Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2014 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SANDRIDGE ENERGY INC | |
Trading Symbol | SD | |
Entity Central Index Key | 1349436 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 30-Sep-14 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 484,828,817 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ||||
Cash and cash equivalents | $590,246 | $814,663 | ||
Accounts receivable, net | 330,543 | 349,218 | ||
Derivative contracts | 53,919 | 12,779 | ||
Prepaid expenses | 6,794 | 39,253 | ||
Other current assets | 23,223 | 25,910 | ||
Total current assets | 1,004,725 | 1,241,823 | ||
Oil and natural gas properties, using full cost method of accounting | ||||
Proved | 11,252,074 | [1] | 10,972,816 | [1] |
Unproved | 300,224 | 531,606 | ||
Less: accumulated depreciation, depletion and impairment | -6,250,457 | -5,762,969 | ||
Net oil and natural gas properties capitalized costs | 5,301,841 | 5,741,453 | ||
Other property, plant and equipment, net | 578,864 | 566,222 | ||
Derivative contracts | 15,891 | 14,126 | ||
Other assets | 77,068 | 121,171 | ||
Total assets | 6,978,389 | 7,684,795 | ||
Current liabilities | ||||
Accounts payable and accrued expenses | 652,649 | 812,488 | ||
Derivative contracts | 0 | 34,267 | ||
Asset retirement obligations | 0 | 87,063 | ||
Other current liabilities | 18,549 | 0 | ||
Total current liabilities | 671,198 | 933,818 | ||
Long-term debt | 3,195,301 | 3,194,907 | ||
Derivative contracts | 0 | 20,564 | ||
Asset retirement obligations | 57,696 | 337,054 | ||
Other long-term obligations | 16,418 | 22,825 | ||
Total liabilities | 3,940,613 | 4,509,168 | ||
Commitments and contingencies (Note 12) | ||||
Preferred stock, $0.001 par value, 50,000 shares authorized | ||||
Common stock, $0.001 par value, 800,000 shares authorized; 491,262 issued and 490,224 outstanding at September 30, 2014 and 491,609 issued and 490,290 outstanding at December 31, 2013 | 483 | 483 | ||
Additional paid-in capital | 5,292,874 | 5,298,301 | ||
Additional paid-in capital—stockholder receivable | -3,750 | -3,750 | ||
Treasury stock, at cost | -6,823 | -8,770 | ||
Accumulated deficit | -3,511,498 | -3,460,462 | ||
Total SandRidge Energy, Inc. stockholders’ equity | 1,771,294 | 1,825,810 | ||
Noncontrolling interest | 1,266,482 | 1,349,817 | ||
Total equity | 3,037,776 | 3,175,627 | ||
Total liabilities and equity | 6,978,389 | 7,684,795 | ||
8.5% Convertible perpetual preferred stock; 2,650 shares issued and outstanding at September 30, 2014 and December 31, 2013; 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, 2014 and December 31, 2013; 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, 2014 and December 31, 2013; 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 $33.9 million and $23.4 million at September 30, 2014 and December 31, 2013, respectively. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, issued (in shares) | 491,262,000 | 491,609,000 |
Common stock, outstanding (in shares) | 490,224,000 | 490,290,000 |
8.5% Convertible perpetual preferred stock; 2,650 shares issued and outstanding at September 30, 2014 and December 31, 2013; aggregate liquidation preference of $265,000 | ||
Preferred stock, shares issued (in shares) | 2,650,000 | 2,650,000 |
Preferred stock, shares outstanding (in shares) | 2,650,000 | 2,650,000 |
Preferred stock, aggregate liquidation preference | $265,000 | $265,000 |
6.0% Convertible perpetual preferred stock; 2,000 shares issued and outstanding at September 30, 2014 and December 31, 2013; aggregate liquidation preference of $200,000 | ||
Preferred stock, shares issued (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, aggregate liquidation preference | 200,000 | 200,000 |
7.0% Convertible perpetual preferred stock; 3,000 shares issued and outstanding at September 30, 2014 and December 31, 2013; aggregate liquidation preference of $300,000 | ||
Preferred stock, shares issued (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares outstanding (in shares) | 3,000,000 | 3,000,000 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Revenues | ||||||
Oil, natural gas and NGL | $359,613 | $459,211 | $1,104,835 | $1,391,510 | ||
Drilling and services | 21,348 | 16,149 | 57,280 | 49,597 | ||
Midstream and marketing | 11,922 | 14,624 | 44,706 | 42,854 | ||
Construction contract | 0 | 0 | 0 | 23,253 | ||
Other | 1,224 | 3,619 | 5,056 | 11,066 | ||
Total revenues | 394,107 | 493,603 | 1,211,877 | 1,518,280 | ||
Expenses | ||||||
Production | 82,664 | 124,571 | 256,473 | 389,911 | ||
Production taxes | 8,380 | 8,816 | 24,027 | 24,819 | ||
Cost of sales | 15,992 | 13,773 | 38,942 | 45,438 | ||
Midstream and marketing | 11,405 | 13,224 | 40,659 | 39,954 | ||
Construction contract | 0 | 0 | 0 | 23,253 | ||
Depreciation and depletion—oil and natural gas | 112,569 | 137,639 | 325,021 | 434,068 | ||
Depreciation and amortization—other | 14,417 | 15,270 | 45,350 | 46,628 | ||
Accretion of asset retirement obligations | 1,116 | 8,472 | 7,927 | 28,051 | ||
Impairment | 54 | 687 | 167,966 | 16,330 | ||
General and administrative | 24,584 | 37,714 | 86,115 | 172,301 | ||
Employee termination benefits | 5 | 2,256 | 8,927 | 120,374 | ||
(Gain) loss on derivative contracts | -132,575 | 132,808 | -4,792 | 70,051 | ||
(Gain) loss on sale of assets | -995 | 539 | -978 | 398,364 | ||
Total expenses | 137,616 | 495,769 | [1] | 995,637 | 1,809,542 | [1] |
Income (loss) from operations | 256,491 | -2,166 | [1] | 216,240 | -291,262 | [1] |
Other income (expense) | ||||||
Interest expense | -59,783 | -61,385 | -183,689 | -208,454 | ||
Loss on extinguishment of debt | 0 | 0 | 0 | -82,005 | ||
Other (expense) income, net | -273 | 658 | 3,159 | 1,163 | ||
Total other expense | -60,056 | -60,727 | -180,530 | -289,296 | ||
Income (loss) before income taxes | 196,435 | -62,893 | [1] | 35,710 | -580,558 | [1] |
Income tax (benefit) expense | -1,064 | 2,363 | -2,131 | 7,300 | ||
Net income (loss) | 197,499 | -65,256 | [1] | 37,841 | -587,858 | [1] |
Less: net income attributable to noncontrolling interest | 40,161 | 16,191 | 49,733 | 9,393 | ||
Net income (loss) attributable to SandRidge Energy, Inc. | 157,338 | -81,447 | [1] | -11,892 | -597,251 | [1] |
Preferred stock dividends | 11,381 | 13,881 | 39,144 | 41,644 | ||
Income available (loss applicable) to SandRidge Energy, Inc. common stockholders | $145,957 | ($95,328) | ($51,036) | ($638,895) | ||
Income (loss) per share | ||||||
Basic (in dollars per share) | $0.30 | ($0.20) | ($0.11) | ($1.33) | ||
Diluted (in dollars per share) | $0.27 | ($0.20) | ($0.11) | ($1.33) | ||
Weighted average number of common shares outstanding | ||||||
Basic (in shares) | 485,458 | 483,582 | 485,194 | 480,209 | ||
Diluted (in shares) | 575,911 | 483,582 | 485,194 | 480,209 | ||
[1] | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. |
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, except Share data, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2013 | $3,175,627 | $8 | $483 | $5,294,551 | ($8,770) | ($3,460,462) | $1,349,817 |
Beginning Balance (in shares) at Dec. 31, 2013 | 7,650,000 | ||||||
Beginning Balance (in shares) at Dec. 31, 2013 | 490,290,000 | 490,290,000 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Acquisition of ownership interest | -2,730 | -2,074 | -656 | ||||
Sale of royalty trust units | 22,119 | 4,091 | 18,028 | ||||
Distributions to noncontrolling interest owners | -150,440 | -150,440 | |||||
Purchase of treasury stock | -6,281 | -6,281 | |||||
Retirement of treasury stock | 0 | -6,281 | 6,281 | ||||
Stock distributions, net of purchases - retirement plans (in shares) | -281,000 | ||||||
Stock distributions, net of purchases - retirement plans | -305 | -2,252 | 1,947 | ||||
Stock-based compensation | 18,617 | 18,617 | |||||
Stock-based compensation excess tax benefit | 14 | 14 | |||||
Issuance of restricted stock awards, net of cancellations (in shares) | 3,153,000 | ||||||
Issuance of restricted stock awards, net of cancellations | 0 | 3 | -3 | ||||
Repurchase of common stock (in shares) | -3,500,000 | ||||||
Repurchase of common stock | -17,542 | -3 | -17,539 | ||||
Net (loss) income | 37,841 | -11,892 | 49,733 | ||||
Convertible perpetual preferred stock dividends | -39,144 | -39,144 | |||||
Ending Balance at Sep. 30, 2014 | $3,037,776 | $8 | $483 | $5,289,124 | ($6,823) | ($3,511,498) | $1,266,482 |
Ending Balance (in shares) at Sep. 30, 2014 | 490,224,000 | 490,224,000 | |||||
Ending Balance (in shares) at Sep. 30, 2014 | 7,650,000 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $37,841 | ($587,858) | [1] |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Depreciation, depletion and amortization | 370,371 | 480,696 | |
Accretion of asset retirement obligations | 7,927 | 28,051 | |
Impairment | 167,966 | 16,330 | |
Debt issuance costs amortization | 7,045 | 7,730 | |
Amortization of discount, net of premium, on long-term debt | 394 | 913 | |
Loss on extinguishment of debt | 0 | 82,005 | |
Deferred income tax provision | 0 | 4,702 | |
(Gain) loss on derivative contracts | -4,792 | 70,051 | |
Cash paid on settlement of derivative contracts | -48,816 | -17,943 | |
(Gain) loss on sale of assets | -978 | 398,364 | |
Stock-based compensation | 15,853 | 79,317 | |
Other | 488 | 1,499 | |
Changes in operating assets and liabilities | -157,615 | 31,150 | |
Net cash provided by operating activities | 395,684 | 595,007 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures for property, plant and equipment | -1,071,465 | -1,163,539 | |
Acquisition of assets | -16,920 | -15,527 | |
Proceeds from sale of assets | 714,294 | 2,567,355 | |
Net cash (used in) provided by investing activities | -374,091 | 1,388,289 | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayments of borrowings | 0 | -1,115,500 | |
Premium on debt redemption | 0 | -61,997 | |
Debt issuance costs | 0 | -91 | |
Proceeds from sale of royalty trust units | 22,119 | 28,985 | |
Noncontrolling interest distributions | -150,440 | -153,002 | |
Acquisition of ownership interest | -2,730 | 0 | |
Stock-based compensation excess tax benefit | 14 | -4 | |
Purchase of treasury stock | -8,278 | -31,270 | |
Repurchase of common stock | -17,542 | 0 | |
Dividends paid — preferred | -45,025 | -45,025 | |
Cash (paid) received on settlement of financing derivative contracts | -44,128 | 5,099 | |
Net cash used in financing activities | -246,010 | -1,372,805 | |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -224,417 | 610,491 | |
CASH AND CASH EQUIVALENTS, beginning of year | 814,663 | 309,766 | |
CASH AND CASH EQUIVALENTS, end of period | 590,246 | 920,257 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for interest, net of amounts capitalized | -209,939 | -248,233 | |
Cash paid for income taxes | -543 | -2,911 | |
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Deposit on pending sale | 0 | -255,000 | |
Change in accrued capital expenditures | -49,072 | 65,087 | |
Asset retirement costs capitalized | $3,398 | $4,145 | |
[1] | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Nature of Business. SandRidge Energy, Inc. is an oil and natural gas company with a principal focus on exploration and production activities in the Mid-Continent region of the United States. The Company owns and operates additional interests in west Texas. The Company also operates businesses and infrastructure systems that are complementary to its primary exploration and production activities, including gas gathering and processing facilities, marketing operations, a saltwater gathering system, an electrical transmission system and a drilling and related oil field services 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. Noncontrolling interest represents third-party ownership interests in the Company’s subsidiaries and consolidated VIEs and is included as a component of equity in the consolidated balance sheets and consolidated statement of changes in equity. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Variable Interest Entities. An entity is referred to as a VIE if it possesses one of the following criteria: (i) it is thinly capitalized, (ii) the residual equity holders do not control the entity, (iii) the equity holders are shielded from the economic losses, (iv) the equity holders do not participate fully in the entity’s residual economics, or (v) the entity was established with non-substantive voting interests. The Company consolidates a VIE when it has determined it is the primary beneficiary, which requires significant judgment. 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. In addition to the VIEs that the Company consolidates, the Company also holds a variable interest in another VIE that is not consolidated as it was determined that the Company is not the primary beneficiary. The Company monitors both consolidated and unconsolidated VIEs to determine if any events have occurred that could cause the primary beneficiary to change. See Note 4 for discussion of the Company’s significant associated VIEs. | |
Interim Financial Statements. The accompanying unaudited condensed consolidated financial statements as of December 31, 2013 have been derived from the audited financial statements contained in the Company’s amended Annual Report on Form 10-K/A (“2013 Form 10-K/A”) filed on January 8, 2015. The unaudited 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 2013 Form 10-K/A. 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 of normal recurring adjustments, unless otherwise disclosed herein, are necessary to state fairly the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the 2013 Form 10-K/A. | |
Significant Accounting Policies. For a description of the Company’s significant accounting policies, see Note 1 of the consolidated financial statements included in the 2013 Form 10-K/A. | |
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. | |
Restatement and Revision of Prior Period Financial Statements. See Note 2 “Restatement of Previously Issued Financial Statements” for a discussion of changes made during the third quarter of 2014 to the accompanying prior period unaudited condensed consolidated financial statements. | |
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, natural gas and natural gas liquids (“NGL”) reserves; cash flow estimates used in the valuation of guarantees; 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 used to allocate the full cost pool net book value to divested properties, as necessary; 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. | |
Recent Accounting Pronouncements Not Yet Adopted. In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain of the provisions also amend or supersede existing guidance applicable to the recognition of a gain or loss on transfers of nonfinancial assets that are not an output of an entity’s ordinary activities, including sales of property, plant and equipment and real estate. The requirements of ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period with an option of using either a full retrospective or a modified approach for adoption. The Company is currently evaluating the effect, if any, that the updated standard will have on its consolidated financial statements and related disclosures. |
Restatement_of_Previously_Issu
Restatement of Previously Issued Financial Statements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||
Restatement of Previously Issued Financial Statements | Restatement of Previously Issued Financial Statements | ||||||||||||||||
Overview | |||||||||||||||||
The Company has determined there were errors in the timing of its accrual of annual CO2 delivery shortfall penalties incurred under its 30-year treating agreement with Occidental Petroleum Corporation (“Occidental”) and has determined that these errors were material to previously issued unaudited condensed consolidated financial statements for the three and nine-month periods ended September 30, 2013. For the three and nine-month periods ended September 30, 2013, the correction of these errors resulted in the accrual of $8.3 million and $24.3 million in CO2 under delivery shortfall penalties, for the three and nine-month periods ended September 30, 2013, respectively, which were previously included in the total 2013 annual delivery shortfall penalty of $32.7 million recorded in the fourth quarter of 2013. As a result, these statements have been presented on a restated and amended basis herein. The correction of these errors in the financial statements for the three and nine-month periods ended September 30, 2013 did not have any impact on the statement of operations or statement of cash flows for the year ended December 31, 2013 or to the balance sheet as of December 31, 2013. | |||||||||||||||||
Additionally, the Company has made certain revisions to its condensed consolidated balance sheets as of December 31, 2013 in order to account for activities associated with construction of the Century Plant in Pecos County, Texas (the “Century Plant”) under the full cost method of accounting. The Company has determined that these revisions are not material to the originally issued financial statements; however, in conjunction with the Company’s need to restate its financial statements as a result of the error noted above, the Company has determined that it would be appropriate to make such revisions. The condensed consolidated balance sheet as of December 31, 2013 presented herein is consistent with the revised consolidated balance sheet included in the Company’s 2013 Form 10-K/A. | |||||||||||||||||
Financial Statement Presentation | |||||||||||||||||
In addition to the restatement of the Company’s unaudited condensed consolidated financial statements, certain information within the following notes to the unaudited condensed consolidated financial statements has been restated and/or revised to reflect the corrections presented in the tables below or to add disclosure language, as appropriate. | |||||||||||||||||
• | Note 6. Property, Plant and Equipment | ||||||||||||||||
• | Note 12. Commitment and Contingencies | ||||||||||||||||
• | Note 15. Earnings (Loss) Per Share | ||||||||||||||||
• | Note 18. Business Segment Information | ||||||||||||||||
• | Note 19. Condensed Consolidating Financial Information | ||||||||||||||||
Condensed Consolidated Statements of Operations. The following table presents the impact of the error corrections on the Company’s previously reported unaudited condensed consolidated statements of operations for the three and nine-month periods ended September 30, 2013 (in thousands): | |||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||||
As Reported | As Restated | As Reported | As Restated | ||||||||||||||
Production | $ | 116,317 | $ | 124,571 | $ | 365,629 | $ | 389,911 | |||||||||
Total expenses | $ | 487,515 | $ | 495,769 | $ | 1,785,260 | $ | 1,809,542 | |||||||||
Income (loss) from operations | $ | 6,088 | $ | (2,166 | ) | $ | (266,980 | ) | $ | (291,262 | ) | ||||||
(Loss) before income taxes | $ | (54,639 | ) | $ | (62,893 | ) | $ | (556,276 | ) | $ | (580,558 | ) | |||||
Net (loss) | $ | (57,002 | ) | $ | (65,256 | ) | $ | (563,576 | ) | $ | (587,858 | ) | |||||
Net loss attributable to SandRidge Energy, Inc. | $ | (73,193 | ) | $ | (81,447 | ) | $ | (572,969 | ) | $ | (597,251 | ) | |||||
Loss applicable to SandRidge Energy, Inc. common stockholders | $ | (87,074 | ) | $ | (95,328 | ) | $ | (614,613 | ) | $ | (638,895 | ) | |||||
Loss per share | |||||||||||||||||
Basic | $ | (0.18 | ) | $ | (0.20 | ) | $ | (1.28 | ) | $ | (1.33 | ) | |||||
Diluted | $ | (0.18 | ) | $ | (0.20 | ) | $ | (1.28 | ) | $ | (1.33 | ) | |||||
Condensed Consolidated Statement of Cash Flows. The following table presents the impact of the error corrections on the Company’s previously reported unaudited condensed consolidated statement of cash flows for the nine-month period ended September 30, 2013 (in thousands): | |||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||
As Reported | As Restated | ||||||||||||||||
Net loss | $ | (563,576 | ) | $ | (587,858 | ) | |||||||||||
Changes in operating assets and liabilities | $ | 6,868 | $ | 31,150 | |||||||||||||
Condensed Consolidated Balance Sheet. The Company has determined that unreimbursed costs incurred by the Company on behalf of Occidental during construction of the Century Plant that were previously presented as costs in excess of billings and contract loss should have been presented under the full cost method of accounting as an account receivable. Accordingly, the Company has revised the condensed consolidated balance sheet as of December 31, 2013 to reflect this presentation. This revision did not have any impact to total current assets as of December 31, 2013. | |||||||||||||||||
The following table presents the impact of these adjustments on the Company’s previously reported condensed consolidated balance sheet as of December 31, 2013 (in thousands): | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
As Reported | As Revised | ||||||||||||||||
Current assets | |||||||||||||||||
Costs in excess of billings and contract loss | $ | 4,079 | $ | — | |||||||||||||
Other current assets | $ | 21,831 | $ | 25,910 | |||||||||||||
Divestitures
Divestitures | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Divestitures | Divestitures | |||||||||||
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 SandRidge Permian Trust’s (the “Permian Trust”) area of mutual interest, (the “Permian Properties”) for $2.6 billion. 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 $398.9 million loss on the sale for the nine-month period ended September 30, 2013. The loss is included in (gain) loss on sale of assets in the accompanying unaudited condensed consolidated statement 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. A portion of the loss, totaling $71.7 million, was allocated to noncontrolling interests and is reflected in net income attributable to noncontrolling interest in the accompanying unaudited condensed consolidated statement of operations for the nine-month period ended September 30, 2013. | ||||||||||||
The following table presents revenues and direct operating expenses of the Permian Properties included in the accompanying unaudited condensed consolidated statement of operations for the nine-month period ended September 30, 2013 (in thousands): | ||||||||||||
Nine Months Ended September 30, 2013(1) | ||||||||||||
Revenues | $ | 68,027 | ||||||||||
Direct operating expenses | $ | 17,453 | ||||||||||
__________________ | ||||||||||||
-1 | Includes revenues and direct operating expenses through February 26, 2013, the date of sale. | |||||||||||
Sale of Gulf of Mexico and Gulf Coast Properties | ||||||||||||
On February 25, 2014, the Company sold subsidiaries that owned the Company’s Gulf of Mexico and Gulf Coast oil and natural gas properties (the “Gulf Properties”) for approximately $702.6 million, net of working capital adjustments and post-closing adjustments, and the buyer’s assumption of approximately $366.0 million of related asset retirement obligations to Fieldwood Energy LLC (“Fieldwood”). This transaction did not result in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company recorded the proceeds as a reduction of its full cost pool with no gain or loss on the sale. See Note 16 for discussion of Fieldwood’s related party affiliation with the Company. | ||||||||||||
In accordance with the terms of the sale, the Company agreed to guarantee on behalf of Fieldwood certain plugging and abandonment obligations associated with the Gulf Properties for a period of up to one year from the date of closing. The Company recorded a liability equal to the fair value of these guarantees, or $9.4 million, at the time the transaction closed. As of September 30, 2014, the fair value of the guarantees was approximately $10.4 million. See Note 5 for additional discussion of the determination of the guarantees’ fair value. The guarantees do not include a limit on the potential future payments for which the Company could be obligated; however, Fieldwood has agreed to indemnify the Company for any costs it may incur as a result of the guarantees and to use its best efforts to pay any amounts sought from the Company by the Bureau of Ocean Energy Management that may arise prior to the expiration of the guarantees. Additionally, Fieldwood will maintain, for a period of up to one year from the closing date, restricted deposits totaling approximately $28.0 million held in escrow for plugging and abandonment obligations associated with the Gulf Properties. Upon expiration of the guarantees, the Company will receive payment from Fieldwood for half of such restricted deposits, or approximately $14.0 million. A receivable for this amount is included in other current assets in the accompanying unaudited condensed consolidated balance sheet at September 30, 2014. | ||||||||||||
The following table presents revenues and expenses, including direct operating expenses, depletion, accretion of asset retirement obligations and general and administrative expenses, for the Gulf Properties included in the accompanying unaudited condensed consolidated statements of operations for the three-month period ended September 30, 2013 and the nine-month periods ended September 30, 2014 and 2013 (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2014(1) | 2013 | ||||||||||
Revenues | $ | 153,315 | $ | 90,920 | $ | 498,590 | ||||||
Expenses | $ | 126,137 | $ | 63,674 | $ | 377,529 | ||||||
____________________ | ||||||||||||
-1 | Includes revenues and expenses through February 25, 2014, the date of the sale. |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Variable Interest Entities | Variable Interest Entities | ||||||||||||||||
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. | |||||||||||||||||
Royalty Trusts. SandRidge owns beneficial interests in three Delaware statutory trusts. SandRidge Mississippian Trust I (the “Mississippian Trust I”), the Permian Trust and SandRidge Mississippian Trust II (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 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 as of September 30, 2014: | |||||||||||||||||
Mississippian Trust I | Permian Trust | Mississippian Trust II | |||||||||||||||
Total outstanding common units(1) | 28,000,000 | 39,375,000 | 37,293,750 | ||||||||||||||
Total outstanding subordinated units(1) | — | 13,125,000 | 12,431,250 | ||||||||||||||
Liquidation date(2) | 12/31/30 | 3/31/31 | 12/31/31 | ||||||||||||||
____________________ | |||||||||||||||||
-1 | The Mississippian Trust I’s previously outstanding subordinated units, all of which were held by SandRidge, converted to common units on July 1, 2014. | ||||||||||||||||
-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 made with respect to the subordinated units is 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, 2014 and 2013 as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014(1) | 2013(1) | 2014(2) | 2013(2) | ||||||||||||||
Total distributions | $ | 56,191 | $ | 81,594 | $ | 184,176 | $ | 226,404 | |||||||||
Distributions to third-party unitholders | $ | 47,298 | $ | 54,287 | $ | 150,440 | $ | 153,002 | |||||||||
____________________ | |||||||||||||||||
-1 | Subordination thresholds were not met for the Mississippian Trust I’s distributions for the three-month periods ended September 30, 2014 and 2013 and for the Mississippian Trust II’s distributions for the three-month period ended September 30, 2014, resulting in reduced distributions to the Company on its subordinated units for these periods. | ||||||||||||||||
-2 | Subordination thresholds were not met for the Mississippian Trust I’s distributions for the nine-month period ended September 30, 2014 and for the Permian Trust’s distribution for the nine-month period ended September 30, 2013, resulting in reduced distributions to the Company on its subordinated units for these periods. | ||||||||||||||||
See Note 20 for discussion of the Royalty Trusts’ distributions announced in October 2014. | |||||||||||||||||
Pursuant to the trust agreements governing the Royalty Trusts, SandRidge has committed to loan funds to each 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, 2014 or December 31, 2013. | |||||||||||||||||
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. Following the end of the fourth full calendar quarter subsequent to the Company’s satisfaction of its 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. On July 1, 2014, the Mississippian Trust I’s subordinated units, all of which were held by SandRidge, converted to common units. The newly-converted units remained subject to the distribution subordination thresholds through the Mississippian Trust I’s August 29, 2014 distribution. Beginning with the distribution made in November 2014, all of the Mississippian Trust I’s common units will share equally in its distribution. The Company continues to consolidate the activities of the Mississippian Trust I as its primary beneficiary subsequent to this conversion due to the Company’s original participation in the design of the Mississippian Trust I and continued (a) power to direct the activities that most significantly impact the economic performance of the Royalty Trust and (b) obligation to absorb losses and right to receive residual returns through its variable interests in the Royalty Trust, including ownership of common units, that could potentially be significant to the Mississippian Trust I. | |||||||||||||||||
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. As of September 30, 2014, the total maximum amount recoverable by the Permian Trust and the Mississippian Trust II under the remaining liens was approximately $31.6 million. The Company fulfilled its drilling obligation to the Mississippian Trust I in the second quarter of 2013 and the related lien was released. | |||||||||||||||||
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 each of these Royalty Trusts. The Company novated 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, 2014 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 Royalty Trust Derivatives Agreements | |||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||
Fixed Price | |||||||||||||||||
October 2014 - December 2014 | 415 | $ | 101.01 | ||||||||||||||
January 2015 - December 2015 | 904 | $ | 97.78 | ||||||||||||||
Natural Gas Collars Underlying the Royalty Trust Derivatives Agreements | |||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||
October 2014 - December 2014 | 236 | $ | 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 2014 - December 2014 | 233 | $ | 100.75 | ||||||||||||||
January 2015 - March 2015 | 141 | $ | 100.9 | ||||||||||||||
See Note 10 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 consolidates the activities of the Royalty Trusts into its results of operations. Amounts attributable to the common units of the Royalty Trusts owned by third parties are reflected as noncontrolling interest in the consolidated financial statements. | |||||||||||||||||
