XML 79 R23.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Condensed Consolidating Financial Information | 3 Months Ended
--- | ---
Mar. 31, 2014
Condensed Consolidating Financial Statements Disclosure [Abstract] |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The Company provides condensed consolidating financial information for its subsidiaries that are guarantors of its registered debt. As of March 31, 2014, the subsidiary guarantors, which are 100% owned by the Company, have jointly and severally guaranteed, on a full, unconditional and unsecured basis, the Company’s outstanding Senior Fixed Rate Notes. The subsidiary guarantees (i) rank equally in right of payment with all of the existing and future senior debt of the subsidiary guarantors; (ii) rank senior to all of the existing and future subordinated debt of the subsidiary guarantors; (iii) are effectively subordinated in right of payment to any existing or future secured obligations of the subsidiary guarantors to the extent of the value of the assets securing such obligations; (iv) are structurally subordinated to all debt and other obligations of the subsidiaries of the guarantors who are not themselves subsidiary guarantors; and (v) are only released under certain customary circumstances. The Company’s subsidiary guarantors guarantee payments of principal and interest under the Company’s registered notes. Certain of the Company’s wholly owned subsidiaries sold in February 2014, as discussed in Note 2, guaranteed the Company’s registered debt. Upon the closing of the sale, these subsidiaries were released from their guarantees. The condensed consolidating financial information in the tables below reflects these subsidiaries’ financial information through the date of the sale. The following condensed consolidating financial information represents the financial information of SandRidge Energy, Inc., its wholly owned subsidiary guarantors and its non-guarantor subsidiaries, prepared on the equity basis of accounting. The non-guarantor subsidiaries, including consolidated VIEs, majority owned subsidiaries and certain immaterial wholly owned subsidiaries, are included in the non-guarantors column in the tables below. The financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the subsidiary guarantors operated as independent entities. During the three-month period ended June 30, 2013, a revision was identified in the Company’s presentation of changes in intercompany advances (borrowings) in the condensed consolidating statement of cash flows. The intercompany advances (borrowings) represent cash flows between the Parent and the Guarantors and Non-Guarantors and are based on the Parent’s centralized treasury activities. Previously, the Company reflected the changes in intercompany advances (borrowings) in net cash provided by (used in) operating activities and such changes should have been reflected as a separate line within net cash provided by (used in) financing activities. The Company concluded these revisions were not material individually or in the aggregate to any of the historical condensed consolidating financial information. Accordingly, the Company revised its condensed consolidating statements of cash flows to reflect the changes in intercompany advances (borrowings) in cash flows from financing activities. These revisions had no impact on the Company’s consolidated financial statements or the other condensed consolidating financial information. The revisions related to each of the Parent, Guarantors and Non-Guarantors associated with cash flows from operating activities had corresponding offsetting impacts to cash flows from financing activities resulting in no impact to net increase (decrease) in cash and cash equivalents. Net cash provided by (used in) operating activities increased (decreased) and net cash provided by (used in) financing activities decreased (increased) by the same amount as shown in the table below for the historical three-month period ended March 31, 2013.
