.6
Derivatives (Tables)
 3 Months Ended
Mar. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value of Derivatives
The following table presents the fair value of the Company’s derivative contracts as of March 31, 2013 and December 31, 2012 on a gross basis without regard to same-counterparty netting (in thousands):
Type of Contract
 
Balance Sheet Classification
 
March 31,
2013
 
December 31,
2012
Derivative assets
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts-current
 
$
44,306

 
$
88,052

Oil basis swaps
 
Derivative contracts-current
 
122

 
183

Oil collars - three way
 
Derivative contracts-current
 
311

 
—

Natural gas collars
 
Derivative contracts-current
 
600

 
3,111

Oil price swaps
 
Derivative contracts-noncurrent
 
32,710

 
37,983

     Oil collars - three way
 
Derivative contracts-noncurrent
 
12,019

 
190

Natural gas collars
 
Derivative contracts-noncurrent
 
639

 
884

Derivative liabilities
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts-current
 
(29,161
)
 
(31,991
)
Natural gas price swaps
 
Derivative contracts-current
 
(2,985
)
 
—

Oil basis swaps
 
Derivative contracts-current
 
(333
)
 
(695
)
Oil collars - two way
 
Derivative contracts-current
 
(137
)
 
(103
)
Interest rate swap
 
Derivative contracts-current
 
—

 
(2,395
)
Oil price swaps
 
Derivative contracts-noncurrent
 
(60,533
)
 
(67,900
)
Oil collars - three way
 
Derivative contracts-noncurrent
 
—

 
(7,327
)
Total net derivative contracts
 
$
(2,442
)
 
$
19,992
Offsetting Assets and Liabilities
The following tables summarize the Company's derivative contracts on a gross basis, the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements, and the applicable portion of shared collateral under the senior credit facility for SandRidge's derivative contracts and under the liens granted by the Permian Trust and the Mississippian Trust II on their royalty interest for the Trusts' novated derivative contracts associated with the Company's net derivative liability position (in thousands):

March 31, 2013
 
 
Gross Amounts
 
Gross Amounts Offset
 
Net Amounts
 
Financial Collateral
 
Net Amount
Assets
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
45,339

 
$
(19,646
)
 
$
25,693

 
$
—

 
$
25,693

Derivative contracts - noncurrent
 
45,368

 
(20,149
)
 
25,219

 
—

 
25,219

Total
 
$
90,707

 
$
(39,795
)
 
$
50,912

 
$
—

 
$
50,912

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
32,616

 
$
(19,646
)
 
$
12,970

 
$
(12,970
)
 
$
—

Derivative contracts - noncurrent
 
60,533

 
(20,149
)
 
40,384

 
(40,384
)
 
—

Total
 
$
93,149

 
$
(39,795
)
 
$
53,354

 
$
(53,354
)
 
$
—



December 31, 2012
 
 
Gross Amounts
 
Gross Amounts Offset
 
Net Amounts
 
Financial Collateral
 
Net Amount
Assets
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
91,346

 
$
(20,324
)
 
$
71,022

 
$
—

 
$
71,022

Derivative contracts - noncurrent
 
39,057

 
(15,440
)
 
23,617

 
—

 
23,617

Total
 
$
130,403

 
$
(35,764
)
 
$
94,639

 
$
—

 
$
94,639

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
35,184

 
$
(20,324
)
 
$
14,860

 
$
(14,860
)
 
$
—

Derivative contracts - noncurrent
 
75,227

 
(15,440
)
 
59,787

 
(59,787
)
 
—

Total
 
$
110,411

 
$
(35,764
)
 
$
74,647

 
$
(74,647
)
 
$
—
Cash Settlements and Valuation Gains and Losses on Derivative Contracts and Interest Rate Swaps
The following table summarizes the cash settlements and valuation gain and loss on the Company’s commodity derivative contracts and interest rate swap, which are included in loss on derivative contracts and interest expense, respectively, in the accompanying unaudited condensed consolidated statements of operations for the three-month periods ended March 31, 2013 and 2012 (in thousands):
 
Three Months Ended March 31,
 
2013
 
2012
Commodity Derivatives
 
 
 
Realized loss(1)
$
16,085

 
$
125,456

Unrealized loss
24,812

 
129,190

Loss on commodity derivative contracts
$
40,897

 
$
254,646

Interest Rate Swap
 
 
 
Realized loss
$
2,409

 
$
2,200

Unrealized gain
(2,395
)
 
(1,354
)
Loss on interest rate swap
$
14

 
$
846

____________________
(1)
The three-month period ended March 31, 2013 includes $29.6 million of realized losses related to settlements of commodity derivative contracts with contractual maturities after the quarterly period in which they were settled (“early settlements”) in conjunction with the sale of the Permian Properties. The three-month period ended March 31, 2012 includes $117.1 million of non-cash realized losses on derivative contracts amended in January 2012.
Open Commodity Derivative Contracts
At March 31, 2013, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps 
 
Notional (MBbls)
 
Weighted Average
Fixed Price
April 2013 - December 2013
10,142

 
$
98.64

January 2014 - December 2014
7,511

 
$
92.43

January 2015 - December 2015
5,076

 
$
83.69


Natural Gas Price Swaps 
 
Notional (MMcf)
 
Weighted Average
Fixed Price
April 2013 - December 2013
31,005

 
$
4.01


Oil Basis Swaps 
 
Notional (MBbls)
 
Weighted Average
Fixed Price
April 2013 - June 2013
273

 
$
12.51


Oil Collars - Two-way
 
Notional (MBbls)
 
Collar Range
April 2013 - December 2013
126

 
$80.00
—
$102.50

Oil Collars - Three-way
 
Notional (MBbls)
 
Sold Put
Purchased Put
Sold Call
January 2014 - December 2014
8,213

 
$70.00
$90.20
$100.00
January 2015 - December 2015
2,920

 
$73.13
$90.82
$103.13

Natural Gas Collars
 
Notional (MMcf)
 
Collar Range
April 2013 - December 2013
5,146

 
$3.78
—
$6.71
January 2014 - December 2014
937

 
$4.00
—
$7.78
January 2015 - December 2015
1,010

 
$4.00
—
$8.55