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 both September 30, 2014 and December 31, 2013, $1.3 billion of noncontrolling interest in the accompanying unaudited condensed consolidated balance sheets was 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, 2014 and December 31, 2013 consisted of the following (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cash and cash equivalents(1) | $ | 7,584 | $ | 7,912 | |||||||||||||
Accounts receivable, net | 17,698 | 22,540 | |||||||||||||||
Derivative contracts | 5,991 | 4,983 | |||||||||||||||
Total current assets | 31,273 | 35,435 | |||||||||||||||
Investment in royalty interests(2) | 1,325,942 | 1,325,942 | |||||||||||||||
Less: accumulated depletion and impairment(3) | (272,346 | ) | (186,095 | ) | |||||||||||||
1,053,596 | 1,139,847 | ||||||||||||||||
Derivative contracts | — | 1,476 | |||||||||||||||
Total assets | $ | 1,084,869 | $ | 1,176,758 | |||||||||||||
Accounts payable and accrued expenses | $ | 3,049 | $ | 3,393 | |||||||||||||
Total liabilities | $ | 3,049 | $ | 3,393 | |||||||||||||
____________________ | |||||||||||||||||
-1 | Includes $3.0 million held by the trustee at September 30, 2014 and December 31, 2013 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. | ||||||||||||||||
-3 | Accumulated depletion and impairment at September 30, 2014 includes full cost ceiling limitation impairment allocated to the Royalty Trusts of $42.3 million. There was no full cost ceiling limitation impairment allocated to the Royalty Trusts as of December 31, 2013. | ||||||||||||||||
During the nine-month period ended September 30, 2014, the Company sold Permian Trust common units it owned in a transaction exempt from registration pursuant to Rule 144 under the Securities Act for proceeds of approximately $22.1 million. The sale was accounted for as an equity transaction with no gain or loss recognized. The Company continues to be the primary beneficiary of the Permian Trust after consideration of this transaction and continues to consolidate the activities of the Permian Trust as well as the activities of the Mississippian Trust I and Mississippian Trust II. The Company’s beneficial interests in the Royalty Trusts at September 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Mississippian Trust I | 26.9 | % | 26.9 | % | |||||||||||||
Permian Trust | 25 | % | 28.5 | % | |||||||||||||
Mississippian Trust II | 37.6 | % | 37.6 | % | |||||||||||||
See Note 12 for discussion of the Company’s legal proceedings to which the Mississippian Trust I and Mississippian Trust II are also parties. | |||||||||||||||||
Grey Ranch Plant, L.P. Primarily engaged in treating and transportation of natural gas, Grey Ranch Plant, L.P. (“GRLP”) was a limited partnership that operated the Company’s Grey Ranch plant (the “Plant”) located in Pecos County, Texas. As of December 31, 2013, the Company owned a 50% interest in GRLP, which represented a variable interest. Income or loss of GRLP was allocated to the partners based on ownership percentage and any operating or cash shortfalls required contributions from the partners. GRLP was considered a VIE because certain equity holders lacked the ability to participate in decisions impacting GRLP. Agreements related to the ownership and operation of GRLP provided 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 were reduced if throughput volumes were below those expected. The Company determined that it was the primary beneficiary of GRLP as it had both (i) the power, as operator of the Plant, to direct the activities of GRLP that most significantly impact its economic performance 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, consolidated the activity of GRLP in its consolidated financial statements. The 50% ownership interest not held by the Company as of December 31, 2013 is presented as noncontrolling interest in the accompanying unaudited condensed consolidated financial statements. In the first quarter of 2014, one of the Company’s wholly owned subsidiaries acquired from a third party the remaining 50% ownership interest of GRLP. Because the Company was the primary beneficiary and consolidated GRLP, the acquisition of additional ownership interest was recorded as an equity transaction with no gain or loss recognized. Additionally, as a wholly owned subsidiary of the Company, GRLP is no longer considered a VIE for reporting purposes. | |||||||||||||||||
Prior to the Company’s acquisition of the remaining ownership of GRLP in the first quarter of 2014, GRLP’s assets could only be used to settle its own obligations and not other obligations of the Company and GRLP’s creditors had no recourse to the general credit of the Company. At December 31, 2013, $0.7 million of noncontrolling interest in the accompanying unaudited condensed consolidated balance sheet was related to GRLP. GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheet at December 31, 2013 consisted of the following (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
Cash and cash equivalents | $ | 132 | |||||||||||||||
Accounts receivable, net | 16 | ||||||||||||||||
Prepaid expenses | 32 | ||||||||||||||||
Other current assets | 109 | ||||||||||||||||
Total current assets | 289 | ||||||||||||||||
Other property, plant and equipment, net | 1,163 | ||||||||||||||||
Total assets | $ | 1,452 | |||||||||||||||
Accounts payable and accrued expenses | $ | 129 | |||||||||||||||
Total liabilities | $ | 129 | |||||||||||||||
Grey Ranch Plant Genpar, LLC. As of December 31, 2013, the Company owned a 50% interest in Grey Ranch Plant Genpar, LLC (“Genpar”), the managing partner and 1% owner of GRLP. The Company served as Genpar’s administrative manager. Genpar’s ownership interest in GRLP was its only asset. As managing partner of GRLP, Genpar had the sole right to manage, control and conduct the business of GRLP. However, Genpar was 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 limited Genpar’s ability to make decisions on behalf of GRLP. Therefore, Genpar was considered a VIE. Although both the Company and Genpar’s other equity owner shared equally in Genpar’s economic losses and benefits and also had 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 impacted 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 have been significant to Genpar. As the primary beneficiary, the Company consolidated Genpar’s activity. However, its sole asset, the investment in GRLP, was eliminated in consolidation. Genpar had no liabilities. In the first quarter of 2014, one of the Company’s wholly owned subsidiaries acquired from a third party the remaining 50% ownership interest of Genpar. Because the Company was the primary beneficiary and consolidated Genpar, the acquisition of additional ownership interest was recorded as an equity transaction with no gain or loss recognized. Additionally, as a wholly owned subsidiary of the Company, Genpar is no longer considered a VIE for reporting purposes. | |||||||||||||||||
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. Because 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 and does not consolidate the results of PGC’s activities into its financial statements. | |||||||||||||||||
Amounts due from and due to PGC as of September 30, 2014 and December 31, 2013 included in the accompanying unaudited condensed consolidated balance sheets are as follows (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Accounts receivable due from PGC | $ | 1,089 | $ | 741 | |||||||||||||
Accounts payable due to PGC | $ | 4,006 | $ | 3,634 | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
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 as Level 1, Level 2 and Level 3 as of September 30, 2014 or December 31, 2013, 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 sheet at December 31, 2013. There were no restricted deposits outstanding at September 30, 2014. | ||||||||||||||||||||
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 and collars are based upon inputs that are either readily available in the public market, such as oil and natural gas futures prices, volatility factors 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 | ||||||||||||||||||||
Guarantees. As discussed in Note 3, the Company has guaranteed on Fieldwood’s behalf certain plugging and abandonment obligations associated with the Gulf Properties. The fair value of these guarantees is based on the present value of estimated future payments for plugging and abandonment obligations associated with the Gulf Properties, adjusted for the cumulative probability of Fieldwood’s default prior to expiration of the guarantee by February 25, 2015 (3.71% at September 30, 2014). The discount and probability of default rates are based upon inputs that are readily available in the public market, such as historical option adjusted spreads of the Company’s senior notes, which are publicly traded, and historical default rates of publicly traded companies with credit ratings similar to Fieldwood. The significant unobservable input used in the fair value measurement of the guarantees is the estimate of future payments for plugging and abandonment, which was developed based upon third-party quotes and current actual costs. Significant increases (decreases) in the estimate of these payments could result in a significantly higher (lower) fair value measurement. The significant unobservable input used in the fair value measurement of the Company’s financial guarantee liability at September 30, 2014 is included in the table below (in thousands). | ||||||||||||||||||||
Unobservable Input | ||||||||||||||||||||
Estimated future payments for plugging and abandonment | $ | 426,661 | ||||||||||||||||||
Derivative contracts. The fair value of the Company’s oil basis swaps outstanding during the nine-month period ended September 30, 2013 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 have resulted in a significantly higher (lower) fair value measurement. All of the oil basis swaps outstanding during 2013 contractually matured during the nine-month period ended September 30, 2013. | ||||||||||||||||||||
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, 2014 | ||||||||||||||||||||
Fair Value Measurements | Netting(1) | Assets/Liabilities at Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Commodity derivative contracts | $ | — | $ | 69,810 | $ | — | $ | — | $ | 69,810 | ||||||||||
Investments | 10,389 | — | — | — | 10,389 | |||||||||||||||
$ | 10,389 | $ | 69,810 | $ | — | $ | — | $ | 80,199 | |||||||||||
Liabilities | ||||||||||||||||||||
Guarantees | $ | — | $ | — | $ | 10,430 | $ | — | $ | 10,430 | ||||||||||
Commodity derivative contracts | — | — | — | — | — | |||||||||||||||
$ | — | $ | — | $ | 10,430 | $ | — | $ | 10,430 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Fair Value Measurements | Netting(1) | Assets/Liabilities at Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Restricted deposits | $ | 27,955 | $ | — | $ | — | $ | — | $ | 27,955 | ||||||||||
Commodity derivative contracts | — | 50,274 | — | (23,369 | ) | 26,905 | ||||||||||||||
Investments | 13,708 | — | — | — | 13,708 | |||||||||||||||
$ | 41,663 | $ | 50,274 | $ | — | $ | (23,369 | ) | $ | 68,568 | ||||||||||
Liabilities | ||||||||||||||||||||
Commodity derivative contracts | $ | — | $ | 78,200 | $ | — | $ | (23,369 | ) | $ | 54,831 | |||||||||
$ | — | $ | 78,200 | $ | — | $ | (23,369 | ) | $ | 54,831 | ||||||||||
____________________ | ||||||||||||||||||||
(1)Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists. | ||||||||||||||||||||
The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for guarantees during the three and nine-month periods ended September 30, 2014 (in thousands): | ||||||||||||||||||||
Level 3 Fair Value Measurements - Guarantees | Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | ||||||||||||||||||
Beginning balance | $ | 12,028 | $ | — | ||||||||||||||||
Issuances(1) | — | 9,446 | ||||||||||||||||||
(Gain) loss on guarantees | (1,598 | ) | 984 | |||||||||||||||||
Ending balance | $ | 10,430 | $ | 10,430 | ||||||||||||||||
____________________ | ||||||||||||||||||||
-1 | Represents the fair value of the guarantees of certain plugging and abandonment obligations on behalf of Fieldwood as of February 25, 2014, the closing date for the sale of the Gulf Properties. | |||||||||||||||||||
The fair value of the guarantees is determined quarterly with changes in fair value recorded as an adjustment to the full cost pool. See Note 3 for discussion of the sale of the Gulf Properties. The fair value of the guarantees as of September 30, 2014 is included in other current liabilities in the accompanying unaudited condensed consolidated balance sheet. | ||||||||||||||||||||
The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for commodity derivative contracts during the nine-month period ended September 30, 2013 (in thousands): | ||||||||||||||||||||
Level 3 Fair Value Measurements - Commodity Derivative Contracts | Nine Months Ended September 30, 2013 | |||||||||||||||||||
Beginning balance | $ | (512 | ) | |||||||||||||||||
Loss on derivative contracts | (133 | ) | ||||||||||||||||||
Settlements paid | 645 | |||||||||||||||||||
Ending balance | $ | — | ||||||||||||||||||
There were no outstanding Level 3 commodity derivative contracts at September 30, 2014 or 2013. | ||||||||||||||||||||
See Note 10 for further discussion of the Company’s derivative contracts. | ||||||||||||||||||||
The Company recognizes transfers between fair value hierarchy levels as of the end of the reporting period in which the event or change in circumstances causing the transfer occurred. During the three and nine-month periods ended September 30, 2014 and 2013, the Company did not have any transfers between Level 1, Level 2 or Level 3 fair value measurements. | ||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||
The Company measures the fair value of its senior notes using pricing for the 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, 2014 and December 31, 2013 were as follows (in thousands): | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||||||
8.75% Senior Notes due 2020(1) | $ | 454,500 | $ | 445,232 | $ | 486,000 | $ | 444,736 | ||||||||||||
7.5% Senior Notes due 2021(2) | 1,130,938 | 1,178,598 | 1,230,813 | 1,178,922 | ||||||||||||||||
8.125% Senior Notes due 2022 | 735,000 | 750,000 | 795,000 | 750,000 | ||||||||||||||||
7.5% Senior Notes due 2023(3) | 781,688 | 821,471 | 837,375 | 821,249 | ||||||||||||||||
____________________ | ||||||||||||||||||||
-1 | Carrying value is net of $4,768 and $5,264 discount at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
-2 | Carrying value includes a premium, applicable to notes issued in August 2012, of $3,598 and $3,922 at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
-3 | Carrying value is net of $3,529 and $3,751 discount at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
See Note 9 for discussion of the Company’s long-term debt. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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, | |||||||
2014 | 2013 | |||||||
Oil and natural gas properties | ||||||||
Proved(1) | $ | 11,252,074 | $ | 10,972,816 | ||||
Unproved | 300,224 | 531,606 | ||||||
Total oil and natural gas properties | 11,552,298 | 11,504,422 | ||||||
Less accumulated depreciation, depletion and impairment | (6,250,457 | ) | (5,762,969 | ) | ||||
Net oil and natural gas properties capitalized costs | 5,301,841 | 5,741,453 | ||||||
Land | 16,300 | 18,423 | ||||||
Non-oil and natural gas equipment(2) | 631,781 | 600,603 | ||||||
Buildings and structures(3) | 255,469 | 233,405 | ||||||
Total | 903,550 | 852,431 | ||||||
Less accumulated depreciation and amortization | (324,686 | ) | (286,209 | ) | ||||
Other property, plant and equipment, net | 578,864 | 566,222 | ||||||
Total property, plant and equipment, net | $ | 5,880,705 | $ | 6,307,675 | ||||
____________________ | ||||||||
-1 | Includes cumulative capitalized interest of approximately $33.9 million and $23.4 million at September 30, 2014 and December 31, 2013, respectively. | |||||||
-2 | Includes cumulative capitalized interest of approximately $4.3 million at both September 30, 2014 and December 31, 2013. | |||||||
-3 | Includes cumulative capitalized interest of approximately $15.8 million and $12.0 million at September 30, 2014 and December 31, 2013, respectively. | |||||||
Accumulated depreciation, depletion and impairment on oil and natural gas properties includes cumulative full cost ceiling limitation impairment of $3.7 billion and $3.5 billion at September 30, 2014 and December 31, 2013, respectively. During the nine-month period ended September 30, 2014, the Company reduced the net carrying value of its oil and natural gas properties by $164.8 million as a result of its first quarter full cost ceiling analysis. | ||||||||
Century Plant Construction Costs | ||||||||
Included in proved oil and natural gas properties is approximately $180.0 million of costs in excess of contracted and reimbursed amounts incurred by the Company during construction of the Century Plant in Pecos County, Texas pursuant to an agreement with Occidental. Due to the high-CO2 content of the Company’s reserves in the Piñon Field and the absence of adequate processing capacity in the Piñon Field area, construction of a large-scale processing facility, such as the Century Plant, was necessary for the development of the Company’s natural gas reserves in that area. The Company entered into the construction agreement and a related treating agreement with Occidental solely to facilitate the development of its reserves in the Piñon Field and greater West Texas Overthrust area and, accordingly, has recorded these unreimbursed costs as development costs within its full cost pool. See Note 12 for discussion of the related treating agreement. | ||||||||
Drilling Carry Commitments | ||||||||
The Company has agreements with two co-working interest parties, which contain carry commitments to fund a portion of its future drilling, completing and equipping costs within areas of mutual interest. The Company recorded approximately $205.6 million for Repsol E&P USA, Inc.’s (“Repsol”) carry during the nine-month period ended September 30, 2014, and a combined $334.2 million for both Atinum MidCon I, LLC’s (“Atinum”) and Repsol’s drilling carries during the nine-month periods ended September 30, 2013, which reduced the Company’s capital expenditures for the respective periods. Atinum fully funded its carry commitment in the third quarter of 2013, and the carry commitment from Repsol was fully utilized during the third quarter of 2014. | ||||||||
Under the agreement with Repsol, the carry commitment could have been reduced if a certain number of wells were not drilled within the area of mutual interest during a twelve-month period and the Company failed to drill such wells following a proposal by Repsol to drill the wells. During 2013, the Company temporarily reduced its rate of drilling activity. As a result, the Company drilled less than the targeted number of wells for such twelve-month period, which resulted in Repsol having a right to propose additional wells. In the second quarter of 2014, the Company and Repsol amended their agreement to eliminate Repsol’s right to propose such additional wells in exchange for a commitment by the Company to drill 484 net wells in the area of mutual interest between January 1, 2014 and May 31, 2015, subject to delays due to factors beyond the Company’s control. If the Company does not drill the committed number of wells within such time period, it will be required to carry Repsol’s drilling, completing and equipping costs for subsequent wells drilled in the area of mutual interest, up to a maximum of $75.0 million in carry costs. As of September 30, 2014, the Company has drilled 241 net wells under this arrangement and currently anticipates satisfying its drilling commitment within the required time period. The Company has no other drilling obligation to Repsol. |
Other_Assets
Other Assets | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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, | |||||||
2014 | 2013 | |||||||
Debt issuance costs, net of amortization | $ | 54,878 | $ | 61,923 | ||||
Investments | 10,389 | 13,708 | ||||||
Deferred tax asset | 7,985 | — | ||||||
Restricted deposits(1) | — | 27,955 | ||||||
Notes receivable on asset retirement obligations(1) | — | 11,640 | ||||||
Other | 3,816 | 5,945 | ||||||
Total other assets | $ | 77,068 | $ | 121,171 | ||||
____________________ | ||||||||
-1 | Assets at December 31, 2013 were included in the sale of the Gulf Properties in February 2014, as discussed in Note 3. |
Construction_Contract
Construction Contract | 9 Months Ended |
Sep. 30, 2014 | |
Contractors [Abstract] | |
Construction Contract | Construction Contract |
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. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Long-Term Debt | |||||||
Long-term debt consists of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Senior credit facility | $ | — | $ | — | ||||
Senior notes | ||||||||
8.75% Senior Notes due 2020, net of $4,768 and $5,264 discount, respectively | 445,232 | 444,736 | ||||||
7.5% Senior Notes due 2021, including premium of $3,598 and $3,922, respectively | 1,178,598 | 1,178,922 | ||||||
8.125% Senior Notes due 2022 | 750,000 | 750,000 | ||||||
7.5% Senior Notes due 2023, net of $3,529 and $3,751 discount, respectively | 821,471 | 821,249 | ||||||
Total debt | 3,195,301 | 3,194,907 | ||||||
Less: current maturities of long-term debt | — | — | ||||||
Long-term debt | $ | 3,195,301 | $ | 3,194,907 | ||||
Senior Credit Facility | ||||||||
The senior secured revolving credit facility (the “senior credit facility”), which was amended and restated on October 22, 2014, is available to be drawn on subject to limitations based on its terms and certain financial covenants, as described below. As of September 30, 2014, the senior credit facility contained financial covenants, including maintenance of agreed upon levels for the (i) ratio of total funded 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 funded 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 October 2019. | ||||||||
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, 2014, 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, natural gas and NGL reserves representing at least 80.0% of the discounted present value (as defined in the senior credit facility) of proved oil, natural gas and NGL 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 1.50% and 2.50% 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 one-month 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 0.50% and 1.50% per annum. Interest is payable quarterly for base rate loans and at the end of the applicable interest period for LIBOR loans, except that if the interest period for a LIBOR loan is six months or longer, interest is paid at the end of each three-month period. Quarterly, the Company pays commitment fees assessed at annual rates ranging from 0.375% to 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 October 2014, in connection with the amendment and restatement of the senior credit facility, the Company’s borrowing base was increased to $1.2 billion (previously $775.0 million). Under the amended and restated agreement, the availability of the borrowing base initially will be limited to a facility amount of $900.0 million. Upon delivery by the Company of a written request and the payment of additional up-front fees to the lenders, the facility amount may be increased up to the full borrowing base. The next redetermination is expected to take place in April 2015. 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. The Company at times incurs additional costs related to the senior credit facility as a result of amendments to the credit agreement and changes to the borrowing base. | ||||||||
At September 30, 2014, the Company had no amount outstanding under the senior credit facility and $10.4 million in outstanding letters of credit, which reduce the availability under the senior credit facility on a dollar-for-dollar basis. | ||||||||
On November 14, 2014, the Company and its lenders amended the credit agreement to waive certain defaults that may have arisen as a result of the application of any new accounting treatment to the under delivery penalty described in Note 2 and extend the period for delivering the unaudited condensed consolidated financial statements for the period ended September 30, 2014. | ||||||||
Senior Notes | ||||||||
The Company’s unsecured senior fixed rate notes (“Senior Notes”) bear interest at a fixed rate per annum, payable semi-annually, with the principal due upon maturity. Certain of the Senior 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 Notes. The Senior 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 19 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 Notes outstanding at September 30, 2014 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 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 $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. | ||||||||
Indentures. Each of the indentures governing the Company’s Senior 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, 2014, the Company was in compliance with all of the covenants contained in the indentures governing its outstanding Senior Notes. |
Derivatives
Derivatives | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
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 on derivative contracts for commodity derivative contracts and in interest expense for interest rate swaps in the consolidated statements of operations. Commodity derivative contracts are settled on a monthly or quarterly basis. 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 consolidated balance sheets. | |||||||||||||||||||||
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, 2014, 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. If the market price is between the ceiling price and purchased put, no payments are due from either party. | |||||||||||||||||||||
Interest Rate Swaps. The Company is exposed to interest rate risk on its long-term fixed rate debt and will be exposed to variable interest rates if it draws on its senior credit facility. 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. | |||||||||||||||||||||
Prior to its maturity on April 1, 2013, 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 due 2014 (“Senior Floating Rate Notes”) at an annual rate of 6.69% for periods prior to their repurchase and redemption in the third quarter of 2012. The interest rate swap was not designated as a hedge. | |||||||||||||||||||||
Derivatives Agreements with Royalty Trusts. The Company is party to derivatives agreements with the Mississippian Trust I, Permian Trust and Mississippian Trust II, respectively, that 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. | |||||||||||||||||||||
In accordance with the terms of the respective derivatives agreements, the Company has 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 additional 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 additional derivative contracts to the Permian Trust and the Mississippian Trust II. | |||||||||||||||||||||
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 4 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, 2014 and December 31, 2013 on a gross basis without regard to same-counterparty netting (in thousands): | |||||||||||||||||||||
Type of Contract | Balance Sheet Classification | September 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Derivative assets | |||||||||||||||||||||
Oil price swaps | Derivative contracts-current | $ | 29,676 | $ | 15,887 | ||||||||||||||||
Natural gas price swaps | Derivative contracts-current | 8,178 | 1,598 | ||||||||||||||||||
Oil collars - three way | Derivative contracts-current | 15,768 | 706 | ||||||||||||||||||
Natural gas collars | Derivative contracts-current | 297 | 177 | ||||||||||||||||||
Oil price swaps | Derivative contracts-noncurrent | 7,405 | 19,376 | ||||||||||||||||||
Natural gas price swaps | Derivative contracts-noncurrent | 311 | — | ||||||||||||||||||
Oil collars - three way | Derivative contracts-noncurrent | 8,072 | 12,189 | ||||||||||||||||||
Natural gas collars | Derivative contracts-noncurrent | 103 | 341 | ||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||
Oil price swaps | Derivative contracts-current | — | (38,396 | ) | |||||||||||||||||
Natural gas price swaps | Derivative contracts-current | — | (1,460 | ) | |||||||||||||||||
Oil price swaps | Derivative contracts-noncurrent | — | (38,344 | ) | |||||||||||||||||
Total net derivative contracts | $ | 69,810 | $ | (27,926 | ) | ||||||||||||||||
See Note 5 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 and has presented its derivative assets and liabilities with the same counterparty on a net basis in the consolidated balance sheets. As a result of the netting provisions, the Company's maximum amount of loss under derivative transactions due to credit risk is limited to the net amounts due from its counterparties. As of September 30, 2014, the counterparties to the Company’s open derivative contracts consisted of 9 financial institutions, all of which are also lenders under the Company’s senior credit facility. The Company is not required to post additional collateral under its derivative contracts as the majority of the counterparties to the Company’s derivative contracts share in the collateral supporting the Company’s senior credit facility. 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 (i) the Company's derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative liability positions, the applicable portion of shared collateral under the senior credit facility (for SandRidge's derivative contracts) and under liens granted on royalty interests (for the Permian Trust’s and the Mississippian Trust II’s novated derivative contracts) (in thousands): | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Amounts Net of Offset | Financial Collateral | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||||
Derivative contracts - current | $ | 53,919 | $ | — | $ | 53,919 | $ | — | $ | 53,919 | |||||||||||
Derivative contracts - noncurrent | 15,891 | — | 15,891 | — | 15,891 | ||||||||||||||||
Total | $ | 69,810 | $ | — | $ | 69,810 | $ | — | $ | 69,810 | |||||||||||
Liabilities | |||||||||||||||||||||
Derivative contracts - current | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Derivative contracts - noncurrent | — | — | — | — | — | ||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
December 31, 2013 | |||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Amounts Net of Offset | Financial Collateral | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||||
Derivative contracts - current | $ | 18,368 | $ | (5,589 | ) | $ | 12,779 | $ | — | $ | 12,779 | ||||||||||
Derivative contracts - noncurrent | 31,906 | (17,780 | ) | 14,126 | — | 14,126 | |||||||||||||||
Total | $ | 50,274 | $ | (23,369 | ) | $ | 26,905 | $ | — | $ | 26,905 | ||||||||||
Liabilities | |||||||||||||||||||||
Derivative contracts - current | $ | 39,856 | $ | (5,589 | ) | $ | 34,267 | $ | (34,267 | ) | $ | — | |||||||||
