Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2015

Condensed Consolidating Financial Statements Disclosure [Abstract]



	June 30, 2015
	Parent			Guarantors		Non-Guarantors		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	970,115		$	4,440	$	9,062	$	—		$	983,617
Accounts receivable, net	7			228,493		9,227		(7		)	237,720
Intercompany accounts receivable	1,026,442			1,341,801		35,566		(2,403,809		)	—
Derivative contracts	—			120,575		14,241		(14,241		)	120,575
Prepaid expenses	—			9,926		12		—			9,938
Other current assets	—			25,985		—		—			25,985
Total current assets	1,996,564			1,731,220		68,108		(2,418,057		)	1,377,835
Property, plant and equipment, net	—			3,334,417		551,984		—			3,886,401
Investment in subsidiaries	4,307,423			7,878		—		(4,315,301		)	—
Derivative contracts	—			23,470		—		—			23,470
Other assets	135,828			16,785		631		(5,902		)	147,342
Total assets	$	6,439,815		$	5,113,770	$	620,723	$	(6,739,260	)	$	5,435,048
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	177,231		$	316,001	$	1,450	$	(7	)	$	494,675
Intercompany accounts payable	1,328,602			1,040,026		35,181		(2,403,809		)	—
Derivative contracts	—			14,343		—		(14,241		)	102
Deferred tax liability	52,763			—		—		—			52,763
Other current liabilities	—			3,791		—		—			3,791
Total current liabilities	1,558,596			1,374,161		36,631		(2,418,057		)	551,331
Investment in subsidiaries	914,164			273,921		—		(1,188,085		)	—
Long-term debt	4,401,541			—		—		(5,902		)	4,395,639
Derivative contracts	—			26		—		—			26
Asset retirement obligations	—			57,084		—		—			57,084
Other long-term obligations	77			15,319		—		—			15,396
Total liabilities	6,874,378			1,720,511		36,631		(3,612,044		)	5,019,476
Equity
SandRidge Energy, Inc. stockholders’ equity	(434,563		)	3,393,259		584,092		(3,977,351		)	(434,563		)
Noncontrolling interest	—			—		—		850,135			850,135
Total equity	(434,563		)	3,393,259		584,092		(3,127,216		)	415,572
Total liabilities and equity	$	6,439,815		$	5,113,770	$	620,723	$	(6,739,260	)	$	5,435,048



	December 31, 2014
	Parent		Guarantors(1)		Non-Guarantors(2)		Eliminations(1)(2)			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	170,468	$	1,398	$	9,387	$	—		$	181,253
Accounts receivable, net	7		299,764		30,313		(7		)	330,077
Intercompany accounts receivable	751,376		1,339,152		41,679		(2,132,207		)	—
Derivative contracts	—		284,825		45,043		(38,454		)	291,414
Prepaid expenses	—		7,971		10		—			7,981
Other current assets	—		21,193		—		—			21,193
Total current assets	921,851		1,954,303		126,432		(2,170,668		)	831,918
Property, plant and equipment, net	—		5,137,702		1,077,355		—			6,215,057
Investment in subsidiaries	6,606,198		25,944		—		(6,632,142		)	—
Derivative contracts	—		47,003		—		—			47,003
Other assets	152,286		18,197		666		(5,902		)	165,247
Total assets	$	7,680,335	$	7,183,149	$	1,204,453	$	(8,808,712	)	$	7,259,225
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	201,368	$	477,399	$	4,632	$	(7	)	$	683,392
Intercompany accounts payable	1,315,667		780,645		35,895		(2,132,207		)	—
Derivative contracts	—		38,454		—		(38,454		)	—
Deferred tax liability	95,843		—		—		—			95,843
Other current liabilities	—		5,216		—		—			5,216
Total current liabilities	1,612,878		1,301,714		40,527		(2,170,668		)	784,451
Investment in subsidiaries	928,217		134,013		—		(1,062,230		)	—
Long-term debt	3,201,338		—		—		(5,902		)	3,195,436
Asset retirement obligations	—		54,402		—		—			54,402
Other long-term obligations	77		15,039		—		—			15,116
Total liabilities	5,742,510		1,505,168		40,527		(3,238,800		)	4,049,405
Equity
SandRidge Energy, Inc. stockholders’ equity	1,937,825		5,677,981		1,163,926		(6,841,907		)	1,937,825
Noncontrolling interest	—		—		—		1,271,995			1,271,995
Total equity	1,937,825		5,677,981		1,163,926		(5,569,912		)	3,209,820
Total liabilities and equity	$	7,680,335	$	7,183,149	$	1,204,453	$	(8,808,712	)	$	7,259,225

____________________


(1)	Amounts presented as property, plant and equipment have been revised to include approximately $150.4 million previously misclassified as investment in subsidiary.


