XML 63 R42.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivatives (Tables)
 12 Months Ended
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value of Derivative Contracts
The following table presents the fair value of the Company’s derivative contracts as of December 31, 2013 and 2012 on a gross basis without regard to same-counterparty netting (in thousands):
 
 
 
 
December 31,
Type of Contract
 
Balance Sheet Classification
 
2013
 
2012
Derivative assets
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts—current
 
$
15,887

 
$
88,052

Natural gas price swaps
 
Derivative contracts—current
 
1,598

 
—

Oil basis swaps
 
Derivative contracts—current
 
—

 
183

Oil collars—three way
 
Derivative contracts—current
 
706

 
—

Natural gas collars
 
Derivative contracts—current
 
177

 
3,111

Oil price swaps
 
Derivative contracts—noncurrent
 
19,376

 
37,983

Oil collars—three way
 
Derivative contracts—noncurrent
 
12,189

 
190

Natural gas collars
 
Derivative contracts—noncurrent
 
341

 
884

Derivative liabilities
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts—current
 
(38,396
)
 
(31,991
)
Natural gas price swaps
 
Derivative contracts—current
 
(1,460
)
 
—

Oil basis swaps
 
Derivative contracts—current
 
—

 
(695
)
Oil collars—two way
 
Derivative contracts—current
 
—

 
(103
)
Interest rate swap
 
Derivative contracts—current
 
—

 
(2,395
)
Oil price swaps
 
Derivative contracts—noncurrent
 
(38,344
)
 
(67,900
)
Oil collars—three way
 
Derivative contracts—noncurrent
 
—

 
(7,327
)
Total net derivative contracts
 
$
(27,926
)
 
$
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):

December 31, 2013
 
 
Gross Amounts
 
Gross Amounts Offset
 
Amounts Net of Offset
 
Financial Collateral
 
Net Amount
Assets
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
18,368

 
$
(5,589
)
 
$
12,779

 
$
—

 
$
12,779

Derivative contracts - noncurrent
 
31,906

 
(17,780
)
 
14,126

 
—

 
14,126

Total
 
$
50,274

 
$
(23,369
)
 
$
26,905

 
$
—

 
$
26,905

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
39,856

 
$
(5,589
)
 
$
34,267

 
$
(34,267
)
 
$
—

Derivative contracts - noncurrent
 
38,344

 
(17,780
)
 
20,564

 
(20,564
)
 
—

Total
 
$
78,200

 
$
(23,369
)
 
$
54,831

 
$
(54,831
)
 
$
—



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
)
 
$
—
Open Oil and Natural Gas Commodity Derivative Contracts
At December 31, 2013, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps 
 
Notional (MBbls)
 
Weighted Average
Fixed Price
January 2014 — December 2014
8,813

 
$
92.98

January 2015 — December 2015
7,979

 
$
86.13


Natural Gas Price Swaps
 
Notional (MMcf)
 
Weighted Average
Fixed Price
January 2014 — December 2014
35,490

 
$
4.20


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
January 2014 — December 2014
937

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

 
$4.00
—
$8.55