Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'SD | ' |
Entity Registrant Name | 'SANDRIDGE ENERGY INC | ' |
Entity Central Index Key | '0001349436 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 490,330,561 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ' | ' | ||
Cash and cash equivalents | $920,257 | $309,766 | ||
Accounts receivable, net | 390,882 | 445,506 | ||
Derivative contracts | 8,306 | 71,022 | ||
Costs in excess of billings and contract loss | 6,276 | 11,229 | ||
Prepaid expenses | 37,857 | 31,319 | ||
Restricted deposit | 0 | 255,000 | ||
Other current assets | 39,684 | 19,043 | ||
Total current assets | 1,403,262 | 1,142,885 | ||
Oil and natural gas properties, using full cost method of accounting | ' | ' | ||
Proved | 10,663,810 | [1] | 12,262,921 | [1] |
Unproved | 529,032 | 865,863 | ||
Less: accumulated depreciation, depletion and impairment | -5,643,158 | -5,231,182 | ||
Net oil and natural gas properties capitalized costs | 5,549,684 | 7,897,602 | ||
Other property, plant and equipment, net | 576,390 | 582,375 | ||
Derivative contracts | 15,478 | 23,617 | ||
Other assets | 124,630 | 144,252 | ||
Total assets | 7,669,444 | 9,790,731 | ||
Current liabilities | ' | ' | ||
Accounts payable and accrued expenses | 774,115 | 766,544 | ||
Billings and contract loss in excess of costs incurred | 0 | 15,546 | ||
Derivative contracts | 36,471 | 14,860 | ||
Asset retirement obligations | 71,446 | 118,504 | ||
Deposit on pending sale | 0 | 255,000 | ||
Total current liabilities | 882,032 | 1,170,454 | ||
Long-term debt | 3,194,784 | 4,301,083 | ||
Derivative contracts | 24,542 | 59,787 | ||
Asset retirement obligations | 358,301 | 379,906 | ||
Other long-term obligations | 24,237 | 17,046 | ||
Total liabilities | 4,483,896 | 5,928,276 | ||
Commitments and contingencies (Note 11) | ' | ' | ||
Preferred stock, $0.001 par value, 50,000 shares authorized | ' | ' | ||
Common stock, $0.001 par value, 800,000 shares authorized; 491,805 issued and 490,536 outstanding at September 30, 2013 and 491,578 issued and 490,359 outstanding at December 31, 2012 | 483 | 476 | ||
Additional paid-in capital | 5,292,792 | 5,233,019 | ||
Additional paid-in capital—stockholder receivable | -5,000 | -5,000 | ||
Treasury stock, at cost | -8,763 | -8,602 | ||
Accumulated deficit | -3,465,661 | -2,851,048 | ||
Total SandRidge Energy, Inc. stockholders’ equity | 1,813,859 | 2,368,853 | ||
Noncontrolling interest | 1,371,689 | 1,493,602 | ||
Total equity | 3,185,548 | 3,862,455 | ||
Total liabilities and equity | 7,669,444 | 9,790,731 | ||
8.5% Convertible perpetual preferred stock; 2,650 shares issued and outstanding at September 30, 2013 and December 31, 2012; aggregate liquidation preference of $265,000 | ' | ' | ||
Preferred stock, $0.001 par value, 50,000 shares authorized | ' | ' | ||
Preferred stock | 3 | 3 | ||
6.0% Convertible perpetual preferred stock; 2,000 shares issued and outstanding at September 30, 2013 and December 31, 2012; aggregate liquidation preference of $200,000 | ' | ' | ||
Preferred stock, $0.001 par value, 50,000 shares authorized | ' | ' | ||
Preferred stock | 2 | 2 | ||
7.0% Convertible perpetual preferred stock; 3,000 shares issued and outstanding at September 30, 2013 and December 31, 2012; aggregate liquidation preference of $300,000 | ' | ' | ||
Preferred stock, $0.001 par value, 50,000 shares authorized | ' | ' | ||
Preferred stock | $3 | $3 | ||
[1] | Includes cumulative capitalized interest of approximately $20.7 million and $11.7 million at September 30, 2013 and December 31, 2012, respectively. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 |
Preferred stock, shares outstanding (in shares) | 7,650 | 7,650 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 800,000 | 800,000 |
Common stock, issued (in shares) | 491,805 | 491,578 |
Common stock, outstanding (in shares) | 490,536 | 490,359 |
8.5% Convertible perpetual preferred stock; 2,650 shares issued and outstanding at September 30, 2013 and December 31, 2012; aggregate liquidation preference of $265,000 | ' | ' |
Preferred stock, shares issued (in shares) | 2,650 | 2,650 |
Preferred stock, shares outstanding (in shares) | 2,650 | 2,650 |
Preferred stock, aggregate liquidation preference | $265,000 | $265,000 |
6.0% Convertible perpetual preferred stock; 2,000 shares issued and outstanding at September 30, 2013 and December 31, 2012; aggregate liquidation preference of $200,000 | ' | ' |
Preferred stock, shares issued (in shares) | 2,000 | 2,000 |
Preferred stock, shares outstanding (in shares) | 2,000 | 2,000 |
Preferred stock, aggregate liquidation preference | 200,000 | 200,000 |
7.0% Convertible perpetual preferred stock; 3,000 shares issued and outstanding at September 30, 2013 and December 31, 2012; aggregate liquidation preference of $300,000 | ' | ' |
Preferred stock, shares issued (in shares) | 3,000 | 3,000 |
Preferred stock, shares outstanding (in shares) | 3,000 | 3,000 |
Preferred stock, aggregate liquidation preference | $300,000 | $300,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenues | ' | ' | ' | ' | ||||
Oil and natural gas | $459,211 | $488,252 | $1,391,510 | $1,259,375 | ||||
Drilling and services | 16,149 | 27,760 | 49,597 | 90,701 | ||||
Midstream and marketing | 14,624 | 10,708 | 42,854 | 27,866 | ||||
Construction contract | 0 | 0 | 23,253 | 0 | ||||
Other | 3,619 | 6,078 | 11,066 | 14,925 | ||||
Total revenues | 493,603 | 532,798 | 1,518,280 | 1,392,867 | ||||
Expenses | ' | ' | ' | ' | ||||
Production | 116,317 | 137,033 | 365,629 | 342,824 | ||||
Production taxes | 8,816 | 12,967 | 24,819 | 36,222 | ||||
Cost of sales | 13,773 | 15,666 | 45,438 | 52,468 | ||||
Midstream and marketing | 13,224 | 10,674 | 39,954 | 27,187 | ||||
Construction contract | 0 | 0 | 23,253 | 0 | ||||
Depreciation and depletion—oil and natural gas | 137,639 | 166,126 | 434,068 | 392,452 | ||||
Depreciation and amortization—other | 15,270 | 16,497 | 46,628 | 46,357 | ||||
Accretion of asset retirement obligations | 8,472 | 9,053 | 28,051 | 19,625 | ||||
Impairment | 687 | 0 | 16,330 | 0 | ||||
General and administrative | 39,970 | 46,781 | 292,675 | 158,798 | ||||
Loss (gain) on derivative contracts | 132,808 | 193,497 | 70,051 | -221,707 | ||||
Loss on sale of assets | 539 | 375 | 398,364 | 3,755 | ||||
Total expenses | 487,515 | 608,669 | 1,785,260 | 857,981 | ||||
Income (loss) from operations | 6,088 | [1] | -75,871 | [1] | -266,980 | [2] | 534,886 | [2] |
Other income (expense) | ' | ' | ' | ' | ||||
Interest expense | -61,385 | -81,894 | -208,454 | -217,428 | ||||
Bargain purchase gain | 0 | 0 | 0 | 122,696 | ||||
Loss on extinguishment of debt | 0 | -3,056 | -82,005 | -3,056 | ||||
Other income, net | 658 | 1,242 | 1,163 | 3,629 | ||||
Total other expense | -60,727 | -83,708 | -289,296 | -94,159 | ||||
(Loss) income before income taxes | -54,639 | -159,579 | -556,276 | 440,727 | ||||
Income tax expense (benefit) | 2,363 | 173 | 7,300 | -100,373 | ||||
Net (loss) income | -57,002 | -159,752 | -563,576 | 541,100 | ||||
Less: net income attributable to noncontrolling interest | 16,191 | 10,668 | 9,393 | 111,626 | ||||
Net (loss) income attributable to SandRidge Energy, Inc. | -73,193 | -170,420 | -572,969 | 429,474 | ||||
Preferred stock dividends | 13,881 | 13,881 | 41,644 | 41,644 | ||||
(Loss applicable) income available to SandRidge Energy, Inc. common stockholders | ($87,074) | ($184,301) | ($614,613) | $387,830 | ||||
(Loss) earnings per share | ' | ' | ' | ' | ||||
Basic (in dollars) | ($0.18) | ($0.39) | ($1.28) | $0.87 | ||||
Diluted (in dollars) | ($0.18) | ($0.39) | ($1.28) | $0.80 | ||||
Weighted average number of common shares outstanding | ' | ' | ' | ' | ||||
Basic (in shares) | 483,582 | 476,037 | 480,209 | 445,991 | ||||
Diluted (in shares) | 483,582 | 476,037 | 480,209 | 537,300 | ||||
[1] | Exploration and production segment loss from operations includes losses due to changes in fair value of commodity derivative contracts of $119.6 million and $222.5 million for the three-month periods ended September 30, 2013 and 2012, respectively. | |||||||
[2] | Exploration and production segment (loss) income from operations includes losses (gains) due to changes in fair value of commodity derivative contracts of $58.5 million and $(229.1) million for the nine-month periods ended September 30, 2013 and 2012, respectively. Exploration and production segment loss from operations also includes a loss on the sale of the Permian Properties of $398.9 million for the nine-month period ended September 30, 2013. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) | Total | Convertible Perpetual Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Noncontrolling Interest |
In Thousands | |||||||
Beginning Balance at Dec. 31, 2012 | $3,862,455 | $8 | $476 | $5,228,019 | ($8,602) | ($2,851,048) | $1,493,602 |
Beginning Balance (in shares) at Dec. 31, 2012 | 490,359 | ' | 490,359 | ' | ' | ' | ' |
Beginning Balance (in shares) at Dec. 31, 2012 | 7,650 | 7,650 | ' | ' | ' | ' | ' |
Sale of royalty trust units | 28,985 | ' | ' | 7,289 | ' | ' | 21,696 |
Distributions to noncontrolling interest owners | -153,002 | ' | ' | ' | ' | ' | -153,002 |
Purchase of treasury stock | -29,661 | ' | ' | ' | -29,661 | ' | ' |
Retirement of treasury stock | 0 | ' | ' | -29,661 | 29,661 | ' | ' |
Stock purchase - retirement plans, net of distributions (in shares) | ' | ' | -50 | ' | ' | ' | ' |
Stock purchase — retirement plans, net of distributions | 249 | ' | ' | 410 | -161 | ' | ' |
Stock-based compensation | 81,746 | ' | ' | 81,746 | ' | ' | ' |
Stock-based compensation excess tax benefit | -4 | ' | ' | -4 | ' | ' | ' |
Issuance of restricted stock awards, net of cancellations (in shares) | ' | ' | 227 | ' | ' | ' | ' |
Issuance of restricted stock awards, net of cancellations | 0 | ' | 7 | -7 | ' | ' | ' |
Net (loss) income | -563,576 | ' | ' | ' | ' | -572,969 | 9,393 |
Convertible perpetual preferred stock dividends | -41,644 | ' | ' | ' | ' | -41,644 | ' |
Ending Balance at Sep. 30, 2013 | $3,185,548 | $8 | $483 | $5,287,792 | ($8,763) | ($3,465,661) | $1,371,689 |
Ending Balance (in shares) at Sep. 30, 2013 | 490,536 | ' | 490,536 | ' | ' | ' | ' |
Ending Balance (in shares) at Sep. 30, 2013 | 7,650 | 7,650 | ' | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net (loss) income | ($563,576) | $541,100 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | ' | ' |
Depreciation, depletion and amortization | 480,696 | 438,809 |
Accretion of asset retirement obligations | 28,051 | 19,625 |
Impairment | 16,330 | 0 |
Debt issuance costs amortization | 7,730 | 11,348 |
Amortization of discount, net of premium, on long-term debt | 913 | 1,940 |
Bargain purchase gain | 0 | -122,696 |
Loss on extinguishment of debt | 82,005 | 3,056 |
Deferred income tax provision (benefit) | 4,702 | -100,288 |
Loss (gain) due to change in fair value of derivative contracts | 56,085 | -234,705 |
Loss on sale of assets | 398,364 | 3,755 |
Stock-based compensation | 79,317 | 33,128 |
Other | 1,485 | -259 |
Changes in operating assets and liabilities | 6,868 | -109,908 |
Net cash provided by operating activities | 595,007 | 584,230 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures for property, plant and equipment | -1,163,539 | -1,625,737 |
Acquisition of assets | -15,527 | -837,019 |
Proceeds from sale of assets | 2,567,355 | 422,171 |
Net cash provided by (used in) investing activities | 1,388,289 | -2,040,585 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from borrowings | 0 | 1,850,344 |
Repayments of borrowings | -1,115,500 | -366,029 |
Premium on debt redemption | -61,997 | -825 |
Debt issuance costs | -91 | -48,220 |
Proceeds from issuance of royalty trust units | 0 | 587,086 |
Proceeds from sale of royalty trust units | 28,985 | 123,548 |
Noncontrolling interest distributions | -153,002 | -127,023 |
Stock-based compensation excess tax benefit | -4 | 8 |
Purchase of treasury stock | -31,270 | -12,807 |
Dividends paid — preferred | -45,025 | -45,025 |
Cash received (paid) on settlement of financing derivative contracts | 5,099 | -38,703 |
Net cash (used in) provided by financing activities | -1,372,805 | 1,922,354 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 610,491 | 465,999 |
CASH AND CASH EQUIVALENTS, beginning of year | 309,766 | 207,681 |
CASH AND CASH EQUIVALENTS, end of period | 920,257 | 673,680 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid for interest, net of amounts capitalized | -248,233 | -181,386 |
Cash paid for income taxes | -2,911 | -1,324 |
Supplemental Disclosure of Noncash Investing and Financing Activities | ' | ' |
Deposit on pending sale | -255,000 | 0 |
Change in accrued capital expenditures | -65,087 | 66,033 |
Adjustment to oil and natural gas properties for estimated contract loss | 0 | 10,000 |
Asset retirement costs capitalized | 4,145 | 5,363 |
Common stock issued in connection with acquisition | 0 | 542,138 |
Amended | ' | ' |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | ' | ' |
Loss (gain) on derivative contracts | 0 | 117,108 |
Contractual Maturity, Financing | ' | ' |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | ' | ' |
Loss (gain) on derivative contracts | ($3,963) | ($17,783) |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Nature of Business. SandRidge is an independent oil and natural gas company concentrating on development and production activities in the Mid-Continent and Gulf of Mexico. The Company’s primary area of focus is the Mississippian formation in northern Oklahoma and southern Kansas. The Company owns and operates additional interests in the Mid-Continent, Gulf Coast, Permian Basin and West Texas Overthrust. The Company also operates businesses and infrastructure systems that are complementary to its primary development and production activities, including gas gathering and processing facilities, an oil and natural gas marketing business, a saltwater disposal system, an electrical transmission system and an oil field services business, which includes a drilling rig business. | |
Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned or majority owned subsidiaries and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Interim Financial Statements. The accompanying condensed consolidated financial statements as of December 31, 2012 have been derived from the audited financial statements contained in the Company’s 2012 Form 10-K. The unaudited interim condensed consolidated financial statements have been prepared by the Company in accordance with the accounting policies stated in the audited consolidated financial statements contained in the 2012 Form 10-K. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, all adjustments, which consist only of normal recurring adjustments, necessary to state fairly the information in the Company’s accompanying unaudited condensed consolidated financial statements have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the 2012 Form 10-K. | |
Significant Accounting Policies. For a description of the Company’s significant accounting policies, see Note 1 of the consolidated financial statements included in the 2012 Form 10-K. | |
Reclassifications. Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications have no effect on the Company’s previously reported results of operations. | |
Measurement Period Adjustments. Certain prior period financial information in the accompanying unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows has been revised as a result of retrospectively adjusting provisional amounts recognized for the acquisition of Dynamic Offshore Resources, LLC (“Dynamic”) during the measurement period. See Note 2 for further discussion of these adjustments. | |
Use of Estimates. The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. | |
The more significant areas requiring the use of assumptions, judgments and estimates include: oil and natural gas reserves; cash flow estimates used in impairment tests of long-lived assets; depreciation, depletion and amortization; asset retirement obligations; assignments of fair value and allocations of purchase price in connection with business combinations; determinations of significant alterations to the full cost pool and related estimates of fair value for allocations of divested oil and natural gas properties that result in substantial economic differences between the properties divested and the properties remaining; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes these estimates are reasonable, actual results could differ significantly. | |
Risks and Uncertainties. The Company’s revenue, profitability and future growth are substantially dependent upon the prevailing and future prices for oil and natural gas, each of which depends on numerous factors beyond the Company’s control such as overall oil and natural gas production and inventories in relevant markets, economic conditions, the global political environment, regulatory developments and competition from other energy sources. Oil and natural gas prices historically have been volatile, and may be subject to significant fluctuations in the future. The Company enters into derivative arrangements in order to mitigate a portion of the effect of this price volatility on the Company’s cash flows. See Note 9 for the Company’s open oil and natural gas derivative contracts. | |
Production targets contained in certain gathering and treating agreements require the Company to incur capital expenditures or make associated shortfall payments. Additionally, the Company has a drilling obligation to each of SandRidge Permian Trust (the “Permian Trust”) and SandRidge Mississippian Trust II (the “Mississippian Trust II”). See Note 3 for discussion of these drilling obligations. The Company depends on cash flows from operating activities, funding commitments from third parties for drilling carries and, as necessary, borrowings under its senior secured revolving credit facility (the “senior credit facility”) to fund its capital expenditures. Additionally, the Company may use proceeds from the issuance of equity and debt securities in the capital markets and from the sale or other monetization of assets to fund its capital expenditures. Based on current cash balances, cash flows from operating activities and funding commitments from third parties for drilling carries, the Company expects to be able to fund its planned capital expenditures budget, debt service requirements and working capital needs for the remainder of 2013 and 2014. However, a substantial or extended decline in oil or natural gas prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows and quantities of oil and natural gas reserves that may be economically produced, which could adversely impact the Company’s ability to comply with the financial covenants under its senior credit facility. See Note 8 for discussion of the financial covenants in the senior credit facility. | |
Recent Accounting Pronouncements. In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11, “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”), and issued Accounting Standards Update 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”) in January 2013. These updates require disclosures about the nature of an entity’s rights of offset and related arrangements associated with its recognized derivative contracts. The new disclosure requirements, which are effective for interim and annual periods beginning on or after January 1, 2013, were implemented by the Company on January 1, 2013. The implementation of ASU 2011-11 and ASU 2013-01 had no impact on the Company’s financial position or results of operations. See Note 9 for the Company’s derivative disclosures. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Acquisitions and Divestitures [Abstract] | ' | ||||||||||||||
Acquisitions and Divestitures | ' | ||||||||||||||
Acquisitions and Divestitures | |||||||||||||||
2012 Acquisitions and Divestitures | |||||||||||||||
Dynamic Acquisition. The Company acquired 100% of the equity interests of Dynamic in April 2012 for total consideration of approximately $1.2 billion, comprised of approximately $680.0 million in cash and approximately 74 million shares of SandRidge common stock (the “Dynamic Acquisition”). Upon completion of the initial purchase price allocation as of April 17, 2012, the Company reviewed and verified its assessment, including the identification and valuation of assets acquired and liabilities assumed. The Company recorded a net deferred tax liability associated with the Dynamic Acquisition, which resulted in the release of a portion of the previously recorded valuation allowance on the Company’s net deferred tax asset. | |||||||||||||||
During the fourth quarter of 2012, the Company updated certain of the estimates used in the preliminary purchase price allocation, primarily with respect to deferred taxes and other accruals for which the Company was awaiting additional information. Adjustments to the purchase price allocation and the corresponding $1.8 million adjustment to the bargain purchase gain and $3.0 million adjustment to the valuation allowance, which resulted in income tax expense, were recorded retrospectively to the period of the acquisition and are reflected in the accompanying unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows for the nine-month period ended September 30, 2012. The application of these adjustments resulted in a decrease of $4.8 million to net income and a decrease of $0.01 to both basic and diluted earnings per share for the nine-month period ended September 30, 2012 from net income and earnings per share previously presented. In the second quarter of 2013, the Company completed its valuation of assets acquired and liabilities assumed related to the Dynamic Acquisition with no further adjustments made to the purchase price allocation. | |||||||||||||||
The following table summarizes the assets acquired and liabilities assumed in connection with the Dynamic Acquisition (in thousands, except stock price): | |||||||||||||||
Consideration(1) | |||||||||||||||
Shares of SandRidge common stock issued | 73,962 | ||||||||||||||
SandRidge common stock price | $ | 7.33 | |||||||||||||
Fair value of common stock issued | 542,138 | ||||||||||||||
Cash consideration(2) | 680,000 | ||||||||||||||
Cash balance adjustment(3) | 13,091 | ||||||||||||||
Total purchase price | $ | 1,235,229 | |||||||||||||
Fair Value of Liabilities Assumed | |||||||||||||||
Current liabilities | $ | 129,363 | |||||||||||||
Asset retirement obligations(4) | 315,922 | ||||||||||||||
Long-term deferred tax liability(5) | 100,288 | ||||||||||||||
Other long-term liabilities | 4,469 | ||||||||||||||
Amount attributable to liabilities assumed | 550,042 | ||||||||||||||
Total purchase price plus liabilities assumed | 1,785,271 | ||||||||||||||
Fair Value of Assets Acquired | |||||||||||||||
Current assets | 142,027 | ||||||||||||||
Oil and natural gas properties(6) | 1,746,753 | ||||||||||||||
Other property, plant and equipment | 1,296 | ||||||||||||||
Other non-current assets | 17,891 | ||||||||||||||
Amount attributable to assets acquired | 1,907,967 | ||||||||||||||
Bargain purchase gain(7) | $ | (122,696 | ) | ||||||||||||
____________________ | |||||||||||||||
-1 | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. | ||||||||||||||
-2 | Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022. | ||||||||||||||
-3 | In accordance with the acquisition agreement, the Company remitted to the seller a cash payment equal to Dynamic’s average daily cash balance for the 30-day period ending on the second day prior to closing. This resulted in an additional cash payment by the Company of $13.1 million at closing. | ||||||||||||||
-4 | The estimated fair value of the acquired asset retirement obligations was determined using the Company’s credit adjusted risk-free rate. | ||||||||||||||
-5 | The net deferred tax liability is primarily a result of the difference between the estimated fair value and the Company’s expected tax basis in the assets acquired and liabilities assumed. The net deferred tax liability also includes the effects of deferred tax assets associated with net operating losses and other tax attributes acquired as a result of the Dynamic Acquisition. | ||||||||||||||
-6 | The fair value of oil and natural gas properties acquired was estimated using a discounted cash flow model, with future cash flows estimated based upon projections of oil and natural gas reserve quantities and weighted average oil and natural gas prices of $113.62 per barrel of oil and $3.83 per Mcf of natural gas, after adjustment for transportation fees and regional price differentials. The commodity prices utilized were based upon commodity strip prices as of April 17, 2012 for the first four years and escalated for inflation at a rate of 2.0% annually beginning with the fifth year through the end of production. Future cash flows were discounted using an industry weighted average cost of capital rate. | ||||||||||||||
-7 | The bargain purchase gain results from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. | ||||||||||||||
Market assumptions of future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates and risk-adjusted discount rates were used by the Company to estimate the fair market value of the oil and natural gas properties acquired. Based on the unobservable nature of certain of these assumptions, the valuation is considered Level 3 under the fair value hierarchy, as described in Note 4. | |||||||||||||||
The following unaudited pro forma combined results of operations for the nine-month period ended September 30, 2012 are presented as though the Dynamic Acquisition had been completed as of January 1, 2011, which was the beginning of the earliest period presented at the time of the acquisition. The pro forma combined results of operations for the nine-month period ended September 30, 2012 have been prepared by adjusting the historical results of the Company to include the historical results of Dynamic and certain reclassifications to conform Dynamic’s presentation and accounting policies to the Company’s, and to exclude the bargain purchase gain, the partial valuation allowance release and certain transaction costs. The supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined company for the period presented. The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the Dynamic Acquisition or any estimated costs incurred to integrate Dynamic. Future results may vary significantly from the results reflected in this pro forma financial information because of future events and transactions, as well as other factors. | |||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Revenues | $ | 1,570,801 | |||||||||||||
Net income(1) | $ | 334,038 | |||||||||||||
Income available to SandRidge Energy, Inc. common stockholders(1) | $ | 180,768 | |||||||||||||
Earnings per common share(1) | |||||||||||||||
Basic | $ | 0.38 | |||||||||||||
Diluted | $ | 0.38 | |||||||||||||
_________________ | |||||||||||||||
-1 | Pro forma net income, income available to SandRidge Energy, Inc. common stockholders and earnings per common share exclude $12.9 million of acquisition costs, a $122.7 million bargain purchase gain, a $100.3 million partial valuation allowance release and $10.9 million of fees to secure financing included in the accompanying unaudited condensed consolidated statement of operations for the nine-month period ended September 30, 2012. | ||||||||||||||
Transaction costs related to the Dynamic Acquisition of $0.5 million and $12.9 million are included in general and administrative expense in the accompanying unaudited condensed consolidated statements of operations for the three and nine-month periods ended September 30, 2012, respectively. Fees incurred to secure financing for the acquisition of $10.9 million are included in interest expense in the accompanying unaudited condensed consolidated statement of operations for the nine-month period ended September 30, 2012. | |||||||||||||||
Sale of Tertiary Recovery Properties. In June 2012, the Company sold its tertiary recovery properties located in the Permian Basin area of west Texas for approximately $130.8 million, net of post-closing adjustments. The sale of the acreage and working interests in wells was accounted for as an adjustment to the full cost pool with no gain or loss recognized. | |||||||||||||||
Acquisition of Gulf of Mexico Properties. In June 2012, the Company acquired oil and natural gas properties in the Gulf of Mexico (the “Gulf of Mexico Properties”) located on approximately 184,000 gross (103,000 net) acres for approximately $43.3 million, net of purchase price and post-closing adjustments. This acquisition expanded the Company’s presence in the Gulf of Mexico, adding oil and natural gas reserves and production to its existing asset base in this area. | |||||||||||||||
This acquisition qualified as a business combination for accounting purposes and, as such, the Company estimated the fair value of the acquired properties as of June 20, 2012, which was the date on which the Company obtained control of the properties. The fair value was estimated using a discounted cash flow model based upon market assumptions of future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates and risk-adjusted discount rates. Based on the unobservable nature of certain of these assumptions, the valuation is considered Level 3 under the fair value hierarchy, as described in Note 4. | |||||||||||||||
The Company estimated the consideration paid for these properties approximated the consideration that would be paid by a typical market participant. As a result, no goodwill or bargain purchase gain was recognized in conjunction with the purchase of these properties. | |||||||||||||||
The Company completed its valuation of assets acquired and liabilities assumed related to the acquired Gulf of Mexico Properties in the first quarter of 2013 and updated estimates used in the preliminary purchase price allocation with respect to certain accruals, resulting in an adjustment of $4.8 million to proved developed and undeveloped properties. The following table summarizes the consideration paid to acquire the properties and the final valuation of assets acquired and liabilities assumed as of June 20, 2012 (in thousands): | |||||||||||||||
Consideration paid | |||||||||||||||
Cash, net of purchase price adjustments | $ | 43,282 | |||||||||||||
Fair value of identifiable assets acquired and liabilities assumed | |||||||||||||||
Proved developed and undeveloped properties | $ | 98,725 | |||||||||||||
Asset retirement obligation | (55,443 | ) | |||||||||||||
Total identifiable net assets | $ | 43,282 | |||||||||||||
The following unaudited pro forma combined results of operations for the nine-month period ended September 30, 2012 are presented as though the Company acquired the Gulf of Mexico Properties as of January 1, 2011, which was the beginning of the earliest period presented at the time of the acquisition. The pro forma combined results of operations for the nine-month period ended September 30, 2012 have been prepared by adjusting the historical results of the Company to include the historical results of the acquired properties and estimates of the effect of the transaction on the combined results. The supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved had the transaction been in effect for the period presented. Future results may vary significantly from the results reflected in this pro forma financial information because of future events and transactions, as well as other factors. | |||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Revenues | $ | 1,421,283 | |||||||||||||
Net income | $ | 543,947 | |||||||||||||
Income available to SandRidge Energy, Inc. common stockholders | $ | 390,227 | |||||||||||||
Earnings per common share | |||||||||||||||
Basic | $ | 0.87 | |||||||||||||
Diluted | $ | 0.8 | |||||||||||||
2013 Divestiture | |||||||||||||||
Sale of Permian Properties. On February 26, 2013, the Company sold all of its oil and natural gas properties in the Permian Basin in west Texas, excluding the assets attributable to the Permian Trust’s area of mutual interest (the “Permian Properties”), for $2.6 billion, including certain post-closing adjustments that were finalized in the third quarter of 2013. This transaction resulted in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company recorded a loss on the sale. Including certain post-closing adjustments that were finalized in the third quarter of 2013, a $398.9 million loss on the sale is included in loss on sale of assets in the accompanying unaudited condensed consolidated statements of operations for the nine-month period ended September 30, 2013. A portion of the loss totaling $71.7 million, which includes the effects of post-closing adjustments recorded in the third quarter of 2013, was allocated to noncontrolling interests and is reflected in net income attributable to noncontrolling interest in the accompanying unaudited condensed consolidated statements of operations for the nine-month period ended September 30, 2013. The loss was calculated based on a comparison of proceeds received and the asset retirement obligations attributable to the Permian Properties that were assumed by the buyer to the sum of (i) an allocation of the historical net book value of the Company’s proved oil and natural gas properties attributable to the Permian Properties, (ii) the historical cost of unproved acreage sold and (iii) costs incurred by the Company to sell these properties. The allocated net book value attributable to the Permian Properties was calculated based on the relative fair value of the Permian Properties and the remaining proved oil and natural gas properties retained by the Company as of the date of sale. | |||||||||||||||
The following table presents revenues and direct operating expenses of the Permian Properties included in the accompanying unaudited condensed consolidated statements of operations for the three-month period ended September 30, 2012 and the nine-month periods ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2013(1) | 2012 | |||||||||||||
Revenues | $ | 143,347 | $ | 68,027 | $ | 438,742 | |||||||||
Direct operating expenses | $ | 27,603 | $ | 17,453 | $ | 92,884 | |||||||||
__________________ | |||||||||||||||
-1 | Includes revenues and direct operating expenses through February 26, 2013, the date of sale. | ||||||||||||||
Sale of Working Interests and Associated Drilling Carry Commitments | |||||||||||||||
During 2011 and 2012, the Company completed two transactions whereby it sold non-operated working interests in the Mississippian formation. In these transactions, the Company received aggregate cash proceeds of $500.0 million for the sale of working interests and received drilling carry commitments to fund a portion of its future drilling and completion costs within areas of mutual interest totaling $1.0 billion. For accounting purposes, initial cash proceeds from these transactions were reflected as a reduction of oil and natural gas properties with no gain or loss recognized. These transactions and the associated drilling carries as of September 30, 2013 were as follows: | |||||||||||||||
Partner | Closing Date | Total Drilling Carry | Drilling Carry Recorded | Drilling Carry Remaining | |||||||||||
(in thousands) | |||||||||||||||
Atinum MidCon I, LLC | September 2011 | $ | 250,000 | $ | 250,000 | $ | — | ||||||||
Repsol E&P USA, Inc. | Jan-12 | 750,000 | 470,700 | 279,300 | |||||||||||
$ | 1,000,000 | $ | 720,700 | $ | 279,300 | ||||||||||
During the nine-month periods ended September 30, 2013 and 2012, the Company recorded approximately $334.2 million and $243.1 million, respectively, for Atinum MidCon I, LLC’s and Repsol E&P USA, Inc.’s drilling carries, which reduced the Company’s capital expenditures for the respective period. As of September 30, 2013, Atinum MidCon I, LLC has fully funded its drilling carry commitment. Under the agreement with Repsol E&P USA, Inc., the remaining drilling carry commitment may be reduced if a certain number of wells are not drilled within the area of mutual interest during a twelve-month period. |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||||||
Variable Interest Entities | ' | ||||||||||||||||
Variable Interest Entities | |||||||||||||||||
The Company consolidates the activities of VIEs of which it is the primary beneficiary. The primary beneficiary of a VIE is that variable interest holder possessing a controlling financial interest through (i) its power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) its obligation to absorb losses or its right to receive benefits from the VIE that could potentially be significant to the VIE. In order to determine whether the Company owns a variable interest in a VIE and the significance of the variable interest, the Company performs a qualitative analysis of the entity’s design, organizational structure, primary decision makers and related financial agreements. | |||||||||||||||||
The Company’s significant associated VIEs, including those for which the Company has determined it is the primary beneficiary and those for which it has determined it is not, are described below. | |||||||||||||||||
Grey Ranch Plant, L.P. Primarily engaged in treating and transportation of natural gas, Grey Ranch Plant, L.P. (“GRLP”) is a limited partnership that operates the Company’s Grey Ranch plant (the “Plant”) located in Pecos County, Texas. The Company has long-term operating and gathering agreements with GRLP and also owns a 50% interest in GRLP, which represents a variable interest. Income or loss of GRLP is allocated to the partners based on ownership percentage and any operating or cash shortfalls require contributions from the partners. The Company has determined that GRLP qualifies as a VIE because certain equity holders lack the ability to participate in decisions impacting GRLP. Agreements related to the ownership and operation of GRLP provide for GRLP to pay management fees to the Company to operate the Plant and lease payments for the Plant. Under the operating agreements, lease payments are reduced if throughput volumes are below those expected. The Company determined that it is the primary beneficiary of GRLP as it has both (i) the power to direct the activities of GRLP that most significantly impact its economic performance as operator of the Plant and (ii) the obligation to absorb losses, as a result of the operating and gathering agreements, that could potentially be significant to GRLP and, therefore, consolidates the activity of GRLP in its consolidated financial statements. The 50% ownership interest not held by the Company is presented as noncontrolling interest in the consolidated financial statements. | |||||||||||||||||
GRLP’s assets can only be used to settle its own obligations and not other obligations of the Company. GRLP’s creditors have no recourse to the general credit of the Company. Although GRLP is included in the Company’s consolidated financial statements, the Company’s legal interest in GRLP’s assets is limited to its 50% ownership. At September 30, 2013 and December 31, 2012, $0.6 million and $1.1 million, respectively, of noncontrolling interest in the accompanying condensed consolidated balance sheets were related to GRLP. GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheets at September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cash and cash equivalents | $ | 111 | $ | 1,080 | |||||||||||||
Accounts receivable, net | 16 | 20 | |||||||||||||||
Prepaid expenses | 33 | 64 | |||||||||||||||
Other current assets | 109 | 109 | |||||||||||||||
Total current assets | 269 | 1,273 | |||||||||||||||
Other property, plant and equipment, net | 1,184 | 1,246 | |||||||||||||||
Total assets | $ | 1,453 | $ | 2,519 | |||||||||||||
Accounts payable and accrued expenses | $ | 165 | $ | 274 | |||||||||||||
Total liabilities | $ | 165 | $ | 274 | |||||||||||||
Grey Ranch Plant Genpar, LLC. The Company owns a 50% interest in Grey Ranch Plant Genpar, LLC (“Genpar”), the managing partner and 1% owner of GRLP. Additionally, the Company serves as Genpar’s administrative manager. Genpar’s ownership interest in GRLP is its only asset. As managing partner of GRLP, Genpar has the sole right to manage, control and conduct the business of GRLP. However, Genpar is restricted from making certain major decisions, including the decision to remove the Company as operator of the Plant. The rights afforded the Company under the Plant operating agreement and the restrictions on Genpar limit Genpar’s ability to make decisions on behalf of GRLP. Therefore, Genpar is considered a VIE. Although both the Company and Genpar’s other equity owner share equally in Genpar’s economic losses and benefits and also have agreements that may be considered variable interests, the Company determined it was the primary beneficiary of Genpar due to (i) its ability, as administrative manager and operator of the Plant, to direct the activities of Genpar that most significantly impact its economic performance and (ii) its obligation or right, as operator of the Plant, to absorb the losses of or receive benefits from Genpar that could potentially be significant to Genpar. As the primary beneficiary, the Company consolidates Genpar’s activity. However, its sole asset, the investment in GRLP, is eliminated in consolidation. Genpar has no liabilities. | |||||||||||||||||
Royalty Trusts. SandRidge owns beneficial interests in three Delaware statutory trusts. SandRidge Mississippian Trust I (the “Mississippian Trust I”), the Permian Trust and the Mississippian Trust II (each individually, a “Royalty Trust” and collectively, the “Royalty Trusts”) completed initial public offerings of their common units in April 2011, August 2011 and April 2012, respectively. Concurrent with the closing of each offering, the Company conveyed certain royalty interests to each Royalty Trust in exchange for the net proceeds of the offering and units representing beneficial interests in the Royalty Trust. Royalty interests conveyed to the Royalty Trusts are in certain existing wells and wells to be drilled on oil and natural gas properties leased by the Company in defined areas of mutual interest. The following table summarizes information about each Royalty Trust upon completion of its initial public offering: | |||||||||||||||||
Mississippian Trust I | Permian Trust | Mississippian Trust II | |||||||||||||||
Net proceeds of offering (in millions) | $ | 336.9 | $ | 580.6 | $ | 587.1 | |||||||||||
Total outstanding common units | 21,000,000 | 39,375,000 | 37,293,750 | ||||||||||||||
Total outstanding subordinated units | 7,000,000 | 13,125,000 | 12,431,250 | ||||||||||||||
Beneficial interest owned by Company(1) | 38.4 | % | 34.3 | % | 39.9 | % | |||||||||||
Liquidation date(2) | 12/31/30 | 3/31/31 | 12/31/31 | ||||||||||||||
____________________ | |||||||||||||||||
-1 | Subsequent to the initial public offerings, the Company sold common units of the Royalty Trusts it owned in transactions exempt from registration under Rule 144 under the Securities Act. These transactions decreased the Company’s beneficial interests in the Royalty Trusts. See further discussion of the unit sales below. | ||||||||||||||||
-2 | At the time each Royalty Trust terminates, 50% of the royalty interests conveyed to the Royalty Trust will automatically revert to the Company, and the remaining 50% will be sold with the proceeds distributed to the Royalty Trust unitholders. | ||||||||||||||||