|  | Three Months Ended March 31, 2013
|  | (In thousands)
Parent |  | $ | (2,287,259 | )
Guarantors |  | $ | 2,297,970 |
Non-Guarantors |  | $ | (10,711 | )
Condensed Consolidating Balance Sheets
| March 31, 2014
| Parent |  | Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In thousands)
ASSETS |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,170,581 |  |  | $ | 1,527 |  |  | $ | 7,536 |  |  | $ | — |  |  | $ | 1,179,644 |
Accounts receivable, net | — |  |  | 270,092 |  |  | 23,673 |  |  | — |  |  | 293,765 |
Intercompany accounts receivable | 56,521 |  |  | 1,351,683 |  |  | 59,095 |  |  | (1,467,299 | ) |  | — |
Derivative contracts | — |  |  | 5,702 |  |  | 9,986 |  |  | (6,686 | ) |  | 9,002 |
Prepaid expenses | — |  |  | 13,509 |  |  | 58 |  |  | — |  |  | 13,567 |
Other current assets | 1,375 |  |  | 28,470 |  |  | 122 |  |  | — |  |  | 29,967 |
Total current assets | 1,228,477 |  |  | 1,670,983 |  |  | 100,470 |  |  | (1,473,985 | ) |  | 1,525,945 |
Property, plant and equipment, net | — |  |  | 4,184,730 |  |  | 1,121,873 |  |  | (54,377 | ) |  | 5,252,226 |
Investment in subsidiaries | 5,172,020 |  |  | (123,181 | ) |  | — |  |  | (5,048,839 | ) |  | — |
Derivative contracts | — |  |  | 18,048 |  |  | 4,471 |  |  | (4,471 | ) |  | 18,048 |
Other assets | 66,550 |  |  | 21,367 |  |  | 23 |  |  | (5,902 | ) |  | 82,038 |
Total assets | $ | 6,467,047 |  |  | $ | 5,771,947 |  |  | $ | 1,226,837 |  |  | $ | (6,587,574 | ) |  | $ | 6,878,257 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |
Accounts payable and accrued expenses | $ | 157,676 |  |  | $ | 420,902 |  |  | $ | 3,186 |  |  | $ | — |  |  | $ | 581,764 |
Intercompany accounts payable | 1,355,653 |  |  | 72,335 |  |  | 38,831 |  |  | (1,466,819 | ) |  | — |
Derivative contracts | — |  |  | 20,861 |  |  | — |  |  | (6,686 | ) |  | 14,175 |
Other current liabilities | 6,987 |  |  | 9,480 |  |  | — |  |  | — |  |  | 16,467 |
Total current liabilities | 1,520,316 |  |  | 523,578 |  |  | 42,017 |  |  | (1,473,505 | ) |  | 612,406 |
Long-term debt | 3,200,938 |  |  | — |  |  | — |  |  | (5,902 | ) |  | 3,195,036 |
Derivative contracts | — |  |  | 4,471 |  |  | — |  |  | (4,471 | ) |  | — |
Asset retirement obligations | — |  |  | 53,103 |  |  | — |  |  | — |  |  | 53,103 |
Other long-term obligations | 1,398 |  |  | 18,775 |  |  | — |  |  | — |  |  | 20,173 |
Total liabilities | 4,722,652 |  |  | 599,927 |  |  | 42,017 |  |  | (1,483,878 | ) |  | 3,880,718 |
Equity |  |  |  |  |  |  |  |  |
SandRidge Energy, Inc. stockholders’ equity | 1,744,395 |  |  | 5,172,020 |  |  | 1,184,820 |  |  | (6,411,697 | ) |  | 1,689,538 |
Noncontrolling interest | — |  |  | — |  |  | — |  |  | 1,308,001 |  |  | 1,308,001 |
Total equity | 1,744,395 |  |  | 5,172,020 |  |  | 1,184,820 |  |  | (5,103,696 | ) |  | 2,997,539 |
Total liabilities and equity | $ | 6,467,047 |  |  | $ | 5,771,947 |  |  | $ | 1,226,837 |  |  | $ | (6,587,574 | ) |  | $ | 6,878,257 |
| December 31, 2013
| Parent |  | Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In thousands)
ASSETS |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 805,505 |  |  | $ | 1,013 |  |  | $ | 8,145 |  |  | $ | — |  |  | $ | 814,663 |
