Subsequent Events

Sale of Permian Trust Units. On January 9, 2014, the Company sold the remainder of the Permian Trust common units it owned in a transaction exempt from registration pursuant to Rule 144 under the Securities Act for total proceeds of $22.1 million. Subsequent to the sale, the Company owned an approximate 25.0% beneficial interest in the Permian Trust which was attributable to its ownership of the subordinated units.

Royalty Trust Distributions. On January 30, 2014, the Royalty Trusts announced quarterly distributions for the three-month period ended December 31, 2013. The following distributions will be paid on February 28, 2014 to holders of record as of the close of business on February 14, 2014 (in thousands):



Royalty Trust	Total Distribution		Amount to be Distributed to Third-Party Unitholders
Mississippian Trust I	$	10,508	$	10,242
Permian Trust	33,677		25,239
Mississippian Trust II	24,160		17,637
Total	$	68,345	$	53,118

Sale of Gulf Properties. On February 25, 2014, the Company sold certain of its subsidiaries that own the Company’s Gulf Properties, for $750.0 million, subject to purchase price and post-closing adjustments, and the buyer’s assumption of approximately $370.0 million of related asset retirement obligations to Fieldwood Energy LLC. This transaction is not expected to result in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company will record the proceeds as a reduction of its full cost pool with no gain or loss on the sale.

Under the agreement, the Company has agreed to guarantee certain plugging and abandonment obligations associated with the Gulf Properties to the Bureau of Ocean Energy Management for a period of up to one year from the date of closing. The Company recorded a liability equal to the fair value of the guarantee at the time the transaction closed. As of December 31, 2013, the fair value of the guarantee was approximately $9.0 million. As part of the agreement, the buyer has agreed to indemnify the Company for any costs it may incur as a result of the guarantee. Additionally, the buyer of the Gulf Properties will maintain restricted deposits, totaling approximately $27.9 million, that have been placed in escrow for plugging and abandonment obligations associated with the Gulf Properties for a period of up to one year from the closing date. Upon expiration of the guarantee, the Company will receive payment for half of such restricted deposits, or approximately $14.0 million from the purchaser.

In conjunction with the divestiture of the Gulf Properties, the Company settled a portion of its existing oil derivative contracts in January and February 2014 prior to their respective maturities to reduce production volumes covered by derivative contracts in proportion to the anticipated reduction in production volumes due to the sale, which resulted in cash payments of approximately $69.6 million.

The following unaudited pro forma combined results of operations for the year ended December 31, 2013 are presented as though the Company divested of the Gulf Properties as of January 1, 2013. The pro forma combined results of operations for the year ended December 31, 2013 has been prepared by adjusting the historical results of the Company to include the historical results of the acquired properties and estimates of the effect of the transaction on the combined results. The 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 been in effect for the periods presented. 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,
	2013
	(In thousands, except per share data)
	(Unaudited)
Revenues	$	1,356,152
Net loss(1)	$	(1,068,664	)
Loss attributable to SandRidge Energy, Inc. common stockholders(1)	$	(1,028,055	)
Loss per common share(1)
Basic	$	(2.25	)
Diluted	$	(2.25	)

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(1)	Includes pro forma ceiling impairment of $441.0 million, including $80.0 million allocated to noncontrolling interest and $361.0 million attributable to SandRidge Energy, Inc., for the year ended December 31, 2013.

For the year ended December 31, 2013, the Gulf Properties had associated production, revenues and expenses, including direct operating expenses, depletion, accretion of asset retirement obligations, and general and administrative expenses, of 10.1 MMBoe, $627.2 million and $492.0 million, respectively.