(2)	Amounts previously misclassified as property, plant and equipment and SandRidge Energy, Inc. stockholders’ equity have been reduced by approximately $150.4 million and are now presented as Guarantor property, plant and equipment.

Condensed Consolidating Statements of Operations



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Three Months Ended June 30, 2015
Total revenues	$	—		$	203,591		$	26,016		$	—		$	229,607
Expenses
Direct operating expenses	—			95,832			2,934			—			98,766
General and administrative	61			37,379			942			—			38,382
Depreciation, depletion, amortization and accretion	—			98,416			9,501			—			107,917
Impairment	—			1,164,834			324,557			—			1,489,391
Loss on derivative contracts	—			29,067			3,937			—			33,004
Gain on sale of assets	—			(2,770		)	—			—			(2,770		)
Total expenses	61			1,422,758			341,871			—			1,764,690
(Loss) from operations	(61		)	(1,219,167		)	(315,855		)	—			(1,535,083		)
Equity earnings from subsidiaries	(1,312,652		)	(95,545		)	—			1,408,197			—
Interest expense	(73,703		)	(24		)	—			—			(73,727		)
Gain on extinguishment of debt	17,934			—			—			—			17,934
Other income, net	—			2,084			86			—			2,170
Loss before income taxes	(1,368,482		)	(1,312,652		)	(315,769		)	1,408,197			(1,588,706		)
Income tax expense	—			—			25			—			25
Net loss	(1,368,482		)	(1,312,652		)	(315,794		)	1,408,197			(1,588,731		)
Less: net loss attributable to noncontrolling interest	—			—			—			(220,249		)	(220,249		)
Net loss attributable to SandRidge Energy, Inc.	$	(1,368,482	)	$	(1,312,652	)	$	(315,794	)	$	1,628,446		$	(1,368,482	)



	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Three Months Ended June 30, 2014
Total revenues	$	—		$	314,521		$	60,205	$	(12	)	$	374,714
Expenses
Direct operating expenses	—			93,597			4,931		(12		)	98,516
General and administrative	71			30,481			1,363		—			31,915
Depreciation, depletion, amortization and accretion	—			99,237			14,506		—			113,743
Impairment	—			3,133			—		—			3,133
Loss on derivative contracts	—			67,509			17,783		—			85,292
Loss on sale of assets	—			36			—		—			36
Total expenses	71			293,993			38,583		(12		)	332,635
(Loss) income from operations	(71		)	20,528			21,622		—			42,079
Equity earnings from subsidiaries	27,725			5,863			—		(33,588		)	—
Interest expense	(61,859		)	(4		)	—		—			(61,863		)
Other income, net	—			1,338			—		—			1,338
(Loss) income before income taxes	(34,205		)	27,725			21,622		(33,588		)	(18,446		)
Income tax (benefit) expense	(1,311		)	—			117		—			(1,194		)
Net (loss) income	(32,894		)	27,725			21,505		(33,588		)	(17,252		)
Less: net income attributable to noncontrolling interest	—			—			—		15,642			15,642
Net (loss) income attributable to SandRidge Energy, Inc.	$	(32,894	)	$	27,725		$	21,505	$	(49,230	)	$	(32,894	)



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2015
Total revenues	$	—		$	396,112		$	48,811		$	(8	)	$	444,915
Expenses
Direct operating expenses	—			207,950			5,770			(8		)	213,712
General and administrative	117			72,598			1,816			—			74,531
Depreciation, depletion, amortization and accretion	—			208,269			20,182			—			228,451
Impairment	—			2,068,069			505,188			—			2,573,257
Gain on derivative contracts	—			(15,042		)	(1,781		)	—			(16,823		)
Gain on sale of assets	—			(4,670		)	(4		)	—			(4,674		)
Total expenses	117			2,537,174			531,171			(8		)	3,068,454
Loss from operations	(117		)	(2,141,062		)	(482,360		)	—			(2,623,539		)
Equity earnings from subsidiaries	(2,284,723		)	(145,166		)	—			2,429,889			—
Interest expense	(136,529		)	(40		)	—			—			(136,569		)
Gain on extinguishment of debt	17,934			—			—			—			17,934
Other income, net	—			1,545			89			—			1,634
Loss before income taxes	(2,403,435		)	(2,284,723		)	(482,271		)	2,429,889			(2,740,540		)
Income tax expense	—			—			65			—			65
Net loss	(2,403,435		)	(2,284,723		)	(482,336		)	2,429,889			(2,740,605		)
Less: net loss attributable to noncontrolling interest	—			—			—			(337,170		)	(337,170		)
Net loss attributable to SandRidge Energy, Inc.	$	(2,403,435	)	$	(2,284,723	)	$	(482,336	)	$	2,767,059		$	(2,403,435	)