Accounts receivable, net | — |  |  | 326,345 |  |  | 22,873 |  |  | — |  |  | 349,218 |
Intercompany accounts receivable | 153,325 |  |  | 982,524 |  |  | 70,107 |  |  | (1,205,956 | ) |  | — |
Derivative contracts | — |  |  | 7,796 |  |  | 14,748 |  |  | (9,765 | ) |  | 12,779 |
Prepaid expenses | — |  |  | 39,165 |  |  | 88 |  |  | — |  |  | 39,253 |
Other current assets | 1,376 |  |  | 24,410 |  |  | 124 |  |  | — |  |  | 25,910 |
Total current assets | 960,206 |  |  | 1,381,253 |  |  | 116,085 |  |  | (1,215,721 | ) |  | 1,241,823 |
Property, plant and equipment, net | — |  |  | 5,181,128 |  |  | 1,182,132 |  |  | (55,585 | ) |  | 6,307,675 |
Investment in subsidiaries | 5,237,057 |  |  | (102,848 | ) |  | — |  |  | (5,134,209 | ) |  | — |
Derivative contracts | — |  |  | 12,650 |  |  | 9,585 |  |  | (8,109 | ) |  | 14,126 |
Other assets | 61,923 |  |  | 65,123 |  |  | 27 |  |  | (5,902 | ) |  | 121,171 |
Total assets | $ | 6,259,186 |  |  | $ | 6,537,306 |  |  | $ | 1,307,829 |  |  | $ | (6,419,526 | ) |  | $ | 7,684,795 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |
Accounts payable and accrued expenses | $ | 207,572 |  |  | $ | 601,074 |  |  | $ | 3,842 |  |  | $ | — |  |  | $ | 812,488 |
Intercompany accounts payable | 967,365 |  |  | 180,910 |  |  | 57,018 |  |  | (1,205,293 | ) |  | — |
Derivative contracts | — |  |  | 44,032 |  |  | — |  |  | (9,765 | ) |  | 34,267 |
Asset retirement obligations | — |  |  | 87,063 |  |  | — |  |  | — |  |  | 87,063 |
Total current liabilities | 1,174,937 |  |  | 913,079 |  |  | 60,860 |  |  | (1,215,058 | ) |  | 933,818 |
Long-term debt | 3,200,809 |  |  | — |  |  | — |  |  | (5,902 | ) |  | 3,194,907 |
Derivative contracts | — |  |  | 28,673 |  |  | — |  |  | (8,109 | ) |  | 20,564 |
Asset retirement obligations | — |  |  | 337,054 |  |  | — |  |  | — |  |  | 337,054 |
Other long-term obligations | 1,382 |  |  | 21,443 |  |  | — |  |  | — |  |  | 22,825 |
Total liabilities | 4,377,128 |  |  | 1,300,249 |  |  | 60,860 |  |  | (1,229,069 | ) |  | 4,509,168 |
Equity |  |  |  |  |  |  |  |  |
SandRidge Energy, Inc. stockholders’ equity | 1,882,058 |  |  | 5,237,057 |  |  | 1,246,969 |  |  | (6,540,274 | ) |  | 1,825,810 |
Noncontrolling interest | — |  |  | — |  |  | — |  |  | 1,349,817 |  |  | 1,349,817 |
Total equity | 1,882,058 |  |  | 5,237,057 |  |  | 1,246,969 |  |  | (5,190,457 | ) |  | 3,175,627 |
Total liabilities and equity | $ | 6,259,186 |  |  | $ | 6,537,306 |  |  | $ | 1,307,829 |  |  | $ | (6,419,526 | ) |  | $ | 7,684,795 |
Condensed Consolidating Statements of Operations
| Parent |  | Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In thousands)
Three Months Ended March 31, 2014 |  |  |  |  |  |  |  |  |
Total revenues | $ | — |  |  | $ | 379,050 |  |  | $ | 64,093 |  |  | $ | (87 | ) |  | $ | 443,056 |
Expenses |  |  |  |  |  |  |  |  |
Direct operating expenses | — |  |  | 130,264 |  |  | 4,810 |  |  | (270 | ) |  | 134,804 |
General and administrative | 148 |  |  | 36,947 |  |  | 1,443 |  |  | — |  |  | 38,538 |
Depreciation, depletion, amortization and accretion | — |  |  | 120,577 |  |  | 15,876 |  |  | — |  |  | 136,453 |
Impairment | — |  |  | 122,466 |  |  | 42,313 |  |  | — |  |  | 164,779 |
Loss on derivative contracts | — |  |  | 34,102 |  |  | 8,389 |  |  | — |  |  | 42,491 |