Derivative contracts - noncurrent | 38,344 | (17,780 | ) | 20,564 | (20,564 | ) | — | ||||||||||||||
Total | $ | 78,200 | $ | (23,369 | ) | $ | 54,831 | $ | (54,831 | ) | $ | — | |||||||||
The Company recorded a (gain) loss on commodity derivative contracts of $(132.6) million and $132.8 million for the three-month periods ended September 30, 2014 and 2013, respectively, as reflected in the accompanying unaudited condensed consolidated statements of operations, which includes net cash (receipts) payments upon settlement of $(3.4) million and $12.5 million, respectively. The Company recorded a (gain) loss on commodity derivative contracts of $(4.8) million and $70.1 million for the nine-month periods ended September 30, 2014, and 2013, respectively, which includes net cash payments upon settlement of $92.9 million and $12.8 million, respectively. Included in these net cash payments are $69.6 million and $29.3 million of cash payments related to settlements of commodity derivative contracts with contractual maturities after the period in which they were settled (“early settlements”) primarily as a result of the sale of the Gulf Properties in February 2014 and the Permian Properties in February 2013, respectively. | |||||||||||||||||||||
At September 30, 2014, the Company’s open commodity derivative contracts consisted of the following: | |||||||||||||||||||||
Oil Price Swaps | |||||||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
October 2014 - December 2014 | 1,115 | $ | 98.78 | ||||||||||||||||||
January 2015 - December 2015 | 5,588 | $ | 92.44 | ||||||||||||||||||
January 2016 - December 2016 | 1,464 | $ | 88.36 | ||||||||||||||||||
Natural Gas Price Swaps | |||||||||||||||||||||
Notional (MMcf) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
October 2014 - December 2014 | 11,040 | $ | 4.31 | ||||||||||||||||||
January 2015 - December 2015 | 15,400 | $ | 4.51 | ||||||||||||||||||
Oil Collars - Three-way | |||||||||||||||||||||
Notional (MBbls) | Sold Put | Purchased Put | Sold Call | ||||||||||||||||||
October 2014 - December 2014 | 2,070 | $70.00 | $90.20 | $100.00 | |||||||||||||||||
January 2015 - December 2015 | 4,576 | $76.56 | $90.28 | $103.48 | |||||||||||||||||
January 2016 - December 2016 | 2,556 | $83.13 | $90.00 | $100.85 | |||||||||||||||||
Natural Gas Collars | |||||||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||||||
October 2014 - December 2014 | 236 | $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, 2014 | ||||
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, 2013 to September 30, 2014 is as follows (in thousands): | ||||
Asset retirement obligations at December 31, 2013 | $ | 424,117 | ||
Liability incurred upon acquiring and drilling wells | 3,835 | |||
Revisions in estimated cash flows | (438 | ) | ||
Liability settled or disposed in current period(1) | (377,745 | ) | ||
Accretion | 7,927 | |||
Asset retirement obligations at September 30, 2014 | 57,696 | |||
Less: current portion | — | |||
Asset retirement obligations, net of current | $ | 57,696 | ||
____________________ | ||||
(1) Includes $366.0 million associated with the Gulf Properties sold in February 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2014 | ||
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 CO 2 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 CO 2 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 plaintiffs appealed the rulings to the Texas Court of Appeals in El Paso. On November 19, 2014, that Court issued its opinion, which affirmed the trial court’s summary judgment rulings in part, but reversing them in part. The Court of Appeals affirmed the summary judgment rulings in the SandRidge Entities’ favor against the GLO. The Court also affirmed the summary judgment rulings in the SandRidge Entities’ favor against Wesley West Minerals, Ltd., on the largest oil and gas lease involved in the case, which accounted for much of the total damages the plaintiffs are claiming. The Court reversed certain rulings on other leases, thus deciding those matters for the plaintiffs. It is anticipated that the plaintiffs will seek rehearing by the Court of Appeals and possibly petition the Supreme Court of Texas for review of the Court of Appeals’ decision. | ||
The Company intends to continue to defend the remaining issues in the trial court, as well as future appellate proceedings. At the time of the rulings on summary judgment, the lawsuit was still in the discovery stage and, accordingly, an estimate of reasonably possible losses, if any, associated with the remaining causes of action and those rulings reversed by the Court of Appeals cannot be made until all of the facts, circumstances and legal theories relating to such claims and the SandRidge Entities' 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 and the other defendants intend to defend this lawsuit vigorously and believe 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 defendants’ 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 former 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. On November 15, 2013, the Company and the individual defendants filed their respective motions to dismiss the amended consolidated complaint. On September 22, 2014, the court denied the motion to dismiss filed on behalf of the Company and the director defendants. The court also granted in part and denied in part the respective motions to dismiss filed on behalf of the other defendants. | ||
On September 26, 2014, the Board of Directors for the Company formed a Special Litigation Committee (“SLC”), composed of two independent and disinterested Company directors, and delegated absolute and final authority to the SLC to review and investigate the claims alleged by the plaintiffs in the Federal Shareholder Derivative Litigation and in the Hefner action, and to determine whether and how those claims should be asserted on the Company’s behalf. | ||
The Company and the individual defendants in the Hefner and Romano actions (the “State Shareholder Derivative Litigation”) moved to stay each of the 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 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. The parties have agreed to stay this action pending the review and investigation by the SLC of the claims alleged by the plaintiffs in the Federal Shareholder Derivative Litigation and in this action, and to determine whether and how those claims should be asserted on the Company’s behalf. | ||
On May 8, 2013, the court stayed the Romano action pending further order of the court. On October 31, 2013, the plaintiff filed a motion to lift the stay, which was denied by the court on February 7, 2014. On October 29, 2014, the court granted plaintiff’s application to dismiss the action without prejudice. | ||
Because the Federal Shareholder Derivative Litigation and the State Shareholder Derivative Litigation are in the early stages, 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 plaintiffs’ claims and the defendants’ 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. On July 23, 2013, plaintiffs filed a consolidated amended complaint, which 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. The defendants have filed respective motions to dismiss the consolidated amended complaint, which are pending before the court. Because the Securities Litigation is in the early stages, 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 defendants’ 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 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 E&P, 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 the 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. | ||
On April 2, 2014, the court granted the defendants’ Motion to Dismiss and granted plaintiffs leave to file an amended complaint by April 16, 2014, which they did on such date. On July 1, 2014, the court granted plaintiffs’ Motion for Conditional Collective Action Certification and for Judicial Notice to the Class, and denied plaintiffs’ Motion to Toll the Statute of Limitations. 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. | ||
On December 18, 2013, the Company received a subpoena duces tecum from the U.S. Department of Justice in connection with an ongoing investigation of possible violations of antitrust laws in connection with the purchase or lease of land, oil or gas rights. The Company is cooperating with the investigation. | ||
On November 10, 2014, a class action complaint was filed in the U. S. District Court for the Western District of Oklahoma against certain current and former directors and officers of the Company in the case styled Steve Surbaugh vs. SandRidge Energy, Inc., Tom L. Ward, James D. Bennett, Eddie M. LeBlanc, and Randall D. Cooley. The complaint asserts a federal securities class action on behalf of a putative class consisting of all persons other than defendants who purchased SandRidge securities between March 1, 2013, through November 4, 2014, seeking to recover damages allegedly caused by the defendants’ violations of federal securities laws under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges that, throughout the class period, the defendants made materially false and misleading statements regarding SandRidge’s business, operations and future prospects because such statements failed to properly account for the penalties SandRidge accrued under its treating agreement with Occidental Petroleum Corporation and, as a result, SandRidge’s financial statements were materially false and misleading during the class period. An estimate of reasonably possible losses associated with this action cannot be made at this time. The Company has not established any reserves relating to this action. | ||
On November 11, 2014, a class action complaint was filed in the U. S. District Court for the Western District of Oklahoma against certain current and former directors and officers of the Company in the case styled Steven T. Dakil vs. SandRidge Energy, Inc., Tom L. Ward, James D. Bennett, and Eddie M. LeBlanc. The complaint asserts a federal securities class action on behalf of a putative class consisting of all persons other than defendants who purchased or otherwise acquired SandRidge securities between February 28, 2013, and November 3, 2014, seeking to recover damages allegedly caused by the defendants’ violations of federal securities laws under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges that, throughout the class period, defendants made materially false and misleading statements regarding SandRidge’s business, operational and compliance policies. Specifically, plaintiff alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) SandRidge was improperly accounting for penalties owed to Occidental Petroleum Corp. under a treating agreement on an annual basis when it was required to do so on a quarterly basis; (ii) SandRidge's quarterly and annual financial and operating results for the periods ending December 31, 2012 through June 30, 2014, were overstated and required restatement; (iii) defendant Ward engaged in improper related party transactions; (iv) SandRidge lacked proper internal controls over financial reporting; and (v) as a result of the foregoing, SandRidge’s financial statements were materially false and misleading during the class period. An estimate of reasonably possible losses associated with this action cannot be made at this time. 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 | ||
The Company is party to a 30-year treating agreement with Occidental for the removal of CO2 from natural gas volumes delivered by the Company. Under the agreement, the Company is required to deliver a total of approximately 3,200 Bcf of CO2 during the agreement period. The Company is obligated to pay Occidental $0.25 per Mcf to the extent minimum annual CO2 volume requirements are not met. Through December 31, 2013, the Company had delivered to Occidental 34.0 Bcf of CO2, which is 164.4 Bcf less than the cumulative minimum annual CO2 volume requirements for the same period. If such under delivered volumes are not made up with commensurate over deliveries in the future, the Company will be obligated to pay Occidental $0.70 per Mcf (approximately $115.1 million total) in 2041, which amount has not been accrued by the Company as a liability as the Company does not currently believe such payment is probable. | ||
Under certain circumstances, the Company will have the right, beginning in 2020, to reduce future minimum annual | ||
CO2 volume requirements under the agreement by paying Occidental an amount equal to the present value of $0.70 multiplied by such reduced CO2 volume requirements as designated by the Company. As of September 30, 2014, if the Company were to cease delivering natural gas for processing and made no future CO2 deliveries from such date until 2020, the estimated amount required to be paid in 2020 in order to adjust the future CO2 volume requirements to zero, including applicable annual delivery shortfall penalties, would be approximately $585.7 million. This amount will continue to decrease as future deliveries of CO2 are made. The Company also may terminate the treating agreement at any time, which would require a termination payment by the Company to Occidental of an amount equal to (a) the present value of $0.70 multiplied by the remaining CO2 volumes required to be delivered under the agreement, plus (b) Occidental’s current net book value of the Century Plant. | ||
Based upon the quantity of CO2 delivered by the Company during the period from January 1, 2014 through September 30, 2014 and the estimated quantities the Company expects to deliver during the remainder of 2014 the Company accrued estimated annual under delivery penalties ($0.25 per Mcf) of approximately $8.6 million and $25.3 million for the three and nine-month periods ended September 30, 2014, respectively. Additionally, the Company has included an accrued expense for the three and nine-month periods ended September 30, 2013 of $8.3 million and $24.3 million, respectively. for the $0.25 Mcf fee attributable to the estimated 2013 annual under delivery penalty based upon the quantity of CO2 delivered by the Company during the period from January 1, 2013 through September 30, 2013 as described in Note 2. Based on current projected natural gas production levels, the Company expects to accrue between approximately $30.0 million and $37.0 million during the year ending December 31, 2014 for amounts related to the Company’s anticipated shortfall in meeting its 2014 annual delivery obligations. The Company has not accrued any liability for the $0.70 per Mcf fee (approximately $70.9 million total) that would be due in 2041 if these anticipated shortfalls occur and are not made up in the future as the Company does not currently believe such payment is probable. | ||
The Company has first priority on daily available processing capacity for properly nominated and delivered volumes; however, based on cumulative delivered volumes as of the balance sheet date, if the Company makes no further deliveries from that date until 2025, beginning in 2025 the Century Plant, even if fully utilized, would not have adequate capacity to allow the Company to deliver CO2 volumes attributable to previously incurred delivery shortfalls at that time. | ||
Guarantees of Plugging and Abandonment Obligations | ||
Under the equity purchase agreement associated with the sale of the Gulf Properties, the Company has guaranteed on behalf of Fieldwood certain plugging and abandonment obligations associated with the Gulf Properties for a period of up to one year from the date of closing. See Note 3 for additional information regarding the guarantees. | ||
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, which depend 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 10 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 the Permian Trust and the Mississippian Trust II. See Note 4 for discussion of these drilling obligations. The Company depends on cash flows from operating activities and, as necessary, borrowings under its 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 sales or other monetizations of assets to fund its capital expenditures. Based on current cash balances, including proceeds received from the sale of the Gulf Properties, cash flows from operating activities and availability under the Company’s credit facility, the Company expects to be able to fund its planned capital expenditures budget, debt service requirements and working capital needs for the remainder of 2014 and 2015. 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, natural gas and NGL 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 9 for discussion of the financial covenants in the senior credit facility. |
Equity
Equity | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Equity | Equity | |||||||||||||||||||||||
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 income available (loss applicable) to the Company’s common stockholders and the Company’s basic income (loss) per share calculation for the three and nine-month periods ended September 30, 2014 and 2013 as presented in the accompanying unaudited condensed consolidated statements of operations, are included in the tables below (in thousands): | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
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 | — | 500 | 500 | 2,500 | 3,000 | ||||||||||||||||||
7.0% Convertible perpetual preferred stock | — | 5,250 | 5,250 | — | 5,250 | 5,250 | ||||||||||||||||||
Total | $ | 3,315 | $ | 8,066 | $ | 11,381 | $ | 3,315 | $ | 10,566 | $ | 13,881 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
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 | — | 6,500 | 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 | $ | 10,691 | $ | 39,144 | $ | 28,453 | $ | 13,191 | $ | 41,644 | ||||||||||||
In December 2014, all outstanding shares of the 6.0% convertible preferred stock converted automatically into shares of the Company’s common stock at the then-prevailing conversion rate. The final dividend payment for the 6.0% convertible preferred stock was made during the three-month period ended September 30, 2014. | ||||||||||||||||||||||||
Treasury Stock and Stock Repurchase Program | ||||||||||||||||||||||||
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. The following table shows the number of shares withheld for taxes and the associated value of those shares for the nine-month periods ended September 30, 2014 and 2013. These shares were accounted for as treasury stock when withheld and then immediately retired. | ||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Number of shares withheld for taxes | 1,004 | 5,604 | ||||||||||||||||||||||
Value of shares withheld for taxes | $ | 6,281 | $ | 29,661 | ||||||||||||||||||||
In September 2014, the Company’s Board of Directors approved a share repurchase program under which the Company can repurchase up to $200.0 million of the Company’s common stock. Under the program’s terms, shares may be repurchased on the open market, through privately negotiated transactions such as block trades, or by other means as determined by SandRidge’s management and in accordance with the requirements of the Securities and Exchange Commission. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, and other conditions. There is no fixed termination date for this repurchase program, and the repurchase program may be suspended or discontinued at any time. Payment for shares repurchased under the program will be funded using the Company's working capital. During the three-month period ended September 30, 2014, 3,500,000 shares totaling $17.5 million were repurchased under the program at prices equivalent to the then current market price and immediately retired. As the Company had an accumulated deficit balance during the third quarter of 2014, the excess of the repurchase price over the par value was fully applied to additional paid-in capital. | ||||||||||||||||||||||||
Stockholder Receivable | ||||||||||||||||||||||||
The Company is party to a settlement agreement relating to a third-party claim against its former CEO under Section 16(b) of the Securities Exchange Act of 1934, as amended. Under the settlement agreement, the Company’s former CEO 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 the Section 16(b) action. The Company agreed to pay the fees of the plaintiff’s lawyers and paid the former CEO’s legal expenses as required under his indemnification agreement. | ||||||||||||||||||||||||
Based on the nature of the settlement as well as the former CEO’s position as an officer of the Company at the time of the settlement, the receivable is classified as a component of additional paid-in capital in the accompanying unaudited condensed consolidated balance sheets. The amount receivable under the agreement as of September 30, 2014 and December 31, 2013 was $3.8 million. | ||||||||||||||||||||||||
Restricted Common Stock | ||||||||||||||||||||||||
Equity compensation provided to employees directly involved in exploration and development activities is capitalized to the Company’s oil and natural gas properties. Equity compensation not capitalized is recognized in general and administrative expenses, production expenses, cost of sales and midstream and marketing expenses in the consolidated statements of operations. For the three and nine-month periods ended September 30, 2014, the Company recognized equity compensation expense of $5.1 million and $18.6 million, net of $1.5 million and $4.5 million capitalized, respectively, related to restricted common stock. 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 of certain former executives from the Company. | ||||||||||||||||||||||||
See Note 17 for discussion of the Company’s performance units. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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 (benefit) provision for income taxes consisted of the following components for the three and nine-month periods ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Current | ||||||||||||||||
Federal | $ | (1,160 | ) | $ | 687 | $ | (1,160 | ) | $ | 4,702 | ||||||
State | 96 | 1,676 | (971 | ) | 2,598 | |||||||||||
(1,064 | ) | 2,363 | (2,131 | ) | 7,300 | |||||||||||
Deferred | ||||||||||||||||
Federal | — | — | — | — | ||||||||||||
State | — | — | — | — | ||||||||||||
— | — | — | — | |||||||||||||
Total (benefit) provision | (1,064 | ) | 2,363 | (2,131 | ) | 7,300 | ||||||||||
Less: income tax provision attributable to noncontrolling interest | 66 | 96 | 236 | 242 | ||||||||||||
Total (benefit) provision attributable to SandRidge Energy, Inc. | $ | (1,130 | ) | $ | 2,267 | $ | (2,367 | ) | $ | 7,058 | ||||||
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. The Company’s deferred tax assets have been reduced by a valuation allowance due to a determination 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. 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 the significant weight placed on the Company's cumulative negative earnings position, the Company continued to maintain the full valuation allowance against its net deferred tax asset at September 30, 2014. | ||||||||||||||||
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 ownership changes within the meaning of IRC Section 382 during 2008 and 2010 that subjected certain of the Company’s tax attributes, including $929.4 million of federal net operating loss carryforwards, to the IRC Section 382 limitation. These limitations could result in a material amount of existing loss carryforwards expiring unused. None of these limitations resulted in a current federal tax liability at September 30, 2014. | ||||||||||||||||
At September 30, 2014 and December 31, 2013, the Company had a liability of approximately $0.1 million and $1.4 million, respectively, for unrecognized tax benefits. Included in the $1.4 million liability for unrecognized tax benefits at December 31, 2013 was $0.1 million for interest and penalties relating to uncertain tax positions. The company does not expect a significant change in its gross unrecognized tax benefits balance within the next twelve months. | ||||||||||||||||
The Company’s only taxing jurisdiction is the United States (federal and state). The Company’s tax years 2011 to present remain open for federal examination. Additionally, tax years 2005 through 2010 remain subject to examination for the purpose of determining the amount of remaining federal net operating loss and other carryforwards. The number of years open for state tax audits varies, depending on the state, but are generally from three to five years. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings (Loss) Per Share | Earnings (Loss) per Share | |||||||||||
The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings (loss) per share, for the three and nine-month periods ended September 30, 2014 and 2013: | ||||||||||||
Net Income (Loss) | Weighted Average Shares | Earnings (Loss) Per Share | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||
Basic earnings per share | $ | 145,957 | 485,458 | $ | 0.3 | |||||||
Effect of dilutive securities | ||||||||||||
Restricted stock | — | 320 | ||||||||||
Convertible preferred stock | 11,381 | 90,133 | ||||||||||
Diluted earnings per share | $ | 157,338 | 575,911 | $ | 0.27 | |||||||
Three Months Ended September 30, 2013 (Restated) | ||||||||||||
Basic loss per share | $ | (95,328 | ) | $ | 483,582 | $ | (0.20 | ) | ||||
Effect of dilutive securities | ||||||||||||
Restricted stock | — | — | ||||||||||
Convertible preferred stock(2) | — | — | ||||||||||
Diluted loss per share | $ | (95,328 | ) | 483,582 | $ | (0.20 | ) | |||||
Nine Months Ended September 30, 2014 | ||||||||||||
Basic loss per share | $ | (51,036 | ) | 485,194 | $ | (0.11 | ) | |||||
Effect of dilutive securities | ||||||||||||
Restricted stock(1) | — | — | ||||||||||
Convertible preferred stock(2) | — | — | ||||||||||
Diluted loss per share | $ | (51,036 | ) | 485,194 | $ | (0.11 | ) | |||||
Nine Months Ended September 30, 2013 (Restated) | ||||||||||||
Basic loss per share | $ | (638,895 | ) | 480,209 | $ | (1.33 | ) | |||||
Effect of dilutive securities | ||||||||||||
Restricted stock(1) | — | — | ||||||||||
Convertible preferred stock(2) | — | — | ||||||||||
Diluted loss per share | $ | (638,895 | ) | 480,209 | $ | (1.33 | ) | |||||
____________________ | ||||||||||||
-1 | Restricted stock awards covering 2.8 million shares and 1.0 million shares for the nine-month periods ended September 30, 2014 and 2013, respectively, were excluded from the computation of loss per share because their effect would have been antidilutive. | |||||||||||
-2 | Potential common shares related to the Company’s outstanding 8.5%, 6.0% and 7.0% convertible perpetual preferred stock covering 90.1 million shares for the nine-month period ended September 30, 2014 and the three and nine-month periods ended September 30, 2013, were excluded from the computation of loss per share because their effect would have been antidilutive under the if-converted method. | |||||||||||
See Note 13 for discussion of preferred stock dividends. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
Former Chairman and CEO Severance. On June 28, 2013, the Company’s then current CEO, Tom Ward, separated employment from the Company. In accordance with the terms of Mr. Ward’s employment agreement, the Company incurred $57.9 million in salary and bonus expense and $36.8 million associated with the accelerated vesting of 6.3 million shares of restricted stock awards during the nine-month period ended September 30, 2013. As of September 30, 2014, the remaining amounts due under the terms of his employment agreement include $3.5 million to be paid in monthly installments through December 2016. These amounts are included in other current liabilities and other long-term obligations in the accompanying unaudited condensed consolidated balance sheet. See Note 13 for discussion of the stockholder receivable due from Mr. Ward. | |
Other Employee Termination Benefits. Certain employees received termination benefits, including severance and accelerated stock vesting, upon separation of service from the Company during the nine-month periods ended September 30, 2014 and 2013. For the nine-month period ended September 30, 2014 employee termination benefits were $8.9 million primarily as a result of the sale of the Gulf Properties. For the nine-month period ended September 30, 2013, employee termination benefits, excluding amounts attributable to the Company’s former chairman and CEO, were $25.7 million primarily as a result of other executives’ separation from employment and the sale of the Permian Properties. | |
2014 Divestiture. See Note 3 for discussion of the sale of the Gulf Properties to Fieldwood and the Company’s guarantee on behalf of Fieldwood of certain associated plugging and abandonment obligations associated with the Gulf Properties. Fieldwood is a portfolio company of Riverstone Holdings LLC, affiliates of which own a significant number of shares of the Company’s common stock. | |
Acquisition of Ownership Interest. In March 2014, the Company purchased the additional ownership interest owned by its partner in GRLP and Genpar, which was deemed a related party at the time. See Note 4 for additional discussion. |
Performance_Units
Performance Units | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Performance Units | Performance Units | ||||
The Company periodically grants performance units to certain members of senior management under the Company’s existing long-term incentive plan which vest over a performance period of approximately three years. The value, and ultimate payout, of the performance units is determined based upon the Company’s total shareholder return relative to that of a predetermined peer group over a specific performance period. If performance exceeds established minimum thresholds, payout percentages could range from 50% to 200% of specified target values. If minimum target thresholds are not met, the payout is reduced to zero. | |||||
The performance units are valued for accounting purposes using a Monte Carlo simulation based on certain assumptions, including (i) 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 for each grant year and (ii) a risk-free interest rate based on the U.S. Treasury bond yields for a term commensurate with the approximate remaining vesting period for each grant. As of September 30, 2014 and December 31, 2013, the Company’s liability associated with performance units totaled $1.8 million. The liability represents the fair value of the portion of performance units for which requisite service has been completed. The following table presents a summary of the fair value of the performance units and the related assumptions for all outstanding units as of September 30, 2014. | |||||
Expected price volatility range | 21.1 | % | - | 54.30% | |
Weighted-average risk-free interest rate | 0.50% | ||||
Weighted-average fair value per unit | $43.77 |
Business_Segment_Information
