Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2015

Condensed Consolidating Financial Statements Disclosure [Abstract]

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

Condensed Consolidating Balance Sheets



	December 31, 2015
	Parent			Guarantors		Non-Guarantors		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	426,917		$	847	$	7,824	$	—		$	435,588
Accounts receivable, net	—			122,606		4,781		—			127,387
Intercompany accounts receivable	1,226,994			1,305,573		30,683		(2,563,250		)	—
Derivative contracts	—			84,349		—		—			84,349
Prepaid expenses	—			6,826		7		—			6,833
Other current assets	—			19,931		—		—			19,931
Total current assets	1,653,911			1,540,132		43,295		(2,563,250		)	674,088
Property, plant and equipment, net	—			2,124,532		110,170		—			2,234,702
Investment in subsidiaries	2,749,514			8,531		—		(2,758,045		)	—
Other assets	72,259			16,008		—		(5,902		)	82,365
Total assets	$	4,475,684		$	3,689,203	$	153,465	$	(5,327,197	)	$	2,991,155
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities
Accounts payable and accrued expenses	$	160,122		$	265,767	$	2,528	$	—		$	428,417
Intercompany accounts payable	1,337,688			1,192,569		32,993		(2,563,250		)	—
Derivative contracts	—			573		—		—			573
Asset retirement obligations	—			8,399		—		—			8,399
Total current liabilities	1,497,810			1,467,308		35,521		(2,563,250		)	437,389
Investment in subsidiaries	1,038,303			400,771		—		(1,439,074		)	—
Long-term debt	3,637,408			—		—		(5,902		)	3,631,506
Asset retirement obligations	—			95,179		—		—			95,179
Other long-term obligations	80			14,734		—		—			14,814
Total liabilities	6,173,601			1,977,992		35,521		(4,008,226		)	4,178,888
Stockholders’ (Deficit) Equity
SandRidge Energy, Inc. stockholders’ (deficit) equity	(1,697,917		)	1,711,211		117,944		(1,829,155		)	(1,697,917		)
Noncontrolling interest	—			—		—		510,184			510,184
Total stockholders’ (deficit) equity	(1,697,917		)	1,711,211		117,944		(1,318,971		)	(1,187,733		)
Total liabilities and stockholders’ (deficit) equity	$	4,475,684		$	3,689,203	$	153,465	$	(5,327,197	)	$	2,991,155



	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 of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors

Condensed Consolidating Statements of Operations



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Year Ended December 31, 2015
Total revenues	$	—		$	682,778		$	85,939		$	(8	)	$	768,709
Expenses
Direct operating expenses	—			364,483			10,879			(8		)	375,354
General and administrative	213			145,796			4,157			—			150,166
Depreciation, depletion, amortization and accretion	—			339,647			32,125			—			371,772
Impairment	—			3,599,810			934,879			—			4,534,689
Gain on derivative contracts	—			(65,049		)	(8,012		)	—			(73,061		)
Loss on settlement of contract	—			50,976			—			—			50,976
Loss (gain) on sale of assets	—			2,217			(726		)	—			1,491
Total expenses	213			4,437,880			973,302			(8		)	5,411,387
Loss from operations	(213		)	(3,755,102		)	(887,363		)	—			(4,642,678		)
Equity earnings from subsidiaries	(4,017,082		)	(263,847		)	—			4,280,929			—
Interest expense, net	(321,378		)	(43		)	—			—			(321,421		)
Gain on extinguishment of debt	641,131			—			—			—			641,131
Other income, net	—			1,910			130			—			2,040
Loss before income taxes	(3,697,542		)	(4,017,082		)	(887,233		)	4,280,929			(4,320,928		)
Income tax expense	3			—			120			—			123
Net loss	(3,697,545		)	(4,017,082		)	(887,353		)	4,280,929			(4,321,051		)
Less: net loss attributable to noncontrolling interest	—			—			—			(623,506		)	(623,506		)
Net loss attributable to SandRidge Energy, Inc.	$	(3,697,545	)	$	(4,017,082	)	$	(887,353	)	$	4,904,435		$	(3,697,545	)



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Year Ended December 31, 2014
Total revenues	$	—		$	1,341,531		$	217,367		$	(140	)	$	1,558,758
Expenses
Direct operating expenses	—			467,175			16,854			(140		)	483,889
General and administrative	331			118,249			4,285			—			122,865
Depreciation, depletion, amortization and accretion	—			446,149			56,874			—			503,023
Impairment	—			150,125			42,643			—			192,768
Gain on derivative contracts	—			(292,733		)	(41,278		)	—			(334,011		)
Total expenses	331			888,965			79,378			(140		)	968,534
(Loss) income from operations	(331		)	452,566			137,989			—			590,224
Equity earnings from subsidiaries	495,154			38,967			—			(534,121		)	—
Interest (expense) income, net	(244,209		)	100			—			—			(244,109		)
Other income (expense), net	—			3,521			(31		)	—			3,490
Income before income taxes	250,614			495,154			137,958			(534,121		)	349,605
Income tax (benefit) expense	(2,671		)	—			378			—			(2,293		)
Net income	253,285			495,154			137,580			(534,121		)	351,898
Less: net income attributable to noncontrolling interest	—			—			—			98,613			98,613
Net income attributable to SandRidge Energy, Inc.	$	253,285		$	495,154		$	137,580		$	(632,734	)	$	253,285



