Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Cash Flow Revisions for Prior Periods

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 years ended December 31, 2012 and 2011.



	Year Ended December 31,
	2012			2011
	(In thousands)
Parent	$	945,448		$	288,415
Guarantors	$	(809,099	)	$	(172,927	)
Non-Guarantors	$	(136,349	)	$	(115,488	)

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

Condensed Consolidating Balance Sheets



	December 31, 2013
	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 gain 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. Gain 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 gain 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. Gain 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.



	December 31, 2012 (Revised)
	Parent(1)		Guarantors(2)(3)		Non-Guarantors		Eliminations(1)(2)			Consolidated(3)
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	300,228	$	922	$	8,616	$	—		$	309,766
Accounts receivable, net	—		411,197		34,309		—			445,506
Intercompany accounts receivable	2,162,471		397,238		683,406		(3,243,115		)	—
Derivative contracts	—		60,736		28,484		(18,198		)	71,022
Prepaid expenses	—		31,135		184		—			31,319
Restricted deposit	—		255,000		—		—			255,000
Other current assets	1,375		24,188		4,709		—			30,272
Total current assets	2,464,074		1,180,416		759,708		(3,261,313		)	1,142,885
Property, plant and equipment, net	—		7,181,100		1,298,877		—			8,479,977
Investment in subsidiaries	6,029,671		61,042		—		(6,090,713		)	—
Derivative contracts	—		15,957		33,114		(25,454		)	23,617
Other assets	83,642		66,512		—		(5,902		)	144,252
Total assets	$	8,577,387	$	8,505,027	$	2,091,699	$	(9,383,382	)	$	9,790,731
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	261,215	$	508,412	$	12,463	$	—		$	782,090
Intercompany accounts payable	975,578		1,595,864		671,673		(3,243,115		)	—
Derivative contracts	2,394		30,664		—		(18,198		)	14,860
Asset retirement obligations	—		118,504		—		—			118,504
Deposit on pending sale	—		255,000		—		—			255,000
Total current liabilities	1,239,187		2,508,444		684,136		(3,261,313		)	1,170,454
Investment in subsidiaries	661,033		147,277		—		(808,310		)	—
Long-term debt	4,306,985		—		—		(5,902		)	4,301,083
Derivative contracts	—		85,241		—		(25,454		)	59,787
Asset retirement obligations	—		379,710		196		—			379,906
Other long-term obligations	1,329		15,717		—		—			17,046
Total liabilities	6,208,534		3,136,389		684,332		(4,100,979		)	5,928,276
Equity
SandRidge Energy, Inc. stockholders’ equity	2,368,853		5,368,638		1,407,367		(6,776,005		)	2,368,853
Noncontrolling interest	—		—		—		1,493,602			1,493,602
Total equity	2,368,853		5,368,638		1,407,367		(5,282,403		)	3,862,455
Total liabilities and equity	$	8,577,387	$	8,505,027	$	2,091,699	$	(9,383,382	)	$	9,790,731

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)
Year Ended December 31, 2013
Total revenues	$	—		$	1,675,481		$	308,300		$	(393	)	$	1,983,388
Expenses
Direct operating expenses	—			654,080			29,143			(393		)	682,830
General and administrative	329			323,808			6,288			—			330,425
Depreciation, depletion, amortization and accretion	—			581,435			85,210			—			666,645
Impairment	—			15,038			11,242			—			26,280
Loss on derivative contracts	—			24,702			22,421			—			47,123
Loss on sale of assets	—			291,743			107,343			—			399,086
Total expenses	329			1,890,806			261,647			(393		)	2,152,389
(Loss) income from operations	(329		)	(215,325		)	46,653			—			(169,001		)
Equity earnings from subsidiaries	(195,118		)	3,075			—			192,043			—
Interest (expense) income, net	(271,193		)	959			—			—			(270,234		)
Loss on extinguishment of debt	(82,005		)	—			—			—			(82,005		)
Other income (expense), net	—			16,173			(3,728		)	—			12,445
(Loss) income before income taxes	(548,645		)	(195,118		)	42,925			192,043			(508,795		)
Income tax expense	5,244			—			440			—			5,684
Net (loss) income	(553,889		)	(195,118		)	42,485			192,043			(514,479		)
Less: net income attributable to noncontrolling interest	—			—			—			39,410			39,410
Net (loss) income attributable to SandRidge Energy, Inc.	$	(553,889	)	$	(195,118	)	$	42,485		$	152,633		$	(553,889	)