The Royalty Trusts make quarterly cash distributions to unitholders based on calculated distributable income. In order to provide support for cash distributions on the common units, the Company agreed to subordinate a portion of the units it owns in each Royalty Trust (the “subordinated units”), which constitute 25% of the total outstanding units of each Royalty Trust. The subordinated units are entitled to receive pro rata distributions from the Royalty Trusts each quarter if and to the extent there is sufficient cash to provide a cash distribution on the common units that is no less than the applicable quarterly subordination threshold. If there is not sufficient cash to fund such a distribution on all common units, the distribution to be made with respect to the subordinated units will be reduced or eliminated for such quarter in order to make a distribution, to the extent possible, of up to the subordination threshold amount on all common units, including common units held by the Company. In exchange for agreeing to subordinate a portion of its Royalty Trust units, SandRidge is entitled to receive incentive distributions equal to 50% of the amount by which the cash available for distribution on all of the Royalty Trust units exceeds the applicable quarterly incentive threshold. | |||||||||||||||||
The Royalty Trusts declared and paid quarterly distributions during the three and nine-month periods ended September 30, 2013 and 2012 as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013(1) | 2012 | 2013(1) | 2012(2) | ||||||||||||||
Total distributions | $ | 81,594 | $ | 75,246 | $ | 226,404 | $ | 193,262 | |||||||||
Distributions to third-party unitholders | $ | 54,287 | $ | 50,222 | $ | 153,002 | $ | 127,023 | |||||||||
____________________ | |||||||||||||||||
-1 | Subordination thresholds were not met for the Mississippian Trust I’s second and third quarter 2013 distributions and for the Permian Trust’s second quarter 2013 distribution, resulting in reduced distributions to the Company on its subordinated units for these periods. | ||||||||||||||||
-2 | The Company received incentive distributions from the Mississippian Trust I during the nine-month period ended September 30, 2012. | ||||||||||||||||
See Note 19 for discussion of the Royalty Trusts’ distributions announced in October 2013. | |||||||||||||||||
Pursuant to the trust agreements governing the Royalty Trusts, SandRidge has a loan commitment to each Royalty Trust, whereby SandRidge will loan funds to the Royalty Trust on an unsecured basis, with terms substantially the same as would be obtained in an arm’s length transaction between SandRidge and an unaffiliated party, if at any time the Royalty Trust’s cash is not sufficient to pay ordinary course administrative expenses as they become due. Any funds loaned may not be used to satisfy indebtedness of the Royalty Trust or to make distributions. There were no amounts outstanding under the loan commitments at September 30, 2013 or December 31, 2012. | |||||||||||||||||
The Company and one of its wholly owned subsidiaries entered into a development agreement with each Royalty Trust that obligates the Company to drill, or cause to be drilled, a specified number of wells within respective areas of mutual interest, which are also subject to the royalty interests granted to the Mississippian Trust I, the Permian Trust and the Mississippian Trust II, by December 31, 2015, March 31, 2016 and December 31, 2016, respectively. At the end of the fourth full calendar quarter following satisfaction of the Company’s drilling obligation (the “subordination period”), the subordinated units of each Royalty Trust will automatically convert into common units on a one-for-one basis and the Company’s right to receive incentive distributions will terminate. One of the Company’s wholly owned subsidiaries also granted to each Royalty Trust a lien on the Company’s interests in the properties where the development wells will be drilled in order to secure the estimated amount of drilling costs for the Royalty Trust’s interests in the wells. As the Company fulfills its drilling obligation to each Royalty Trust, development wells that have been drilled and perforated for completion are released from the lien and the total amount that may be recovered by each Royalty Trust is proportionately reduced. In the second quarter of 2013, the Company fulfilled its drilling obligation to the Mississippian Trust I. As of September 30, 2013, the total maximum amount recoverable by the Permian Trust and the Mississippian Trust II under the remaining liens was approximately $167.8 million. | |||||||||||||||||
Additionally, the Company and each Royalty Trust entered into an administrative services agreement, pursuant to which the Company provides certain administrative services to the Royalty Trust, including hedge management services to the Permian Trust and the Mississippian Trust II. The Company also entered into derivatives agreements with each Royalty Trust, pursuant to which the Company provides to the Royalty Trust the economic effects of certain of the Company’s derivative contracts. Substantially concurrent with the execution of the derivatives agreements with the Permian Trust and the Mississippian Trust II, the Company novated certain of the derivative contracts underlying the respective derivatives agreements to the Permian Trust and the Mississippian Trust II. The Company novated certain additional derivative contracts underlying the derivatives agreements to the Permian Trust in April 2012 and to the Permian Trust and the Mississippian Trust II in March 2013. The tables below present the open oil and natural gas commodity derivative contracts at September 30, 2013 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 Derivatives Agreements | |||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||
Fixed Price | |||||||||||||||||
October 2013 - December 2013 | 413 | $ | 103.04 | ||||||||||||||
January 2014 - December 2014 | 1,862 | $ | 100.7 | ||||||||||||||
January 2015 - December 2015 | 630 | $ | 101.03 | ||||||||||||||
Natural Gas Collars Underlying the Derivatives Agreements | |||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||
October 2013 - December 2013 | 216 | $ | 4 | — | $ | 7.15 | |||||||||||
January 2014 - December 2014 | 937 | $ | 4 | — | $ | 7.78 | |||||||||||
January 2015 - December 2015 | 1,010 | $ | 4 | — | $ | 8.55 | |||||||||||
Oil Price Swaps Underlying the Derivatives Agreements and Novated to the Royalty Trusts | |||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||
Fixed Price | |||||||||||||||||
October 2013 - December 2013 | 302 | $ | 103.27 | ||||||||||||||
January 2014 - December 2014 | 991 | $ | 100.79 | ||||||||||||||
January 2015 - March 2015 | 141 | $ | 100.9 | ||||||||||||||
See Note 9 for further discussion of the derivatives agreement between the Company and each Royalty Trust. | |||||||||||||||||
The Royalty Trusts are considered VIEs due to the lack of voting or similar decision-making rights of the Royalty Trusts’ equity holders regarding activities that have a significant effect on the economic success of the Royalty Trusts. The Company has determined it is the primary beneficiary of the Royalty Trusts as it has (a) the power to direct the activities that most significantly impact the economic performance of the Royalty Trusts through (i) its participation in the creation and structure of the Royalty Trusts, (ii) the manner in which it fulfills its drilling obligations to the Royalty Trusts and (iii) its operation of a majority of the oil and natural gas properties that are subject to the conveyed royalty interests and marketing of the associated production, and (b) the obligation to absorb losses and right to receive residual returns, through its variable interests in the Royalty Trusts, including ownership of common and subordinated units, that could potentially be significant to the Royalty Trusts. As a result, the Company began consolidating the activities of the Royalty Trusts into its results of operations upon conveyance of the royalty interests to each Royalty Trust. The common units of the Royalty Trusts owned by third parties are reflected as noncontrolling interest in the consolidated financial statements. | |||||||||||||||||
As noted above, the Company fulfilled its drilling obligation to the Mississippian Trust I in the second quarter of 2013. Accordingly, the Mississippian Trust I's subordinated units, all of which are held by SandRidge, will convert to common units at the end of the subordination period. The Company is currently assessing the impact of the conversion on its status as the primary beneficiary of the Mississippian Trust I. | |||||||||||||||||
Each Royalty Trust’s assets can be used to settle only that Royalty Trust’s obligations and not other obligations of the Company or another Royalty Trust. The Royalty Trusts’ creditors have no contractual recourse to the general credit of the Company. Although the Royalty Trusts are included in the Company’s consolidated financial statements, the Company’s legal interest in the Royalty Trusts’ assets is limited to its ownership of the Royalty Trusts’ units. At September 30, 2013 and December 31, 2012, $1.4 billion and $1.5 billion, respectively, of noncontrolling interest in the accompanying condensed consolidated balance sheets were attributable to the Royalty Trusts. The Royalty Trusts’ assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheets at September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cash and cash equivalents(1) | $ | 8,816 | $ | 7,445 | |||||||||||||
Accounts receivable, net | 25,518 | 28,596 | |||||||||||||||
Derivative contracts | 3,776 | 10,286 | |||||||||||||||
Total current assets | 38,110 | 46,327 | |||||||||||||||
Investment in royalty interests(2) | 1,325,942 | 1,325,942 | |||||||||||||||
Less: accumulated depletion | (168,569 | ) | (103,746 | ) | |||||||||||||
1,157,373 | 1,222,196 | ||||||||||||||||
Derivative contracts | 3,389 | 7,660 | |||||||||||||||
Total assets | $ | 1,198,872 | $ | 1,276,183 | |||||||||||||
Accounts payable and accrued expenses | $ | 3,788 | $ | 1,101 | |||||||||||||
Total liabilities | $ | 3,788 | $ | 1,101 | |||||||||||||
____________________ | |||||||||||||||||
-1 | Includes $3.0 million held by the trustee at September 30, 2013 and December 31, 2012 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, and was determined by allocating the historical net book value of the Company’s full cost pool based on the fair value of each Royalty Trust’s royalty interests relative to the fair value of the Company’s full cost pool. | ||||||||||||||||
During 2012 and 2013, the Company sold Royalty Trust common units it owned in transactions exempt from registration pursuant to Rule 144 under the Securities Act, which further reduced its beneficial interest. Total proceeds from such transactions were $29.0 million for the three and nine-month periods ended September 30, 2013 and $123.5 million for the nine-month period ended September 30, 2012. The unit sales were accounted for as equity transactions with no gain or loss recognized. The Company continues to be the primary beneficiary of the Royalty Trusts, after consideration of these transactions, as discussed above, and accordingly, continues to consolidate the activities of the Royalty Trusts during the subordination period. The Company’s beneficial interests in the Royalty Trusts at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Mississippian Trust I | 26.9 | % | 26.9 | % | |||||||||||||
Permian Trust | 28.5 | % | 30.5 | % | |||||||||||||
Mississippian Trust II | 37.6 | % | 39.9 | % | |||||||||||||
See Note 11 for discussion of the Company’s legal proceedings to which the Mississippian Trust I and Mississippian Trust II are also parties. | |||||||||||||||||
Piñon Gathering Company, LLC. The Company has a gas gathering and operations and maintenance agreement with Piñon Gathering Company, LLC (“PGC”) through June 30, 2029. Under the gas gathering agreement, the Company is required to compensate PGC for any throughput shortfalls below a required minimum volume. By guaranteeing a minimum throughput, the Company absorbs the risk that lower than projected volumes will be gathered by the gathering system. Therefore, PGC is a VIE. Other than as required under the gas gathering and operations and maintenance agreements, the Company has not provided any support to PGC. While the Company operates the assets of PGC as directed under the operations and management agreement, the member and managers of PGC have the authority to directly control PGC and make substantive decisions regarding PGC’s activities including terminating the Company as operator without cause. As the Company does not have the ability to control the activities of PGC that most significantly impact PGC’s economic performance, the Company is not the primary beneficiary of PGC. Therefore, the results of PGC’s activities are not consolidated into the Company’s financial statements. | |||||||||||||||||
Amounts due from and due to PGC as of September 30, 2013 and December 31, 2012 included in the accompanying unaudited condensed consolidated balance sheets are as follows (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable due from PGC | $ | 1,496 | $ | 1,976 | |||||||||||||
Accounts payable due to PGC | $ | 4,249 | $ | 5,053 | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
The Company measures and reports certain assets and liabilities on a fair value basis and has classified and disclosed its fair value measurements using the following levels of the fair value hierarchy: | ||||||||||||||||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||||||||
Level 2 | Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. | |||||||||||||||||||
Level 3 | Measurement based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable for objective sources (i.e., supported by little or no market activity). | |||||||||||||||||||
Assets and liabilities that are measured at fair value are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values, stated below, considers the market for the Company’s financial assets and liabilities, the associated credit risk and other factors. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The Company has assets and liabilities classified in each level of the hierarchy as of September 30, 2013 or December 31, 2012, as described below. | ||||||||||||||||||||
Level 1 Fair Value Measurements | ||||||||||||||||||||
Restricted deposits. The fair value of restricted deposits invested in mutual funds or municipal bonds is based on quoted market prices. For restricted deposits held in savings accounts, carrying value approximates fair value. Restricted deposits are included in other assets in the accompanying unaudited condensed consolidated balance sheets. | ||||||||||||||||||||
Investments. The fair value of investments, consisting of assets attributable to the Company’s non-qualified deferred compensation plan, is based on quoted market prices. Investments are included in other assets in the accompanying unaudited condensed consolidated balance sheets. | ||||||||||||||||||||
Level 2 Fair Value Measurements | ||||||||||||||||||||
Derivative contracts. The fair values of the Company’s oil and natural gas fixed price swaps, oil and natural gas collars and interest rate swap are based upon inputs that are either readily available in the public market, such as oil and natural gas futures prices, volatility factors, interest rates and discount rates, or can be corroborated from active markets. Fair value is determined through the use of a discounted cash flow model or option pricing model using the applicable inputs, discussed above. The Company applies a weighted average credit default risk rating factor for its counterparties or gives effect to its credit default risk rating, as applicable, in determining the fair value of these derivative contracts. Credit default risk ratings are based on current published credit default swap rates. | ||||||||||||||||||||
Level 3 Fair Value Measurements | ||||||||||||||||||||
Derivative contracts. The fair value of the Company’s oil basis swaps outstanding at December 31, 2012 was based upon quotes obtained from counterparties to the derivative contracts. These values were reviewed internally for reasonableness through the use of a discounted cash flow model using non-exchange traded regional pricing information. Additionally, the Company applied a weighted average credit default risk rating factor for its counterparties or gave effect to its credit risk, as applicable, in determining the fair value of these derivative contracts. The significant unobservable input used in the fair value measurement of the Company’s oil basis swaps was the estimate of future oil basis differentials. Significant increases (decreases) in oil basis differentials could result in a significantly higher (lower) fair value measurement. The significant unobservable inputs and the range and weighted average of these inputs used in the fair value measurements of the Company’s oil basis swaps at December 31, 2012 are included in the table below. All of the outstanding oil basis swaps at December 31, 2012 contractually matured prior to June 30, 2013. | ||||||||||||||||||||
Unobservable Input | Range | Weighted Average | Fair Value | |||||||||||||||||
(price per Bbl) | (price per Bbl) | (in thousands) | ||||||||||||||||||
Oil basis differential forward curve | $10.00 | – | $21.98 | $14.74 | $ | (512 | ) | |||||||||||||
The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy (in thousands): | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Fair Value Measurements | Netting(1) | Assets/Liabilities at Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Restricted deposits | $ | 27,952 | $ | — | $ | — | $ | — | $ | 27,952 | ||||||||||
Commodity derivative contracts | — | 58,086 | — | (34,302 | ) | 23,784 | ||||||||||||||
Investments | 14,139 | — | — | — | 14,139 | |||||||||||||||
$ | 42,091 | $ | 58,086 | $ | — | $ | (34,302 | ) | $ | 65,875 | ||||||||||
Liabilities | ||||||||||||||||||||
Commodity derivative contracts | $ | — | $ | 95,315 | $ | — | $ | (34,302 | ) | $ | 61,013 | |||||||||
$ | — | $ | 95,315 | $ | — | $ | (34,302 | ) | $ | 61,013 | ||||||||||
December 31, 2012 | ||||||||||||||||||||
Fair Value Measurements | Netting(1) | Assets/Liabilities at Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Restricted deposits | $ | 27,947 | $ | — | $ | — | $ | — | $ | 27,947 | ||||||||||
Commodity derivative contracts | — | 130,220 | 183 | (35,764 | ) | 94,639 | ||||||||||||||
Investments | 10,348 | — | — | — | 10,348 | |||||||||||||||
$ | 38,295 | $ | 130,220 | $ | 183 | $ | (35,764 | ) | $ | 132,934 | ||||||||||
Liabilities | ||||||||||||||||||||
Commodity derivative contracts | $ | — | $ | 107,321 | $ | 695 | $ | (35,764 | ) | $ | 72,252 | |||||||||
Interest rate swap | — | 2,395 | — | — | 2,395 | |||||||||||||||
$ | — | $ | 109,716 | $ | 695 | $ | (35,764 | ) | $ | 74,647 | ||||||||||
____________________ | ||||||||||||||||||||
(1)Represents the impact of netting assets and liabilities with counterparties with which the right of offset exists. | ||||||||||||||||||||
The table below sets forth a reconciliation of the Company’s commodity derivative contracts measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three-month period ended September 30, 2012 and nine-month periods ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2012 | 2013 | 2012 | ||||||||||||||||||
Beginning balance of Level 3 | $ | 5,013 | $ | (512 | ) | $ | (4,253 | ) | ||||||||||||
Loss on derivative contracts | (4,261 | ) | (133 | ) | (3,872 | ) | ||||||||||||||
Purchases | — | — | 5,697 | |||||||||||||||||
Settlements (received) paid | (569 | ) | 645 | 2,611 | ||||||||||||||||
Ending balance of Level 3 | $ | 183 | $ | — | $ | 183 | ||||||||||||||
The Company’s policy is to recognize transfers between fair value hierarchy levels as of the end of the quarterly reporting period in which the event or change in circumstances causing the transfer occurred. During the three and nine-month periods ended September 30, 2013 and 2012, the Company did not have any transfers between levels. | ||||||||||||||||||||
(Gains) losses due to changes in fair value of the Company’s Level 3 commodity derivative contracts outstanding at September 30, 2012 were $(4.8) million and $2.2 million for the three and nine-month periods ended September 30, 2012, respectively. These amounts have been included in loss (gain) on derivative contracts in the accompanying unaudited condensed consolidated statements of operations. There were no outstanding Level 3 commodity derivative contracts at September 30, 2013. | ||||||||||||||||||||
See Note 9 for further discussion of the Company’s derivative contracts. | ||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||
The Company measures the fair value of its senior notes using pricing for the Company’s senior notes that is readily available in the public market. The Company classifies these inputs as Level 2 in the fair value hierarchy. The estimated fair values and carrying values of the Company’s senior notes at September 30, 2013 and December 31, 2012 were as follows (in thousands): | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||||||
9.875% Senior Notes due 2016(1) | $ | — | $ | — | $ | 392,913 | $ | 356,657 | ||||||||||||
8.0% Senior Notes due 2018 | — | — | 790,313 | 750,000 | ||||||||||||||||
8.75% Senior Notes due 2020(2) | 477,000 | 444,580 | 490,500 | 444,127 | ||||||||||||||||
7.5% Senior Notes due 2021(3) | 1,198,500 | 1,179,027 | 1,257,250 | 1,179,328 | ||||||||||||||||
8.125% Senior Notes due 2022 | 766,875 | 750,000 | 823,125 | 750,000 | ||||||||||||||||
7.5% Senior Notes due 2023(4) | 829,125 | 821,177 | 882,750 | 820,971 | ||||||||||||||||
____________________ | ||||||||||||||||||||
(1)Carrying value is net of $8,843 discount at December 31, 2012. | ||||||||||||||||||||
(2)Carrying value is net of $5,420 and $5,873 discount at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
(3)Carrying value includes a premium, applicable to notes issued in August 2012, of $4,027 and $4,328 at | ||||||||||||||||||||
September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
(4)Carrying value is net of $3,823 and $4,029 discount at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
See Note 8 for discussion of the Company’s long-term debt, including the redemption of all of the outstanding 9.875% Senior Notes due 2016 and 8.0% Senior Notes due 2018 in March 2013. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
Property, Plant and Equipment | ||||||||
Property, plant and equipment consists of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Oil and natural gas properties | ||||||||
Proved(1) | $ | 10,663,810 | $ | 12,262,921 | ||||
Unproved | 529,032 | 865,863 | ||||||
Total oil and natural gas properties | 11,192,842 | 13,128,784 | ||||||
Less accumulated depreciation, depletion and impairment | (5,643,158 | ) | (5,231,182 | ) | ||||
Net oil and natural gas properties capitalized costs | 5,549,684 | 7,897,602 | ||||||
Land | 18,423 | 17,927 | ||||||
Non-oil and natural gas equipment(2) | 610,740 | 643,370 | ||||||
Buildings and structures(3) | 230,508 | 205,349 | ||||||
Total | 859,671 | 866,646 | ||||||
Less accumulated depreciation and amortization | (283,281 | ) | (284,271 | ) | ||||
Other property, plant and equipment, net | 576,390 | 582,375 | ||||||
Total property, plant and equipment, net | $ | 6,126,074 | $ | 8,479,977 | ||||
____________________ | ||||||||
-1 | Includes cumulative capitalized interest of approximately $20.7 million and $11.7 million at September 30, 2013 and December 31, 2012, respectively. | |||||||
-2 | Includes cumulative capitalized interest of approximately $4.3 million at both September 30, 2013 and December 31, 2012. | |||||||
-3 | Includes cumulative capitalized interest of approximately $10.7 million and $7.1 million at September 30, 2013 and December 31, 2012, respectively. | |||||||
During the second and third quarters of 2013, the Company committed to plans to sell various drilling and corporate assets. These assets are included in other current assets in the accompanying unaudited condensed consolidated balance sheet at September 30, 2013 as the Company intends to sell the assets within a year. The net book value of the drilling assets was adjusted to fair value, resulting in impairments of $0.5 million and $11.1 million during the three and nine-month periods ended September 30, 2013, respectively, and a combined remaining net book value of $6.2 million at September 30, 2013. Fair value for the drilling assets was estimated based on the most recent offers received from third parties with consideration of current market conditions. Based on the limited market activity for a majority of these assets, the valuation is considered Level 3 under the fair value hierarchy, as described in Note 4. The net book value of the corporate asset was adjusted to fair value, resulting in an impairment of $2.9 million during the nine-month period ended September 30, 2013 and remaining net book value of $17.0 million. The fair value of the corporate asset was based on a current offer from a third-party purchaser, which is considered a Level 3 input. | ||||||||
In the second and third quarters of 2013, the Company evaluated certain midstream pipe inventory, natural gas compressors and a compressor station for impairment after determining that their future use was limited. As a result of these evaluations, the Company recorded impairments of $0.2 million and $2.3 million during the three and nine-month periods ended September 30, 2013, respectively, on these assets to reduce their carrying value to market value. |
Other_Assets
Other Assets | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other Assets | ||||||||
Other assets consist of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Debt issuance costs, net of amortization | $ | 64,283 | $ | 83,643 | ||||
Restricted deposits | 27,952 | 27,947 | ||||||
Notes receivable on asset retirement obligations | 11,655 | 11,433 | ||||||
Investments | 14,139 | 10,348 | ||||||
Other | 6,601 | 10,881 | ||||||
Total other assets | $ | 124,630 | $ | 144,252 | ||||
Construction_Contracts
Construction Contracts | 9 Months Ended |
Sep. 30, 2013 | |
Contractors [Abstract] | ' |
Construction Contracts | ' |
Construction Contracts | |
Century Plant. As of December 31, 2012, the Company had substantially completed construction of a carbon dioxide (“CO2”) treatment plant in Pecos County, Texas (the “Century Plant”), and associated compression and pipeline facilities pursuant to an agreement with Occidental Petroleum Corporation (“Occidental”). The Company constructed the Century Plant for a contract price of $796.3 million, which included agreed upon change orders and scope revisions, that Occidental paid to the Company through periodic cost reimbursements based upon the percentage of the project completed. Upon substantial completion of construction in late 2012, Occidental took ownership and began operating the Century Plant for the purpose of separating and removing CO2 from the delivered natural gas stream. The Company recorded additions totaling $180.0 million to its oil and natural gas properties for costs incurred in excess of contract amounts during the construction period. Costs in excess of billings and contract loss of $4.0 million at September 30, 2013, representing costs incurred in the final stages of construction, are reported as a current asset in the accompanying unaudited condensed consolidated balance sheet. Billings and contract loss in excess of costs incurred of $15.5 million at December 31, 2012 are reported as a current liability in the accompanying unaudited condensed consolidated balance sheet. | |
Pursuant to a 30-year treating agreement executed simultaneously with the construction agreement, Occidental will remove CO2 from the Company’s delivered natural gas production volumes. Under this agreement, the Company is required to deliver certain minimum CO2 volumes annually and is required to compensate Occidental to the extent such requirements are not met. See Note 11 for additional discussion of the treating agreement. The Company retains all methane gas from the natural gas it delivers to the Century Plant. | |
Transmission Expansion Projects. In the second quarter of 2013, the Company substantially completed the construction of a series of electrical transmission expansion and upgrade projects in northern Oklahoma for a third party. The Company constructed these projects for a contract price of $23.3 million, which included agreed upon change orders. Upon substantial completion of the contract, the Company recognized construction contract revenue and costs equal to the revised contract price of $23.3 million, which are included in the accompanying unaudited condensed consolidated statement of operations for the nine-month period ended September 30, 2013. Costs in excess of billings on these projects of approximately $2.3 million, representing costs incurred in the final stages of construction, and $11.2 million at September 30, 2013 and December 31, 2012, respectively, are included in current assets in the accompanying unaudited condensed consolidated balance sheets. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ||||||||
Long-term debt consists of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Senior credit facility | $ | — | $ | — | ||||
Senior notes | ||||||||
9.875% Senior Notes due 2016, net of $8,843 discount at December 31, 2012 | — | 356,657 | ||||||
8.0% Senior Notes due 2018 | — | 750,000 | ||||||
8.75% Senior Notes due 2020, net of $5,420 and $5,873 discount, respectively | 444,580 | 444,127 | ||||||
7.5% Senior Notes due 2021, including a premium of $4,027 and $4,328, respectively | 1,179,027 | 1,179,328 | ||||||
8.125% Senior Notes due 2022 | 750,000 | 750,000 | ||||||
7.5% Senior Notes due 2023, net of $3,823 and $4,029 discount, respectively | 821,177 | 820,971 | ||||||
Total debt | 3,194,784 | 4,301,083 | ||||||
Less: current maturities of long-term debt | — | — | ||||||
Long-term debt | $ | 3,194,784 | $ | 4,301,083 | ||||
Senior Credit Facility | ||||||||
The senior credit facility is available to be drawn on subject to limitations based on its terms and certain financial covenants, as described below. As of September 30, 2013, the senior credit facility contained financial covenants, including maintenance of agreed upon levels for the (i) ratio of total net debt to EBITDA, which may not exceed 4.5:1.0 at each quarter end, calculated using the last four completed fiscal quarters and (ii) ratio of current assets to current liabilities, which must be at least 1.0:1.0 at each quarter end. If no amounts are drawn under the senior credit facility when calculating the ratio of total net debt to EBITDA, the Company’s debt is reduced by its cash balance in excess of $10.0 million. In the current ratio calculation, any amounts available to be drawn under the senior credit facility are included in current assets, and unrealized assets and liabilities resulting from mark-to-market adjustments on the Company’s derivative contracts are disregarded. The senior credit facility matures in March 2017. | ||||||||
The senior credit facility also contains various covenants that limit the ability of the Company and certain of its subsidiaries to: grant certain liens; make certain loans and investments; make distributions; redeem stock; redeem or prepay debt; merge or consolidate with or into a third party; or engage in certain asset dispositions, including a sale of all or substantially all of the Company’s assets. Additionally, the senior credit facility limits the ability of the Company and certain of its subsidiaries to incur additional indebtedness with certain exceptions. As of and during the three and nine-month periods ended September 30, 2013, the Company was in compliance with all applicable financial covenants under the senior credit facility. | ||||||||
The obligations under the senior credit facility are guaranteed by certain Company subsidiaries and are secured by first priority liens on all shares of capital stock of certain of the Company’s material present and future subsidiaries, certain intercompany debt of the Company, and substantially all of the Company’s assets, including proved oil and natural gas reserves representing at least 80.0% of the discounted present value (as defined in the senior credit facility) of proved oil and natural gas reserves considered by the lenders in determining the borrowing base for the senior credit facility. | ||||||||
At the Company’s election, interest under the senior credit facility is determined by reference to (a) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin between 1.75% and 2.75% per annum or (b) the “base rate,” which is the highest of (i) the federal funds rate plus 0.5%, (ii) the prime rate published by Bank of America or (iii) the Eurodollar rate (as defined in the senior credit facility) plus 1.00% per annum, plus, in each case under scenario (b), an applicable margin between 0.75% and 1.75% per annum. Interest is payable quarterly for base rate loans and at the applicable maturity date for LIBOR loans, except that if the interest period for a LIBOR loan is six months, interest is paid at the end of each three-month period. Quarterly, the Company pays a commitment fee assessed at an annual rate of 0.5% on any available portion of the senior credit facility. | ||||||||
Borrowings under the senior credit facility may not exceed the lower of the borrowing base or the committed amount. In August 2012, the borrowing base was reduced to $775.0 million from $1.0 billion as a result of the issuance of the 7.5% Senior Notes due 2023 and additional 7.5% Senior Notes due 2021, as discussed below. The Company’s borrowing base was reaffirmed at $775.0 million in October 2013, and the next redetermination will take place in April 2014. With respect to each redetermination, the administrative agent and the lenders under the senior credit facility consider several factors, including the Company’s proved reserves and projected cash requirements, and make assumptions regarding, among other things, oil and natural gas prices and production. Because the value of the Company’s proved reserves is a key factor in determining the amount of the borrowing base, changing commodity prices and the Company’s success in developing reserves may affect the borrowing base. | ||||||||
At September 30, 2013, the Company had no amount outstanding under the senior credit facility and $27.6 million in outstanding letters of credit, which reduce the availability under the senior credit facility on a dollar-for-dollar basis. | ||||||||
Senior Fixed Rate Notes | ||||||||
The Company’s unsecured senior fixed rate notes (“Senior Fixed Rate Notes”) bear interest at a fixed rate per annum, payable semi-annually, with the principal due upon maturity. Certain of the Senior Fixed Rate Notes were issued at a discount or a premium. The discount or premium is amortized to interest expense over the term of the respective series of Senior Fixed Rate Notes. The Senior Fixed Rate Notes are redeemable, in whole or in part, prior to their maturity at specified redemption prices and are jointly and severally guaranteed unconditionally, in full, on an unsecured basis by certain of the Company’s wholly owned subsidiaries. See Note 18 for condensed financial information of the subsidiary guarantors. | ||||||||
Debt issuance costs of $70.2 million incurred in connection with the offerings and subsequent registered exchange offers of the Senior Fixed Rate Notes outstanding at September 30, 2013 are included in other assets in the accompanying unaudited condensed consolidated balance sheets and are being amortized to interest expense over the term of the respective series of Senior Fixed Rate Notes. | ||||||||
2013 Activity. In March 2013, the Company redeemed the outstanding $365.5 million aggregate principal amount of its 9.875% Senior Notes due 2016 and the outstanding $750.0 million aggregate principal amount of its 8.0% Senior Notes due 2018 for total consideration of $1,061.34 per $1,000 principal amount and $1,052.77 per $1,000 principal amount, respectively. The premium paid to redeem these notes and the expense incurred to write off the remaining associated unamortized debt issuance costs, totaling $82.0 million, were recorded as a loss on extinguishment of debt in the accompanying unaudited condensed consolidated statement of operations for the nine-month period ended September 30, 2013. | ||||||||
2012 Activity. In 2012, the Company completed offerings of the 8.125% Senior Notes due 2022, additional 7.5% Senior Notes due 2021 and 7.5% Senior Notes due 2023 (collectively, the “2012 Senior Notes”) to qualified institutional buyers eligible under Rule 144A of the Securities Act and to persons outside the United States under Regulation S of the Securities Act. The Company incurred $41.0 million of debt issuance costs in connection with the 2012 Senior Notes offerings and subsequent registered exchange offers. | ||||||||
In April 2012, the Company issued $750.0 million of unsecured 8.125% Senior Notes due 2022. Net proceeds from the offering were approximately $730.1 million after deducting offering expenses, and were used to finance the cash portion of the Dynamic Acquisition purchase price and to pay related fees and expenses, with any remaining amount used for general corporate purposes. | ||||||||
In August 2012, the Company issued $825.0 million of unsecured 7.5% Senior Notes due 2023 at 99.5% of par and $275.0 million of additional unsecured 7.5% Senior Notes due 2021 at 101.625% of par, plus accrued interest from March 15, 2012. The Company received net proceeds from this offering of approximately $1.1 billion, after deducting offering expenses and excluding accrued interest received. The net proceeds of the offering were used to fund the Company’s tender offer for, and subsequent redemption of, its Senior Floating Rate Notes due 2014 (the “Senior Floating Rate Notes”), discussed under Senior Floating Rate Notes due 2014 below, to fund the Company’s capital expenditures and for general corporate purposes. | ||||||||
In November 2012, pursuant to registered exchange offers, the Company replaced the initial 2012 Senior Notes with equivalent 2012 Senior Notes that are registered under the Securities Act. The exchange offers did not result in the incurrence of any additional indebtedness. | ||||||||
Indentures. Each of the indentures governing the Company’s Senior Fixed Rate Notes contains covenants that restrict the Company’s ability to take a variety of actions, including limitations on the incurrence of indebtedness, payment of dividends, investments, asset sales, certain asset purchases, transactions with related parties and consolidations or mergers. As of and during the three and nine-month periods ended September 30, 2013, the Company was in compliance with all of the covenants contained in the indentures governing its outstanding Senior Fixed Rate Notes. | ||||||||
Senior Floating Rate Notes Due 2014 | ||||||||
In the third quarter of 2012, the Company purchased 100%, or $350.0 million of the outstanding aggregate principal amount of its Senior Floating Rate Notes. All holders whose notes were purchased in the Company’s tender offer or upon redemption received accrued and unpaid interest from July 1, 2012 through the date of purchase. The Senior Floating Rate Notes were issued in May 2008 and bore interest at LIBOR plus 3.625% prior to their retirement. |
Derivatives
Derivatives | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Derivatives | ' | ||||||||||||||||||||
Derivatives | |||||||||||||||||||||
The Company has not designated any of its derivative contracts as hedges for accounting purposes. The Company records all derivative contracts at fair value. Changes in derivative contract fair values are recognized in earnings. Cash settlements and valuation gains and losses are included in loss (gain) on derivative contracts for commodity derivative contracts and in interest expense for interest rate swaps in the accompanying unaudited condensed consolidated statements of operations. Commodity derivative contracts are settled on a monthly or quarterly basis. Settlements on interest rate swaps occur quarterly. Derivative assets and liabilities arising from the Company’s derivative contracts with the same counterparty that provide for net settlement are reported on a net basis in the condensed consolidated balance sheet. | |||||||||||||||||||||
Commodity Derivatives. The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil and natural gas. The Company seeks to manage this risk through the use of commodity derivative contracts. These derivative contracts allow the Company to limit its exposure to commodity price volatility on a portion of its forecasted oil and natural gas sales. None of the Company’s derivative contracts may be terminated prior to contractual maturity solely as a result of a downgrade in the credit rating of a party to the contract. At September 30, 2013, the Company’s commodity derivative contracts consisted of fixed price swaps and collars, which are described below: | |||||||||||||||||||||
Fixed price swaps | The Company receives a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume. | ||||||||||||||||||||
Collars | Two-way collars contain a fixed floor price (put) and a fixed ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, the Company receives the fixed price and pays the market price. If the market price is between the call and the put strike price, no payments are due from either party. | ||||||||||||||||||||
Three-way collars have two fixed floor prices (a purchased put and a sold put) and a fixed ceiling price (call). The purchased put establishes a minimum price unless the market price falls below the sold put, at which point the minimum price would be New York Mercantile Exchange (“NYMEX”) plus the difference between the purchased put and the sold put strike price. The call establishes a maximum price (ceiling) the Company will receive for the volumes under the contract. | |||||||||||||||||||||
Interest Rate Swaps. The Company is exposed to interest rate risk on its long-term fixed and variable interest rate borrowings. Fixed rate debt, where the interest rate is fixed over the life of the instrument, exposes the Company to (i) changes in market interest rates reflected in the fair value of the debt and (ii) the risk that the Company may need to refinance maturing debt with new debt at a higher rate. Variable rate debt, where the interest rate fluctuates, exposes the Company to short-term changes in market interest rates as the Company’s interest obligations on these instruments are periodically redetermined based on prevailing market interest rates, primarily LIBOR and the federal funds rate. | |||||||||||||||||||||
The Company had a $350.0 million notional interest rate swap agreement which effectively fixed the variable interest rate on the Senior Floating Rate Notes at an annual rate of 6.69% for periods prior to the Company’s purchase and redemption of the Senior Floating Rate Notes in the third quarter of 2012. The interest rate swap, which was not designated as a hedge, matured on April 1, 2013. | |||||||||||||||||||||
Derivatives Agreements with Royalty Trusts. Effective April 1, 2011, August 1, 2011 and April 1, 2012, the Company entered into derivatives agreements with the Mississippian Trust I, Permian Trust and Mississippian Trust II, respectively, to provide each Royalty Trust with the economic effect of certain oil and natural gas derivative contracts entered into by the Company with third parties. The underlying commodity derivative contracts cover volumes of oil and natural gas production through December 31, 2015, March 31, 2015 and December 31, 2014 for the Mississippian Trust I, Permian Trust and Mississippian Trust II, respectively. Under these arrangements, the Company pays the Royalty Trusts amounts it receives from its counterparties in accordance with the underlying contracts, and the Royalty Trusts pay the Company any amounts that the Company is required to pay its counterparties under such contracts. | |||||||||||||||||||||
