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Derivatives (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2013 and December 31, 2012 on a gross basis without regard to same-counterparty netting (in thousands):
Type of Contract
 
Balance Sheet Classification
 
June 30, 2013
 
December 31, 2012
Derivative assets
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts-current
 
$
46,648

 
$
88,052

Natural gas price swaps
 
Derivative contracts-current
 
13,230

 
—

Oil basis swaps
 
Derivative contracts-current
 
—

 
183

Oil collars - three way
 
Derivative contracts-current
 
8,203

 
—

Natural gas collars
 
Derivative contracts-current
 
1,166

 
3,111

Oil price swaps
 
Derivative contracts-noncurrent
 
41,167

 
37,983

     Oil collars - three way
 
Derivative contracts-noncurrent
 
26,483

 
190

Natural gas collars
 
Derivative contracts-noncurrent
 
587

 
884

Derivative liabilities
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts-current
 
(17,576
)
 
(31,991
)
Oil basis swaps
 
Derivative contracts-current
 
—

 
(695
)
Oil collars - two way
 
Derivative contracts-current
 
(45
)
 
(103
)
Interest rate swap
 
Derivative contracts-current
 
—

 
(2,395
)
Oil price swaps
 
Derivative contracts-noncurrent
 
(36,781
)
 
(67,900
)
Oil collars - three way
 
Derivative contracts-noncurrent
 
—

 
(7,327
)
Total net derivative contracts
 
$
83,082

 
$
19,992
Offsetting Assets and Liabilities
ts. 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 Royalty Trusts' novated derivative contracts associated with the Company’s net derivative liability positions (in thousands):

June 30, 2013
 
 
Gross Amounts
 
Gross Amounts Offset
 
Amounts Net of Offset
 
Financial Collateral
 
Net Amount
Assets
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
69,247

 
$
(15,823
)
 
$
53,424

 
$
—

 
$
53,424

Derivative contracts - noncurrent
 
68,237

 
(25,064
)
 
43,173

 
—

 
43,173

Total
 
$
137,484

 
$
(40,887
)
 
$
96,597

 
$
—

 
$
96,597

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
17,621

 
$
(15,823
)
 
$
1,798

 
$
(1,798
)
 
$
—

Derivative contracts - noncurrent
 
36,781

 
(25,064
)
 
11,717

 
(11,717
)
 
—

Total
 
$
54,402

 
$
(40,887
)
 
$
13,515

 
$
(13,515
)
 
$
—

December 31, 2012
 
 
Gross Amounts
 
Gross Amounts Offset
 
Amounts Net of Offset
 
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 gain on derivative contracts and interest expense, respectively, in the accompanying unaudited condensed consolidated statements of operations for the three and six-month periods ended June 30, 2013 and 2012 (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
Commodity Derivatives
 
 
 
 
 
 
 
Realized (gain) loss(1)
$
(17,717
)
 
$
(89,120
)
 
$
(1,632
)
 
$
36,336

Unrealized gain
(85,937
)
 
(580,730
)
 
(61,125
)
 
(451,540
)
Gain on commodity derivative contracts
$
(103,654
)
 
$
(669,850
)
 
$
(62,757
)
 
$
(415,204
)
Interest Rate Swap
 
 
 
 
 
 
 
Realized loss
$
—

 
$
2,294

 
$
2,409

 
$
4,494

Unrealized gain
—

 
(2,245
)
 
(2,395
)
 
(3,599
)
Loss on interest rate swap
$
—

 
$
49

 
$
14

 
$
895

____________________
(1)
The three-month periods ended June 30, 2013 and 2012 included $0.7 million and $57.3 million, respectively, of realized gains related to settlements of commodity derivative contracts with contractual maturities after the quarterly period in which they were settled (“early settlements”). The six-month periods ended June 30, 2013 and 2012 included $29.0 million and $(57.3) million, respectively, of realized losses (gains) related to early settlements. The six-month period ended June 30, 2012 also included $117.1 million of non-cash realized losses on derivative contracts amended in January 2012.
Open Oil and Natural Gas Commodity Derivative Contracts
At June 30, 2013, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps 
 
Notional (MBbls)
 
Weighted Average
Fixed Price
July 2013 - December 2013
6,211

 
$
99.19

January 2014 - December 2014
7,511

 
$
92.42

January 2015 - December 2015
5,076

 
$
83.69


Natural Gas Price Swaps 
 
Notional (MMcf)
 
Weighted Average
Fixed Price
July 2013 - December 2013
28,520

 
$
4.11

Oil Collars - Two-way
 
Notional (MBbls)
 
Collar Range
July 2013 - December 2013
84

 
$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
July 2013 - December 2013
3,432

 
$3.78
—
$6.71
January 2014 - December 2014
937

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

 
$4.00
—
$8.55