	Parent(2)			Guarantors(1)(3)			Non-Guarantors			Eliminations(2)(3)			Consolidated(1)
	(In thousands)
Year Ended December 31, 2012 (Revised)
Total revenues	$	—		$	1,638,741		$	404,418		$	(108,517	)	$	1,934,642
Expenses
Direct operating expenses	—			596,028			146,416			(107,095		)	635,349
General and administrative	367			235,102			7,635			(1,422		)	241,682
Depreciation, depletion, amortization and accretion	—			570,786			87,044			—			657,830
Impairment	—			236,671			79,333			—			316,004
Gain on derivative contracts	—			(198,732		)	(42,687		)	—			(241,419		)
Total expenses	367			1,439,855			277,741			(108,517		)	1,609,446
(Loss) income from operations	(367		)	198,886			126,677			—			325,196
Equity earnings from subsidiaries	347,715			20,667			—			(368,382		)	—
Interest (expense) income	(303,510		)	725			(564		)	—			(303,349		)
Bargain purchase gain	—			122,696			—			—			122,696
Loss on extinguishment of debt	(3,075		)	—			—			—			(3,075		)
Other income, net	—			4,741			—			—			4,741
Income before income taxes	40,763			347,715			126,113			(368,382		)	146,209
Income tax (benefit) expense	(100,808		)	—			446			—			(100,362		)
Net income	141,571			347,715			125,667			(368,382		)	246,571
Less: net income attributable to noncontrolling interest	—			—			—			105,000			105,000
Net income attributable to SandRidge Energy, Inc.	$	141,571		$	347,715		$	125,667		$	(473,382	)	$	141,571

____________________


(1)	Guarantor and consolidated total revenues, direct operating expenses and total expenses have been reduced by $796.3 million from amounts previously presented. See Note 2.


(2)	Parent and elimination results have been revised to remove amounts previously recorded as Parent gain on sale of subsidiary totaling $55.6 million. The impact of these revisions was not material to any previously issued financial statements.


(3)	Guarantor and elimination other income, net has been revised to remove $79.1 million of Trust unit sales previously recorded as subsidiary earnings on the Parent income statement. The impact of these revisions was not material to any previously issued financial statements.



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Year Ended December 31, 2011
Total revenues	$	—		$	1,285,854		$	268,427		$	(139,068	)	$	1,415,213
Expenses
Direct operating expenses	—			477,917			158,697			(138,051		)	498,563
General and administrative	416			144,574			4,670			(1,017		)	148,643
Depreciation, depletion, amortization, accretion and impairment	—			351,708			31,361			—			383,069
Gain on derivative contracts	—			(33,749		)	(10,326		)	—			(44,075		)
Total expenses	416			940,450			184,402			(139,068		)	986,200
(Loss) income from operations	(416		)	345,404			84,025			—			429,013
Equity earnings from subsidiaries	376,838			28,751			—			(405,589		)	—
Interest expense	(236,109		)	(197		)	(1,026		)	—			(237,332		)
Loss on extinguishment of debt	(38,232		)	—			—			—			(38,232		)
Other income, net	—			2,880			242			—			3,122
Income before income taxes	102,081			376,838			83,241			(405,589		)	156,571
Income tax (benefit) expense	(5,984		)	—			167			—			(5,817		)
Net income	108,065			376,838			83,074			(405,589		)	162,388
Less: net income attributable to noncontrolling interest	—			—			—			54,323			54,323
Net income attributable to SandRidge Energy, Inc.	$	108,065		$	376,838		$	83,074		$	(459,912	)	$	108,065