Substantially concurrent with the execution of the respective derivatives agreements, the Company novated certain of the derivative contracts underlying the derivatives agreements to each of the Permian Trust and the Mississippian Trust II. As a party to these contracts, the Permian Trust and the Mississippian Trust II receive payment directly from the counterparty and pay any amounts owed directly to the counterparty. To secure its obligations under the respective derivative contracts novated to it, each of the Permian Trust and the Mississippian Trust II granted the counterparties liens on the royalty interests held by each respective Royalty Trust. Under the derivatives agreements, as development wells are drilled for the benefit of the Permian Trust and the Mississippian Trust II, the Company has the right, under certain circumstances, to assign or novate to the Permian Trust and the Mississippian Trust II additional derivative contracts. The Company novated certain additional derivative contracts underlying the derivatives agreements to the Permian Trust in April 2012 and to the Permian Trust and the Mississippian Trust II in March 2013. | |||||||||||||||||||||
All contracts underlying the derivatives agreements with the Royalty Trusts, including those novated to the Permian Trust and the Mississippian Trust II, have been included in the Company’s consolidated derivative disclosures. See Note 3 for the Royalty Trusts’ open derivative contracts. | |||||||||||||||||||||
Fair Value of Derivatives. The following table presents the fair value of the Company’s derivative contracts as of September 30, 2013 and December 31, 2012 on a gross basis without regard to same-counterparty netting (in thousands): | |||||||||||||||||||||
Type of Contract | Balance Sheet Classification | September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Derivative assets | |||||||||||||||||||||
Oil price swaps | Derivative contracts-current | $ | 14,585 | $ | 88,052 | ||||||||||||||||
Natural gas price swaps | Derivative contracts-current | 6,374 | — | ||||||||||||||||||
Oil basis swaps | Derivative contracts-current | — | 183 | ||||||||||||||||||
Natural gas collars | Derivative contracts-current | 727 | 3,111 | ||||||||||||||||||
Oil price swaps | Derivative contracts-noncurrent | 23,050 | 37,983 | ||||||||||||||||||
Oil collars - three way | Derivative contracts-noncurrent | 12,837 | 190 | ||||||||||||||||||
Natural gas collars | Derivative contracts-noncurrent | 513 | 884 | ||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||
Oil price swaps | Derivative contracts-current | (43,519 | ) | (31,991 | ) | ||||||||||||||||
Oil basis swaps | Derivative contracts-current | — | (695 | ) | |||||||||||||||||
Oil collars - two way | Derivative contracts-current | (92 | ) | (103 | ) | ||||||||||||||||
Oil collars - three way | Derivative contracts-current | (6,240 | ) | — | |||||||||||||||||
Interest rate swap | Derivative contracts-current | — | (2,395 | ) | |||||||||||||||||
Oil price swaps | Derivative contracts-noncurrent | (45,464 | ) | (67,900 | ) | ||||||||||||||||
Oil collars - three way | Derivative contracts-noncurrent | — | (7,327 | ) | |||||||||||||||||
Total net derivative contracts | $ | (37,229 | ) | $ | 19,992 | ||||||||||||||||
See Note 4 for additional discussion of the fair value measurement of the Company’s derivative contracts. | |||||||||||||||||||||
Master Netting Agreements and the Right of Offset. The Company has master netting agreements with all of its derivative counterparties, which allow the Company to present its derivative assets and liabilities with the same counterparty on a net basis in the consolidated balance sheet. As a result, the Company's maximum amount of loss under derivative transactions due to credit risk is limited to the net amounts due from its counterparties. The Company's open derivative contracts are with counterparties that share in the collateral supporting the Company's senior credit facility. As a result, the Company is not required to post additional collateral under its derivative contracts. To secure their obligations under the derivative contracts novated by the Company, the Permian Trust and the Mississippian Trust II have each given the counterparties to such contracts a lien on its royalty interests. The following tables summarize the Company's derivative contracts on a gross basis, the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements, and the applicable portion of shared collateral under the senior credit facility for SandRidge's derivative contracts and under the liens granted by the Permian Trust and the Mississippian Trust II on their royalty interest for the Royalty Trusts' novated derivative contracts associated with the Company’s net derivative liability positions (in thousands): | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Amounts Net of Offset | Financial Collateral | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||||
Derivative contracts - current | $ | 21,686 | $ | (13,380 | ) | $ | 8,306 | $ | — | $ | 8,306 | ||||||||||
Derivative contracts - noncurrent | 36,400 | (20,922 | ) | 15,478 | — | 15,478 | |||||||||||||||
Total | $ | 58,086 | $ | (34,302 | ) | $ | 23,784 | $ | — | $ | 23,784 | ||||||||||
Liabilities | |||||||||||||||||||||
Derivative contracts - current | $ | 49,851 | $ | (13,380 | ) | $ | 36,471 | $ | (36,471 | ) | $ | — | |||||||||
Derivative contracts - noncurrent | 45,464 | (20,922 | ) | 24,542 | (24,542 | ) | — | ||||||||||||||
Total | $ | 95,315 | $ | (34,302 | ) | $ | 61,013 | $ | (61,013 | ) | $ | — | |||||||||
December 31, 2012 | |||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Amounts Net of Offset | Financial Collateral | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||||
Derivative contracts - current | $ | 91,346 | $ | (20,324 | ) | $ | 71,022 | $ | — | $ | 71,022 | ||||||||||
Derivative contracts - noncurrent | 39,057 | (15,440 | ) | 23,617 | — | 23,617 | |||||||||||||||
Total | $ | 130,403 | $ | (35,764 | ) | $ | 94,639 | $ | — | $ | 94,639 | ||||||||||
Liabilities | |||||||||||||||||||||
Derivative contracts - current | $ | 35,184 | $ | (20,324 | ) | $ | 14,860 | $ | (14,860 | ) | $ | — | |||||||||
Derivative contracts - noncurrent | 75,227 | (15,440 | ) | 59,787 | (59,787 | ) | — | ||||||||||||||
Total | $ | 110,411 | $ | (35,764 | ) | $ | 74,647 | $ | (74,647 | ) | $ | — | |||||||||
The following table summarizes the cash settlements and valuation gains and losses on the Company’s commodity derivative contracts and interest rate swap, which are included in loss (gain) on derivative contracts and interest expense, respectively, in the accompanying unaudited condensed consolidated statements of operations for the three and nine-month periods ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Commodity Derivatives | |||||||||||||||||||||
Loss (gain) on settlement(1) | $ | 13,203 | $ | (28,970 | ) | $ | 11,571 | $ | 7,366 | ||||||||||||
Loss (gain) due to change in fair value | 119,605 | 222,467 | 58,480 | (229,073 | ) | ||||||||||||||||
Loss (gain) on commodity derivative contracts | $ | 132,808 | $ | 193,497 | $ | 70,051 | $ | (221,707 | ) | ||||||||||||
Interest Rate Swap | |||||||||||||||||||||
Loss on settlement | $ | — | $ | 2,330 | $ | 2,409 | $ | 6,824 | |||||||||||||
Gain due to change in fair value | — | (2,033 | ) | (2,395 | ) | (5,632 | ) | ||||||||||||||
Loss on interest rate swap | $ | — | $ | 297 | $ | 14 | $ | 1,192 | |||||||||||||
____________________ | |||||||||||||||||||||
-1 | The three-month period ended September 30, 2012 included $2.1 million of gains related to settlements of commodity derivative contracts with contractual maturities after the quarterly period in which they were settled (“early settlements”). The nine-month periods ended September 30, 2013 and 2012 included $29.3 million and $(59.5) million, respectively, of losses (gains) related to early settlements. The nine-month period ended September 30, 2012 also included $117.1 million of non-cash losses due to the amendment of derivative contracts in January 2012. | ||||||||||||||||||||
At September 30, 2013, the Company’s open commodity derivative contracts consisted of the following: | |||||||||||||||||||||
Oil Price Swaps | |||||||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
October 2013 - December 2013 | 3,494 | $ | 99.48 | ||||||||||||||||||
January 2014 - December 2014 | 8,813 | $ | 92.98 | ||||||||||||||||||
January 2015 - December 2015 | 6,614 | $ | 85.25 | ||||||||||||||||||
Natural Gas Price Swaps | |||||||||||||||||||||
Notional (MMcf) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
October 2013 - December 2013 | 12,420 | $ | 4.11 | ||||||||||||||||||
Oil Collars - Two-way | |||||||||||||||||||||
Notional (MBbls) | Collar Range | ||||||||||||||||||||
October 2013 - December 2013 | 42 | $80.00 | — | $102.50 | |||||||||||||||||
Oil Collars - Three-way | |||||||||||||||||||||
Notional (MBbls) | Sold Put | Purchased Put | Sold Call | ||||||||||||||||||
January 2014 - December 2014 | 8,213 | $70.00 | $90.20 | $100.00 | |||||||||||||||||
January 2015 - December 2015 | 2,920 | $73.13 | $90.82 | $103.13 | |||||||||||||||||
Natural Gas Collars | |||||||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||||||
October 2013 - December 2013 | 1,716 | $3.78 | — | $6.71 | |||||||||||||||||
January 2014 - December 2014 | 937 | $4.00 | — | $7.78 | |||||||||||||||||
January 2015 - December 2015 | 1,010 | $4.00 | — | $8.55 | |||||||||||||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ' | |||
Asset Retirement Obligations | ' | |||
Asset Retirement Obligations | ||||
A reconciliation of the beginning and ending aggregate carrying amounts of the asset retirement obligations for the period from December 31, 2012 to September 30, 2013 is as follows (in thousands): | ||||
Asset retirement obligations at December 31, 2012 | $ | 498,410 | ||
Liability incurred upon acquiring and drilling wells | 4,145 | |||
Revisions in estimated cash flows | (206 | ) | ||
Liability settled or disposed in current period(1) | (100,653 | ) | ||
Accretion | 28,051 | |||
Asset retirement obligations at September 30, 2013 | 429,747 | |||
Less: current portion | 71,446 | |||
Asset retirement obligations, net of current | $ | 358,301 | ||
____________________ | ||||
-1 | Liability settled or disposed during the nine-month period ended September 30, 2013 includes $22.7 million for the settlement of a plugging and abandonment obligation associated with the Company’s Bullwinkle platform in the Gulf of Mexico and $15.2 million disposed in conjunction with the sale of the Permian Properties in February 2013. Additionally, $17.1 million and $21.3 million were spent in the East Breaks and West Delta regions, respectively, to decommission various platforms, pipeline and associated wells during the nine-month period ended September 30, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
Commitments and Contingencies | ||
Legal Proceedings | ||
On April 5, 2011, Wesley West Minerals, Ltd. and Longfellow Ranch Partners, LP filed suit against the Company and SandRidge Exploration and Production, LLC (collectively, the “SandRidge Entities”) in the 83rd District Court of Pecos County, Texas. The plaintiffs, who have leased mineral rights to the SandRidge Entities in Pecos County, allege that the SandRidge Entities have not properly paid royalties on all volumes of natural gas and CO2 produced from the acreage leased from the plaintiffs. The plaintiffs also allege that the SandRidge Entities have inappropriately failed to pay royalties on CO2 produced from the plaintiffs' acreage that results from the treatment of natural gas at the Century Plant. The plaintiffs seek approximately $45.5 million in actual damages for the period of time between January 2004 and December 2011, punitive damages and a declaration that the SandRidge Entities must pay royalties on CO2 produced from the plaintiffs' acreage that results from treatment of natural gas at the Century Plant. The Commissioner of the General Land Office of the State of Texas (“GLO”) is named as an additional defendant in the lawsuit as some of the affected oil and natural gas leases described in the plaintiffs' allegations cover mineral classified lands in which the GLO is entitled to one-half of the royalties attributable to such leases. The GLO has filed a cross-claim against the SandRidge Entities asserting the same claims as the plaintiffs with respect to the leases covering mineral classified lands and seeking approximately $13.0 million in actual damages, inclusive of penalties and interest. On February 5, 2013, the Company received a favorable summary judgment ruling that effectively removes a majority of the plaintiffs' and GLO's claims. On April 29, 2013, the court entered an order allowing for an interlocutory appeal of its summary judgment ruling. The Company intends to continue to defend the remaining issues in this lawsuit as well as any appellate proceedings. At the time of the ruling on summary judgment, the lawsuit was still in the discovery stage and, accordingly, an estimate of reasonably possible losses associated with the remaining causes of action, if any, cannot be made until all of the facts, circumstances and legal theories relating to such claims and the Company's defenses are fully disclosed and analyzed. The Company has not established any reserves relating to this action. | ||
On August 4, 2011, Patriot Exploration, LLC, Jonathan Feldman, Redwing Drilling Partners, Mapleleaf Drilling Partners, Avalanche Drilling Partners, Penguin Drilling Partners and Gramax Insurance Company Ltd. filed a lawsuit against the Company, SandRidge Exploration and Production, LLC (“SandRidge E&P”) and certain current and former directors and senior executive officers of the Company (collectively, the “defendants”) in the U.S. District Court for the District of Connecticut. On October 28, 2011, the plaintiffs filed an amended complaint alleging substantially the same allegations as those contained in the original complaint. The plaintiffs allege that the defendants made false and misleading statements to U.S. Drilling Capital Management LLC and to the plaintiffs prior to the entry into a participation agreement among Patriot Exploration, LLC, U.S. Drilling Capital Management LLC and SandRidge E&P, which provided for the investment by the plaintiffs in certain of SandRidge E&P's oil and natural gas properties. To date, the plaintiffs have invested approximately $16.0 million under the participation agreement. The plaintiffs seek compensatory and punitive damages and rescission of the participation agreement. On November 28, 2011, the defendants filed a motion to dismiss the amended complaint. On June 29, 2013, the court granted in part and denied in part the defendants’ motion. The Company intends to defend this lawsuit vigorously and believes the plaintiffs' claims are without merit. This lawsuit is in the early stages and, accordingly, an estimate of reasonably possible losses associated with this action, if any, cannot be made until the facts, circumstances and legal theories relating to the plaintiffs' claims and the Company's defenses are fully disclosed and analyzed. The Company has not established any reserves relating to this action. | ||
Between December 2012 and March 2013, seven putative shareholder derivative actions were filed in state and federal court in Oklahoma: | ||
• | Arthur I. Levine v. Tom L. Ward, et al., and SandRidge Energy, Inc., Nominal Defendant - filed on December 19, 2012 in the U.S. District Court for the Western District of Oklahoma | |
• | Deborah Depuy v. Tom L. Ward, et al., and SandRidge Energy, Inc., Nominal Defendant - filed on January 22, 2013 in the U.S. District Court for the Western District of Oklahoma | |
• | Paul Elliot, on Behalf of the Paul Elliot IRA R/O, v. Tom L. Ward, et al., and SandRidge Energy, Inc., Nominal Defendant - filed on January 29, 2013 in the U.S. District Court for the Western District of Oklahoma | |
• | Dale Hefner v. Tom L. Ward, et al., and SandRidge Energy, Inc., Nominal Defendant - filed on January 4, 2013 in the District Court of Oklahoma County, Oklahoma | |
• | Rocky Romano v. Tom L. Ward, et al., and SandRidge Energy, Inc., Nominal Defendant - filed on January 22, 2013 in the District Court of Oklahoma County, Oklahoma | |
• | Joan Brothers v. Tom L. Ward, et al., and SandRidge Energy, Inc., Nominal Defendant - filed on February 15, 2013 in the U.S. District Court for the Western District of Oklahoma | |
• | Lisa Ezell, Jefferson L. Mangus, and Tyler D. Mangus v. Tom L. Ward, et al., and SandRidge Energy, Inc., Nominal Defendant - filed on March 22, 2013 in the U.S. District Court for the Western District of Oklahoma | |
Each lawsuit identified above was filed derivatively on behalf of the Company and names as defendants current and past directors of the Company. The Hefner lawsuit also names as defendants certain current and former directors and senior executive officers of the Company. All seven lawsuits assert overlapping claims - generally that the defendants breached their fiduciary duties, mismanaged the Company, wasted corporate assets, and engaged in, facilitated or approved self-dealing transactions in breach of their fiduciary obligations. The Depuy lawsuit also alleges violations of federal securities laws in connection with the Company allegedly filing and distributing certain misleading proxy statements. The lawsuits seek, among other relief, injunctive relief related to the Company's corporate governance and unspecified damages. | ||
On April 10, 2013, the U.S. District Court for the Western District of Oklahoma consolidated the Levine, Depuy, Elliot, Brothers, and Ezell actions (the “Federal Shareholder Derivative Litigation”) under the caption “In re SandRidge Energy, Inc. Shareholder Derivative Litigation,” appointed a lead plaintiff and lead counsel, and ordered the lead plaintiff to file a consolidated complaint by May 1, 2013. On June 3, 2013, the Company and the individual defendants filed their respective motions to dismiss the consolidated complaint. On September 11, 2013, the court granted the defendants’ respective motions to dismiss the consolidated complaint without prejudice, and granted plaintiffs leave to file an amended consolidated complaint. The plaintiffs filed an amended consolidated complaint on October 9, 2013, in which plaintiffs allege that: (i) the Company’s former Chief Executive Officer (“CEO”), Tom Ward, breached his fiduciary duties by usurping corporate opportunities, (ii) certain of the Company’s current and former directors breached their fiduciary duties of care, (iii) Mr. Ward and certain of the Company’s current and former directors wasted corporate assets, (iv) certain entities allegedly affiliated with Mr. Ward aided and abetted Mr. Ward’s breaches of fiduciary duties, (v) Mr. Ward and entities allegedly affiliated with Mr. Ward misappropriated the Company’s confidential and proprietary information, and (vi) entities allegedly affiliated with Mr. Ward were unjustly enriched. | ||
The Company and the individual defendants in the Hefner and Romano actions (the “State Shareholder Derivative Litigation”) moved to stay each of those actions in favor of the Federal Shareholder Derivative Litigation, in order to avoid duplicative proceedings, and also requested, in the alternative, the dismissal of the State Shareholder Derivative Litigation. On May 8, 2013, the court stayed the Romano action pending further order of the court. | ||
On June 19, 2013, the court stayed the Hefner action until at least November 29, 2013. The court subsequently lifted its stay for purposes of hearing and deciding the defendants’ respective motions to dismiss. On September 18, 2013, the court denied the defendants’ motions to dismiss. | ||
Because the lawsuits comprising the State Shareholder Derivative Litigation and the Federal Shareholder Derivative Litigation have only been recently filed, an estimate of reasonably possible losses associated with each of them, if any, cannot be made until the facts, circumstances and legal theories relating to the claims asserted and available defenses are fully disclosed and analyzed. The Company has not established any reserves relating to these actions. | ||
On December 5, 2012, James Glitz and Rodger A. Thornberry, on behalf of themselves and all other similarly situated stockholders, filed a putative class action complaint in the U.S. District Court for the Western District of Oklahoma against SandRidge Energy, Inc. and certain current and former executive officers of the Company. On January 4, 2013, Louis Carbone, on behalf of himself and all other similarly situated stockholders, filed a substantially similar putative class action complaint in the same court and against the same defendants. On March 6, 2013, the court consolidated these two actions under the caption “In re SandRidge Energy, Inc. Securities Litigation” (the “Securities Litigation”) and appointed a lead plaintiff and lead counsel. By order dated April 10, 2013, the court granted the lead plaintiff until July 23, 2013 to file a consolidated amended complaint in the action. The consolidated amended complaint asserts a variety of federal securities claims against the Company and certain of its current and former officers and directors, among other defendants, on behalf of a putative class of (a) purchasers of SandRidge common stock during the period from February 24, 2011 to November 8, 2012, (b) purchasers of common units of the Mississippian Trust I in or traceable to its initial public offering on or about April 12, 2011, and (c) purchasers of common units of the Mississippian Trust II (together with the Mississippian Trust I, the “Mississippian Trusts”) in or traceable to its initial public offering on or about April 23, 2012. The claims are based on allegations that the Company, certain of its current and former officers and directors, and the Mississippian Trusts, among other defendants, are responsible for making false and misleading statements, and omitting material information, concerning a variety of subjects, including oil and natural gas reserves, the Company's capital expenditures, and certain transactions entered into by companies allegedly affiliated with the Company's former CEO Tom Ward. On October 7, 2013, the defendants filed their respective motions to dismiss the consolidated amended complaint. Because the Securities Litigation has only been recently filed, an estimate of reasonably possible losses associated with it, if any, cannot be made until the facts, circumstances and legal theories relating to the plaintiffs' claims and available defenses are fully disclosed and analyzed. The Company has not established any reserves relating to the Securities Litigation. Each of the Mississippian Trusts has requested that the Company indemnify it for any losses it may incur in connection with the Securities Litigation. | ||
On January 7, 2013, Gerald Kallick, on behalf of himself and all other similarly situated stockholders, filed a putative class action complaint in the Court of Chancery of the State of Delaware against SandRidge Energy, Inc., and certain current and former directors of the Company. On January 31, 2013, the plaintiff filed an amended class action complaint. In his amended complaint, the plaintiff sought: (i) declaratory relief that certain change-in-control provisions in the Company's indentures and senior credit facility agreement are invalid and unenforceable, (ii) declaratory relief that the directors breached their fiduciary duties by failing to approve the slate of directors proposed by TPG-Axon in its consent solicitation in order to disable the change-in-control provisions described above, (iii) a mandatory injunction requiring the directors to approve nominees for the Board of Directors (the “Board”) submitted by TPG-Axon, (iv) a mandatory injunction prohibiting the Company from paying the then current Chairman and CEO his change-in-control benefits under his employment agreement if the CEO were removed as a director, but remained employed as the Company’s CEO, (v) a mandatory injunction enjoining the defendants from impeding or interfering with TPG-Axon's consent solicitation, (vi) a mandatory injunction requiring the defendants to disclose all material information related to the change-in-control provisions in the Company's indentures and senior credit facility agreement; and (vii) an order requiring the Company's current directors to account to the plaintiff and the putative class for alleged damages. On March 8, 2013, the court granted plaintiff's motion for a preliminary injunction, enjoining the Board, unless and until it approved the TPG-Axon nominees for purposes of the change-in-control provisions of the Company's outstanding debt agreements, from (i) soliciting any further consent revocations in opposition to TPG-Axon's consent solicitation, (ii) relying upon or otherwise giving effect to any consent revocations received by the Company as of March 11, 2013, and (iii) impeding TPG-Axon's consent solicitation in any way. On March 9, 2013, the Board approved TPG-Axon's nominees for purposes of the change-in-control provisions in the Company's debt instruments. On March 13, 2013, TPG-Axon and the Board entered into a settlement agreement under which TPG-Axon's consent solicitation was withdrawn. As a result of these actions, the Company believes that many of the original claims asserted by the plaintiff in the Kallick action have been rendered moot. | ||
On August 28, 2013, the plaintiff filed a motion seeking an order dismissing the action as moot and requesting an award of attorneys’ fees and expenses in the amount of $5.0 million. On October 30, 2013, the Court entered a stipulation and order regarding dismissal of the action as moot (the “Order”). As required by the Order, the Company is notifying stockholders that the action is moot and the Company has agreed to pay plaintiff’s counsel $2.5 million in full satisfaction of plaintiff’s pending request for attorneys’ fees and expenses in the Action; the Company expects to be reimbursed by its insurance carrier for the full amounts of such payment. The Order provides that the action will be dismissed as moot without further action of the Court unless another stockholder of the Company submits a written objection to the Court within thirty days of this notice. | ||
On July 15, 2013, James Hart and fifteen other named plaintiffs filed an Amended Complaint in the United States District Court for the District of Kansas in an action undertaken individually and on behalf of others similarly situated against SandRidge Energy, Inc., SandRidge Operating Company, SandRidge Exploration and Production, LLC, SandRidge Midstream, Inc., and Lariat Services, Inc. In their Amended Complaint, plaintiffs allege that the defendants failed to properly calculate overtime pay for the plaintiffs and for other similarly situated current and former employees. The plaintiffs further allege that the defendants required the plaintiffs and other similarly situated current and former employees to engage in work-related activities without pay. The plaintiffs assert claims against the defendants for (i) violations of the Fair Labor Standards Act, (ii) violations of the Kansas Wage Payment Act, (iii) breach of contract, and (iv) fraud, and seek to recover unpaid wages and overtime pay, liquidated damages, statutory penalties, economic damages, compensatory and punitive damages, attorneys’ fees and costs, and both pre- and post-judgment interest. | ||
On October 3, 2013, the plaintiffs filed a Motion for Conditional Collective Action Certification and for Judicial Notice to Class and a Motion to Toll the Statute of Limitations. On October 11, 2013, the defendants filed a Motion to Dismiss and a Motion to Transfer Venue to the United States District Court for the Western District of Oklahoma. All of these motions are pending before the Court. | ||
The Company and the other defendants intend to defend this lawsuit vigorously. This lawsuit is in the early stages and, accordingly, an estimate of reasonably possible losses associated with this action, if any, cannot be made until the facts, circumstances and legal theories relating to the plaintiffs' claims and the defendants’ defenses are fully disclosed and analyzed. The Company has not established any reserves relating to this action. | ||
In addition to the litigation described above, the Company is a defendant in lawsuits from time to time in the normal course of business. While the results of litigation and claims cannot be predicted with certainty, the Company believes the reasonably possible losses of such matters, individually and in the aggregate, are not material. Additionally, the Company believes the probable final outcome of such matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, cash flows or liquidity. | ||
Treating Agreement Commitment | ||
In conjunction with the Century Plant construction agreement, the Company entered into a 30-year treating agreement with Occidental for the removal of CO2 from the Company’s delivered production volumes of natural gas. Under the agreement, the Company must deliver a total of approximately 3,200 Bcf of CO2 during the agreement period; it is expected that after 2013 approximately 3,000 Bcf of CO2 will remain to be delivered. The Company pays Occidental $0.25 per Mcf to the extent minimum annual CO2 volume requirements are not met, and, at the end of 2042, the Company is required to pay Occidental $0.70 per Mcf for total undelivered CO2 volumes, net of any CO2 delivered in excess of any given year’s applicable minimum volumes. Based on current projected natural gas production levels, the Company expects to accrue between approximately $29.5 million and $36.0 million at December 31, 2013 for amounts related to the Company’s anticipated shortfall in meeting its 2013 annual CO2 delivery obligation. Due to the sensitivity of drilling activity to market prices for natural gas, the Company is unable to estimate additional amounts it may be required to pay under the agreement in subsequent periods; however, if natural gas prices remain low, drilling activity will likely also remain low, which would result in additional shortfall payments in future periods. |
Equity
Equity | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Equity | ' | |||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||||
The following table presents information regarding the Company’s preferred stock (in thousands): | ||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Shares authorized | 50,000 | 50,000 | ||||||||||||||||||||||
Shares outstanding at end of period | ||||||||||||||||||||||||
8.5% Convertible perpetual preferred stock | 2,650 | 2,650 | ||||||||||||||||||||||
6.0% Convertible perpetual preferred stock | 2,000 | 2,000 | ||||||||||||||||||||||
7.0% Convertible perpetual preferred stock | 3,000 | 3,000 | ||||||||||||||||||||||
The Company is authorized to issue 50.0 million shares of preferred stock, $0.001 par value, of which approximately 7.7 million shares were designated as convertible perpetual preferred stock at September 30, 2013 and December 31, 2012. All of the outstanding shares of the Company’s convertible perpetual preferred stock were issued in private transactions but are now freely tradable, to the extent not owned by affiliates. | ||||||||||||||||||||||||
Each outstanding share of convertible perpetual preferred stock is convertible at the holder’s option at any time into shares of the Company’s common stock at the specified conversion rate, subject to customary adjustments in certain circumstances. Each holder is entitled to an annual dividend payable semi-annually in cash, common stock or a combination thereof, at the Company’s election. The convertible perpetual preferred stock is not redeemable by the Company at any time. After the specified conversion date, the Company may cause all outstanding shares of the convertible perpetual preferred stock to convert automatically into common stock at the then-prevailing conversion rate if certain conditions are met. The following table summarizes information about each series of the Company’s convertible perpetual preferred stock: | ||||||||||||||||||||||||
Convertible Perpetual Preferred Stock | ||||||||||||||||||||||||
8.50% | 6.00% | 7.00% | ||||||||||||||||||||||
Liquidation preference per share | $ | 100 | $ | 100 | $ | 100 | ||||||||||||||||||
Annual dividend per share | $ | 8.5 | $ | 6 | $ | 7 | ||||||||||||||||||
Conversion rate per share to common stock | 12.4805 | 9.2115 | 12.8791 | |||||||||||||||||||||
Conversion date to common stock at Company's option | 20-Feb-14 | 21-Dec-14 | 20-Nov-15 | |||||||||||||||||||||
Preferred stock dividends. All dividend payments to date on the Company’s 8.5%, 6.0% and 7.0% convertible perpetual preferred stock have been paid in cash. Paid and unpaid dividends included in the calculation of (loss applicable) income available to the Company’s common stockholders and the Company’s basic (loss) earnings per share calculation for the three and nine-month periods ended September 30, 2013 and 2012 as presented in the accompanying unaudited condensed consolidated statements of operations, are included in the tables below (in thousands): | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Dividends Paid | Dividends Unpaid | Total | Dividends Paid | Dividends Unpaid | Total | |||||||||||||||||||
8.5% Convertible perpetual preferred stock | $ | 2,815 | $ | 2,816 | $ | 5,631 | $ | 2,815 | $ | 2,816 | $ | 5,631 | ||||||||||||
6.0% Convertible perpetual preferred stock | 500 | 2,500 | 3,000 | 500 | 2,500 | 3,000 | ||||||||||||||||||
7.0% Convertible perpetual preferred stock | — | 5,250 | 5,250 | — | 5,250 | 5,250 | ||||||||||||||||||
Total | $ | 3,315 | $ | 10,566 | $ | 13,881 | $ | 3,315 | $ | 10,566 | $ | 13,881 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Dividends Paid | Dividends Unpaid | Total | Dividends Paid | Dividends Unpaid | Total | |||||||||||||||||||
8.5% Convertible perpetual preferred stock | $ | 14,078 | $ | 2,816 | $ | 16,894 | $ | 14,078 | $ | 2,816 | $ | 16,894 | ||||||||||||
6.0% Convertible perpetual preferred stock | 6,500 | 2,500 | 9,000 | 6,500 | 2,500 | 9,000 | ||||||||||||||||||
7.0% Convertible perpetual preferred stock | 7,875 | 7,875 | 15,750 | 7,875 | 7,875 | 15,750 | ||||||||||||||||||
Total | $ | 28,453 | $ | 13,191 | $ | 41,644 | $ | 28,453 | $ | 13,191 | $ | 41,644 | ||||||||||||
Common Stock | ||||||||||||||||||||||||
The following table presents information regarding the Company’s common stock (in thousands): | ||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Shares authorized | 800,000 | 800,000 | ||||||||||||||||||||||
Shares outstanding | 490,536 | 490,359 | ||||||||||||||||||||||
Shares held in treasury | 1,269 | 1,219 | ||||||||||||||||||||||
Stockholder Rights Plan | ||||||||||||||||||||||||
On November 19, 2012, the Board adopted a stockholder rights plan pursuant to which the Board authorized and declared to stockholders of record on November 29, 2012 a dividend of one preferred share purchase right (the “Rights”) for each outstanding share of common stock. Effective April 29, 2013, at the direction of the Board, the Company amended the stockholder rights plan to accelerate the expiration date of the Rights to April 29, 2013. As a result, the Rights have expired and are no longer outstanding, and the stockholder rights plan has been terminated. | ||||||||||||||||||||||||
Treasury Stock | ||||||||||||||||||||||||
The Company makes required statutory tax payments on behalf of employees when their restricted stock awards vest and then withholds a number of vested shares of common stock having a value on the date of vesting equal to the tax obligation. As a result of such transactions, the Company withheld approximately 5.6 million shares having a total value of $29.7 million and approximately 1.5 million shares having a total value of $11.1 million for the nine-month periods ended September 30, 2013 and 2012, respectively. These shares were accounted for as treasury stock when withheld and then immediately retired. | ||||||||||||||||||||||||
Shares of Company common stock held as assets in a trust for the Company’s non-qualified deferred compensation plan are accounted for as treasury shares. These shares are not included as outstanding shares of common stock in this report. For corporate purposes, including for the purpose of voting at Company stockholder meetings, these shares are considered outstanding and have voting rights, which are exercised by the Company. | ||||||||||||||||||||||||
Stockholder Receivable | ||||||||||||||||||||||||
On November 9, 2012, Tom L. Ward, the Company’s Chairman and CEO at that time, and the Company entered into a settlement agreement with a stockholder plaintiff relating to a third-party claim under Section 16(b) of the Exchange Act. The claim was filed in December 2010 and related to certain transactions involving Company common stock by Mr. Ward in 2008 and 2009. The settlement agreement found no liability or other wrongdoing under Section 16(b) regarding the transactions in question. Under the settlement agreement, Mr. Ward agreed to pay to the Company $5.0 million in four installments over four years commencing October 2013 and to waive his rights under his indemnification agreement with the Company with respect to this Section 16(b) action. The Company agreed to pay the fees of the plaintiff’s lawyers and paid Mr. Ward’s legal expenses as required under his indemnification agreement. | ||||||||||||||||||||||||
Based on the nature of the settlement as well as Mr. Ward’s position as an officer of the Company at that time, a $5.0 million receivable was recorded as a component of additional paid-in capital and is included in the accompanying unaudited condensed consolidating balance sheets as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||
Restricted Common Stock | ||||||||||||||||||||||||
The Company awards restricted common stock under its long-term incentive compensation plan that generally vests over a four-year period, subject to certain conditions, and is valued based upon the market value of common stock on the date of grant. Shares of restricted common stock are subject to restriction on transfer. Unvested restricted stock awards are included in the Company’s outstanding shares of common stock. | ||||||||||||||||||||||||
Equity compensation provided to employees directly involved in oil and natural gas exploration and development activities is capitalized to the Company’s oil and natural gas properties. Equity compensation not capitalized is reflected in general and administrative expenses, production expenses, cost of sales and midstream and marketing expenses in the accompanying unaudited condensed consolidated statements of operations. For the three and nine-month periods ended September 30, 2013, the Company recognized equity compensation expense of $6.8 million and $77.5 million, net of $1.3 million and $4.3 million capitalized, respectively, related to restricted common stock. The nine-month period ended September 30, 2013 includes approximately $48.5 million of equity compensation expense recognized in connection with the separation from the Company of certain of its former executives. For the three and nine-month periods ended September 30, 2012, the Company recognized equity compensation expense of $9.1 million and $30.7 million, net of $1.8 million and $5.7 million capitalized, respectively, related to restricted common stock. | ||||||||||||||||||||||||
See Note 16 for discussion of performance units issued to certain members of senior management in July 2013. | ||||||||||||||||||||||||
Noncontrolling Interest | ||||||||||||||||||||||||
Noncontrolling interest represents third-party ownership interests in the Company’s subsidiaries and consolidated VIEs (see Note 3), and is included as a component of equity in the consolidated balance sheet and consolidated statement of changes in equity. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes | ||||||||||||||||
The Company estimates for each interim reporting period the effective tax rate expected for the full fiscal year and uses that estimated rate in providing for income taxes on a current year-to-date basis. The provision (benefit) for income taxes consisted of the following components for the three and nine-month periods ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Current | ||||||||||||||||
Federal | $ | 687 | $ | — | $ | 4,702 | $ | (71 | ) | |||||||
State | 1,676 | 173 | 2,598 | (14 | ) | |||||||||||
2,363 | 173 | 7,300 | (85 | ) | ||||||||||||
Deferred | ||||||||||||||||
Federal | — | — | — | (97,345 | ) | |||||||||||
State | — | — | — | (2,943 | ) | |||||||||||
— | — | — | (100,288 | ) | ||||||||||||
Total provision (benefit) | 2,363 | 173 | 7,300 | (100,373 | ) | |||||||||||
Less: income tax provision attributable to noncontrolling interest | 96 | 130 | 242 | 287 | ||||||||||||
Total provision (benefit) attributable to SandRidge Energy, Inc. | $ | 2,267 | $ | 43 | $ | 7,058 | $ | (100,660 | ) | |||||||
Deferred income taxes are provided to reflect the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets are reduced by a valuation allowance when a determination is made that it is more likely than not that some or all of the deferred assets will not be realized based on the weight of all available evidence. As of December 31, 2008, the Company determined it was appropriate to record a full valuation allowance against its net deferred tax asset. The Company continues to closely monitor and weigh all available evidence, including both positive and negative, in making its determination whether to maintain a valuation allowance. As a result of significant weight being placed on the Company's cumulative negative earnings position, the Company continued to have a full valuation allowance against its net deferred tax asset at September 30, 2013. | ||||||||||||||||
The income tax expense attributable to SandRidge of $7.1 million for the nine-month period ended September 30, 2013 is primarily related to federal alternative minimum tax (“AMT”) associated with the tax year ending December 31, 2013. The Company recorded a current liability and a corresponding deferred tax asset each in the amount of $4.7 million for the nine-month period ended September 30, 2013. As a result of recording this deferred tax asset, the Company increased its valuation allowance against its net deferred tax asset by $4.7 million. Also included in the income tax expense attributable to SandRidge for the nine-month period ended September 30, 2013 is $2.4 million of current state income tax associated with the tax year ending December 31, 2013. | ||||||||||||||||
