Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2014

Condensed Consolidating Financial Statements Disclosure [Abstract]

Unaudited Condensed Consolidating Balance Sheets of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors

Condensed Consolidating Balance Sheets



	June 30, 2014
	Parent		Guarantors		Non-Guarantors		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	910,633	$	1,249	$	6,876	$	—		$	918,758
Accounts receivable, net	—		315,004		18,296		—			333,300
Intercompany accounts receivable	278,510		1,347,065		57,708		(1,683,283		)	—
Derivative contracts	—		2,179		115		(2,179		)	115
Prepaid expenses	—		12,345		—		(8		)	12,337
Other current assets	1,388		23,703		15		—			25,106
Total current assets	1,190,531		1,701,545		83,010		(1,685,470		)	1,289,616
Property, plant and equipment, net	—		4,435,593		1,106,226		—			5,541,819
Investment in subsidiaries	6,027,298		18,366		—		(6,045,664		)	—
Derivative contracts	—		3,473		1,568		(2,215		)	2,826
Other assets	64,364		20,077		19		(5,902		)	78,558
Total assets	$	7,282,193	$	6,179,054	$	1,190,823	$	(7,739,251	)	$	6,912,819
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	201,911	$	425,968	$	3,787	$	(8	)	$	631,658
Intercompany accounts payable	1,341,438		303,834		38,011		(1,683,283		)	—
Derivative contracts	—		55,875		3,032		(2,179		)	56,728
Other current liabilities	7,144		12,027		—		—			19,171
Total current liabilities	1,550,493		797,704		44,830		(1,685,470		)	707,557
Investment in subsidiaries	873,956		146,639		—		(1,020,595		)	—
Long-term debt	3,201,067		—		—		(5,902		)	3,195,165
Derivative contracts	—		7,101		647		(2,215		)	5,533
Asset retirement obligations	—		55,210		—		—			55,210
Other long-term obligations	94		19,058		—		—			19,152
Total liabilities	5,625,610		1,025,712		45,477		(2,714,182		)	3,982,617
Equity
SandRidge Energy, Inc. stockholders’ equity	1,656,583		5,153,342		1,145,346		(6,298,688		)	1,656,583
Noncontrolling interest	—		—		—		1,273,619			1,273,619
Total equity	1,656,583		5,153,342		1,145,346		(5,025,069		)	2,930,202
Total liabilities and equity	$	7,282,193	$	6,179,054	$	1,190,823	$	(7,739,251	)	$	6,912,819



	December 31, 2013 (Revised)
	Parent(1)		Guarantors(2)		Non-Guarantors		Eliminations(1)(2)			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	—		5,125,543		1,182,132		—			6,307,675
Investment in subsidiaries	6,009,603		49,418		—		(6,059,021		)	—
Derivative contracts	—		12,650		9,585		(8,109		)	14,126
Other assets	61,923		65,123		27		(5,902		)	121,171
Total assets	$	7,031,732	$	6,633,987	$	1,307,829	$	(7,288,753	)	$	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		181,573		57,018		(1,205,956		)	—
Derivative contracts	—		44,032		—		(9,765		)	34,267
Asset retirement obligations	—		87,063		—		—			87,063
Total current liabilities	1,174,937		913,742		60,860		(1,215,721		)	933,818
Investment in subsidiaries	828,794		152,266		—		(981,060		)	—
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	5,205,922		1,453,178		60,860		(2,210,792		)	4,509,168
Equity
SandRidge Energy, Inc. stockholders’ equity	1,825,810		5,180,809		1,246,969		(6,427,778		)	1,825,810
Noncontrolling interest	—		—		—		1,349,817			1,349,817
Total equity	1,825,810		5,180,809		1,246,969		(5,077,961		)	3,175,627
Total liabilities and equity	$	7,031,732	$	6,633,987	$	1,307,829	$	(7,288,753	)	$	7,684,795

____________________

(1)

Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $828.8 million, as liabilities and to present $55.6 million Parent loss on sale of subsidiary with full cost pool assets in 2012 as a reduction to Guarantor full cost pool (property, plant and equipment, net) and a reduction to Parent equity. Loss on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

(2)

Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $152.3 million, as liabilities. Property, plant and equipment, net has been revised to present $55.6 million Parent loss on sale of subsidiary with full cost pool assets in 2012 as a reduction to the Guarantor full cost pool (property, plant and equipment, net) and a reduction to Guarantor equity. Loss on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

Unaudited Condensed Consolidating Statements of Operations of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors

Condensed Consolidating Statements of Operations



	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Three Months Ended June 30, 2014
Total revenues	$	—		$	314,521		$	60,205	$	(12	)	$	374,714
Expenses
Direct operating expenses	—			85,142			4,931		(12		)	90,061
General and administrative	71			30,481			1,363		—			31,915
Depreciation, depletion, amortization and accretion	—			99,237			14,506		—			113,743
Impairment	—			3,133			—		—			3,133
Loss on derivative contracts	—			67,509			17,783		—			85,292
Loss on sale of assets	—			36			—		—			36
Total expenses	71			285,538			38,583		(12		)	324,180
(Loss) income from operations	(71		)	28,983			21,622		—			50,534
Equity earnings from subsidiaries	36,180			5,863			—		(42,043		)	—
Interest expense	(61,859		)	(4		)	—		—			(61,863		)
Other income, net	—			1,338			—		—			1,338
(Loss) income before income taxes	(25,750		)	36,180			21,622		(42,043		)	(9,991		)
Income tax (benefit) expense	(1,311		)	—			117		—			(1,194		)
Net (loss) income	(24,439		)	36,180			21,505		(42,043		)	(8,797		)
Less: net income attributable to noncontrolling interest	—			—			—		15,642			15,642
Net (loss) income attributable to SandRidge Energy, Inc.	$	(24,439	)	$	36,180		$	21,505	$	(57,685	)	$	(24,439	)



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Three Months Ended June 30, 2013
Total revenues	$	—		$	425,319		$	81,956		$	5,712		$	512,987
Expenses
Direct operating expenses	—			165,467			6,156			5,280			176,903
General and administrative	88			171,652			1,089			432			173,261
Depreciation, depletion, amortization and accretion	—			141,299			23,426			—			164,725
Impairment	—			12,703			2,940			—			15,643
Gain on derivative contracts	—			(88,653		)	(15,001		)	—			(103,654		)
Gain on sale of assets	—			(340		)	(9		)	—			(349		)
Total expenses	88			402,128			18,601			5,712			426,529
(Loss) income from operations	(88		)	23,191			63,355			—			86,458
Equity earnings from subsidiaries	41,450			18,233			—			(59,683		)	—
Interest (expense) income	(61,392		)	233			—			—			(61,159		)
Other (expense) income, net	—			(207		)	101			—			(106		)
(Loss) income before income taxes	(20,030		)	41,450			63,456			(59,683		)	25,193
Income tax expense	406			—			102			—			508
Net (loss) income	(20,436		)	41,450			63,354			(59,683		)	24,685
Less: net income attributable to noncontrolling interest	—			—			—			45,121			45,121
Net (loss) income attributable to SandRidge Energy, Inc.	$	(20,436	)	$	41,450		$	63,354		$	(104,804	)	$	(20,436	)



	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2014
Total revenues	$	—		$	693,570		$	124,299	$	(99	)	$	817,770
Expenses
Direct operating expenses	—			215,242			9,741		(99		)	224,884
General and administrative	220			67,426			2,807		—			70,453
Depreciation, depletion, amortization and accretion	—			219,814			30,382		—			250,196
Impairment	—			125,599			42,313		—			167,912
Loss on derivative contracts	—			101,611			26,172		—			127,783
Loss on sale of assets	—			17			—		—			17
Total expenses	220			729,709			111,415		(99		)	841,245
(Loss) income from operations	(220		)	(36,139		)	12,884		—			(23,475		)
Equity earnings from subsidiaries	(29,483		)	3,086			—		26,397			—
Interest (expense) income	(124,045		)	139			—		—			(123,906		)
Other income, net	—			3,431			1		—			3,432
(Loss) income before income taxes	(153,748		)	(29,483		)	12,885		26,397			(143,949		)
Income tax (benefit) expense	(1,294		)	—			227		—			(1,067		)
Net (loss) income	(152,454		)	(29,483		)	12,658		26,397			(142,882		)
Less: net income attributable to noncontrolling interest	—			—			—		9,572			9,572
Net (loss) income attributable to SandRidge Energy, Inc.	$	(152,454	)	$	(29,483	)	$	12,658	$	16,825		$	(152,454	)