Business Segment Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Business Segment Information | Business Segment Information | |||||||||||||||||||
The Company has three reportable 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 exploration 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 coordinates the delivery of electricity to the Company’s exploration and production operations in the Mid-Continent. The All Other column in the tables below includes items not related to the Company’s reportable segments, including the Company’s 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(1) | Drilling and Oil Field Services(2) | Midstream Services | All Other | Consolidated Total | ||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Revenues | $ | 359,613 | $ | 51,082 | $ | 31,132 | $ | 1,224 | $ | 443,051 | ||||||||||
Inter-segment revenue | — | (29,734 | ) | (19,210 | ) | — | (48,944 | ) | ||||||||||||
Total revenues | $ | 359,613 | $ | 21,348 | $ | 11,922 | $ | 1,224 | $ | 394,107 | ||||||||||
Income (loss) from operations | $ | 275,191 | $ | (1,155 | ) | $ | (3,218 | ) | $ | (14,327 | ) | $ | 256,491 | |||||||
Interest expense | — | — | — | (59,783 | ) | (59,783 | ) | |||||||||||||
Other (expense) income, net | (38 | ) | (89 | ) | 5 | (151 | ) | (273 | ) | |||||||||||
Income (loss) before income taxes | $ | 275,153 | $ | (1,244 | ) | $ | (3,213 | ) | $ | (74,261 | ) | $ | 196,435 | |||||||
Capital expenditures(3) | $ | 435,758 | $ | 3,603 | $ | 14,045 | $ | 14,422 | $ | 467,828 | ||||||||||
Depreciation, depletion, amortization, accretion and impairment | $ | 113,711 | $ | 6,884 | $ | 2,584 | $ | 4,977 | $ | 128,156 | ||||||||||
Three Months Ended September 30, 2013 (Restated) | ||||||||||||||||||||
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 | $ | (19,858 | ) | $ | (8,276 | ) | $ | (7,691 | ) | $ | 33,659 | $ | (2,166 | ) | ||||||
Interest income (expense) | 331 | — | — | (61,716 | ) | (61,385 | ) | |||||||||||||
Other (expense) income, net | (350 | ) | — | (41 | ) | 1,049 | 658 | |||||||||||||
Loss before income taxes | $ | (19,877 | ) | $ | (8,276 | ) | $ | (7,732 | ) | $ | (27,008 | ) | $ | (62,893 | ) | |||||
Capital expenditures(3) | $ | 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 | ||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Revenues | $ | 1,106,883 | $ | 150,054 | $ | 115,846 | $ | 3,299 | $ | 1,376,082 | ||||||||||
Inter-segment revenue | (26 | ) | (92,774 | ) | (71,405 | ) | — | (164,205 | ) | |||||||||||
Total revenues | $ | 1,106,857 | $ | 57,280 | $ | 44,441 | $ | 3,299 | $ | 1,211,877 | ||||||||||
Income (loss) from operations | $ | 288,497 | $ | (6,605 | ) | $ | (6,973 | ) | $ | (58,679 | ) | $ | 216,240 | |||||||
Interest income (expense), net | 138 | — | — | (183,827 | ) | (183,689 | ) | |||||||||||||
Other (expense) income, net | (272 | ) | (561 | ) | 5 | 3,987 | 3,159 | |||||||||||||
Income (loss) before income taxes | $ | 288,363 | $ | (7,166 | ) | $ | (6,968 | ) | $ | (238,519 | ) | $ | 35,710 | |||||||
Capital expenditures(3) | $ | 1,056,568 | $ | 10,877 | $ | 25,810 | $ | 27,282 | $ | 1,120,537 | ||||||||||
Depreciation, depletion, amortization, accretion and impairment | $ | 497,888 | $ | 25,390 | $ | 7,534 | $ | 15,452 | $ | 546,264 | ||||||||||
At September 30, 2014 | ||||||||||||||||||||
Total assets | $ | 5,685,412 | $ | 142,104 | $ | 193,630 | $ | 957,243 | $ | 6,978,389 | ||||||||||
Exploration and Production(1) | Drilling and Oil Field Services(2) | Midstream Services | All Other | Consolidated Total | ||||||||||||||||
Nine Months Ended September 30, 2013(Restated) | ||||||||||||||||||||
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 | $ | (95,927 | ) | $ | (36,684 | ) | $ | (18,106 | ) | $ | (140,545 | ) | $ | (291,262 | ) | |||||
Interest income (expense), net | 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 | $ | (95,013 | ) | $ | (36,684 | ) | $ | (19,020 | ) | $ | (429,841 | ) | $ | (580,558 | ) | |||||
Capital expenditures(3) | $ | 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 December 31, 2013 | ||||||||||||||||||||
Total assets | $ | 6,157,225 | $ | 158,737 | $ | 188,165 | $ | 1,180,668 | $ | 7,684,795 | ||||||||||
____________________ | ||||||||||||||||||||
-1 | Income (loss) from operations includes a full cost ceiling limitation impairment of $164.8 million for the nine-month period ended September 30, 2014, and a loss on the sale of the Permian Properties of $398.9 million for the nine-month period ended September 30, 2013. | |||||||||||||||||||
-2 | Income (loss) from operations includes an impairment of $3.1 million and $11.1 million on certain drilling assets held for sale for the nine-month periods ended September 30, 2014 and September 30, 2013, respectively. | |||||||||||||||||||
-3 | On an accrual basis and exclusive of acquisitions. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
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, 2014, 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 outstanding Senior Notes. 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. | ||||||||||||||||||||||
Certain of the Company’s wholly owned subsidiaries that were sold in February 2014, as discussed in Note 3, guaranteed the Company’s registered debt. Upon the closing of the sale, these subsidiaries were released from their guarantees. The condensed consolidating financial information in the tables below reflects these subsidiaries’ financial information through the date of the sale. | ||||||||||||||||||||||
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. | ||||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Current assets | ||||||||||||||||||||||
Cash and cash equivalents | $ | 580,697 | $ | 1,796 | $ | 7,753 | $ | — | $ | 590,246 | ||||||||||||
Accounts receivable, net | 2,372 | 311,667 | 18,876 | (2,372 | ) | 330,543 | ||||||||||||||||
Intercompany accounts receivable | 480,898 | 1,341,756 | 51,433 | (1,874,087 | ) | — | ||||||||||||||||
Derivative contracts | — | 47,929 | 15,835 | (9,845 | ) | 53,919 | ||||||||||||||||
Prepaid expenses | — | 6,782 | 12 | — | 6,794 | |||||||||||||||||
Other current assets | — | 23,206 | 17 | — | 23,223 | |||||||||||||||||
Total current assets | 1,063,967 | 1,733,136 | 93,926 | (1,886,304 | ) | 1,004,725 | ||||||||||||||||
Property, plant and equipment, net | — | 4,790,902 | 1,089,803 | — | 5,880,705 | |||||||||||||||||
Investment in subsidiaries | 6,245,116 | 21,021 | — | (6,266,137 | ) | — | ||||||||||||||||
Derivative contracts | — | 15,891 | 1,980 | (1,980 | ) | 15,891 | ||||||||||||||||
Other assets | 62,863 | 19,403 | 704 | (5,902 | ) | 77,068 | ||||||||||||||||
Total assets | $ | 7,371,946 | $ | 6,580,353 | $ | 1,186,413 | $ | (8,160,323 | ) | $ | 6,978,389 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 163,774 | $ | 486,207 | $ | 5,040 | $ | (2,372 | ) | $ | 652,649 | |||||||||||
Intercompany accounts payable | 1,335,071 | 503,580 | 35,436 | (1,874,087 | ) | — | ||||||||||||||||
Derivative contracts | — | 9,845 | — | (9,845 | ) | — | ||||||||||||||||
Other current liabilities | 7,985 | 10,564 | — | — | 18,549 | |||||||||||||||||
Total current liabilities | 1,506,830 | 1,010,196 | 40,476 | (1,886,304 | ) | 671,198 | ||||||||||||||||
Investment in subsidiaries | 892,524 | 141,566 | — | (1,034,090 | ) | — | ||||||||||||||||
Long-term debt | 3,201,203 | — | — | (5,902 | ) | 3,195,301 | ||||||||||||||||
Derivative contracts | — | 1,980 | — | (1,980 | ) | — | ||||||||||||||||
Asset retirement obligations | — | 57,696 | — | — | 57,696 | |||||||||||||||||
Other long-term obligations | 95 | 16,323 | — | — | 16,418 | |||||||||||||||||
Total liabilities | 5,600,652 | 1,227,761 | 40,476 | (2,928,276 | ) | 3,940,613 | ||||||||||||||||
Equity | ||||||||||||||||||||||
SandRidge Energy, Inc. stockholders’ equity | 1,771,294 | 5,352,592 | 1,145,937 | (6,498,529 | ) | 1,771,294 | ||||||||||||||||
Noncontrolling interest | — | — | — | 1,266,482 | 1,266,482 | |||||||||||||||||
Total equity | 1,771,294 | 5,352,592 | 1,145,937 | (5,232,047 | ) | 3,037,776 | ||||||||||||||||
Total liabilities and equity | $ | 7,371,946 | $ | 6,580,353 | $ | 1,186,413 | $ | (8,160,323 | ) | $ | 6,978,389 | |||||||||||
December 31, 2013 (Revised) | ||||||||||||||||||||||
Parent(1) | Guarantors(2) | Non-Guarantors | Eliminations(1)(2) | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Current assets | ||||||||||||||||||||||
Cash and cash equivalents | $ | 805,505 | $ | 1,013 | $ | 8,145 | $ | — | $ | 814,663 | ||||||||||||
Accounts receivable, net | — | 326,345 | 22,873 | — | 349,218 | |||||||||||||||||
Intercompany accounts receivable | 153,325 | 982,524 | 70,107 | (1,205,956 | ) | — | ||||||||||||||||
Derivative contracts | — | 7,796 | 14,748 | (9,765 | ) | 12,779 | ||||||||||||||||
Prepaid expenses | — | 39,165 | 88 | — | 39,253 | |||||||||||||||||
Other current assets | 1,376 | 24,410 | 124 | — | 25,910 | |||||||||||||||||
Total current assets | 960,206 | 1,381,253 | 116,085 | (1,215,721 | ) | 1,241,823 | ||||||||||||||||
Property, plant and equipment, net | — | 5,125,543 | 1,182,132 | — | 6,307,675 | |||||||||||||||||
Investment in subsidiaries | 6,009,603 | 49,418 | — | (6,059,021 | ) | — | ||||||||||||||||
Derivative contracts | — | 12,650 | 9,585 | (8,109 | ) | 14,126 | ||||||||||||||||
Other assets | 61,923 | 65,123 | 27 | (5,902 | ) | 121,171 | ||||||||||||||||
Total assets | $ | 7,031,732 | $ | 6,633,987 | $ | 1,307,829 | $ | (7,288,753 | ) | $ | 7,684,795 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 207,572 | $ | 601,074 | $ | 3,842 | $ | — | $ | 812,488 | ||||||||||||
Intercompany accounts payable | 967,365 | 181,573 | 57,018 | (1,205,956 | ) | — | ||||||||||||||||
Derivative contracts | — | 44,032 | — | (9,765 | ) | 34,267 | ||||||||||||||||
Asset retirement obligations | — | 87,063 | — | — | 87,063 | |||||||||||||||||
Total current liabilities | 1,174,937 | 913,742 | 60,860 | (1,215,721 | ) | 933,818 | ||||||||||||||||
Investment in subsidiaries | 828,794 | 152,266 | — | (981,060 | ) | — | ||||||||||||||||
Long-term debt | 3,200,809 | — | — | (5,902 | ) | 3,194,907 | ||||||||||||||||
Derivative contracts | — | 28,673 | — | (8,109 | ) | 20,564 | ||||||||||||||||
Asset retirement obligations | — | 337,054 | — | — | 337,054 | |||||||||||||||||
Other long-term obligations | 1,382 | 21,443 | — | — | 22,825 | |||||||||||||||||
Total liabilities | 5,205,922 | 1,453,178 | 60,860 | (2,210,792 | ) | 4,509,168 | ||||||||||||||||
Equity | ||||||||||||||||||||||
SandRidge Energy, Inc. stockholders’ equity | 1,825,810 | 5,180,809 | 1,246,969 | (6,427,778 | ) | 1,825,810 | ||||||||||||||||
Noncontrolling interest | — | — | — | 1,349,817 | 1,349,817 | |||||||||||||||||
Total equity | 1,825,810 | 5,180,809 | 1,246,969 | (5,077,961 | ) | 3,175,627 | ||||||||||||||||
Total liabilities and equity | $ | 7,031,732 | $ | 6,633,987 | $ | 1,307,829 | $ | (7,288,753 | ) | $ | 7,684,795 | |||||||||||
____________________ | ||||||||||||||||||||||
-1 | Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $828.8 million, as liabilities and to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to Guarantor full cost pool (property, plant and equipment, net) and a reduction to Parent equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements. | |||||||||||||||||||||
-2 | Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $152.3 million, as liabilities. Property, plant and equipment, net has been revised to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to the Guarantor full cost pool (property, plant and equipment, net) and a reduction to Guarantor equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements. | |||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||
Total revenues | $ | — | $ | 340,563 | $ | 53,544 | $ | — | $ | 394,107 | ||||||||||||
Expenses | ||||||||||||||||||||||
Direct operating expenses | — | 113,774 | 3,672 | — | 117,446 | |||||||||||||||||
General and administrative | 57 | 23,764 | 768 | — | 24,589 | |||||||||||||||||
Depreciation, depletion, amortization and accretion | — | 113,649 | 14,453 | — | 128,102 | |||||||||||||||||
Impairment | — | 54 | — | — | 54 | |||||||||||||||||
Gain on derivative contracts | — | (110,355 | ) | (22,220 | ) | — | (132,575 | ) | ||||||||||||||
Total expenses | 57 | 140,886 | (3,327 | ) | — | 137,616 | ||||||||||||||||
(Loss) income from operations | (57 | ) | 199,677 | 56,871 | — | 256,491 | ||||||||||||||||
Equity earnings from subsidiaries | 216,026 | 16,622 | — | (232,648 | ) | — | ||||||||||||||||
Interest expense | (59,783 | ) | — | — | — | (59,783 | ) | |||||||||||||||
Other expense, net | — | (273 | ) | — | — | (273 | ) | |||||||||||||||
Income before income taxes | 156,186 | 216,026 | 56,871 | (232,648 | ) | 196,435 | ||||||||||||||||
Income tax (benefit) expense | (1,152 | ) | — | 88 | — | (1,064 | ) | |||||||||||||||
Net income | 157,338 | 216,026 | 56,783 | (232,648 | ) | 197,499 | ||||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 40,161 | 40,161 | |||||||||||||||||
Net income attributable to SandRidge Energy, Inc. | $ | 157,338 | $ | 216,026 | $ | 56,783 | $ | (272,809 | ) | $ | 157,338 | |||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Three Months Ended September 30, 2013 (Restated) | ||||||||||||||||||||||
Total revenues | $ | — | $ | 411,847 | $ | 81,830 | $ | (74 | ) | $ | 493,603 | |||||||||||
Expenses | ||||||||||||||||||||||
Direct operating expenses(1) | — | 154,175 | 6,283 | (74 | ) | 160,384 | ||||||||||||||||
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 | |||||||||||||||||
Loss (gain) on sale of assets | — | 900 | (361 | ) | — | 539 | ||||||||||||||||
Total expenses(1) | 83 | 438,049 | 57,711 | (74 | ) | 495,769 | ||||||||||||||||
(Loss) income from operations(1) | (83 | ) | (26,202 | ) | 24,119 | — | (2,166 | ) | ||||||||||||||
Equity earnings from subsidiaries | (17,420 | ) | 7,803 | — | 9,617 | — | ||||||||||||||||
Interest (expense) income | (61,716 | ) | 331 | — | — | (61,385 | ) | |||||||||||||||
Other income, net | — | 648 | 10 | — | 658 | |||||||||||||||||
(Loss) income before income taxes(1) | (79,219 | ) | (17,420 | ) | 24,129 | 9,617 | (62,893 | ) | ||||||||||||||
Income tax expense | 2,228 | — | 135 | — | 2,363 | |||||||||||||||||
Net (loss) income(1) | (81,447 | ) | (17,420 | ) | 23,994 | 9,617 | (65,256 | ) | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 16,191 | 16,191 | |||||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc.(1) | $ | (81,447 | ) | $ | (17,420 | ) | $ | 23,994 | $ | (6,574 | ) | $ | (81,447 | ) | ||||||||
____________________ | ||||||||||||||||||||||
-1 | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. | |||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||
Total revenues | $ | — | $ | 1,034,133 | $ | 177,843 | $ | (99 | ) | $ | 1,211,877 | |||||||||||
Expenses | ||||||||||||||||||||||
Direct operating expenses | — | 345,809 | 13,413 | (99 | ) | 359,123 | ||||||||||||||||
General and administrative | 277 | 91,190 | 3,575 | — | 95,042 | |||||||||||||||||
Depreciation, depletion, amortization and accretion | — | 333,463 | 44,835 | — | 378,298 | |||||||||||||||||
Impairment | — | 125,653 | 42,313 | — | 167,966 | |||||||||||||||||
(Gain) loss on derivative contracts | — | (8,744 | ) | 3,952 | — | (4,792 | ) | |||||||||||||||
Total expenses | 277 | 887,371 | 108,088 | (99 | ) | 995,637 | ||||||||||||||||
(Loss) income from operations | (277 | ) | 146,762 | 69,755 | — | 216,240 | ||||||||||||||||
Equity earnings from subsidiaries | 169,766 | 19,707 | — | (189,473 | ) | — | ||||||||||||||||
Interest (expense) income | (183,827 | ) | 138 | — | — | (183,689 | ) | |||||||||||||||
Other income, net | — | 3,159 | — | — | 3,159 | |||||||||||||||||
(Loss) income before income taxes | (14,338 | ) | 169,766 | 69,755 | (189,473 | ) | 35,710 | |||||||||||||||
Income tax (benefit) expense | (2,446 | ) | — | 315 | — | (2,131 | ) | |||||||||||||||
Net (loss) income | (11,892 | ) | 169,766 | 69,440 | (189,473 | ) | 37,841 | |||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 49,733 | 49,733 | |||||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc. | $ | (11,892 | ) | $ | 169,766 | $ | 69,440 | $ | (239,206 | ) | $ | (11,892 | ) | |||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Nine Months Ended September 30, 2013 (Restated) | ||||||||||||||||||||||
Total revenues | $ | — | $ | 1,277,289 | $ | 241,314 | $ | (323 | ) | $ | 1,518,280 | |||||||||||
Expenses | ||||||||||||||||||||||
Direct operating expenses(1) | — | 499,027 | 24,671 | (323 | ) | 523,375 | ||||||||||||||||
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(1) | 258 | 1,578,126 | 231,481 | — | (323 | ) | — | 1,809,542 | ||||||||||||||
(Loss) income from operations(1) | (258 | ) | (300,837 | ) | 9,833 | — | (291,262 | ) | ||||||||||||||
Equity earnings from subsidiaries | (298,822 | ) | (606 | ) | — | 299,428 | — | |||||||||||||||
Interest (expense) income | (209,211 | ) | 757 | — | — | (208,454 | ) | |||||||||||||||
Loss on extinguishment of debt | (82,005 | ) | — | — | — | (82,005 | ) | |||||||||||||||
Other income (expense), net | — | 1,864 | (701 | ) | — | 1,163 | ||||||||||||||||
(Loss) income before income taxes(1) | (590,296 | ) | (298,822 | ) | 9,132 | 299,428 | (580,558 | ) | ||||||||||||||
Income tax expense | 6,955 | — | 345 | — | 7,300 | |||||||||||||||||
Net (loss) income(1) | (597,251 | ) | (298,822 | ) | 8,787 | 299,428 | (587,858 | ) | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 9,393 | 9,393 | |||||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc.(1) | $ | (597,251 | ) | $ | (298,822 | ) | $ | 8,787 | $ | 290,035 | $ | (597,251 | ) | |||||||||
____________________ | ||||||||||||||||||||||
-1 | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. | |||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 173,597 | $ | 49,777 | $ | 178,603 | $ | (6,293 | ) | $ | 395,684 | |||||||||||
Cash flows from investing activities | ||||||||||||||||||||||
Capital expenditures for property, plant, and equipment | — | (1,071,465 | ) | — | — | (1,071,465 | ) | |||||||||||||||
Proceeds from sale of assets | — | 711,547 | 2,747 | — | 714,294 | |||||||||||||||||
Other | — | (146,274 | ) | 1,061 | 128,293 | (16,920 | ) | |||||||||||||||
Net cash (used in) provided by | — | (506,192 | ) | 3,808 | 128,293 | (374,091 | ) | |||||||||||||||
investing activities | ||||||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||
Distributions to unitholders | — | — | (184,176 | ) | 33,736 | (150,440 | ) | |||||||||||||||
Intercompany (advances) borrowings, net | (327,573 | ) | 327,459 | 114 | — | — | ||||||||||||||||
Other | (70,832 | ) | 129,739 | 1,259 | (155,736 | ) | (95,570 | ) | ||||||||||||||
Net cash (used in) provided by | (398,405 | ) | 457,198 | (182,803 | ) | (122,000 | ) | (246,010 | ) | |||||||||||||
financing activities | ||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (224,808 | ) | 783 | (392 | ) | — | (224,417 | ) | ||||||||||||||
Cash and cash equivalents at beginning of year | 805,505 | 1,013 | 8,145 | — | 814,663 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 580,697 | $ | 1,796 | $ | 7,753 | $ | — | $ | 590,246 | ||||||||||||
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 | ) | |||||||||||||||
Distribution 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 | ||||||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Subsequent Events [Abstract] | |||||||||
Subsequent Events | Subsequent Events | ||||||||
Royalty Trust Distributions. On October 30, 2014, the Royalty Trusts announced quarterly distributions for the three-month period ended September 30, 2014. The following distributions were paid on November 28, 2014 to holders of record as of the close of business on November 14, 2014 (in thousands): | |||||||||
Royalty Trust | Total Distribution | Amount Distributed to Third-Party Unitholders | |||||||
Mississippian Trust I | $ | 6,913 | $ | 5,055 | |||||
Permian Trust | 28,245 | 25,830 | |||||||
Mississippian Trust II | 14,992 | 12,482 | |||||||
Total | $ | 50,150 | $ | 43,367 | |||||
Repurchases of Common Stock. During October 2014, the Company repurchased 23,911,000 shares of its common stock for approximately $93.8 million, excluding fees of $0.5 million, in open market transactions pursuant to the share repurchase program approved by the Company’s Board of Directors and announced in September 2014. As of December 31, 2014, approximately $88.7 million may yet be repurchased under the share repurchase program. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business. SandRidge Energy, Inc. is an oil and natural gas company with a principal focus on exploration and production activities in the Mid-Continent region of the United States. The Company owns and operates additional interests in west Texas. The Company also operates businesses and infrastructure systems that are complementary to its primary exploration and production activities, including gas gathering and processing facilities, marketing operations, a saltwater gathering system, an electrical transmission system and a drilling and related oil field services 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. Noncontrolling interest represents third-party ownership interests in the Company’s subsidiaries and consolidated VIEs and is included as a component of equity in the consolidated balance sheets and consolidated statement of changes in equity. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities. An entity is referred to as a VIE if it possesses one of the following criteria: (i) it is thinly capitalized, (ii) the residual equity holders do not control the entity, (iii) the equity holders are shielded from the economic losses, (iv) the equity holders do not participate fully in the entity’s residual economics, or (v) the entity was established with non-substantive voting interests. The Company consolidates a VIE when it has determined it is the primary beneficiary, which requires significant judgment. 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. In addition to the VIEs that the Company consolidates, the Company also holds a variable interest in another VIE that is not consolidated as it was determined that the Company is not the primary beneficiary. The Company monitors both consolidated and unconsolidated VIEs to determine if any events have occurred that could cause the primary beneficiary to change. See Note 4 for discussion of the Company’s significant associated VIEs. |
Interim Financial Statements | Interim Financial Statements. The accompanying unaudited condensed consolidated financial statements as of December 31, 2013 have been derived from the audited financial statements contained in the Company’s amended Annual Report on Form 10-K/A (“2013 Form 10-K/A”) filed on January 8, 2015. The unaudited 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 2013 Form 10-K/A. 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 of normal recurring adjustments, unless otherwise disclosed herein, are necessary to state fairly the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the 2013 Form 10-K/A. |
Significant Accounting Policies. For a description of the Company’s significant accounting policies, see Note 1 of the consolidated financial statements included in the 2013 Form 10-K/A. | |
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. |
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, natural gas and natural gas liquids (“NGL”) reserves; cash flow estimates used in the valuation of guarantees; 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 used to allocate the full cost pool net book value to divested properties, as necessary; 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. | |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted. In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain of the provisions also amend or supersede existing guidance applicable to the recognition of a gain or loss on transfers of nonfinancial assets that are not an output of an entity’s ordinary activities, including sales of property, plant and equipment and real estate. The requirements of ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period with an option of using either a full retrospective or a modified approach for adoption. The Company is currently evaluating the effect, if any, that the updated standard will have on its consolidated financial statements and related disclosures. |
Fair Value Transfer, Policy | The Company recognizes transfers between fair value hierarchy levels as of the end of the reporting period in which the event or change in circumstances causing the transfer occurred. |
Restatement_of_Previously_Issu1
Restatement of Previously Issued Financial Statements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||
Schedule of impact of accounting errors on previously reported balances | The following table presents the impact of the error corrections on the Company’s previously reported unaudited condensed consolidated statement of cash flows for the nine-month period ended September 30, 2013 (in thousands): | ||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||
As Reported | As Restated | ||||||||||||||||
Net loss | $ | (563,576 | ) | $ | (587,858 | ) | |||||||||||
Changes in operating assets and liabilities | $ | 6,868 | $ | 31,150 | |||||||||||||
The following table presents the impact of these adjustments on the Company’s previously reported condensed consolidated balance sheet as of December 31, 2013 (in thousands): | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
As Reported | As Revised | ||||||||||||||||
Current assets | |||||||||||||||||
Costs in excess of billings and contract loss | $ | 4,079 | $ | — | |||||||||||||
Other current assets | $ | 21,831 | $ | 25,910 | |||||||||||||
The following table presents the impact of the error corrections on the Company’s previously reported unaudited condensed consolidated statements of operations for the three and nine-month periods ended September 30, 2013 (in thousands): | |||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||||
As Reported | As Restated | As Reported | As Restated | ||||||||||||||
Production | $ | 116,317 | $ | 124,571 | $ | 365,629 | $ | 389,911 | |||||||||
Total expenses | $ | 487,515 | $ | 495,769 | $ | 1,785,260 | $ | 1,809,542 | |||||||||
Income (loss) from operations | $ | 6,088 | $ | (2,166 | ) | $ | (266,980 | ) | $ | (291,262 | ) | ||||||
(Loss) before income taxes | $ | (54,639 | ) | $ | (62,893 | ) | $ | (556,276 | ) | $ | (580,558 | ) | |||||
Net (loss) | $ | (57,002 | ) | $ | (65,256 | ) | $ | (563,576 | ) | $ | (587,858 | ) | |||||
Net loss attributable to SandRidge Energy, Inc. | $ | (73,193 | ) | $ | (81,447 | ) | $ | (572,969 | ) | $ | (597,251 | ) | |||||
Loss applicable to SandRidge Energy, Inc. common stockholders | $ | (87,074 | ) | $ | (95,328 | ) | $ | (614,613 | ) | $ | (638,895 | ) | |||||
Loss per share | |||||||||||||||||
Basic | $ | (0.18 | ) | $ | (0.20 | ) | $ | (1.28 | ) | $ | (1.33 | ) | |||||
Diluted | $ | (0.18 | ) | $ | (0.20 | ) | $ | (1.28 | ) | $ | (1.33 | ) |
Divestitures_Tables
Divestitures (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Permian Properties | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
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 statement of operations for the nine-month period ended September 30, 2013 (in thousands): | |||||||||||
Nine Months Ended September 30, 2013(1) | ||||||||||||
Revenues | $ | 68,027 | ||||||||||
Direct operating expenses | $ | 17,453 | ||||||||||
__________________ | ||||||||||||
-1 | Includes revenues and direct operating expenses through February 26, 2013, the date of sale. | |||||||||||
Gulf Properties | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Disposal, Revenue and Expense Information | The following table presents revenues and expenses, including direct operating expenses, depletion, accretion of asset retirement obligations and general and administrative expenses, for the Gulf Properties included in the accompanying unaudited condensed consolidated statements of operations for the three-month period ended September 30, 2013 and the nine-month periods ended September 30, 2014 and 2013 (in thousands): | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2014(1) | 2013 | ||||||||||
Revenues | $ | 153,315 | $ | 90,920 | $ | 498,590 | ||||||
Expenses | $ | 126,137 | $ | 63,674 | $ | 377,529 | ||||||
____________________ | ||||||||||||
-1 | Includes revenues and expenses through February 25, 2014, the date of the sale. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Variable Interest Entity | |||||||||||||||||
Open Oil and Natural Gas Commodity Derivative Contracts | At September 30, 2014, the Company’s open commodity derivative contracts consisted of the following: | ||||||||||||||||
Oil Price Swaps | |||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||
Fixed Price | |||||||||||||||||
October 2014 - December 2014 | 1,115 | $ | 98.78 | ||||||||||||||
January 2015 - December 2015 | 5,588 | $ | 92.44 | ||||||||||||||
January 2016 - December 2016 | 1,464 | $ | 88.36 | ||||||||||||||
Natural Gas Price Swaps | |||||||||||||||||
Notional (MMcf) | Weighted Average | ||||||||||||||||
Fixed Price | |||||||||||||||||
October 2014 - December 2014 | 11,040 | $ | 4.31 | ||||||||||||||
January 2015 - December 2015 | 15,400 | $ | 4.51 | ||||||||||||||
Oil Collars - Three-way | |||||||||||||||||
Notional (MBbls) | Sold Put | Purchased Put | Sold Call | ||||||||||||||
October 2014 - December 2014 | 2,070 | $70.00 | $90.20 | $100.00 | |||||||||||||
January 2015 - December 2015 | 4,576 | $76.56 | $90.28 | $103.48 | |||||||||||||
January 2016 - December 2016 | 2,556 | $83.13 | $90.00 | $100.85 | |||||||||||||
Natural Gas Collars | |||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||
October 2014 - December 2014 | 236 | $4.00 | — | $7.78 | |||||||||||||
January 2015 - December 2015 | 1,010 | $4.00 | — | $8.55 | |||||||||||||
Royalty Trusts | |||||||||||||||||
Variable Interest Entity | |||||||||||||||||
Royalty Trust Units | The following table summarizes information about each Royalty Trust as of September 30, 2014: | ||||||||||||||||
Mississippian Trust I | Permian Trust | Mississippian Trust II | |||||||||||||||
Total outstanding common units(1) | 28,000,000 | 39,375,000 | 37,293,750 | ||||||||||||||
Total outstanding subordinated units(1) | — | 13,125,000 | 12,431,250 | ||||||||||||||
Liquidation date(2) | 12/31/30 | 3/31/31 | 12/31/31 | ||||||||||||||
____________________ | |||||||||||||||||
-1 | The Mississippian Trust I’s previously outstanding subordinated units, all of which were held by SandRidge, converted to common units on July 1, 2014. | ||||||||||||||||
-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, 2014 and 2013 as follows (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014(1) | 2013(1) | 2014(2) | 2013(2) | ||||||||||||||
Total distributions | $ | 56,191 | $ | 81,594 | $ | 184,176 | $ | 226,404 | |||||||||
Distributions to third-party unitholders | $ | 47,298 | $ | 54,287 | $ | 150,440 | $ | 153,002 | |||||||||