Internal Revenue Code (“IRC”) Section 382 addresses company ownership changes and specifically limits the utilization of certain deductions and other tax attributes on an annual basis following an ownership change. The Company experienced an ownership change within the meaning of IRC Section 382 on December 31, 2008. The ownership change subjected certain of the Company’s tax attributes, including $298.4 million of federal net operating loss carryforwards, to the IRC Section 382 limitation. The Company experienced a subsequent ownership change within the meaning of IRC Section 382 on July 16, 2010 as a result of the acquisition of Arena Resources, Inc. (“Arena”). The subsequent ownership change resulted in a more restrictive limitation on certain of the Company’s tax attributes than with the December 31, 2008 ownership change. The more restrictive limitation applies not only to the $298.4 million of federal net operating loss carryforwards and certain other tax attributes existing at December 31, 2008, but also to net operating losses of approximately $629.8 million and certain other tax attributes generated in periods following the December 31, 2008 ownership change. The subsequent limitation could result in a material amount of existing loss carryforwards expiring unused. Arena also experienced an ownership change on July 16, 2010 as a result of its acquisition by the Company. This ownership change resulted in a limitation on Arena’s net operating loss carryforwards of $119.9 million available to the Company. None of the limitations discussed above resulted in a current federal tax liability at September 30, 2013 or December 31, 2012. | ||||||||||||||||
At September 30, 2013, the Company had a liability of approximately $1.9 million for unrecognized tax benefits, compared to a liability of approximately $1.3 million at December 31, 2012. If recognized, approximately $1.2 million, net of federal tax expense, would be recorded as a reduction of income tax expense and would affect the effective tax rate. | ||||||||||||||||
The Company’s policy is to record interest and penalties on income taxes as a component of the income tax provision. The Company had an accrued liability of $0.2 million for interest and penalties relating to uncertain tax positions at September 30, 2013 and December 31, 2012. | ||||||||||||||||
The Company’s only taxing jurisdiction is the United States (federal and state). The Company’s tax years 2010 to present remain open for federal examination. Additionally, various tax years remain open beginning with tax year 2003 due to federal net operating loss carryforwards. The number of years open for state tax audits varies, depending on the state, but are generally from three to five years. Currently, several examinations are in progress. The Company does not anticipate that any federal or state audits will have a significant impact on the Company’s results of operations or financial position. As a result of ongoing negotiations pertaining to the Company’s current state audits, it is reasonably possible that the Company’s gross unrecognized tax benefits balance may decrease within the next twelve months by approximately $1.6 million. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
Earnings per Share | ||||||||||||
Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average shares outstanding during the period, but also include the dilutive effect of awards of restricted stock, using the treasury stock method, and outstanding convertible preferred stock. Under the treasury stock method, the amount of unrecognized compensation expense related to unvested stock-based compensation grants is assumed to be used to repurchase shares at the average market price. The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings per share, for the three and nine-month periods ended September 30, 2013 and 2012 (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average basic common shares outstanding | 483,582 | 476,037 | 480,209 | 445,991 | ||||||||
Effect of dilutive securities | ||||||||||||
Restricted stock | — | — | — | 1,176 | ||||||||
Convertible preferred stock | — | — | — | 90,133 | ||||||||
Weighted average diluted common and potential common shares outstanding | 483,582 | 476,037 | 480,209 | 537,300 | ||||||||
For the nine-month period ended September 30, 2013 and three-month period ended September 30, 2012, restricted stock awards covering 1.0 million and 0.4 million shares, respectively, were excluded from the computation of loss per share because their effect would have been antidilutive. | ||||||||||||
In computing diluted earnings per share, the Company evaluated the if-converted method with respect to its outstanding convertible perpetual preferred stock for the three and nine-month periods ended September 30, 2013 and 2012. Under the if-converted method, the Company assumes the conversion of the preferred stock to common stock and determines if this is more dilutive than including the preferred stock dividends (paid and unpaid) in the computation of income available (loss applicable) to common stockholders. For the three and nine-month periods ended September 30, 2013 and the three-month period ended September 30, 2012, the Company determined the if-converted method was antidilutive and included the 8.5%, 6.0% and 7.0% preferred stock dividends in the determination of loss applicable to common stockholders. For the nine-month period ended September 30, 2012, the Company determined the if-converted method was more dilutive and did not include the 8.5%, 6.0% and 7.0% preferred stock dividends in the determination of income available to common stockholders. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
The Company enters into transactions in the ordinary course of business with certain related parties. These transactions primarily consist of sales of oil and natural gas. There were no sales to related parties during the three-month period ended September 30, 2013 and $1.6 million of sales to related parties during the nine-month period ended September 30, 2013. During the three and nine-month periods ended September 30, 2012, sales to related parties were $2.8 million and $9.8 million, respectively. | |
Former Chairman and CEO Severance. On June 28, 2013, Tom L. Ward separated employment from the Company. Amounts due under the terms of his employment agreement include approximately $57.9 million in severance payments, of which $4.6 million will be paid in 36 monthly installments beginning in January 2014, and approximately $36.8 million associated with the accelerated vesting of 6.3 million shares of restricted stock awards. During the third quarter of 2013, the Company paid $53.3 million in severance payments to Mr. Ward. | |
Oklahoma City Thunder Agreement. The Company’s former Chairman and CEO and one of its directors own minority interests in a limited liability company that owns and operates the Oklahoma City Thunder basketball team. The Company was party to a sponsorship agreement, whereby it paid approximately $3.3 million per year for advertising and promotional activities related to the Oklahoma City Thunder, which terminated with the conclusion of the 2012-2013 season. | |
Office Lease. In July 2012, the Company entered into a commercial lease to rent space in a building owned by an entity that is partially owned by one of the Company’s directors. The terms provide for an initial lease term of three years with annual rent of approximately $0.5 million, and any renovation costs paid by the Company with respect to the leased space will be applied toward future rent payments. Renovation costs in excess of the total rent will be reimbursed to the Company at the end of the lease agreement. As of September 30, 2013, the Company has made renovations costing approximately $3.3 million, net of amounts attributed to rent payments. The terms of the lease were reviewed and approved by the disinterested members of the Board and the Company believes that the rent expense to be paid under the lease is at a fair market rate. |
Employee_Compensation_Plans
Employee Compensation Plans | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Compensation Related Costs [Abstract] | ' | ||||
Employee Compensation Plans | ' | ||||
Employee Compensation Plans | |||||
Annual Incentive Plan | |||||
In June 2013, the Compensation Committee of the Company’s Board approved an annual incentive plan effective June 2013 for all employees and discontinued the Company’s then existing cash bonus program with final payments under the program of approximately $10.9 million made in July 2013. For certain members of management, the annual incentive plan incorporates objective performance criteria, individual performance goals and competitive target award levels for the 2013 performance year with payout percentages ranging from 0% to 200% of specified target levels based on actual performance. As of September 30, 2013, the Company had accrued approximately $19.9 million for the 2013 annual incentive for all employees, including an accrual for an annual incentive for specified members of management. As the payout for management is dependent on actual performance compared to established performance targets, the actual amount paid for 2013 performance under the annual incentive plan could differ significantly from the established target values. | |||||
Performance Units | |||||
In June 2013, the Compensation Committee of the Company’s Board approved the issuance of performance units to certain members of senior management under the Company’s existing long term incentive plan. In July 2013, the Company granted approximately 31,100 performance units that will be settled in cash. If minimum target thresholds are not met, the payout is reduced to zero. If performance exceeds the minimum thresholds, payout percentages could range from 50% to 200% of specified target values based on the Company's relative total shareholder return compared to a predetermined peer group with graded vesting over a performance period from July 2013 to December 2015. | |||||
Because the performance units contain a market-based performance component and will be settled in cash upon vesting, the Company recognized a liability equal to the estimated fair value of the units at the time the units were granted in July 2013 and will re-measure the liability at the end of each reporting period. Changes in the fair value of the units during the vesting period are recognized as compensation expense for the portion for which the requisite services have been rendered. | |||||
The performance units, the value of which depends on the Company’s relative total shareholder return compared to a predetermined peer group over the performance period, are valued for accounting purposes using a Monte Carlo simulation based on certain assumptions, including a volatility assumption based on the historical realized price volatility of the Company’s common stock and the common stock of the predetermined peer group and a risk-free interest rate based on the U.S. Treasury bond yields for a term commensurate with the approximate remaining vesting period. As of September 30, 2013, the Company had a liability of $0.8 million recorded for the performance units. The following table presents a summary of the fair value of the performance units and the related assumptions as of September 30, 2013. | |||||
Expected price volatility range | 32.6 | % | - | 58.30% | |
Risk-free interest rate | 0.40% | ||||
Fair value per unit | $80.60 |
Business_Segment_Information
Business Segment Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Business Segment Information | ' | |||||||||||||||||||
Business Segment Information | ||||||||||||||||||||
The Company has three business segments: exploration and production, drilling and oil field services and midstream services. These segments represent the Company’s three main business units, each offering different products and services. The exploration and production segment is engaged in the acquisition, development and production of oil and natural gas properties and includes the activities of the Royalty Trusts. The drilling and oil field services segment is engaged in the contract drilling of oil and natural gas wells and provides various oil field services. The midstream services segment is engaged in the purchasing, gathering, treating and selling of natural gas and the distribution of electricity to the Company’s exploration and production operations in the Mississippian formation. The All Other column in the tables below includes items not related to the Company’s reportable segments, including the Company’s CO2 gathering and sales as well as its corporate operations. | ||||||||||||||||||||
Management evaluates the performance of the Company’s business segments based on income (loss) from operations. Summarized financial information concerning the Company’s segments is shown in the following table (in thousands): | ||||||||||||||||||||
Exploration and Production | Drilling and Oil Field Services | Midstream Services | All Other | Consolidated Total | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Revenues | $ | 462,582 | $ | 44,527 | $ | 37,876 | $ | 767 | $ | 545,752 | ||||||||||
Inter-segment revenue | (79 | ) | (28,335 | ) | (23,735 | ) | — | (52,149 | ) | |||||||||||
Total revenues | $ | 462,503 | $ | 16,192 | $ | 14,141 | $ | 767 | $ | 493,603 | ||||||||||
(Loss) income from operations(1) | $ | (11,604 | ) | $ | (8,276 | ) | $ | (7,691 | ) | $ | 33,659 | $ | 6,088 | |||||||
Interest income (expense) | 331 | — | — | (61,716 | ) | (61,385 | ) | |||||||||||||
Other (expense) income, net | (350 | ) | — | (41 | ) | 1,049 | 658 | |||||||||||||
Loss before income taxes | $ | (11,623 | ) | $ | (8,276 | ) | $ | (7,732 | ) | $ | (27,008 | ) | $ | (54,639 | ) | |||||
Capital expenditures(2) | $ | 292,697 | $ | 3,142 | $ | 16,551 | $ | 10,192 | $ | 322,582 | ||||||||||
Depreciation, depletion, amortization, accretion and impairment | $ | 146,286 | $ | 8,252 | $ | 2,128 | $ | 5,402 | $ | 162,068 | ||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Revenues | $ | 493,848 | $ | 95,307 | $ | 30,901 | $ | 945 | $ | 621,001 | ||||||||||
Inter-segment revenue | (74 | ) | (67,547 | ) | (20,582 | ) | — | (88,203 | ) | |||||||||||
Total revenues | $ | 493,774 | $ | 27,760 | $ | 10,319 | $ | 945 | $ | 532,798 | ||||||||||
(Loss) income from operations(1) | $ | (48,454 | ) | $ | 2,515 | $ | (3,434 | ) | $ | (26,498 | ) | $ | (75,871 | ) | ||||||
Interest income (expense) | 351 | — | (136 | ) | (82,109 | ) | (81,894 | ) | ||||||||||||
Loss on extinguishment of debt | — | — | — | (3,056 | ) | (3,056 | ) | |||||||||||||
Other (expense) income, net | (260 | ) | — | — | 1,502 | 1,242 | ||||||||||||||
(Loss) income before income taxes | $ | (48,363 | ) | $ | 2,515 | $ | (3,570 | ) | $ | (110,161 | ) | $ | (159,579 | ) | ||||||
Capital expenditures(2) | $ | 500,366 | $ | 14,571 | $ | 20,229 | $ | 24,892 | $ | 560,058 | ||||||||||
Depreciation, depletion, amortization and accretion | $ | 175,393 | $ | 8,706 | $ | 2,042 | $ | 5,535 | $ | 191,676 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Revenues | $ | 1,402,366 | $ | 141,364 | $ | 139,001 | $ | 2,399 | $ | 1,685,130 | ||||||||||
Inter-segment revenue | (241 | ) | (91,713 | ) | (74,896 | ) | — | (166,850 | ) | |||||||||||
Total revenues | $ | 1,402,125 | $ | 49,651 | $ | 64,105 | $ | 2,399 | $ | 1,518,280 | ||||||||||
Loss from operations(3) | $ | (71,645 | ) | $ | (36,684 | ) | $ | (18,106 | ) | $ | (140,545 | ) | $ | (266,980 | ) | |||||
Interest income (expense) | 757 | — | — | (209,211 | ) | (208,454 | ) | |||||||||||||
Loss on extinguishment of debt | — | — | — | (82,005 | ) | (82,005 | ) | |||||||||||||
Other income (expense), net | 157 | — | (914 | ) | 1,920 | 1,163 | ||||||||||||||
Loss before income taxes | $ | (70,731 | ) | $ | (36,684 | ) | $ | (19,020 | ) | $ | (429,841 | ) | $ | (556,276 | ) | |||||
Capital expenditures(2) | $ | 1,008,869 | $ | 4,657 | $ | 46,883 | $ | 38,043 | $ | 1,098,452 | ||||||||||
Depreciation, depletion, amortization, accretion and impairment | $ | 462,683 | $ | 36,544 | $ | 7,832 | $ | 18,018 | $ | 525,077 | ||||||||||
At September 30, 2013 | ||||||||||||||||||||
Total assets | $ | 6,009,608 | $ | 166,485 | $ | 185,131 | $ | 1,308,220 | $ | 7,669,444 | ||||||||||
Exploration and Production | Drilling and Oil Field Services | Midstream Services | All Other | Consolidated Total | ||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Revenues | $ | 1,271,803 | $ | 297,715 | $ | 81,861 | $ | 3,904 | $ | 1,655,283 | ||||||||||
Inter-segment revenue | (229 | ) | (207,014 | ) | (55,173 | ) | — | (262,416 | ) | |||||||||||
Total revenues | $ | 1,271,574 | $ | 90,701 | $ | 26,688 | $ | 3,904 | $ | 1,392,867 | ||||||||||
Income (loss) from operations(3) | $ | 614,045 | $ | 10,672 | $ | (9,792 | ) | $ | (80,039 | ) | $ | 534,886 | ||||||||
Interest income (expense) | 910 | — | (429 | ) | (217,909 | ) | (217,428 | ) | ||||||||||||
Bargain purchase gain | 122,696 | — | — | — | 122,696 | |||||||||||||||
Loss on extinguishment of debt | — | — | — | (3,056 | ) | (3,056 | ) | |||||||||||||
Other income, net | 1,750 | — | — | 1,879 | 3,629 | |||||||||||||||
Income (loss) before income taxes | $ | 739,401 | $ | 10,672 | $ | (10,221 | ) | $ | (299,125 | ) | $ | 440,727 | ||||||||
Capital expenditures(2) | $ | 1,510,614 | $ | 28,323 | $ | 61,958 | $ | 90,875 | $ | 1,691,770 | ||||||||||
Depreciation, depletion, amortization and accretion | $ | 412,924 | $ | 25,880 | $ | 5,170 | $ | 14,460 | $ | 458,434 | ||||||||||
At December 31, 2012 | ||||||||||||||||||||
Total assets | $ | 8,681,056 | $ | 199,523 | $ | 151,492 | $ | 758,660 | $ | 9,790,731 | ||||||||||
____________________ | ||||||||||||||||||||
-1 | Exploration and production segment loss from operations includes losses due to changes in fair value of commodity derivative contracts of $119.6 million and $222.5 million for the three-month periods ended September 30, 2013 and 2012, respectively. | |||||||||||||||||||
-2 | Presented on an accrual basis. | |||||||||||||||||||
-3 | Exploration and production segment (loss) income from operations includes losses (gains) due to changes in fair value of commodity derivative contracts of $58.5 million and $(229.1) million for the nine-month periods ended September 30, 2013 and 2012, respectively. Exploration and production segment loss from operations also includes a loss on the sale of the Permian Properties of $398.9 million for the nine-month period ended September 30, 2013. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Condensed Consolidating Financial Statements Disclosure [Abstract] | ' | |||||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||||
Condensed Consolidating Financial Information | ||||||||||||||||||||
The Company provides condensed consolidating financial information for its subsidiaries that are guarantors of its registered debt. As of September 30, 2013, the subsidiary guarantors, which are 100% owned by the Company, have jointly and severally guaranteed, on a full, unconditional and unsecured basis, the Company’s 8.75% Senior Notes due 2020, 7.5% Senior Notes due 2021, 8.125% Senior Notes due 2022 and 7.5% Senior Notes due 2023. The Senior Floating Rate Notes, prior to their purchase and redemption in 2012, were also jointly and severally guaranteed, on a full, unconditional and unsecured basis by the subsidiary guarantors. The subsidiary guarantees: (i) rank equally in right of payment with all of the existing and future senior debt of the subsidiary guarantors; (ii) rank senior to all of the existing and future subordinated debt of the subsidiary guarantors; (iii) are effectively subordinated in right of payment to any existing or future secured obligations of the subsidiary guarantors to the extent of the value of the assets securing such obligations; (iv) are structurally subordinated to all debt and other obligations of the subsidiaries of the guarantors who are not themselves subsidiary guarantors; and (v) are only released under certain customary circumstances. The Company’s subsidiary guarantors guarantee payments of principal and interest under the Company’s registered notes. | ||||||||||||||||||||
The following condensed consolidating financial information represents the financial information of SandRidge Energy, Inc., its wholly owned subsidiary guarantors and its non-guarantor subsidiaries, prepared on the equity basis of accounting. The non-guarantor subsidiaries, including consolidated VIEs, majority owned subsidiaries and certain immaterial wholly owned subsidiaries, are included in the non-guarantors column in the tables below. The financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the subsidiary guarantors operated as independent entities. | ||||||||||||||||||||
During the three-month period ended June 30, 2013, an error was identified in the Company’s presentation of changes in intercompany advances (borrowings) in the condensed consolidating statement of cash flows. The intercompany advances (borrowings) represent cash flows between the Parent and the Guarantors and Non-Guarantors and are based on the Parent’s centralized treasury activities. Previously, the Company reflected the changes in intercompany advances (borrowings) in net cash provided by (used in) operating activities and such changes should have been reflected as a separate line within net cash provided by (used in) financing activities. The Company concluded these errors were not material individually or in the aggregate to any of the historical condensed consolidating financial information. Accordingly, the Company revised its condensed consolidating statements of cash flows to reflect the changes in intercompany advances (borrowings) in cash flows from financing activities. These revisions had no impact on the Company’s consolidated financial statements or the other condensed consolidating financial information. The revisions related to each of the Parent, Guarantors and Non-Guarantors associated with cash flows from operating activities had corresponding offsetting impacts to cash flows from financing activities resulting in no impact to net increase (decrease) in cash and cash equivalents. Net cash provided by (used in) operating activities increased (decreased) and net cash provided by (used in) financing activities decreased (increased) by the same amount as shown in the table below for the historical nine-month period ended September 30, 2012. | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | $ | 669,502 | ||||||||||||||||||
Guarantors | $ | (550,489 | ) | |||||||||||||||||
Non-Guarantors | $ | (119,013 | ) | |||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 910,443 | $ | 838 | $ | 8,976 | $ | — | $ | 920,257 | ||||||||||
Accounts receivable, net | — | 366,791 | 24,091 | — | 390,882 | |||||||||||||||
Intercompany accounts receivable | 88,834 | 1,000,435 | 75,743 | (1,165,012 | ) | — | ||||||||||||||
Derivative contracts | — | 4,530 | 10,770 | (6,994 | ) | 8,306 | ||||||||||||||
Prepaid expenses | — | 37,776 | 81 | — | 37,857 | |||||||||||||||
Other current assets | 1,375 | 27,462 | 17,123 | — | 45,960 | |||||||||||||||
Total current assets | 1,000,652 | 1,437,832 | 136,784 | (1,172,006 | ) | 1,403,262 | ||||||||||||||
Property, plant and equipment, net | — | 4,972,981 | 1,208,678 | (55,585 | ) | 6,126,074 | ||||||||||||||
Investment in subsidiaries | 5,157,937 | (88,307 | ) | — | (5,069,630 | ) | — | |||||||||||||
Derivative contracts | — | 12,089 | 15,443 | (12,054 | ) | 15,478 | ||||||||||||||
Other assets | 64,284 | 66,208 | 40 | (5,902 | ) | 124,630 | ||||||||||||||
Total assets | $ | 6,222,873 | $ | 6,400,803 | $ | 1,360,945 | $ | (6,315,177 | ) | $ | 7,669,444 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 170,920 | $ | 597,412 | $ | 5,783 | $ | — | $ | 774,115 | ||||||||||
Intercompany accounts payable | 978,981 | 113,285 | 71,780 | (1,164,046 | ) | — | ||||||||||||||
Derivative contracts | — | 43,465 | — | (6,994 | ) | 36,471 | ||||||||||||||
Asset retirement obligations | — | 71,446 | — | — | 71,446 | |||||||||||||||
Total current liabilities | 1,149,901 | 825,608 | 77,563 | (1,171,040 | ) | 882,032 | ||||||||||||||
Long-term debt | 3,200,686 | — | — | (5,902 | ) | 3,194,784 | ||||||||||||||
Derivative contracts | — | 36,596 | — | (12,054 | ) | 24,542 | ||||||||||||||
Asset retirement obligations | — | 358,301 | — | — | 358,301 | |||||||||||||||
Other long-term obligations | 1,876 | 22,361 | — | — | 24,237 | |||||||||||||||
Total liabilities | 4,352,463 | 1,242,866 | 77,563 | (1,188,996 | ) | 4,483,896 | ||||||||||||||
Equity | ||||||||||||||||||||
SandRidge Energy, Inc. stockholders’ equity | 1,870,410 | 5,157,937 | 1,283,382 | (6,497,870 | ) | 1,813,859 | ||||||||||||||
Noncontrolling interest | — | — | — | 1,371,689 | 1,371,689 | |||||||||||||||
Total equity | 1,870,410 | 5,157,937 | 1,283,382 | (5,126,181 | ) | 3,185,548 | ||||||||||||||
Total liabilities and equity | $ | 6,222,873 | $ | 6,400,803 | $ | 1,360,945 | $ | (6,315,177 | ) | $ | 7,669,444 | |||||||||
December 31, 2012 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 300,228 | $ | 922 | $ | 8,616 | — | $ | 309,766 | |||||||||||
Accounts receivable, net | — | 411,197 | 34,309 | — | 445,506 | |||||||||||||||
Intercompany accounts receivable | 2,162,471 | 397,238 | 683,406 | (3,243,115 | ) | — | ||||||||||||||
Derivative contracts | — | 60,736 | 28,484 | (18,198 | ) | 71,022 | ||||||||||||||
Prepaid expenses | — | 31,135 | 184 | — | 31,319 | |||||||||||||||
Restricted deposit | — | 255,000 | — | — | 255,000 | |||||||||||||||
Other current assets | 1,375 | 24,188 | 4,709 | — | 30,272 | |||||||||||||||
Total current assets | 2,464,074 | 1,180,416 | 759,708 | (3,261,313 | ) | 1,142,885 | ||||||||||||||
Property, plant and equipment, net | — | 7,236,685 | 1,298,877 | (55,585 | ) | 8,479,977 | ||||||||||||||
Investment in subsidiaries | 5,425,907 | (86,235 | ) | — | (5,339,672 | ) | — | |||||||||||||
Derivative contracts | — | 15,957 | 33,114 | (25,454 | ) | 23,617 | ||||||||||||||
Other assets | 83,642 | 66,512 | — | (5,902 | ) | 144,252 | ||||||||||||||
Total assets | $ | 7,973,623 | $ | 8,413,335 | $ | 2,091,699 | $ | (8,687,926 | ) | $ | 9,790,731 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 261,215 | $ | 492,866 | $ | 12,463 | $ | — | $ | 766,544 | ||||||||||
Intercompany accounts payable | 975,578 | 1,594,180 | 671,673 | (3,241,431 | ) | — | ||||||||||||||
Derivative contracts | 2,394 | 30,664 | — | (18,198 | ) | 14,860 | ||||||||||||||
Asset retirement obligations | — | 118,504 | — | — | 118,504 | |||||||||||||||
Deposit on pending sale | — | 255,000 | — | — | 255,000 | |||||||||||||||
Other current liabilities | — | 15,546 | — | — | 15,546 | |||||||||||||||
Total current liabilities | 1,239,187 | 2,506,760 | 684,136 | (3,259,629 | ) | 1,170,454 | ||||||||||||||
Long-term debt | 4,306,985 | — | — | (5,902 | ) | 4,301,083 | ||||||||||||||
Derivative contracts | — | 85,241 | — | (25,454 | ) | 59,787 | ||||||||||||||
Asset retirement obligations | — | 379,710 | 196 | — | 379,906 | |||||||||||||||
Other long-term obligations | 1,329 | 15,717 | — | — | 17,046 | |||||||||||||||
Total liabilities | 5,547,501 | 2,987,428 | 684,332 | (3,290,985 | ) | 5,928,276 | ||||||||||||||
Equity | ||||||||||||||||||||
SandRidge Energy, Inc. stockholders’ equity | 2,426,122 | 5,425,907 | 1,407,367 | (6,890,543 | ) | 2,368,853 | ||||||||||||||
Noncontrolling interest | — | — | — | 1,493,602 | 1,493,602 | |||||||||||||||
Total equity | 2,426,122 | 5,425,907 | 1,407,367 | (5,396,941 | ) | 3,862,455 | ||||||||||||||
Total liabilities and equity | $ | 7,973,623 | $ | 8,413,335 | $ | 2,091,699 | $ | (8,687,926 | ) | $ | 9,790,731 | |||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Total revenues | $ | — | $ | 411,847 | $ | 81,830 | $ | (74 | ) | $ | 493,603 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 147,427 | 5,922 | (680 | ) | 152,669 | ||||||||||||||
General and administrative | 83 | 38,894 | 993 | — | 39,970 | |||||||||||||||
Depreciation, depletion, amortization and accretion | — | 140,350 | 21,031 | — | 161,381 | |||||||||||||||
Impairment | — | 515 | 172 | — | 687 | |||||||||||||||
Loss on derivative contracts | — | 103,215 | 29,593 | — | 132,808 | |||||||||||||||
Total expenses | 83 | 430,401 | 57,711 | (680 | ) | 487,515 | ||||||||||||||
(Loss) income from operations | (83 | ) | (18,554 | ) | 24,119 | 606 | 6,088 | |||||||||||||
Equity earnings from subsidiaries | (2,483 | ) | 7,803 | — | (5,320 | ) | — | |||||||||||||
Interest (expense) income | (61,716 | ) | 331 | — | — | (61,385 | ) | |||||||||||||
Other income, net | — | 7,937 | 10 | (7,289 | ) | 658 | ||||||||||||||
(Loss) income before income taxes | (64,282 | ) | (2,483 | ) | 24,129 | (12,003 | ) | (54,639 | ) | |||||||||||
Income tax expense | 2,228 | — | 135 | — | 2,363 | |||||||||||||||
Net (loss) income | (66,510 | ) | (2,483 | ) | 23,994 | (12,003 | ) | (57,002 | ) | |||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 16,191 | 16,191 | |||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc. | $ | (66,510 | ) | $ | (2,483 | ) | $ | 23,994 | $ | (28,194 | ) | $ | (73,193 | ) | ||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Total revenues | $ | — | $ | 447,391 | $ | 112,501 | $ | (27,094 | ) | $ | 532,798 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 167,014 | 36,369 | (26,668 | ) | 176,715 | ||||||||||||||
General and administrative | 244 | 45,600 | 1,354 | (417 | ) | 46,781 | ||||||||||||||
Depreciation, depletion, amortization and accretion | — | 165,269 | 26,407 | — | 191,676 | |||||||||||||||
Loss on derivative contracts | — | 159,757 | 33,740 | — | 193,497 | |||||||||||||||
Total expenses | 244 | 537,640 | 97,870 | (27,085 | ) | 608,669 | ||||||||||||||
(Loss) income from operations | (244 | ) | (90,249 | ) | 14,631 | (9 | ) | (75,871 | ) | |||||||||||
Equity earnings from subsidiaries | (84,956 | ) | 3,836 | — | 81,120 | — | ||||||||||||||
Interest (expense) income | (82,110 | ) | 215 | 1 | — | (81,894 | ) | |||||||||||||
Loss on extinguishment of debt | (3,056 | ) | — | — | — | (3,056 | ) | |||||||||||||
Other income, net | — | 1,242 | — | — | 1,242 | |||||||||||||||
(Loss) income before income taxes | (170,366 | ) | (84,956 | ) | 14,632 | 81,111 | (159,579 | ) | ||||||||||||
Income tax expense | 42 | — | 131 | — | 173 | |||||||||||||||
Net (loss) income | (170,408 | ) | (84,956 | ) | 14,501 | 81,111 | (159,752 | ) | ||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 10,668 | 10,668 | |||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc. | $ | (170,408 | ) | $ | (84,956 | ) | $ | 14,501 | $ | 70,443 | $ | (170,420 | ) | |||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Total revenues | $ | — | $ | 1,277,289 | $ | 241,314 | $ | (323 | ) | $ | 1,518,280 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 475,463 | 24,671 | (1,041 | ) | 499,093 | ||||||||||||||
General and administrative | 258 | 287,365 | 5,052 | — | 292,675 | |||||||||||||||
Depreciation, depletion, amortization and accretion | — | 441,538 | 67,209 | — | 508,747 | |||||||||||||||
Impairment | — | 13,218 | 3,112 | — | 16,330 | |||||||||||||||
Loss on derivative contracts | — | 45,462 | 24,589 | — | 70,051 | |||||||||||||||
Loss on sale of assets | — | 291,516 | 106,848 | — | 398,364 | |||||||||||||||
Total expenses | 258 | 1,554,562 | 231,481 | (1,041 | ) | 1,785,260 | ||||||||||||||
(Loss) income from operations | (258 | ) | (277,273 | ) | 9,833 | 718 | (266,980 | ) | ||||||||||||
Equity earnings from subsidiaries | (267,969 | ) | (606 | ) | — | 268,575 | — | |||||||||||||
Interest (expense) income | (209,211 | ) | 757 | — | — | (208,454 | ) | |||||||||||||
Loss on extinguishment of debt | (82,005 | ) | — | — | — | (82,005 | ) | |||||||||||||
Other income (expense), net | — | 9,153 | (701 | ) | (7,289 | ) | 1,163 | |||||||||||||
(Loss) income before income taxes | (559,443 | ) | (267,969 | ) | 9,132 | 262,004 | (556,276 | ) | ||||||||||||
Income tax expense | 6,955 | — | 345 | — | 7,300 | |||||||||||||||
Net (loss) income | (566,398 | ) | (267,969 | ) | 8,787 | 262,004 | (563,576 | ) | ||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 9,393 | 9,393 | |||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc. | $ | (566,398 | ) | $ | (267,969 | ) | $ | 8,787 | $ | 252,611 | $ | (572,969 | ) | |||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Total revenues | $ | — | $ | 1,172,206 | $ | 313,872 | $ | (93,211 | ) | $ | 1,392,867 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 431,455 | 118,861 | (91,615 | ) | 458,701 | ||||||||||||||
General and administrative | 429 | 153,665 | 5,801 | (1,097 | ) | 158,798 | ||||||||||||||
Depreciation, depletion, amortization and accretion | — | 396,524 | 61,910 | — | 458,434 | |||||||||||||||
Gain on derivative contracts | — | (181,389 | ) | (40,318 | ) | — | (221,707 | ) | ||||||||||||
(Gain) loss on sale of assets | — | (834 | ) | 4,589 | — | 3,755 | ||||||||||||||
Total expenses | 429 | 799,421 | 150,843 | (92,712 | ) | 857,981 | ||||||||||||||
(Loss) income from operations | (429 | ) | 372,785 | 163,029 | (499 | ) | 534,886 | |||||||||||||
Equity earnings from subsidiaries | 621,224 | 50,476 | — | (671,700 | ) | — | ||||||||||||||
Interest (expense) income | (217,343 | ) | 480 | (565 | ) | — | (217,428 | ) | ||||||||||||
Gain on sale of investment in subsidiary | 55,585 | — | — | (55,585 | ) | — | ||||||||||||||
Bargain purchase gain | — | 122,696 | — | — | 122,696 | |||||||||||||||
Loss on extinguishment of debt | (3,056 | ) | — | — | — | (3,056 | ) | |||||||||||||
Other income, net | — | 74,787 | — | (71,158 | ) | 3,629 | ||||||||||||||
Income before income taxes | 455,981 | 621,224 | 162,464 | (798,942 | ) | 440,727 | ||||||||||||||
Income tax (benefit) expense | (100,738 | ) | — | 365 | — | (100,373 | ) | |||||||||||||
Net income | 556,719 | 621,224 | 162,099 | (798,942 | ) | 541,100 | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 111,626 | 111,626 | |||||||||||||||
Net income attributable to SandRidge Energy, Inc. | $ | 556,719 | $ | 621,224 | $ | 162,099 | $ | (910,568 | ) | $ | 429,474 | |||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (157,030 | ) | $ | 539,973 | $ | 211,364 | $ | 700 | $ | 595,007 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures for property, plant, and equipment | — | (1,163,539 | ) | — | — | (1,163,539 | ) | |||||||||||||
Proceeds from sale of assets | — | 2,566,900 | 455 | — | 2,567,355 | |||||||||||||||
Other | — | 18,756 | 37 | (34,320 | ) | (15,527 | ) | |||||||||||||
Net cash provided by investing activities | — | 1,422,117 | 492 | (34,320 | ) | 1,388,289 | ||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Repayments of borrowings | (1,115,500 | ) | — | — | — | (1,115,500 | ) | |||||||||||||
Distributions to unitholders | — | — | (226,404 | ) | 73,402 | (153,002 | ) | |||||||||||||
Premium on debt redemption | (61,997 | ) | — | — | — | (61,997 | ) | |||||||||||||
Intercompany borrowings (advances), net | 2,021,132 | (2,025,243 | ) | 4,111 | — | — | ||||||||||||||
Other | (76,390 | ) | 63,069 | 10,797 | (39,782 | ) | (42,306 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 767,245 | (1,962,174 | ) | (211,496 | ) | 33,620 | (1,372,805 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 610,215 | (84 | ) | 360 | — | 610,491 | ||||||||||||||
Cash and cash equivalents at beginning of year | 300,228 | 922 | 8,616 | — | 309,766 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 910,443 | $ | 838 | $ | 8,976 | $ | — | $ | 920,257 | ||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2012 (Revised) | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (173,036 | ) | $ | 519,827 | $ | 173,523 | $ | 63,916 | $ | 584,230 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures for property, plant, and equipment | — | (1,592,297 | ) | (33,440 | ) | — | (1,625,737 | ) | ||||||||||||
Acquisition of assets | (693,090 | ) | (143,929 | ) | — | — | (837,019 | ) | ||||||||||||
Proceeds from sale of assets | 129,830 | 346,591 | 1,335 | (55,585 | ) | 422,171 | ||||||||||||||
Conveyance of property for royalty trust | — | 575,485 | (587,086 | ) | 11,601 | — | ||||||||||||||
Other | (61,371 | ) | 251,159 | — | (189,788 | ) | — | |||||||||||||
Net cash used in investing activities | (624,631 | ) | (562,991 | ) | (619,191 | ) | (233,772 | ) | (2,040,585 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from borrowings | 1,850,344 | — | — | — | 1,850,344 | |||||||||||||||
Repayments of borrowings | (350,000 | ) | — | (16,029 | ) | — | (366,029 | ) | ||||||||||||
Debt issuance costs | (48,220 | ) | — | — | — | (48,220 | ) | |||||||||||||
Proceeds from issuance of royalty trust units | — | — | 587,086 | — | 587,086 | |||||||||||||||
Proceeds from sale of royalty trust units | — | — | — | 123,548 | 123,548 | |||||||||||||||
Distributions to unitholders | — | — | (193,263 | ) | 66,240 | (127,023 | ) | |||||||||||||
Intercompany (advances) borrowings, net | (136,464 | ) | 82,255 | 54,209 | — | — | ||||||||||||||
Dividends paid - preferred | (45,025 | ) | — | — | — | (45,025 | ) | |||||||||||||
Other | (13,624 | ) | (38,704 | ) | 19,933 | (19,932 | ) | (52,327 | ) | |||||||||||
Net cash provided by financing activities | 1,257,011 | 43,551 | 451,936 | 169,856 | 1,922,354 | |||||||||||||||
Net increase in cash and cash equivalents | 459,344 | 387 | 6,268 | — | 465,999 | |||||||||||||||
Cash and cash equivalents at beginning of year | 204,015 | 437 | 3,229 | — | 207,681 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 663,359 | $ | 824 | $ | 9,497 | $ | — | $ | 673,680 | ||||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Subsequent Events [Abstract] | ' | ||||||||
Subsequent Events | ' | ||||||||
Subsequent Events | |||||||||
Royalty Trust Distributions. On October 24, 2013, the Royalty Trusts announced quarterly distributions for the three-month period ended September 30, 2013. The following distributions are expected to be paid on November 29, 2013 to holders of record as of the close of business on November 14, 2013 (in thousands): | |||||||||
Royalty Trust | Total Distribution | Amount to be Distributed to Third-Party Unitholders | |||||||
Mississippian Trust I | $ | 12,660 | $ | 12,342 | |||||
Permian Trust | 34,223 | 24,483 | |||||||
Mississippian Trust II | 26,377 | 16,643 | |||||||
Total | $ | 73,260 | $ | 53,468 | |||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Business | ' |
Nature of Business. SandRidge is an independent oil and natural gas company concentrating on development and production activities in the Mid-Continent and Gulf of Mexico. The Company’s primary area of focus is the Mississippian formation in northern Oklahoma and southern Kansas. The Company owns and operates additional interests in the Mid-Continent, Gulf Coast, Permian Basin and West Texas Overthrust. The Company also operates businesses and infrastructure systems that are complementary to its primary development and production activities, including gas gathering and processing facilities, an oil and natural gas marketing business, a saltwater disposal system, an electrical transmission system and an oil field services business, which includes a drilling rig business. | |
Principles of Consolidation | ' |
Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned or majority owned subsidiaries and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Interim Financial Statements | ' |
Interim Financial Statements. The accompanying condensed consolidated financial statements as of December 31, 2012 have been derived from the audited financial statements contained in the Company’s 2012 Form 10-K. The unaudited interim condensed consolidated financial statements have been prepared by the Company in accordance with the accounting policies stated in the audited consolidated financial statements contained in the 2012 Form 10-K. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, all adjustments, which consist only of normal recurring adjustments, necessary to state fairly the information in the Company’s accompanying unaudited condensed consolidated financial statements have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the 2012 Form 10-K. | |
Significant Accounting Policies. For a description of the Company’s significant accounting policies, see Note 1 of the consolidated financial statements included in the 2012 Form 10-K. | |
Reclassifications | ' |
Reclassifications. Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications have no effect on the Company’s previously reported results of operations. | |
Measurement Period Adjustments | ' |
Measurement Period Adjustments. Certain prior period financial information in the accompanying unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows has been revised as a result of retrospectively adjusting provisional amounts recognized for the acquisition of Dynamic Offshore Resources, LLC (“Dynamic”) during the measurement period. See Note 2 for further discussion of these adjustments. | |
Use of Estimates | ' |
Use of Estimates. The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. | |
The more significant areas requiring the use of assumptions, judgments and estimates include: oil and natural gas reserves; cash flow estimates used in impairment tests of long-lived assets; depreciation, depletion and amortization; asset retirement obligations; assignments of fair value and allocations of purchase price in connection with business combinations; determinations of significant alterations to the full cost pool and related estimates of fair value for allocations of divested oil and natural gas properties that result in substantial economic differences between the properties divested and the properties remaining; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes these estimates are reasonable, actual results could differ significantly. | |
Risks and Uncertainties | ' |
Risks and Uncertainties. The Company’s revenue, profitability and future growth are substantially dependent upon the prevailing and future prices for oil and natural gas, each of which depends on numerous factors beyond the Company’s control such as overall oil and natural gas production and inventories in relevant markets, economic conditions, the global political environment, regulatory developments and competition from other energy sources. Oil and natural gas prices historically have been volatile, and may be subject to significant fluctuations in the future. The Company enters into derivative arrangements in order to mitigate a portion of the effect of this price volatility on the Company’s cash flows. See Note 9 for the Company’s open oil and natural gas derivative contracts. | |
Production targets contained in certain gathering and treating agreements require the Company to incur capital expenditures or make associated shortfall payments. Additionally, the Company has a drilling obligation to each of SandRidge Permian Trust (the “Permian Trust”) and SandRidge Mississippian Trust II (the “Mississippian Trust II”). See Note 3 for discussion of these drilling obligations. The Company depends on cash flows from operating activities, funding commitments from third parties for drilling carries and, as necessary, borrowings under its senior secured revolving credit facility (the “senior credit facility”) to fund its capital expenditures. Additionally, the Company may use proceeds from the issuance of equity and debt securities in the capital markets and from the sale or other monetization of assets to fund its capital expenditures. Based on current cash balances, cash flows from operating activities and funding commitments from third parties for drilling carries, the Company expects to be able to fund its planned capital expenditures budget, debt service requirements and working capital needs for the remainder of 2013 and 2014. However, a substantial or extended decline in oil or natural gas prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows and quantities of oil and natural gas reserves that may be economically produced, which could adversely impact the Company’s ability to comply with the financial covenants under its senior credit facility. See Note 8 for discussion of the financial covenants in the senior credit facility. | |
Fair Value Transfer, Policy | ' |
The Company’s policy is to recognize transfers between fair value hierarchy levels as of the end of the quarterly reporting period in which the event or change in circumstances causing the transfer occurred. |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Dynamic Acquisition | ' | ||||||||||||||
Business Acquisitions and Dispositions | ' | ||||||||||||||
