Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2014

Condensed Consolidating Financial Statements 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 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	)

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

Condensed Consolidating Balance Sheets



	March 31, 2014 (Restated)
	Parent(1)		Guarantors(2)(3)		Non-Guarantors		Eliminations(1)(2)			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	—		4,130,353		1,121,873		—			5,252,226
Investment in subsidiaries	5,960,279		21,969		—		(5,982,248		)	—
Derivative contracts	—		18,048		4,471		(4,471		)	18,048
Other assets	66,550		21,367		23		(5,902		)	82,038
Total assets	$	7,255,306	$	5,862,720	$	1,226,837	$	(7,466,606	)	$	6,878,257
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	157,676	$	429,223	$	3,186	$	—		$	590,085
Intercompany accounts payable	1,355,653		72,815		38,831		(1,467,299		)	—
Derivative contracts	—		20,861		—		(6,686		)	14,175
Other current liabilities	6,987		9,480		—		—			16,467
Total current liabilities	1,520,316		532,379		42,017		(1,473,985		)	620,727
Investment in subsidiaries	851,437		145,150		—		(996,587		)	—
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	5,574,089		753,878		42,017		(2,480,945		)	3,889,039
Equity
SandRidge Energy, Inc. stockholders’ equity	1,681,217		5,108,842		1,184,820		(6,293,662		)	1,681,217
Noncontrolling interest	—		—		—		1,308,001			1,308,001
Total equity	1,681,217		5,108,842		1,184,820		(4,985,661		)	2,989,218
Total liabilities and equity	$	7,255,306	$	5,862,720	$	1,226,837	$	(7,466,606	)	$	6,878,257

____________________

(1)

Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $851.4 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 $145.2 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.


(3)	Guarantor and Consolidated accounts payable and accrued expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.



	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 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.

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



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Three Months Ended March 31, 2013 (Restated)
Total revenues	$	—		$	440,318		$	77,536		$	(6,164	)	$	511,690
Expenses
Direct operating expenses(1)	—			171,507			12,241			(5,732		)	178,016
General and administrative	87			76,819			2,970			(432		)	79,444
Depreciation, depletion, amortization and accretion	—			159,890			22,751			—			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(1)	87			730,072			155,177			(6,164		)	879,172
Loss from operations(1)	(87		)	(289,754		)	(77,641		)	—			(367,482		)
Equity earnings from subsidiaries	(314,780		)	(26,641		)	—			341,421			—
Interest (expense) income	(86,103		)	193			—			—			(85,910		)
Loss on extinguishment of debt	(82,005		)	—			—			—			(82,005		)
Other income (expense), net	—			1,422			(811		)	—			611
Loss before income taxes(1)	(482,975		)	(314,780		)	(78,452		)	341,421			(534,786		)
Income tax expense	4,321			—			108			—			4,429
Net loss(1)	(487,296		)	(314,780		)	(78,560		)	341,421			(539,215		)
Less: net loss attributable to noncontrolling interest	—			—			—			(51,919		)	(51,919		)
Net loss attributable to SandRidge Energy, Inc.(1)	$	(487,296	)	$	(314,780	)	$	(78,560	)	$	393,340		$	(487,296	)

____________________


(1)	Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂delivery shortfall penalty. See Note 2.

Condensed Consolidating Statements of Operations



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Three Months Ended March 31, 2014 (Restated)
Total revenues	$	—		$	379,050		$	64,093		$	(87	)	$	443,056
Expenses
Direct operating expenses(1)	—			138,402			4,810			(87		)	143,125
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(1)	148			452,494			72,831			(87		)	525,386
Loss from operations(1)	(148		)	(73,444		)	(8,738		)	—			(82,330		)
Equity earnings from subsidiaries	(73,985		)	(2,777		)	—			76,762			—
Interest (expense) income	(62,186		)	143			—			—			(62,043		)
Other income, net	—			2,093			1			—			2,094
Loss before income taxes(1)	(136,319		)	(73,985		)	(8,737		)	76,762			(142,279		)
Income tax expense	17			—			110			—			127
Net loss(1)	(136,336		)	(73,985		)	(8,847		)	76,762			(142,406		)
Less: net loss attributable to noncontrolling interest	—			—			—			(6,070		)	(6,070		)
Net loss attributable to SandRidge Energy, Inc.(1)	$	(136,336	)	$	(73,985	)	$	(8,847	)	$	82,832		$	(136,336	)

____________________


(1)	Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂delivery shortfall penalty. See Note 2.

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)
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
Net cash (used in) provided by operating activities(1)	$	(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(1)	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)	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

____________________

(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.