____________________ | |||||||||||||||||
-1 | Subordination thresholds were not met for the Mississippian Trust I’s distributions for the three-month periods ended September 30, 2014 and 2013 and for the Mississippian Trust II’s distributions for the three-month period ended September 30, 2014, resulting in reduced distributions to the Company on its subordinated units for these periods. | ||||||||||||||||
-2 | Subordination thresholds were not met for the Mississippian Trust I’s distributions for the nine-month period ended September 30, 2014 and for the Permian Trust’s distribution for the nine-month period ended September 30, 2013, resulting in reduced distributions to the Company on its subordinated units for these periods. | ||||||||||||||||
The following distributions were paid on November 28, 2014 to holders of record as of the close of business on November 14, 2014 (in thousands): | |||||||||||||||||
Royalty Trust | Total Distribution | Amount Distributed to Third-Party Unitholders | |||||||||||||||
Mississippian Trust I | $ | 6,913 | $ | 5,055 | |||||||||||||
Permian Trust | 28,245 | 25,830 | |||||||||||||||
Mississippian Trust II | 14,992 | 12,482 | |||||||||||||||
Total | $ | 50,150 | $ | 43,367 | |||||||||||||
Open Oil and Natural Gas Commodity Derivative Contracts | The tables below present the open oil and natural gas commodity derivative contracts at September 30, 2014 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 Royalty Trust Derivatives Agreements | |||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||
Fixed Price | |||||||||||||||||
October 2014 - December 2014 | 415 | $ | 101.01 | ||||||||||||||
January 2015 - December 2015 | 904 | $ | 97.78 | ||||||||||||||
Natural Gas Collars Underlying the Royalty Trust Derivatives Agreements | |||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||
October 2014 - December 2014 | 236 | $ | 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 2014 - December 2014 | 233 | $ | 100.75 | ||||||||||||||
January 2015 - March 2015 | 141 | $ | 100.9 | ||||||||||||||
Schedule Of Variable Interest Entities Assets Liabilities | 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, 2014 and December 31, 2013 consisted of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cash and cash equivalents(1) | $ | 7,584 | $ | 7,912 | |||||||||||||
Accounts receivable, net | 17,698 | 22,540 | |||||||||||||||
Derivative contracts | 5,991 | 4,983 | |||||||||||||||
Total current assets | 31,273 | 35,435 | |||||||||||||||
Investment in royalty interests(2) | 1,325,942 | 1,325,942 | |||||||||||||||
Less: accumulated depletion and impairment(3) | (272,346 | ) | (186,095 | ) | |||||||||||||
1,053,596 | 1,139,847 | ||||||||||||||||
Derivative contracts | — | 1,476 | |||||||||||||||
Total assets | $ | 1,084,869 | $ | 1,176,758 | |||||||||||||
Accounts payable and accrued expenses | $ | 3,049 | $ | 3,393 | |||||||||||||
Total liabilities | $ | 3,049 | $ | 3,393 | |||||||||||||
____________________ | |||||||||||||||||
-1 | Includes $3.0 million held by the trustee at September 30, 2014 and December 31, 2013 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. | ||||||||||||||||
-3 | Accumulated depletion and impairment at September 30, 2014 includes full cost ceiling limitation impairment allocated to the Royalty Trusts of $42.3 million. There was no full cost ceiling limitation impairment allocated to the Royalty Trusts as of December 31, 2013. | ||||||||||||||||
Royalty Trusts Ownership Interest | The Company’s beneficial interests in the Royalty Trusts at September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Mississippian Trust I | 26.9 | % | 26.9 | % | |||||||||||||
Permian Trust | 25 | % | 28.5 | % | |||||||||||||
Mississippian Trust II | 37.6 | % | 37.6 | % | |||||||||||||
Grey Ranch Plant, L.P | |||||||||||||||||
Variable Interest Entity | |||||||||||||||||
Schedule Of Variable Interest Entities Assets Liabilities | GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheet at December 31, 2013 consisted of the following (in thousands): | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
Cash and cash equivalents | $ | 132 | |||||||||||||||
Accounts receivable, net | 16 | ||||||||||||||||
Prepaid expenses | 32 | ||||||||||||||||
Other current assets | 109 | ||||||||||||||||
Total current assets | 289 | ||||||||||||||||
Other property, plant and equipment, net | 1,163 | ||||||||||||||||
Total assets | $ | 1,452 | |||||||||||||||
Accounts payable and accrued expenses | $ | 129 | |||||||||||||||
Total liabilities | $ | 129 | |||||||||||||||
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, 2014 and December 31, 2013 included in the accompanying unaudited condensed consolidated balance sheets are as follows (in thousands): | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Accounts receivable due from PGC | $ | 1,089 | $ | 741 | |||||||||||||
Accounts payable due to PGC | $ | 4,006 | $ | 3,634 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
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, 2014 | ||||||||||||||||||||
Fair Value Measurements | Netting(1) | Assets/Liabilities at Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Commodity derivative contracts | $ | — | $ | 69,810 | $ | — | $ | — | $ | 69,810 | ||||||||||
Investments | 10,389 | — | — | — | 10,389 | |||||||||||||||
$ | 10,389 | $ | 69,810 | $ | — | $ | — | $ | 80,199 | |||||||||||
Liabilities | ||||||||||||||||||||
Guarantees | $ | — | $ | — | $ | 10,430 | $ | — | $ | 10,430 | ||||||||||
Commodity derivative contracts | — | — | — | — | — | |||||||||||||||
$ | — | $ | — | $ | 10,430 | $ | — | $ | 10,430 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Fair Value Measurements | Netting(1) | Assets/Liabilities at Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Restricted deposits | $ | 27,955 | $ | — | $ | — | $ | — | $ | 27,955 | ||||||||||
Commodity derivative contracts | — | 50,274 | — | (23,369 | ) | 26,905 | ||||||||||||||
Investments | 13,708 | — | — | — | 13,708 | |||||||||||||||
$ | 41,663 | $ | 50,274 | $ | — | $ | (23,369 | ) | $ | 68,568 | ||||||||||
Liabilities | ||||||||||||||||||||
Commodity derivative contracts | $ | — | $ | 78,200 | $ | — | $ | (23,369 | ) | $ | 54,831 | |||||||||
$ | — | $ | 78,200 | $ | — | $ | (23,369 | ) | $ | 54,831 | ||||||||||
____________________ | ||||||||||||||||||||
(1)Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists. | ||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for guarantees during the three and nine-month periods ended September 30, 2014 (in thousands): | |||||||||||||||||||
Level 3 Fair Value Measurements - Guarantees | Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | ||||||||||||||||||
Beginning balance | $ | 12,028 | $ | — | ||||||||||||||||
Issuances(1) | — | 9,446 | ||||||||||||||||||
(Gain) loss on guarantees | (1,598 | ) | 984 | |||||||||||||||||
Ending balance | $ | 10,430 | $ | 10,430 | ||||||||||||||||
____________________ | ||||||||||||||||||||
-1 | Represents the fair value of the guarantees of certain plugging and abandonment obligations on behalf of Fieldwood as of February 25, 2014, the closing date for the sale of the Gulf Properties. | |||||||||||||||||||
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 Level 3 fair value measurements for commodity derivative contracts during the nine-month period ended September 30, 2013 (in thousands): | |||||||||||||||||||
Level 3 Fair Value Measurements - Commodity Derivative Contracts | Nine Months Ended September 30, 2013 | |||||||||||||||||||
Beginning balance | $ | (512 | ) | |||||||||||||||||
Loss on derivative contracts | (133 | ) | ||||||||||||||||||
Settlements paid | 645 | |||||||||||||||||||
Ending balance | $ | — | ||||||||||||||||||
Senior Notes Carrying Amount and Fair Value Table | The estimated fair values and carrying values of the Company’s senior notes at September 30, 2014 and December 31, 2013 were as follows (in thousands): | |||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||||||
8.75% Senior Notes due 2020(1) | $ | 454,500 | $ | 445,232 | $ | 486,000 | $ | 444,736 | ||||||||||||
7.5% Senior Notes due 2021(2) | 1,130,938 | 1,178,598 | 1,230,813 | 1,178,922 | ||||||||||||||||
8.125% Senior Notes due 2022 | 735,000 | 750,000 | 795,000 | 750,000 | ||||||||||||||||
7.5% Senior Notes due 2023(3) | 781,688 | 821,471 | 837,375 | 821,249 | ||||||||||||||||
____________________ | ||||||||||||||||||||
-1 | Carrying value is net of $4,768 and $5,264 discount at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
-2 | Carrying value includes a premium, applicable to notes issued in August 2012, of $3,598 and $3,922 at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
-3 | Carrying value is net of $3,529 and $3,751 discount at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
Fair Value Measurements Level 3 | ||||||||||||||||||||
Fair Value Disclosures | ||||||||||||||||||||
Significant Unobservable Inputs | The significant unobservable input used in the fair value measurement of the Company’s financial guarantee liability at September 30, 2014 is included in the table below (in thousands). | |||||||||||||||||||
Unobservable Input | ||||||||||||||||||||
Estimated future payments for plugging and abandonment | $ | 426,661 | ||||||||||||||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | Property, plant and equipment consists of the following (in thousands): | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Oil and natural gas properties | ||||||||
Proved(1) | $ | 11,252,074 | $ | 10,972,816 | ||||
Unproved | 300,224 | 531,606 | ||||||
Total oil and natural gas properties | 11,552,298 | 11,504,422 | ||||||
Less accumulated depreciation, depletion and impairment | (6,250,457 | ) | (5,762,969 | ) | ||||
Net oil and natural gas properties capitalized costs | 5,301,841 | 5,741,453 | ||||||
Land | 16,300 | 18,423 | ||||||
Non-oil and natural gas equipment(2) | 631,781 | 600,603 | ||||||
Buildings and structures(3) | 255,469 | 233,405 | ||||||
Total | 903,550 | 852,431 | ||||||
Less accumulated depreciation and amortization | (324,686 | ) | (286,209 | ) | ||||
Other property, plant and equipment, net | 578,864 | 566,222 | ||||||
Total property, plant and equipment, net | $ | 5,880,705 | $ | 6,307,675 | ||||
____________________ | ||||||||
-1 | Includes cumulative capitalized interest of approximately $33.9 million and $23.4 million at September 30, 2014 and December 31, 2013, respectively. | |||||||
-2 | Includes cumulative capitalized interest of approximately $4.3 million at both September 30, 2014 and December 31, 2013. | |||||||
-3 | Includes cumulative capitalized interest of approximately $15.8 million and $12.0 million at September 30, 2014 and December 31, 2013, respectively. |
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Other Assets | Other assets consist of the following (in thousands): | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Debt issuance costs, net of amortization | $ | 54,878 | $ | 61,923 | ||||
Investments | 10,389 | 13,708 | ||||||
Deferred tax asset | 7,985 | — | ||||||
Restricted deposits(1) | — | 27,955 | ||||||
Notes receivable on asset retirement obligations(1) | — | 11,640 | ||||||
Other | 3,816 | 5,945 | ||||||
Total other assets | $ | 77,068 | $ | 121,171 | ||||
____________________ | ||||||||
-1 | Assets at December 31, 2013 were included in the sale of the Gulf Properties in February 2014, as discussed in Note 3. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Long-term debt consists of the following (in thousands): | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Senior credit facility | $ | — | $ | — | ||||
Senior notes | ||||||||
8.75% Senior Notes due 2020, net of $4,768 and $5,264 discount, respectively | 445,232 | 444,736 | ||||||
7.5% Senior Notes due 2021, including premium of $3,598 and $3,922, respectively | 1,178,598 | 1,178,922 | ||||||
8.125% Senior Notes due 2022 | 750,000 | 750,000 | ||||||
7.5% Senior Notes due 2023, net of $3,529 and $3,751 discount, respectively | 821,471 | 821,249 | ||||||
Total debt | 3,195,301 | 3,194,907 | ||||||
Less: current maturities of long-term debt | — | — | ||||||
Long-term debt | $ | 3,195,301 | $ | 3,194,907 | ||||
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
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, 2014 and December 31, 2013 on a gross basis without regard to same-counterparty netting (in thousands): | ||||||||||||||||||||
Type of Contract | Balance Sheet Classification | September 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Derivative assets | |||||||||||||||||||||
Oil price swaps | Derivative contracts-current | $ | 29,676 | $ | 15,887 | ||||||||||||||||
Natural gas price swaps | Derivative contracts-current | 8,178 | 1,598 | ||||||||||||||||||
Oil collars - three way | Derivative contracts-current | 15,768 | 706 | ||||||||||||||||||
Natural gas collars | Derivative contracts-current | 297 | 177 | ||||||||||||||||||
Oil price swaps | Derivative contracts-noncurrent | 7,405 | 19,376 | ||||||||||||||||||
Natural gas price swaps | Derivative contracts-noncurrent | 311 | — | ||||||||||||||||||
Oil collars - three way | Derivative contracts-noncurrent | 8,072 | 12,189 | ||||||||||||||||||
Natural gas collars | Derivative contracts-noncurrent | 103 | 341 | ||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||
Oil price swaps | Derivative contracts-current | — | (38,396 | ) | |||||||||||||||||
Natural gas price swaps | Derivative contracts-current | — | (1,460 | ) | |||||||||||||||||
Oil price swaps | Derivative contracts-noncurrent | — | (38,344 | ) | |||||||||||||||||
Total net derivative contracts | $ | 69,810 | $ | (27,926 | ) | ||||||||||||||||
Offsetting Assets and Liabilities | The following tables summarize (i) the Company's derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative liability positions, the applicable portion of shared collateral under the senior credit facility (for SandRidge's derivative contracts) and under liens granted on royalty interests (for the Permian Trust’s and the Mississippian Trust II’s novated derivative contracts) (in thousands): | ||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Amounts Net of Offset | Financial Collateral | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||||
Derivative contracts - current | $ | 53,919 | $ | — | $ | 53,919 | $ | — | $ | 53,919 | |||||||||||
Derivative contracts - noncurrent | 15,891 | — | 15,891 | — | 15,891 | ||||||||||||||||
Total | $ | 69,810 | $ | — | $ | 69,810 | $ | — | $ | 69,810 | |||||||||||
Liabilities | |||||||||||||||||||||
Derivative contracts - current | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Derivative contracts - noncurrent | — | — | — | — | — | ||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
December 31, 2013 | |||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Amounts Net of Offset | Financial Collateral | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||||
Derivative contracts - current | $ | 18,368 | $ | (5,589 | ) | $ | 12,779 | $ | — | $ | 12,779 | ||||||||||
Derivative contracts - noncurrent | 31,906 | (17,780 | ) | 14,126 | — | 14,126 | |||||||||||||||
Total | $ | 50,274 | $ | (23,369 | ) | $ | 26,905 | $ | — | $ | 26,905 | ||||||||||
Liabilities | |||||||||||||||||||||
Derivative contracts - current | $ | 39,856 | $ | (5,589 | ) | $ | 34,267 | $ | (34,267 | ) | $ | — | |||||||||
Derivative contracts - noncurrent | 38,344 | (17,780 | ) | 20,564 | (20,564 | ) | — | ||||||||||||||
Total | $ | 78,200 | $ | (23,369 | ) | $ | 54,831 | $ | (54,831 | ) | $ | — | |||||||||
Open Oil and Natural Gas Commodity Derivative Contracts | At September 30, 2014, the Company’s open commodity derivative contracts consisted of the following: | ||||||||||||||||||||
Oil Price Swaps | |||||||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
October 2014 - December 2014 | 1,115 | $ | 98.78 | ||||||||||||||||||
January 2015 - December 2015 | 5,588 | $ | 92.44 | ||||||||||||||||||
January 2016 - December 2016 | 1,464 | $ | 88.36 | ||||||||||||||||||
Natural Gas Price Swaps | |||||||||||||||||||||
Notional (MMcf) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
October 2014 - December 2014 | 11,040 | $ | 4.31 | ||||||||||||||||||
January 2015 - December 2015 | 15,400 | $ | 4.51 | ||||||||||||||||||
Oil Collars - Three-way | |||||||||||||||||||||
Notional (MBbls) | Sold Put | Purchased Put | Sold Call | ||||||||||||||||||
October 2014 - December 2014 | 2,070 | $70.00 | $90.20 | $100.00 | |||||||||||||||||
January 2015 - December 2015 | 4,576 | $76.56 | $90.28 | $103.48 | |||||||||||||||||
January 2016 - December 2016 | 2,556 | $83.13 | $90.00 | $100.85 | |||||||||||||||||
Natural Gas Collars | |||||||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||||||
October 2014 - December 2014 | 236 | $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, 2014 | ||||
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, 2013 to September 30, 2014 is as follows (in thousands): | |||
Asset retirement obligations at December 31, 2013 | $ | 424,117 | ||
Liability incurred upon acquiring and drilling wells | 3,835 | |||
Revisions in estimated cash flows | (438 | ) | ||
Liability settled or disposed in current period(1) | (377,745 | ) | ||
Accretion | 7,927 | |||
Asset retirement obligations at September 30, 2014 | 57,696 | |||
Less: current portion | — | |||
Asset retirement obligations, net of current | $ | 57,696 | ||
____________________ | ||||
(1) Includes $366.0 million associated with the Gulf Properties sold in February 2014. |
Equity_Tables
Equity (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Preferred Stock Dividends | 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 income available (loss applicable) to the Company’s common stockholders and the Company’s basic income (loss) per share calculation for the three and nine-month periods ended September 30, 2014 and 2013 as presented in the accompanying unaudited condensed consolidated statements of operations, are included in the tables below (in thousands): | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
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 | — | 500 | 500 | 2,500 | 3,000 | ||||||||||||||||||
7.0% Convertible perpetual preferred stock | — | 5,250 | 5,250 | — | 5,250 | 5,250 | ||||||||||||||||||
Total | $ | 3,315 | $ | 8,066 | $ | 11,381 | $ | 3,315 | $ | 10,566 | $ | 13,881 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
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 | — | 6,500 | 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 | $ | 10,691 | $ | 39,144 | $ | 28,453 | $ | 13,191 | $ | 41,644 | ||||||||||||
Treasury Stock | The following table shows the number of shares withheld for taxes and the associated value of those shares for the nine-month periods ended September 30, 2014 and 2013. These shares were accounted for as treasury stock when withheld and then immediately retired. | |||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Number of shares withheld for taxes | 1,004 | 5,604 | ||||||||||||||||||||||
Value of shares withheld for taxes | $ | 6,281 | $ | 29,661 | ||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||
Provision (Benefit) for Income Taxes | The (benefit) provision for income taxes consisted of the following components for the three and nine-month periods ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Current | ||||||||||||||||
Federal | $ | (1,160 | ) | $ | 687 | $ | (1,160 | ) | $ | 4,702 | ||||||
State | 96 | 1,676 | (971 | ) | 2,598 | |||||||||||
(1,064 | ) | 2,363 | (2,131 | ) | 7,300 | |||||||||||
Deferred | ||||||||||||||||
Federal | — | — | — | — | ||||||||||||
State | — | — | — | — | ||||||||||||
— | — | — | — | |||||||||||||
Total (benefit) provision | (1,064 | ) | 2,363 | (2,131 | ) | 7,300 | ||||||||||
Less: income tax provision attributable to noncontrolling interest | 66 | 96 | 236 | 242 | ||||||||||||
Total (benefit) provision attributable to SandRidge Energy, Inc. | $ | (1,130 | ) | $ | 2,267 | $ | (2,367 | ) | $ | 7,058 | ||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings (Loss) Per Share | The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings (loss) per share, for the three and nine-month periods ended September 30, 2014 and 2013: | |||||||||||
Net Income (Loss) | Weighted Average Shares | Earnings (Loss) Per Share | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||
Basic earnings per share | $ | 145,957 | 485,458 | $ | 0.3 | |||||||
Effect of dilutive securities | ||||||||||||
Restricted stock | — | 320 | ||||||||||
Convertible preferred stock | 11,381 | 90,133 | ||||||||||
Diluted earnings per share | $ | 157,338 | 575,911 | $ | 0.27 | |||||||
Three Months Ended September 30, 2013 (Restated) | ||||||||||||
Basic loss per share | $ | (95,328 | ) | $ | 483,582 | $ | (0.20 | ) | ||||
Effect of dilutive securities | ||||||||||||
Restricted stock | — | — | ||||||||||
Convertible preferred stock(2) | — | — | ||||||||||
Diluted loss per share | $ | (95,328 | ) | 483,582 | $ | (0.20 | ) | |||||
Nine Months Ended September 30, 2014 | ||||||||||||
Basic loss per share | $ | (51,036 | ) | 485,194 | $ | (0.11 | ) | |||||
Effect of dilutive securities | ||||||||||||
Restricted stock(1) | — | — | ||||||||||
Convertible preferred stock(2) | — | — | ||||||||||
Diluted loss per share | $ | (51,036 | ) | 485,194 | $ | (0.11 | ) | |||||
Nine Months Ended September 30, 2013 (Restated) | ||||||||||||
Basic loss per share | $ | (638,895 | ) | 480,209 | $ | (1.33 | ) | |||||
Effect of dilutive securities | ||||||||||||
Restricted stock(1) | — | — | ||||||||||
Convertible preferred stock(2) | — | — | ||||||||||
Diluted loss per share | $ | (638,895 | ) | 480,209 | $ | (1.33 | ) | |||||
____________________ | ||||||||||||
-1 | Restricted stock awards covering 2.8 million shares and 1.0 million shares for the nine-month periods ended September 30, 2014 and 2013, respectively, were excluded from the computation of loss per share because their effect would have been antidilutive. | |||||||||||
-2 | Potential common shares related to the Company’s outstanding 8.5%, 6.0% and 7.0% convertible perpetual preferred stock covering 90.1 million shares for the nine-month period ended September 30, 2014 and the three and nine-month periods ended September 30, 2013, were excluded from the computation of loss per share because their effect would have been antidilutive under the if-converted method. |
Performance_Units_Tables
Performance Units (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Performance Units Fair Value Assumptions | The following table presents a summary of the fair value of the performance units and the related assumptions for all outstanding units as of September 30, 2014. | ||||
Expected price volatility range | 21.1 | % | - | 54.30% | |
Weighted-average risk-free interest rate | 0.50% | ||||
Weighted-average fair value per unit | $43.77 |
Business_Segment_Information_T
Business Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
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(1) | Drilling and Oil Field Services(2) | Midstream Services | All Other | Consolidated Total | ||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Revenues | $ | 359,613 | $ | 51,082 | $ | 31,132 | $ | 1,224 | $ | 443,051 | ||||||||||
Inter-segment revenue | — | (29,734 | ) | (19,210 | ) | — | (48,944 | ) | ||||||||||||
Total revenues | $ | 359,613 | $ | 21,348 | $ | 11,922 | $ | 1,224 | $ | 394,107 | ||||||||||
Income (loss) from operations | $ | 275,191 | $ | (1,155 | ) | $ | (3,218 | ) | $ | (14,327 | ) | $ | 256,491 | |||||||
Interest expense | — | — | — | (59,783 | ) | (59,783 | ) | |||||||||||||
Other (expense) income, net | (38 | ) | (89 | ) | 5 | (151 | ) | (273 | ) | |||||||||||
Income (loss) before income taxes | $ | 275,153 | $ | (1,244 | ) | $ | (3,213 | ) | $ | (74,261 | ) | $ | 196,435 | |||||||
Capital expenditures(3) | $ | 435,758 | $ | 3,603 | $ | 14,045 | $ | 14,422 | $ | 467,828 | ||||||||||
Depreciation, depletion, amortization, accretion and impairment | $ | 113,711 | $ | 6,884 | $ | 2,584 | $ | 4,977 | $ | 128,156 | ||||||||||
Three Months Ended September 30, 2013 (Restated) | ||||||||||||||||||||
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 | $ | (19,858 | ) | $ | (8,276 | ) | $ | (7,691 | ) | $ | 33,659 | $ | (2,166 | ) | ||||||
Interest income (expense) | 331 | — | — | (61,716 | ) | (61,385 | ) | |||||||||||||
Other (expense) income, net | (350 | ) | — | (41 | ) | 1,049 | 658 | |||||||||||||
Loss before income taxes | $ | (19,877 | ) | $ | (8,276 | ) | $ | (7,732 | ) | $ | (27,008 | ) | $ | (62,893 | ) | |||||
Capital expenditures(3) | $ | 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 | ||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Revenues | $ | 1,106,883 | $ | 150,054 | $ | 115,846 | $ | 3,299 | $ | 1,376,082 | ||||||||||
Inter-segment revenue | (26 | ) | (92,774 | ) | (71,405 | ) | — | (164,205 | ) | |||||||||||
Total revenues | $ | 1,106,857 | $ | 57,280 | $ | 44,441 | $ | 3,299 | $ | 1,211,877 | ||||||||||
Income (loss) from operations | $ | 288,497 | $ | (6,605 | ) | $ | (6,973 | ) | $ | (58,679 | ) | $ | 216,240 | |||||||
Interest income (expense), net | 138 | — | — | (183,827 | ) | (183,689 | ) | |||||||||||||
Other (expense) income, net | (272 | ) | (561 | ) | 5 | 3,987 | 3,159 | |||||||||||||
Income (loss) before income taxes | $ | 288,363 | $ | (7,166 | ) | $ | (6,968 | ) | $ | (238,519 | ) | $ | 35,710 | |||||||
Capital expenditures(3) | $ | 1,056,568 | $ | 10,877 | $ | 25,810 | $ | 27,282 | $ | 1,120,537 | ||||||||||
Depreciation, depletion, amortization, accretion and impairment | $ | 497,888 | $ | 25,390 | $ | 7,534 | $ | 15,452 | $ | 546,264 | ||||||||||
At September 30, 2014 | ||||||||||||||||||||
Total assets | $ | 5,685,412 | $ | 142,104 | $ | 193,630 | $ | 957,243 | $ | 6,978,389 | ||||||||||
Exploration and Production(1) | Drilling and Oil Field Services(2) | Midstream Services | All Other | Consolidated Total | ||||||||||||||||
Nine Months Ended September 30, 2013(Restated) | ||||||||||||||||||||
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 | $ | (95,927 | ) | $ | (36,684 | ) | $ | (18,106 | ) | $ | (140,545 | ) | $ | (291,262 | ) | |||||
Interest income (expense), net | 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 | $ | (95,013 | ) | $ | (36,684 | ) | $ | (19,020 | ) | $ | (429,841 | ) | $ | (580,558 | ) | |||||
Capital expenditures(3) | $ | 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 December 31, 2013 | ||||||||||||||||||||
Total assets | $ | 6,157,225 | $ | 158,737 | $ | 188,165 | $ | 1,180,668 | $ | 7,684,795 | ||||||||||
____________________ | ||||||||||||||||||||
-1 | Income (loss) from operations includes a full cost ceiling limitation impairment of $164.8 million for the nine-month period ended September 30, 2014, and a loss on the sale of the Permian Properties of $398.9 million for the nine-month period ended September 30, 2013. | |||||||||||||||||||
-2 | Income (loss) from operations includes an impairment of $3.1 million and $11.1 million on certain drilling assets held for sale for the nine-month periods ended September 30, 2014 and September 30, 2013, respectively. | |||||||||||||||||||
-3 | On an accrual basis and exclusive of acquisitions. |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Condensed Consolidating Financial Statements Disclosure [Abstract] | ||||||||||||||||||||||
Unaudited Condensed Consolidating Balance Sheets of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors | Condensed Consolidating Balance Sheets | |||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Current assets | ||||||||||||||||||||||
Cash and cash equivalents | $ | 580,697 | $ | 1,796 | $ | 7,753 | $ | — | $ | 590,246 | ||||||||||||
Accounts receivable, net | 2,372 | 311,667 | 18,876 | (2,372 | ) | 330,543 | ||||||||||||||||
Intercompany accounts receivable | 480,898 | 1,341,756 | 51,433 | (1,874,087 | ) | — | ||||||||||||||||
Derivative contracts | — | 47,929 | 15,835 | (9,845 | ) | 53,919 | ||||||||||||||||
Prepaid expenses | — | 6,782 | 12 | — | 6,794 | |||||||||||||||||
Other current assets | — | 23,206 | 17 | — | 23,223 | |||||||||||||||||
Total current assets | 1,063,967 | 1,733,136 | 93,926 | (1,886,304 | ) | 1,004,725 | ||||||||||||||||
Property, plant and equipment, net | — | 4,790,902 | 1,089,803 | — | 5,880,705 | |||||||||||||||||
Investment in subsidiaries | 6,245,116 | 21,021 | — | (6,266,137 | ) | — | ||||||||||||||||
Derivative contracts | — | 15,891 | 1,980 | (1,980 | ) | 15,891 | ||||||||||||||||
Other assets | 62,863 | 19,403 | 704 | (5,902 | ) | 77,068 | ||||||||||||||||
Total assets | $ | 7,371,946 | $ | 6,580,353 | $ | 1,186,413 | $ | (8,160,323 | ) | $ | 6,978,389 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 163,774 | $ | 486,207 | $ | 5,040 | $ | (2,372 | ) | $ | 652,649 | |||||||||||
Intercompany accounts payable | 1,335,071 | 503,580 | 35,436 | (1,874,087 | ) | — | ||||||||||||||||
Derivative contracts | — | 9,845 | — | (9,845 | ) | — | ||||||||||||||||
Other current liabilities | 7,985 | 10,564 | — | — | 18,549 | |||||||||||||||||
Total current liabilities | 1,506,830 | 1,010,196 | 40,476 | (1,886,304 | ) | 671,198 | ||||||||||||||||
Investment in subsidiaries | 892,524 | 141,566 | — | (1,034,090 | ) | — | ||||||||||||||||
Long-term debt | 3,201,203 | — | — | (5,902 | ) | 3,195,301 | ||||||||||||||||
Derivative contracts | — | 1,980 | — | (1,980 | ) | — | ||||||||||||||||
Asset retirement obligations | — | 57,696 | — | — | 57,696 | |||||||||||||||||
Other long-term obligations | 95 | 16,323 | — | — | 16,418 | |||||||||||||||||
Total liabilities | 5,600,652 | 1,227,761 | 40,476 | (2,928,276 | ) | 3,940,613 | ||||||||||||||||
Equity | ||||||||||||||||||||||
SandRidge Energy, Inc. stockholders’ equity | 1,771,294 | 5,352,592 | 1,145,937 | (6,498,529 | ) | 1,771,294 | ||||||||||||||||
Noncontrolling interest | — | — | — | 1,266,482 | 1,266,482 | |||||||||||||||||
Total equity | 1,771,294 | 5,352,592 | 1,145,937 | (5,232,047 | ) | 3,037,776 | ||||||||||||||||
Total liabilities and equity | $ | 7,371,946 | $ | 6,580,353 | $ | 1,186,413 | $ | (8,160,323 | ) | $ | 6,978,389 | |||||||||||
December 31, 2013 (Revised) | ||||||||||||||||||||||
Parent(1) | Guarantors(2) | Non-Guarantors | Eliminations(1)(2) | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Current assets | ||||||||||||||||||||||
Cash and cash equivalents | $ | 805,505 | $ | 1,013 | $ | 8,145 | $ | — | $ | 814,663 | ||||||||||||
Accounts receivable, net | — | 326,345 | 22,873 | — | 349,218 | |||||||||||||||||
Intercompany accounts receivable | 153,325 | 982,524 | 70,107 | (1,205,956 | ) | — | ||||||||||||||||
Derivative contracts | — | 7,796 | 14,748 | (9,765 | ) | 12,779 | ||||||||||||||||
Prepaid expenses | — | 39,165 | 88 | — | 39,253 | |||||||||||||||||
Other current assets | 1,376 | 24,410 | 124 | — | 25,910 | |||||||||||||||||
Total current assets | 960,206 | 1,381,253 | 116,085 | (1,215,721 | ) | 1,241,823 | ||||||||||||||||
Property, plant and equipment, net | — | 5,125,543 | 1,182,132 | — | 6,307,675 | |||||||||||||||||
Investment in subsidiaries | 6,009,603 | 49,418 | — | (6,059,021 | ) | — | ||||||||||||||||
Derivative contracts | — | 12,650 | 9,585 | (8,109 | ) | 14,126 | ||||||||||||||||
Other assets | 61,923 | 65,123 | 27 | (5,902 | ) | 121,171 | ||||||||||||||||