Assets Acquired and Liabilities Assumed | ' | ||||||||||||||
The following table summarizes the assets acquired and liabilities assumed in connection with the Dynamic Acquisition (in thousands, except stock price): | |||||||||||||||
Consideration(1) | |||||||||||||||
Shares of SandRidge common stock issued | 73,962 | ||||||||||||||
SandRidge common stock price | $ | 7.33 | |||||||||||||
Fair value of common stock issued | 542,138 | ||||||||||||||
Cash consideration(2) | 680,000 | ||||||||||||||
Cash balance adjustment(3) | 13,091 | ||||||||||||||
Total purchase price | $ | 1,235,229 | |||||||||||||
Fair Value of Liabilities Assumed | |||||||||||||||
Current liabilities | $ | 129,363 | |||||||||||||
Asset retirement obligations(4) | 315,922 | ||||||||||||||
Long-term deferred tax liability(5) | 100,288 | ||||||||||||||
Other long-term liabilities | 4,469 | ||||||||||||||
Amount attributable to liabilities assumed | 550,042 | ||||||||||||||
Total purchase price plus liabilities assumed | 1,785,271 | ||||||||||||||
Fair Value of Assets Acquired | |||||||||||||||
Current assets | 142,027 | ||||||||||||||
Oil and natural gas properties(6) | 1,746,753 | ||||||||||||||
Other property, plant and equipment | 1,296 | ||||||||||||||
Other non-current assets | 17,891 | ||||||||||||||
Amount attributable to assets acquired | 1,907,967 | ||||||||||||||
Bargain purchase gain(7) | $ | (122,696 | ) | ||||||||||||
____________________ | |||||||||||||||
-1 | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. | ||||||||||||||
-2 | Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022. | ||||||||||||||
-3 | In accordance with the acquisition agreement, the Company remitted to the seller a cash payment equal to Dynamic’s average daily cash balance for the 30-day period ending on the second day prior to closing. This resulted in an additional cash payment by the Company of $13.1 million at closing. | ||||||||||||||
-4 | The estimated fair value of the acquired asset retirement obligations was determined using the Company’s credit adjusted risk-free rate. | ||||||||||||||
-5 | The net deferred tax liability is primarily a result of the difference between the estimated fair value and the Company’s expected tax basis in the assets acquired and liabilities assumed. The net deferred tax liability also includes the effects of deferred tax assets associated with net operating losses and other tax attributes acquired as a result of the Dynamic Acquisition. | ||||||||||||||
-6 | The fair value of oil and natural gas properties acquired was estimated using a discounted cash flow model, with future cash flows estimated based upon projections of oil and natural gas reserve quantities and weighted average oil and natural gas prices of $113.62 per barrel of oil and $3.83 per Mcf of natural gas, after adjustment for transportation fees and regional price differentials. The commodity prices utilized were based upon commodity strip prices as of April 17, 2012 for the first four years and escalated for inflation at a rate of 2.0% annually beginning with the fifth year through the end of production. Future cash flows were discounted using an industry weighted average cost of capital rate. | ||||||||||||||
-7 | The bargain purchase gain results from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. | ||||||||||||||
Unaudited Pro Forma Results of Operations | ' | ||||||||||||||
The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the Dynamic Acquisition or any estimated costs incurred to integrate Dynamic. Future results may vary significantly from the results reflected in this pro forma financial information because of future events and transactions, as well as other factors. | |||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Revenues | $ | 1,570,801 | |||||||||||||
Net income(1) | $ | 334,038 | |||||||||||||
Income available to SandRidge Energy, Inc. common stockholders(1) | $ | 180,768 | |||||||||||||
Earnings per common share(1) | |||||||||||||||
Basic | $ | 0.38 | |||||||||||||
Diluted | $ | 0.38 | |||||||||||||
_________________ | |||||||||||||||
-1 | Pro forma net income, income available to SandRidge Energy, Inc. common stockholders and earnings per common share exclude $12.9 million of acquisition costs, a $122.7 million bargain purchase gain, a $100.3 million partial valuation allowance release and $10.9 million of fees to secure financing included in the accompanying unaudited condensed consolidated statement of operations for the nine-month period ended September 30, 2012. | ||||||||||||||
Gulf of Mexico Properties | ' | ||||||||||||||
Business Acquisitions and Dispositions | ' | ||||||||||||||
Assets Acquired and Liabilities Assumed | ' | ||||||||||||||
The following table summarizes the consideration paid to acquire the properties and the final valuation of assets acquired and liabilities assumed as of June 20, 2012 (in thousands): | |||||||||||||||
Consideration paid | |||||||||||||||
Cash, net of purchase price adjustments | $ | 43,282 | |||||||||||||
Fair value of identifiable assets acquired and liabilities assumed | |||||||||||||||
Proved developed and undeveloped properties | $ | 98,725 | |||||||||||||
Asset retirement obligation | (55,443 | ) | |||||||||||||
Total identifiable net assets | $ | 43,282 | |||||||||||||
Unaudited Pro Forma Results of Operations | ' | ||||||||||||||
Future results may vary significantly from the results reflected in this pro forma financial information because of future events and transactions, as well as other factors. | |||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Revenues | $ | 1,421,283 | |||||||||||||
Net income | $ | 543,947 | |||||||||||||
Income available to SandRidge Energy, Inc. common stockholders | $ | 390,227 | |||||||||||||
Earnings per common share | |||||||||||||||
Basic | $ | 0.87 | |||||||||||||
Diluted | $ | 0.8 | |||||||||||||
Permian Properties | ' | ||||||||||||||
Business Acquisitions and Dispositions | ' | ||||||||||||||
Disposal, Revenue and Expense Information | ' | ||||||||||||||
The following table presents revenues and direct operating expenses of the Permian Properties included in the accompanying unaudited condensed consolidated statements of operations for the three-month period ended September 30, 2012 and the nine-month periods ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2013(1) | 2012 | |||||||||||||
Revenues | $ | 143,347 | $ | 68,027 | $ | 438,742 | |||||||||
Direct operating expenses | $ | 27,603 | $ | 17,453 | $ | 92,884 | |||||||||
__________________ | |||||||||||||||
-1 | Includes revenues and direct operating expenses through February 26, 2013, the date of sale. | ||||||||||||||
Drilling Carry Transaction Activities | ' | ||||||||||||||
Business Acquisitions and Dispositions | ' | ||||||||||||||
Drilling and Completion Costs Associated with Sale of Working Interests | ' | ||||||||||||||
These transactions and the associated drilling carries as of September 30, 2013 were as follows: | |||||||||||||||
Partner | Closing Date | Total Drilling Carry | Drilling Carry Recorded | Drilling Carry Remaining | |||||||||||
(in thousands) | |||||||||||||||
Atinum MidCon I, LLC | September 2011 | $ | 250,000 | $ | 250,000 | $ | — | ||||||||
Repsol E&P USA, Inc. | Jan-12 | 750,000 | 470,700 | 279,300 | |||||||||||
$ | 1,000,000 | $ | 720,700 | $ | 279,300 | ||||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Variable Interest Entity | ' | ||||||||||||||||
Open Oil and Natural Gas Commodity Derivative Contracts | ' | ||||||||||||||||
At September 30, 2013, the Company’s open commodity derivative contracts consisted of the following: | |||||||||||||||||
Oil Price Swaps | |||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||
Fixed Price | |||||||||||||||||
October 2013 - December 2013 | 3,494 | $ | 99.48 | ||||||||||||||
January 2014 - December 2014 | 8,813 | $ | 92.98 | ||||||||||||||
January 2015 - December 2015 | 6,614 | $ | 85.25 | ||||||||||||||
Natural Gas Price Swaps | |||||||||||||||||
Notional (MMcf) | Weighted Average | ||||||||||||||||
Fixed Price | |||||||||||||||||
October 2013 - December 2013 | 12,420 | $ | 4.11 | ||||||||||||||
Oil Collars - Two-way | |||||||||||||||||
Notional (MBbls) | Collar Range | ||||||||||||||||
October 2013 - December 2013 | 42 | $80.00 | — | $102.50 | |||||||||||||
Oil Collars - Three-way | |||||||||||||||||
Notional (MBbls) | Sold Put | Purchased Put | Sold Call | ||||||||||||||
January 2014 - December 2014 | 8,213 | $70.00 | $90.20 | $100.00 | |||||||||||||
January 2015 - December 2015 | 2,920 | $73.13 | $90.82 | $103.13 | |||||||||||||
Natural Gas Collars | |||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||
October 2013 - December 2013 | 1,716 | $3.78 | — | $6.71 | |||||||||||||
January 2014 - December 2014 | 937 | $4.00 | — | $7.78 | |||||||||||||
January 2015 - December 2015 | 1,010 | $4.00 | — | $8.55 | |||||||||||||
Grey Ranch Plant, L.P | ' | ||||||||||||||||
Variable Interest Entity | ' | ||||||||||||||||
Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets | ' | ||||||||||||||||
GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheets at September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cash and cash equivalents | $ | 111 | $ | 1,080 | |||||||||||||
Accounts receivable, net | 16 | 20 | |||||||||||||||
Prepaid expenses | 33 | 64 | |||||||||||||||
Other current assets | 109 | 109 | |||||||||||||||
Total current assets | 269 | 1,273 | |||||||||||||||
Other property, plant and equipment, net | 1,184 | 1,246 | |||||||||||||||
Total assets | $ | 1,453 | $ | 2,519 | |||||||||||||
Accounts payable and accrued expenses | $ | 165 | $ | 274 | |||||||||||||
Total liabilities | $ | 165 | $ | 274 | |||||||||||||
Royalty Trusts | ' | ||||||||||||||||
Variable Interest Entity | ' | ||||||||||||||||
Royalty Trust Initial Public Offerings | ' | ||||||||||||||||
The following table summarizes information about each Royalty Trust upon completion of its initial public offering: | |||||||||||||||||
Mississippian Trust I | Permian Trust | Mississippian Trust II | |||||||||||||||
Net proceeds of offering (in millions) | $ | 336.9 | $ | 580.6 | $ | 587.1 | |||||||||||
Total outstanding common units | 21,000,000 | 39,375,000 | 37,293,750 | ||||||||||||||
Total outstanding subordinated units | 7,000,000 | 13,125,000 | 12,431,250 | ||||||||||||||
Beneficial interest owned by Company(1) | 38.4 | % | 34.3 | % | 39.9 | % | |||||||||||
Liquidation date(2) | 12/31/30 | 3/31/31 | 12/31/31 | ||||||||||||||
____________________ | |||||||||||||||||
-1 | Subsequent to the initial public offerings, the Company sold common units of the Royalty Trusts it owned in transactions exempt from registration under Rule 144 under the Securities Act. These transactions decreased the Company’s beneficial interests in the Royalty Trusts. See further discussion of the unit sales below. | ||||||||||||||||
-2 | At the time each Royalty Trust terminates, 50% of the royalty interests conveyed to the Royalty Trust will automatically revert to the Company, and the remaining 50% will be sold with the proceeds distributed to the Royalty Trust unitholders. | ||||||||||||||||
Royalty Trusts Distributions | ' | ||||||||||||||||
The Royalty Trusts declared and paid quarterly distributions during the three and nine-month periods ended September 30, 2013 and 2012 as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013(1) | 2012 | 2013(1) | 2012(2) | ||||||||||||||
Total distributions | $ | 81,594 | $ | 75,246 | $ | 226,404 | $ | 193,262 | |||||||||
Distributions to third-party unitholders | $ | 54,287 | $ | 50,222 | $ | 153,002 | $ | 127,023 | |||||||||
____________________ | |||||||||||||||||
-1 | Subordination thresholds were not met for the Mississippian Trust I’s second and third quarter 2013 distributions and for the Permian Trust’s second quarter 2013 distribution, resulting in reduced distributions to the Company on its subordinated units for these periods. | ||||||||||||||||
-2 | The Company received incentive distributions from the Mississippian Trust I during the nine-month period ended September 30, 2012. | ||||||||||||||||
Open Oil and Natural Gas Commodity Derivative Contracts | ' | ||||||||||||||||
The tables below present the open oil and natural gas commodity derivative contracts at September 30, 2013 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 Derivatives Agreements | |||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||
Fixed Price | |||||||||||||||||
October 2013 - December 2013 | 413 | $ | 103.04 | ||||||||||||||
January 2014 - December 2014 | 1,862 | $ | 100.7 | ||||||||||||||
January 2015 - December 2015 | 630 | $ | 101.03 | ||||||||||||||
Natural Gas Collars Underlying the Derivatives Agreements | |||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||
October 2013 - December 2013 | 216 | $ | 4 | — | $ | 7.15 | |||||||||||
January 2014 - December 2014 | 937 | $ | 4 | — | $ | 7.78 | |||||||||||
January 2015 - December 2015 | 1,010 | $ | 4 | — | $ | 8.55 | |||||||||||
Oil Price Swaps Underlying the Derivatives Agreements and Novated to the Royalty Trusts | |||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||
Fixed Price | |||||||||||||||||
October 2013 - December 2013 | 302 | $ | 103.27 | ||||||||||||||
January 2014 - December 2014 | 991 | $ | 100.79 | ||||||||||||||
January 2015 - March 2015 | 141 | $ | 100.9 | ||||||||||||||
Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets | ' | ||||||||||||||||
The Royalty Trusts’ assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheets at September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Cash and cash equivalents(1) | $ | 8,816 | $ | 7,445 | |||||||||||||
Accounts receivable, net | 25,518 | 28,596 | |||||||||||||||
Derivative contracts | 3,776 | 10,286 | |||||||||||||||
Total current assets | 38,110 | 46,327 | |||||||||||||||
Investment in royalty interests(2) | 1,325,942 | 1,325,942 | |||||||||||||||
Less: accumulated depletion | (168,569 | ) | (103,746 | ) | |||||||||||||
1,157,373 | 1,222,196 | ||||||||||||||||
Derivative contracts | 3,389 | 7,660 | |||||||||||||||
Total assets | $ | 1,198,872 | $ | 1,276,183 | |||||||||||||
Accounts payable and accrued expenses | $ | 3,788 | $ | 1,101 | |||||||||||||
Total liabilities | $ | 3,788 | $ | 1,101 | |||||||||||||
____________________ | |||||||||||||||||
-1 | Includes $3.0 million held by the trustee at September 30, 2013 and December 31, 2012 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, and was determined by allocating the historical net book value of the Company’s full cost pool based on the fair value of each Royalty Trust’s royalty interests relative to the fair value of the Company’s full cost pool. | ||||||||||||||||
Royalty Trusts Ownership Interest | ' | ||||||||||||||||
The Company’s beneficial interests in the Royalty Trusts at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Mississippian Trust I | 26.9 | % | 26.9 | % | |||||||||||||
Permian Trust | 28.5 | % | 30.5 | % | |||||||||||||
Mississippian Trust II | 37.6 | % | 39.9 | % | |||||||||||||
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 September 30, 2013 and December 31, 2012 included in the accompanying unaudited condensed consolidated balance sheets are as follows (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable due from PGC | $ | 1,496 | $ | 1,976 | |||||||||||||
Accounts payable due to PGC | $ | 4,249 | $ | 5,053 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||||||
The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy (in thousands): | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Fair Value Measurements | Netting(1) | Assets/Liabilities at Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Restricted deposits | $ | 27,952 | $ | — | $ | — | $ | — | $ | 27,952 | ||||||||||
Commodity derivative contracts | — | 58,086 | — | (34,302 | ) | 23,784 | ||||||||||||||
Investments | 14,139 | — | — | — | 14,139 | |||||||||||||||
$ | 42,091 | $ | 58,086 | $ | — | $ | (34,302 | ) | $ | 65,875 | ||||||||||
Liabilities | ||||||||||||||||||||
Commodity derivative contracts | $ | — | $ | 95,315 | $ | — | $ | (34,302 | ) | $ | 61,013 | |||||||||
$ | — | $ | 95,315 | $ | — | $ | (34,302 | ) | $ | 61,013 | ||||||||||
December 31, 2012 | ||||||||||||||||||||
Fair Value Measurements | Netting(1) | Assets/Liabilities at Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Restricted deposits | $ | 27,947 | $ | — | $ | — | $ | — | $ | 27,947 | ||||||||||
Commodity derivative contracts | — | 130,220 | 183 | (35,764 | ) | 94,639 | ||||||||||||||
Investments | 10,348 | — | — | — | 10,348 | |||||||||||||||
$ | 38,295 | $ | 130,220 | $ | 183 | $ | (35,764 | ) | $ | 132,934 | ||||||||||
Liabilities | ||||||||||||||||||||
Commodity derivative contracts | $ | — | $ | 107,321 | $ | 695 | $ | (35,764 | ) | $ | 72,252 | |||||||||
Interest rate swap | — | 2,395 | — | — | 2,395 | |||||||||||||||
$ | — | $ | 109,716 | $ | 695 | $ | (35,764 | ) | $ | 74,647 | ||||||||||
____________________ | ||||||||||||||||||||
(1)Represents the impact of netting assets and liabilities with counterparties with which the right of offset exists. | ||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings | ' | |||||||||||||||||||
The table below sets forth a reconciliation of the Company’s commodity derivative contracts measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three-month period ended September 30, 2012 and nine-month periods ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2012 | 2013 | 2012 | ||||||||||||||||||
Beginning balance of Level 3 | $ | 5,013 | $ | (512 | ) | $ | (4,253 | ) | ||||||||||||
Loss on derivative contracts | (4,261 | ) | (133 | ) | (3,872 | ) | ||||||||||||||
Purchases | — | — | 5,697 | |||||||||||||||||
Settlements (received) paid | (569 | ) | 645 | 2,611 | ||||||||||||||||
Ending balance of Level 3 | $ | 183 | $ | — | $ | 183 | ||||||||||||||
Senior Notes Carrying Amount and Fair Value Table | ' | |||||||||||||||||||
The estimated fair values and carrying values of the Company’s senior notes at September 30, 2013 and December 31, 2012 were as follows (in thousands): | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||||||
9.875% Senior Notes due 2016(1) | $ | — | $ | — | $ | 392,913 | $ | 356,657 | ||||||||||||
8.0% Senior Notes due 2018 | — | — | 790,313 | 750,000 | ||||||||||||||||
8.75% Senior Notes due 2020(2) | 477,000 | 444,580 | 490,500 | 444,127 | ||||||||||||||||
7.5% Senior Notes due 2021(3) | 1,198,500 | 1,179,027 | 1,257,250 | 1,179,328 | ||||||||||||||||
8.125% Senior Notes due 2022 | 766,875 | 750,000 | 823,125 | 750,000 | ||||||||||||||||
7.5% Senior Notes due 2023(4) | 829,125 | 821,177 | 882,750 | 820,971 | ||||||||||||||||
____________________ | ||||||||||||||||||||
(1)Carrying value is net of $8,843 discount at December 31, 2012. | ||||||||||||||||||||
(2)Carrying value is net of $5,420 and $5,873 discount at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
(3)Carrying value includes a premium, applicable to notes issued in August 2012, of $4,027 and $4,328 at | ||||||||||||||||||||
September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
(4)Carrying value is net of $3,823 and $4,029 discount at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
Fair Value Measurements Level 3 | ' | |||||||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||||||
Significant Unobservable Inputs | ' | |||||||||||||||||||
The significant unobservable inputs and the range and weighted average of these inputs used in the fair value measurements of the Company’s oil basis swaps at December 31, 2012 are included in the table below. All of the outstanding oil basis swaps at December 31, 2012 contractually matured prior to June 30, 2013. | ||||||||||||||||||||
Unobservable Input | Range | Weighted Average | Fair Value | |||||||||||||||||
(price per Bbl) | (price per Bbl) | (in thousands) | ||||||||||||||||||
Oil basis differential forward curve | $10.00 | – | $21.98 | $14.74 | $ | (512 | ) |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
Property, plant and equipment consists of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Oil and natural gas properties | ||||||||
Proved(1) | $ | 10,663,810 | $ | 12,262,921 | ||||
Unproved | 529,032 | 865,863 | ||||||
Total oil and natural gas properties | 11,192,842 | 13,128,784 | ||||||
Less accumulated depreciation, depletion and impairment | (5,643,158 | ) | (5,231,182 | ) | ||||
Net oil and natural gas properties capitalized costs | 5,549,684 | 7,897,602 | ||||||
Land | 18,423 | 17,927 | ||||||
Non-oil and natural gas equipment(2) | 610,740 | 643,370 | ||||||
Buildings and structures(3) | 230,508 | 205,349 | ||||||
Total | 859,671 | 866,646 | ||||||
Less accumulated depreciation and amortization | (283,281 | ) | (284,271 | ) | ||||
Other property, plant and equipment, net | 576,390 | 582,375 | ||||||
Total property, plant and equipment, net | $ | 6,126,074 | $ | 8,479,977 | ||||
____________________ | ||||||||
-1 | Includes cumulative capitalized interest of approximately $20.7 million and $11.7 million at September 30, 2013 and December 31, 2012, respectively. | |||||||
-2 | Includes cumulative capitalized interest of approximately $4.3 million at both September 30, 2013 and December 31, 2012. | |||||||
-3 | Includes cumulative capitalized interest of approximately $10.7 million and $7.1 million at September 30, 2013 and December 31, 2012, respectively. |
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other assets consist of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Debt issuance costs, net of amortization | $ | 64,283 | $ | 83,643 | ||||
Restricted deposits | 27,952 | 27,947 | ||||||
Notes receivable on asset retirement obligations | 11,655 | 11,433 | ||||||
Investments | 14,139 | 10,348 | ||||||
Other | 6,601 | 10,881 | ||||||
Total other assets | $ | 124,630 | $ | 144,252 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-term debt consists of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Senior credit facility | $ | — | $ | — | ||||
Senior notes | ||||||||
9.875% Senior Notes due 2016, net of $8,843 discount at December 31, 2012 | — | 356,657 | ||||||
8.0% Senior Notes due 2018 | — | 750,000 | ||||||
8.75% Senior Notes due 2020, net of $5,420 and $5,873 discount, respectively | 444,580 | 444,127 | ||||||
7.5% Senior Notes due 2021, including a premium of $4,027 and $4,328, respectively | 1,179,027 | 1,179,328 | ||||||
8.125% Senior Notes due 2022 | 750,000 | 750,000 | ||||||
7.5% Senior Notes due 2023, net of $3,823 and $4,029 discount, respectively | 821,177 | 820,971 | ||||||
Total debt | 3,194,784 | 4,301,083 | ||||||
Less: current maturities of long-term debt | — | — | ||||||
Long-term debt | $ | 3,194,784 | $ | 4,301,083 | ||||
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Fair Value of Derivatives | ' | ||||||||||||||||||||
The following table presents the fair value of the Company’s derivative contracts as of September 30, 2013 and December 31, 2012 on a gross basis without regard to same-counterparty netting (in thousands): | |||||||||||||||||||||
Type of Contract | Balance Sheet Classification | September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Derivative assets | |||||||||||||||||||||
Oil price swaps | Derivative contracts-current | $ | 14,585 | $ | 88,052 | ||||||||||||||||
Natural gas price swaps | Derivative contracts-current | 6,374 | — | ||||||||||||||||||
Oil basis swaps | Derivative contracts-current | — | 183 | ||||||||||||||||||
Natural gas collars | Derivative contracts-current | 727 | 3,111 | ||||||||||||||||||
Oil price swaps | Derivative contracts-noncurrent | 23,050 | 37,983 | ||||||||||||||||||
Oil collars - three way | Derivative contracts-noncurrent | 12,837 | 190 | ||||||||||||||||||
Natural gas collars | Derivative contracts-noncurrent | 513 | 884 | ||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||
Oil price swaps | Derivative contracts-current | (43,519 | ) | (31,991 | ) | ||||||||||||||||
Oil basis swaps | Derivative contracts-current | — | (695 | ) | |||||||||||||||||
Oil collars - two way | Derivative contracts-current | (92 | ) | (103 | ) | ||||||||||||||||
Oil collars - three way | Derivative contracts-current | (6,240 | ) | — | |||||||||||||||||
Interest rate swap | Derivative contracts-current | — | (2,395 | ) | |||||||||||||||||
Oil price swaps | Derivative contracts-noncurrent | (45,464 | ) | (67,900 | ) | ||||||||||||||||
Oil collars - three way | Derivative contracts-noncurrent | — | (7,327 | ) | |||||||||||||||||
Total net derivative contracts | $ | (37,229 | ) | $ | 19,992 | ||||||||||||||||
Offsetting Assets and Liabilities | ' | ||||||||||||||||||||
The following tables summarize the Company's derivative contracts on a gross basis, the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements, and the applicable portion of shared collateral under the senior credit facility for SandRidge's derivative contracts and under the liens granted by the Permian Trust and the Mississippian Trust II on their royalty interest for the Royalty Trusts' novated derivative contracts associated with the Company’s net derivative liability positions (in thousands): | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Amounts Net of Offset | Financial Collateral | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||||
Derivative contracts - current | $ | 21,686 | $ | (13,380 | ) | $ | 8,306 | $ | — | $ | 8,306 | ||||||||||
Derivative contracts - noncurrent | 36,400 | (20,922 | ) | 15,478 | — | 15,478 | |||||||||||||||
Total | $ | 58,086 | $ | (34,302 | ) | $ | 23,784 | $ | — | $ | 23,784 | ||||||||||
Liabilities | |||||||||||||||||||||
Derivative contracts - current | $ | 49,851 | $ | (13,380 | ) | $ | 36,471 | $ | (36,471 | ) | $ | — | |||||||||
Derivative contracts - noncurrent | 45,464 | (20,922 | ) | 24,542 | (24,542 | ) | — | ||||||||||||||
Total | $ | 95,315 | $ | (34,302 | ) | $ | 61,013 | $ | (61,013 | ) | $ | — | |||||||||
December 31, 2012 | |||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Amounts Net of Offset | Financial Collateral | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||||
Derivative contracts - current | $ | 91,346 | $ | (20,324 | ) | $ | 71,022 | $ | — | $ | 71,022 | ||||||||||
Derivative contracts - noncurrent | 39,057 | (15,440 | ) | 23,617 | — | 23,617 | |||||||||||||||
Total | $ | 130,403 | $ | (35,764 | ) | $ | 94,639 | $ | — | $ | 94,639 | ||||||||||
Liabilities | |||||||||||||||||||||
Derivative contracts - current | $ | 35,184 | $ | (20,324 | ) | $ | 14,860 | $ | (14,860 | ) | $ | — | |||||||||
Derivative contracts - noncurrent | 75,227 | (15,440 | ) | 59,787 | (59,787 | ) | — | ||||||||||||||
Total | $ | 110,411 | $ | (35,764 | ) | $ | 74,647 | $ | (74,647 | ) | $ | — | |||||||||
Cash Settlements and Valuation Gains and Losses on Derivative Contracts and Interest Rate Swaps | ' | ||||||||||||||||||||
The following table summarizes the cash settlements and valuation gains and losses on the Company’s commodity derivative contracts and interest rate swap, which are included in loss (gain) on derivative contracts and interest expense, respectively, in the accompanying unaudited condensed consolidated statements of operations for the three and nine-month periods ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Commodity Derivatives | |||||||||||||||||||||
Loss (gain) on settlement(1) | $ | 13,203 | $ | (28,970 | ) | $ | 11,571 | $ | 7,366 | ||||||||||||
Loss (gain) due to change in fair value | 119,605 | 222,467 | 58,480 | (229,073 | ) | ||||||||||||||||
Loss (gain) on commodity derivative contracts | $ | 132,808 | $ | 193,497 | $ | 70,051 | $ | (221,707 | ) | ||||||||||||
Interest Rate Swap | |||||||||||||||||||||
Loss on settlement | $ | — | $ | 2,330 | $ | 2,409 | $ | 6,824 | |||||||||||||
Gain due to change in fair value | — | (2,033 | ) | (2,395 | ) | (5,632 | ) | ||||||||||||||
Loss on interest rate swap | $ | — | $ | 297 | $ | 14 | $ | 1,192 | |||||||||||||
____________________ | |||||||||||||||||||||
-1 | The three-month period ended September 30, 2012 included $2.1 million of gains related to settlements of commodity derivative contracts with contractual maturities after the quarterly period in which they were settled (“early settlements”). The nine-month periods ended September 30, 2013 and 2012 included $29.3 million and $(59.5) million, respectively, of losses (gains) related to early settlements. The nine-month period ended September 30, 2012 also included $117.1 million of non-cash losses due to the amendment of derivative contracts in January 2012. | ||||||||||||||||||||
Open Oil and Natural Gas Commodity Derivative Contracts | ' | ||||||||||||||||||||
At September 30, 2013, the Company’s open commodity derivative contracts consisted of the following: | |||||||||||||||||||||
Oil Price Swaps | |||||||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
October 2013 - December 2013 | 3,494 | $ | 99.48 | ||||||||||||||||||
January 2014 - December 2014 | 8,813 | $ | 92.98 | ||||||||||||||||||
January 2015 - December 2015 | 6,614 | $ | 85.25 | ||||||||||||||||||
Natural Gas Price Swaps | |||||||||||||||||||||
Notional (MMcf) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
October 2013 - December 2013 | 12,420 | $ | 4.11 | ||||||||||||||||||
Oil Collars - Two-way | |||||||||||||||||||||
Notional (MBbls) | Collar Range | ||||||||||||||||||||
October 2013 - December 2013 | 42 | $80.00 | — | $102.50 | |||||||||||||||||
Oil Collars - Three-way | |||||||||||||||||||||
Notional (MBbls) | Sold Put | Purchased Put | Sold Call | ||||||||||||||||||
January 2014 - December 2014 | 8,213 | $70.00 | $90.20 | $100.00 | |||||||||||||||||
January 2015 - December 2015 | 2,920 | $73.13 | $90.82 | $103.13 | |||||||||||||||||
Natural Gas Collars | |||||||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||||||
October 2013 - December 2013 | 1,716 | $3.78 | — | $6.71 | |||||||||||||||||
January 2014 - December 2014 | 937 | $4.00 | — | $7.78 | |||||||||||||||||
January 2015 - December 2015 | 1,010 | $4.00 | — | $8.55 | |||||||||||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ' | |||
Reconciliation of Beginning and Ending Aggregate Carrying Amounts of Asset Retirement Obligation | ' | |||
A reconciliation of the beginning and ending aggregate carrying amounts of the asset retirement obligations for the period from December 31, 2012 to September 30, 2013 is as follows (in thousands): | ||||
Asset retirement obligations at December 31, 2012 | $ | 498,410 | ||
Liability incurred upon acquiring and drilling wells | 4,145 | |||
Revisions in estimated cash flows | (206 | ) | ||
Liability settled or disposed in current period(1) | (100,653 | ) | ||
Accretion | 28,051 | |||
Asset retirement obligations at September 30, 2013 | 429,747 | |||
Less: current portion | 71,446 | |||
Asset retirement obligations, net of current | $ | 358,301 | ||
____________________ | ||||
-1 | Liability settled or disposed during the nine-month period ended September 30, 2013 includes $22.7 million for the settlement of a plugging and abandonment obligation associated with the Company’s Bullwinkle platform in the Gulf of Mexico and $15.2 million disposed in conjunction with the sale of the Permian Properties in February 2013. Additionally, $17.1 million and $21.3 million were spent in the East Breaks and West Delta regions, respectively, to decommission various platforms, pipeline and associated wells during the nine-month period ended September 30, 2013. |
Equity_Tables
Equity (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Preferred Stock | ' | |||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||||
The following table presents information regarding the Company’s preferred stock (in thousands): | ||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Shares authorized | 50,000 | 50,000 | ||||||||||||||||||||||
Shares outstanding at end of period | ||||||||||||||||||||||||
8.5% Convertible perpetual preferred stock | 2,650 | 2,650 | ||||||||||||||||||||||
6.0% Convertible perpetual preferred stock | 2,000 | 2,000 | ||||||||||||||||||||||
7.0% Convertible perpetual preferred stock | 3,000 | 3,000 | ||||||||||||||||||||||
Preferred Stock Terms | ' | |||||||||||||||||||||||
The following table summarizes information about each series of the Company’s convertible perpetual preferred stock: | ||||||||||||||||||||||||
Convertible Perpetual Preferred Stock | ||||||||||||||||||||||||
8.50% | 6.00% | 7.00% | ||||||||||||||||||||||
Liquidation preference per share | $ | 100 | $ | 100 | $ | 100 | ||||||||||||||||||
Annual dividend per share | $ | 8.5 | $ | 6 | $ | 7 | ||||||||||||||||||
Conversion rate per share to common stock | 12.4805 | 9.2115 | 12.8791 | |||||||||||||||||||||
Conversion date to common stock at Company's option | 20-Feb-14 | 21-Dec-14 | 20-Nov-15 | |||||||||||||||||||||
Preferred Stock Dividends | ' | |||||||||||||||||||||||
Paid and unpaid dividends included in the calculation of (loss applicable) income available to the Company’s common stockholders and the Company’s basic (loss) earnings per share calculation for the three and nine-month periods ended September 30, 2013 and 2012 as presented in the accompanying unaudited condensed consolidated statements of operations, are included in the tables below (in thousands): | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Dividends Paid | Dividends Unpaid | Total | Dividends Paid | Dividends Unpaid | Total | |||||||||||||||||||
8.5% Convertible perpetual preferred stock | $ | 2,815 | $ | 2,816 | $ | 5,631 | $ | 2,815 | $ | 2,816 | $ | 5,631 | ||||||||||||
6.0% Convertible perpetual preferred stock | 500 | 2,500 | 3,000 | 500 | 2,500 | 3,000 | ||||||||||||||||||
7.0% Convertible perpetual preferred stock | — | 5,250 | 5,250 | — | 5,250 | 5,250 | ||||||||||||||||||
Total | $ | 3,315 | $ | 10,566 | $ | 13,881 | $ | 3,315 | $ | 10,566 | $ | 13,881 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Dividends Paid | Dividends Unpaid | Total | Dividends Paid | Dividends Unpaid | Total | |||||||||||||||||||
8.5% Convertible perpetual preferred stock | $ | 14,078 | $ | 2,816 | $ | 16,894 | $ | 14,078 | $ | 2,816 | $ | 16,894 | ||||||||||||
6.0% Convertible perpetual preferred stock | 6,500 | 2,500 | 9,000 | 6,500 | 2,500 | 9,000 | ||||||||||||||||||
7.0% Convertible perpetual preferred stock | 7,875 | 7,875 | 15,750 | 7,875 | 7,875 | 15,750 | ||||||||||||||||||
Total | $ | 28,453 | $ | 13,191 | $ | 41,644 | $ | 28,453 | $ | 13,191 | $ | 41,644 | ||||||||||||
Common Stock | ' | |||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
The following table presents information regarding the Company’s common stock (in thousands): | ||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Shares authorized | 800,000 | 800,000 | ||||||||||||||||||||||
Shares outstanding | 490,536 | 490,359 | ||||||||||||||||||||||
Shares held in treasury | 1,269 | 1,219 | ||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
(Benefit) Provision for Income Taxes | ' | |||||||||||||||
The provision (benefit) for income taxes consisted of the following components for the three and nine-month periods ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Current | ||||||||||||||||
Federal | $ | 687 | $ | — | $ | 4,702 | $ | (71 | ) | |||||||
State | 1,676 | 173 | 2,598 | (14 | ) | |||||||||||
2,363 | 173 | 7,300 | (85 | ) | ||||||||||||
Deferred | ||||||||||||||||
Federal | — | — | — | (97,345 | ) | |||||||||||
State | — | — | — | (2,943 | ) | |||||||||||
— | — | — | (100,288 | ) | ||||||||||||
Total provision (benefit) | 2,363 | 173 | 7,300 | (100,373 | ) | |||||||||||
Less: income tax provision attributable to noncontrolling interest | 96 | 130 | 242 | 287 | ||||||||||||
Total provision (benefit) attributable to SandRidge Energy, Inc. | $ | 2,267 | $ | 43 | $ | 7,058 | $ | (100,660 | ) | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings Per Share | ' | |||||||||||
The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings per share, for the three and nine-month periods ended September 30, 2013 and 2012 (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average basic common shares outstanding | 483,582 | 476,037 | 480,209 | 445,991 | ||||||||
Effect of dilutive securities | ||||||||||||
Restricted stock | — | — | — | 1,176 | ||||||||
Convertible preferred stock | — | — | — | 90,133 | ||||||||
Weighted average diluted common and potential common shares outstanding | 483,582 | 476,037 | 480,209 | 537,300 | ||||||||
Equity_Compensation_Plans_Tabl
Equity Compensation Plans (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Compensation Related Costs [Abstract] | ' | ||||
Performance Units | ' | ||||
The following table presents a summary of the fair value of the performance units and the related assumptions as of September 30, 2013. | |||||
Expected price volatility range | 32.6 | % | - | 58.30% | |
Risk-free interest rate | 0.40% | ||||
Fair value per unit | $80.60 |
Business_Segment_Information_T
Business Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Summarized Financial Information Concerning Segments | ' | |||||||||||||||||||
Summarized financial information concerning the Company’s segments is shown in the following table (in thousands): | ||||||||||||||||||||
Exploration and Production | Drilling and Oil Field Services | Midstream Services | All Other | Consolidated Total | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Revenues | $ | 462,582 | $ | 44,527 | $ | 37,876 | $ | 767 | $ | 545,752 | ||||||||||
Inter-segment revenue | (79 | ) | (28,335 | ) | (23,735 | ) | — | (52,149 | ) | |||||||||||
Total revenues | $ | 462,503 | $ | 16,192 | $ | 14,141 | $ | 767 | $ | 493,603 | ||||||||||
(Loss) income from operations(1) | $ | (11,604 | ) | $ | (8,276 | ) | $ | (7,691 | ) | $ | 33,659 | $ | 6,088 | |||||||
Interest income (expense) | 331 | — | — | (61,716 | ) | (61,385 | ) | |||||||||||||
Other (expense) income, net | (350 | ) | — | (41 | ) | 1,049 | 658 | |||||||||||||
Loss before income taxes | $ | (11,623 | ) | $ | (8,276 | ) | $ | (7,732 | ) | $ | (27,008 | ) | $ | (54,639 | ) | |||||
Capital expenditures(2) | $ | 292,697 | $ | 3,142 | $ | 16,551 | $ | 10,192 | $ | 322,582 | ||||||||||
Depreciation, depletion, amortization, accretion and impairment | $ | 146,286 | $ | 8,252 | $ | 2,128 | $ | 5,402 | $ | 162,068 | ||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Revenues | $ | 493,848 | $ | 95,307 | $ | 30,901 | $ | 945 | $ | 621,001 | ||||||||||
Inter-segment revenue | (74 | ) | (67,547 | ) | (20,582 | ) | — | (88,203 | ) | |||||||||||
Total revenues | $ | 493,774 | $ | 27,760 | $ | 10,319 | $ | 945 | $ | 532,798 | ||||||||||
(Loss) income from operations(1) | $ | (48,454 | ) | $ | 2,515 | $ | (3,434 | ) | $ | (26,498 | ) | $ | (75,871 | ) | ||||||
Interest income (expense) | 351 | — | (136 | ) | (82,109 | ) | (81,894 | ) | ||||||||||||
Loss on extinguishment of debt | — | — | — | (3,056 | ) | (3,056 | ) | |||||||||||||
Other (expense) income, net | (260 | ) | — | — | 1,502 | 1,242 | ||||||||||||||
(Loss) income before income taxes | $ | (48,363 | ) | $ | 2,515 | $ | (3,570 | ) | $ | (110,161 | ) | $ | (159,579 | ) | ||||||
Capital expenditures(2) | $ | 500,366 | $ | 14,571 | $ | 20,229 | $ | 24,892 | $ | 560,058 | ||||||||||
Depreciation, depletion, amortization and accretion | $ | 175,393 | $ | 8,706 | $ | 2,042 | $ | 5,535 | $ | 191,676 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Revenues | $ | 1,402,366 | $ | 141,364 | $ | 139,001 | $ | 2,399 | $ | 1,685,130 | ||||||||||
Inter-segment revenue | (241 | ) | (91,713 | ) | (74,896 | ) | — | (166,850 | ) | |||||||||||
Total revenues | $ | 1,402,125 | $ | 49,651 | $ | 64,105 | $ | 2,399 | $ | 1,518,280 | ||||||||||
Loss from operations(3) | $ | (71,645 | ) | $ | (36,684 | ) | $ | (18,106 | ) | $ | (140,545 | ) | $ | (266,980 | ) | |||||
Interest income (expense) | 757 | — | — | (209,211 | ) | (208,454 | ) | |||||||||||||
Loss on extinguishment of debt | — | — | — | (82,005 | ) | (82,005 | ) | |||||||||||||
Other income (expense), net | 157 | — | (914 | ) | 1,920 | 1,163 | ||||||||||||||
Loss before income taxes | $ | (70,731 | ) | $ | (36,684 | ) | $ | (19,020 | ) | $ | (429,841 | ) | $ | (556,276 | ) | |||||
Capital expenditures(2) | $ | 1,008,869 | $ | 4,657 | $ | 46,883 | $ | 38,043 | $ | 1,098,452 | ||||||||||
Depreciation, depletion, amortization, accretion and impairment | $ | 462,683 | $ | 36,544 | $ | 7,832 | $ | 18,018 | $ | 525,077 | ||||||||||
At September 30, 2013 | ||||||||||||||||||||
Total assets | $ | 6,009,608 | $ | 166,485 | $ | 185,131 | $ | 1,308,220 | $ | 7,669,444 | ||||||||||
Exploration and Production | Drilling and Oil Field Services | Midstream Services | All Other | Consolidated Total | ||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Revenues | $ | 1,271,803 | $ | 297,715 | $ | 81,861 | $ | 3,904 | $ | 1,655,283 | ||||||||||
Inter-segment revenue | (229 | ) | (207,014 | ) | (55,173 | ) | — | (262,416 | ) | |||||||||||
Total revenues | $ | 1,271,574 | $ | 90,701 | $ | 26,688 | $ | 3,904 | $ | 1,392,867 | ||||||||||
Income (loss) from operations(3) | $ | 614,045 | $ | 10,672 | $ | (9,792 | ) | $ | (80,039 | ) | $ | 534,886 | ||||||||
Interest income (expense) | 910 | — | (429 | ) | (217,909 | ) | (217,428 | ) | ||||||||||||
Bargain purchase gain | 122,696 | — | — | — | 122,696 | |||||||||||||||
Loss on extinguishment of debt | — | — | — | (3,056 | ) | (3,056 | ) | |||||||||||||
Other income, net | 1,750 | — | — | 1,879 | 3,629 | |||||||||||||||
Income (loss) before income taxes | $ | 739,401 | $ | 10,672 | $ | (10,221 | ) | $ | (299,125 | ) | $ | 440,727 | ||||||||
Capital expenditures(2) | $ | 1,510,614 | $ | 28,323 | $ | 61,958 | $ | 90,875 | $ | 1,691,770 | ||||||||||
Depreciation, depletion, amortization and accretion | $ | 412,924 | $ | 25,880 | $ | 5,170 | $ | 14,460 | $ | 458,434 | ||||||||||
At December 31, 2012 | ||||||||||||||||||||
Total assets | $ | 8,681,056 | $ | 199,523 | $ | 151,492 | $ | 758,660 | $ | 9,790,731 | ||||||||||
____________________ | ||||||||||||||||||||
-1 | Exploration and production segment loss from operations includes losses due to changes in fair value of commodity derivative contracts of $119.6 million and $222.5 million for the three-month periods ended September 30, 2013 and 2012, respectively. | |||||||||||||||||||
-2 | Presented on an accrual basis. | |||||||||||||||||||
-3 | Exploration and production segment (loss) income from operations includes losses (gains) due to changes in fair value of commodity derivative contracts of $58.5 million and $(229.1) million for the nine-month periods ended September 30, 2013 and 2012, respectively. Exploration and production segment loss from operations also includes a loss on the sale of the Permian Properties of $398.9 million for the nine-month period ended September 30, 2013. |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Condensed Consolidating Financial Statements Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Condensed Cash Flow Revisions for Prior Periods | ' | |||||||||||||||||||
Net cash provided by (used in) operating activities increased (decreased) and net cash provided by (used in) financing activities decreased (increased) by the same amount as shown in the table below for the historical nine-month period ended September 30, 2012. | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | $ | 669,502 | ||||||||||||||||||
Guarantors | $ | (550,489 | ) | |||||||||||||||||
Non-Guarantors | $ | (119,013 | ) | |||||||||||||||||
Unaudited Condensed Consolidating Balance Sheets of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors | ' | |||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 910,443 | $ | 838 | $ | 8,976 | $ | — | $ | 920,257 | ||||||||||
Accounts receivable, net | — | 366,791 | 24,091 | — | 390,882 | |||||||||||||||
Intercompany accounts receivable | 88,834 | 1,000,435 | 75,743 | (1,165,012 | ) | — | ||||||||||||||
Derivative contracts | — | 4,530 | 10,770 | (6,994 | ) | 8,306 | ||||||||||||||
