Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2015

The following distributions are expected to be paid on or before May 29, 2015 to holders of record as of the close of business on May 15, 2015 (in thousands):



Royalty Trust	Total Distribution		Amount Distributed to Third-Party Unitholders
Mississippian Trust I	$	9,261	$	6,770
Permian Trust	27,221		25,200
Mississippian Trust II	10,815		9,005
Total	$	47,297	$	40,975

Open Oil and Natural Gas Commodity Derivative Contracts

At March 31, 2015, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps

Natural Gas Price Swaps

Natural Gas Basis Swaps



	Notional (MMcf)	Weighted Average Fixed Price
April 2015 - December 2015	46,750	$	(0.30	)
January 2016 - December 2016	10,980	$	(0.38	)

Oil Collars - Three-way



	Notional (MBbls)	Sold Put	Purchased Put	Sold Call
April 2015 - December 2015	3,856	$77.20	$90.18	$103.55
January 2016 - December 2016	2,556	$83.14	$90.00	$100.85

Natural Gas Collars

Royalty Trusts

Variable Interest Entity

Royalty Trust Units

Common and subordinated units outstanding as of March 31, 2015 for each Royalty Trust are as follows:



	Mississippian Trust I	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 interests in the Royalty Trusts at March 31, 2015 and December 31, 2014 were as follows:



	March 31, 2015		December 31, 2014
Mississippian Trust I	26.9	%	26.9	%
Permian Trust	25.0	%	25.0	%
Mississippian Trust II	37.6	%	37.6	%

Royalty Trusts Distributions

Quarterly distributions declared and paid by the Royalty Trusts during the three-month periods ended March 31, 2015 and 2014 were as follows (in thousands):



	Three Months Ended March 31,
	2015(1)		2014(2)
Total distributions	$	50,203	$	68,313
Distributions to third-party unitholders	$	43,716	$	53,118

____________________


(1)	Subordination thresholds were not met for the Permian Trust and Mississippian Trust II’s distributions, 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 and Mississippian Trust II’s distributions, resulting in reduced distributions to the Company on its subordinated units for these periods.

Open Oil and Natural Gas Commodity Derivative Contracts

The tables below present the open oil and natural gas commodity derivative contracts at March 31, 2015 underlying the derivatives agreements. 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
April 2015 - December 2015	761	$	4.00	—	$	8.55

Schedule Of Variable Interest Entities Assets Liabilities

The Royalty Trusts’ assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheets at March 31, 2015 and December 31, 2014 consisted of the following (in thousands):



	March 31, 2015			December 31, 2014
Cash and cash equivalents(1)	$	10,016		$	9,387
Accounts receivable, net	14,877			17,660
Derivative contracts	—			6,589
Total current assets	24,893			33,636
Investment in royalty interests(2)	1,325,942			1,325,942
Less: accumulated depletion and impairment(3)	(475,119		)	(284,094		)
	850,823			1,041,848
Total assets	$	875,716		$	1,075,484
Accounts payable and accrued expenses	$	727		$	2,852
Total liabilities	$	727		$	2,852

____________________


(1)	Includes $3.0 million held by the trustee at March 31, 2015 and December 31, 2014 as reserves for future general and administrative expenses.


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


(3)	Includes cumulative full cost ceiling limitation impairment of $222.9 million and $42.3 million at March 31, 2015 and December 31, 2014, respectively.

Pinon Gathering Company LLC

Variable Interest Entity

Schedule Of Amounts Due To/From Variable Interest Entities

Amounts due from and due to PGC as of March 31, 2015 and December 31, 2014 included in the accompanying unaudited condensed consolidated balance sheets are as follows (in thousands):



	March 31, 2015		December 31, 2014
Accounts receivable due from PGC	$	1,280	$	1,141
Accounts payable due to PGC	$	4,120	$	4,163

Notional (MBbls)

Weighted Average
Fixed Price

April 2015 - December 2015

January 2016 - December 2016