Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2015

Condensed Consolidating Financial Statements Disclosure [Abstract]



	September 30, 2015
	Parent			Guarantors		Non-Guarantors		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	781,544		$	895	$	7,703	$	—		$	790,142
Accounts receivable, net	7			191,538		6,867		(207		)	198,205
Intercompany accounts receivable	1,021,591			1,345,932		31,568		(2,399,091		)	—
Derivative contracts	—			103,317		9,918		(9,918		)	103,317
Prepaid expenses	—			11,300		8		—			11,308
Other current assets	—			6,025		—		—			6,025
Total current assets	1,803,142			1,659,007		56,064		(2,409,216		)	1,108,997
Property, plant and equipment, net	—			2,525,988		309,098		—			2,835,086
Investment in subsidiaries	3,474,974			7,613		—		(3,482,587		)	—
Derivative contracts	—			16,249		—		—			16,249
Other assets	131,692			16,346		614		(5,902		)	142,750
Total assets	$	5,409,808		$	4,225,203	$	365,776	$	(5,897,705	)	$	4,103,082
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities
Accounts payable and accrued expenses	$	148,572		$	294,116	$	2,564	$	(207	)	$	445,045
Intercompany accounts payable	1,348,078			1,016,830		34,183		(2,399,091		)	—
Derivative contracts	—			10,287		—		(9,918		)	369
Deferred tax liability	51,126			—		—		—			51,126
Total current liabilities	1,547,776			1,321,233		36,747		(2,409,216		)	496,540
Investment in subsidiaries	985,780			342,035		—		(1,327,815		)	—
Long-term debt	3,942,896			—		—		(5,902		)	3,936,994
Derivative contracts	—			326		—		—			326
Asset retirement obligations	—			58,121		—		—			58,121
Other long-term obligations	77			14,294		—		—			14,371
Total liabilities	6,476,529			1,736,009		36,747		(3,742,933		)	4,506,352
Stockholders’ (Deficit) Equity
SandRidge Energy, Inc. stockholders’ (deficit) equity	(1,066,721		)	2,489,194		329,029		(2,818,223		)	(1,066,721		)
Noncontrolling interest	—			—		—		663,451			663,451
Total stockholders’ (deficit) equity	(1,066,721		)	2,489,194		329,029		(2,154,772		)	(403,270		)
Total liabilities and stockholders’ (deficit) equity	$	5,409,808		$	4,225,203	$	365,776	$	(5,897,705	)	$	4,103,082



	December 31, 2014
	Parent(1)		Guarantors(1)(2)		Non-Guarantors(3)		Eliminations(2)(3)			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	$	151,825	$	526,941	$	4,633	$	(7	)	$	683,392
Intercompany accounts payable	1,365,210		731,103		35,894		(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)	Parent accounts payable and accrued expenses have decreased and intercompany accounts payable have increased by approximately $49.5 million for amounts previously misclassified. Guarantor accounts payable and accrued expenses have increased and intercompany accounts payable have decreased by a corresponding amount.


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


(3)	Amounts previously misclassified as property, plant and equipment and SandRidge Energy, Inc. stockholders’ equity totaling approximately $150.4 million 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 September 30, 2015
Total revenues	$	—		$	159,502		$	20,650		$	—		$	180,152
Expenses
Direct operating expenses	—			84,577			2,915			—			87,492
General and administrative	48			33,253			932			—			34,233
Depreciation, depletion, amortization and accretion	—			72,384			6,628			—			79,012
Impairment	—			838,331			236,257			—			1,074,588
Gain on derivative contracts	—			(36,761		)	(5,450		)	—			(42,211		)
Loss on sale of assets	—			6,771			—			—			6,771
Total expenses	48			998,555			241,282			—			1,239,885
Loss from operations	(48		)	(839,053		)	(220,632		)	—			(1,059,733		)
Equity earnings from subsidiaries	(904,065		)	(64,546		)	—			968,611			—
Interest expense	(76,998		)	(2		)	—			—			(77,000		)
Gain on extinguishment of debt	340,699			—			—			—			340,699
Other (expense) income, net	—			(464		)	38			—			(426		)
Loss before income taxes	(640,412		)	(904,065		)	(220,594		)	968,611			(796,460		)
Income tax expense	—			—			25			—			25
Net loss	(640,412		)	(904,065		)	(220,619		)	968,611			(796,485		)
Less: net loss attributable to noncontrolling interest	—			—			—			(156,073		)	(156,073		)
Net loss attributable to SandRidge Energy, Inc.	$	(640,412	)	$	(904,065	)	$	(220,619	)	$	1,124,684		$	(640,412	)