Prepaid expenses | — | 37,776 | 81 | — | 37,857 | |||||||||||||||
Other current assets | 1,375 | 27,462 | 17,123 | — | 45,960 | |||||||||||||||
Total current assets | 1,000,652 | 1,437,832 | 136,784 | (1,172,006 | ) | 1,403,262 | ||||||||||||||
Property, plant and equipment, net | — | 4,972,981 | 1,208,678 | (55,585 | ) | 6,126,074 | ||||||||||||||
Investment in subsidiaries | 5,157,937 | (88,307 | ) | — | (5,069,630 | ) | — | |||||||||||||
Derivative contracts | — | 12,089 | 15,443 | (12,054 | ) | 15,478 | ||||||||||||||
Other assets | 64,284 | 66,208 | 40 | (5,902 | ) | 124,630 | ||||||||||||||
Total assets | $ | 6,222,873 | $ | 6,400,803 | $ | 1,360,945 | $ | (6,315,177 | ) | $ | 7,669,444 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 170,920 | $ | 597,412 | $ | 5,783 | $ | — | $ | 774,115 | ||||||||||
Intercompany accounts payable | 978,981 | 113,285 | 71,780 | (1,164,046 | ) | — | ||||||||||||||
Derivative contracts | — | 43,465 | — | (6,994 | ) | 36,471 | ||||||||||||||
Asset retirement obligations | — | 71,446 | — | — | 71,446 | |||||||||||||||
Total current liabilities | 1,149,901 | 825,608 | 77,563 | (1,171,040 | ) | 882,032 | ||||||||||||||
Long-term debt | 3,200,686 | — | — | (5,902 | ) | 3,194,784 | ||||||||||||||
Derivative contracts | — | 36,596 | — | (12,054 | ) | 24,542 | ||||||||||||||
Asset retirement obligations | — | 358,301 | — | — | 358,301 | |||||||||||||||
Other long-term obligations | 1,876 | 22,361 | — | — | 24,237 | |||||||||||||||
Total liabilities | 4,352,463 | 1,242,866 | 77,563 | (1,188,996 | ) | 4,483,896 | ||||||||||||||
Equity | ||||||||||||||||||||
SandRidge Energy, Inc. stockholders’ equity | 1,870,410 | 5,157,937 | 1,283,382 | (6,497,870 | ) | 1,813,859 | ||||||||||||||
Noncontrolling interest | — | — | — | 1,371,689 | 1,371,689 | |||||||||||||||
Total equity | 1,870,410 | 5,157,937 | 1,283,382 | (5,126,181 | ) | 3,185,548 | ||||||||||||||
Total liabilities and equity | $ | 6,222,873 | $ | 6,400,803 | $ | 1,360,945 | $ | (6,315,177 | ) | $ | 7,669,444 | |||||||||
December 31, 2012 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 300,228 | $ | 922 | $ | 8,616 | — | $ | 309,766 | |||||||||||
Accounts receivable, net | — | 411,197 | 34,309 | — | 445,506 | |||||||||||||||
Intercompany accounts receivable | 2,162,471 | 397,238 | 683,406 | (3,243,115 | ) | — | ||||||||||||||
Derivative contracts | — | 60,736 | 28,484 | (18,198 | ) | 71,022 | ||||||||||||||
Prepaid expenses | — | 31,135 | 184 | — | 31,319 | |||||||||||||||
Restricted deposit | — | 255,000 | — | — | 255,000 | |||||||||||||||
Other current assets | 1,375 | 24,188 | 4,709 | — | 30,272 | |||||||||||||||
Total current assets | 2,464,074 | 1,180,416 | 759,708 | (3,261,313 | ) | 1,142,885 | ||||||||||||||
Property, plant and equipment, net | — | 7,236,685 | 1,298,877 | (55,585 | ) | 8,479,977 | ||||||||||||||
Investment in subsidiaries | 5,425,907 | (86,235 | ) | — | (5,339,672 | ) | — | |||||||||||||
Derivative contracts | — | 15,957 | 33,114 | (25,454 | ) | 23,617 | ||||||||||||||
Other assets | 83,642 | 66,512 | — | (5,902 | ) | 144,252 | ||||||||||||||
Total assets | $ | 7,973,623 | $ | 8,413,335 | $ | 2,091,699 | $ | (8,687,926 | ) | $ | 9,790,731 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 261,215 | $ | 492,866 | $ | 12,463 | $ | — | $ | 766,544 | ||||||||||
Intercompany accounts payable | 975,578 | 1,594,180 | 671,673 | (3,241,431 | ) | — | ||||||||||||||
Derivative contracts | 2,394 | 30,664 | — | (18,198 | ) | 14,860 | ||||||||||||||
Asset retirement obligations | — | 118,504 | — | — | 118,504 | |||||||||||||||
Deposit on pending sale | — | 255,000 | — | — | 255,000 | |||||||||||||||
Other current liabilities | — | 15,546 | — | — | 15,546 | |||||||||||||||
Total current liabilities | 1,239,187 | 2,506,760 | 684,136 | (3,259,629 | ) | 1,170,454 | ||||||||||||||
Long-term debt | 4,306,985 | — | — | (5,902 | ) | 4,301,083 | ||||||||||||||
Derivative contracts | — | 85,241 | — | (25,454 | ) | 59,787 | ||||||||||||||
Asset retirement obligations | — | 379,710 | 196 | — | 379,906 | |||||||||||||||
Other long-term obligations | 1,329 | 15,717 | — | — | 17,046 | |||||||||||||||
Total liabilities | 5,547,501 | 2,987,428 | 684,332 | (3,290,985 | ) | 5,928,276 | ||||||||||||||
Equity | ||||||||||||||||||||
SandRidge Energy, Inc. stockholders’ equity | 2,426,122 | 5,425,907 | 1,407,367 | (6,890,543 | ) | 2,368,853 | ||||||||||||||
Noncontrolling interest | — | — | — | 1,493,602 | 1,493,602 | |||||||||||||||
Total equity | 2,426,122 | 5,425,907 | 1,407,367 | (5,396,941 | ) | 3,862,455 | ||||||||||||||
Total liabilities and equity | $ | 7,973,623 | $ | 8,413,335 | $ | 2,091,699 | $ | (8,687,926 | ) | $ | 9,790,731 | |||||||||
Unaudited 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) | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Total revenues | $ | — | $ | 411,847 | $ | 81,830 | $ | (74 | ) | $ | 493,603 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 147,427 | 5,922 | (680 | ) | 152,669 | ||||||||||||||
General and administrative | 83 | 38,894 | 993 | — | 39,970 | |||||||||||||||
Depreciation, depletion, amortization and accretion | — | 140,350 | 21,031 | — | 161,381 | |||||||||||||||
Impairment | — | 515 | 172 | — | 687 | |||||||||||||||
Loss on derivative contracts | — | 103,215 | 29,593 | — | 132,808 | |||||||||||||||
Total expenses | 83 | 430,401 | 57,711 | (680 | ) | 487,515 | ||||||||||||||
(Loss) income from operations | (83 | ) | (18,554 | ) | 24,119 | 606 | 6,088 | |||||||||||||
Equity earnings from subsidiaries | (2,483 | ) | 7,803 | — | (5,320 | ) | — | |||||||||||||
Interest (expense) income | (61,716 | ) | 331 | — | — | (61,385 | ) | |||||||||||||
Other income, net | — | 7,937 | 10 | (7,289 | ) | 658 | ||||||||||||||
(Loss) income before income taxes | (64,282 | ) | (2,483 | ) | 24,129 | (12,003 | ) | (54,639 | ) | |||||||||||
Income tax expense | 2,228 | — | 135 | — | 2,363 | |||||||||||||||
Net (loss) income | (66,510 | ) | (2,483 | ) | 23,994 | (12,003 | ) | (57,002 | ) | |||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 16,191 | 16,191 | |||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc. | $ | (66,510 | ) | $ | (2,483 | ) | $ | 23,994 | $ | (28,194 | ) | $ | (73,193 | ) | ||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Total revenues | $ | — | $ | 447,391 | $ | 112,501 | $ | (27,094 | ) | $ | 532,798 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 167,014 | 36,369 | (26,668 | ) | 176,715 | ||||||||||||||
General and administrative | 244 | 45,600 | 1,354 | (417 | ) | 46,781 | ||||||||||||||
Depreciation, depletion, amortization and accretion | — | 165,269 | 26,407 | — | 191,676 | |||||||||||||||
Loss on derivative contracts | — | 159,757 | 33,740 | — | 193,497 | |||||||||||||||
Total expenses | 244 | 537,640 | 97,870 | (27,085 | ) | 608,669 | ||||||||||||||
(Loss) income from operations | (244 | ) | (90,249 | ) | 14,631 | (9 | ) | (75,871 | ) | |||||||||||
Equity earnings from subsidiaries | (84,956 | ) | 3,836 | — | 81,120 | — | ||||||||||||||
Interest (expense) income | (82,110 | ) | 215 | 1 | — | (81,894 | ) | |||||||||||||
Loss on extinguishment of debt | (3,056 | ) | — | — | — | (3,056 | ) | |||||||||||||
Other income, net | — | 1,242 | — | — | 1,242 | |||||||||||||||
(Loss) income before income taxes | (170,366 | ) | (84,956 | ) | 14,632 | 81,111 | (159,579 | ) | ||||||||||||
Income tax expense | 42 | — | 131 | — | 173 | |||||||||||||||
Net (loss) income | (170,408 | ) | (84,956 | ) | 14,501 | 81,111 | (159,752 | ) | ||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 10,668 | 10,668 | |||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc. | $ | (170,408 | ) | $ | (84,956 | ) | $ | 14,501 | $ | 70,443 | $ | (170,420 | ) | |||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Total revenues | $ | — | $ | 1,277,289 | $ | 241,314 | $ | (323 | ) | $ | 1,518,280 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 475,463 | 24,671 | (1,041 | ) | 499,093 | ||||||||||||||
General and administrative | 258 | 287,365 | 5,052 | — | 292,675 | |||||||||||||||
Depreciation, depletion, amortization and accretion | — | 441,538 | 67,209 | — | 508,747 | |||||||||||||||
Impairment | — | 13,218 | 3,112 | — | 16,330 | |||||||||||||||
Loss on derivative contracts | — | 45,462 | 24,589 | — | 70,051 | |||||||||||||||
Loss on sale of assets | — | 291,516 | 106,848 | — | 398,364 | |||||||||||||||
Total expenses | 258 | 1,554,562 | 231,481 | (1,041 | ) | 1,785,260 | ||||||||||||||
(Loss) income from operations | (258 | ) | (277,273 | ) | 9,833 | 718 | (266,980 | ) | ||||||||||||
Equity earnings from subsidiaries | (267,969 | ) | (606 | ) | — | 268,575 | — | |||||||||||||
Interest (expense) income | (209,211 | ) | 757 | — | — | (208,454 | ) | |||||||||||||
Loss on extinguishment of debt | (82,005 | ) | — | — | — | (82,005 | ) | |||||||||||||
Other income (expense), net | — | 9,153 | (701 | ) | (7,289 | ) | 1,163 | |||||||||||||
(Loss) income before income taxes | (559,443 | ) | (267,969 | ) | 9,132 | 262,004 | (556,276 | ) | ||||||||||||
Income tax expense | 6,955 | — | 345 | — | 7,300 | |||||||||||||||
Net (loss) income | (566,398 | ) | (267,969 | ) | 8,787 | 262,004 | (563,576 | ) | ||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 9,393 | 9,393 | |||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc. | $ | (566,398 | ) | $ | (267,969 | ) | $ | 8,787 | $ | 252,611 | $ | (572,969 | ) | |||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Total revenues | $ | — | $ | 1,172,206 | $ | 313,872 | $ | (93,211 | ) | $ | 1,392,867 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 431,455 | 118,861 | (91,615 | ) | 458,701 | ||||||||||||||
General and administrative | 429 | 153,665 | 5,801 | (1,097 | ) | 158,798 | ||||||||||||||
Depreciation, depletion, amortization and accretion | — | 396,524 | 61,910 | — | 458,434 | |||||||||||||||
Gain on derivative contracts | — | (181,389 | ) | (40,318 | ) | — | (221,707 | ) | ||||||||||||
(Gain) loss on sale of assets | — | (834 | ) | 4,589 | — | 3,755 | ||||||||||||||
Total expenses | 429 | 799,421 | 150,843 | (92,712 | ) | 857,981 | ||||||||||||||
(Loss) income from operations | (429 | ) | 372,785 | 163,029 | (499 | ) | 534,886 | |||||||||||||
Equity earnings from subsidiaries | 621,224 | 50,476 | — | (671,700 | ) | — | ||||||||||||||
Interest (expense) income | (217,343 | ) | 480 | (565 | ) | — | (217,428 | ) | ||||||||||||
Gain on sale of investment in subsidiary | 55,585 | — | — | (55,585 | ) | — | ||||||||||||||
Bargain purchase gain | — | 122,696 | — | — | 122,696 | |||||||||||||||
Loss on extinguishment of debt | (3,056 | ) | — | — | — | (3,056 | ) | |||||||||||||
Other income, net | — | 74,787 | — | (71,158 | ) | 3,629 | ||||||||||||||
Income before income taxes | 455,981 | 621,224 | 162,464 | (798,942 | ) | 440,727 | ||||||||||||||
Income tax (benefit) expense | (100,738 | ) | — | 365 | — | (100,373 | ) | |||||||||||||
Net income | 556,719 | 621,224 | 162,099 | (798,942 | ) | 541,100 | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 111,626 | 111,626 | |||||||||||||||
Net income attributable to SandRidge Energy, Inc. | $ | 556,719 | $ | 621,224 | $ | 162,099 | $ | (910,568 | ) | $ | 429,474 | |||||||||
Unaudited 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) | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (157,030 | ) | $ | 539,973 | $ | 211,364 | $ | 700 | $ | 595,007 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures for property, plant, and equipment | — | (1,163,539 | ) | — | — | (1,163,539 | ) | |||||||||||||
Proceeds from sale of assets | — | 2,566,900 | 455 | — | 2,567,355 | |||||||||||||||
Other | — | 18,756 | 37 | (34,320 | ) | (15,527 | ) | |||||||||||||
Net cash provided by investing activities | — | 1,422,117 | 492 | (34,320 | ) | 1,388,289 | ||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Repayments of borrowings | (1,115,500 | ) | — | — | — | (1,115,500 | ) | |||||||||||||
Distributions to unitholders | — | — | (226,404 | ) | 73,402 | (153,002 | ) | |||||||||||||
Premium on debt redemption | (61,997 | ) | — | — | — | (61,997 | ) | |||||||||||||
Intercompany borrowings (advances), net | 2,021,132 | (2,025,243 | ) | 4,111 | — | — | ||||||||||||||
Other | (76,390 | ) | 63,069 | 10,797 | (39,782 | ) | (42,306 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 767,245 | (1,962,174 | ) | (211,496 | ) | 33,620 | (1,372,805 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 610,215 | (84 | ) | 360 | — | 610,491 | ||||||||||||||
Cash and cash equivalents at beginning of year | 300,228 | 922 | 8,616 | — | 309,766 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 910,443 | $ | 838 | $ | 8,976 | $ | — | $ | 920,257 | ||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2012 (Revised) | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (173,036 | ) | $ | 519,827 | $ | 173,523 | $ | 63,916 | $ | 584,230 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures for property, plant, and equipment | — | (1,592,297 | ) | (33,440 | ) | — | (1,625,737 | ) | ||||||||||||
Acquisition of assets | (693,090 | ) | (143,929 | ) | — | — | (837,019 | ) | ||||||||||||
Proceeds from sale of assets | 129,830 | 346,591 | 1,335 | (55,585 | ) | 422,171 | ||||||||||||||
Conveyance of property for royalty trust | — | 575,485 | (587,086 | ) | 11,601 | — | ||||||||||||||
Other | (61,371 | ) | 251,159 | — | (189,788 | ) | — | |||||||||||||
Net cash used in investing activities | (624,631 | ) | (562,991 | ) | (619,191 | ) | (233,772 | ) | (2,040,585 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from borrowings | 1,850,344 | — | — | — | 1,850,344 | |||||||||||||||
Repayments of borrowings | (350,000 | ) | — | (16,029 | ) | — | (366,029 | ) | ||||||||||||
Debt issuance costs | (48,220 | ) | — | — | — | (48,220 | ) | |||||||||||||
Proceeds from issuance of royalty trust units | — | — | 587,086 | — | 587,086 | |||||||||||||||
Proceeds from sale of royalty trust units | — | — | — | 123,548 | 123,548 | |||||||||||||||
Distributions to unitholders | — | — | (193,263 | ) | 66,240 | (127,023 | ) | |||||||||||||
Intercompany (advances) borrowings, net | (136,464 | ) | 82,255 | 54,209 | — | — | ||||||||||||||
Dividends paid - preferred | (45,025 | ) | — | — | — | (45,025 | ) | |||||||||||||
Other | (13,624 | ) | (38,704 | ) | 19,933 | (19,932 | ) | (52,327 | ) | |||||||||||
Net cash provided by financing activities | 1,257,011 | 43,551 | 451,936 | 169,856 | 1,922,354 | |||||||||||||||
Net increase in cash and cash equivalents | 459,344 | 387 | 6,268 | — | 465,999 | |||||||||||||||
Cash and cash equivalents at beginning of year | 204,015 | 437 | 3,229 | — | 207,681 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 663,359 | $ | 824 | $ | 9,497 | $ | — | $ | 673,680 | ||||||||||
Subsequent_Events_Tables
Subsequent Events (Tables) (Royalty Trusts) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Subsequent Event | ' | ||||||||||||||||
Royalty Trust Distributions | ' | ||||||||||||||||
The Royalty Trusts declared and paid quarterly distributions during the three and nine-month periods ended September 30, 2013 and 2012 as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013(1) | 2012 | 2013(1) | 2012(2) | ||||||||||||||
Total distributions | $ | 81,594 | $ | 75,246 | $ | 226,404 | $ | 193,262 | |||||||||
Distributions to third-party unitholders | $ | 54,287 | $ | 50,222 | $ | 153,002 | $ | 127,023 | |||||||||
____________________ | |||||||||||||||||
-1 | Subordination thresholds were not met for the Mississippian Trust I’s second and third quarter 2013 distributions and for the Permian Trust’s second quarter 2013 distribution, resulting in reduced distributions to the Company on its subordinated units for these periods. | ||||||||||||||||
-2 | The Company received incentive distributions from the Mississippian Trust I during the nine-month period ended September 30, 2012. | ||||||||||||||||
Subsequent Event | ' | ||||||||||||||||
Subsequent Event | ' | ||||||||||||||||
Royalty Trust Distributions | ' | ||||||||||||||||
The following distributions are expected to be paid on November 29, 2013 to holders of record as of the close of business on November 14, 2013 (in thousands): | |||||||||||||||||
Royalty Trust | Total Distribution | Amount to be Distributed to Third-Party Unitholders | |||||||||||||||
Mississippian Trust I | $ | 12,660 | $ | 12,342 | |||||||||||||
Permian Trust | 34,223 | 24,483 | |||||||||||||||
Mississippian Trust II | 26,377 | 16,643 | |||||||||||||||
Total | $ | 73,260 | $ | 53,468 | |||||||||||||
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures - Dynamic Acquisition - Final Valuation of Assets Acquired and Liabilities Assumed (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 17, 2012 | |
Dynamic Acquisition | ||||||
Consideration(1) | ' | ' | ' | ' | ' | |
Shares of SandRidge common stock issued (in shares) | ' | ' | ' | ' | 73,962 | [1] |
SandRidge common stock price (in dollars per share) | ' | ' | ' | ' | $7.33 | [1] |
Fair value of common stock issued | ' | ' | ' | ' | $542,138 | [1] |
Cash consideration(2) | ' | ' | ' | ' | 680,000 | [1],[2] |
Cash balance adjustment(3) | ' | ' | ' | ' | 13,091 | [1],[3] |
Total purchase price | ' | ' | ' | ' | 1,235,229 | |
Fair Value of Liabilities Assumed | ' | ' | ' | ' | ' | |
Current liabilities | ' | ' | ' | ' | 129,363 | |
Asset retirement obligations(4) | ' | ' | ' | ' | 315,922 | [4] |
Long-term deferred tax liability(5) | ' | ' | ' | ' | 100,288 | [5] |
Other long-term liabilities | ' | ' | ' | ' | 4,469 | |
Amount attributable to liabilities assumed | ' | ' | ' | ' | 550,042 | |
Total purchase price plus liabilities assumed | ' | ' | ' | ' | 1,785,271 | |
Fair Value of Assets Acquired | ' | ' | ' | ' | ' | |
Current assets | ' | ' | ' | ' | 142,027 | |
Oil and natural gas properties(6) | ' | ' | ' | ' | 1,746,753 | [6] |
Other property, plant and equipment | ' | ' | ' | ' | 1,296 | |
Other non-current assets | ' | ' | ' | ' | 17,891 | |
Amount attributable to assets acquired | ' | ' | ' | ' | 1,907,967 | |
Bargain purchase gain | $0 | $0 | $0 | ($122,696) | ($122,696) | [7] |
[1] | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. | |||||
[2] | Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022. | |||||
[3] | In accordance with the acquisition agreement, the Company remitted to the seller a cash payment equal to Dynamic’s average daily cash balance for the 30-day period ending on the second day prior to closing. This resulted in an additional cash payment by the Company of $13.1 million at closing. | |||||
[4] | The estimated fair value of the acquired asset retirement obligations was determined using the Company’s credit adjusted risk-free rate. | |||||
[5] | The net deferred tax liability is primarily a result of the difference between the estimated fair value and the Company’s expected tax basis in the assets acquired and liabilities assumed. The net deferred tax liability also includes the effects of deferred tax assets associated with net operating losses and other tax attributes acquired as a result of the Dynamic Acquisition. | |||||
[6] | The fair value of oil and natural gas properties acquired was estimated using a discounted cash flow model, with future cash flows estimated based upon projections of oil and natural gas reserve quantities and weighted average oil and natural gas prices of $113.62 per barrel of oil and $3.83 per Mcf of natural gas, after adjustment for transportation fees and regional price differentials. The commodity prices utilized were based upon commodity strip prices as of April 17, 2012 for the first four years and escalated for inflation at a rate of 2.0% annually beginning with the fifth year through the end of production. Future cash flows were discounted using an industry weighted average cost of capital rate. | |||||
[7] | The bargain purchase gain results from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures - Dynamic Acquisition - Final Valuation of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 17, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Apr. 17, 2012 | Apr. 17, 2012 | Apr. 17, 2012 | Sep. 30, 2012 | |
Dynamic Acquisition | 8.125% Senior Notes due 2022 | 8.125% Senior Notes due 2022 | 8.125% Senior Notes due 2022 | 8.125% Senior Notes due 2022 | Oil | Natural Gas | Pro Forma Adjustment | ||||||
Dynamic Acquisition | Dynamic Acquisition | Dynamic Acquisition | Dynamic Acquisition | ||||||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Bargain purchase gain | $0 | $0 | $0 | ($122,696) | ($122,696) | [1] | ' | ' | ' | ' | ' | ' | $122,696 |
Shares of SandRidge common stock issued (in shares) | ' | ' | ' | ' | 73,962 | [2] | ' | ' | ' | ' | ' | ' | ' |
Cash consideration(2) | ' | ' | ' | ' | 680,000 | [2],[3] | ' | ' | ' | ' | ' | ' | ' |
SandRidge common stock price (in dollars per share) | ' | ' | ' | ' | $7.33 | [2] | ' | ' | ' | ' | ' | ' | ' |
Proceeds from borrowings | ' | ' | 0 | 1,850,344 | ' | ' | ' | ' | 750,000 | ' | ' | ' | |
Long-term debt, fixed interest rate | ' | ' | ' | ' | ' | 8.13% | 8.13% | 8.13% | 8.13% | ' | ' | ' | |
Cash balance adjustment | ' | ' | ' | ' | $13,091 | [2],[4] | ' | ' | ' | ' | ' | ' | ' |
Commodity average price (in dollars per bbl for oil/dollars per mcf for natural gas) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 113.62 | 3.83 | ' | |
Commodity prices period valuation before escalation | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | |
Annual escalation factor for forward commodity strip prices beginning the fifth year through end of production | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | |
Weighted average commodity prices, basis of price determination | ' | ' | ' | ' | 'The commodity prices utilized were based upon commodity strip prices for the first four years and escalated for inflation at a rate of 2.0% annually beginning with the fifth year through the end of production. | ' | ' | ' | ' | ' | ' | ' | |
[1] | The bargain purchase gain results from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. | ||||||||||||
[2] | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. | ||||||||||||
[3] | Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022. | ||||||||||||
[4] | In accordance with the acquisition agreement, the Company remitted to the seller a cash payment equal to Dynamic’s average daily cash balance for the 30-day period ending on the second day prior to closing. This resulted in an additional cash payment by the Company of $13.1 million at closing. |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures - Dynamic Acquisition - Unaudited Pro Forma Results of Operations (Details) (Dynamic Acquisition, USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2012 | |
Dynamic Acquisition | ' | |
Business Acquisition | ' | |
Revenues | $1,570,801 | |
Net income(1) | 334,038 | [1] |
Income available to SandRidge Energy, Inc. common stockholders(1) | $180,768 | [1] |
Earnings per common share(1) | ' | |
Basic (in dollars per share) | $0.38 | [1] |
Diluted (in dollars per share) | $0.38 | [1] |
[1] | Pro forma net income, income available to SandRidge Energy, Inc. common stockholders and earnings per common share exclude $12.9 million of acquisition costs, a $122.7 million bargain purchase gain, a $100.3 million partial valuation allowance release and $10.9 million of fees to secure financing included in the accompanying unaudited condensed consolidated statement of operations for the nine-month period ended September 30, 2012. |
Acquisitions_and_Divestitures_4
Acquisitions and Divestitures - Dynamic Acquisition - Unaudited Pro Forma Results of Operations (Parenthetical) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 17, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | ||
Dynamic Acquisition | Dynamic Acquisition | Dynamic Acquisition | Pro Forma Adjustment | ||||||
Dynamic Acquisition | |||||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | |
Acquisition related costs | ' | ' | ' | ' | ' | $500,000 | $12,900,000 | ($12,900,000) | |
Bargain purchase gain | 0 | 0 | 0 | -122,696,000 | -122,696,000 | [1] | ' | ' | 122,696,000 |
Reversal of deferred tax asset valuation allowance | ' | ' | -4,702,000 | 100,288,000 | ' | ' | ' | -100,288,000 | |
Fees to secure financing for acquisition | ' | ' | ' | ' | ' | ' | $10,900,000 | ($10,900,000) | |
[1] | The bargain purchase gain results from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. |
Acquisitions_and_Divestitures_5
Acquisitions and Divestitures - Gulf of Mexico Property Acquisitions - Final Valuation of Assets Acquired and Liabilities Assumed (Details) (Gulf of Mexico Properties, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jun. 20, 2012 |
Gulf of Mexico Properties | ' |
Consideration paid | ' |
Cash, net of purchase price adjustments | $43,282 |
Fair value of identifiable assets acquired and liabilities assumed | ' |
Proved developed and undeveloped properties | 98,725 |
Asset retirement obligation | -55,443 |
Total identifiable net assets | $43,282 |
Acquisitions_and_Divestitures_6
Acquisitions and Divestitures - Gulf of Mexico Property Acquisitions - Unaudited Pro Forma Results of Operations (Details) (Gulf of Mexico Properties, USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2012 |
Gulf of Mexico Properties | ' |
Business Acquisition | ' |
Revenues | $1,421,283 |
Net income | 543,947 |
Income available to SandRidge Energy, Inc. common stockholders | $390,227 |
Earnings per common share | ' |
Basic (in dollars per share) | $0.87 |
Diluted (in dollars per share) | $0.80 |
Acquisitions_and_Divestitures_7
Acquisitions and Divestitures - Permian Properties Disposal - Revenue and Expense Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disposal, Revenue and Expense Information | ' | ' | ' | ' | |
Revenues | $493,603 | $532,798 | $1,518,280 | $1,392,867 | |
Direct operating expenses | 152,669 | 176,715 | 499,093 | 458,701 | |
Permian Properties | ' | ' | ' | ' | |
Disposal, Revenue and Expense Information | ' | ' | ' | ' | |
Revenues | ' | 143,347 | 68,027 | [1] | 438,742 |
Direct operating expenses | ' | $27,603 | $17,453 | [1] | $92,884 |
[1] | Includes revenues and direct operating expenses through February 26, 2013, the date of sale. |
Acquisitions_and_Divestitures_8
Acquisitions and Divestitures - Drilling and Completion Costs Associated with Sale of Working Interests (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Drilling Carry Transaction Activities | ' |
Total Drilling Carry | $1,000,000 |
Drilling Carry Recorded | 720,700 |
Drilling Carry Remaining | 279,300 |
Atinum MidCon I, LLC | ' |
Drilling Carry Transaction Activities | ' |
Total Drilling Carry | 250,000 |
Drilling Carry Recorded | 250,000 |
Drilling Carry Remaining | 0 |
Repsol E&P USA, Inc. | ' |
Drilling Carry Transaction Activities | ' |
Total Drilling Carry | 750,000 |
Drilling Carry Recorded | 470,700 |
Drilling Carry Remaining | $279,300 |
Acquisitions_and_Divestitures_9
Acquisitions and Divestitures - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 17, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 20, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | |
Dynamic Acquisition | Dynamic Acquisition | Dynamic Acquisition | Dynamic Acquisition | Gulf of Mexico Properties | Gulf of Mexico Properties | Gulf of Mexico Properties | Permian Properties | Permian Properties | Atinum MidCon I, LLC and Repsol E&P USA, Inc. | Atinum MidCon I, LLC and Repsol E&P USA, Inc. | Tertiary | Mississippian Properties | ||||||
acre | Noncontrolling Interest | |||||||||||||||||
Business Acquisitions and Dispositions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Percentage of equity interests acquired | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Purchase price of acquired entity | ' | ' | ' | ' | $1,235,229,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash consideration(2) | ' | ' | ' | ' | 680,000,000 | [1],[2] | ' | ' | ' | 43,282,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock in acquisition, shares (in shares) | ' | ' | ' | ' | 73,962 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Measurement period adjustments to the preliminary purchase price allocation, bargain purchase gain impact | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Measurement period adjustments to the preliminary purchase price allocation, total adjustments | ' | ' | ' | ' | ' | ' | 0 | 4,800,000 | ' | ' | 4,800,000 | ' | ' | ' | ' | ' | ' | |
Measurement period adjustments to the preliminary purchase price allocation, basic earnings per share impact | ' | ' | ' | ' | ' | ' | ' | ($0.01) | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Measurement period adjustments to the preliminary purchase price allocation, diluted earnings per share impact | ' | ' | ' | ' | ' | ' | ' | ($0.01) | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Measurement period adjustments to the preliminary purchase price allocation, deferred taxes and the valuation allowance impact | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Acquisition related costs | ' | ' | ' | ' | ' | 500,000 | ' | 12,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Fees to secure financing for acquisition | ' | ' | ' | ' | ' | ' | ' | 10,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Proceeds from sale of oil and natural gas properties | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 2,600,000,000 | ' | ' | ' | 130,800,000 | ' | |
Gain (loss) on sale of oil and gas property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -398,900,000 | -71,700,000 | ' | ' | 0 | 0 | |
Oil and natural gas properties acquired, gross (in acres) | ' | ' | ' | ' | ' | ' | ' | ' | 184,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Oil and natural gas properties acquired, net (in acres) | ' | ' | ' | ' | ' | ' | ' | ' | 103,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Bargain purchase gain | 0 | 0 | 0 | -122,696,000 | -122,696,000 | [3] | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | |
Cumulative proceeds from sale of working interest subject to drilling carry | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | |
Maximum amount acquirer will pay of SandRidge's drilling and completion costs | 1,000,000,000 | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | |
Drilling carry recorded as reduction of capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $334,200,000 | $243,100,000 | ' | ' | |
[1] | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. | |||||||||||||||||
[2] | Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022. | |||||||||||||||||
[3] | The bargain purchase gain results from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. |
Variable_Interest_Entities_Gre
Variable Interest Entities - Grey Ranch, L.P. - Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Variable Interest Entity | ' | ' | ' | ' |
Cash and cash equivalents | $920,257,000 | $309,766,000 | $673,680,000 | $207,681,000 |
Accounts receivable, net | 390,882,000 | 445,506,000 | ' | ' |
Prepaid expenses | 37,857,000 | 31,319,000 | ' | ' |
Other current assets | 39,684,000 | 19,043,000 | ' | ' |
Total current assets | 1,403,262,000 | 1,142,885,000 | ' | ' |
Other property, plant and equipment, net | 576,390,000 | 582,375,000 | ' | ' |
Accounts payable and accrued expenses | 774,115,000 | 766,544,000 | ' | ' |
Grey Ranch Plant, L.P | ' | ' | ' | ' |
Variable Interest Entity | ' | ' | ' | ' |
Cash and cash equivalents | 111,000 | 1,080,000 | ' | ' |
Accounts receivable, net | 16,000 | 20,000 | ' | ' |
Prepaid expenses | 33,000 | 64,000 | ' | ' |
Other current assets | 109,000 | 109,000 | ' | ' |
Total current assets | 269,000 | 1,273,000 | ' | ' |
Other property, plant and equipment, net | 1,184,000 | 1,246,000 | ' | ' |
Total assets | 1,453,000 | 2,519,000 | ' | ' |
Accounts payable and accrued expenses | 165,000 | 274,000 | ' | ' |
Total liabilities | $165,000 | $274,000 | ' | ' |
Variable_Interest_Entities_Roy
Variable Interest Entities - Royalty Trusts - Initial Public Offering (Details) (USD $) | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Apr. 30, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |||
Mississippian Trust I | Mississippian Trust I | Mississippian Trust I | Permian Trust | Permian Trust | Permian Trust | Mississippian Trust II | Mississippian Trust II | Mississippian Trust II | ||||
Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net proceeds of offering (in millions) | $336.90 | ' | ' | $580.60 | ' | ' | $587.10 | ' | ' | |||
Total outstanding common units (in shares) | 21,000,000 | ' | ' | 39,375,000 | ' | ' | 37,293,750 | ' | ' | |||
Total outstanding subordinated units (in shares) | 7,000,000 | ' | ' | 13,125,000 | ' | ' | 12,431,250 | ' | ' | |||
Beneficial interest owned by Company(1) | 38.40% | [1] | 26.90% | 26.90% | 34.30% | [1] | 28.50% | 30.50% | 39.90% | [1] | 37.60% | 39.90% |
Liquidation date(2) | 31-Dec-30 | [2] | ' | ' | 31-Mar-31 | [2] | ' | ' | 31-Dec-31 | [2] | ' | ' |
[1] | Subsequent to the initial public offerings, the Company sold common units of the Royalty Trusts it owned in transactions exempt from registration under Rule 144 under the Securities Act. These transactions decreased the Company’s beneficial interests in the Royalty Trusts. See further discussion of the unit sales below. | |||||||||||
[2] | At the time each Royalty Trust terminates, 50% of the royalty interests conveyed to the Royalty Trust will automatically revert to the Company, and the remaining 50% will be sold with the proceeds distributed to the Royalty Trust unitholders. |
Variable_Interest_Entities_Roy1
Variable Interest Entities - Royalty Trusts - Initial Public Offering (Parenthetical) (Details) (Royalty Trusts) | 9 Months Ended |
Sep. 30, 2013 | |
Royalty Trusts | ' |
Variable Interest Entity | ' |
Percentage of royalty interest conveyed to company at trust termination | 50.00% |
Percentage of royalty interest sold at trust termination | 50.00% |
Variable_Interest_Entities_Roy2
Variable Interest Entities - Royalty Trusts - Distributions (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Variable Interest Entity | ' | ' | ' | ' | |||
Distributions to third-party unitholders | ' | ' | $153,002 | $127,023 | |||
Royalty Trusts | ' | ' | ' | ' | |||
Variable Interest Entity | ' | ' | ' | ' | |||
Total distributions | 81,594 | [1] | 75,246 | 226,404 | [1] | 193,262 | [2] |
Distributions to third-party unitholders | $54,287 | [1] | $50,222 | $153,002 | [1] | $127,023 | [2] |
[1] | Subordination thresholds were not met for the Mississippian Trust I’s second and third quarter 2013 distributions and for the Permian Trust’s second quarter 2013 distribution, resulting in reduced distributions to the Company on its subordinated units for these periods. | ||||||
[2] | The Company received incentive distributions from the Mississippian Trust I during the nine-month period ended September 30, 2012. |
Variable_Interest_Entities_Roy3
Variable Interest Entities - Royalty Trusts - Open Oil and Natural Gas Commodity Derivative Contracts (Details) | 3 Months Ended |
Sep. 30, 2013 | |
MBbls | |
Oil Price Swaps | October 2013 - December 2013 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 3,494 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 99.48 |
Oil Price Swaps | January 2014 - December 2014 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 8,813 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 92.98 |
Oil Price Swaps | January 2015 - December 2015 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 6,614 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 85.25 |
Natural Gas Collars | October 2013 - December 2013 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 1,716 |
Collar Range, minimum | 3.78 |
Collar Range, maximum | 6.71 |
Natural Gas Collars | January 2014 - December 2014 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 937 |
Collar Range, minimum | 4 |
Collar Range, maximum | 7.78 |
Natural Gas Collars | January 2015 - December 2015 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 1,010 |
Collar Range, minimum | 4 |
Collar Range, maximum | 8.55 |
Royalty Trusts | Oil Price Swaps | October 2013 - December 2013 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 413 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 103.04 |
Royalty Trusts | Oil Price Swaps | January 2014 - December 2014 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 1,862 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 100.7 |
Royalty Trusts | Oil Price Swaps | January 2015 - December 2015 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 630 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 101.03 |
Royalty Trusts | Oil Price Swaps | Novated Contract | October 2013 - December 2013 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 302 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 103.27 |
Royalty Trusts | Oil Price Swaps | Novated Contract | January 2014 - December 2014 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 991 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 100.79 |
Royalty Trusts | Oil Price Swaps | Novated Contract | January 2015 - March 2015 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 141 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 100.9 |
Royalty Trusts | Natural Gas Collars | October 2013 - December 2013 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 216 |
Collar Range, minimum | 4 |
Collar Range, maximum | 7.15 |
Royalty Trusts | Natural Gas Collars | January 2014 - December 2014 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 937 |
Collar Range, minimum | 4 |
Collar Range, maximum | 7.78 |
Royalty Trusts | Natural Gas Collars | January 2015 - December 2015 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 1,010 |
Collar Range, minimum | 4 |
Collar Range, maximum | 8.55 |
Variable_Interest_Entities_Roy4
Variable Interest Entities - Royalty Trusts - Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||
Variable Interest Entity | ' | ' | ' | ' | ||
Cash and cash equivalents | $920,257,000 | $309,766,000 | $673,680,000 | $207,681,000 | ||
Accounts receivable, net | 390,882,000 | 445,506,000 | ' | ' | ||
Derivative contracts | 8,306,000 | 71,022,000 | ' | ' | ||
Total current assets | 1,403,262,000 | 1,142,885,000 | ' | ' | ||
Investment in royalty interests(2) | 11,192,842,000 | 13,128,784,000 | ' | ' | ||
Less: accumulated depletion | -5,643,158,000 | -5,231,182,000 | ' | ' | ||
Investment in royalty interests, net | 5,549,684,000 | 7,897,602,000 | ' | ' | ||
Derivative contracts | 15,478,000 | 23,617,000 | ' | ' | ||
Accounts payable and accrued expenses | 774,115,000 | 766,544,000 | ' | ' | ||
Royalty Trusts | ' | ' | ' | ' | ||
Variable Interest Entity | ' | ' | ' | ' | ||
Cash and cash equivalents | 8,816,000 | [1] | 7,445,000 | [1] | ' | ' |
Accounts receivable, net | 25,518,000 | 28,596,000 | ' | ' | ||
Derivative contracts | 3,776,000 | 10,286,000 | ' | ' | ||
Total current assets | 38,110,000 | 46,327,000 | ' | ' | ||
Investment in royalty interests(2) | 1,325,942,000 | [2] | 1,325,942,000 | [2] | ' | ' |
Less: accumulated depletion | -168,569,000 | -103,746,000 | ' | ' | ||
Investment in royalty interests, net | 1,157,373,000 | 1,222,196,000 | ' | ' | ||
Derivative contracts | 3,389,000 | 7,660,000 | ' | ' | ||
Total assets | 1,198,872,000 | 1,276,183,000 | ' | ' | ||
Accounts payable and accrued expenses | 3,788,000 | 1,101,000 | ' | ' | ||
Total liabilities | $3,788,000 | $1,101,000 | ' | ' | ||
[1] | Includes $3.0 million held by the trustee at September 30, 2013 and December 31, 2012 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, and was determined by allocating the historical net book value of the Company’s full cost pool based on the fair value of each Royalty Trust’s royalty interests relative to the fair value of the Company’s full cost pool. |
Variable_Interest_Entities_Roy5
Variable Interest Entities - Royalty Trusts - Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (Details) (Royalty Trusts, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Royalty Trusts | ' | ' |
Variable Interest Entity | ' | ' |
Reserves for expenses | $3 | $3 |
Variable_Interest_Entities_Roy6
Variable Interest Entities - Royalty Trusts - Ownership Interest (Details) | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | |||
Mississippian Trust I | Mississippian Trust I | Mississippian Trust I | Permian Trust | Permian Trust | Permian Trust | Mississippian Trust II | Mississippian Trust II | Mississippian Trust II | ||||
Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Beneficial interest owned by Company(1) | 26.90% | 26.90% | 38.40% | [1] | 28.50% | 30.50% | 34.30% | [1] | 37.60% | 39.90% | 39.90% | [1] |
[1] | Subsequent to the initial public offerings, the Company sold common units of the Royalty Trusts it owned in transactions exempt from registration under Rule 144 under the Securities Act. These transactions decreased the Company’s beneficial interests in the Royalty Trusts. See further discussion of the unit sales below. |
Variable_Interest_Entities_PGC
Variable Interest Entities - PGC - Amounts due to/from the Company (Details) (Pinon Gathering Company LLC, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Pinon Gathering Company LLC | ' | ' |
Variable Interest Entity | ' | ' |
Accounts receivable due from PGC | $1,496 | $1,976 |
Accounts payable due to PGC | $4,249 | $5,053 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Apr. 30, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | ||||
Grey Ranch Plant, L.P | Grey Ranch Plant, L.P | Grey Ranch Plant Genpar, LLC ("Genpar") | Mississippian Trust I | Mississippian Trust I | Mississippian Trust I | Permian Trust | Permian Trust | Permian Trust | Mississippian Trust II | Mississippian Trust II | Mississippian Trust II | Royalty Trusts | Royalty Trusts | Royalty Trusts | Royalty Trusts | Gas Gathering Agreement | ||||||
Pinon Gathering Company LLC | ||||||||||||||||||||||
Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Period drilling obligation to Royalty Trust fulfilled | ' | ' | ' | ' | ' | ' | 'second quarter of 2013, | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Beneficial interest owned by Company(1) | ' | ' | 50.00% | ' | 50.00% | 38.40% | [1] | 26.90% | 26.90% | 34.30% | [1] | 28.50% | 30.50% | 39.90% | [1] | 37.60% | 39.90% | ' | ' | ' | ' | ' |
Noncontrolling interest, ownership percentage by noncontrolling owners | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Noncontrolling interest, limited partnerships | ' | ' | $600,000 | $1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage ownership of another VIE | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Liabilities | ' | ' | 165,000 | 274,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,788,000 | 3,788,000 | ' | 1,101,000 | ' | |||
Royalty trust IPO date | ' | ' | ' | ' | ' | 'April 2011 | ' | ' | 'August 2011 | ' | ' | 'April 2012 | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of subordinated units to total units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | ' | |||
Royalty Trust subordinated units distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The subordinated units are entitled to receive pro rata distributions from the Royalty Trusts each quarter if and to the extent there is sufficient cash to provide a cash distribution on the common units that is no less than the applicable quarterly subordination threshold. If there is not sufficient cash to fund such a distribution on all common units, the distribution to be made with respect to the subordinated units will be reduced or eliminated for such quarter in order to make a distribution, to the extent possible, of up to the subordination threshold amount on all common units, including common units held by the Company. | ' | ' | ' | |||
Percentage of cash available in excess of target distribution paid for incentive distribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | |||