Total assets | $ | 7,031,732 | $ | 6,633,987 | $ | 1,307,829 | $ | (7,288,753 | ) | $ | 7,684,795 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 207,572 | $ | 601,074 | $ | 3,842 | $ | — | $ | 812,488 | ||||||||||||
Intercompany accounts payable | 967,365 | 181,573 | 57,018 | (1,205,956 | ) | — | ||||||||||||||||
Derivative contracts | — | 44,032 | — | (9,765 | ) | 34,267 | ||||||||||||||||
Asset retirement obligations | — | 87,063 | — | — | 87,063 | |||||||||||||||||
Total current liabilities | 1,174,937 | 913,742 | 60,860 | (1,215,721 | ) | 933,818 | ||||||||||||||||
Investment in subsidiaries | 828,794 | 152,266 | — | (981,060 | ) | — | ||||||||||||||||
Long-term debt | 3,200,809 | — | — | (5,902 | ) | 3,194,907 | ||||||||||||||||
Derivative contracts | — | 28,673 | — | (8,109 | ) | 20,564 | ||||||||||||||||
Asset retirement obligations | — | 337,054 | — | — | 337,054 | |||||||||||||||||
Other long-term obligations | 1,382 | 21,443 | — | — | 22,825 | |||||||||||||||||
Total liabilities | 5,205,922 | 1,453,178 | 60,860 | (2,210,792 | ) | 4,509,168 | ||||||||||||||||
Equity | ||||||||||||||||||||||
SandRidge Energy, Inc. stockholders’ equity | 1,825,810 | 5,180,809 | 1,246,969 | (6,427,778 | ) | 1,825,810 | ||||||||||||||||
Noncontrolling interest | — | — | — | 1,349,817 | 1,349,817 | |||||||||||||||||
Total equity | 1,825,810 | 5,180,809 | 1,246,969 | (5,077,961 | ) | 3,175,627 | ||||||||||||||||
Total liabilities and equity | $ | 7,031,732 | $ | 6,633,987 | $ | 1,307,829 | $ | (7,288,753 | ) | $ | 7,684,795 | |||||||||||
____________________ | ||||||||||||||||||||||
-1 | Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $828.8 million, as liabilities and to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to Guarantor full cost pool (property, plant and equipment, net) and a reduction to Parent equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements. | |||||||||||||||||||||
-2 | Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $152.3 million, as liabilities. Property, plant and equipment, net has been revised to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to the Guarantor full cost pool (property, plant and equipment, net) and a reduction to Guarantor equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements. | |||||||||||||||||||||
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, 2014 | ||||||||||||||||||||||
Total revenues | $ | — | $ | 340,563 | $ | 53,544 | $ | — | $ | 394,107 | ||||||||||||
Expenses | ||||||||||||||||||||||
Direct operating expenses | — | 113,774 | 3,672 | — | 117,446 | |||||||||||||||||
General and administrative | 57 | 23,764 | 768 | — | 24,589 | |||||||||||||||||
Depreciation, depletion, amortization and accretion | — | 113,649 | 14,453 | — | 128,102 | |||||||||||||||||
Impairment | — | 54 | — | — | 54 | |||||||||||||||||
Gain on derivative contracts | — | (110,355 | ) | (22,220 | ) | — | (132,575 | ) | ||||||||||||||
Total expenses | 57 | 140,886 | (3,327 | ) | — | 137,616 | ||||||||||||||||
(Loss) income from operations | (57 | ) | 199,677 | 56,871 | — | 256,491 | ||||||||||||||||
Equity earnings from subsidiaries | 216,026 | 16,622 | — | (232,648 | ) | — | ||||||||||||||||
Interest expense | (59,783 | ) | — | — | — | (59,783 | ) | |||||||||||||||
Other expense, net | — | (273 | ) | — | — | (273 | ) | |||||||||||||||
Income before income taxes | 156,186 | 216,026 | 56,871 | (232,648 | ) | 196,435 | ||||||||||||||||
Income tax (benefit) expense | (1,152 | ) | — | 88 | — | (1,064 | ) | |||||||||||||||
Net income | 157,338 | 216,026 | 56,783 | (232,648 | ) | 197,499 | ||||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 40,161 | 40,161 | |||||||||||||||||
Net income attributable to SandRidge Energy, Inc. | $ | 157,338 | $ | 216,026 | $ | 56,783 | $ | (272,809 | ) | $ | 157,338 | |||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Three Months Ended September 30, 2013 (Restated) | ||||||||||||||||||||||
Total revenues | $ | — | $ | 411,847 | $ | 81,830 | $ | (74 | ) | $ | 493,603 | |||||||||||
Expenses | ||||||||||||||||||||||
Direct operating expenses(1) | — | 154,175 | 6,283 | (74 | ) | 160,384 | ||||||||||||||||
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 | |||||||||||||||||
Loss (gain) on sale of assets | — | 900 | (361 | ) | — | 539 | ||||||||||||||||
Total expenses(1) | 83 | 438,049 | 57,711 | (74 | ) | 495,769 | ||||||||||||||||
(Loss) income from operations(1) | (83 | ) | (26,202 | ) | 24,119 | — | (2,166 | ) | ||||||||||||||
Equity earnings from subsidiaries | (17,420 | ) | 7,803 | — | 9,617 | — | ||||||||||||||||
Interest (expense) income | (61,716 | ) | 331 | — | — | (61,385 | ) | |||||||||||||||
Other income, net | — | 648 | 10 | — | 658 | |||||||||||||||||
(Loss) income before income taxes(1) | (79,219 | ) | (17,420 | ) | 24,129 | 9,617 | (62,893 | ) | ||||||||||||||
Income tax expense | 2,228 | — | 135 | — | 2,363 | |||||||||||||||||
Net (loss) income(1) | (81,447 | ) | (17,420 | ) | 23,994 | 9,617 | (65,256 | ) | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 16,191 | 16,191 | |||||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc.(1) | $ | (81,447 | ) | $ | (17,420 | ) | $ | 23,994 | $ | (6,574 | ) | $ | (81,447 | ) | ||||||||
____________________ | ||||||||||||||||||||||
-1 | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. | |||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||
Total revenues | $ | — | $ | 1,034,133 | $ | 177,843 | $ | (99 | ) | $ | 1,211,877 | |||||||||||
Expenses | ||||||||||||||||||||||
Direct operating expenses | — | 345,809 | 13,413 | (99 | ) | 359,123 | ||||||||||||||||
General and administrative | 277 | 91,190 | 3,575 | — | 95,042 | |||||||||||||||||
Depreciation, depletion, amortization and accretion | — | 333,463 | 44,835 | — | 378,298 | |||||||||||||||||
Impairment | — | 125,653 | 42,313 | — | 167,966 | |||||||||||||||||
(Gain) loss on derivative contracts | — | (8,744 | ) | 3,952 | — | (4,792 | ) | |||||||||||||||
Total expenses | 277 | 887,371 | 108,088 | (99 | ) | 995,637 | ||||||||||||||||
(Loss) income from operations | (277 | ) | 146,762 | 69,755 | — | 216,240 | ||||||||||||||||
Equity earnings from subsidiaries | 169,766 | 19,707 | — | (189,473 | ) | — | ||||||||||||||||
Interest (expense) income | (183,827 | ) | 138 | — | — | (183,689 | ) | |||||||||||||||
Other income, net | — | 3,159 | — | — | 3,159 | |||||||||||||||||
(Loss) income before income taxes | (14,338 | ) | 169,766 | 69,755 | (189,473 | ) | 35,710 | |||||||||||||||
Income tax (benefit) expense | (2,446 | ) | — | 315 | — | (2,131 | ) | |||||||||||||||
Net (loss) income | (11,892 | ) | 169,766 | 69,440 | (189,473 | ) | 37,841 | |||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 49,733 | 49,733 | |||||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc. | $ | (11,892 | ) | $ | 169,766 | $ | 69,440 | $ | (239,206 | ) | $ | (11,892 | ) | |||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Nine Months Ended September 30, 2013 (Restated) | ||||||||||||||||||||||
Total revenues | $ | — | $ | 1,277,289 | $ | 241,314 | $ | (323 | ) | $ | 1,518,280 | |||||||||||
Expenses | ||||||||||||||||||||||
Direct operating expenses(1) | — | 499,027 | 24,671 | (323 | ) | 523,375 | ||||||||||||||||
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(1) | 258 | 1,578,126 | 231,481 | — | (323 | ) | — | 1,809,542 | ||||||||||||||
(Loss) income from operations(1) | (258 | ) | (300,837 | ) | 9,833 | — | (291,262 | ) | ||||||||||||||
Equity earnings from subsidiaries | (298,822 | ) | (606 | ) | — | 299,428 | — | |||||||||||||||
Interest (expense) income | (209,211 | ) | 757 | — | — | (208,454 | ) | |||||||||||||||
Loss on extinguishment of debt | (82,005 | ) | — | — | — | (82,005 | ) | |||||||||||||||
Other income (expense), net | — | 1,864 | (701 | ) | — | 1,163 | ||||||||||||||||
(Loss) income before income taxes(1) | (590,296 | ) | (298,822 | ) | 9,132 | 299,428 | (580,558 | ) | ||||||||||||||
Income tax expense | 6,955 | — | 345 | — | 7,300 | |||||||||||||||||
Net (loss) income(1) | (597,251 | ) | (298,822 | ) | 8,787 | 299,428 | (587,858 | ) | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 9,393 | 9,393 | |||||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc.(1) | $ | (597,251 | ) | $ | (298,822 | ) | $ | 8,787 | $ | 290,035 | $ | (597,251 | ) | |||||||||
____________________ | ||||||||||||||||||||||
-1 | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. | |||||||||||||||||||||
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, 2014 | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 173,597 | $ | 49,777 | $ | 178,603 | $ | (6,293 | ) | $ | 395,684 | |||||||||||
Cash flows from investing activities | ||||||||||||||||||||||
Capital expenditures for property, plant, and equipment | — | (1,071,465 | ) | — | — | (1,071,465 | ) | |||||||||||||||
Proceeds from sale of assets | — | 711,547 | 2,747 | — | 714,294 | |||||||||||||||||
Other | — | (146,274 | ) | 1,061 | 128,293 | (16,920 | ) | |||||||||||||||
Net cash (used in) provided by | — | (506,192 | ) | 3,808 | 128,293 | (374,091 | ) | |||||||||||||||
investing activities | ||||||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||
Distributions to unitholders | — | — | (184,176 | ) | 33,736 | (150,440 | ) | |||||||||||||||
Intercompany (advances) borrowings, net | (327,573 | ) | 327,459 | 114 | — | — | ||||||||||||||||
Other | (70,832 | ) | 129,739 | 1,259 | (155,736 | ) | (95,570 | ) | ||||||||||||||
Net cash (used in) provided by | (398,405 | ) | 457,198 | (182,803 | ) | (122,000 | ) | (246,010 | ) | |||||||||||||
financing activities | ||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (224,808 | ) | 783 | (392 | ) | — | (224,417 | ) | ||||||||||||||
Cash and cash equivalents at beginning of year | 805,505 | 1,013 | 8,145 | — | 814,663 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 580,697 | $ | 1,796 | $ | 7,753 | $ | — | $ | 590,246 | ||||||||||||
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 | ) | |||||||||||||||
Distribution 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 | ||||||||||||
Subsequent_Events_Tables
Subsequent Events (Tables) (Royalty Trusts) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Royalty Trusts | |||||||||||||||||
Subsequent Event | |||||||||||||||||
Royalty Trust Distributions | The Royalty Trusts declared and paid quarterly distributions during the three and nine-month periods ended September 30, 2014 and 2013 as follows (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014(1) | 2013(1) | 2014(2) | 2013(2) | ||||||||||||||
Total distributions | $ | 56,191 | $ | 81,594 | $ | 184,176 | $ | 226,404 | |||||||||
Distributions to third-party unitholders | $ | 47,298 | $ | 54,287 | $ | 150,440 | $ | 153,002 | |||||||||
____________________ | |||||||||||||||||
-1 | Subordination thresholds were not met for the Mississippian Trust I’s distributions for the three-month periods ended September 30, 2014 and 2013 and for the Mississippian Trust II’s distributions for the three-month period ended September 30, 2014, resulting in reduced distributions to the Company on its subordinated units for these periods. | ||||||||||||||||
-2 | Subordination thresholds were not met for the Mississippian Trust I’s distributions for the nine-month period ended September 30, 2014 and for the Permian Trust’s distribution for the nine-month period ended September 30, 2013, resulting in reduced distributions to the Company on its subordinated units for these periods. | ||||||||||||||||
The following distributions were paid on November 28, 2014 to holders of record as of the close of business on November 14, 2014 (in thousands): | |||||||||||||||||
Royalty Trust | Total Distribution | Amount Distributed to Third-Party Unitholders | |||||||||||||||
Mississippian Trust I | $ | 6,913 | $ | 5,055 | |||||||||||||
Permian Trust | 28,245 | 25,830 | |||||||||||||||
Mississippian Trust II | 14,992 | 12,482 | |||||||||||||||
Total | $ | 50,150 | $ | 43,367 | |||||||||||||
Restatement_of_Previously_Issu2
Restatement of Previously Issued Financial Statements - Condensed Consolidated Statements of Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Condensed Consolidated Statements of Operations | |||||||
Production | $82,664,000 | $124,571,000 | $256,473,000 | $389,911,000 | |||
Total expenses | 137,616,000 | 495,769,000 | [1] | 995,637,000 | 1,809,542,000 | [1] | |
Income (loss) from operations | 256,491,000 | -2,166,000 | [1] | 216,240,000 | -291,262,000 | [1] | |
(Loss) before income taxes | 196,435,000 | -62,893,000 | [1] | 35,710,000 | -580,558,000 | [1] | |
Net (loss) income | 197,499,000 | -65,256,000 | [1] | 37,841,000 | -587,858,000 | [1] | |
Net loss attributable to SandRidge Energy, Inc. | 157,338,000 | -81,447,000 | [1] | -11,892,000 | -597,251,000 | [1] | |
Loss applicable to SandRidge Energy, Inc. common stockholders | 145,957,000 | -95,328,000 | -51,036,000 | -638,895,000 | |||
Loss per share | |||||||
Basic (in dollars per share) | $0.30 | ($0.20) | ($0.11) | ($1.33) | |||
Diluted (in dollars per share) | $0.27 | ($0.20) | ($0.11) | ($1.33) | |||
Treating Agreement | |||||||
Contract agreement, term | 30 years | ||||||
Shortfall amount accrued | 8,600,000 | 32,700,000 | 8,300,000 | 25,300,000 | 24,300,000 | ||
Restatement Adjustment | |||||||
Shortfall amount accrued | 8,300,000 | 24,300,000 | |||||
As Reported | |||||||
Condensed Consolidated Statements of Operations | |||||||
Production | 116,317,000 | 365,629,000 | |||||
Total expenses | 487,515,000 | 1,785,260,000 | |||||
Income (loss) from operations | 6,088,000 | -266,980,000 | |||||
(Loss) before income taxes | -54,639,000 | -556,276,000 | |||||
Net (loss) income | -57,002,000 | -563,576,000 | |||||
Net loss attributable to SandRidge Energy, Inc. | -73,193,000 | -572,969,000 | |||||
Loss applicable to SandRidge Energy, Inc. common stockholders | ($87,074,000) | ($614,613,000) | |||||
Loss per share | |||||||
Basic (in dollars per share) | ($0.18) | ($1.28) | |||||
Diluted (in dollars per share) | ($0.18) | ($1.28) | |||||
[1] | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. |
Restatement_of_Previously_Issu3
Restatement of Previously Issued Financial Statements - Condensed Consolidated Statement of Cash Flows (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Statement of Cash Flows [Abstract] | ||||||
Net (loss) | $197,499 | ($65,256) | [1] | $37,841 | ($587,858) | [1] |
Changes in operating assets and liabilities | -157,615 | 31,150 | ||||
As Reported | ||||||
Statement of Cash Flows [Abstract] | ||||||
Net (loss) | -57,002 | -563,576 | ||||
Changes in operating assets and liabilities | $6,868 | |||||
[1] | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. |
Restatement_of_Previously_Issu4
Restatement of Previously Issued Financial Statements - Condensed Consolidated Balance Sheet (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Costs in excess of billings and contract loss | $0 | |
Other current assets | 23,223 | 25,910 |
As Reported | ||
Costs in excess of billings and contract loss | 4,079 | |
Other current assets | $21,831 |
Divestitures_Permian_Propertie
Divestitures - Permian Properties Disposal - Revenue and Expense Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Disposal, Revenue and Expense Information | ||||||
Revenues | $394,107 | $493,603 | $1,211,877 | $1,518,280 | ||
Direct operating expenses | 117,446 | 160,384 | [1] | 359,123 | 523,375 | [1] |
Permian Properties | ||||||
Disposal, Revenue and Expense Information | ||||||
Revenues | 68,027 | [2] | ||||
Direct operating expenses | $17,453 | [2] | ||||
[1] | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. | |||||
[2] | Includes revenues and direct operating expenses through February 26, 2013, the date of sale. |
Divestitures_Gulf_Properties_D
Divestitures - Gulf Properties Disposal - Revenue and Expense Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Disposal, Revenue and Expense Information | |||||||
Revenues | $394,107 | $493,603 | $1,211,877 | $1,518,280 | |||
Expenses | 137,616 | 495,769 | [1] | 995,637 | 1,809,542 | [1] | |
Gulf Properties | |||||||
Disposal, Revenue and Expense Information | |||||||
Revenues | 153,315 | 90,920 | [2] | 498,590 | |||
Expenses | $126,137 | $63,674 | [2] | $377,529 | |||
[1] | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. | ||||||
[2] | Includes revenues and expenses through February 25, 2014, the date of the sale. |
Divestitures_Additional_Inform
Divestitures - Additional Information (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Feb. 26, 2013 | Sep. 30, 2013 | Feb. 25, 2014 | Sep. 30, 2014 |
Permian Properties | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of oil and natural gas properties | $2,600 | |||
Gain (loss) on sale of oil and gas property | -398.9 | |||
Permian Properties | Noncontrolling Interest | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on sale of oil and gas property | -71.7 | |||
Gulf Properties | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of oil and natural gas properties | 702.6 | |||
Gain (loss) on sale of oil and gas property | 0 | |||
Contingent consideration, liability | 9.4 | 10.4 | ||
Restricted deposits | 28 | |||
Consideration receivable, current | 14 | |||
Gulf Properties | Asset Retirement Obligations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset retirement obligations assumed | $366 |
Variable_Interest_Entities_Roy
Variable Interest Entities - Royalty Trusts - Outstanding Units (Details) | 9 Months Ended | |
Sep. 30, 2014 | ||
Mississippian Trust I | ||
Variable Interest Entity | ||
Total outstanding common units (in shares) | 28,000,000 | [1] |
Total outstanding subordinated units (in shares) | 0 | [1] |
Liquidation date | 31-Dec-30 | [2] |
Permian Trust | ||
Variable Interest Entity | ||
Total outstanding common units (in shares) | 39,375,000 | [1] |
Total outstanding subordinated units (in shares) | 13,125,000 | [1] |
Liquidation date | 31-Mar-31 | [2] |
Mississippian Trust II | ||
Variable Interest Entity | ||
Total outstanding common units (in shares) | 37,293,750 | [1] |
Total outstanding subordinated units (in shares) | 12,431,250 | [1] |
Liquidation date | 31-Dec-31 | [2] |
[1] | The Mississippian Trust I’s previously outstanding subordinated units, all of which were held by SandRidge, converted to common units on July 1, 2014. | |
[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 - Outstanding Units (Parenthetical) (Details) (Royalty Trusts) | 9 Months Ended |
Sep. 30, 2014 | |
Royalty Trusts | |
Variable Interest Entity | |
Percentage of royalty interest | 50.00% |
Percentage of royalty interest sold | 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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Variable Interest Entity | ||||||||
Distributions to third-party unitholders | $150,440 | $153,002 | ||||||
Royalty Trusts | ||||||||
Variable Interest Entity | ||||||||
Total distributions | 56,191 | [1] | 81,594 | [1] | 184,176 | [2] | 226,404 | [2] |
Distributions to third-party unitholders | $47,298 | [1] | $54,287 | [1] | $150,440 | [2] | $153,002 | [2] |
[1] | Subordination thresholds were not met for the Mississippian Trust I’s distributions for the three-month periods ended September 30, 2014 and 2013 and for the Mississippian Trust II’s distributions for the three-month period ended September 30, 2014, resulting in reduced distributions to the Company on its subordinated units for these periods. | |||||||
[2] | Subordination thresholds were not met for the Mississippian Trust I’s distributions for the nine-month period ended September 30, 2014 and for the Permian Trust’s distribution for the nine-month period ended September 30, 2013, resulting in reduced distributions to the Company on its subordinated units for these periods. |
Variable_Interest_Entities_Roy3
Variable Interest Entities - Royalty Trusts - Open Oil and Natural Gas Commodity Derivative Contracts (Details) | 9 Months Ended |
Sep. 30, 2014 | |
MBbls | |
Oil Price Swaps | October 2014 - December 2014 | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 1,115 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 98.78 |
Oil Price Swaps | January 2015 - December 2015 | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 5,588 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 92.44 |
Natural Gas Collars | October 2014 - December 2014 | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 236 |
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 2014 - December 2014 | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 415 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 101.01 |
Royalty Trusts | Oil Price Swaps | January 2015 - December 2015 | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 904 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 97.78 |
Royalty Trusts | Oil Price Swaps | Novated Contract | October 2014 - December 2014 | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 233 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 100.75 |
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 2014 - December 2014 | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 236 |
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 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | ||
Variable Interest Entity | ||||||
Cash and cash equivalents | $590,246,000 | $814,663,000 | $920,257,000 | $309,766,000 | ||
Accounts receivable, net | 330,543,000 | 349,218,000 | ||||
Derivative contracts | 53,919,000 | 12,779,000 | ||||
Total current assets | 1,004,725,000 | 1,241,823,000 | ||||
Investment in royalty interests | 11,552,298,000 | 11,504,422,000 | ||||
Less: accumulated depletion and impairment | -6,250,457,000 | -5,762,969,000 | ||||
Net oil and natural gas properties capitalized costs | 5,301,841,000 | 5,741,453,000 | ||||
Derivative contracts | 15,891,000 | 14,126,000 | ||||
Accounts payable and accrued expenses | 652,649,000 | 812,488,000 | ||||
Royalty Trusts | ||||||
Variable Interest Entity | ||||||
Cash and cash equivalents | 7,584,000 | [1] | 7,912,000 | [1] | ||
Accounts receivable, net | 17,698,000 | 22,540,000 | ||||
Derivative contracts | 5,991,000 | 4,983,000 | ||||
Total current assets | 31,273,000 | 35,435,000 | ||||
Investment in royalty interests | 1,325,942,000 | [2] | 1,325,942,000 | [2] | ||
Less: accumulated depletion and impairment | -272,346,000 | [3] | -186,095,000 | [3] | ||
Net oil and natural gas properties capitalized costs | 1,053,596,000 | 1,139,847,000 | ||||
Derivative contracts | 0 | 1,476,000 | ||||
Total assets | 1,084,869,000 | 1,176,758,000 | ||||
Accounts payable and accrued expenses | 3,049,000 | 3,393,000 | ||||
Total liabilities | $3,049,000 | $3,393,000 | ||||
[1] | Includes $3.0 million held by the trustee at September 30, 2014 and December 31, 2013 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. | |||||
[3] | Accumulated depletion and impairment at September 30, 2014 includes full cost ceiling limitation impairment allocated to the Royalty Trusts of $42.3 million. There was no full cost ceiling limitation impairment allocated to the Royalty Trusts as of December 31, 2013. |
Variable_Interest_Entities_Roy5
Variable Interest Entities - Royalty Trusts - Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Variable Interest Entity | ||
Cumulative full cost ceiling limitation impairment | $3,700 | $3,500 |
Royalty Trusts | ||
Variable Interest Entity | ||
Reserves for expenses | 3 | 3 |
Cumulative full cost ceiling limitation impairment | $42.30 | $0 |
Variable_Interest_Entities_Roy6
Variable Interest Entities - Royalty Trusts - Ownership Interest (Details) | Sep. 30, 2014 | Dec. 31, 2013 |
Mississippian Trust I | ||
Variable Interest Entity | ||
Beneficial interest owned by Company | 26.90% | 26.90% |
Permian Trust | ||
Variable Interest Entity | ||
Beneficial interest owned by Company | 25.00% | 28.50% |
Mississippian Trust II | ||
Variable Interest Entity | ||
Beneficial interest owned by Company | 37.60% | 37.60% |
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, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Variable Interest Entity | ||||
Cash and cash equivalents | $590,246,000 | $814,663,000 | $920,257,000 | $309,766,000 |
Accounts receivable, net | 330,543,000 | 349,218,000 | ||
Prepaid expenses | 6,794,000 | 39,253,000 | ||
Other current assets | 23,223,000 | 25,910,000 | ||
Total current assets | 1,004,725,000 | 1,241,823,000 | ||
Other property, plant and equipment, net | 578,864,000 | 566,222,000 | ||
Accounts payable and accrued expenses | 652,649,000 | 812,488,000 | ||
Grey Ranch Plant, L.P | ||||
Variable Interest Entity | ||||
Cash and cash equivalents | 132,000 | |||
Accounts receivable, net | 16,000 | |||
Prepaid expenses | 32,000 | |||
Other current assets | 109,000 | |||
Total current assets | 289,000 | |||
Other property, plant and equipment, net | 1,163,000 | |||
Total assets | 1,452,000 | |||
Accounts payable and accrued expenses | 129,000 | |||
Total liabilities | $129,000 |
Variable_Interest_Entities_PGC
Variable Interest Entities - PGC - Amounts due to/from the Company (Details) (Pinon Gathering Company LLC, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pinon Gathering Company LLC | ||
Variable Interest Entity | ||
Accounts receivable due from PGC | $1,089 | $741 |
Accounts payable due to PGC | $4,006 | $3,634 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Details) (USD $) | 9 Months Ended | 1 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2011 | Aug. 31, 2011 | Apr. 30, 2012 | Dec. 31, 2013 | Mar. 31, 2014 | |
Variable Interest Entity | |||||||
Proceeds from sale of royalty trust units | $22,119,000 | $28,985,000 | |||||
Royalty Trusts | |||||||
Variable Interest Entity | |||||||
Percentage of subordinated units to total units | 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 made with respect to the subordinated units is 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% | ||||||
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 | |||||
Maximum amount recoverable by trusts under the lien | 31,600,000 | ||||||
Noncontrolling interest | 1,300,000,000 | 1,300,000,000 | |||||
Proceeds from sale of royalty trust units | 22,100,000 | ||||||
Liabilities | 3,049,000 | 3,393,000 | |||||
Grey Ranch Plant, L.P | |||||||
Variable Interest Entity | |||||||
Beneficial interest owned by Company | 50.00% | ||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 50.00% | ||||||
Company purchase of noncontrolling interest, percentage | 50.00% | ||||||
Noncontrolling interest, limited partnerships | 700,000 | ||||||
Liabilities | 129,000 | ||||||
Grey Ranch Plant Genpar, LLC ("Genpar") | |||||||
Variable Interest Entity | |||||||
Beneficial interest owned by Company | 50.00% | ||||||
Company purchase of noncontrolling interest, percentage | 50.00% | ||||||
Percentage ownership of another VIE | 1.00% | ||||||
Liabilities | $0 | ||||||
Mississippian Trust I | |||||||
Variable Interest Entity | |||||||
Royalty trust IPO date | Apr-11 | ||||||
Development period deadline under development agreement | 31-Dec-15 | ||||||
Period drilling obligation to Royalty Trust fulfilled | second quarter of 2013 | ||||||
Beneficial interest owned by Company | 26.90% | 26.90% | |||||
Permian Trust | |||||||
Variable Interest Entity | |||||||
Royalty trust IPO date | Aug-11 | ||||||
Development period deadline under development agreement | 31-Mar-16 | ||||||
Beneficial interest owned by Company | 25.00% | 28.50% | |||||
Mississippian Trust II | |||||||
Variable Interest Entity | |||||||
Royalty trust IPO date | Apr-12 | ||||||
Development period deadline under development agreement | 31-Dec-16 | ||||||
Beneficial interest owned by Company | 37.60% | 37.60% | |||||
Gas Gathering Agreement | Pinon Gathering Company LLC | |||||||
Variable Interest Entity | |||||||
Gas gathering and operations and maintenance agreement end date | 30-Jun-29 |
Fair_Value_Measurements_Signif
Fair Value Measurements - Significant Unobservable Inputs (Details) (Gulf Properties, Fair Value Measurements Level 3, USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Gulf Properties | Fair Value Measurements Level 3 | |
Significant Unobservable Inputs | |
Estimated future payments for plugging and abandonment | $426,661 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | $80,199 | $68,568 | ||
Liabilities measured at fair value | 10,430 | 54,831 | ||
Restricted deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 27,955 | |||
Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 69,810 | 26,905 | ||
Liabilities measured at fair value | 0 | 54,831 | ||
Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 10,389 | 13,708 | ||
Guarantees | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Liabilities measured at fair value | 10,430 | |||
Fair Value Measurements Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 10,389 | 41,663 | ||
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 | 0 | 27,955 | ||
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 | 10,389 | 13,708 | ||
Fair Value Measurements Level 1 | Guarantees | ||||
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 | 69,810 | 50,274 | ||
Liabilities measured at fair value | 0 | 78,200 | ||
Fair Value Measurements Level 2 | Restricted deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | |||
Fair Value Measurements Level 2 | Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 69,810 | 50,274 | ||
Liabilities measured at fair value | 0 | 78,200 | ||
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 | Guarantees | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Liabilities measured at fair value | 0 | |||
Fair Value Measurements Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | 0 | ||
Liabilities measured at fair value | 10,430 | 0 | ||
Fair Value Measurements Level 3 | Restricted deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | |||
Fair Value Measurements Level 3 | 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 3 | Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | 0 | ||
Fair Value Measurements Level 3 | Guarantees | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Liabilities measured at fair value | 10,430 | |||
Netting | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | [1] | -23,369 | [1] |
Liabilities measured at fair value | 0 | [1] | -23,369 | [1] |
Netting | Restricted deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | [1] | ||
Netting | Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | [1] | -23,369 | [1] |
Liabilities measured at fair value | 0 | [1] | -23,369 | [1] |
Netting | Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | [1] | 0 | [1] |
Netting | Guarantees | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Liabilities measured at fair value | $0 | [1] | ||
[1] | Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists. |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Financial Liabilities Measured at Fair Value on Recurring Basis using Unobservable Inputs (Details) (Guarantees, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | ||
Guarantees | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $12,028 | $0 | ||
Issuances | 0 | [1] | 9,446 | [1] |
(Gain) loss on guarantees | -1,598 | 984 | ||
Ending balance | $10,430 | $10,430 | ||
