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Supplemental Information on Oil and Natural Gas Producing Activities (Tables)
 12 Months Ended
Dec. 31, 2017
Extractive Industries [Abstract]  
Capitalized Costs Relating to Oil, Natural Gas and NGL Producing Activities The Company’s capitalized costs for oil and natural gas activities consisted of the following (in thousands):
 
Successor
 
 
Predecessor
 
December 31,
 
December 31,
 
 
December 31,
 
2017
 
2016
 
 
2015
Oil and natural gas properties
 
 
 
 
 
 
Proved
$
1,056,806

 
$
840,201

 
 
$
12,529,681

Unproved
100,884

 
74,937

 
 
363,149

Total oil and natural gas properties
1,157,690

 
915,138

 
 
12,892,830

Less accumulated depreciation, depletion and impairment
(460,431
)
 
(353,030
)
 
 
(11,149,888
)
Net oil and natural gas properties capitalized costs
$
697,259

 
$
562,108

 
 
$
1,742,942
Cost Incurred in Oil and Natural Gas Property Acquisition, Exploration, and Development Development Costs and Working Interest (“WI”) Structure
 
 
Counterparty
 
SandRidge
Development Costs
 
90% of Costs
 
10% of Costs
Initial Working Interest
 
80% of WI
 
20% of WI
Reversion If Counterparty Achieves 10% IRR
 
35% of WI
 
65% of WI
Reversion If Counterparty Achieves 15% IRR
 
11% of WI
 
89% of WI
Costs incurred in oil and natural gas property acquisition, exploration and development activities which have been capitalized are summarized as follows (in thousands):
 
Successor
 
 
Predecessor
 
Year Ended December 31, 2017
 
Period from October 2, 2016 through December 31, 2016
 
 
Period from January 1, 2016 through October 1, 2016
 
Year Ended December 31, 2015
Acquisitions of properties
 
 
 
 
 
 
 
 
Proved
$
7,092

 
$
5,142

 
 
$
3,897

 
$
35,376

Unproved
91,139

 
5,491

 
 
1,899

 
210,065

Exploration(1)
8,850

 
—

 
 
1,234

 
29,297

Development
187,264

 
27,429

 
 
149,924

 
571,562

Total cost incurred
$
294,345

 
$
38,062

 
 
$
156,954

 
$
846,300

____________________
(1)
Includes 3-D seismic costs of $7.1 million for the year ended December 31, 2015.
Results of Operations for Oil, Natural Gas and NGL Producing Activities The following table presents the Company’s results of operations from oil and natural gas producing activities (in thousands), which exclude any interest costs or indirect general and administrative costs and, therefore, are not necessarily indicative of the contribution to net earnings of the Company’s operations.
 
Successor
 
 
Predecessor
 
Year Ended December 31, 2017
 
Period from October 2, 2016 through December 31, 2016
 
 
Period from January 1, 2016 through October 1, 2016
 
Year Ended December 31, 2015
Revenues
$
356,210

 
$
98,307

 
 
$
279,971

 
$
707,434

Expenses
 
 
 
 
 
 
 
 
Production costs
116,372

 
27,640

 
 
135,715

 
324,141

Depreciation and depletion
118,035

 
36,061

 
 
90,978

 
324,390

Impairment
—

 
319,087

 
 
657,392

 
4,473,787

Total expenses
234,407

 
382,788

 
 
884,085

 
5,122,318

Income (loss) before income taxes
121,803

 
(284,481
)
 
 
(604,114
)
 
(4,414,884
)
Income tax expense (benefit)(1)
47,722

 
(112,427
)
 
 
(229,986
)
 
(1,680,746
)
Results of operations for oil and natural gas producing activities (excluding corporate overhead and interest costs)
$
74,081

 
$
(172,054
)
 
 
$
(374,128
)
 
$
(2,734,138
)
____________________
(1)
Income tax expense (benefit) is hypothetical and is calculated by applying the Company’s statutory tax rate to income (loss) before income taxes attributable to our oil and natural gas producing activities, after giving effect to permanent differences and tax credits.
Summary of Changes in Estimated Oil, Natural Gas and NGL Reserves The summary below presents changes in the Company’s estimated reserves.
 