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Three Months Ended September 30, 2014
Total revenues	$	—		$	340,563		$	53,544		$	—		$	394,107
Expenses
Direct operating expenses	—			113,774			3,672			—			117,446
General and administrative	57			23,764			768			—			24,589
Depreciation, depletion, amortization and accretion	—			113,649			14,453			—			128,102
Impairment	—			54			—			—			54
Gain on derivative contracts	—			(110,355		)	(22,220		)	—			(132,575		)
Total expenses	57			140,886			(3,327		)	—			137,616
(Loss) income from operations	(57		)	199,677			56,871			—			256,491
Equity earnings from subsidiaries	216,026			16,622			—			(232,648		)	—
Interest expense	(59,783		)	—			—			—			(59,783		)
Other expense, net	—			(273		)	—			—			(273		)
Income before income taxes	156,186			216,026			56,871			(232,648		)	196,435
Income tax (benefit) expense	(1,152		)	—			88			—			(1,064		)
Net income	157,338			216,026			56,783			(232,648		)	197,499
Less: net income attributable to noncontrolling interest	—			—			—			40,161			40,161
Net income attributable to SandRidge Energy, Inc.	$	157,338		$	216,026		$	56,783		$	(272,809	)	$	157,338



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Nine Months Ended September 30, 2015
Total revenues	$	—		$	555,613		$	69,462		$	(8	)	$	625,067
Expenses
Direct operating expenses	—			292,526			8,686			(8		)	301,204
General and administrative	165			105,850			2,749			—			108,764
Depreciation, depletion, amortization and accretion	—			280,653			26,810			—			307,463
Impairment	—			2,906,400			741,445			—			3,647,845
Gain on derivative contracts	—			(51,802		)	(7,232		)	—			(59,034		)
Loss (gain) on sale of assets	—			2,101			(4		)	—			2,097
Total expenses	165			3,535,728			772,454			(8		)	4,308,339
Loss from operations	(165		)	(2,980,115		)	(702,992		)	—			(3,683,272		)
Equity earnings from subsidiaries	(3,188,788		)	(209,713		)	—			3,398,501			—
Interest expense	(213,527		)	(42		)	—			—			(213,569		)
Gain on extinguishment of debt	358,633			—			—			—			358,633
Other income, net	—			1,082			126			—			1,208
Loss before income taxes	(3,043,847		)	(3,188,788		)	(702,866		)	3,398,501			(3,537,000		)
Income tax expense	—			—			90			—			90
Net loss	(3,043,847		)	(3,188,788		)	(702,956		)	3,398,501			(3,537,090		)
Less: net loss attributable to noncontrolling interest	—			—			—			(493,243		)	(493,243		)
Net loss attributable to SandRidge Energy, Inc.	$	(3,043,847	)	$	(3,188,788	)	$	(702,956	)	$	3,891,744		$	(3,043,847	)



