XML 98 R34.htm IDEA: XBRL DOCUMENT v2.4.1.9
Derivatives (Tables)
 3 Months Ended
Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value of Derivatives
The following table presents the fair value of the Company’s derivative contracts as of March 31, 2014 and December 31, 2013 on a gross basis without regard to same-counterparty netting (in thousands):
Type of Contract
 
Balance Sheet Classification
 
March 31,
2014
 
December 31,
2013
Derivative assets
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts-current
 
$
9,952

 
$
15,887

Natural gas price swaps
 
Derivative contracts-current
 
1,090

 
1,598

Oil collars - three way
 
Derivative contracts-current
 
1,605

 
706

Natural gas collars
 
Derivative contracts-current
 
108

 
177

Oil price swaps
 
Derivative contracts-noncurrent
 
8,534

 
19,376

Natural gas price swaps
 
Derivative contracts-noncurrent
 
791

 
—

     Oil collars - three way
 
Derivative contracts-noncurrent
 
8,466

 
12,189

Natural gas collars
 
Derivative contracts-noncurrent
 
257

 
341

Derivative liabilities
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts-current
 
(3,181
)
 
(38,396
)
Natural gas price swaps
 
Derivative contracts-current
 
(7,634
)
 
(1,460
)
Oil collars - three way
 
Derivative contracts-current
 
(7,113
)
 
—

Oil price swaps
 
Derivative contracts-noncurrent
 
—

 
(38,344
)
Total net derivative contracts
 
$
12,875

 
$
(27,926
)
Offsetting Assets and Liabilities
The following tables summarize (i) the Company's derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative liability positions, the applicable portion of shared collateral under the senior credit facility (for SandRidge's derivative contracts) and under liens granted on royalty interests (for the Permian Trust’s and the Mississippian Trust II’s novated derivative contracts) (in thousands):

March 31, 2014
 
 
Gross Amounts
 
Gross Amounts Offset
 
Amounts Net of Offset
 
Financial Collateral
 
Net Amount
Assets
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
12,755

 
$
(3,753
)
 
$
9,002

 
$
—

 
$
9,002

Derivative contracts - noncurrent
 
18,048

 
—

 
18,048

 
—

 
18,048

Total
 
$
30,803

 
$
(3,753
)
 
$
27,050

 
$
—

 
$
27,050

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
17,928

 
$
(3,753
)
 
$
14,175

 
$
(14,175
)
 
$
—

Total
 
$
17,928

 
$
(3,753
)
 
$
14,175

 
$
(14,175
)
 
$
—


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
)
 
$
—
Open Oil and Natural Gas Commodity Derivative Contracts
At March 31, 2014, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps 
 
Notional (MBbls)
 
Weighted Average
Fixed Price
April 2014 - December 2014
2,936

 
$
99.45

January 2015 - December 2015
5,314

 
$
92.55


Natural Gas Price Swaps 
 
Notional (MMcf)
 
Weighted Average
Fixed Price
April 2014 - December 2014
38,490

 
$
4.27

January 2015 - December 2015
15,400

 
$
4.50


Oil Collars - Three-way
 
Notional (MBbls)
 
Sold Put
Purchased Put
Sold Call
April 2014 - December 2014
6,066

 
$70.00
$90.21
$100.00
January 2015 - December 2015
2,920

 
$73.13
$90.82
$103.13

Natural Gas Collars
 
Notional (MMcf)
 
Collar Range
April 2014 - December 2014
706

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

 
$4.00
—
$8.55