Oil
 
NGL
 
Natural Gas
 
Total
 
(MBbls)
 
(MBbls)
 
(MMcf)(1)
 
MBoe
Proved developed and undeveloped reserves
 
 
 
 
 
 
 
As of December 31, 2014(2) - Predecessor
126,031

 
91,786

 
1,788,233

 
515,856

Revisions of previous estimates
(70,708
)
 
(37,384
)
 
(759,106
)
 
(234,610
)
Acquisitions of new reserves
22,447

 
2,460

 
15,952

 
27,566

Extensions and discoveries
9,741

 
9,257

 
160,865

 
45,809

Production
(9,600
)
 
(5,044
)
 
(92,104
)
 
(29,995
)
As of December 31, 2015(2) - Predecessor
77,911

 
61,075

 
1,113,840

 
324,626

Adoption of ASU 2015-02
(6,971
)
 
(3,695
)
 
(50,508
)
 
(19,084
)
Revisions of previous estimates
(39,973
)
 
(21,475
)
 
(415,568
)
 
(130,709
)
Extensions and discoveries
987

 
472

 
7,955

 
2,785

Sales of reserves in place
(387
)
 
—

 
(145,267
)
 
(24,598
)
Production
(4,315
)
 
(3,358
)
 
(44,124
)
 
(15,027
)
As of October 1, 2016 - Predecessor
27,252

 
33,019

 
466,328

 
137,992

 
 
 
 
 
 
 


 
 
 
 
 
 
 


Revisions of previous estimates
23,978

 
1,139

 
915

 
25,270

Extensions and discoveries
2,868

 
448

 
10,309

 
5,034

Production
(1,214
)
 
(999
)
 
(12,770
)
 
(4,341
)
As of December 31, 2016 - Successor
52,884

 
33,607

 
464,782

 
163,955

Revisions of previous estimates
804

 
2,628

 
44,679

 
10,879

Acquisitions of new reserves
18

 
70

 
683

 
202

Extensions and discoveries
12,446

 
1,914

 
30,080

 
19,373

Sales of reserves in place
(204
)
 
(529
)
 
(7,055
)
 
(1,909
)
Production
(4,157
)
 
(3,376
)
 
(44,237
)
 
(14,906
)
As of December 31, 2017 - Successor
61,791

 
34,314

 
488,932

 
177,594

Proved developed reserves
 
 
 
 
 
 

As of December 31, 2014 - Predecessor
79,022

 
56,823

 
1,203,447

 
336,420

As of December 31, 2015 - Predecessor
48,639

 
51,089

 
964,617

 
260,498

As of October 1, 2016 - Predecessor
24,541

 
30,238

 
428,050

 
126,121

 
 
 
 
 
 
 


 
 
 
 
 
 
 


As of December 31, 2016 - Successor
25,911

 
29,290

 
393,028

 
120,706

As of December 31, 2017 - Successor
25,845

 
29,922

 
407,988

 
123,765

Proved undeveloped reserves
 
 
 
 
 
 

As of December 31, 2014 - Predecessor
47,009

 
34,963

 
584,786

 
179,436

As of December 31, 2015 - Predecessor
29,272

 
9,986

 
149,223

 
64,129

As of October 1, 2016 - Predecessor
2,711

 
2,781

 
38,278

 
11,872

 
 
 
 
 
 
 


 
 
 
 
 
 
 


As of December 31, 2016 - Successor
26,973

 
4,317

 
71,754

 
43,249

As of December 31, 2017 - Successor
35,946

 
4,392

 
80,944

 
53,829

____________________
(1)
Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit.
(2)
Includes proved reserves attributable to noncontrolling interests as shown in the table below:
 