Royalty Trust incentive distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'In exchange for agreeing to subordinate a portion of its Royalty Trust units, SandRidge is entitled to receive incentive distributions equal to 50% of the amount by which the cash available for distribution on all of the Royalty Trust units exceeds the applicable quarterly incentive threshold. | ' | ' | ' | |||
Outstanding balance under loan commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | 0 | ' | |||
Development period deadline under development agreement | ' | ' | ' | ' | ' | ' | 31-Dec-15 | ' | ' | 31-Mar-16 | ' | ' | 31-Dec-16 | ' | ' | ' | ' | ' | ' | |||
Maximum amount recoverable by trusts under the lien | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 167,800,000 | 167,800,000 | ' | ' | ' | |||
Noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000,000 | 1,400,000,000 | ' | 1,500,000,000 | ' | |||
Proceeds from sale of royalty trust units | $28,985,000 | $123,548,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $28,985,000 | $28,985,000 | $123,548,000 | ' | ' | |||
Gas gathering and operations and maintenance agreement end date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Jun-29 | |||
[1] | Subsequent to the initial public offerings, the Company sold common units of the Royalty Trusts it owned in transactions exempt from registration under Rule 144 under the Securities Act. These transactions decreased the Company’s beneficial interests in the Royalty Trusts. See further discussion of the unit sales below. |
Fair_Value_Measurements_Signif
Fair Value Measurements - Significant Unobservable Inputs (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Significant Unobservable Inputs | ' | ' |
Total net derivative contracts | ($37,229) | $19,992 |
Fair Value Measurements Level 3 | Oil Basis Swaps | ' | ' |
Significant Unobservable Inputs | ' | ' |
Derivative, weighted average forward price (in dollars per Bbl) | ' | 14.74 |
Total net derivative contracts | $0 | ($512) |
Fair Value Measurements Level 3 | Oil Basis Swaps | Minimum | ' | ' |
Significant Unobservable Inputs | ' | ' |
Derivative, forward price (in dollars per Bbl) | ' | 10 |
Fair Value Measurements Level 3 | Oil Basis Swaps | Maximum | ' | ' |
Significant Unobservable Inputs | ' | ' |
Derivative, forward price (in dollars per Bbl) | ' | 21.98 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | $65,875 | $132,934 | ||
Liabilities measured at fair value | 61,013 | 74,647 | ||
Restricted deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 27,952 | 27,947 | ||
Commodity derivative contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 23,784 | 94,639 | ||
Liabilities measured at fair value | 61,013 | 72,252 | ||
Investments | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 14,139 | 10,348 | ||
Interest rate swap | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Liabilities measured at fair value | ' | 2,395 | ||
Fair Value Measurements Level 1 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 42,091 | 38,295 | ||
Liabilities measured at fair value | 0 | 0 | ||
Fair Value Measurements Level 1 | Restricted deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 27,952 | 27,947 | ||
Fair Value Measurements Level 1 | Commodity derivative contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 0 | 0 | ||
Liabilities measured at fair value | 0 | 0 | ||
Fair Value Measurements Level 1 | Investments | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 14,139 | 10,348 | ||
Fair Value Measurements Level 1 | Interest rate swap | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Liabilities measured at fair value | ' | 0 | ||
Fair Value Measurements Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 58,086 | 130,220 | ||
Liabilities measured at fair value | 95,315 | 109,716 | ||
Fair Value Measurements Level 2 | Restricted deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 0 | 0 | ||
Fair Value Measurements Level 2 | Commodity derivative contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 58,086 | 130,220 | ||
Liabilities measured at fair value | 95,315 | 107,321 | ||
Fair Value Measurements Level 2 | Investments | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 0 | 0 | ||
Fair Value Measurements Level 2 | Interest rate swap | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Liabilities measured at fair value | ' | 2,395 | ||
Fair Value Measurements Level 3 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 0 | 183 | ||
Liabilities measured at fair value | 0 | 695 | ||
Fair Value Measurements Level 3 | Restricted deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 0 | 0 | ||
Fair Value Measurements Level 3 | Commodity derivative contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 0 | 183 | ||
Liabilities measured at fair value | 0 | 695 | ||
Fair Value Measurements Level 3 | Investments | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 0 | 0 | ||
Fair Value Measurements Level 3 | Interest rate swap | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Liabilities measured at fair value | ' | 0 | ||
Netting | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | -34,302 | [1] | -35,764 | [1] |
Liabilities measured at fair value | -34,302 | [1] | -35,764 | [1] |
Netting | Restricted deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Netting | Commodity derivative contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | -34,302 | [1] | -35,764 | [1] |
Liabilities measured at fair value | -34,302 | [1] | -35,764 | [1] |
Netting | Investments | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Netting | Interest rate swap | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Liabilities measured at fair value | ' | $0 | [1] | |
[1] | Represents the impact of netting assets and liabilities with counterparties with which the right of offset exists. |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Detail) (Commodity derivative contracts, USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Commodity derivative contracts | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' |
Beginning balance of Level 3 | $5,013 | ($512) | ($4,253) |
Loss on derivative contracts | -4,261 | -133 | -3,872 |
Purchases | 0 | 0 | 5,697 |
Settlements (received) paid | -569 | 645 | 2,611 |
Ending balance of Level 3 | $183 | $0 | $183 |
Fair_Value_Measurements_Estima
Fair Value Measurements - Estimated Fair Value and Carrying Value of Senior Notes (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Carrying Value | $3,194,784 | $4,301,083 | ||
9.875% Senior Notes due 2016 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Carrying Value | 0 | [1] | 356,657 | [1] |
8.0% Senior Notes due 2018 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Carrying Value | 0 | 750,000 | ||
8.75% Senior Notes due 2020 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Carrying Value | 444,580 | [2] | 444,127 | [2] |
7.5% Senior Notes due 2021 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Carrying Value | 1,179,027 | [3] | 1,179,328 | [3] |
8.125% Senior Notes due 2022 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Carrying Value | 750,000 | 750,000 | ||
7.5% Senior Notes due 2023 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Carrying Value | 821,177 | [4] | 820,971 | [4] |
Fair Value Measurements Level 2 | 9.875% Senior Notes due 2016 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Fair Value | 0 | [1] | 392,913 | [1] |
Fair Value Measurements Level 2 | 8.0% Senior Notes due 2018 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Fair Value | 0 | 790,313 | ||
Fair Value Measurements Level 2 | 8.75% Senior Notes due 2020 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Fair Value | 477,000 | [2] | 490,500 | [2] |
Fair Value Measurements Level 2 | 7.5% Senior Notes due 2021 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Fair Value | 1,198,500 | [3] | 1,257,250 | [3] |
Fair Value Measurements Level 2 | 8.125% Senior Notes due 2022 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Fair Value | 766,875 | 823,125 | ||
Fair Value Measurements Level 2 | 7.5% Senior Notes due 2023 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ||
Fair Value | $829,125 | [4] | $882,750 | [4] |
[1] | Carrying value is net of $8,843 discount at December 31, 2012. | |||
[2] | Carrying value is net of $5,420 and $5,873 discount at September 30, 2013 and December 31, 2012, respectively. | |||
[3] | Carrying value includes a premium, applicable to notes issued in August 2012, of $4,027 and $4,328 atSeptember 30, 2013 and December 31, 2012, respectively. | |||
[4] | Carrying value is net of $3,823 and $4,029 discount at September 30, 2013 and December 31, 2012, respectively. |
Fair_Value_Measurements_Estima1
Fair Value Measurements - Estimated Fair Value and Carrying Value of Senior Notes (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 |
In Thousands, unless otherwise specified | |||
9.875% Senior Notes due 2016 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ' |
Long-term debt, fixed interest rate | 9.88% | 9.88% | ' |
Debt maturity date | '2016 | '2016 | ' |
Long-term debt, discount | 0 | 8,843 | ' |
8.0% Senior Notes due 2018 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ' |
Long-term debt, fixed interest rate | 8.00% | 8.00% | ' |
Debt maturity date | '2018 | '2018 | ' |
8.75% Senior Notes due 2020 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ' |
Long-term debt, fixed interest rate | 8.75% | 8.75% | ' |
Debt maturity date | '2020 | '2020 | ' |
Long-term debt, discount | 5,420 | 5,873 | ' |
7.5% Senior Notes due 2021 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ' |
Long-term debt, fixed interest rate | 7.50% | 7.50% | ' |
Debt maturity date | '2021 | '2021 | ' |
Long term debt, premium | 4,027 | 4,328 | ' |
8.125% Senior Notes due 2022 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ' |
Long-term debt, fixed interest rate | 8.13% | 8.13% | 8.13% |
Debt maturity date | '2022 | '2022 | ' |
7.5% Senior Notes due 2023 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ' |
Long-term debt, fixed interest rate | 7.50% | 7.50% | ' |
Debt maturity date | '2023 | '2023 | ' |
Long-term debt, discount | 3,823 | 4,029 | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value Measurements Level 3 | Fair Value Measurements Level 3 | Oil Basis Swaps | Oil Basis Swaps | ||||
Fair Value Measurements Level 3 | Fair Value Measurements Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | ' | ' | ' | ' | ' |
Total net derivative contracts | ($37,229) | ' | $19,992 | ' | ' | $0 | ($512) |
Loss (gain) due to change in fair value of derivative contracts | $56,085 | ($234,705) | ' | ($4,800) | $2,200 | ' | ' |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Oil and natural gas properties | ' | ' | ||
Proved(1) | $10,663,810 | [1] | $12,262,921 | [1] |
Unproved | 529,032 | 865,863 | ||
Total oil and natural gas properties | 11,192,842 | 13,128,784 | ||
Less: accumulated depreciation, depletion and impairment | -5,643,158 | -5,231,182 | ||
Net oil and natural gas properties capitalized costs | 5,549,684 | 7,897,602 | ||
Land | 18,423 | 17,927 | ||
Non-oil and natural gas equipment(2) | 610,740 | [2] | 643,370 | [2] |
Buildings and structures(3) | 230,508 | [3] | 205,349 | [3] |
Total | 859,671 | 866,646 | ||
Less accumulated depreciation and amortization | -283,281 | -284,271 | ||
Other property, plant and equipment, net | 576,390 | 582,375 | ||
Total property, plant and equipment, net | $6,126,074 | $8,479,977 | ||
[1] | Includes cumulative capitalized interest of approximately $20.7 million and $11.7 million at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | Includes cumulative capitalized interest of approximately $4.3 million at both September 30, 2013 and December 31, 2012. | |||
[3] | Includes cumulative capitalized interest of approximately $10.7 million and $7.1 million at September 30, 2013 and December 31, 2012, respectively. |
Property_Plant_and_Equipment_P
Property, Plant and Equipment (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Oil and natural gas proved properties | ' | ' |
Property, Plant and Equipment | ' | ' |
Cumulative capitalized interest | $20.70 | $11.70 |
Non-oil and natural gas equipment | ' | ' |
Property, Plant and Equipment | ' | ' |
Cumulative capitalized interest | 4.3 | 4.3 |
Buildings and structures | ' | ' |
Property, Plant and Equipment | ' | ' |
Cumulative capitalized interest | $10.70 | $7.10 |
Property_Pland_and_Equipment_A
Property, Pland and Equipment - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Property, Plant and Equipment | ' | ' | ' | ' |
Impairment | $687,000 | $0 | $16,330,000 | $0 |
Drilling Assets | ' | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' | ' |
Impairment | 500,000 | ' | 11,100,000 | ' |
Assets held-for-sale | 6,200,000 | ' | 6,200,000 | ' |
Corporate Asset | ' | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' | ' |
Impairment | ' | ' | 2,900,000 | ' |
Assets held-for-sale | 17,000,000 | ' | 17,000,000 | ' |
Midstream Pipe Inventory and Natural Gas Compressors | ' | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' | ' |
Impairment | $200,000 | ' | $2,300,000 | ' |
Other_Assets_Detail
Other Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Debt issuance costs, net of amortization | $64,283 | $83,643 |
Restricted deposits | 27,952 | 27,947 |
Notes receivable on asset retirement obligations | 11,655 | 11,433 |
Investments | 14,139 | 10,348 |
Other | 6,601 | 10,881 |
Total other assets | $124,630 | $144,252 |
Construction_Contracts_Additio
Construction Contracts - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Construction Contracts | ' | ' | ' | ' | ' |
Billings and contract loss in excess of costs incurred | $0 | ' | $0 | ' | $15,546,000 |
Costs in excess of billings and contract loss | 6,276,000 | ' | 6,276,000 | ' | 11,229,000 |
Construction contract revenue | 0 | 0 | 23,253,000 | 0 | ' |
Construction contract costs | 0 | 0 | 23,253,000 | 0 | ' |
Century Plant | ' | ' | ' | ' | ' |
Construction Contracts | ' | ' | ' | ' | ' |
Construction agreement description | ' | ' | 'The Company constructed the Century Plant for a contract price of $796.3 million, which included agreed upon change orders and scope revisions, that Occidental paid to the Company through periodic cost reimbursements based upon the percentage of the project completed. Upon substantial completion of construction in late 2012, Occidental took ownership and began operating the plant for the purpose of separating and removing CO2 from the delivered natural gas stream. | ' | ' |
Construction contract price | ' | ' | ' | ' | 796,300,000 |
Cumulative loss on construction contracts | ' | ' | ' | ' | 180,000,000 |
Billings and contract loss in excess of costs incurred | ' | ' | ' | ' | 15,546,000 |
Treating agreement contract term | ' | ' | '30 years | ' | ' |
Costs in excess of billings and contract loss | 4,000,000 | ' | 4,000,000 | ' | ' |
Transmission Expansion Projects | ' | ' | ' | ' | ' |
Construction Contracts | ' | ' | ' | ' | ' |
Construction agreement description | ' | ' | 'In the second quarter of 2013, the Company substantially completed the construction of a series of electrical transmission expansion and upgrade projects in northern Oklahoma for a third party. The Company constructed these projects for a contract price of $23.3 million, which included agreed upon change orders. Upon substantial completion of the contract, the Company recognized construction contract revenue and costs equal to the revised contract price of $23.3 million, which are included in the accompanying unaudited condensed consolidated statements of operations for the nine-month period ended September 30, 2013. | ' | ' |
Construction contract price | 23,253,000 | ' | 23,253,000 | ' | ' |
Costs in excess of billings and contract loss | 2,300,000 | ' | 2,300,000 | ' | 11,229,000 |
Construction contract revenue | ' | ' | 23,253,000 | ' | ' |
Construction contract costs | ' | ' | $23,253,000 | ' | ' |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument | ' | ' | ||
Debt | $3,194,784 | $4,301,083 | ||
Less: current maturities of long-term debt | 0 | 0 | ||
Long-term debt | 3,194,784 | 4,301,083 | ||
Senior credit facility | ' | ' | ||
Debt Instrument | ' | ' | ||
Debt | 0 | 0 | ||
9.875% Senior Notes due 2016, net of $8,843 discount at December 31, 2012 | ' | ' | ||
Debt Instrument | ' | ' | ||
Debt | 0 | [1] | 356,657 | [1] |
8.0% Senior Notes due 2018 | ' | ' | ||
Debt Instrument | ' | ' | ||
Debt | 0 | 750,000 | ||
8.75% Senior Notes due 2020, net of $5,420 and $5,873 discount, respectively | ' | ' | ||
Debt Instrument | ' | ' | ||
Debt | 444,580 | [2] | 444,127 | [2] |
7.5% Senior Notes due 2021, including a premium of $4,027 and $4,328, respectively | ' | ' | ||
Debt Instrument | ' | ' | ||
Debt | 1,179,027 | [3] | 1,179,328 | [3] |
8.125% Senior Notes due 2022 | ' | ' | ||
Debt Instrument | ' | ' | ||
Debt | 750,000 | 750,000 | ||
7.5% Senior Notes due 2023, net of $3,823 and $4,029 discount, respectively | ' | ' | ||
Debt Instrument | ' | ' | ||
Debt | $821,177 | [4] | $820,971 | [4] |
[1] | Carrying value is net of $8,843 discount at December 31, 2012. | |||
[2] | Carrying value is net of $5,420 and $5,873 discount at September 30, 2013 and December 31, 2012, respectively. | |||
[3] | Carrying value includes a premium, applicable to notes issued in August 2012, of $4,027 and $4,328 atSeptember 30, 2013 and December 31, 2012, respectively. | |||
[4] | Carrying value is net of $3,823 and $4,029 discount at September 30, 2013 and December 31, 2012, respectively. |
LongTerm_Debt_Parenthetical_De
Long-Term Debt (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 |
In Thousands, unless otherwise specified | |||
9.875% Senior Notes due 2016 | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Long-term debt, fixed interest rate | 9.88% | 9.88% | ' |
Debt maturity date | '2016 | '2016 | ' |
Long term debt, discount | 0 | 8,843 | ' |
8.0% Senior Notes due 2018 | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Long-term debt, fixed interest rate | 8.00% | 8.00% | ' |
Debt maturity date | '2018 | '2018 | ' |
8.75% Senior Notes due 2020 | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Long-term debt, fixed interest rate | 8.75% | 8.75% | ' |
Debt maturity date | '2020 | '2020 | ' |
Long term debt, discount | 5,420 | 5,873 | ' |
7.5% Senior Notes due 2021 | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Long-term debt, fixed interest rate | 7.50% | 7.50% | ' |
Debt maturity date | '2021 | '2021 | ' |
Long term debt, premium | 4,027 | 4,328 | ' |
8.125% Senior Notes due 2022 | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Long-term debt, fixed interest rate | 8.13% | 8.13% | 8.13% |
Debt maturity date | '2022 | '2022 | ' |
7.5% Senior Notes due 2023 | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Long-term debt, fixed interest rate | 7.50% | 7.50% | ' |
Debt maturity date | '2023 | '2023 | ' |
Long term debt, discount | 3,823 | 4,029 | ' |
Senior credit facility | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Debt maturity date | 'March 2017 | ' | ' |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Mar. 31, 2013 | Aug. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Aug. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Senior credit facility | Senior credit facility | Senior credit facility | Senior credit facility | Senior credit facility | Senior credit facility | Senior credit facility | Senior credit facility | Senior credit facility | Senior credit facility | Senior credit facility | 9.875% Senior Notes due 2016 | 9.875% Senior Notes due 2016 | 9.875% Senior Notes due 2016 | 8.0% Senior Notes due 2018 | 8.0% Senior Notes due 2018 | 8.0% Senior Notes due 2018 | 9.875% Senior Notes and 8.0% Senior Notes | 7.5% Senior Notes due 2023 | 7.5% Senior Notes due 2023 | 7.5% Senior Notes due 2023 | 7.5% Senior Notes due 2023 | 7.5% Senior Notes due 2021 | 7.5% Senior Notes due 2021 | 7.5% Senior Notes due 2021 | 7.5% Senior Notes due 2021 | 8.125% Senior Notes due 2022 | 8.125% Senior Notes due 2022 | 8.125% Senior Notes due 2022 | 8.125% Senior Notes due 2022 | 2012 Senior Notes | 2012 Senior Notes | Senior Notes | Senior Notes | Senior Floating Rate Notes due 2014 | LIBOR | LIBOR | Euro Dollar Rate | |||||
Minimum | Maximum | Addition to federal funds rate | Applicable margin to base rate per annum | Applicable margin to base rate per annum | Prior to additional debt issuance | 2012 Activity | 2012 Activity | 2012 Activity | 2012 Activity | 2012 Activity | 2012 Activity | 2012 Activity | Senior credit facility | Senior credit facility | Senior credit facility | |||||||||||||||||||||||||||
Minimum | Maximum | Addition to LIBOR per annum | Addition to LIBOR per annum | Addition to Eurodollar rate per annum | ||||||||||||||||||||||||||||||||||||||
Minimum | Maximum | |||||||||||||||||||||||||||||||||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, debt to EBITDA, ratio maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets to current liabilities, ratio minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, debt to EBITDA ratio, total funded debt determination | ' | ' | ' | ' | $10,000,000 | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturity date | ' | ' | ' | ' | 'March 2017 | 'March 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2016 | ' | '2016 | '2018 | ' | '2018 | ' | '2023 | '2023 | ' | ' | '2021 | '2021 | ' | ' | '2022 | '2022 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, financial covenants compliance | ' | ' | ' | ' | 'As of and during the three and nine-month periods ended September 30, 2013, the Company was in compliance with all applicable financial covenants under the senior credit facility. | 'As of and during the three and nine-month periods ended September 30, 2013, the Company was in compliance with all applicable financial covenants under the senior credit facility. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, guarantee | ' | ' | ' | ' | ' | 'The obligations under the senior credit facility are guaranteed by certain Company subsidiaries and are secured by first priority liens on all shares of capital stock of certain of the Company’s material present and future subsidiaries; certain intercompany debt of the Company; and substantially all of the Company’s assets, including proved oil and natural gas reserves representing at least 80.0% of the discounted present value (as defined in the senior credit facility) of proved oil and natural gas reserves considered by the lenders in determining the borrowing base for the senior credit facility. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, minimum collateral amount of proved oil and gas reserves representing the discounted present value of reserves used in borrowing base determination | ' | ' | ' | ' | 80.00% | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 0.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.63% | 1.75% | 2.75% | 1.00% |
Line of credit facility, interest rate determination reference | ' | ' | ' | ' | ' | '(a) LIBOR plus an applicable margin between 1.75% and 2.75% per annum or (b) the “base rate,†which is the highest of (i) the federal funds rate plus 0.5%, (ii) the prime rate published by Bank of America or (iii) the Eurodollar rate (as defined in the senior credit facility) plus 1.00% per annum, plus, in each case under scenario (b), an applicable margin between 0.75% and 1.75% per annum. Interest is payable quarterly for base rate loans and at the applicable maturity date for LIBOR loans, except that if the interest period for a LIBOR loan is six months, interest is paid at the end of each three-month period. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, unused capacity, commitment fee percentage | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility maximum borrowings capacity | ' | ' | ' | ' | 775,000,000 | 775,000,000 | 775,000,000 | 775,000,000 | 775,000,000 | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, amount outstanding | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credity facility, letters of credit outstanding | 27,600,000 | ' | 27,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance cost | 70,200,000 | ' | 70,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,000,000 | ' | ' | ' | ' | ' | ' |
Long-term debt, fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.88% | ' | 9.88% | 8.00% | ' | 8.00% | ' | 7.50% | 7.50% | ' | ' | 7.50% | 7.50% | ' | ' | 8.13% | 8.13% | 8.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument issuance date, month and year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'August 2012 | ' | ' | ' | ' | ' | ' | ' | 'April 2012 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 825,000,000 | ' | ' | ' | 275,000,000 | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from Senior Notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 730,100,000 | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Selling price of Senior Notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.50% | ' | ' | ' | 101.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt tender offer, aggregate principal amount tendered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 365,500,000 | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument redemption price per principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,061.34 | ' | ' | 1,052.77 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium paid to purchase notes and unamortized debt issuance cost in relation to the notes | 0 | 3,056,000 | 82,005,000 | 3,056,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82,005,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, restrictive covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Each of the indentures governing the Company’s Senior Fixed Rate Notes contains covenants that restrict the Company’s ability to take a variety of actions, including limitations on the incurrence of indebtedness, payment of dividends, investments, asset sales, certain asset purchases, transactions with related parties and consolidations or mergers. | ' | ' | ' | ' |
Debt instrument, covenant compliance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'As of and during the three and nine-month periods ended September 30, 2013, the Company was in compliance with all of the covenants contained in the indentures governing its senior notes. | 'As of and during the three and nine-month periods ended September 30, 2013, the Company was in compliance with all of the covenants contained in the indentures governing its senior notes. | ' | ' | ' | ' |
Debt instrument, repurchased percentage | ' | 100.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, repurchased face amount | ' | $350,000,000 | ' | $350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_Fair_Value_of_Deri
Derivatives - Fair Value of Derivative Contracts (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value | ' | ' |
Derivative assets | $58,086 | $130,403 |
Derivative liabilities | -95,315 | -110,411 |
Total net derivative contracts | -37,229 | 19,992 |
Current assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative assets | 21,686 | 91,346 |
Current assets | Oil Price Swaps | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative assets | 14,585 | 88,052 |
Current assets | Natural Gas Price Swaps | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative assets | 6,374 | 0 |
Current assets | Oil Basis Swaps | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative assets | 0 | 183 |
Current assets | Natural Gas Collars | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative assets | 727 | 3,111 |
Noncurrent assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative assets | 36,400 | 39,057 |
Noncurrent assets | Oil Price Swaps | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative assets | 23,050 | 37,983 |
Noncurrent assets | Oil Collars - Three Way | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative assets | 12,837 | 190 |
Noncurrent assets | Natural Gas Collars | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative assets | 513 | 884 |
Current liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liabilities | -49,851 | -35,184 |
Current liabilities | Oil Price Swaps | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liabilities | -43,519 | -31,991 |
Current liabilities | Oil Basis Swaps | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liabilities | 0 | -695 |
Current liabilities | Oil Collars - Two Way | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liabilities | -92 | -103 |
Current liabilities | Oil Collars - Three Way | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liabilities | -6,240 | 0 |
Current liabilities | Interest Rate Swap | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liabilities | 0 | -2,395 |
Noncurrent liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liabilities | -45,464 | -75,227 |
Noncurrent liabilities | Oil Price Swaps | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liabilities | -45,464 | -67,900 |
Noncurrent liabilities | Oil Collars - Three Way | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liabilities | $0 | ($7,327) |
Derivatives_Offsetting_Assets_
Derivatives - Offsetting Assets and Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Derivative assets, gross amounts | $58,086 | $130,403 |
Derivative assets, gross amounts offset | -34,302 | -35,764 |
Derivative assets, current | 8,306 | 71,022 |
Derivative assets, noncurrent | 15,478 | 23,617 |
Derivative assets, amounts net of offset | 23,784 | 94,639 |
Derivative assets, financial collateral | 0 | 0 |
Derivative assets, net amount | 23,784 | 94,639 |
Liabilities | ' | ' |
Derivative liabilities, gross amounts | 95,315 | 110,411 |
Derivative liabilities, gross amounts offset | -34,302 | -35,764 |
Derivative liabilities, current | 36,471 | 14,860 |
Derivative liabilities, noncurrent | 24,542 | 59,787 |
Derivative liabilities, amounts net of offset | 61,013 | 74,647 |
Derivative liabilities, financial collateral | -61,013 | -74,647 |
Derivative liabilities, net amount | 0 | 0 |
Current assets | ' | ' |
Assets | ' | ' |
Derivative assets, gross amounts | 21,686 | 91,346 |
Derivative assets, gross amounts offset | -13,380 | -20,324 |
Derivative assets, financial collateral | 0 | 0 |
Derivative assets, net amount | 8,306 | 71,022 |
Noncurrent assets | ' | ' |
Assets | ' | ' |
Derivative assets, gross amounts | 36,400 | 39,057 |
Derivative assets, gross amounts offset | -20,922 | -15,440 |
Derivative assets, financial collateral | 0 | 0 |
Derivative assets, net amount | 15,478 | 23,617 |
Current liabilities | ' | ' |
Liabilities | ' | ' |
Derivative liabilities, gross amounts | 49,851 | 35,184 |
Derivative liabilities, gross amounts offset | -13,380 | -20,324 |
Derivative liabilities, financial collateral | -36,471 | -14,860 |
Derivative liabilities, net amount | 0 | 0 |
Noncurrent liabilities | ' | ' |
Liabilities | ' | ' |
Derivative liabilities, gross amounts | 45,464 | 75,227 |
Derivative liabilities, gross amounts offset | -20,922 | -15,440 |
Derivative liabilities, financial collateral | -24,542 | -59,787 |
Derivative liabilities, net amount | $0 | $0 |
Derivatives_Cash_Settlements_a
Derivatives - Cash Settlements and Valuation Gains and Losses on Commodity Derivative Contracts and Interest Rate Swaps (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Derivative Instruments, (Gain) Loss | ' | ' | ' | ' | ||||
Loss (gain) due to change in fair value | ' | ' | $56,085 | ($234,705) | ||||
Loss (gain) on derivative contracts | 132,808 | 193,497 | 70,051 | -221,707 | ||||
Commodity Derivatives | ' | ' | ' | ' | ||||
Derivative Instruments, (Gain) Loss | ' | ' | ' | ' | ||||
Loss (gain) on settlement | 13,203 | [1] | -28,970 | [1] | 11,571 | [1] | 7,366 | [1] |
Loss (gain) due to change in fair value | 119,605 | 222,467 | 58,480 | -229,073 | ||||
Loss (gain) on derivative contracts | 132,808 | 193,497 | 70,051 | -221,707 | ||||
Interest Rate Swap | ' | ' | ' | ' | ||||
Derivative Instruments, (Gain) Loss | ' | ' | ' | ' | ||||
Loss (gain) on settlement | 0 | 2,330 | 2,409 | 6,824 | ||||
Loss (gain) due to change in fair value | 0 | -2,033 | -2,395 | -5,632 | ||||
Loss (gain) on derivative contracts | $0 | $297 | $14 | $1,192 | ||||
[1] | The three-month period ended September 30, 2012 included $2.1 million of gains related to settlements of commodity derivative contracts with contractual maturities after the quarterly period in which they were settled (“early settlementsâ€). The nine-month periods ended September 30, 2013 and 2012 included $29.3 million and $(59.5) million, respectively, of losses (gains) related to early settlements. The nine-month period ended September 30, 2012 also included $117.1 million of non-cash losses due to the amendment of derivative contracts in January 2012. |
Derivatives_Cash_Settlements_a1
Derivatives - Cash Settlements and Valuation Gains and Losses on Commodity Derivative Contracts and Interest Rate Swaps (Parenthetical) (Detail) (Commodity Derivatives, USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Derivative Instruments, (Gain) Loss | ' | ' | ' | ' | ||||
Loss (gain) on settlement | $13,203 | [1] | ($28,970) | [1] | $11,571 | [1] | $7,366 | [1] |
Early Settlements | ' | ' | ' | ' | ||||
Derivative Instruments, (Gain) Loss | ' | ' | ' | ' | ||||
Loss (gain) on settlement | ' | -2,100 | 29,300 | -59,500 | ||||
Amended | ' | ' | ' | ' | ||||
Derivative Instruments, (Gain) Loss | ' | ' | ' | ' | ||||
Loss (gain) on settlement | ' | ' | ' | $117,108 | ||||
[1] | The three-month period ended September 30, 2012 included $2.1 million of gains related to settlements of commodity derivative contracts with contractual maturities after the quarterly period in which they were settled (“early settlementsâ€). The nine-month periods ended September 30, 2013 and 2012 included $29.3 million and $(59.5) million, respectively, of losses (gains) related to early settlements. The nine-month period ended September 30, 2012 also included $117.1 million of non-cash losses due to the amendment of derivative contracts in January 2012. |
Derivatives_Open_Commodity_Der
Derivatives - Open Commodity Derivative Contracts (Detail) | 3 Months Ended |
Sep. 30, 2013 | |
MBbls | |
Oil Price Swaps | October 2013 - December 2013 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 3,494 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 99.48 |
Oil Price Swaps | January 2014 - December 2014 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 8,813 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 92.98 |
Oil Price Swaps | January 2015 - December 2015 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 6,614 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 85.25 |
Natural Gas Price Swaps | October 2013 - December 2013 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 12,420 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 4.11 |
Oil Collars - Two Way | October 2013 - December 2013 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 42 |
Collar Range, minimum | 80 |
Collar Range, maximum | 102.5 |
Oil Collars - Three Way | January 2014 - December 2014 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 8,213 |
Oil Collars - Three Way | January 2014 - December 2014 | Sold Put | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Collar Range, minimum | 70 |
Oil Collars - Three Way | January 2014 - December 2014 | Purchased Put | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Collar Range, minimum | 90.2 |
Oil Collars - Three Way | January 2014 - December 2014 | Sold Call | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Collar Range, maximum | 100 |
Oil Collars - Three Way | January 2015 - December 2015 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 2,920 |
Oil Collars - Three Way | January 2015 - December 2015 | Sold Put | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Collar Range, minimum | 73.13 |
Oil Collars - Three Way | January 2015 - December 2015 | Purchased Put | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Collar Range, minimum | 90.82 |
Oil Collars - Three Way | January 2015 - December 2015 | Sold Call | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Collar Range, maximum | 103.13 |
Natural Gas Collars | October 2013 - December 2013 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 1,716 |
Collar Range, minimum | 3.78 |
Collar Range, maximum | 6.71 |
Natural Gas Collars | January 2014 - December 2014 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 937 |
Collar Range, minimum | 4 |
Collar Range, maximum | 7.78 |
Natural Gas Collars | January 2015 - December 2015 | ' |
Derivative Instruments and Hedging Activities Disclosure | ' |
Notional (Oil in MBbls/Natural Gas in MMcf) | 1,010 |
Collar Range, minimum | 4 |
Collar Range, maximum | 8.55 |
Derivatives_Additional_Informa
Derivatives - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 |
Mississippian Trust I | Permian Trust | Mississippian Trust II | Interest Rate Swap | Senior Floating Rate Notes due 2014 | |
Fixed To Floating Interest Rate Swap Through April 1st 2013 | |||||
Derivative Instruments and Hedging Activities Disclosure | ' | ' | ' | ' | ' |
Notional amount of interest rate swaps | ' | ' | ' | ' | $350 |
Derivative, fixed interest rate | ' | ' | ' | ' | 6.69% |
Contract period end | ' | ' | ' | 1-Apr-13 | ' |
Derivative agreement effective date | 1-Apr-11 | 1-Aug-11 | 1-Apr-12 | ' | ' |
Commodity derivative contracts covering volumes of oil and gas production, date | 31-Dec-15 | 31-Mar-15 | 31-Dec-14 | ' | ' |
Asset_Retirement_Obligations_R
Asset Retirement Obligations - Reconciliation of Beginning and Ending Aggregate Carrying Amounts of Asset Retirement Obligations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Asset Retirement Obligation, Roll Forward Analysis | ' | ' | ' | ' | ' | |
Asset retirement obligations at December 31, 2012 | ' | ' | $498,410 | ' | ' | |
Liability incurred upon acquiring and drilling wells | ' | ' | 4,145 | 5,363 | ' | |
Revisions in estimated cash flows | ' | ' | -206 | ' | ' | |
Liability settled or disposed in current period(1) | ' | ' | -100,653 | [1] | ' | ' |
Accretion | 8,472 | 9,053 | 28,051 | 19,625 | ' | |
Asset retirement obligations at September 30, 2013 | 429,747 | ' | 429,747 | ' | ' | |
Less: current portion | 71,446 | ' | 71,446 | ' | 118,504 | |
Asset retirement obligations, net of current | $358,301 | ' | $358,301 | ' | $379,906 | |
[1] | Liability settled or disposed during the nine-month period ended September 30, 2013 includes $22.7 million for the settlement of a plugging and abandonment obligation associated with the Company’s Bullwinkle platform in the Gulf of Mexico and $15.2 million disposed in conjunction with the sale of the Permian Properties in February 2013. Additionally, $17.1 million and $21.3 million were spent in the East Breaks and West Delta regions, respectively, to decommission various platforms, pipeline and associated wells during the nine-month period ended September 30, 2013. |
Asset_Retirement_Obligations_R1
Asset Retirement Obligations - Reconciliation of Beginning and Ending Aggregate Carrying Amounts of Asset Retirement Obligations (Parenthetical) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | |
Reconciliation Of Changes In Asset Retirement Obligations | ' | |
Liability settled or disposed in current period(1) | ($100,653) | [1] |
Bullwinkle Platform | ' | |
Reconciliation Of Changes In Asset Retirement Obligations | ' | |
Liability settled or disposed in current period(1) | -22,700 | [1] |
Permian Properties | ' | |
Reconciliation Of Changes In Asset Retirement Obligations | ' | |
Liability settled or disposed in current period(1) | -15,200 | [1] |
East Breaks Region | Platforms, pipelines and associated wells | ' | |
Reconciliation Of Changes In Asset Retirement Obligations | ' | |
Liability settled or disposed in current period(1) | -17,100 | [1] |
West Delta Region | Platforms, pipelines and associated wells | ' | |
Reconciliation Of Changes In Asset Retirement Obligations | ' | |
Liability settled or disposed in current period(1) | ($21,300) | [1] |
[1] | Liability settled or disposed during the nine-month period ended September 30, 2013 includes $22.7 million for the settlement of a plugging and abandonment obligation associated with the Company’s Bullwinkle platform in the Gulf of Mexico and $15.2 million disposed in conjunction with the sale of the Permian Properties in February 2013. Additionally, $17.1 million and $21.3 million were spent in the East Breaks and West Delta regions, respectively, to decommission various platforms, pipeline and associated wells during the nine-month period ended September 30, 2013. |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | 0 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 28, 2013 | Oct. 30, 2013 |
Wesley West Minerals, Ltd and Longfellow Ranch Partners, LP | General Land Office of the State of Texas | Patriot Exploration, LLC, Jonathan Feldman, Redwing Drilling Partners, Mapleleaf Drilling Partners, Avalanche Drilling Partners, Penguin Drilling Partners and Gramax Insurance Company Ltd. | Treating Agreement | Treating Agreement | Treating Agreement | Kallick action | Kallick action | |
bcf | Minimum | Maximum | Subsequent Event | |||||
Commitments and Contingencies Disclosure | ' | ' | ' | ' | ' | ' | ' | ' |
Damages sought by plaintiff | $45.50 | $13 | ' | ' | ' | ' | $5 | ' |
Plaintiffs investment under participation agreement | ' | ' | 16 | ' | ' | ' | ' | ' |
Litigation settlement, amount | ' | ' | ' | ' | ' | ' | ' | 2.5 |
Contract agreement, term | ' | ' | ' | '30 years | ' | ' | ' | ' |
Minimum delivery required (in Bcf) | ' | ' | ' | 3,200 | ' | ' | ' | ' |
Estimated minimum delivery required remaining, long-term | ' | ' | ' | 3,000 | ' | ' | ' | ' |
Initial shortfall price per Mcf | ' | ' | ' | 0.25 | ' | ' | ' | ' |
Shortfall price per Mcf, final year of agreement | ' | ' | ' | 0.7 | ' | ' | ' | ' |
Range of projected shortfall in one year | ' | ' | ' | ' | $29.50 | $36 | ' | ' |
Equity_Preferred_Stock_Detail
Equity - Preferred Stock (Detail) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Class of Stock | ' | ' |
Shares authorized (in shares) | 50,000 | 50,000 |
Shares oustanding at end of period (in shares) | 7,650 | 7,650 |
8.5% Convertible perpetual preferred stock | ' | ' |
Class of Stock | ' | ' |
Shares oustanding at end of period (in shares) | 2,650 | 2,650 |
6.0% Convertible perpetual preferred stock | ' | ' |
Class of Stock | ' | ' |
Shares oustanding at end of period (in shares) | 2,000 | 2,000 |
7.0% Convertible perpetual preferred stock | ' | ' |
Class of Stock | ' | ' |
Shares oustanding at end of period (in shares) | 3,000 | 3,000 |
Equity_Preferred_Stock_Terms_D
Equity - Preferred Stock Terms (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
8.5% Convertible perpetual preferred stock | ' | ' |
Class of Stock | ' | ' |
Preferred stock, dividend rate, percentage | 8.50% | 8.50% |
Liquidation preference per share | $100 | ' |
Annual dividend per share (in dollars per share) | $8.50 | ' |
Conversion rate per share to common stock (in shares) | 12.4805 | ' |
Conversion date to common stock at Company's option | 20-Feb-14 | ' |
6.0% Convertible perpetual preferred stock | ' | ' |
Class of Stock | ' | ' |
Preferred stock, dividend rate, percentage | 6.00% | 6.00% |
Liquidation preference per share | $100 | ' |
Annual dividend per share (in dollars per share) | $6 | ' |
Conversion rate per share to common stock (in shares) | 9.2115 | ' |
Conversion date to common stock at Company's option | 21-Dec-14 | ' |
7.0% Convertible perpetual preferred stock | ' | ' |
Class of Stock | ' | ' |
Preferred stock, dividend rate, percentage | 7.00% | 7.00% |
Liquidation preference per share | $100 | ' |
Annual dividend per share (in dollars per share) | $7 | ' |