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Year Ended December 31, 2013
Total revenues	$	—		$	1,675,481		$	308,300		$	(393	)	$	1,983,388
Expenses
Direct operating expenses	—			654,080			29,143			(393		)	682,830
General and administrative	329			323,808			6,288			—			330,425
Depreciation, depletion, amortization and accretion	—			581,435			85,210			—			666,645
Impairment	—			15,038			11,242			—			26,280
Loss on derivative contracts	—			24,702			22,421			—			47,123
Loss on sale of assets	—			291,743			107,343			—			399,086
Total expenses	329			1,890,806			261,647			(393		)	2,152,389
(Loss) income from operations	(329		)	(215,325		)	46,653			—			(169,001		)
Equity earnings from subsidiaries	(195,118		)	3,075			—			192,043			—
Interest (expense) income, net	(271,193		)	959			—			—			(270,234		)
Loss on extinguishment of debt	(82,005		)	—			—			—			(82,005		)
Other income (expense), net	—			16,173			(3,728		)	—			12,445
(Loss) income before income taxes	(548,645		)	(195,118		)	42,925			192,043			(508,795		)
Income tax expense	5,244			—			440			—			5,684
Net (loss) income	(553,889		)	(195,118		)	42,485			192,043			(514,479		)
Less: net income attributable to noncontrolling interest	—			—			—			39,410			39,410
Net (loss) income attributable to SandRidge Energy, Inc.	$	(553,889	)	$	(195,118	)	$	42,485		$	152,633		$	(553,889	)

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)
Year Ended December 31, 2015
Net cash (used in) provided by operating activities	$	(326,674	)	$	524,313		$	124,626		$	51,272		$	373,537
Cash flows from investing activities
Capital expenditures for property, plant and equipment	—			(879,201		)	—			—			(879,201		)
Acquisition of assets	—			(216,943		)	—			—			(216,943		)
Other	—			74,140			907			(18,543		)	56,504
Net cash (used in) provided by investing activities	—			(1,022,004		)	907			(18,543		)	(1,039,640		)
Cash flows from financing activities
Proceeds from borrowings	2,065,000			—			—			—			2,065,000
Repayments of borrowings	(939,466		)	—			—			—			(939,466		)
Distributions to unitholders	—			—			(158,629		)	20,324			(138,305		)
Intercompany (advances) borrowings, net	(475,618		)	497,140			(21,522		)	—			—
Other	(66,793		)	—			53,055			(53,053		)	(66,791		)
Net cash provided by (used in) financing activities	583,123			497,140			(127,096		)	(32,729		)	920,438
Net increase (decrease) in cash and cash equivalents	256,449			(551		)	(1,563		)	—			254,335
Cash and cash equivalents at beginning of year	170,468			1,398			9,387			—			181,253
Cash and cash equivalents at end of year	$	426,917		$	847		$	7,824		$	—		$	435,588



	Parent(1)			Guarantors(1)(2)			Non-Guarantors			Eliminations(2)			Consolidated
	(In thousands)
Year Ended December 31, 2014
Net cash (used in) provided by operating activities	$	(240,932	)	$	641,181		$	212,427		$	8,438		$	621,114
Cash flows from investing activities
Capital expenditures for property, plant and equipment	—			(1,553,332		)	—			—			(1,553,332		)
Proceeds from sale of assets	—			711,728			2,747			—			714,475
Other	—			28,256			1,140			(47,780		)	(18,384		)
Net cash (used in) provided by investing activities	—			(813,348		)	3,887			(47,780		)	(857,241		)
Cash flows from financing activities
Distributions to unitholders	—			—			(234,327		)	40,520			(193,807		)
Repurchase of common stock	(111,827		)	—			—			—			(111,827		)
Intercompany (advances) borrowings, net	(215,368		)	215,373			(5		)	—			—
Other	(66,910		)	(42,821		)	19,260			(1,178		)	(91,649		)
Net cash (used in) provided by financing activities	(394,105		)	172,552			(215,072		)	39,342			(397,283		)
Net (decrease) increase in cash and cash equivalents	(635,037		)	385			1,242			—			(633,410		)
Cash and cash equivalents at beginning of year	805,505			1,013			8,145			—			814,663
Cash and cash equivalents at end of year	$	170,468		$	1,398		$	9,387		$	—		$	181,253

____________________

(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 (advances) borrowings, 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 $193.8 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 $193.8 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.



	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Year Ended December 31, 2013
Net cash (used in) provided by operating activities	$	(239,026	)	$	852,026		$	254,723		$	907		$	868,630
Cash flows from investing activities
Capital expenditures for property, plant and equipment	—			(1,496,731		)	—			—			(1,496,731		)
Proceeds from sale of assets	—			2,566,742			17,373			—			2,584,115
Other	—			89,606			3,197			(109,831		)	(17,028		)
Net cash used in investing activities	—			1,159,617			20,570			(109,831		)	1,070,356
Cash flows from financing activities
Repayments of borrowings	(1,115,500		)	—			—			—			(1,115,500		)
Premium on debt redemption	(61,997		)	—			—			—			(61,997		)
Distributions to unitholders	—			—			(299,675		)	93,205			(206,470		)
Dividends paid—preferred	(55,525		)	—			—			—			(55,525		)
Intercompany borrowings (advances) , net	2,009,146			(2,018,212		)	9,066			—			—
Other	(31,821		)	6,660			14,845			15,719			5,403
Net cash provided by (used in) financing activities	744,303			(2,011,552		)	(275,764		)	108,924			(1,434,089		)
Net increase (decrease) in cash and cash equivalents	505,277			91			(471		)	—			504,897
Cash and cash equivalents at beginning of year	300,228			922			8,616			—			309,766
Cash and cash equivalents at end of year	$	805,505		$	1,013		$	8,145		$	—		$	814,663