Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2014

Variable Interest Entity [Line Items]

The following distributions will be paid on February 27, 2015 to holders of record as of the close of business on February 13, 2015 (in thousands):



Royalty Trust	Total Distribution		Amount to be Distributed to Third-Party Unitholders
Mississippian Trust I	$	8,538	$	6,242
Permian Trust	27,681		25,830
Mississippian Trust II	13,985		11,644
Total	$	50,204	$	43,716

Open Oil and Natural Gas Commodity Derivative Contracts

At December 31, 2014, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps

Natural Gas Price Swaps

Natural Gas Basis Swaps

Oil Collars - Three-way



	Notional (MBbls)	Sold Put		Purchased Put		Sold Call
January 2015 - December 2015	4,576	$	76.56	$	90.28	$	103.48
January 2016 - December 2016	2,556	$	83.14	$	90.00	$	100.85

Natural Gas Collars

Royalty Trusts

Variable Interest Entity [Line Items]

Schedule of Royalty Trust Units By Class

Common and subordinated units outstanding as of December 31, 2014 for each Royalty Trust are as follows:



	Mississippian Trust I (1)	Permian Trust	Mississippian Trust II
Total outstanding common units(1)	28,000,000	39,375,000	37,293,750
Total outstanding subordinated units(2)	—	13,125,000	12,431,250

____________________


(1)	The Mississippian Trust I’s previously outstanding subordinated units, all of which were held by SandRidge, converted to common units on July 1, 2014.


(2)	All outstanding subordinated units are owned by SandRidge.

Royalty Trusts Ownership Interest

The Company’s beneficial interest in the Royalty Trusts at December 31, 2014 and 2013 were as follows:



	December 31,
	2014		2013
Mississippian Trust I	26.9	%	26.9	%
Permian Trust	25.0	%	28.5	%
Mississippian Trust II	37.6	%	37.6	%

Royalty Trusts Distributions

Quarterly distributions declared and paid by the Royalty Trusts during the years ended December 31, 2014, 2013 and 2012 as follows (in thousands):



	Year Ended December 31,
	2014(1)		2013(2)		2012(3)
Total distributions	$	234,326	$	299,674	$	274,979
Distributions to third-party unitholders	$	193,807	$	206,470	$	181,727

____________________


(1)	Subordination thresholds were not met for the Mississippian Trust I’s first or second quarter 2014 distributions, the Permian Trust’s second, third or fourth quarter 2014 distributions or for the Mississippian Trust II’s distributions for the year ended December 31, 2014, resulting in reduced distributions to the Company on its subordinated units for these periods.


(2)	Subordination thresholds were not met for the Mississippian Trust I’s second, third or fourth quarter 2013 distributions, the Permian Trust’s second quarter 2013 distribution or for the Mississippian Trust II’s fourth quarter 2013 distribution, resulting in reduced distributions to the Company on its subordinated units for this period.


(3)	The Company received incentive distributions from the Mississippian Trust I during the first and second quarters of 2012.

Open Oil and Natural Gas Commodity Derivative Contracts

The combined volume in the tables below reflects the total volume of the Royalty Trusts’ open oil and natural gas commodity derivative contracts.

Oil Price Swaps Underlying the Royalty Trust Derivatives Agreements

Natural Gas Collars Underlying the Royalty Trust Derivatives Agreements



	Notional (MMcf)	Collar Range
January 2015 — December 2015	1,010	$	4.00	—	$	8.55

Oil Price Swaps Underlying the Derivatives Agreements and Novated to the Royalty Trusts

Assets and Liabilities Included in Consolidated Balance Sheets

The Royalty Trusts’ assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying consolidated balance sheets at December 31, 2014 and 2013 consisted of the following (in thousands):



	December 31,
	2014			2013
Cash and cash equivalents(1)	$	9,387		$	7,912
Accounts receivable	17,660			22,540
Derivative contracts	6,589			4,983
Total current assets	33,636			35,435
Investment in royalty interests(2)	1,325,942			1,325,942
Less: accumulated depletion	(284,094		)	(186,095		)
	1,041,848			1,139,847
Derivative contracts	—			1,476
Total assets	$	1,075,484		$	1,176,758
Accounts payable and accrued expenses	$	2,852		$	3,393
Total liabilities	$	2,852		$	3,393

____________________


(1)	Includes $3.0 million held by the trustee at December 31, 2014 and 2013 as reserves for future general and administrative expenses.


(2)	Investment in royalty interests is included in oil and natural gas properties in the accompanying consolidated balance sheets.

Grey Ranch Plant, L.P

Variable Interest Entity [Line Items]

Assets and Liabilities Included in Consolidated Balance Sheets

GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying consolidated balance sheet at December 31, 2013 consisted of the following (in thousands):



	December 31, 2013
Cash and cash equivalents	$	132
Accounts receivable, net	16
Prepaid expenses	32
Other current assets	109
Total current assets	289
Other property, plant and equipment, net	1,163
Total assets	$	1,452
Accounts payable and accrued expenses	$	129
Total liabilities	$	129

Pinon Gathering Company LLC

Variable Interest Entity [Line Items]

Amounts Due To/From PGC

Amounts due from and due to PGC as of December 31, 2014 and 2013 included in the accompanying consolidated balance sheets are as follows (in thousands):



	December 31,
	2014		2013
Accounts receivable due from PGC	$	1,141	$	741
Accounts payable due to PGC	$	4,163	$	3,634

Notional (MBbls)

Weighted Average
Fixed Price

January 2015 - December 2015

January 2016 - December 2016