Conversion rate per share to common stock (in shares) | 12.8791 | ' |
Conversion date to common stock at Company's option | 20-Nov-15 | ' |
Equity_Preferred_Stock_Dividen
Equity - Preferred Stock Dividends (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Class of Stock | ' | ' | ' | ' |
Dividends Paid | $3,315 | $3,315 | $28,453 | $28,453 |
Dividends Unpaid | 10,566 | 10,566 | 13,191 | 13,191 |
Total | 13,881 | 13,881 | 41,644 | 41,644 |
8.5% Convertible perpetual preferred stock | ' | ' | ' | ' |
Class of Stock | ' | ' | ' | ' |
Dividends Paid | 2,815 | 2,815 | 14,078 | 14,078 |
Dividends Unpaid | 2,816 | 2,816 | 2,816 | 2,816 |
Total | 5,631 | 5,631 | 16,894 | 16,894 |
6.0% Convertible perpetual preferred stock | ' | ' | ' | ' |
Class of Stock | ' | ' | ' | ' |
Dividends Paid | 500 | 500 | 6,500 | 6,500 |
Dividends Unpaid | 2,500 | 2,500 | 2,500 | 2,500 |
Total | 3,000 | 3,000 | 9,000 | 9,000 |
7.0% Convertible perpetual preferred stock | ' | ' | ' | ' |
Class of Stock | ' | ' | ' | ' |
Dividends Paid | 0 | 0 | 7,875 | 7,875 |
Dividends Unpaid | 5,250 | 5,250 | 7,875 | 7,875 |
Total | $5,250 | $5,250 | $15,750 | $15,750 |
Equity_Common_Stock_Detail
Equity - Common Stock (Detail) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' |
Shares authorized (in shares) | 800,000 | 800,000 |
Shares outstanding at end of period (in shares) | 490,536 | 490,359 |
Shares held in treasury (in shares) | 1,269 | 1,219 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Equity Disclosure | ' | ' | ' | ' | ' |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ' | 50,000,000 | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | ' | $0.00 | ' |
Preferred stock, shares designated (in shares) | 7,700,000 | 7,700,000 | ' | 7,700,000 | ' |
Preferred stock, conversion terms | ' | ' | ' | 'Each outstanding share of convertible perpetual preferred stock is convertible at the holder’s option at any time into shares of the Company’s common stock at the specified conversion rate, subject to customary adjustments in certain circumstances. Each holder is entitled to an annual dividend payable semi-annually in cash, common stock or a combination thereof, at the Company’s election. The convertible perpetual preferred stock is not redeemable by the Company at any time. After the specified conversion date, the Company may cause all outstanding shares of the convertible perpetual preferred stock to convert automatically into common stock at the then-prevailing conversion rate if certain conditions are met. | ' |
Purchase of treasury stock | ' | ' | ' | ($29,661,000) | ' |
Retirement of treasury stock | ' | ' | ' | 0 | ' |
Stockholder settlement gross | ' | 5,000,000 | ' | ' | ' |
Additional paid-in capital—stockholder receivable | -5,000,000 | -5,000,000 | ' | -5,000,000 | ' |
Restricted common stock under incentive compensation plans, vesting period (in years) | ' | ' | ' | '4 years | ' |
Stock-based compensation | 6,800,000 | ' | 9,100,000 | 77,500,000 | 30,700,000 |
Stock-based compensation, capitalized | 1,300,000 | ' | 1,800,000 | 4,300,000 | 5,700,000 |
8.5% Convertible perpetual preferred stock | ' | ' | ' | ' | ' |
Equity Disclosure | ' | ' | ' | ' | ' |
Preferred stock, dividend rate, percentage | ' | ' | ' | 8.50% | 8.50% |
6.0% Convertible perpetual preferred stock | ' | ' | ' | ' | ' |
Equity Disclosure | ' | ' | ' | ' | ' |
Preferred stock, dividend rate, percentage | ' | ' | ' | 6.00% | 6.00% |
7.0% Convertible perpetual preferred stock | ' | ' | ' | ' | ' |
Equity Disclosure | ' | ' | ' | ' | ' |
Preferred stock, dividend rate, percentage | ' | ' | ' | 7.00% | 7.00% |
Treasury Stock | ' | ' | ' | ' | ' |
Equity Disclosure | ' | ' | ' | ' | ' |
Purchase of treasury stock (in shares) | ' | ' | ' | 5,600,000 | 1,500,000 |
Purchase of treasury stock | ' | ' | ' | -29,661,000 | -11,100,000 |
Retirement of treasury stock (in shares) | ' | ' | ' | 5,600,000 | 1,500,000 |
Retirement of treasury stock | ' | ' | ' | 29,661,000 | 11,100,000 |
Stockholder Rights Plan | Series A Junior Participating Preferred Stock | ' | ' | ' | ' | ' |
Equity Disclosure | ' | ' | ' | ' | ' |
Number of Rights issued per common share | 1 | ' | ' | 1 | ' |
Right expiration date | ' | ' | ' | 29-Apr-13 | ' |
Separation of Former Executives | ' | ' | ' | ' | ' |
Equity Disclosure | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | $48,500,000 | ' |
Income_Taxes_Benefit_Provision
Income Taxes - (Benefit) Provision for Income Taxes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Current | ' | ' | ' | ' |
Federal | $687 | $0 | $4,702 | ($71) |
State | 1,676 | 173 | 2,598 | -14 |
Current, total | 2,363 | 173 | 7,300 | -85 |
Deferred | ' | ' | ' | ' |
Federal | 0 | 0 | 0 | -97,345 |
State | 0 | 0 | 0 | -2,943 |
Deferred, total | 0 | 0 | 0 | -100,288 |
Total provision (benefit) | 2,363 | 173 | 7,300 | -100,373 |
Noncontrolling Interest | ' | ' | ' | ' |
Deferred | ' | ' | ' | ' |
Total provision (benefit) | 96 | 130 | 242 | 287 |
Parent Company | ' | ' | ' | ' |
Current | ' | ' | ' | ' |
State | ' | ' | 2,400 | ' |
Deferred | ' | ' | ' | ' |
Total provision (benefit) | $2,267 | $43 | $7,058 | ($100,660) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jul. 16, 2010 | Dec. 31, 2008 | |
Income Taxes | ' | ' | ' | ' | ' | ' | ' |
Income tax expense (benefit) | $2,363,000 | $173,000 | $7,300,000 | ($100,373,000) | ' | ' | ' |
Deferred tax assets, gross | 4,702,000 | ' | 4,702,000 | ' | ' | ' | ' |
Accrued income taxes, current | 4,702,000 | ' | 4,702,000 | ' | ' | ' | ' |
Valuation allowance, deferred tax asset, change in amount | ' | ' | 4,702,000 | -100,288,000 | ' | ' | ' |
Current state income tax expense | 1,676,000 | 173,000 | 2,598,000 | -14,000 | ' | ' | ' |
Federal net operating loss carryforwards subject to the IRC Section 382 limitation | ' | ' | ' | ' | ' | 629,800,000 | 298,400,000 |
Unrecognized tax benefits | 1,900,000 | ' | 1,900,000 | ' | 1,300,000 | ' | ' |
Unrecognized tax benefits that would affect the effective tax rate if recognized | 1,200,000 | ' | 1,200,000 | ' | ' | ' | ' |
Unrecognized tax benefits, accrued liability | 200,000 | ' | 200,000 | ' | 200,000 | ' | ' |
Decrease in gross unrecognized tax benefits balance within next twelve months | 1,600,000 | ' | 1,600,000 | ' | ' | ' | ' |
Arena Acquisition | ' | ' | ' | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' | ' | ' | ' |
Federal net operating loss carryforwards subject to the IRC Section 382 limitation | ' | ' | ' | ' | ' | 119,900,000 | ' |
Beginning tax year | ' | ' | ' | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' | ' | ' | ' |
Beginning tax year, years open for federal examination | ' | ' | '2010 | ' | ' | ' | ' |
Beginning tax year as result of federal NOL carryforwards | ' | ' | ' | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' | ' | ' | ' |
Beginning tax year, years open for federal examination | ' | ' | '2003 | ' | ' | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' | ' | ' | ' |
Number of tax years open for state tax audit (in years) | ' | ' | '3 years | ' | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' | ' | ' | ' |
Number of tax years open for state tax audit (in years) | ' | ' | '5 years | ' | ' | ' | ' |
Parent Company | ' | ' | ' | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' | ' | ' | ' |
Income tax expense (benefit) | 2,267,000 | 43,000 | 7,058,000 | -100,660,000 | ' | ' | ' |
Current state income tax expense | ' | ' | 2,400,000 | ' | ' | ' | ' |
Parent Company | Federal Alternative Minimum Tax | ' | ' | ' | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' | ' | ' | ' |
Income tax expense (benefit) | ' | ' | $7,058,000 | ' | ' | ' | ' |
Earnings_Per_Share_Calculation
Earnings Per Share - Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | ' | ' | ' | ' |
Weighted average basic common shares outstanding (in shares) | 483,582 | 476,037 | 480,209 | 445,991 |
Effect of dilutive securities | ' | ' | ' | ' |
Restricted stock (in shares) | 0 | 0 | 0 | 1,176 |
Convertible preferred stock (in shares) | 0 | 0 | 0 | 90,133 |
Weighted average diluted common and potential common shares outstanding (in shares) | 483,582 | 476,037 | 480,209 | 537,300 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
8.5% Convertible perpetual preferred stock | 8.5% Convertible perpetual preferred stock | 6.0% Convertible perpetual preferred stock | 6.0% Convertible perpetual preferred stock | 7.0% Convertible perpetual preferred stock | 7.0% Convertible perpetual preferred stock | |||
Earnings Per Share Disclosure | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock awards, antidilutive | 0.4 | 1 | ' | ' | ' | ' | ' | ' |
Preferred stock, dividend rate, percentage | ' | ' | 8.50% | 8.50% | 6.00% | 6.00% | 7.00% | 7.00% |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Related Party Transaction | ' | ' | ' | ' |
Sales to related parties | $0 | $2.80 | $1.60 | $9.80 |
Former Chairman and CEO Severance | ' | ' | ' | ' |
Related Party Transaction | ' | ' | ' | ' |
Severance, salary and bonus | ' | ' | 57.9 | ' |
Severance, liability | 4.6 | ' | 4.6 | ' |
Severance, number of monthly installments | ' | ' | 36 | ' |
Severance, compensation cost of accelerated shares | ' | ' | 36.8 | ' |
Severance, number of accelerated shares | ' | ' | 6.3 | ' |
Severance, salary and bonus payments | 53.3 | ' | ' | ' |
Annual Sponsorship Amount | ' | ' | ' | ' |
Related Party Transaction | ' | ' | ' | ' |
Annual license fee | ' | ' | 3.3 | ' |
Sponsorship Agreement | ' | ' | ' | ' |
Related Party Transaction | ' | ' | ' | ' |
Agreement termination year | ' | ' | '2013 | ' |
Lease with Related Party | ' | ' | ' | ' |
Related Party Transaction | ' | ' | ' | ' |
Contract agreement, term | ' | ' | '3 years | ' |
Annual Lease Obligation to Related Party | ' | ' | ' | ' |
Related Party Transaction | ' | ' | ' | ' |
Related party transaction amount | ' | ' | 0.5 | ' |
Leasehold Improvements under Lease with Related Party | ' | ' | ' | ' |
Related Party Transaction | ' | ' | ' | ' |
Related party transaction amount | ' | ' | $3.30 | ' |
Employee_Compensation_Plans_Pe
Employee Compensation Plans - Performance Units Fair Value Assumptions (Details) (Performance Units, USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Performance Units | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Expected price volatility range, minimum | 32.60% |
Expected price volatility range, maximum | 58.30% |
Risk-free interest rate | 0.40% |
Fair value per unit | $80.60 |
Employee_Compensation_Plans_Ad
Employee Compensation Plans - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 |
Final Payments Under Existing Cash Bonus Program | ' |
Employee Compensation Plans | ' |
Payments to employees | $10.90 |
Management Annual Incentive Plan | Minimum | ' |
Employee Compensation Plans | ' |
Incentive plan payout percentages of target values | 0.00% |
Management Annual Incentive Plan | Maximum | ' |
Employee Compensation Plans | ' |
Incentive plan payout percentages of target values | 200.00% |
Annual Incentive Plan | ' |
Employee Compensation Plans | ' |
Accrued bonuses | 19.9 |
Performance Units | ' |
Employee Compensation Plans | ' |
Incentive plan, number of performance units granted in period | 31,100 |
Incentive plan payout, performance below minimum target threshold | 0 |
Performance units liability | $0.80 |
Performance Units | Minimum | ' |
Employee Compensation Plans | ' |
Incentive plan payout percentages of target values | 50.00% |
Performance Units | Maximum | ' |
Employee Compensation Plans | ' |
Incentive plan payout percentages of target values | 200.00% |
Summarized_Financial_Informati
Summarized Financial Information Concerning Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | $493,603 | $532,798 | $1,518,280 | $1,392,867 | ' | ||||
Income (loss) from operations | 6,088 | [1] | -75,871 | [1] | -266,980 | [2] | 534,886 | [2] | ' |
Interest income (expense) | -61,385 | -81,894 | -208,454 | -217,428 | ' | ||||
Bargain purchase gain | 0 | 0 | 0 | 122,696 | ' | ||||
Loss on extinguishment of debt | 0 | -3,056 | -82,005 | -3,056 | ' | ||||
Other (expense) income, net | 658 | 1,242 | 1,163 | 3,629 | ' | ||||
(Loss) income before income taxes | -54,639 | -159,579 | -556,276 | 440,727 | ' | ||||
Capital expenditures | 322,582 | [3] | 560,058 | [3] | 1,098,452 | [3] | 1,691,770 | [3] | ' |
Depreciation, depletion, amortization, accretion and impairment | 162,068 | ' | 525,077 | ' | ' | ||||
Depreciation, depletion, amortization and accretion | 161,381 | 191,676 | 508,747 | 458,434 | ' | ||||
Total assets | 7,669,444 | ' | 7,669,444 | ' | 9,790,731 | ||||
Exploration and Production | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | 462,503 | 493,774 | 1,402,125 | 1,271,574 | ' | ||||
Income (loss) from operations | -11,604 | [1] | -48,454 | [1] | -71,645 | [2] | 614,045 | [2] | ' |
Interest income (expense) | 331 | 351 | 757 | 910 | ' | ||||
Bargain purchase gain | ' | ' | ' | 122,696 | ' | ||||
Loss on extinguishment of debt | ' | 0 | 0 | 0 | ' | ||||
Other (expense) income, net | -350 | -260 | 157 | 1,750 | ' | ||||
(Loss) income before income taxes | -11,623 | -48,363 | -70,731 | 739,401 | ' | ||||
Capital expenditures | 292,697 | [3] | 500,366 | [3] | 1,008,869 | [3] | 1,510,614 | [3] | ' |
Depreciation, depletion, amortization, accretion and impairment | 146,286 | ' | 462,683 | ' | ' | ||||
Depreciation, depletion, amortization and accretion | ' | 175,393 | ' | 412,924 | ' | ||||
Total assets | 6,009,608 | ' | 6,009,608 | ' | 8,681,056 | ||||
Drilling and Oil Field Services | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | 16,192 | 27,760 | 49,651 | 90,701 | ' | ||||
Income (loss) from operations | -8,276 | [1] | 2,515 | [1] | -36,684 | [2] | 10,672 | [2] | ' |
Interest income (expense) | 0 | 0 | 0 | 0 | ' | ||||
Bargain purchase gain | ' | ' | ' | 0 | ' | ||||
Loss on extinguishment of debt | ' | 0 | 0 | 0 | ' | ||||
Other (expense) income, net | 0 | 0 | 0 | 0 | ' | ||||
(Loss) income before income taxes | -8,276 | 2,515 | -36,684 | 10,672 | ' | ||||
Capital expenditures | 3,142 | [3] | 14,571 | [3] | 4,657 | [3] | 28,323 | [3] | ' |
Depreciation, depletion, amortization, accretion and impairment | 8,252 | ' | 36,544 | ' | ' | ||||
Depreciation, depletion, amortization and accretion | ' | 8,706 | ' | 25,880 | ' | ||||
Total assets | 166,485 | ' | 166,485 | ' | 199,523 | ||||
Midstream Services | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | 14,141 | 10,319 | 64,105 | 26,688 | ' | ||||
Income (loss) from operations | -7,691 | [1] | -3,434 | [1] | -18,106 | [2] | -9,792 | [2] | ' |
Interest income (expense) | 0 | -136 | 0 | -429 | ' | ||||
Bargain purchase gain | ' | ' | ' | 0 | ' | ||||
Loss on extinguishment of debt | ' | 0 | 0 | 0 | ' | ||||
Other (expense) income, net | -41 | 0 | -914 | 0 | ' | ||||
(Loss) income before income taxes | -7,732 | -3,570 | -19,020 | -10,221 | ' | ||||
Capital expenditures | 16,551 | [3] | 20,229 | [3] | 46,883 | [3] | 61,958 | [3] | ' |
Depreciation, depletion, amortization, accretion and impairment | 2,128 | ' | 7,832 | ' | ' | ||||
Depreciation, depletion, amortization and accretion | ' | 2,042 | ' | 5,170 | ' | ||||
Total assets | 185,131 | ' | 185,131 | ' | 151,492 | ||||
All Other | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | 767 | 945 | 2,399 | 3,904 | ' | ||||
Income (loss) from operations | 33,659 | [1] | -26,498 | [1] | -140,545 | [2] | -80,039 | [2] | ' |
Interest income (expense) | -61,716 | -82,109 | -209,211 | -217,909 | ' | ||||
Bargain purchase gain | ' | ' | ' | 0 | ' | ||||
Loss on extinguishment of debt | ' | -3,056 | -82,005 | -3,056 | ' | ||||
Other (expense) income, net | 1,049 | 1,502 | 1,920 | 1,879 | ' | ||||
(Loss) income before income taxes | -27,008 | -110,161 | -429,841 | -299,125 | ' | ||||
Capital expenditures | 10,192 | [3] | 24,892 | [3] | 38,043 | [3] | 90,875 | [3] | ' |
Depreciation, depletion, amortization, accretion and impairment | 5,402 | ' | 18,018 | ' | ' | ||||
Depreciation, depletion, amortization and accretion | ' | 5,535 | ' | 14,460 | ' | ||||
Total assets | 1,308,220 | ' | 1,308,220 | ' | 758,660 | ||||
Operating Segments | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | 545,752 | 621,001 | 1,685,130 | 1,655,283 | ' | ||||
Operating Segments | Exploration and Production | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | 462,582 | 493,848 | 1,402,366 | 1,271,803 | ' | ||||
Operating Segments | Drilling and Oil Field Services | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | 44,527 | 95,307 | 141,364 | 297,715 | ' | ||||
Operating Segments | Midstream Services | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | 37,876 | 30,901 | 139,001 | 81,861 | ' | ||||
Operating Segments | All Other | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | 767 | 945 | 2,399 | 3,904 | ' | ||||
Intersegment Eliminations | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | -52,149 | -88,203 | -166,850 | -262,416 | ' | ||||
Intersegment Eliminations | Exploration and Production | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | -79 | -74 | -241 | -229 | ' | ||||
Intersegment Eliminations | Drilling and Oil Field Services | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | -28,335 | -67,547 | -91,713 | -207,014 | ' | ||||
Intersegment Eliminations | Midstream Services | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | -23,735 | -20,582 | -74,896 | -55,173 | ' | ||||
Intersegment Eliminations | All Other | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ||||
Total revenues | $0 | $0 | $0 | $0 | ' | ||||
[1] | Exploration and production segment loss from operations includes losses due to changes in fair value of commodity derivative contracts of $119.6 million and $222.5 million for the three-month periods ended September 30, 2013 and 2012, respectively. | ||||||||
[2] | Exploration and production segment (loss) income from operations includes losses (gains) due to changes in fair value of commodity derivative contracts of $58.5 million and $(229.1) million for the nine-month periods ended September 30, 2013 and 2012, respectively. Exploration and production segment loss from operations also includes a loss on the sale of the Permian Properties of $398.9 million for the nine-month period ended September 30, 2013. | ||||||||
[3] | Presented on an accrual basis. |
Summarized_Financial_Informati1
Summarized Financial Information Concerning Segments (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting Information | ' | ' | ' | ' |
Loss (gain) due to change in fair value of derivative contracts | ' | ' | $56,085,000 | ($234,705,000) |
Permian Properties | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Gain (loss) on sale of oil and gas property | ' | ' | -398,900,000 | ' |
Commodity Derivatives | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Loss (gain) due to change in fair value of derivative contracts | 119,605,000 | 222,467,000 | 58,480,000 | -229,073,000 |
Exploration and Production | Permian Properties | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Gain (loss) on sale of oil and gas property | ' | ' | -398,900,000 | ' |
Exploration and Production | Commodity Derivatives | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Loss (gain) due to change in fair value of derivative contracts | $119,605,000 | $222,467,000 | $58,480,000 | ($229,073,000) |
Schedule_of_Condensed_Cash_Flo
Schedule of Condensed Cash Flow Revisions for Prior Periods (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | $595,007 | $584,230 |
Net cash (used in) provided by financing activities | -1,372,805 | 1,922,354 |
Parent | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | -157,030 | -173,036 |
Net cash (used in) provided by financing activities | 767,245 | 1,257,011 |
Parent | Condensed Cash Flow Revision | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | ' | 669,502 |
Net cash (used in) provided by financing activities | ' | -669,502 |
Guarantors | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | 539,973 | 519,827 |
Net cash (used in) provided by financing activities | -1,962,174 | 43,551 |
Guarantors | Condensed Cash Flow Revision | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | ' | -550,489 |
Net cash (used in) provided by financing activities | ' | 550,489 |
Non-Guarantors | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | 211,364 | 173,523 |
Net cash (used in) provided by financing activities | -211,496 | 451,936 |
Non-Guarantors | Condensed Cash Flow Revision | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | ' | -119,013 |
Net cash (used in) provided by financing activities | ' | $119,013 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidating Balance Sheets of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | $920,257 | $309,766 | $673,680 | $207,681 |
Accounts receivable, net | 390,882 | 445,506 | ' | ' |
Intercompany accounts receivable | 0 | 0 | ' | ' |
Derivative contracts | 8,306 | 71,022 | ' | ' |
Prepaid expenses | 37,857 | 31,319 | ' | ' |
Restricted deposit | 0 | 255,000 | ' | ' |
Other current assets | 45,960 | 30,272 | ' | ' |
Total current assets | 1,403,262 | 1,142,885 | ' | ' |
Property, plant and equipment, net | 6,126,074 | 8,479,977 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Derivative contracts | 15,478 | 23,617 | ' | ' |
Other assets | 124,630 | 144,252 | ' | ' |
Total assets | 7,669,444 | 9,790,731 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts payable and accrued expenses | 774,115 | 766,544 | ' | ' |
Intercompany accounts payable | 0 | 0 | ' | ' |
Derivative contracts | 36,471 | 14,860 | ' | ' |
Asset retirement obligations | 71,446 | 118,504 | ' | ' |
Deposit on pending sale | 0 | 255,000 | ' | ' |
Other current liabilities | ' | 15,546 | ' | ' |
Total current liabilities | 882,032 | 1,170,454 | ' | ' |
Long-term debt | 3,194,784 | 4,301,083 | ' | ' |
Derivative contracts | 24,542 | 59,787 | ' | ' |
Asset retirement obligations | 358,301 | 379,906 | ' | ' |
Other long-term obligations | 24,237 | 17,046 | ' | ' |
Total liabilities | 4,483,896 | 5,928,276 | ' | ' |
Equity | ' | ' | ' | ' |
SandRidge Energy, Inc. stockholders' equity | 1,813,859 | 2,368,853 | ' | ' |
Noncontrolling interest | 1,371,689 | 1,493,602 | ' | ' |
Total equity | 3,185,548 | 3,862,455 | ' | ' |
Total liabilities and equity | 7,669,444 | 9,790,731 | ' | ' |
Parent | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 910,443 | 300,228 | 663,359 | 204,015 |
Accounts receivable, net | 0 | 0 | ' | ' |
Intercompany accounts receivable | 88,834 | 2,162,471 | ' | ' |
Derivative contracts | 0 | 0 | ' | ' |
Prepaid expenses | 0 | 0 | ' | ' |
Restricted deposit | ' | 0 | ' | ' |
Other current assets | 1,375 | 1,375 | ' | ' |
Total current assets | 1,000,652 | 2,464,074 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Investment in subsidiaries | 5,157,937 | 5,425,907 | ' | ' |
Derivative contracts | 0 | 0 | ' | ' |
Other assets | 64,284 | 83,642 | ' | ' |
Total assets | 6,222,873 | 7,973,623 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts payable and accrued expenses | 170,920 | 261,215 | ' | ' |
Intercompany accounts payable | 978,981 | 975,578 | ' | ' |
Derivative contracts | 0 | 2,394 | ' | ' |
Asset retirement obligations | 0 | 0 | ' | ' |
Deposit on pending sale | ' | 0 | ' | ' |
Other current liabilities | ' | 0 | ' | ' |
Total current liabilities | 1,149,901 | 1,239,187 | ' | ' |
Long-term debt | 3,200,686 | 4,306,985 | ' | ' |
Derivative contracts | 0 | 0 | ' | ' |
Asset retirement obligations | 0 | 0 | ' | ' |
Other long-term obligations | 1,876 | 1,329 | ' | ' |
Total liabilities | 4,352,463 | 5,547,501 | ' | ' |
Equity | ' | ' | ' | ' |
SandRidge Energy, Inc. stockholders' equity | 1,870,410 | 2,426,122 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | ' |
Total equity | 1,870,410 | 2,426,122 | ' | ' |
Total liabilities and equity | 6,222,873 | 7,973,623 | ' | ' |
Guarantors | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 838 | 922 | 824 | 437 |
Accounts receivable, net | 366,791 | 411,197 | ' | ' |
Intercompany accounts receivable | 1,000,435 | 397,238 | ' | ' |
Derivative contracts | 4,530 | 60,736 | ' | ' |
Prepaid expenses | 37,776 | 31,135 | ' | ' |
Restricted deposit | ' | 255,000 | ' | ' |
Other current assets | 27,462 | 24,188 | ' | ' |
Total current assets | 1,437,832 | 1,180,416 | ' | ' |
Property, plant and equipment, net | 4,972,981 | 7,236,685 | ' | ' |
Investment in subsidiaries | -88,307 | -86,235 | ' | ' |
Derivative contracts | 12,089 | 15,957 | ' | ' |
Other assets | 66,208 | 66,512 | ' | ' |
Total assets | 6,400,803 | 8,413,335 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts payable and accrued expenses | 597,412 | 492,866 | ' | ' |
Intercompany accounts payable | 113,285 | 1,594,180 | ' | ' |
Derivative contracts | 43,465 | 30,664 | ' | ' |
Asset retirement obligations | 71,446 | 118,504 | ' | ' |
Deposit on pending sale | ' | 255,000 | ' | ' |
Other current liabilities | ' | 15,546 | ' | ' |
Total current liabilities | 825,608 | 2,506,760 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Derivative contracts | 36,596 | 85,241 | ' | ' |
Asset retirement obligations | 358,301 | 379,710 | ' | ' |
Other long-term obligations | 22,361 | 15,717 | ' | ' |
Total liabilities | 1,242,866 | 2,987,428 | ' | ' |
Equity | ' | ' | ' | ' |
SandRidge Energy, Inc. stockholders' equity | 5,157,937 | 5,425,907 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | ' |
Total equity | 5,157,937 | 5,425,907 | ' | ' |
Total liabilities and equity | 6,400,803 | 8,413,335 | ' | ' |
Non-Guarantors | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 8,976 | 8,616 | 9,497 | 3,229 |
Accounts receivable, net | 24,091 | 34,309 | ' | ' |
Intercompany accounts receivable | 75,743 | 683,406 | ' | ' |
Derivative contracts | 10,770 | 28,484 | ' | ' |
Prepaid expenses | 81 | 184 | ' | ' |
Restricted deposit | ' | 0 | ' | ' |
Other current assets | 17,123 | 4,709 | ' | ' |
Total current assets | 136,784 | 759,708 | ' | ' |
Property, plant and equipment, net | 1,208,678 | 1,298,877 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Derivative contracts | 15,443 | 33,114 | ' | ' |
Other assets | 40 | 0 | ' | ' |
Total assets | 1,360,945 | 2,091,699 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts payable and accrued expenses | 5,783 | 12,463 | ' | ' |
Intercompany accounts payable | 71,780 | 671,673 | ' | ' |
Derivative contracts | 0 | 0 | ' | ' |
Asset retirement obligations | 0 | 0 | ' | ' |
Deposit on pending sale | ' | 0 | ' | ' |
Other current liabilities | ' | 0 | ' | ' |
Total current liabilities | 77,563 | 684,136 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Derivative contracts | 0 | 0 | ' | ' |
Asset retirement obligations | 0 | 196 | ' | ' |
Other long-term obligations | 0 | 0 | ' | ' |
Total liabilities | 77,563 | 684,332 | ' | ' |
Equity | ' | ' | ' | ' |
SandRidge Energy, Inc. stockholders' equity | 1,283,382 | 1,407,367 | ' | ' |
Noncontrolling interest | 0 | 0 | ' | ' |
Total equity | 1,283,382 | 1,407,367 | ' | ' |
Total liabilities and equity | 1,360,945 | 2,091,699 | ' | ' |
Eliminations | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ' | ' |
Intercompany accounts receivable | -1,165,012 | -3,243,115 | ' | ' |
Derivative contracts | -6,994 | -18,198 | ' | ' |
Prepaid expenses | 0 | 0 | ' | ' |
Restricted deposit | ' | 0 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Total current assets | -1,172,006 | -3,261,313 | ' | ' |
Property, plant and equipment, net | -55,585 | -55,585 | ' | ' |
Investment in subsidiaries | -5,069,630 | -5,339,672 | ' | ' |
Derivative contracts | -12,054 | -25,454 | ' | ' |
Other assets | -5,902 | -5,902 | ' | ' |
Total assets | -6,315,177 | -8,687,926 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts payable and accrued expenses | 0 | 0 | ' | ' |
Intercompany accounts payable | -1,164,046 | -3,241,431 | ' | ' |
Derivative contracts | -6,994 | -18,198 | ' | ' |
Asset retirement obligations | 0 | 0 | ' | ' |
Deposit on pending sale | ' | 0 | ' | ' |
Other current liabilities | ' | 0 | ' | ' |
Total current liabilities | -1,171,040 | -3,259,629 | ' | ' |
Long-term debt | -5,902 | -5,902 | ' | ' |
Derivative contracts | -12,054 | -25,454 | ' | ' |
Asset retirement obligations | 0 | 0 | ' | ' |
Other long-term obligations | 0 | 0 | ' | ' |
Total liabilities | -1,188,996 | -3,290,985 | ' | ' |
Equity | ' | ' | ' | ' |
SandRidge Energy, Inc. stockholders' equity | -6,497,870 | -6,890,543 | ' | ' |
Noncontrolling interest | 1,371,689 | 1,493,602 | ' | ' |
Total equity | -5,126,181 | -5,396,941 | ' | ' |
Total liabilities and equity | ($6,315,177) | ($8,687,926) | ' | ' |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidating Statements of Operations of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' | ||||
Total revenues | $493,603 | $532,798 | $1,518,280 | $1,392,867 | ||||
Expenses | ' | ' | ' | ' | ||||
Direct operating expenses | 152,669 | 176,715 | 499,093 | 458,701 | ||||
General and administrative | 39,970 | 46,781 | 292,675 | 158,798 | ||||
Depreciation, depletion, amortization and accretion | 161,381 | 191,676 | 508,747 | 458,434 | ||||
Impairment | 687 | 0 | 16,330 | 0 | ||||
(Gain) loss on derivative contracts | 132,808 | 193,497 | 70,051 | -221,707 | ||||
Loss on sale of assets | 539 | 375 | 398,364 | 3,755 | ||||
Total expenses | 487,515 | 608,669 | 1,785,260 | 857,981 | ||||
(Loss) income from operations | 6,088 | [1] | -75,871 | [1] | -266,980 | [2] | 534,886 | [2] |
Equity earnings from subsidiaries | 0 | 0 | 0 | 0 | ||||
Interest income (expense) | -61,385 | -81,894 | -208,454 | -217,428 | ||||
Gain on sale of investment in subsidiary | ' | ' | ' | 0 | ||||
Bargain purchase gain | 0 | 0 | 0 | 122,696 | ||||
Loss on extinguishment of debt | 0 | -3,056 | -82,005 | -3,056 | ||||
Other income, net | 658 | 1,242 | 1,163 | 3,629 | ||||
(Loss) income before income taxes | -54,639 | -159,579 | -556,276 | 440,727 | ||||
Income tax (benefit) expense | 2,363 | 173 | 7,300 | -100,373 | ||||
Net (loss) income | -57,002 | -159,752 | -563,576 | 541,100 | ||||
Less: net income attributable to noncontrolling interest | 16,191 | 10,668 | 9,393 | 111,626 | ||||
Net (loss) income attributable to SandRidge Energy, Inc. | -73,193 | -170,420 | -572,969 | 429,474 | ||||
Parent | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' | ||||
Total revenues | 0 | 0 | 0 | 0 | ||||
Expenses | ' | ' | ' | ' | ||||
Direct operating expenses | 0 | 0 | 0 | 0 | ||||
General and administrative | 83 | 244 | 258 | 429 | ||||
Depreciation, depletion, amortization and accretion | 0 | 0 | 0 | 0 | ||||
Impairment | 0 | ' | 0 | ' | ||||
(Gain) loss on derivative contracts | 0 | 0 | 0 | 0 | ||||
Loss on sale of assets | ' | ' | 0 | 0 | ||||
Total expenses | 83 | 244 | 258 | 429 | ||||
(Loss) income from operations | -83 | -244 | -258 | -429 | ||||
Equity earnings from subsidiaries | -2,483 | -84,956 | -267,969 | 621,224 | ||||
Interest income (expense) | -61,716 | -82,110 | -209,211 | -217,343 | ||||
Gain on sale of investment in subsidiary | ' | ' | ' | 55,585 | ||||
Bargain purchase gain | ' | ' | ' | 0 | ||||
Loss on extinguishment of debt | ' | -3,056 | -82,005 | -3,056 | ||||
Other income, net | 0 | 0 | 0 | 0 | ||||
(Loss) income before income taxes | -64,282 | -170,366 | -559,443 | 455,981 | ||||
Income tax (benefit) expense | 2,228 | 42 | 6,955 | -100,738 | ||||
Net (loss) income | -66,510 | -170,408 | -566,398 | 556,719 | ||||
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net (loss) income attributable to SandRidge Energy, Inc. | -66,510 | -170,408 | -566,398 | 556,719 | ||||
Guarantors | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' | ||||
Total revenues | 411,847 | 447,391 | 1,277,289 | 1,172,206 | ||||
Expenses | ' | ' | ' | ' | ||||
Direct operating expenses | 147,427 | 167,014 | 475,463 | 431,455 | ||||
General and administrative | 38,894 | 45,600 | 287,365 | 153,665 | ||||
Depreciation, depletion, amortization and accretion | 140,350 | 165,269 | 441,538 | 396,524 | ||||
Impairment | 515 | ' | 13,218 | ' | ||||
(Gain) loss on derivative contracts | 103,215 | 159,757 | 45,462 | -181,389 | ||||
Loss on sale of assets | ' | ' | 291,516 | -834 | ||||
Total expenses | 430,401 | 537,640 | 1,554,562 | 799,421 | ||||
(Loss) income from operations | -18,554 | -90,249 | -277,273 | 372,785 | ||||
Equity earnings from subsidiaries | 7,803 | 3,836 | -606 | 50,476 | ||||
Interest income (expense) | 331 | 215 | 757 | 480 | ||||
Gain on sale of investment in subsidiary | ' | ' | ' | 0 | ||||
Bargain purchase gain | ' | ' | ' | 122,696 | ||||
Loss on extinguishment of debt | ' | 0 | 0 | 0 | ||||
Other income, net | 7,937 | 1,242 | 9,153 | 74,787 | ||||
(Loss) income before income taxes | -2,483 | -84,956 | -267,969 | 621,224 | ||||
Income tax (benefit) expense | 0 | 0 | 0 | 0 | ||||
Net (loss) income | -2,483 | -84,956 | -267,969 | 621,224 | ||||
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net (loss) income attributable to SandRidge Energy, Inc. | -2,483 | -84,956 | -267,969 | 621,224 | ||||
Non-Guarantors | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' | ||||
Total revenues | 81,830 | 112,501 | 241,314 | 313,872 | ||||
Expenses | ' | ' | ' | ' | ||||
Direct operating expenses | 5,922 | 36,369 | 24,671 | 118,861 | ||||
General and administrative | 993 | 1,354 | 5,052 | 5,801 | ||||
Depreciation, depletion, amortization and accretion | 21,031 | 26,407 | 67,209 | 61,910 | ||||
Impairment | 172 | ' | 3,112 | ' | ||||
(Gain) loss on derivative contracts | 29,593 | 33,740 | 24,589 | -40,318 | ||||
Loss on sale of assets | ' | ' | 106,848 | 4,589 | ||||
Total expenses | 57,711 | 97,870 | 231,481 | 150,843 | ||||
(Loss) income from operations | 24,119 | 14,631 | 9,833 | 163,029 | ||||
Equity earnings from subsidiaries | 0 | 0 | 0 | 0 | ||||
Interest income (expense) | 0 | 1 | 0 | -565 | ||||
Bargain purchase gain | ' | ' | ' | 0 | ||||
Loss on extinguishment of debt | ' | 0 | 0 | 0 | ||||
Other income, net | 10 | 0 | -701 | 0 | ||||
(Loss) income before income taxes | 24,129 | 14,632 | 9,132 | 162,464 | ||||
Income tax (benefit) expense | 135 | 131 | 345 | 365 | ||||
Net (loss) income | 23,994 | 14,501 | 8,787 | 162,099 | ||||
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net (loss) income attributable to SandRidge Energy, Inc. | 23,994 | 14,501 | 8,787 | 162,099 | ||||
Eliminations | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions | ' | ' | ' | ' | ||||
Total revenues | -74 | -27,094 | -323 | -93,211 | ||||
Expenses | ' | ' | ' | ' | ||||
Direct operating expenses | -680 | -26,668 | -1,041 | -91,615 | ||||
General and administrative | 0 | -417 | 0 | -1,097 | ||||
Depreciation, depletion, amortization and accretion | 0 | 0 | 0 | 0 | ||||
Impairment | 0 | ' | 0 | ' | ||||
(Gain) loss on derivative contracts | 0 | 0 | 0 | 0 | ||||
Loss on sale of assets | ' | ' | 0 | 0 | ||||
Total expenses | -680 | -27,085 | -1,041 | -92,712 | ||||
(Loss) income from operations | 606 | -9 | 718 | -499 | ||||
Equity earnings from subsidiaries | -5,320 | 81,120 | 268,575 | -671,700 | ||||
Interest income (expense) | 0 | 0 | 0 | 0 | ||||
Gain on sale of investment in subsidiary | ' | ' | ' | -55,585 | ||||
Bargain purchase gain | ' | ' | ' | 0 | ||||
Loss on extinguishment of debt | ' | 0 | 0 | 0 | ||||
Other income, net | -7,289 | 0 | -7,289 | -71,158 | ||||
(Loss) income before income taxes | -12,003 | 81,111 | 262,004 | -798,942 | ||||
Income tax (benefit) expense | 0 | 0 | 0 | 0 | ||||
Net (loss) income | -12,003 | 81,111 | 262,004 | -798,942 | ||||
Less: net income attributable to noncontrolling interest | 16,191 | 10,668 | 9,393 | 111,626 | ||||
Net (loss) income attributable to SandRidge Energy, Inc. | ($28,194) | $70,443 | $252,611 | ($910,568) | ||||
[1] | Exploration and production segment loss from operations includes losses due to changes in fair value of commodity derivative contracts of $119.6 million and $222.5 million for the three-month periods ended September 30, 2013 and 2012, respectively. | |||||||
[2] | Exploration and production segment (loss) income from operations includes losses (gains) due to changes in fair value of commodity derivative contracts of $58.5 million and $(229.1) million for the nine-month periods ended September 30, 2013 and 2012, respectively. Exploration and production segment loss from operations also includes a loss on the sale of the Permian Properties of $398.9 million for the nine-month period ended September 30, 2013. |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidating Statements of Cash Flows of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | $595,007 | $584,230 |
Cash flows from investing activities | ' | ' |
Capital expenditures for property, plant and equipment | -1,163,539 | -1,625,737 |
Acquisition of assets | -15,527 | -837,019 |
Proceeds from sale of assets | 2,567,355 | 422,171 |
Conveyance of property for royalty trust | ' | 0 |
Other | -15,527 | 0 |
Net cash provided by (used in) investing activities | 1,388,289 | -2,040,585 |
Cash flows from financing activities | ' | ' |
Proceeds from borrowings | 0 | 1,850,344 |
Repayments of borrowings | -1,115,500 | -366,029 |
Debt issuance costs | -91 | -48,220 |
Proceeds from issuance of royalty trust units | 0 | 587,086 |
Proceeds from the sale of royalty trust units | ' | 123,548 |
Distributions to unitholders | -153,002 | -127,023 |
Premium on debt redemption | -61,997 | -825 |
Intercompany borrowings (advances), net | 0 | 0 |
Dividends paid - preferred | -45,025 | -45,025 |
Cash (paid) received on settlement of financing derivative contracts | 5,099 | -38,703 |
Other | -42,306 | -52,327 |
Net cash (used in) provided by financing activities | -1,372,805 | 1,922,354 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 610,491 | 465,999 |
CASH AND CASH EQUIVALENTS, beginning of year | 309,766 | 207,681 |
CASH AND CASH EQUIVALENTS, end of period | 920,257 | 673,680 |
Parent | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | -157,030 | -173,036 |
Cash flows from investing activities | ' | ' |
Capital expenditures for property, plant and equipment | 0 | 0 |
Acquisition of assets | ' | -693,090 |
Proceeds from sale of assets | 0 | 129,830 |
Conveyance of property for royalty trust | ' | 0 |
Other | 0 | -61,371 |
Net cash provided by (used in) investing activities | 0 | -624,631 |
Cash flows from financing activities | ' | ' |
Proceeds from borrowings | ' | 1,850,344 |
Repayments of borrowings | -1,115,500 | -350,000 |
Debt issuance costs | ' | -48,220 |
Proceeds from issuance of royalty trust units | ' | 0 |
Proceeds from the sale of royalty trust units | ' | 0 |
Distributions to unitholders | 0 | 0 |
Premium on debt redemption | -61,997 | ' |
Intercompany borrowings (advances), net | 2,021,132 | -136,464 |
Dividends paid - preferred | ' | -45,025 |
Other | -76,390 | -13,624 |
Net cash (used in) provided by financing activities | 767,245 | 1,257,011 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 610,215 | 459,344 |
CASH AND CASH EQUIVALENTS, beginning of year | 300,228 | 204,015 |
CASH AND CASH EQUIVALENTS, end of period | 910,443 | 663,359 |
Guarantors | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | 539,973 | 519,827 |
Cash flows from investing activities | ' | ' |
Capital expenditures for property, plant and equipment | -1,163,539 | -1,592,297 |
Acquisition of assets | ' | -143,929 |
Proceeds from sale of assets | 2,566,900 | 346,591 |
Conveyance of property for royalty trust | ' | 575,485 |
Other | 18,756 | 251,159 |
Net cash provided by (used in) investing activities | 1,422,117 | -562,991 |
Cash flows from financing activities | ' | ' |
Proceeds from borrowings | ' | 0 |
Repayments of borrowings | 0 | 0 |
Debt issuance costs | ' | 0 |
Proceeds from issuance of royalty trust units | ' | 0 |
Proceeds from the sale of royalty trust units | ' | 0 |
Distributions to unitholders | 0 | 0 |
Premium on debt redemption | 0 | ' |
Intercompany borrowings (advances), net | -2,025,243 | 82,255 |
Dividends paid - preferred | ' | 0 |
Other | 63,069 | -38,704 |
Net cash (used in) provided by financing activities | -1,962,174 | 43,551 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -84 | 387 |
CASH AND CASH EQUIVALENTS, beginning of year | 922 | 437 |
CASH AND CASH EQUIVALENTS, end of period | 838 | 824 |
Non-Guarantors | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | 211,364 | 173,523 |
Cash flows from investing activities | ' | ' |
Capital expenditures for property, plant and equipment | 0 | -33,440 |
Acquisition of assets | ' | 0 |
Proceeds from sale of assets | 455 | 1,335 |
Conveyance of property for royalty trust | ' | -587,086 |
Other | 37 | 0 |
Net cash provided by (used in) investing activities | 492 | -619,191 |
Cash flows from financing activities | ' | ' |
Proceeds from borrowings | ' | 0 |
Repayments of borrowings | 0 | -16,029 |
Debt issuance costs | ' | 0 |
Proceeds from issuance of royalty trust units | ' | 587,086 |
Proceeds from the sale of royalty trust units | ' | 0 |
Distributions to unitholders | -226,404 | -193,263 |
Premium on debt redemption | 0 | ' |
Intercompany borrowings (advances), net | 4,111 | 54,209 |
Dividends paid - preferred | ' | 0 |
Other | 10,797 | 19,933 |
Net cash (used in) provided by financing activities | -211,496 | 451,936 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 360 | 6,268 |
CASH AND CASH EQUIVALENTS, beginning of year | 8,616 | 3,229 |
CASH AND CASH EQUIVALENTS, end of period | 8,976 | 9,497 |
Eliminations | ' | ' |
Condensed Financial Statements, Captions | ' | ' |
Net cash (used in) provided by operating activities | 700 | 63,916 |
Cash flows from investing activities | ' | ' |
Capital expenditures for property, plant and equipment | 0 | 0 |
Acquisition of assets | ' | 0 |
Proceeds from sale of assets | 0 | -55,585 |
Conveyance of property for royalty trust | ' | 11,601 |
Other | -34,320 | -189,788 |
Net cash provided by (used in) investing activities | -34,320 | -233,772 |
Cash flows from financing activities | ' | ' |
Proceeds from borrowings | ' | 0 |
Repayments of borrowings | 0 | 0 |
Debt issuance costs | ' | 0 |
Proceeds from issuance of royalty trust units | ' | 0 |
Proceeds from the sale of royalty trust units | ' | 123,548 |
Distributions to unitholders | 73,402 | 66,240 |
Premium on debt redemption | 0 | ' |
Intercompany borrowings (advances), net | 0 | 0 |
Dividends paid - preferred | ' | 0 |
Other | -39,782 | -19,932 |
Net cash (used in) provided by financing activities | 33,620 | 169,856 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS, beginning of year | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of period | $0 | $0 |
Subsequent_Events_Royalty_Trus
Subsequent Events - Royalty Trust Distributions (Detail) (Royalty Trust Distributions, USD $) | Oct. 24, 2013 |
In Thousands, unless otherwise specified | |
Royalty Trusts | ' |
Subsequent Event | ' |
Total distribution | $73,260 |
Amount to be distributed to third-party unitholders | 53,468 |
Mississippian Trust I | ' |
Subsequent Event | ' |
Total distribution | 12,660 |
Amount to be distributed to third-party unitholders | 12,342 |
Permian Trust | ' |
Subsequent Event | ' |
Total distribution | 34,223 |
Amount to be distributed to third-party unitholders | 24,483 |
Mississippian Trust II | ' |
Subsequent Event | ' |
Total distribution | 26,377 |
Amount to be distributed to third-party unitholders | $16,643 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Royalty Trust Distributions, Royalty Trusts) | 0 Months Ended |
Oct. 24, 2013 | |
Royalty Trust Distributions | Royalty Trusts | ' |
Subsequent Event | ' |
Subsequent event, description | 'On October 24, 2013, the Royalty Trusts announced quarterly distributions for the three-month period ended September 30, 2013. The following distributions are expected to be paid on November 29, 2013 to holders of record as of the close of business on November 14, 2013. |
Expected distribution date | 'November 29, 2013 |
Distributions record date | 'November 14, 2013 |