	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Nine Months Ended September 30, 2014
Total revenues	$	—		$	1,034,133		$	177,843	$	(99	)	$	1,211,877
Expenses
Direct operating expenses	—			345,809			13,413		(99		)	359,123
General and administrative	277			91,190			3,575		—			95,042
Depreciation, depletion, amortization and accretion	—			333,463			44,835		—			378,298
Impairment	—			125,653			42,313		—			167,966
(Gain) loss on derivative contracts	—			(8,744		)	3,952		—			(4,792		)
Total expenses	277			887,371			108,088		(99		)	995,637
(Loss) income from operations	(277		)	146,762			69,755		—			216,240
Equity earnings from subsidiaries	169,766			19,707			—		(189,473		)	—
Interest (expense) income	(183,827		)	138			—		—			(183,689		)
Other income, net	—			3,159			—		—			3,159
(Loss) income before income taxes	(14,338		)	169,766			69,755		(189,473		)	35,710
Income tax (benefit) expense	(2,446		)	—			315		—			(2,131		)
Net (loss) income	(11,892		)	169,766			69,440		(189,473		)	37,841
Less: net income attributable to noncontrolling interest	—			—			—		49,733			49,733
Net (loss) income attributable to SandRidge Energy, Inc.	$	(11,892	)	$	169,766		$	69,440	$	(239,206	)	$	(11,892	)

Condensed Consolidating Statements of Cash Flows



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Nine Months Ended September 30, 2015
Net cash (used in) provided by operating activities	$	(211,762	)	$	441,661		$	90,579		$	40,408		$	360,886
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(761,905		)	—			—			(761,905		)
Other	—			46,841			6			(14,691		)	32,156
Net cash (used in) provided by investing activities	—			(715,064		)	6			(14,691		)	(729,749		)
Cash flows from financing activities
Proceeds from borrowings	2,190,000			—			—			—			2,190,000
Repayments of borrowings	(1,034,466		)	—			—			—			(1,034,466		)
Distributions to unitholders	—			—			(131,941		)	16,640			(115,301		)
Intercompany (advances) borrowings, net	(270,215		)	272,900			(2,685		)	—			—
Other	(62,481		)	—			42,357			(42,357		)	(62,481		)
Net cash provided by (used in) financing activities	822,838			272,900			(92,269		)	(25,717		)	977,752
Net increase (decrease) in cash and cash equivalents	611,076			(503		)	(1,684		)	—			608,889
Cash and cash equivalents at beginning of year	170,468			1,398			9,387			—			181,253
Cash and cash equivalents at end of period	$	781,544		$	895		$	7,703		$	—		$	790,142



	Parent(1)			Guarantors(1)(2)			Non-Guarantors			Eliminations(2)			Consolidated
	(In thousands)
Nine Months Ended September 30, 2014
Net cash (used in) provided by operating activities	$	(209,086	)	$	432,460		$	178,603		$	(6,293	)	$	395,684
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(1,071,465		)	—			—			(1,071,465		)
Proceeds from sale of assets	—			711,547			2,747			—			714,294
Other	—			4,166			1,061			(22,147		)	(16,920		)
Net cash (used in) provided by investing activities	—			(355,752		)	3,808			(22,147		)	(374,091		)
Cash flows from financing activities
Distributions to unitholders	—			—			(184,176		)	33,736			(150,440		)
Intercompany borrowings (advances), net	55,110			(55,224		)	114			—			—
Other	(70,832		)	(20,701		)	1,259			(5,296		)	(95,570		)
Net cash used in financing activities	(15,722		)	(75,925		)	(182,803		)	28,440			(246,010		)
Net (decrease) increase in cash and cash equivalents	(224,808		)	783			(392		)	—			(224,417		)
Cash and cash equivalents at beginning of year	805,505			1,013			8,145			—			814,663
Cash and cash equivalents at end of period	$	580,697		$	1,796		$	7,753		$	—		$	590,246

____________________

(1)

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

(2)

Other investing activities for the Guarantor has increased to correctly exclude $150.4 million in noncontrolling interest distributions, with a corresponding decrease for Eliminations for this same line item. In addition, other financing activities for the Guarantor, has decreased to correctly exclude $150.4 million of noncontrolling interest distributions, with a corresponding increase for Eliminations for the same line item. The corrections did not result in any changes to consolidated net cash (used in) provided by investing activities or net cash used in financing activities.