[1] | Represents the fair value of the guarantees of certain plugging and abandonment obligations on behalf of Fieldwood as of February 25, 2014, the closing date for the sale of the Gulf Properties. |
Fair_Value_Measurements_Reconc1
Fair Value Measurements - Reconciliation of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Details) (Commodity derivative contracts, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Commodity derivative contracts | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Beginning balance | ($512) |
Loss on derivative contracts | -133 |
Settlements paid | 645 |
Ending balance | $0 |
Fair_Value_Measurements_Estima
Fair Value Measurements - Estimated Fair Value and Carrying Value of Senior Notes (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Carrying Value | $3,195,301 | $3,194,907 | ||
8.75% Senior Notes due 2020 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Carrying Value | 445,232 | [1] | 444,736 | [1] |
7.5% Senior Notes due 2021 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Carrying Value | 1,178,598 | [2] | 1,178,922 | [2] |
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 | 821,471 | [3] | 821,249 | [3] |
Fair Value Measurements Level 2 | 8.75% Senior Notes due 2020 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Fair Value | 454,500 | [1] | 486,000 | [1] |
Fair Value Measurements Level 2 | 7.5% Senior Notes due 2021 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Fair Value | 1,130,938 | [2] | 1,230,813 | [2] |
Fair Value Measurements Level 2 | 8.125% Senior Notes due 2022 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Fair Value | 735,000 | 795,000 | ||
Fair Value Measurements Level 2 | 7.5% Senior Notes due 2023 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Fair Value | $781,688 | [3] | $837,375 | [3] |
[1] | Carrying value is net of $4,768 and $5,264 discount at September 30, 2014 and December 31, 2013, respectively. | |||
[2] | Carrying value includes a premium, applicable to notes issued in August 2012, of $3,598 and $3,922 at September 30, 2014 and December 31, 2013, respectively. | |||
[3] | Carrying value is net of $3,529 and $3,751 discount at September 30, 2014 and December 31, 2013, respectively. |
Fair_Value_Measurements_Estima1
Fair Value Measurements - Estimated Fair Value and Carrying Value of Senior Notes (Parenthetical) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
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 | $4,768 | $5,264 |
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 | 3,598 | 3,922 |
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% |
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 | $3,529 | $3,751 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Level 3 outstanding, value | $0 | ($512) | ||
Commodity derivative contracts | Fair Value Measurements Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Level 3 outstanding, value | 0 | |||
Gulf Properties | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Fair value inputs, probability of default | 3.71% | |||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 80,199 | 68,568 | ||
Fair Value, Measurements, Recurring | Fair Value Measurements Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 10,389 | 41,663 | ||
Fair Value, Measurements, Recurring | Fair Value Measurements Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 69,810 | 26,905 | ||
Fair Value, Measurements, Recurring | Commodity derivative contracts | Fair Value Measurements Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Commodity derivative contracts | Fair Value Measurements Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Restricted deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 27,955 | |||
Fair Value, Measurements, Recurring | Restricted deposits | Fair Value Measurements Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | 0 | 27,955 | ||
Fair Value, Measurements, Recurring | Restricted deposits | Fair Value Measurements Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||
Assets measured at fair value | $0 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Oil and natural gas properties | ||||
Proved(1) | $11,252,074 | [1] | $10,972,816 | [1] |
Unproved | 300,224 | 531,606 | ||
Total oil and natural gas properties | 11,552,298 | 11,504,422 | ||
Less: accumulated depreciation, depletion and impairment | -6,250,457 | -5,762,969 | ||
Net oil and natural gas properties capitalized costs | 5,301,841 | 5,741,453 | ||
Land | 16,300 | 18,423 | ||
Non-oil and natural gas equipment(2) | 631,781 | [2] | 600,603 | [2] |
Buildings and structures(3) | 255,469 | [3] | 233,405 | [3] |
Total | 903,550 | 852,431 | ||
Less accumulated depreciation and amortization | -324,686 | -286,209 | ||
Other property, plant and equipment, net | 578,864 | 566,222 | ||
Total property, plant and equipment, net | $5,880,705 | $6,307,675 | ||
[1] | Includes cumulative capitalized interest of approximately $33.9 million and $23.4 million at September 30, 2014 and December 31, 2013, respectively. | |||
[2] | Includes cumulative capitalized interest of approximately $4.3 million at both September 30, 2014 and December 31, 2013. | |||
[3] | Includes cumulative capitalized interest of approximately $15.8 million and $12.0 million at September 30, 2014 and December 31, 2013, respectively. |
Property_Plant_and_Equipment_P
Property, Plant and Equipment (Parenthetical) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Oil and natural gas proved properties | ||
Property, Plant and Equipment | ||
Cumulative capitalized interest | $33.90 | $23.40 |
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 | $15.80 | $12 |
Property_Pland_and_Equipment_A
Property, Pland and Equipment - Additional Information (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Property, Plant and Equipment | |||
Cumulative full cost ceiling limitation impairment | $3,700 | $3,500 | |
Full cost ceiling limitation impairment | 164.8 | ||
Proved oil and natural gas properties cost incurred in excess of development agreement | 180 | ||
Repsol E&P USA, Inc. | |||
Property, Plant and Equipment | |||
Minimum net wells | 484 | ||
Net wells | 241 | ||
Repsol E&P USA, Inc. | |||
Property, Plant and Equipment | |||
Drilling carry received or billed | 205.6 | ||
Atinum MidCon I, LLC and Repsol E&P USA, Inc. | |||
Property, Plant and Equipment | |||
Drilling carry received or billed | 334.2 | ||
Maximum | Repsol E&P USA, Inc. | Potential drilling carry costs | |||
Property, Plant and Equipment | |||
Total drilling carry | $75 |
Other_Assets_Details
Other Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Debt issuance costs, net of amortization | $54,878 | $61,923 | ||
Investments | 10,389 | 13,708 | ||
Deferred tax asset | 7,985 | 0 | ||
Restricted deposits | 0 | [1] | 27,955 | [1] |
Notes receivable on asset retirement obligations | 0 | [1] | 11,640 | [1] |
Other | 3,816 | 5,945 | ||
Total other assets | $77,068 | $121,171 | ||
[1] | Assets at December 31, 2013 were included in the sale of the Gulf Properties in February 2014, as discussed in Note 3. |
Construction_Contract_Addition
Construction Contract - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | |
Construction Contracts [Line Items] | |||||
Construction contract revenue | $0 | $0 | $0 | $23,253,000 | |
Construction contract expense | 0 | 0 | 0 | 23,253,000 | |
Transmission Expansion Projects | |||||
Construction Contracts [Line Items] | |||||
Contract price | 23,300,000 | ||||
Construction contract revenue | 23,300,000 | ||||
Construction contract expense | $23,300,000 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument | ||||
Debt | $3,195,301 | $3,194,907 | ||
Less: current maturities of long-term debt | 0 | 0 | ||
Long-term debt | 3,195,301 | 3,194,907 | ||
Senior credit facility | ||||
Debt Instrument | ||||
Debt | 0 | 0 | ||
8.75% Senior Notes due 2020, net of $4,768 and $5,264 discount, respectively | ||||
Debt Instrument | ||||
Debt | 445,232 | [1] | 444,736 | [1] |
7.5% Senior Notes due 2021, including premium of $3,598 and $3,922, respectively | ||||
Debt Instrument | ||||
Debt | 1,178,598 | [2] | 1,178,922 | [2] |
8.125% Senior Notes due 2022 | ||||
Debt Instrument | ||||
Debt | 750,000 | 750,000 | ||
7.5% Senior Notes due 2023, net of $3,529 and $3,751 discount, respectively | ||||
Debt Instrument | ||||
Debt | $821,471 | [3] | $821,249 | [3] |
[1] | Carrying value is net of $4,768 and $5,264 discount at September 30, 2014 and December 31, 2013, respectively. | |||
[2] | Carrying value includes a premium, applicable to notes issued in August 2012, of $3,598 and $3,922 at September 30, 2014 and December 31, 2013, respectively. | |||
[3] | Carrying value is net of $3,529 and $3,751 discount at September 30, 2014 and December 31, 2013, respectively. |
LongTerm_Debt_Parenthetical_De
Long-Term Debt (Parenthetical) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
8.75% Senior Notes due 2020 | ||
Debt Instrument | ||
Debt maturity date | 2020 | 2020 |
Long-term debt, fixed interest rate | 8.75% | 8.75% |
Long term debt, discount | $4,768 | $5,264 |
7.5% Senior Notes due 2021 | ||
Debt Instrument | ||
Debt maturity date | 2021 | 2021 |
Long-term debt, fixed interest rate | 7.50% | 7.50% |
Long term debt, premium | 3,598 | 3,922 |
8.125% Senior Notes due 2022 | ||
Debt Instrument | ||
Debt maturity date | 2022 | 2022 |
Long-term debt, fixed interest rate | 8.13% | 8.13% |
7.5% Senior Notes due 2023 | ||
Debt Instrument | ||
Debt maturity date | 2023 | 2023 |
Long-term debt, fixed interest rate | 7.50% | 7.50% |
Long term debt, discount | $3,529 | $3,751 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Oct. 31, 2014 | |
Debt Instrument | ||||||
Loss on extinguishment of debt | $0 | $0 | $0 | $82,005,000 | ||
Senior credit facility | ||||||
Debt Instrument | ||||||
Long-term debt, debt to EBITDA ratio, total funded debt determination | 10,000,000 | 10,000,000 | ||||
Debt maturity date | Oct-19 | |||||
Line of credit facility, financial covenants compliance | As of and during the three and nine-month periods ended September 30, 2014, 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, 2014, 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, natural gas and NGL reserves representing at least 80.0% of the discounted present value (as defined in the senior credit facility) of proved oil, natural gas and NGL reserves considered by the lenders in determining the borrowing base for the senior credit facility. | |||||
Line of credit facility, interest rate determination reference | (a) LIBOR plus an applicable margin between 1.50% and 2.50% 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 one-month 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 0.50% and 1.50% per annum. Interest is payable quarterly for base rate loans and at the end of the applicable interest period for LIBOR loans, except that if the interest period for a LIBOR loan is six months or longer, interest is paid at the end of each three-month period. | |||||
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 maximum borrowings capacity | 775,000,000 | 775,000,000 | ||||
Line of credit facility, amount outstanding | 0 | 0 | ||||
Line of credity facility, letters of credit outstanding | 10,400,000 | 10,400,000 | ||||
Senior credit facility | Minimum | ||||||
Debt Instrument | ||||||
Current assets to current liabilities, ratio minimum | 1 | 1 | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.38% | |||||
Senior credit facility | Maximum | ||||||
Debt Instrument | ||||||
Long-term debt, debt to EBITDA, ratio maximum | 4.5 | 4.5 | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | |||||
Senior credit facility | Addition to LIBOR per annum | LIBOR | Minimum | ||||||
Debt Instrument | ||||||
Line of credit facility, basis spread on variable rate | 1.50% | |||||
Senior credit facility | Addition to LIBOR per annum | LIBOR | Maximum | ||||||
Debt Instrument | ||||||
Line of credit facility, basis spread on variable rate | 2.50% | |||||
Senior credit facility | Addition to federal funds rate | ||||||
Debt Instrument | ||||||
Line of credit facility, basis spread on variable rate | 0.50% | |||||
Senior credit facility | Addition to Eurodollar rate per annum | Euro Dollar Rate | ||||||
Debt Instrument | ||||||
Line of credit facility, basis spread on variable rate | 1.00% | |||||
Senior credit facility | Applicable margin to base rate per annum | Minimum | ||||||
Debt Instrument | ||||||
Line of credit facility, basis spread on variable rate | 0.50% | |||||
Senior credit facility | Applicable margin to base rate per annum | Maximum | ||||||
Debt Instrument | ||||||
Line of credit facility, basis spread on variable rate | 1.50% | |||||
Senior Notes Outstanding | ||||||
Debt Instrument | ||||||
Debt issuance cost | 70,200,000 | 70,200,000 | ||||
9.875% Senior Notes due 2016 | ||||||
Debt Instrument | ||||||
Debt tender offer, aggregate principal amount tendered | 365,500,000 | |||||
Long-term debt, fixed interest rate | 9.88% | |||||
Debt instrument redemption price per principal amount | 1,061.34 | |||||
8.0% Senior Notes due 2018 | ||||||
Debt Instrument | ||||||
Debt tender offer, aggregate principal amount tendered | 750,000,000 | |||||
Long-term debt, fixed interest rate | 8.00% | |||||
Debt instrument redemption price per principal amount | 1,052.77 | |||||
9.875% Senior Notes and 8.0% Senior Notes | ||||||
Debt Instrument | ||||||
Loss on extinguishment of debt | 82,000,000 | |||||
Senior Notes | ||||||
Debt Instrument | ||||||
Debt instrument, restrictive covenants | Each of the indentures governing the Company’s Senior 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, 2014, the Company was in compliance with all of the covenants contained in the indentures governing its Senior Fixed Rate Notes. | As of and during the three and nine-month periods ended September 30, 2014, the Company was in compliance with all of the covenants contained in the indentures governing its outstanding Senior Fixed Rate Notes. | ||||
Subsequent Event | Senior credit facility | ||||||
Debt Instrument | ||||||
Line of credit facility maximum borrowings capacity | 1,200,000,000 | |||||
Line of credit facility amended maximum borrowing capacity | $900,000,000 |
Derivatives_Fair_Value_of_Deri
Derivatives - Fair Value of Derivative Contracts (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value | ||
Derivative assets | $69,810 | $50,274 |
Derivative liabilities | 0 | -78,200 |
Total net derivative contracts | 69,810 | -27,926 |
Current assets | ||
Derivatives, Fair Value | ||
Derivative assets | 53,919 | 18,368 |
Current assets | Oil Price Swaps | ||
Derivatives, Fair Value | ||
Derivative assets | 29,676 | 15,887 |
Current assets | Natural Gas Price Swaps | ||
Derivatives, Fair Value | ||
Derivative assets | 8,178 | 1,598 |
Current assets | Oil Collars - Three Way | ||
Derivatives, Fair Value | ||
Derivative assets | 15,768 | 706 |
Current assets | Natural Gas Collars | ||
Derivatives, Fair Value | ||
Derivative assets | 297 | 177 |
Noncurrent assets | ||
Derivatives, Fair Value | ||
Derivative assets | 15,891 | 31,906 |
Noncurrent assets | Oil Price Swaps | ||
Derivatives, Fair Value | ||
Derivative assets | 7,405 | 19,376 |
Noncurrent assets | Natural Gas Price Swaps | ||
Derivatives, Fair Value | ||
Derivative assets | 311 | 0 |
Noncurrent assets | Oil Collars - Three Way | ||
Derivatives, Fair Value | ||
Derivative assets | 8,072 | 12,189 |
Noncurrent assets | Natural Gas Collars | ||
Derivatives, Fair Value | ||
Derivative assets | 103 | 341 |
Current liabilities | ||
Derivatives, Fair Value | ||
Derivative liabilities | 0 | -39,856 |
Current liabilities | Oil Price Swaps | ||
Derivatives, Fair Value | ||
Derivative liabilities | 0 | -38,396 |
Current liabilities | Natural Gas Price Swaps | ||
Derivatives, Fair Value | ||
Derivative liabilities | 0 | -1,460 |
Noncurrent liabilities | ||
Derivatives, Fair Value | ||
Derivative liabilities | 0 | -38,344 |
Noncurrent liabilities | Oil Price Swaps | ||
Derivatives, Fair Value | ||
Derivative liabilities | $0 | ($38,344) |
Derivatives_Offsetting_Assets_
Derivatives - Offsetting Assets and Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Derivative assets, gross amounts | $69,810 | $50,274 |
Derivative assets, gross amounts offset | 0 | -23,369 |
Derivative assets, current | 53,919 | 12,779 |
Derivative assets, noncurrent | 15,891 | 14,126 |
Derivative assets, amounts net of offset | 69,810 | 26,905 |
Derivative assets, financial collateral | 0 | 0 |
Derivative assets, net amount | 69,810 | 26,905 |
Liabilities | ||
Derivative liabilities, gross amounts | 0 | 78,200 |
Derivative liabilities, gross amounts offset | 0 | -23,369 |
Derivative contracts | 0 | 34,267 |
Derivative liabilities, noncurrent | 0 | 20,564 |
Derivative liabilities, amounts net of offset | 0 | 54,831 |
Derivative liabilities, financial collateral | 0 | -54,831 |
Derivative liabilities, net amount | 0 | 0 |
Current assets | ||
Assets | ||
Derivative assets, gross amounts | 53,919 | 18,368 |
Derivative assets, gross amounts offset | 0 | -5,589 |
Derivative assets, financial collateral | 0 | 0 |
Derivative assets, net amount | 53,919 | 12,779 |
Noncurrent assets | ||
Assets | ||
Derivative assets, gross amounts | 15,891 | 31,906 |
Derivative assets, gross amounts offset | 0 | -17,780 |
Derivative assets, financial collateral | 0 | 0 |
Derivative assets, net amount | 15,891 | 14,126 |
Current liabilities | ||
Liabilities | ||
Derivative liabilities, gross amounts | 0 | 39,856 |
Derivative liabilities, gross amounts offset | 0 | -5,589 |
Derivative liabilities, financial collateral | 0 | -34,267 |
Derivative liabilities, net amount | 0 | 0 |
Noncurrent liabilities | ||
Liabilities | ||
Derivative liabilities, gross amounts | 0 | 38,344 |
Derivative liabilities, gross amounts offset | 0 | -17,780 |
Derivative liabilities, financial collateral | 0 | -20,564 |
Derivative liabilities, net amount | $0 | $0 |
Derivatives_Open_Commodity_Der
Derivatives - Open Commodity Derivative Contracts (Details) | 9 Months Ended |
Sep. 30, 2014 | |
MBbls | |
October 2014 - December 2014 | Oil Price Swaps | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 1,115 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 98.78 |
October 2014 - December 2014 | Natural Gas Price Swaps | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 11,040 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 4.31 |
October 2014 - December 2014 | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 2,070 |
October 2014 - December 2014 | Natural Gas Collars | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 236 |
Collar Range, minimum | 4 |
Collar Range, maximum | 7.78 |
October 2014 - December 2014 | Sold Put | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Collar Range, minimum | 70 |
October 2014 - December 2014 | Purchased Put | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Collar Range, minimum | 90.2 |
October 2014 - December 2014 | Sold Call | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Collar Range, maximum | 100 |
January 2015 - December 2015 | Oil Price Swaps | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 5,588 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 92.44 |
January 2015 - December 2015 | Natural Gas Price Swaps | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 15,400 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 4.51 |
January 2015 - December 2015 | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 4,576 |
January 2015 - December 2015 | Natural Gas Collars | |
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 |
January 2015 - December 2015 | Sold Put | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Collar Range, minimum | 76.56 |
January 2015 - December 2015 | Purchased Put | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Collar Range, minimum | 90.28 |
January 2015 - December 2015 | Sold Call | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Collar Range, maximum | 103.48 |
January 2016 - December 2016 | Oil Price Swaps | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 1,464 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 88.36 |
January 2016 - December 2016 | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Notional (Oil in MBbls/Natural Gas in MMcf) | 2,556 |
January 2016 - December 2016 | Sold Put | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Collar Range, minimum | 83.13 |
January 2016 - December 2016 | Purchased Put | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Collar Range, minimum | 90 |
January 2016 - December 2016 | Sold Call | Oil Collars - Three Way | |
Derivative Instruments and Hedging Activities Disclosure | |
Collar Range, maximum | 100.85 |
Derivatives_Additional_Informa
Derivatives - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2013 | |
Derivative Instruments and Hedging Activities Disclosure | |||||
(Gain) loss on derivative contracts | ($132,575,000) | $132,808,000 | ($4,792,000) | $70,051,000 | |
Mississippian Trust I | |||||
Derivative Instruments and Hedging Activities Disclosure | |||||
Commodity derivative contracts covering volumes of oil and gas production, date | 31-Dec-15 | ||||
Permian Trust | |||||
Derivative Instruments and Hedging Activities Disclosure | |||||
Commodity derivative contracts covering volumes of oil and gas production, date | 31-Mar-15 | ||||
Mississippian Trust II | |||||
Derivative Instruments and Hedging Activities Disclosure | |||||
Commodity derivative contracts covering volumes of oil and gas production, date | 31-Dec-14 | ||||
Senior Floating Rate Notes due 2014 | Fixed To Floating Interest Rate Swap Through April 1st 2013 | |||||
Derivative Instruments and Hedging Activities Disclosure | |||||
Contract period end | 1-Apr-13 | ||||
Notional amount of interest rate swaps | 350,000,000 | ||||
Derivative, fixed interest rate | 6.69% | ||||
Commodity Derivatives | |||||
Derivative Instruments and Hedging Activities Disclosure | |||||
(Gain) loss on derivative contracts | -132,600,000 | 132,800,000 | -4,800,000 | 70,100,000 | |
Cash | Commodity Derivatives | |||||
Derivative Instruments and Hedging Activities Disclosure | |||||
(Gain) loss on derivative contracts | -3,400,000 | 12,500,000 | 92,900,000 | 12,800,000 | |
Cash | Commodity Derivatives | Early Settlements | |||||
Derivative Instruments and Hedging Activities Disclosure | |||||
(Gain) loss on derivative contracts | $69,600,000 | $29,300,000 |
Asset_Retirement_Obligations_R
Asset Retirement Obligations - Reconciliation of Beginning and Ending Aggregate Carrying Amounts of Asset Retirement Obligations (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | |
Asset Retirement Obligation, Roll Forward Analysis | |||
Asset retirement obligations at December 31, 2013 | $424,117 | ||
Liability incurred upon acquiring and drilling wells | 3,835 | ||
Revisions in estimated cash flows | -438 | ||
Liability settled or disposed in current period | -377,745 | [1] | |
Accretion | 7,927 | ||
Asset retirement obligations at September 30, 2014 | 57,696 | ||
Less: current portion | 0 | 87,063 | |
Asset retirement obligations | $57,696 | $337,054 | |
[1] | Includes $366.0 million associated with the Gulf Properties sold in February 2014. |
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 | 1 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Feb. 28, 2014 | |
Reconciliation Of Changes In Asset Retirement Obligations | |||
Liability settled or disposed in current period | ($377,745) | [1] | |
Gulf Properties | |||
Reconciliation Of Changes In Asset Retirement Obligations | |||
Liability settled or disposed in current period | ($366,000) | ||
[1] | Includes $366.0 million associated with the Gulf Properties sold in February 2014. |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
bcf | bcf | bcf | |||
Wesley West Minerals, Ltd and Longfellow Ranch Partners, LP | |||||
Commitments and Contingencies Disclosure | |||||
Damages sought by plaintiff | $45.50 | ||||
General Land Office of the State of Texas | |||||
Commitments and Contingencies Disclosure | |||||
Damages sought by plaintiff | 13 | ||||
Patriot Exploration, LLC, Jonathan Feldman, Redwing Drilling Partners, Mapleleaf Drilling Partners, Avalanche Drilling Partners, Penguin Drilling Partners and Gramax Insurance Company Ltd. | |||||
Commitments and Contingencies Disclosure | |||||
Plaintiffs investment under participation agreement | 16 | ||||
Treating Agreement | |||||
Commitments and Contingencies Disclosure | |||||
Contract agreement, term | 30 years | ||||
Minimum delivery required (in Bcf) | 3,200 | 3,200 | |||
Initial shortfall price per Mcf | 0.25 | 0.25 | |||
Delivery made (in Bcf) | 34 | ||||
Delivery shortfall (in Bcf) | 164.4 | ||||
Final shortfall price per Mcf | 0.7 | ||||
Final shortfall, if not delivered in future periods | 70.9 | 70.9 | |||
Shortfall amount accrued | 8.6 | 32.7 | 8.3 | 25.3 | 24.3 |
Treating Agreement | Minimum | |||||
Commitments and Contingencies Disclosure | |||||
Projected shortfall amount | 30 | 30 | |||
Treating Agreement | Maximum | |||||
Commitments and Contingencies Disclosure | |||||
Final shortfall, if not delivered in future periods | 115.1 | ||||
Delivery requirement reduction payment | 585.7 | 585.7 | |||
Projected shortfall amount | $37 | $37 |
Equity_Preferred_Stock_Dividen
Equity - Preferred Stock Dividends (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Class of Stock | ||||
Dividends Paid | $3,315 | $3,315 | $28,453 | $28,453 |
Dividends Unpaid | 8,066 | 10,566 | 10,691 | 13,191 |
Total | 11,381 | 13,881 | 39,144 | 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 | 0 | 2,500 | 0 | 2,500 |
Total | 500 | 3,000 | 6,500 | 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_Treasury_Stock_Activity
Equity - Treasury Stock Activity (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Equity, Class of Treasury Stock [Line Items] | ||
Value of shares withheld for taxes | $6,281 | |
Treasury Stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares withheld for taxes | 1,004 | 5,604 |
Value of shares withheld for taxes | $6,281 | $29,661 |
Equity_Additional_Information_
Equity - Additional Information (Details) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | |
Equity Disclosure | |||||||
Retirement of treasury stock | $0 | ||||||
Repurchase of common stock | 17,542,000 | ||||||
Stockholder settlement gross | 5,000,000 | ||||||
Additional paid-in capital—stockholder receivable | -3,750,000 | -3,750,000 | -3,750,000 | -3,750,000 | |||
September 2014 Share Repurchase Program | |||||||
Equity Disclosure | |||||||
Authorized share repurchase amount | 200,000,000 | ||||||
Repurchase of common stock (in shares) | 3,500,000 | ||||||
Repurchase of common stock | 17,500,000 | ||||||
Restricted Stock | |||||||
Equity Disclosure | |||||||
Stock-based compensation | 18,600,000 | 5,100,000 | 6,800,000 | 77,500,000 | |||
Stock-based compensation, capitalized | 4,500,000 | 1,500,000 | 1,300,000 | 4,300,000 | |||
Restricted Stock | Separation of Former Executives | |||||||
Equity Disclosure | |||||||
Stock-based compensation | 48,500,000 | ||||||
Treasury Stock | |||||||
Equity Disclosure | |||||||
Retirement of treasury stock (in shares) | 1,004,000 | 5,604,000 | |||||
Retirement of treasury stock | $6,281,000 | $29,661,000 | |||||
8.5% Convertible perpetual preferred stock | |||||||
Equity Disclosure | |||||||
Preferred stock, dividend rate, percentage | 8.50% | ||||||
6.0% Convertible perpetual preferred stock | |||||||
Equity Disclosure | |||||||
Preferred stock, dividend rate, percentage | 6.00% | ||||||
7.0% Convertible perpetual preferred stock | |||||||
Equity Disclosure | |||||||
Preferred stock, dividend rate, percentage | 7.00% |
Income_Taxes_Provision_Benefit
Income Taxes - Provision (Benefit) for Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Current | ||||
Federal | ($1,160) | $687 | ($1,160) | $4,702 |
State | 96 | 1,676 | -971 | 2,598 |
Current, total | -1,064 | 2,363 | -2,131 | 7,300 |
Deferred | ||||
Federal | 0 | 0 | 0 | 0 |
State | 0 | 0 | 0 | 0 |
Deferred, total | 0 | 0 | 0 | 0 |
Total (benefit) provision | -1,064 | 2,363 | -2,131 | 7,300 |
Noncontrolling Interest | ||||
Deferred | ||||
Total (benefit) provision | 66 | 96 | 236 | 242 |
Parent | ||||
Deferred | ||||
Total (benefit) provision | ($1,130) | $2,267 | ($2,367) | $7,058 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2010 |
Income Taxes | |||
Federal net operating loss carryforwards subject to the IRC Section 382 limitation | $929.40 | ||
Unrecognized tax benefits | 0.1 | 1.4 | |
Unrecognized tax benefits, accrued interest and penalties | 0.1 | ||
Decrease in gross unrecognized tax benefits balance within next twelve months | 0 | ||
Beginning tax year | |||
Income Taxes | |||
Beginning tax year, years open for federal examination | 2011 | ||
Beginning tax year as result of federal NOL carryforwards | |||
Income Taxes | |||
Beginning tax year, years open for federal examination | 2005 | ||
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 |
Earnings_Loss_Per_Share_Calcul
Earnings (Loss) Per Share - Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||||||
Net Income (Loss), Basic | $145,957 | ($95,328) | ($51,036) | ($638,895) | |||
Weighted average shares, basic (in shares) | 485,458 | 483,582 | 485,194 | 480,209 | |||
Earnings (Loss) Per Share, Basic | $0.30 | ($0.20) | ($0.11) | ($1.33) | |||
Effect of dilutive securities | |||||||
Restricted stock (in dollars) | 0 | 0 | 0 | [1] | 0 | [1] | |
Restricted stock (in shares) | 320 | 0 | 0 | [1] | 0 | [1] | |
Convertible preferred stock (in dollars) | 11,381 | 0 | [2] | 0 | [2] | 0 | [2] |
Convertible preferred stock (in shares) | 90,133 | 0 | [2] | 0 | [2] | 0 | [2] |
Net Income (Loss), Diluted | $157,338 | ($95,328) | ($51,036) | ($638,895) | |||
Weighted average shares, diluted (in shares) | 575,911 | 483,582 | 485,194 | 480,209 | |||
Earnings (Loss) Per Share, Diluted | $0.27 | ($0.20) | ($0.11) | ($1.33) | |||
[1] | Restricted stock awards covering 2.8 million shares and 1.0 million shares for the nine-month periods ended September 30, 2014 and 2013, respectively, were excluded from the computation of loss per share because their effect would have been antidilutive. | ||||||
[2] | Potential common shares related to the Company’s outstanding 8.5%, 6.0% and 7.0% convertible perpetual preferred stock covering 90.1 million shares for the nine-month period ended September 30, 2014 and the three and nine-month periods ended September 30, 2013, were excluded from the computation of loss per share because their effect would have been antidilutive under the if-converted method. |
Earnings_Loss_Per_Share_Calcul1
Earnings (Loss) Per Share - Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings (Loss) Per Share (Parenthetical) (Details) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.8 | 1 | |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 90.1 | 90.1 | 90.1 |
8.5% Convertible perpetual preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred stock, dividend rate, percentage | 8.50% | ||
6.0% Convertible perpetual preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred stock, dividend rate, percentage | 6.00% | ||