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2013
Total revenues	$	—		$	865,636		$	159,484		$	(443	)	$	1,024,677
Expenses
Direct operating expenses	—			329,018			18,388			(443		)	346,963
General and administrative	175			248,470			4,060			—			252,705
Depreciation, depletion, amortization and accretion	—			301,188			46,178			—			347,366
Impairment	—			12,703			2,940			—			15,643
Gain on derivative contracts	—			(57,753		)	(5,004		)	—			(62,757		)
Loss on sale of assets	—			290,616			107,209			—			397,825
Total expenses	175			1,124,242			173,771			(443		)	1,297,745
Loss from operations	(175		)	(258,606		)	(14,287		)	—			(273,068		)
Equity earnings from subsidiaries	(265,374		)	(8,409		)	—			273,783			—
Interest (expense) income	(147,495		)	426			—			—			(147,069		)
Loss on extinguishment of debt	(82,005		)	—			—			—			(82,005		)
Other income (expense), net	—			1,215			(710		)	—			505
Loss before income taxes	(495,049		)	(265,374		)	(14,997		)	273,783			(501,637		)
Income tax expense	4,727			—			210			—			4,937
Net loss	(499,776		)	(265,374		)	(15,207		)	273,783			(506,574		)
Less: net loss attributable to noncontrolling interest	—			—			—			(6,798		)	(6,798		)
Net loss attributable to SandRidge Energy, Inc.	$	(499,776	)	$	(265,374	)	$	(15,207	)	$	280,581		$	(499,776	)

Unaudited Condensed Consolidating Statements of Cash Flows of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors

Condensed Consolidating Statements of Cash Flows



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2014
Net cash provided by (used in) operating activities	$	263,677		$	(153,823	)	$	126,424		$	(5,486	)	$	230,792
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(656,699		)	—			—			(656,699		)
Proceeds from sale of assets	—			707,799			—			—			707,799
Other	—			(104,286		)	1,061			86,672			(16,553		)
Net cash (used in) provided by investing activities	—			(53,186		)	1,061			86,672			34,547
Cash flows from financing activities
Distributions to unitholders	—			—			(127,985		)	24,843			(103,142		)
Intercompany (advances) borrowings, net	(125,185		)	124,804			381			—			—
Other	(33,364		)	82,441			(1,150		)	(106,029		)	(58,102		)
Net cash (used in) provided by financing activities	(158,549		)	207,245			(128,754		)	(81,186		)	(161,244		)
Net increase (decrease) in cash and cash equivalents	105,128			236			(1,269		)	—			104,095
Cash and cash equivalents at beginning of year	805,505			1,013			8,145			—			814,663
Cash and cash equivalents at end of period	$	910,633		$	1,249		$	6,876		$	—		$	918,758



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2013
Net cash (used in) provided by operating activities	$	(162,836	)	$	420,672		$	120,672		$	6,175		$	384,683
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(828,585		)	—			—			(828,585		)
Proceeds from sale of assets	—			2,563,791			95			—			2,563,886
Other	—			31,015			37			(39,654		)	(8,602		)
Net cash provided by investing activities	—			1,766,221			132			(39,654		)	1,726,699
Cash flows from financing activities
Repayments of borrowings	(1,115,500		)	—			—			—			(1,115,500		)
Distribution to unitholders	—			—			(144,810		)	46,094			(98,716		)
Premium on debt redemption	(61,997		)	—			—			—			(61,997		)
Intercompany borrowings (advances), net	2,181,850			(2,192,164		)	10,314			—			—
Other	(56,322		)	5,728			12,615			(12,615		)	(50,594		)
Net cash provided by (used in) financing activities	948,031			(2,186,436		)	(121,881		)	33,479			(1,326,807		)
Net increase (decrease) in cash and cash equivalents	785,195			457			(1,077		)	—			784,575
Cash and cash equivalents at beginning of year	300,228			922			8,616			—			309,766
Cash and cash equivalents at end of period	$	1,085,423		$	1,379		$	7,539		$	—		$	1,094,341