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)
Year Ended December 31, 2013
Net cash (used in) provided by operating activities	$	(239,026	)	$	852,026		$	254,723		$	907		$	868,630
Cash flows from investing activities
Capital expenditures for property, plant and equipment	—			(1,496,731		)	—			—			(1,496,731		)
Proceeds from sale of assets	—			2,566,742			17,373			—			2,584,115
Other	—			89,606			3,197			(109,831		)	(17,028		)
Net cash provided by (used in) investing activities	—			1,159,617			20,570			(109,831		)	1,070,356
Cash flows from financing activities
Repayments of borrowings	(1,115,500		)	—			—			—			(1,115,500		)
Premium on debt redemption	(61,997		)	—			—			—			(61,997		)
Distributions to owners	—			—			(299,675		)	93,205			(206,470		)
Dividends paid—preferred	(55,525		)	—			—			—			(55,525		)
Intercompany borrowings (advances), net	2,009,146			(2,018,212		)	9,066			—			—
Other	(31,821		)	6,660			14,845			15,719			5,403
Net cash provided by (used in) financing activities	744,303			(2,011,552		)	(275,764		)	108,924			(1,434,089		)
Net increase (decrease) in cash and cash equivalents	505,277			91			(471		)	—			504,897
Cash and cash equivalents at beginning of year	300,228			922			8,616			—			309,766
Cash and cash equivalents at end of year	$	805,505		$	1,013		$	8,145		$	—		$	814,663



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Year Ended December 31, 2012 (Revised)
Net cash provided by operating activities(1)	$	285,567		$	264,717		$	162,281		$	70,595		$	783,160
Cash flows from investing activities
Capital expenditures for property, plant and equipment	—			(2,112,547		)	(33,825		)	—			(2,146,372		)
Acquisitions, net of cash received	(693,091		)	(147,649		)	(587,086		)	587,086			(840,740		)
Proceeds from sale of assets	129,830			942,675			1,333			(642,671		)	431,167
Other	(61,343		)	278,708			—			(217,365		)	—
Net cash used in investing activities	(624,604		)	(1,038,813		)	(619,578		)	(272,950		)	(2,555,945		)
Cash flows from financing activities
Proceeds from borrowings	1,850,344			—			—			—			1,850,344
Repayments of borrowings	(350,000		)	—			(16,029		)	—			(366,029		)
Proceeds from issuance of royalty trust units	—			—			587,086			—			587,086
Proceeds from the sale of royalty trust units	—			—			—			139,360			139,360
Distributions to unitholders	—			—			(274,980		)	93,253			(181,727		)
Dividends paid—preferred	(55,525		)	—			—			—			(55,525		)
Intercompany (advances) borrowings, net(1)	(945,448		)	809,099			136,349			—			—
Other	(64,121		)	(34,518		)	30,258			(30,258		)	(98,639		)
Net cash provided by financing activities(1)	435,250			774,581			462,684			202,355			1,874,870
Net increase in cash and cash equivalents	96,213			485			5,387			—			102,085
Cash and cash equivalents at beginning of year	204,015			437			3,229			—			207,681
Cash and cash equivalents at end of year	$	300,228		$	922		$	8,616		$	—		$	309,766

(1)

Net cash provided by financing activities has been revised to include intercompany (advances) borrowings, net previously included in net cash provided by operating activities. Amounts represent cash flows between the Parent and the Guarantors and Non-Guarantors resulting from the Parent’s centralized treasury activities. The impact of these revisions was not material to any previously issued financial statements.



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Year Ended December 31, 2011
Net cash provided by (used in) operating activities(1)	$	702,369		$	(221,992	)	$	(9,005	)	$	(12,418	)	$	458,954
Cash flows from investing activities
Capital expenditures for property, plant and equipment	—			(1,726,131		)	(975		)	—			(1,727,106		)
Proceeds from sale of assets	—			1,776,907			26			(917,528		)	859,405
Other	—			(2,074		)	(917,528		)	884,974			(34,628		)
Net cash provided by (used in) investing activities	—			48,702			(918,477		)	(32,554		)	(902,329		)
Cash flows from financing activities
Proceeds from borrowings	2,033,000			—			—			—			2,033,000
Repayments of borrowings	(2,123,000		)	(6,302		)	(991		)	—			(2,130,293		)
Proceeds from issuance royalty trust units	—			—			917,528			—			917,528
Distributions to unitholders	—			—			(96,664		)	36,464			(60,200		)
Dividends paid—preferred	(56,742		)	—			—			—			(56,742		)
Intercompany (advances) borrowings, net(1)	(288,415		)	172,927			115,488			—			—
Other	(64,638		)	6,538			(8,508		)	8,508			(58,100		)
Net cash (used in) provided by financing activities(1)	(499,795		)	173,163			926,853			44,972			645,193
Net increase (decrease) in cash and cash equivalents	202,574			(127		)	(629		)	—			201,818
Cash and cash equivalents at beginning of year	1,441			564			3,858			—			5,863
Cash and cash equivalents at end of year	$	204,015		$	437		$	3,229		$	—		$	207,681

(1)