7.0% Convertible perpetual preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred stock, dividend rate, percentage | 7.00% |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Share data in Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Related Party Transaction | ||||
Employee termination benefits | $5,000 | $2,256,000 | $8,927,000 | $120,374,000 |
Former Chairman and CEO Severance | ||||
Related Party Transaction | ||||
Employee termination benefits | 57,900,000 | |||
Severance, compensation cost of accelerated shares | 36,800,000 | |||
Severance, number of accelerated shares | 6.3 | |||
Severance, liability | 3,500,000 | 3,500,000 | ||
Employee Severance | Gulf Properties | ||||
Related Party Transaction | ||||
Employee termination benefits | 8,900,000 | |||
Executive Severance | Permian Properties | ||||
Related Party Transaction | ||||
Employee termination benefits | $25,700,000 |
Performance_Units_Fair_Value_A
Performance Units - Fair Value Assumptions (Details) (Performance Units, USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Weighted-average risk-free interest rate | 0.50% |
Weighted-average fair value per unit | $43.77 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Expected price volatility range, minimum | 21.10% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Expected price volatility range, minimum | 54.30% |
Performance_Units_Additional_I
Performance Units - Additional Information (Details) (Performance Units, USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Employee Compensation Plans | ||
Performance units, vesting period (in years) | 3 years | |
Performance units, payout performance below minimum target threshold | $0 | |
Performance units liability | $1,800,000 | $1,800,000 |
Minimum | ||
Employee Compensation Plans | ||
Performance units, payout percentages of target values | 50.00% | |
Maximum | ||
Employee Compensation Plans | ||
Performance units, payout percentages of target values | 200.00% |
Summarized_Financial_Informati
Summarized Financial Information Concerning Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
segment | |||||||||
business_unit | |||||||||
Segment Reporting Information | |||||||||
Reportable segments | 3 | ||||||||
Business units | 3 | ||||||||
Total revenues | $394,107 | $493,603 | $1,211,877 | $1,518,280 | |||||
Income (loss) from operations | 256,491 | -2,166 | [1] | 216,240 | -291,262 | [1] | |||
Interest expense | -59,783 | -61,385 | -183,689 | -208,454 | |||||
Loss on extinguishment of debt | 0 | 0 | 0 | -82,005 | |||||
Other (expense) income, net | -273 | 658 | 3,159 | 1,163 | |||||
Income (loss) before income taxes | 196,435 | -62,893 | [1] | 35,710 | -580,558 | [1] | |||
Capital expenditures | 467,828 | [2] | 322,582 | [2] | 1,120,537 | [2] | 1,098,452 | [2] | |
Depreciation, depletion, amortization, accretion and impairment | 128,156 | 162,068 | 546,264 | 525,077 | |||||
Total assets | 6,978,389 | 6,978,389 | 7,684,795 | ||||||
Exploration and Production | |||||||||
Segment Reporting Information | |||||||||
Total revenues | 359,613 | 462,503 | 1,106,857 | 1,402,125 | |||||
Income (loss) from operations | 275,191 | -19,858 | 288,497 | [3] | -95,927 | [3] | |||
Interest expense | 0 | 331 | 138 | 757 | |||||
Loss on extinguishment of debt | 0 | ||||||||
Other (expense) income, net | -38 | -350 | -272 | 157 | |||||
Income (loss) before income taxes | 275,153 | -19,877 | 288,363 | -95,013 | |||||
Capital expenditures | 435,758 | [2] | 292,697 | [2] | 1,056,568 | [2] | 1,008,869 | [2] | |
Depreciation, depletion, amortization, accretion and impairment | 113,711 | 146,286 | 497,888 | 462,683 | |||||
Total assets | 5,685,412 | 5,685,412 | 6,157,225 | ||||||
Drilling and Oil Field Services | |||||||||
Segment Reporting Information | |||||||||
Total revenues | 21,348 | 16,192 | 57,280 | 49,651 | |||||
Income (loss) from operations | -1,155 | -8,276 | -6,605 | [4] | -36,684 | [4] | |||
Interest expense | 0 | 0 | 0 | 0 | |||||
Loss on extinguishment of debt | 0 | ||||||||
Other (expense) income, net | -89 | 0 | -561 | 0 | |||||
Income (loss) before income taxes | -1,244 | -8,276 | -7,166 | -36,684 | |||||
Capital expenditures | 3,603 | [2] | 3,142 | [2] | 10,877 | [2] | 4,657 | [2] | |
Depreciation, depletion, amortization, accretion and impairment | 6,884 | 8,252 | 25,390 | 36,544 | |||||
Total assets | 142,104 | 142,104 | 158,737 | ||||||
Midstream Services | |||||||||
Segment Reporting Information | |||||||||
Total revenues | 11,922 | 14,141 | 44,441 | 64,105 | |||||
Income (loss) from operations | -3,218 | -7,691 | -6,973 | -18,106 | |||||
Interest expense | 0 | 0 | 0 | 0 | |||||
Loss on extinguishment of debt | 0 | ||||||||
Other (expense) income, net | 5 | -41 | 5 | -914 | |||||
Income (loss) before income taxes | -3,213 | -7,732 | -6,968 | -19,020 | |||||
Capital expenditures | 14,045 | [2] | 16,551 | [2] | 25,810 | [2] | 46,883 | [2] | |
Depreciation, depletion, amortization, accretion and impairment | 2,584 | 2,128 | 7,534 | 7,832 | |||||
Total assets | 193,630 | 193,630 | 188,165 | ||||||
All Other | |||||||||
Segment Reporting Information | |||||||||
Total revenues | 1,224 | 767 | 3,299 | 2,399 | |||||
Income (loss) from operations | -14,327 | 33,659 | -58,679 | -140,545 | |||||
Interest expense | -59,783 | -61,716 | -183,827 | -209,211 | |||||
Loss on extinguishment of debt | -82,005 | ||||||||
Other (expense) income, net | -151 | 1,049 | 3,987 | 1,920 | |||||
Income (loss) before income taxes | -74,261 | -27,008 | -238,519 | -429,841 | |||||
Capital expenditures | 14,422 | [2] | 10,192 | [2] | 27,282 | [2] | 38,043 | [2] | |
Depreciation, depletion, amortization, accretion and impairment | 4,977 | 5,402 | 15,452 | 18,018 | |||||
Total assets | 957,243 | 957,243 | 1,180,668 | ||||||
Operating Segments | |||||||||
Segment Reporting Information | |||||||||
Total revenues | 443,051 | 545,752 | 1,376,082 | 1,685,130 | |||||
Operating Segments | Exploration and Production | |||||||||
Segment Reporting Information | |||||||||
Total revenues | 359,613 | 462,582 | 1,106,883 | 1,402,366 | |||||
Operating Segments | Drilling and Oil Field Services | |||||||||
Segment Reporting Information | |||||||||
Total revenues | 51,082 | 44,527 | 150,054 | 141,364 | |||||
Operating Segments | Midstream Services | |||||||||
Segment Reporting Information | |||||||||
Total revenues | 31,132 | 37,876 | 115,846 | 139,001 | |||||
Operating Segments | All Other | |||||||||
Segment Reporting Information | |||||||||
Total revenues | 1,224 | 767 | 3,299 | 2,399 | |||||
Intersegment Eliminations | |||||||||
Segment Reporting Information | |||||||||
Total revenues | -48,944 | -52,149 | -164,205 | -166,850 | |||||
Intersegment Eliminations | Exploration and Production | |||||||||
Segment Reporting Information | |||||||||
Total revenues | 0 | -79 | -26 | -241 | |||||
Intersegment Eliminations | Drilling and Oil Field Services | |||||||||
Segment Reporting Information | |||||||||
Total revenues | -29,734 | -28,335 | -92,774 | -91,713 | |||||
Intersegment Eliminations | Midstream Services | |||||||||
Segment Reporting Information | |||||||||
Total revenues | -19,210 | -23,735 | -71,405 | -74,896 | |||||
Intersegment Eliminations | All Other | |||||||||
Segment Reporting Information | |||||||||
Total revenues | $0 | $0 | $0 | $0 | |||||
[1] | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. | ||||||||
[2] | On an accrual basis and exclusive of acquisitions. | ||||||||
[3] | Income (loss) from operations includes a full cost ceiling limitation impairment of $164.8 million for the nine-month period ended September 30, 2014, and a loss on the sale of the Permian Properties of $398.9 million for the nine-month period ended September 30, 2013. | ||||||||
[4] | Income (loss) from operations includes an impairment of $3.1 million and $11.1 million on certain drilling assets held for sale for the nine-month periods ended September 30, 2014 and September 30, 2013, respectively. |
Summarized_Financial_Informati1
Summarized Financial Information Concerning Segments (Parenthetical) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Segment Reporting Information | ||||
Full cost ceiling limitation impairment | $164,800,000 | |||
Impairment | 54,000 | 687,000 | 167,966,000 | 16,330,000 |
Permian Properties | ||||
Segment Reporting Information | ||||
Gain (loss) on sale of oil and gas property | -398,900,000 | |||
Exploration and Production | ||||
Segment Reporting Information | ||||
Full cost ceiling limitation impairment | 164,800,000 | |||
Exploration and Production | Permian Properties | ||||
Segment Reporting Information | ||||
Gain (loss) on sale of oil and gas property | -398,900,000 | |||
Drilling and Oil Field Services | ||||
Segment Reporting Information | ||||
Impairment | $3,100,000 | $11,100,000 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidating Balance Sheets of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||||
Current assets | |||||
Cash and cash equivalents | $590,246 | $814,663 | $920,257 | $309,766 | |
Accounts receivable, net | 330,543 | 349,218 | |||
Intercompany accounts receivable | 0 | 0 | |||
Derivative contracts | 53,919 | 12,779 | |||
Prepaid expenses | 6,794 | 39,253 | |||
Other current assets | 23,223 | 25,910 | |||
Total current assets | 1,004,725 | 1,241,823 | |||
Property, plant and equipment, net | 5,880,705 | 6,307,675 | |||
Investment in subsidiaries | 0 | 0 | |||
Derivative contracts | 15,891 | 14,126 | |||
Other assets | 77,068 | 121,171 | |||
Total assets | 6,978,389 | 7,684,795 | |||
Current liabilities | |||||
Accounts payable and accrued expenses | 652,649 | 812,488 | |||
Intercompany accounts payable | 0 | 0 | |||
Derivative contracts | 0 | 34,267 | |||
Asset retirement obligations | 0 | 87,063 | |||
Other current liabilities | 18,549 | 0 | |||
Total current liabilities | 671,198 | 933,818 | |||
Investment in subsidiaries | 0 | 0 | |||
Long-term debt | 3,195,301 | 3,194,907 | |||
Derivative contracts | 0 | 20,564 | |||
Asset retirement obligations | 57,696 | 337,054 | |||
Other long-term obligations | 16,418 | 22,825 | |||
Total liabilities | 3,940,613 | 4,509,168 | |||
Equity | |||||
SandRidge Energy, Inc. stockholders’ equity | 1,771,294 | 1,825,810 | |||
Noncontrolling interest | 1,266,482 | 1,349,817 | |||
Total equity | 3,037,776 | 3,175,627 | |||
Total liabilities and equity | 6,978,389 | 7,684,795 | |||
Parent | |||||
Current assets | |||||
Cash and cash equivalents | 580,697 | 805,505 | 910,443 | 300,228 | |
Accounts receivable, net | 2,372 | 0 | |||
Intercompany accounts receivable | 480,898 | 153,325 | |||
Derivative contracts | 0 | 0 | |||
Prepaid expenses | 0 | 0 | |||
Other current assets | 0 | 1,376 | |||
Total current assets | 1,063,967 | 960,206 | |||
Property, plant and equipment, net | 0 | 0 | |||
Investment in subsidiaries | 6,245,116 | 6,009,603 | [1] | ||
Derivative contracts | 0 | 0 | |||
Other assets | 62,863 | 61,923 | |||
Total assets | 7,371,946 | 7,031,732 | |||
Current liabilities | |||||
Accounts payable and accrued expenses | 163,774 | 207,572 | |||
Intercompany accounts payable | 1,335,071 | 967,365 | |||
Derivative contracts | 0 | 0 | |||
Asset retirement obligations | 0 | ||||
Other current liabilities | 7,985 | ||||
Total current liabilities | 1,506,830 | 1,174,937 | |||
Investment in subsidiaries | 892,524 | 828,794 | [1] | ||
Long-term debt | 3,201,203 | 3,200,809 | |||
Derivative contracts | 0 | 0 | |||
Asset retirement obligations | 0 | 0 | |||
Other long-term obligations | 95 | 1,382 | |||
Total liabilities | 5,600,652 | 5,205,922 | |||
Equity | |||||
SandRidge Energy, Inc. stockholders’ equity | 1,771,294 | 1,825,810 | |||
Noncontrolling interest | 0 | 0 | |||
Total equity | 1,771,294 | 1,825,810 | [1] | ||
Total liabilities and equity | 7,371,946 | 7,031,732 | |||
Guarantors | |||||
Current assets | |||||
Cash and cash equivalents | 1,796 | 1,013 | 838 | 922 | |
Accounts receivable, net | 311,667 | 326,345 | |||
Intercompany accounts receivable | 1,341,756 | 982,524 | |||
Derivative contracts | 47,929 | 7,796 | |||
Prepaid expenses | 6,782 | 39,165 | |||
Other current assets | 23,206 | 24,410 | |||
Total current assets | 1,733,136 | 1,381,253 | |||
Property, plant and equipment, net | 4,790,902 | 5,125,543 | [2] | ||
Investment in subsidiaries | 21,021 | 49,418 | [2] | ||
Derivative contracts | 15,891 | 12,650 | |||
Other assets | 19,403 | 65,123 | |||
Total assets | 6,580,353 | 6,633,987 | |||
Current liabilities | |||||
Accounts payable and accrued expenses | 486,207 | 601,074 | |||
Intercompany accounts payable | 503,580 | 181,573 | |||
Derivative contracts | 9,845 | 44,032 | |||
Asset retirement obligations | 87,063 | ||||
Other current liabilities | 10,564 | ||||
Total current liabilities | 1,010,196 | 913,742 | |||
Investment in subsidiaries | 141,566 | 152,266 | [2] | ||
Long-term debt | 0 | 0 | |||
Derivative contracts | 1,980 | 28,673 | |||
Asset retirement obligations | 57,696 | 337,054 | |||
Other long-term obligations | 16,323 | 21,443 | |||
Total liabilities | 1,227,761 | 1,453,178 | |||
Equity | |||||
SandRidge Energy, Inc. stockholders’ equity | 5,352,592 | 5,180,809 | |||
Noncontrolling interest | 0 | 0 | |||
Total equity | 5,352,592 | 5,180,809 | [2] | ||
Total liabilities and equity | 6,580,353 | 6,633,987 | |||
Non-Guarantors | |||||
Current assets | |||||
Cash and cash equivalents | 7,753 | 8,145 | 8,976 | 8,616 | |
Accounts receivable, net | 18,876 | 22,873 | |||
Intercompany accounts receivable | 51,433 | 70,107 | |||
Derivative contracts | 15,835 | 14,748 | |||
Prepaid expenses | 12 | 88 | |||
Other current assets | 17 | 124 | |||
Total current assets | 93,926 | 116,085 | |||
Property, plant and equipment, net | 1,089,803 | 1,182,132 | |||
Investment in subsidiaries | 0 | 0 | |||
Derivative contracts | 1,980 | 9,585 | |||
Other assets | 704 | 27 | |||
Total assets | 1,186,413 | 1,307,829 | |||
Current liabilities | |||||
Accounts payable and accrued expenses | 5,040 | 3,842 | |||
Intercompany accounts payable | 35,436 | 57,018 | |||
Derivative contracts | 0 | 0 | |||
Asset retirement obligations | 0 | ||||
Other current liabilities | 0 | ||||
Total current liabilities | 40,476 | 60,860 | |||
Investment in subsidiaries | 0 | 0 | |||
Long-term debt | 0 | 0 | |||
Derivative contracts | 0 | 0 | |||
Asset retirement obligations | 0 | 0 | |||
Other long-term obligations | 0 | 0 | |||
Total liabilities | 40,476 | 60,860 | |||
Equity | |||||
SandRidge Energy, Inc. stockholders’ equity | 1,145,937 | 1,246,969 | |||
Noncontrolling interest | 0 | 0 | |||
Total equity | 1,145,937 | 1,246,969 | |||
Total liabilities and equity | 1,186,413 | 1,307,829 | |||
Eliminations | |||||
Current assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Accounts receivable, net | -2,372 | 0 | |||
Intercompany accounts receivable | -1,874,087 | -1,205,956 | |||
Derivative contracts | -9,845 | -9,765 | |||
Prepaid expenses | 0 | 0 | |||
Other current assets | 0 | 0 | |||
Total current assets | -1,886,304 | -1,215,721 | |||
Property, plant and equipment, net | 0 | 0 | |||
Investment in subsidiaries | -6,266,137 | -6,059,021 | [1],[2] | ||
Derivative contracts | -1,980 | -8,109 | |||
Other assets | -5,902 | -5,902 | |||
Total assets | -8,160,323 | -7,288,753 | |||
Current liabilities | |||||
Accounts payable and accrued expenses | -2,372 | 0 | |||
Intercompany accounts payable | -1,874,087 | -1,205,956 | |||
Derivative contracts | -9,845 | -9,765 | |||
Asset retirement obligations | 0 | ||||
Other current liabilities | 0 | ||||
Total current liabilities | -1,886,304 | -1,215,721 | |||
Investment in subsidiaries | -1,034,090 | -981,060 | [1],[2] | ||
Long-term debt | -5,902 | -5,902 | |||
Derivative contracts | -1,980 | -8,109 | |||
Asset retirement obligations | 0 | 0 | |||
Other long-term obligations | 0 | 0 | |||
Total liabilities | -2,928,276 | -2,210,792 | |||
Equity | |||||
SandRidge Energy, Inc. stockholders’ equity | -6,498,529 | -6,427,778 | |||
Noncontrolling interest | 1,266,482 | 1,349,817 | |||
Total equity | -5,232,047 | -5,077,961 | [1],[2] | ||
Total liabilities and equity | ($8,160,323) | ($7,288,753) | |||
[1] | Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $828.8 million, as liabilities and to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to Guarantor full cost pool (property, plant and equipment, net) and a reduction to Parent equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements. | ||||
[2] | Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $152.3 million, as liabilities. Property, plant and equipment, net has been revised to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to the Guarantor full cost pool (property, plant and equipment, net) and a reduction to Guarantor equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements. |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidating Balance Sheets of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Parenthetical) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Condensed Financial Statements, Captions | |||
Investment in subsidiaries | $0 | $0 | |
Negative investments in subsidiaries | 0 | 0 | |
Total equity | 3,037,776 | 3,175,627 | |
Property, plant and equipment, net | 5,880,705 | 6,307,675 | |
Parent | |||
Condensed Financial Statements, Captions | |||
Investment in subsidiaries | 6,245,116 | 6,009,603 | [1] |
Negative investments in subsidiaries | 892,524 | 828,794 | [1] |
Total equity | 1,771,294 | 1,825,810 | [1] |
Property, plant and equipment, net | 0 | 0 | |
Parent | Condensed Balance Sheet Revision | |||
Condensed Financial Statements, Captions | |||
Investment in subsidiaries | 828,800 | ||
Negative investments in subsidiaries | 828,800 | ||
Total equity | -55,600 | ||
Guarantors | |||
Condensed Financial Statements, Captions | |||
Investment in subsidiaries | 21,021 | 49,418 | [2] |
Negative investments in subsidiaries | 141,566 | 152,266 | [2] |
Total equity | 5,352,592 | 5,180,809 | [2] |
Property, plant and equipment, net | 4,790,902 | 5,125,543 | [2] |
Guarantors | Condensed Balance Sheet Revision | |||
Condensed Financial Statements, Captions | |||
Investment in subsidiaries | 152,300 | ||
Negative investments in subsidiaries | 152,300 | ||
Total equity | -55,600 | ||
Property, plant and equipment, net | ($55,600) | ||
[1] | Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $828.8 million, as liabilities and to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to Guarantor full cost pool (property, plant and equipment, net) and a reduction to Parent equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements. | ||
[2] | Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $152.3 million, as liabilities. Property, plant and equipment, net has been revised to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to the Guarantor full cost pool (property, plant and equipment, net) and a reduction to Guarantor equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements. |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidating Statements of Operations of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Condensed Financial Statements, Captions | ||||||
Total revenues | $394,107 | $493,603 | $1,211,877 | $1,518,280 | ||
Expenses | ||||||
Direct operating expenses | 117,446 | 160,384 | [1] | 359,123 | 523,375 | [1] |
General and administrative | 24,589 | 39,970 | 95,042 | 292,675 | ||
Depreciation, depletion, amortization and accretion | 128,102 | 161,381 | 378,298 | 508,747 | ||
Impairment | 54 | 687 | 167,966 | 16,330 | ||
(Gain) loss on derivative contracts | -132,575 | 132,808 | -4,792 | 70,051 | ||
Loss (gain) on sale of assets | -995 | 539 | -978 | 398,364 | ||
Total expenses | 137,616 | 495,769 | [1] | 995,637 | 1,809,542 | [1] |
Income (loss) from operations | 256,491 | -2,166 | [1] | 216,240 | -291,262 | [1] |
Equity earnings from subsidiaries | 0 | 0 | 0 | 0 | ||
Interest (expense) income | -59,783 | -61,385 | -183,689 | -208,454 | ||
Loss on extinguishment of debt | 0 | 0 | 0 | -82,005 | ||
Other income (expense), net | -273 | 658 | 3,159 | 1,163 | ||
Income (loss) before income taxes | 196,435 | -62,893 | [1] | 35,710 | -580,558 | [1] |
Income tax (benefit) expense | -1,064 | 2,363 | -2,131 | 7,300 | ||
Net (loss) income | 197,499 | -65,256 | [1] | 37,841 | -587,858 | [1] |
Less: net income attributable to noncontrolling interest | 40,161 | 16,191 | 49,733 | 9,393 | ||
Net (loss) income attributable to SandRidge Energy, Inc. | 157,338 | -81,447 | [1] | -11,892 | -597,251 | [1] |
Parent | ||||||
Condensed Financial Statements, Captions | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Expenses | ||||||
Direct operating expenses | 0 | 0 | [1] | 0 | 0 | [1] |
General and administrative | 57 | 83 | 277 | 258 | ||
Depreciation, depletion, amortization and accretion | 0 | 0 | 0 | 0 | ||
Impairment | 0 | 0 | 0 | 0 | ||
(Gain) loss on derivative contracts | 0 | 0 | 0 | 0 | ||
Loss (gain) on sale of assets | 0 | 0 | ||||
Total expenses | 57 | 83 | [1] | 277 | 258 | [1] |
Income (loss) from operations | -57 | -83 | [1] | -277 | -258 | [1] |
Equity earnings from subsidiaries | 216,026 | -17,420 | 169,766 | -298,822 | ||
Interest (expense) income | -59,783 | -61,716 | -183,827 | -209,211 | ||
Loss on extinguishment of debt | -82,005 | |||||
Other income (expense), net | 0 | 0 | 0 | 0 | ||
Income (loss) before income taxes | 156,186 | -79,219 | [1] | -14,338 | -590,296 | [1] |
Income tax (benefit) expense | -1,152 | 2,228 | -2,446 | 6,955 | ||
Net (loss) income | 157,338 | -81,447 | [1] | -11,892 | -597,251 | [1] |
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||
Net (loss) income attributable to SandRidge Energy, Inc. | 157,338 | -81,447 | [1] | -11,892 | -597,251 | [1] |
Guarantors | ||||||
Condensed Financial Statements, Captions | ||||||
Total revenues | 340,563 | 411,847 | 1,034,133 | 1,277,289 | ||
Expenses | ||||||
Direct operating expenses | 113,774 | 154,175 | [1] | 345,809 | 499,027 | [1] |
General and administrative | 23,764 | 38,894 | 91,190 | 287,365 | ||
Depreciation, depletion, amortization and accretion | 113,649 | 140,350 | 333,463 | 441,538 | ||
Impairment | 54 | 515 | 125,653 | 13,218 | ||
(Gain) loss on derivative contracts | -110,355 | 103,215 | -8,744 | 45,462 | ||
Loss (gain) on sale of assets | 900 | 291,516 | ||||
Total expenses | 140,886 | 438,049 | [1] | 887,371 | 1,578,126 | [1] |
Income (loss) from operations | 199,677 | -26,202 | [1] | 146,762 | -300,837 | [1] |
Equity earnings from subsidiaries | 16,622 | 7,803 | 19,707 | -606 | ||
Interest (expense) income | 0 | 331 | 138 | 757 | ||
Loss on extinguishment of debt | 0 | |||||
Other income (expense), net | -273 | 648 | 3,159 | 1,864 | ||
Income (loss) before income taxes | 216,026 | -17,420 | [1] | 169,766 | -298,822 | [1] |
Income tax (benefit) expense | 0 | 0 | 0 | 0 | ||
Net (loss) income | 216,026 | -17,420 | [1] | 169,766 | -298,822 | [1] |
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||
Net (loss) income attributable to SandRidge Energy, Inc. | 216,026 | -17,420 | [1] | 169,766 | -298,822 | [1] |
Non-Guarantors | ||||||
Condensed Financial Statements, Captions | ||||||
Total revenues | 53,544 | 81,830 | 177,843 | 241,314 | ||
Expenses | ||||||
Direct operating expenses | 3,672 | 6,283 | [1] | 13,413 | 24,671 | [1] |
General and administrative | 768 | 993 | 3,575 | 5,052 | ||
Depreciation, depletion, amortization and accretion | 14,453 | 21,031 | 44,835 | 67,209 | ||
Impairment | 0 | 172 | 42,313 | 3,112 | ||
(Gain) loss on derivative contracts | -22,220 | 29,593 | 3,952 | 24,589 | ||
Loss (gain) on sale of assets | -361 | 106,848 | ||||
Total expenses | -3,327 | 57,711 | [1] | 108,088 | 231,481 | [1] |
Income (loss) from operations | 56,871 | 24,119 | [1] | 69,755 | 9,833 | [1] |
Equity earnings from subsidiaries | 0 | 0 | 0 | 0 | ||
Interest (expense) income | 0 | 0 | 0 | 0 | ||
Loss on extinguishment of debt | 0 | |||||
Other income (expense), net | 0 | 10 | 0 | -701 | ||
Income (loss) before income taxes | 56,871 | 24,129 | [1] | 69,755 | 9,132 | [1] |
Income tax (benefit) expense | 88 | 135 | 315 | 345 | ||
Net (loss) income | 56,783 | 23,994 | [1] | 69,440 | 8,787 | [1] |
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||
Net (loss) income attributable to SandRidge Energy, Inc. | 56,783 | 23,994 | [1] | 69,440 | 8,787 | [1] |
Eliminations | ||||||
Condensed Financial Statements, Captions | ||||||
Total revenues | 0 | -74 | -99 | -323 | ||
Expenses | ||||||
Direct operating expenses | 0 | -74 | [1] | -99 | -323 | [1] |
General and administrative | 0 | 0 | 0 | 0 | ||
Depreciation, depletion, amortization and accretion | 0 | 0 | 0 | 0 | ||
Impairment | 0 | 0 | 0 | 0 | ||
(Gain) loss on derivative contracts | 0 | 0 | 0 | 0 | ||
Loss (gain) on sale of assets | 0 | 0 | ||||
Total expenses | 0 | -74 | [1] | -99 | -323 | [1] |
Income (loss) from operations | 0 | 0 | [1] | 0 | 0 | [1] |
Equity earnings from subsidiaries | -232,648 | 9,617 | -189,473 | 299,428 | ||
Interest (expense) income | 0 | 0 | 0 | 0 | ||
Loss on extinguishment of debt | 0 | |||||
Other income (expense), net | 0 | 0 | 0 | 0 | ||
Income (loss) before income taxes | -232,648 | 9,617 | [1] | -189,473 | 299,428 | [1] |
Income tax (benefit) expense | 0 | 0 | 0 | 0 | ||
Net (loss) income | -232,648 | 9,617 | [1] | -189,473 | 299,428 | [1] |
Less: net income attributable to noncontrolling interest | 40,161 | 16,191 | 49,733 | 9,393 | ||
Net (loss) income attributable to SandRidge Energy, Inc. | ($272,809) | ($6,574) | [1] | ($239,206) | $290,035 | [1] |
[1] | Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2. |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidating Statements of Cash Flows of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements, Captions | ||
Net cash (used in) provided by operating activities | $395,684 | $595,007 |
Cash flows from investing activities | ||
Capital expenditures for property, plant and equipment | -1,071,465 | -1,163,539 |
Proceeds from sale of assets | 714,294 | 2,567,355 |
Other | -16,920 | -15,527 |
Net cash (used in) provided by investing activities | -374,091 | 1,388,289 |
Cash flows from financing activities | ||
Repayments of borrowings | 0 | -1,115,500 |
Distribution to unitholders | -150,440 | -153,002 |
Premium on debt redemption | 0 | -61,997 |
Intercompany borrowings (advances), net | 0 | 0 |
Other | -95,570 | -42,306 |
Net cash used in financing activities | -246,010 | -1,372,805 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -224,417 | 610,491 |
CASH AND CASH EQUIVALENTS, beginning of year | 814,663 | 309,766 |
CASH AND CASH EQUIVALENTS, end of period | 590,246 | 920,257 |
Parent | ||
Condensed Financial Statements, Captions | ||
Net cash (used in) provided by operating activities | 173,597 | -157,030 |
Cash flows from investing activities | ||
Capital expenditures for property, plant and equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Other | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 |
Cash flows from financing activities | ||
Repayments of borrowings | -1,115,500 | |
Distribution to unitholders | 0 | 0 |
Premium on debt redemption | -61,997 | |
Intercompany borrowings (advances), net | -327,573 | 2,021,132 |
Other | -70,832 | -76,390 |
Net cash used in financing activities | -398,405 | 767,245 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -224,808 | 610,215 |
CASH AND CASH EQUIVALENTS, beginning of year | 805,505 | 300,228 |
CASH AND CASH EQUIVALENTS, end of period | 580,697 | 910,443 |
Guarantors | ||
Condensed Financial Statements, Captions | ||
Net cash (used in) provided by operating activities | 49,777 | 539,973 |
Cash flows from investing activities | ||
Capital expenditures for property, plant and equipment | -1,071,465 | -1,163,539 |
Proceeds from sale of assets | 711,547 | 2,566,900 |
Other | -146,274 | 18,756 |
Net cash (used in) provided by investing activities | -506,192 | 1,422,117 |
Cash flows from financing activities | ||
Repayments of borrowings | 0 | |
Distribution to unitholders | 0 | 0 |
Premium on debt redemption | 0 | |
Intercompany borrowings (advances), net | 327,459 | -2,025,243 |
Other | 129,739 | 63,069 |
Net cash used in financing activities | 457,198 | -1,962,174 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 783 | -84 |
CASH AND CASH EQUIVALENTS, beginning of year | 1,013 | 922 |
CASH AND CASH EQUIVALENTS, end of period | 1,796 | 838 |
Non-Guarantors | ||
Condensed Financial Statements, Captions | ||
Net cash (used in) provided by operating activities | 178,603 | 211,364 |
Cash flows from investing activities | ||
Capital expenditures for property, plant and equipment | 0 | 0 |
Proceeds from sale of assets | 2,747 | 455 |
Other | 1,061 | 37 |
Net cash (used in) provided by investing activities | 3,808 | 492 |
Cash flows from financing activities | ||
Repayments of borrowings | 0 | |
Distribution to unitholders | -184,176 | -226,404 |
Premium on debt redemption | 0 | |
Intercompany borrowings (advances), net | 114 | 4,111 |
Other | 1,259 | 10,797 |
Net cash used in financing activities | -182,803 | -211,496 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -392 | 360 |
CASH AND CASH EQUIVALENTS, beginning of year | 8,145 | 8,616 |
CASH AND CASH EQUIVALENTS, end of period | 7,753 | 8,976 |
Eliminations | ||
Condensed Financial Statements, Captions | ||
Net cash (used in) provided by operating activities | -6,293 | 700 |
Cash flows from investing activities | ||
Capital expenditures for property, plant and equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Other | 128,293 | -34,320 |
Net cash (used in) provided by investing activities | 128,293 | -34,320 |
Cash flows from financing activities | ||
Repayments of borrowings | 0 | |
Distribution to unitholders | 33,736 | 73,402 |
Premium on debt redemption | 0 | |
Intercompany borrowings (advances), net | 0 | 0 |
Other | -155,736 | -39,782 |
Net cash used in financing activities | -122,000 | 33,620 |
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 (Details) (Subsequent Event, USD $) | Oct. 30, 2014 |
In Thousands, unless otherwise specified | |
Royalty Trusts | |
Subsequent Event | |
Total Distribution | $50,150 |
Amount Distributed to Third-Party Unitholders | 43,367 |
Mississippian Trust I | |
Subsequent Event | |
Total Distribution | 6,913 |
Amount Distributed to Third-Party Unitholders | 5,055 |
Permian Trust | |
Subsequent Event | |
Total Distribution | 28,245 |
Amount Distributed to Third-Party Unitholders | 25,830 |
Mississippian Trust II | |
Subsequent Event | |
Total Distribution | 14,992 |
Amount Distributed to Third-Party Unitholders | $12,482 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Details) (USD $) | 9 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended |
Sep. 30, 2014 | Dec. 31, 2014 | Oct. 31, 2014 | Oct. 30, 2014 | |
Subsequent Event | ||||
Repurchase of common stock | $17,542,000 | |||
Subsequent Event | ||||
Subsequent Event | ||||
Repurchase of common stock (in shares) | 23,911,000 | |||
Repurchase of common stock | 93,800,000 | |||
Fees paid for repurchase of common stock | 500,000 | |||
Remaining authorized share repurchase amount | $88,700,000 | |||
Royalty Trust Distributions | Subsequent Event | Royalty Trusts | ||||
Subsequent Event | ||||
Distribution date | 28-Nov-14 | |||
Distributions record date | 14-Nov-14 |