Predecessor
 
December 31,
 
2015
 
2014
Oil (MBbl)
7,004

 
11,027

NGL (MBbl)
3,694

 
4,761

Natural gas (MMcf)
50,508

 
70,833
Calculation of Weighted Average Per Unit Prices The calculated weighted average per unit prices for the Company’s proved reserves and future net revenues were as follows:
 
Successor
 
 
Predecessor
 
December 31,
 
December 31,
 
 
December 31,
 
2017
 
2016
 
 
2015
Oil (per barrel)
$
48.47

 
$
38.59

 
 
$
45.29

NGL (per barrel)
$
20.28

 
$
10.99

 
 
$
12.68

Natural gas (per Mcf)
$
1.90

 
$
1.56

 
 
$
1.87
Standardized Measure of Discounted Future Cash Flows The summary below presents the Company’s future net cash flows relating to proved oil, natural gas and NGL reserves based on the standardized measure in ASC Topic 932 (in thousands).
 
Successor
 
 
Predecessor
 
December 31,
 
December 31,
 
 
December 31,
 
2017
 
2016
 
 
2015
Future cash inflows from production
$
4,621,615

 
$
3,136,762

 
 
$
6,387,944

Future production costs
(1,837,852
)
 
(1,454,798
)
 
 
(2,731,542
)
Future development costs(1)
(966,203
)
 
(665,516
)
 
 
(838,945
)
Future income tax expenses
(107
)
 
(142
)
 
 
(901
)
Undiscounted future net cash flows
1,817,453

 
1,016,306

 
 
2,816,556

10% annual discount
(1,068,159
)
 
(577,942
)
 
 
(1,501,994
)
Standardized measure of discounted future net cash flows(2)
$
749,294

 
$
438,364

 
 
$
1,314,562

____________________
(1)
Includes abandonment costs.
(2)
Includes approximately $224.6 million attributable to noncontrolling interests at December 31, 2015
Estimate of Changes in Standardized Measure of Discounted Future Net Cash Flows from Proved Reserves
The following table represents the Company’s estimate of changes in the standardized measure of discounted future net cash flows from proved reserves (in thousands):
 
Successor
 
 
Predecessor
 
Year Ended December 31, 2017
 
Period from October 2, 2016 through December 31, 2016
 
 
Period from January 1, 2016 through October 1, 2016
 
Year Ended December 31, 2015
Beginning present value
$
438,364

 
$
392,604

 
 
$
1,314,562

 
$
4,087,752

Changes during the year
 
 
 
 
 
 
 
 
Adoption of ASU 2015-02
—

 
—

 
 
(224,965
)
 
—

Revenues less production
(239,838
)
 
(70,668
)
 
 
(144,256
)
 
(383,293
)
Net changes in prices, production and other costs
347,458

 
35,684

 
 
(394,173
)
 
(3,813,465
)
Development costs incurred
35,517

 
7,941

 
 
69,080

 
217,596

Net changes in future development costs
(64,484
)
 
(291,232
)
 
 
436,041

 
273,437

Extensions and discoveries
112,556

 
14,986

 
 
12,449

 
230,055

Revisions of previous quantity estimates
26,697

 
308,374

 
 
(728,254
)
 
(1,354,778
)
Accretion of discount
37,226

 
9,375

 
 
91,337

 
512,483

Net change in income taxes
23

 
—

 
 
402

 
1,426,333

Purchases of reserves in-place
454

 
—

 
 
—

 
18,429

Sales of reserves in-place
(2,977
)
 
—

 
 
(13,314
)
 
—

Timing differences and other(1)
58,298

 
31,300

 
 
(26,305
)
 
100,013

Net change for the year
310,930

 
45,760

 
 
(921,958
)
 
(2,773,190
)
Ending present value(2)
$
749,294

 
$
438,364

 
 
$
392,604

 
$
1,314,562


____________________
(1)
The change in timing differences and other are related to revisions in the Company’s estimated time of production and development.
(2)
Includes approximately $224.6 million attributable to noncontrolling interests at December 31, 2015.