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Derivatives (Tables)
 9 Months Ended
Sep. 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 September 30, 2013 and December 31, 2012 on a gross basis without regard to same-counterparty netting (in thousands):
Type of Contract
 
Balance Sheet Classification
 
September 30,
2013
 
December 31,
2012
Derivative assets
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts-current
 
$
14,585

 
$
88,052

Natural gas price swaps
 
Derivative contracts-current
 
6,374

 
—

Oil basis swaps
 
Derivative contracts-current
 
—

 
183

Natural gas collars
 
Derivative contracts-current
 
727

 
3,111

Oil price swaps
 
Derivative contracts-noncurrent
 
23,050

 
37,983

     Oil collars - three way
 
Derivative contracts-noncurrent
 
12,837

 
190

Natural gas collars
 
Derivative contracts-noncurrent
 
513

 
884

Derivative liabilities
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts-current
 
(43,519
)
 
(31,991
)
Oil basis swaps
 
Derivative contracts-current
 
—

 
(695
)
Oil collars - two way
 
Derivative contracts-current
 
(92
)
 
(103
)
Oil collars - three way
 
Derivative contracts-current
 
(6,240
)
 
—

Interest rate swap
 
Derivative contracts-current
 
—

 
(2,395
)
Oil price swaps
 
Derivative contracts-noncurrent
 
(45,464
)
 
(67,900
)
Oil collars - three way
 
Derivative contracts-noncurrent
 
—

 
(7,327
)
Total net derivative contracts
 
$
(37,229
)
 
$
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 Royalty Trusts' novated derivative contracts associated with the Company’s net derivative liability positions (in thousands):

September 30, 2013
 
 
Gross Amounts
 
Gross Amounts Offset
 
Amounts Net of Offset
 
Financial Collateral
 
Net Amount
Assets
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
21,686

 
$
(13,380
)
 
$
8,306

 
$
—

 
$
8,306

Derivative contracts - noncurrent
 
36,400

 
(20,922
)
 
15,478

 
—

 
15,478

Total
 
$
58,086

 
$
(34,302
)
 
$
23,784

 
$
—

 
$
23,784

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
49,851

 
$
(13,380
)
 
$
36,471

 
$
(36,471
)
 
$
—

Derivative contracts - noncurrent
 
45,464

 
(20,922
)
 
24,542

 
(24,542
)
 
—

Total
 
$
95,315

 
$
(34,302
)
 
$
61,013

 
$
(61,013
)
 
$
—

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 gains and losses on the Company’s commodity derivative contracts and interest rate swap, which are included in loss (gain) on derivative contracts and interest expense, respectively, in the accompanying unaudited condensed consolidated statements of operations for the three and nine-month periods ended September 30, 2013 and 2012 (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Commodity Derivatives
 
 
 
 
 
 
 
Loss (gain) on settlement(1)
$
13,203

 
$
(28,970
)
 
$
11,571

 
$
7,366

Loss (gain) due to change in fair value
119,605

 
222,467

 
58,480

 
(229,073
)
Loss (gain) on commodity derivative contracts
$
132,808

 
$
193,497

 
$
70,051

 
$
(221,707
)
Interest Rate Swap
 
 
 
 
 
 
 
Loss on settlement
$
—

 
$
2,330

 
$
2,409

 
$
6,824

Gain due to change in fair value
—

 
(2,033
)
 
(2,395
)
 
(5,632
)
Loss on interest rate swap
$
—

 
$
297

 
$
14

 
$
1,192

____________________
(1)
The three-month period ended September 30, 2012 included $2.1 million of gains related to settlements of commodity derivative contracts with contractual maturities after the quarterly period in which they were settled (“early settlements”). The nine-month periods ended September 30, 2013 and 2012 included $29.3 million and $(59.5) million, respectively, of losses (gains) related to early settlements. The nine-month period ended September 30, 2012 also included $117.1 million of non-cash losses due to the amendment of derivative contracts in January 2012.
Open Oil and Natural Gas Commodity Derivative Contracts
At September 30, 2013, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps 
 
Notional (MBbls)
 
Weighted Average
Fixed Price
October 2013 - December 2013
3,494

 
$
99.48

January 2014 - December 2014
8,813

 
$
92.98

January 2015 - December 2015
6,614

 
$
85.25


Natural Gas Price Swaps 
 
Notional (MMcf)
 
Weighted Average
Fixed Price
October 2013 - December 2013
12,420

 
$
4.11

Oil Collars - Two-way
 
Notional (MBbls)
 
Collar Range
October 2013 - December 2013
42

 
$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
October 2013 - December 2013
1,716

 
$3.78
—
$6.71
January 2014 - December 2014
937

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

 
$4.00
—
$8.55