	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2014
Total revenues	$	—		$	693,570		$	124,299	$	(99	)	$	817,770
Expenses
Direct operating expenses	—			232,018			9,741		(99		)	241,660
General and administrative	220			67,426			2,807		—			70,453
Depreciation, depletion, amortization and accretion	—			219,814			30,382		—			250,196
Impairment	—			125,599			42,313		—			167,912
Loss on derivative contracts	—			101,611			26,172		—			127,783
Loss on sale of assets	—			17			—		—			17
Total expenses	220			746,485			111,415		(99		)	858,021
(Loss) income from operations	(220		)	(52,915		)	12,884		—			(40,251		)
Equity earnings from subsidiaries	(46,259		)	3,086			—		43,173			—
Interest (expense) income	(124,045		)	139			—		—			(123,906		)
Other income, net	—			3,431			1		—			3,432
(Loss) income before income taxes	(170,524		)	(46,259		)	12,885		43,173			(160,725		)
Income tax (benefit) expense	(1,294		)	—			227		—			(1,067		)
Net (loss) income	(169,230		)	(46,259		)	12,658		43,173			(159,658		)
Less: net income attributable to noncontrolling interest	—			—			—		9,572			9,572
Net (loss) income attributable to SandRidge Energy, Inc.	$	(169,230	)	$	(46,259	)	$	12,658	$	33,601		$	(169,230	)

Condensed Consolidating Statements of Cash Flows



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2015
Net cash (used in) provided by operating activities	$	(122,181	)	$	344,778		$	65,902		$	30,495		$	318,994
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(636,822		)	—			—			(636,822		)
Other	—			(65,989		)	5			73,971			7,987
Net cash (used in) provided by investing activities	—			(702,811		)	5			73,971			(628,835		)
Cash flows from financing activities
Proceeds from borrowings	2,190,000			—			—			—			2,190,000
Repayments of borrowings	(940,000		)	—			—			—			(940,000		)
Distributions to unitholders	—			—			(97,498		)	12,808			(84,690		)
Intercompany (advances) borrowings, net	(275,066		)	276,384			(1,318		)	—			—
Other	(53,106		)	84,691			32,584			(117,274		)	(53,105		)
Net cash provided by (used in) financing activities	921,828			361,075			(66,232		)	(104,466		)	1,112,205
Net increase (decrease) in cash and cash equivalents	799,647			3,042			(325		)	—			802,364
Cash and cash equivalents at beginning of year	170,468			1,398			9,387			—			181,253
Cash and cash equivalents at end of period	$	970,115		$	4,440		$	9,062		$	—		$	983,617



	Parent(1)			Guarantors(1)			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2014
Net cash (used in) provided by operating activities	$	(119,006	)	$	228,860		$	126,424		$	(5,486	)	$	230,792
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(656,699		)	—			—			(656,699		)
Proceeds from sale of assets	—			707,799			—			—			707,799
Other	—			(104,286		)	1,061			86,672			(16,553		)
Net cash (used in) provided by investing activities	—			(53,186		)	1,061			86,672			34,547
Cash flows from financing activities
Distributions to unitholders	—			—			(127,985		)	24,843			(103,142		)
Intercompany borrowings (advances), net	257,498			(257,879		)	381			—			—
Other	(33,364		)	82,441			(1,150		)	(106,029		)	(58,102		)
Net cash provided by (used in) financing activities	224,134			(175,438		)	(128,754		)	(81,186		)	(161,244		)
Net increase (decrease) in cash and cash equivalents	105,128			236			(1,269		)	—			104,095
Cash and cash equivalents at beginning of year	805,505			1,013			8,145			—			814,663
Cash and cash equivalents at end of period	$	910,633		$	1,249		$	6,876		$	—		$	918,758

____________________

(1)

Net cash (used in) provided by operating activities for the Parent has been corrected to exclude $382.7 million in intercompany transactions, and a corresponding increase for Guarantors for this same line item. In addition, Intercompany borrowings (advances), net has been corrected for the Parent to include approximately $382.7 million of intercompany transactions, and a corresponding decrease for Guarantors for the same line item. The changes did not result in any changes to consolidated net cash provided by operating activities or net cash used in financing activities.