Total expenses | 148 |  |  | 444,356 |  |  | 72,831 |  |  | (270 | ) |  | 517,065 |
Loss from operations | (148 | ) |  | (65,306 | ) |  | (8,738 | ) |  | 183 |  |  | (74,009 | )
Equity earnings from subsidiaries | (65,038 | ) |  | (2,777 | ) |  | — |  |  | 67,815 |  |  | — |
Interest (expense) income | (62,186 | ) |  | 143 |  |  | — |  |  | — |  |  | (62,043 | )
Loss on sale of subsidiary | — |  |  | (3,282 | ) |  | — |  |  | 3,282 |  |  | — |
Other income, net | — |  |  | 6,184 |  |  | 1 |  |  | (4,091 | ) |  | 2,094 |
Loss before income taxes | (127,372 | ) |  | (65,038 | ) |  | (8,737 | ) |  | 67,189 |  |  | (133,958 | )
Income tax expense | 17 |  |  | — |  |  | 110 |  |  | — |  |  | 127 |
Net loss | (127,389 | ) |  | (65,038 | ) |  | (8,847 | ) |  | 67,189 |  |  | (134,085 | )
Less: net loss attributable to noncontrolling interest | — |  |  | — |  |  | — |  |  | (6,070 | ) |  | (6,070 | )
Net loss attributable to SandRidge Energy, Inc. | $ | (127,389 | ) |  | $ | (65,038 | ) |  | $ | (8,847 | ) |  | $ | 73,259 |  |  | $ | (128,015 | )
| Parent |  | Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In thousands)
Three Months Ended March 31, 2013 |  |  |  |  |  |  |  |  |
Total revenues | $ | — |  |  | $ | 440,318 |  |  | $ | 77,536 |  |  | $ | (6,164 | ) |  | $ | 511,690 |
Expenses |  |  |  |  |  |  |  |  |
Direct operating expenses | — |  |  | 163,611 |  |  | 12,241 |  |  | (5,792 | ) |  | 170,060 |
General and administrative | 87 |  |  | 76,819 |  |  | 2,970 |  |  | (432 | ) |  | 79,444 |
Depreciation, depletion, amortization and accretion | — |  |  | 159,889 |  |  | 22,752 |  |  | — |  |  | 182,641 |
Loss on derivative contracts | — |  |  | 30,900 |  |  | 9,997 |  |  | — |  |  | 40,897 |
Loss on sale of assets | — |  |  | 290,956 |  |  | 107,218 |  |  | — |  |  | 398,174 |
Total expenses | 87 |  |  | 722,175 |  |  | 155,178 |  |  | (6,224 | ) |  | 871,216 |
Loss from operations | (87 | ) |  | (281,857 | ) |  | (77,642 | ) |  | 60 |  |  | (359,526 | )
Equity earnings from subsidiaries | (306,884 | ) |  | (26,641 | ) |  | — |  |  | 333,525 |  |  | — |
Interest (expense) income | (86,103 | ) |  | 192 |  |  | 1 |  |  | — |  |  | (85,910 | )
Loss on extinguishment of debt | (82,005 | ) |  | — |  |  | — |  |  | — |  |  | (82,005 | )
Other income (expense), net | — |  |  | 1,422 |  |  | (811 | ) |  | — |  |  | 611 |
Loss before income taxes | (475,079 | ) |  | (306,884 | ) |  | (78,452 | ) |  | 333,585 |  |  | (526,830 | )
Income tax expense | 4,321 |  |  | — |  |  | 108 |  |  | — |  |  | 4,429 |
Net loss | (479,400 | ) |  | (306,884 | ) |  | (78,560 | ) |  | 333,585 |  |  | (531,259 | )
Less: net loss attributable to noncontrolling interest | — |  |  | — |  |  | — |  |  | (51,919 | ) |  | (51,919 | )
Net loss attributable to SandRidge Energy, Inc. | $ | (479,400 | ) |  | $ | (306,884 | ) |  | $ | (78,560 | ) |  | $ | 385,504 |  |  | $ | (479,340 | )
Condensed Consolidating Statements of Cash Flows
| Parent |  | Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In thousands)
Three Months Ended March 31, 2014 |  |  |  |  |  |  |  |  |
Net cash provided by (used in) operating activities | $ | 289,883 |  |  | $ | (262,831 | ) |  | $ | 65,742 |  |  | $ | (2,343 | ) |  | $ | 90,451 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |
Capital expenditures for property, plant, and equipment | — |  |  | (331,016 | ) |  | — |  |  | — |  |  | (331,016 | )
Proceeds from sale of assets | — |  |  | 706,158 |  |  | — |  |  | 1,208 |  |  | 707,366 |
Other | — |  |  | 29,690 |  |  | (80 | ) |  | (31,962 | ) |  | (2,352 | )
Net cash provided by (used in) investing activities | — |  |  | 404,832 |  |  | (80 | ) |  | (30,754 | ) |  | 373,998 |
Cash flows from financing activities |  |  |  |  |  |  |  |  |
Other | 75,193 |  |  | (141,487 | ) |  | (66,271 | ) |  | 33,097 |  |  | (99,468 | )
Net cash provided by (used in) financing activities | 75,193 |  |  | (141,487 | ) |  | (66,271 | ) |  | 33,097 |  |  | (99,468 | )
Net increase (decrease) in cash and cash equivalents | 365,076 |  |  | 514 |  |  | (609 | ) |  | — |  |  | 364,981 |
Cash and cash equivalents at beginning of year | 805,505 |  |  | 1,013 |  |  | 8,145 |  |  | — |  |  | 814,663 |
Cash and cash equivalents at end of period | $ | 1,170,581 |  |  | $ | 1,527 |  |  | $ | 7,536 |  |  | $ | — |  |  | $ | 1,179,644 |
| Parent |  | Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In thousands)
Three Months Ended March 31, 2013 (Revised) |  |  |  |  |  |  |  |
Net cash (used in) provided by operating activities | $ | (95,203 | ) |  | $ | 155,489 |  |  | $ | 57,994 |  |  | $ | 3,177 |  |  | $ | 121,457 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |
Capital expenditures for property, plant, and equipment | — |  |  | (421,876 | ) |  | — |  |  | — |  |  | (421,876 | )
Proceeds from sale of assets | — |  |  | 2,559,371 |  |  | 3 |  |  | — |  |  | 2,559,374 |
Other | — |  |  | 16,947 |  |  | — |  |  | (21,995 | ) |  | (5,048 | )
Net cash provided by investing activities | — |  |  | 2,154,442 |  |  | 3 |  |  | (21,995 | ) |  | 2,132,450 |
Cash flows from financing activities |  |  |  |  |  |  |  |  |
Repayments of borrowings | (1,115,500 | ) |  | — |  |  | — |  |  | — |  |  | (1,115,500 | )
Premium on debt redemption | (61,997 | ) |  | — |  |  | — |  |  | — |  |  | (61,997 | )
Intercompany borrowings (advances), net | 2,287,259 |  |  | (2,297,970 | ) |  | 10,711 |  |  | — |  |  | — |
Other | (29,395 | ) |  | 3,208 |  |  | (70,074 | ) |  | 18,818 |  |  | (77,443 | )
Net cash provided by (used in) financing activities | 1,080,367 |  |  | (2,294,762 | ) |  | (59,363 | ) |  | 18,818 |  |  | (1,254,940 | )
Net increase (decrease) in cash and cash equivalents | 985,164 |  |  | 15,169 |  |  | (1,366 | ) |  | — |  |  | 998,967 |
Cash and cash equivalents at beginning of year | 300,228 |  |  | 922 |  |  | 8,616 |  |  | — |  |  | 309,766 |
Cash and cash equivalents at end of period | $ | 1,285,392 |  |  | $ | 16,091 |  |  | $ | 7,250 |  |  | $ | — |  |  | $ | 1,308,733 |

X
- Details
Name: | sd_CondensedConsolidatingFinancialStatementsDisclosureAbstract
Namespace Prefix: | sd_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of condensed financial statements, including, but not limited to, the balance sheet, income statement, and statement of cash flows. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCondensedFinancialStatementsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration