Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 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-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Amendment Flag | FALSE | ||
Entity Public Float | $3.40 | ||
Entity Common Stock, Shares Outstanding | 483,839,301 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ||||
Cash and cash equivalents | $181,253 | $814,663 | ||
Accounts receivable, net | 330,077 | 349,218 | ||
Derivative contracts | 291,414 | 12,779 | ||
Prepaid expenses | 7,981 | 39,253 | ||
Other current assets | 21,193 | 25,910 | ||
Total current assets | 831,918 | 1,241,823 | ||
Oil and natural gas properties, using full cost method of accounting | ||||
Proved (includes development and project costs excluded from amortization of $53.6 million and $45.6 million at December 31, 2014 and 2013, respectively) | 11,707,147 | [1] | 10,972,816 | [1] |
Unproved | 290,596 | 531,606 | ||
Less: accumulated depreciation, depletion and impairment | -6,359,149 | -5,762,969 | ||
Net oil and natural gas properties capitalized costs | 5,638,594 | 5,741,453 | ||
Other property, plant and equipment, net | 576,463 | 566,222 | ||
Derivative contracts | 47,003 | 14,126 | ||
Other assets | 165,247 | 121,171 | ||
Total assets | 7,259,225 | 7,684,795 | ||
Current liabilities | ||||
Accounts payable and accrued expenses | 683,392 | 812,488 | ||
Derivative contracts | 0 | 34,267 | ||
Asset retirement obligations | 0 | 87,063 | ||
Deferred tax liability | 95,843 | 0 | ||
Other current liabilities | 5,216 | 0 | ||
Total current liabilities | 784,451 | 933,818 | ||
Long-term debt | 3,195,436 | 3,194,907 | ||
Derivative contracts | 0 | 20,564 | ||
Asset retirement obligations | 54,402 | 337,054 | ||
Other long-term obligations | 15,116 | 22,825 | ||
Total liabilities | 4,049,405 | 4,509,168 | ||
Commitments and contingencies (Note 15) | ||||
Preferred stock, $0.001 par value, 50,000 shares authorized | ||||
Common stock, $0.001 par value, 800,000 shares authorized; 485,932 issued and 484,819 outstanding at December 31, 2014 and 491,609 issued and 490,290 outstanding at December 31, 2013 | 477 | 483 | ||
Additional paid-in capital | 5,204,024 | 5,298,301 | ||
Additional paid-in capital—stockholder receivable | -2,500 | -3,750 | ||
Treasury stock, at cost | -6,980 | -8,770 | ||
Accumulated deficit | -3,257,202 | -3,460,462 | ||
Total SandRidge Energy, Inc. stockholders’ equity | 1,937,825 | 1,825,810 | ||
Noncontrolling interest | 1,271,995 | 1,349,817 | ||
Total equity | 3,209,820 | 3,175,627 | ||
Total liabilities and equity | 7,259,225 | 7,684,795 | ||
8.5% Convertible perpetual preferred stock; 2,650 shares issued and outstanding at December 31, 2014 and 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 with aggregate liquidation preference of $200,000 at December 31, 2013 | ||||
Preferred stock, $0.001 par value, 50,000 shares authorized | ||||
Preferred stock | 0 | 2 | ||
7.0% Convertible perpetual preferred stock; 3,000 shares issued and outstanding at December 31, 2014 and 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 $38.1 million and $23.4 million at December 31, 2014 and 2013, respectively. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Development and project costs excluded from amortization | $53,600,000 | $45,600,000 |
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) | 485,932,000 | 491,609,000 |
Common stock, outstanding (in shares) | 484,819,000 | 490,290,000 |
8.5% Convertible perpetual preferred stock; 2,650 shares issued and outstanding at December 31, 2014 and 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 | 265,000,000 | 265,000,000 |
6.0% Convertible perpetual preferred stock; 2,000 shares issued and outstanding with aggregate liquidation preference of $200,000 at December 31, 2013 | ||
Preferred stock, shares issued (in shares) | 2,000,000 | |
Preferred stock, shares outstanding (in shares) | 0 | 2,000,000 |
Preferred stock, aggregate liquidation preference | 200,000,000 | |
7.0% Convertible perpetual preferred stock; 3,000 shares issued and outstanding at December 31, 2014 and 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 | $300,000,000 | $300,000,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Oil, natural gas and NGL | $1,420,879 | $1,820,278 | $1,759,282 |
Drilling and services | 76,088 | 66,586 | 116,633 |
Midstream and marketing | 55,658 | 58,304 | 40,486 |
Construction contract | 0 | 23,349 | 0 |
Other | 6,133 | 14,871 | 18,241 |
Total revenues | 1,558,758 | 1,983,388 | 1,934,642 |
Expenses | |||
Production | 346,088 | 516,427 | 477,154 |
Production taxes | 31,731 | 32,292 | 47,210 |
Cost of sales | 56,155 | 57,118 | 68,227 |
Midstream and marketing | 49,905 | 53,644 | 39,669 |
Construction contract | 0 | 23,349 | 0 |
Depreciation and depletion—oil and natural gas | 434,295 | 567,732 | 568,029 |
Depreciation and amortization—other | 59,636 | 62,136 | 60,805 |
Accretion of asset retirement obligations | 9,092 | 36,777 | 28,996 |
Impairment | 192,768 | 26,280 | 316,004 |
General and administrative | 113,991 | 207,920 | 241,682 |
Employee termination benefits | 8,874 | 122,505 | 0 |
(Gain) loss on derivative contracts | -334,011 | 47,123 | -241,419 |
Loss on sale of assets | 10 | 399,086 | 3,089 |
Total expenses | 968,534 | 2,152,389 | 1,609,446 |
Income (loss) from operations | 590,224 | -169,001 | 325,196 |
Other income (expense) | |||
Interest expense | -244,109 | -270,234 | -303,349 |
Bargain purchase gain | 0 | 0 | 122,696 |
Loss on extinguishment of debt | 0 | -82,005 | -3,075 |
Other income, net | 3,490 | 12,445 | 4,741 |
Total other expense | -240,619 | -339,794 | -178,987 |
Income (loss) before income taxes | 349,605 | -508,795 | 146,209 |
Income tax (benefit) expense | -2,293 | 5,684 | -100,362 |
Net income (loss) | 351,898 | -514,479 | 246,571 |
Less: net income attributable to noncontrolling interest | 98,613 | 39,410 | 105,000 |
Net income (loss) attributable to SandRidge Energy, Inc. | 253,285 | -553,889 | 141,571 |
Preferred stock dividends | 50,025 | 55,525 | 55,525 |
Income available (loss applicable) to SandRidge Energy, Inc. common stockholders | $203,260 | ($609,414) | $86,046 |
Earnings (loss) per share | |||
Basic (in dollars per share) | $0.42 | ($1.27) | $0.19 |
Diluted (in dollars per share) | $0.42 | ($1.27) | $0.19 |
Weighted average number of common shares outstanding | |||
Basic (in shares) | 479,644 | 481,148 | 453,595 |
Diluted (in shares) | 499,743 | 481,148 | 456,015 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders’ Equity (USD $) | Total | Convertible Perpetual Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Non-controlling Interest |
In Thousands, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2011 | $2,548,950 | $8 | $399 | $4,568,856 | ($6,158) | ($2,937,094) | $922,939 |
Beginning Balance (in shares) at Dec. 31, 2011 | 411,953 | ||||||
Beginning Balance (in shares) at Dec. 31, 2011 | 7,650 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of units by royalty trusts | 587,086 | 587,086 | |||||
Sale of royalty trust units | 139,360 | 79,056 | 60,304 | ||||
Distributions to noncontrolling interest owners | -181,727 | -181,727 | |||||
Issuance of common stock in acquisition (in shares) | 73,962 | ||||||
Issuance of common stock in acquisition | 542,138 | 74 | 542,064 | ||||
Purchase of treasury stock | -11,312 | -11,312 | |||||
Retirement of treasury stock | 0 | -11,312 | 11,312 | ||||
Stock distributions, net of purchases, - retirement plans (in shares) | -345 | ||||||
Stock distributions, net of purchases, - retirement plans | -298 | 2,146 | -2,444 | ||||
Stock-based compensation | 47,228 | 47,228 | |||||
Stock-based compensation excess tax benefit | -16 | -16 | |||||
Issuance of restricted stock awards, net of cancellations (in shares) | 4,789 | ||||||
Issuance of restricted stock awards, net of cancellations | 0 | 3 | -3 | ||||
Net income (loss) | 246,571 | 141,571 | 105,000 | ||||
Convertible perpetual preferred stock dividends | -55,525 | -55,525 | |||||
Ending Balance at Dec. 31, 2012 | 3,862,455 | 8 | 476 | 5,228,019 | -8,602 | -2,851,048 | 1,493,602 |
Ending Balance (in shares) at Dec. 31, 2012 | 7,650 | ||||||
Ending Balance (in shares) at Dec. 31, 2012 | 490,359 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Sale of royalty trust units | 28,985 | 7,289 | 21,696 | ||||
Distributions to noncontrolling interest owners | -206,470 | -206,470 | |||||
Contributions from noncontrolling interest owners | 1,579 | 1,579 | |||||
Issuance of common stock in acquisition | 0 | ||||||
Purchase of treasury stock | -30,126 | -30,126 | |||||
Retirement of treasury stock | 0 | -30,126 | 30,126 | ||||
Stock distributions, net of purchases, - retirement plans (in shares) | -99 | ||||||
Stock distributions, net of purchases, - retirement plans | -435 | -267 | -168 | ||||
Stock-based compensation | 88,397 | 88,397 | |||||
Stock-based compensation excess tax benefit | -4 | -4 | |||||
Payment received on shareholder receivable | 1,250 | 1,250 | |||||
Issuance of restricted stock awards, net of cancellations (in shares) | 30 | ||||||
Issuance of restricted stock awards, net of cancellations | 0 | 7 | -7 | ||||
Net income (loss) | -514,479 | -553,889 | 39,410 | ||||
Convertible perpetual preferred stock dividends | -55,525 | -55,525 | |||||
Ending Balance at Dec. 31, 2013 | 3,175,627 | 8 | 483 | 5,294,551 | -8,770 | -3,460,462 | 1,349,817 |
Ending Balance (in shares) at Dec. 31, 2013 | 490,290 | 490,290 | |||||
Beginning Balance (in shares) at Dec. 31, 2013 | 7,650 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Sale of royalty trust units | 22,119 | 4,091 | 18,028 | ||||
Distributions to noncontrolling interest owners | -193,807 | -193,807 | |||||
Issuance of common stock in acquisition | 0 | ||||||
Purchase of treasury stock | -6,373 | -6,373 | |||||
Retirement of treasury stock | 0 | -6,373 | 6,373 | ||||
Stock distributions, net of purchases, - retirement plans (in shares) | 206 | ||||||
Stock distributions, net of purchases, - retirement plans | 9 | -1,781 | 1,790 | ||||
Stock-based compensation | 23,665 | 23,665 | |||||
Stock-based compensation excess tax benefit | 14 | 14 | |||||
Payment received on shareholder receivable | 1,250 | 1,250 | |||||
Issuance of restricted stock awards, net of cancellations (in shares) | 3,311 | ||||||
Issuance of restricted stock awards, net of cancellations | 0 | 3 | -3 | ||||
Acquisition of ownership interest | -2,730 | -2,074 | -656 | ||||
Repurchase of stock (in shares) | -27,411 | ||||||
Repurchase of common stock | -111,827 | -27 | -111,800 | ||||
Conversion of 6% preferred stock (in shares) | -2,000 | 18,423 | |||||
Conversion of 6% preferred stock | 0 | -2 | 18 | -16 | |||
Net income (loss) | 351,898 | 253,285 | 98,613 | ||||
Convertible perpetual preferred stock dividends | -50,025 | -50,025 | |||||
Ending Balance at Dec. 31, 2014 | $3,209,820 | $6 | $477 | $5,201,524 | ($6,980) | ($3,257,202) | $1,271,995 |
Ending Balance (in shares) at Dec. 31, 2014 | 5,650 | ||||||
Ending Balance (in shares) at Dec. 31, 2014 | 484,819 | 484,819 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $351,898 | ($514,479) | $246,571 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Depreciation, depletion and amortization | 493,931 | 629,868 | 628,834 |
Accretion of asset retirement obligations | 9,092 | 36,777 | 28,996 |
Impairment | 192,768 | 26,280 | 316,004 |
Debt issuance costs amortization | 9,425 | 10,091 | 14,388 |
Amortization of discount, net of premium, on long-term debt | 529 | 1,036 | 2,592 |
Bargain purchase gain | 0 | 0 | -122,696 |
Loss on extinguishment of debt | 0 | 82,005 | 3,075 |
Deferred income tax provision (benefit) | 0 | 3,842 | -100,288 |
(Gain) loss on derivative contracts | -334,011 | 47,123 | -241,419 |
Cash received (paid) on settlement of derivative contracts | 11,796 | -5,879 | 125,932 |
Loss on sale of assets | 10 | 399,086 | 3,089 |
Stock-based compensation | 19,994 | 85,270 | 42,795 |
Other | 407 | 3,929 | 1,387 |
Changes in operating assets and liabilities (decreasing) increasing cash | |||
Receivables | -63,492 | 90,048 | -141,534 |
Costs in excess of billings | 0 | 11,229 | -11,229 |
Prepaid expenses | 9,549 | -7,934 | -5,952 |
Other current assets | 3,164 | -3,269 | -1,586 |
Other assets and liabilities, net | -1,132 | 5,777 | 34,447 |
Accounts payable and accrued expenses | -66,492 | 101,453 | 44,115 |
Asset retirement obligations | -16,322 | -133,623 | -84,361 |
Net cash provided by operating activities | 621,114 | 868,630 | 783,160 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures for property, plant and equipment | -1,553,332 | -1,496,731 | -2,146,372 |
Acquisitions of assets | -18,384 | -17,028 | -840,740 |
Proceeds from sale of assets | 714,475 | 2,584,115 | 431,167 |
Net cash (used in) provided by investing activities | -857,241 | 1,070,356 | -2,555,945 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from borrowings | 0 | 0 | 1,850,344 |
Repayments of borrowings | 0 | -1,115,500 | -366,029 |
Premium on debt redemption | 0 | -61,997 | -844 |
Debt issuance costs | -3,947 | -91 | -48,538 |
Proceeds from issuance of royalty trust units | 0 | 0 | 587,086 |
Proceeds from the sale of royalty trust units | 22,119 | 28,985 | 139,360 |
Noncontrolling interest distributions | -193,807 | -206,470 | -181,727 |
Noncontrolling interest contributions | 0 | 1,579 | 0 |
Acquisition of ownership interest | -2,730 | 0 | 0 |
Stock-based compensation excess tax benefit | 14 | -4 | -16 |
Purchase of treasury stock | -8,702 | -32,976 | -14,723 |
Repurchase of common stock | -111,827 | 0 | 0 |
Dividends paid—preferred | -55,525 | -55,525 | -55,525 |
Payment received on shareholder receivable | 1,250 | 1,250 | 0 |
Cash (paid) received on settlement of financing derivative contracts | -44,128 | 6,660 | -34,518 |
Net cash (used in) provided by financing activities | -397,283 | -1,434,089 | 1,874,870 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -633,410 | 504,897 | 102,085 |
CASH AND CASH EQUIVALENTS, beginning of year | 814,663 | 309,766 | 207,681 |
CASH AND CASH EQUIVALENTS, end of year | $181,253 | $814,663 | $309,766 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
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 and disposal 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 statements 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 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. | |
Use of Estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“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 NGL reserves; cash flow estimates used in impairment tests of long-lived assets; depreciation, depletion and amortization; asset retirement obligations; assignments of fair value and allocations of purchase price in connection with business combinations; determinations of significant alterations to the full cost pool and related estimates of fair value for allocations of divested oil and natural gas properties that result in substantial economic differences between the properties divested and the properties remaining; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes these estimates are reasonable, actual results could differ significantly. | |
Cash and Cash Equivalents. The Company considers all highly-liquid instruments with an original maturity of three months or less to be cash equivalents as these instruments are readily convertible to known amounts of cash and bear insignificant risk of changes in value due to their short maturity period. | |
Accounts Receivable, Net. The Company has receivables for sales of oil, natural gas and NGLs, as well as receivables related to the exploration, production and treating services for oil and natural gas. An allowance for doubtful accounts has been established based on management’s review of the collectability of the receivables in light of historical experience, the nature and volume of the receivables and other subjective factors. Accounts receivable are charged against the allowance, upon approval by management, when they are deemed uncollectible. Refer to Note 6 for further information on the Company’s accounts receivable and allowance for doubtful accounts. | |
Fair Value of Financial Instruments. Certain of the Company’s financial assets and liabilities are measured at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Company’s financial instruments, not otherwise recorded at fair value, consist primarily of cash, trade receivables, trade payables and long-term debt. The carrying value of cash, trade receivables and trade payables are considered to be representative of their respective fair values due to the short-term maturity of these instruments. See Note 5 for further discussion of the Company’s fair value measurements. | |
Fair Value of Non-financial Assets and Liabilities. The Company also applies fair value accounting guidance to initially, or as events dictate, measure non-financial assets and liabilities such as those obtained through business acquisitions, property, plant and equipment and asset retirement obligations. These assets and liabilities are subject to fair value adjustments only in certain circumstances and are not subject to recurring revaluations. Fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two as considered appropriate based on the circumstances. Under the discounted cash flow method, estimated future cash flows are based on management’s expectations for the future and include estimates of future oil and natural gas production or other applicable sales estimates, operational costs and a risk-adjusted discount rate. The Company may use the present value of estimated future cash inflows and/or outflows or third-party offers or prices of comparable assets with consideration of current market conditions to value its non-financial assets and liabilities when circumstances dictate determining fair value is necessary. Given the significance of the unobservable nature of a number of the inputs, these are considered Level 3 on the fair value hierarchy discussed in Note 5. | |
Derivative Financial Instruments. To manage risks related to fluctuations in prices attributable to its expected oil and natural gas production, the Company enters into oil and natural gas derivative contracts. The Company may also, from time to time, enter into interest rate swaps in order to manage risk associated with its exposure to variable interest rates. | |
The Company recognizes its derivative instruments as either assets or liabilities at fair value with changes in fair value recognized in earnings unless designated as a hedging instrument with specific hedge accounting criteria having been met. The Company has elected not to designate price risk management activities as accounting hedges under applicable accounting guidance, and, accordingly, accounts for its commodity derivative contracts at fair value with changes in fair value reported currently in earnings. The Company nets derivative assets and liabilities whenever it has a legally enforceable master netting agreement with the counterparty to a derivative contract. The related cash flow impact of the Company’s derivative activities are reflected as cash flows from operating activities unless the derivative contract contains a significant financing element, in which case, cash settlements are classified as cash flows from financing activities in the consolidated statements of cash flows. See Note 13 for further discussion of the Company’s derivatives. | |
Oil and Natural Gas Operations. The Company uses the full cost method to account for its oil and natural gas properties. Under full cost accounting, all costs directly associated with the acquisition, exploration and development of oil, natural gas and NGL reserves are capitalized into a full cost pool. These capitalized costs include costs of all unproved properties and internal costs directly related to the Company’s acquisition, exploration and development activities and capitalized interest. The Company capitalized internal costs of $55.4 million, $74.7 million and $61.3 million to the full cost pool in 2014, 2013 and 2012, respectively. Capitalized costs are amortized using the unit-of-production method. Under this method, depreciation and depletion is computed at the end of each quarter by multiplying total production for the quarter by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base plus future development costs by net equivalent proved reserves at the beginning of the quarter. | |
Costs associated with unproved properties are excluded from the amortizable cost base until a determination has been made as to the existence of proved reserves. Unproved properties are reviewed at the end of each quarter to determine whether the costs incurred should be reclassified to the full cost pool and, thereby, subjected to amortization. The costs associated with unproved properties relate primarily to costs to acquire unproved acreage. Unproved leasehold costs are transferred to the amortization base with the costs of drilling the related well upon determination of the existence of proved reserves or upon impairment of a lease. All items classified as unproved property are assessed, on an individual basis or as a group if properties are individually insignificant, on a quarterly basis for possible impairment or reduction in value. The assessment includes consideration of various factors, including, but not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. Costs of seismic data are allocated to various unproved leaseholds and transferred to the amortization base with the associated leasehold costs on a specific project basis. | |
Under the full cost method of accounting, total capitalized costs of oil and natural gas properties, net of accumulated depreciation, depletion and impairment, less related deferred income taxes may not exceed an amount equal to the present value of future net revenues from proved reserves, discounted at 10% per annum, plus the lower of cost or fair value of unproved properties, plus estimated salvage value, less the related tax effects (the “ceiling limitation”). A ceiling limitation calculation is performed at the end of each quarter. If total capitalized costs, net of accumulated depreciation, depletion and impairment, less related deferred taxes are greater than the ceiling limitation, a write-down or impairment of the full cost pool is required. A write-down of the carrying value of the full cost pool is a non-cash charge that reduces earnings and impacts stockholders’ equity in the period of occurrence and typically results in lower depreciation and depletion expense in future periods. Once incurred, a write-down is not reversible at a later date. | |
The ceiling limitation calculation is prepared using the 12-month oil and natural gas average price for the most recent 12 months as of the balance sheet date and as adjusted for basis or location differentials, held constant over the life of the reserves (“net wellhead prices”). If applicable, these net wellhead prices would be further adjusted to include the effects of any fixed price arrangements for the sale of oil and natural gas. Derivative contracts that qualify and are designated as cash flow hedges are included in estimated future cash flows, although the Company historically has not designated any of its derivative contracts as cash flow hedges and has therefore not included its derivative contracts in estimating future cash flows. The future cash outflows associated with future development or abandonment of wells are included in the computation of the discounted present value of future net revenues for purposes of the ceiling limitation calculation. | |
Sales and abandonments of oil and natural gas properties being amortized are accounted for as adjustments to the full cost pool, with no gain or loss recognized, unless the adjustments would significantly alter the relationship between capitalized costs and proved oil, natural gas and NGL reserves. A significant alteration would not ordinarily be expected to occur upon the sale of reserves involving less than 25% of the proved reserve quantities of a cost center. | |
Property, Plant and Equipment, Net. Other capitalized costs, including drilling equipment, natural gas gathering and treating equipment, transportation equipment and other property and equipment are carried at cost. Renewals and improvements are capitalized while repairs and maintenance are expensed. Depreciation of such property and equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from 10 to 39 years for buildings and 3 to 30 years for equipment. When property and equipment components are disposed of, the cost and the related accumulated depreciation are removed and any resulting gain or loss is reflected in the consolidated statements of operations. | |
Realization of the carrying value of property and equipment is reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying value of such asset may not be recoverable. Assets are considered to be impaired if a forecast of undiscounted estimated future net operating cash flows directly related to the asset or asset group including disposal value, if any, is less than the carrying amount of the asset or asset group. If an asset or asset group is considered to be impaired, the impairment loss is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. See Note 8 for further discussion of impairments. | |
Capitalized Interest. Interest is capitalized on assets being made ready for use using a weighted average interest rate based on the Company’s borrowings outstanding during that time. During 2014, 2013 and 2012, interest of approximately $14.7 million, $11.7 million and $10.1 million, respectively, was capitalized on unproved properties that were not currently being depreciated or depleted and on which exploration activities were in progress. Additionally, interest of $5.0 million, $4.9 million and $4.7 million was capitalized in 2014, 2013 and 2012, respectively, on midstream and corporate assets which were under construction. | |
Debt Issuance Costs. The Company amortizes debt issuance costs related to its long-term debt as interest expense over the scheduled maturity period of the related debt. The Company includes unamortized debt issuance costs in other assets in the consolidated balance sheets. Upon retirement of debt, any unamortized costs are written off and included in the determination of the gain or loss on extinguishment of debt. | |
Restricted Deposits. Restricted deposits represent bank trust and escrow accounts required by the Bureau of Ocean Energy Management, Bureau of Safety and Environmental Enforcement, surety bond underwriters, purchase agreements or other settlement agreements to satisfy the Company’s eventual responsibility to plug and abandon wells and remove structures when certain offshore fields are no longer in use. Such restricted deposits are included in other assets in the accompanying consolidated balance sheet as of December 31, 2013. The Company did not have restricted deposits as of December 31, 2014. | |
Goodwill. During the year ended December 31, 2012, the Company impaired goodwill previously recorded and assigned to its exploration and production segment in conjunction with an acquisition in 2010. See Note 8 for further discussion of the goodwill impairment test performed. | |
Investments. Investments in marketable equity securities have been designated as available for sale and measured at fair value pursuant to the fair value option which requires unrealized gains and losses be reported in earnings. | |
Asset Retirement Obligations. The Company owns oil and natural gas properties that require expenditures to plug, abandon and remediate wells at the end of their productive lives, in accordance with applicable federal and state laws. Liabilities for these asset retirement obligations are recorded in the period in which the liability is incurred (at the time the wells are drilled or acquired) at the estimated present value at the asset’s inception, with the offsetting increase to property cost. These property costs are depreciated on a unit-of-production basis within the full cost pool. The liability accretes each period until it is settled or the well is sold, at which time the liability is removed. Both the accretion and the depreciation are included in the consolidated statement of operations. The Company determines its asset retirement obligations by calculating the present value of estimated expenses related to the liability. Estimating future asset retirement obligations requires management to make estimates and judgments regarding timing, existence of a liability and what constitutes adequate restoration. Inherent in the present value calculation rates are the timing of settlement and changes in the legal, regulatory, environmental and political environments, which are subject to change. See Note 14 for further discussion of the Company’s asset retirement obligations. | |
In certain instances, the Company may be required to maintain deposits to escrow accounts for future plugging and abandonment obligations. See Restricted Deposits discussed above. | |
Revenue Recognition and Natural Gas Balancing. Sales of oil, natural gas and NGLs are recorded when title of oil, natural gas and NGL production passes to the customer, net of royalties, discounts and allowances, as applicable. Taxes assessed by governmental authorities on oil, natural gas and NGL sales are presented separately from such revenues and included in production tax expense in the consolidated statements of operations. | |
The Company accounts for natural gas production imbalances using the sales method, whereby it recognizes revenue on all natural gas sold to its customers notwithstanding the fact that its ownership may be less than 100% of the natural gas sold. Liabilities are recorded for imbalances greater than the Company’s proportionate share of remaining estimated natural gas reserves. The Company has recorded a liability for natural gas imbalance positions related to natural gas properties with insufficient proved reserves of $1.4 million and $2.6 million at December 31, 2014 and 2013, respectively. The Company includes the gas imbalance positions in other long-term obligations in the consolidated balance sheets. | |
The Company accounted for its construction contract, discussed in Note 11, using the completed-contract method, under which contract revenues and costs are recognized when work under the contract is completed or substantially completed and assets have been transferred. In the interim, costs incurred on and billings related to contracts in process are accumulated on the balance sheet. Contract losses are recorded at the time it is determined that a loss will be incurred. Contract gains, if any, are recorded upon substantial completion of the construction project. | |
The Company recognizes revenues and expenses generated from daywork and footage drilling contracts as the services are performed as the Company does not bear the risk of completion of the well. The Company may receive lump-sum fees for the mobilization of equipment and personnel. Mobilization fees received and costs incurred to mobilize a rig from one location to another are recognized at the time mobilization services are performed. | |
In general, natural gas purchased and sold by the midstream business is priced at a published daily or monthly index price. Sales to wholesale customers typically incorporate a premium for managing their transmission and balancing requirements. Midstream services revenues are recognized upon delivery of natural gas to customers and/or when services are rendered, pricing is determined and collectability is reasonably assured. Revenues from third-party midstream services are presented on a gross basis, since the Company acts as a principal by taking ownership of the natural gas purchased and taking responsibility of fulfillment for natural gas volumes sold. | |
Stock-Based Compensation. The Company grants restricted stock awards to members of its Board of Directors (the “Board”) and its employees. Such awards and the related stock-based compensation cost are measured based on the calculated fair value of the award on the grant date. The expense, net of estimated forfeitures, is recognized on a straight-line basis over the employee’s requisite service period, generally the vesting period of the award. To the extent stock-based compensation cost relates to employees directly involved in exploration and development activities, such amounts are capitalized to oil and natural gas properties. Amounts not capitalized are recognized as general and administrative expense, production expense, cost of sales and midstream and marketing expense in the consolidated statements of operations. The related excess tax benefit received upon vesting of restricted stock, if any, is reflected in the consolidated statements of cash flows as a financing activity. The related excess tax expense due upon vesting of restricted stock, if any, is reflected in the consolidated statements of cash flows as an operating activity. | |
Performance Unit Compensation. The Company awards performance units, which contain a market-based performance component with cash settlement at the end of the performance period, to certain members of senior management. The Company recognizes a liability and expense for performance unit compensation for the portion earned over the requisite service period in an amount equal to the fair value of the performance units granted. Changes in the fair value of the units for which service has been met are recognized as compensation expense with a corresponding adjustment to the liability. To the extent performance unit compensation cost relates to those directly involved in exploration and development activities, such amounts are capitalized to oil and natural gas properties. Amounts not capitalized are recognized as general and administrative expense, production expense, cost of sales and midstream and marketing expense in the consolidated statements of operations. | |
Advertising Costs. The Company expenses advertising costs as incurred. Advertising and promotional costs were $1.3 million, $5.1 million, and $11.8 million, respectively, during the years ended December 31, 2014, 2013 and 2012. | |
Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the amounts of assets and liabilities reported for financial statement purposes and their tax basis. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. | |
The Company has elected an accounting policy in which interest and penalties on income taxes are presented as a component of the income tax provision, rather than as a component of interest expense. Interest and penalties resulting from the underpayment or the late payment of income taxes due to a taxing authority and interest and penalties accrued relating to income tax contingencies, if any, are presented, on a net of tax basis, as a component of the income tax provision. | |
Earnings per Share. Basic earnings per common share is calculated by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing earnings available to common stockholders by the weighted average number of diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted earnings per share calculation consist of unvested restricted stock awards, using the treasury method, and convertible preferred stock. When a loss exists, all potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share. See Note 19 for the Company’s earnings per share calculation. | |
Commitments and Contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Environmental expenditures are expensed or capitalized, as appropriate, depending on future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefit are expensed. Liabilities related to future costs are recorded on an undiscounted basis when environmental assessments and/or remediation activities are probable and costs can be reasonably estimated. See Note 15 for discussion of the Company’s commitments and contingencies. | |
Concentration of Risk. All of the Company’s derivative transactions have been carried out in the over-the-counter market. The entry into derivative transactions in the over-the-counter market involves the risk that the counterparties may be unable to meet the financial terms of the transactions. The counterparties for all of the Company’s derivative transactions have an “investment grade” credit rating. The Company monitors on an ongoing basis the credit ratings of its derivative counterparties and considers its counterparties’ credit default risk ratings in determining the fair value of its derivative contracts. The Company’s derivative contracts are with multiple counterparties to minimize its exposure to any individual counterparty. | |
A default by the Company under its senior secured revolving credit facility (the “senior credit facility”) constitutes a default under its derivative contracts with counterparties that are lenders under the senior credit facility. The Company does not require collateral or other security from counterparties to support derivative instruments. The Company has master netting agreements with all of its derivative counterparties, which allow the Company to net its derivative assets and liabilities with the same counterparty. 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 the counterparties under the derivative contracts. The Company’s loss is further limited as any amounts due from a defaulting counterparty that is a lender under the senior credit facility can be offset against amounts owed, if any, to such counterparty under the Company’s senior credit facility. | |
The Company operates a substantial portion of its oil and natural gas properties. As the operator of a property, the Company makes full payment for costs associated with the property and seeks reimbursement from the other working interest owners in the property for their share of those costs. The Company’s joint interest partners consist primarily of independent oil and natural gas producers. If the oil and natural gas exploration and production industry in general was adversely affected, the ability of the joint interest partners to reimburse the Company could be adversely affected. | |
The purchasers of the Company’s oil, natural gas and NGL production consist primarily of independent marketers, major oil and natural gas companies and gas pipeline companies. See Note 22 for information regarding the Company’s major customers. The Company believes alternate purchasers are available in its areas of operations and does not believe the loss of any one purchaser would materially affect the Company’s ability to sell the oil, natural gas and NGLs it produces. | |
Recent Accounting Pronouncements Not Yet Adopted. In April 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which amends the definition of a discontinued operations to elevate the threshold for a disposal transaction to qualify as a discontinued operation and requires entities to provide additional disclosures for disposal transactions that do not meet the discontinued operations criteria. The guidance is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. The guidance will be adopted January 1, 2015 and the Company is currently evaluating the impact of the adoption on its classification of future dispositions as discontinued operations. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” 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 the guidance is 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. | |
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the effect the guidance will have on its related disclosures. | |
In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis," which makes changes to both the variable interest model and the voting model, affecting all reporting entities involved with limited partnerships or similar entities, particularly industries such as the oil and gas, transportation and real estate sectors. In addition to reducing the number of consolidation models from four to two, the guidance simplifies and improves current guidance by placing more emphasis on risk of loss when determining a controlling financial interest and reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a VIE. The requirements of the guidance are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. The Company is currently evaluating the effect, if any, that the updated standard will have on its consolidated financial statements and related disclosures. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information | |||||||||||
Supplemental disclosures to the consolidated statements of cash flows are presented below: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||
Cash paid for interest, net of amounts capitalized | $ | (235,793 | ) | $ | (274,850 | ) | $ | (257,152 | ) | |||
Cash received (paid) for income taxes | $ | 1,928 | $ | (4,610 | ) | $ | (1,324 | ) | ||||
Supplemental Disclosure of Noncash Investing and Financing Activities | ||||||||||||
Deposit on pending sale | $ | — | $ | (255,000 | ) | $ | 255,000 | |||||
Change in accrued capital expenditures | $ | (55,557 | ) | $ | 72,848 | $ | (77,610 | ) | ||||
Asset retirement costs capitalized | $ | 4,968 | $ | 5,078 | $ | 7,479 | ||||||
Common stock issued in connection with acquisition | $ | — | $ | — | $ | 542,138 | ||||||
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Acquisitions and Divestitures | Acquisitions and Divestitures | |||||||||||
2012 Acquisitions and Divestitures | ||||||||||||
Sale of Working Interests and Associated Drilling Carry Commitment. In January 2012, the Company completed a transaction whereby it sold working interests in the Mississippian formation to Repsol E&P USA, Inc. (“Repsol”). The Company received cash proceeds of $272.5 million for the sale of working interests and received a drilling carry commitment to fund a portion of its future drilling and completion costs within an area of mutual interest in the amount of $750.0 million. Proceeds received from this transaction were reflected as a reduction of oil and gas properties with no gain or loss recognized. See additional discussion of the associated drilling carry under this agreement and a similar agreement entered into in 2011 with Atinum MidCon I, LLC (“Atinum”) in Note 7. | ||||||||||||
Dynamic Acquisition. The Company acquired 100% of the equity interests of Dynamic Offshore Resources, LLC (“Dynamic”) in April 2012 for total consideration of approximately $1.2 billion, comprised of approximately $680.0 million in cash and approximately 74 million shares of SandRidge common stock (the “Dynamic Acquisition”). The Dynamic Acquisition expanded the Company’s presence in the Gulf of Mexico, adding oil, natural gas and NGL reserves and production to its existing asset base in this area. | ||||||||||||
In the second quarter of 2013, the Company completed its valuation of the Dynamic Acquisition with no adjustments in 2013 to the valuation of assets acquired and liabilities assumed, which are included in the following table (in thousands, except stock price): | ||||||||||||
Consideration(1) | ||||||||||||
Shares of SandRidge common stock issued | 73,962 | |||||||||||
SandRidge common stock price | $ | 7.33 | ||||||||||
Fair value of common stock issued | 542,138 | |||||||||||
Cash consideration(2) | 680,000 | |||||||||||
Cash balance adjustment(3) | 13,091 | |||||||||||
Total purchase price | $ | 1,235,229 | ||||||||||
Fair Value of Liabilities Assumed | ||||||||||||
Current liabilities | $ | 129,363 | ||||||||||
Asset retirement obligations(4) | 315,922 | |||||||||||
Long-term deferred tax liability(5) | 100,288 | |||||||||||
Other long-term liabilities | 4,469 | |||||||||||
Amount attributable to liabilities assumed | 550,042 | |||||||||||
Total purchase price plus liabilities assumed | 1,785,271 | |||||||||||
Fair Value of Assets Acquired | ||||||||||||
Current assets | 142,027 | |||||||||||
Oil and natural gas properties(6) | 1,746,753 | |||||||||||
Other property, plant and equipment | 1,296 | |||||||||||
Other non-current assets | 17,891 | |||||||||||
Amount attributable to assets acquired | 1,907,967 | |||||||||||
Bargain purchase gain(7) | $ | (122,696 | ) | |||||||||
____________________ | ||||||||||||
-1 | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. | |||||||||||
-2 | Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022. | |||||||||||
-3 | In accordance with the acquisition agreement, the Company remitted to the seller a cash payment equal to Dynamic’s average daily cash balance for the 30-day period ending on the second day prior to closing. This resulted in an additional cash payment by the Company of $13.1 million at closing. | |||||||||||
-4 | The estimated fair value of the acquired asset retirement obligations was determined using the Company’s credit adjusted risk-free rate. | |||||||||||
-5 | The net deferred tax liability is primarily a result of the difference between the estimated fair value and the Company’s expected tax basis in the assets acquired and liabilities assumed. The net deferred tax liability also includes the effects of deferred tax assets associated with net operating losses and other tax attributes acquired as a result of the Dynamic Acquisition. | |||||||||||
-6 | The fair value of oil and natural gas properties acquired was estimated using a discounted cash flow model, with future cash flows estimated based upon projections of oil and natural gas reserve quantities and weighted average oil and natural gas prices of $113.62 per barrel of oil and $3.83 per Mcf of natural gas, after adjustment for transportation fees and regional price differentials. The commodity prices utilized were based upon commodity strip prices as of April 17, 2012 for the first four years and escalated for inflation at a rate of 2.0% annually beginning with the fifth year through the end of production. Future cash flows were discounted using an industry weighted average cost of capital rate. | |||||||||||
-7 | The bargain purchase gain resulted from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. | |||||||||||
Market assumptions of future commodity prices, projections of estimated quantities of oil, natural gas and NGL reserves, expectations for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates and risk-adjusted discount rates were used by the Company to estimate the fair market value of the oil and natural gas properties acquired. Based on the unobservable nature of certain of these assumptions, the valuation is considered Level 3 under the fair value hierarchy, as described in Note 5. | ||||||||||||
The following unaudited pro forma combined results of operations for the year ended December 31, 2012 are presented as though the Dynamic Acquisition had been completed as of January 1, 2011. The pro forma combined results of operations for the year ended December 31, 2012 have been prepared by adjusting the historical results of the Company to include the historical results of Dynamic, certain reclassifications to conform Dynamic’s presentation and accounting policies to the Company’s and to exclude the bargain purchase gain, the partial valuation allowance release and certain acquisition costs. The supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented. The pro forma results of operations do not include any cost savings or other synergies that resulted from the Dynamic Acquisition or any estimated costs incurred to integrate Dynamic. | ||||||||||||
Year Ended December 31, 2012(1) | ||||||||||||
(In thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Revenues | $ | 2,112,576 | ||||||||||
Net income | $ | 39,563 | ||||||||||
Loss applicable to SandRidge Energy, Inc. common stockholders | $ | (120,962 | ) | |||||||||
Loss per common share | ||||||||||||
Basic | $ | (0.25 | ) | |||||||||
Diluted | $ | (0.25 | ) | |||||||||
____________________ | ||||||||||||
-1 | Pro forma net income, loss applicable to SandRidge Energy, Inc. common stockholders and loss per common share exclude a $122.7 million bargain purchase gain, a $100.3 million partial valuation allowance release included in income tax benefit, $10.9 million of fees incurred to secure financing for the Dynamic Acquisition included in interest expense and $13.0 million of transaction costs incurred and included in general and administrative expense in the accompanying consolidated statement of operations for the year ended December 31, 2012. | |||||||||||
Revenues of $365.0 million and income from operations of $81.5 million associated with Dynamic are included in the accompanying consolidated statement of operations for the year ended December 31, 2012. Additionally, the Company incurred $13.0 million in acquisition-related costs for the Dynamic Acquisition, which are included in general and administrative expense in the accompanying consolidated statement of operations for the year ended December 31, 2012. | ||||||||||||
Sale of Tertiary Recovery Properties. In June 2012, the Company sold its tertiary recovery properties located in the Permian Basin area of west Texas for approximately $130.8 million, net of post-closing adjustments. The sale of the acreage and working interests in wells was accounted for as an adjustment to the full cost pool with no gain or loss recognized. | ||||||||||||
Acquisition of Gulf of Mexico Properties. In June 2012, the Company acquired oil and natural gas properties in the Gulf of Mexico (the “Gulf of Mexico Properties”) for approximately $43.3 million, net of purchase price and post-closing adjustments. This acquisition expanded the Company’s presence in the Gulf of Mexico, adding oil, natural gas and NGL reserves and production to its existing asset base in this area. | ||||||||||||
This acquisition qualified as a business combination for accounting purposes and, as such, the Company estimated the fair value of the acquired properties as of June 20, 2012, which was the date on which the Company obtained control of the properties. The fair value was estimated using a discounted cash flow model based upon market assumptions of future commodity prices, projections of estimated quantities of oil, natural gas and NGL reserves, expectations for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates and risk-adjusted discount rates. Based on the unobservable nature of certain of these assumptions, the valuation is considered Level 3 under the fair value hierarchy, as described in Note 5. | ||||||||||||
The Company estimated the consideration paid for these properties approximated the consideration that would be paid by a typical market participant. As a result, no goodwill or bargain purchase gain was recognized in conjunction with the purchase of these properties. | ||||||||||||
The Company completed its valuation of assets acquired and liabilities assumed related to the acquired Gulf of Mexico Properties in the first quarter of 2013 and updated estimates used in the preliminary purchase price allocation with respect to certain accruals, resulting in an adjustment of $4.8 million to proved developed and undeveloped properties. The following table summarizes the consideration paid to acquire the properties and the final valuation of assets acquired and liabilities assumed as of June 20, 2012 (in thousands): | ||||||||||||
Consideration paid | ||||||||||||
Cash, net of purchase price adjustments | $ | 43,282 | ||||||||||
Fair value of identifiable assets acquired and liabilities assumed | ||||||||||||
Proved developed and undeveloped properties | $ | 98,725 | ||||||||||
Asset retirement obligations | (55,443 | ) | ||||||||||
Total identifiable net assets | $ | 43,282 | ||||||||||
The following unaudited pro forma combined results of operations for the year ended December 31, 2012 are presented as though the Company acquired the Gulf of Mexico Properties as of January 1, 2011. The pro forma combined results of operations for the year ended December 31, 2012 have been prepared by adjusting the historical results of the Company to include the historical results of the acquired properties and estimates of the effect of the transaction on the combined results. The supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved had the transaction been in effect for the periods presented. | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||
(In thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Revenues | $ | 1,963,058 | ||||||||||
Net income | $ | 247,035 | ||||||||||
Income available to SandRidge Energy, Inc. common stockholders | $ | 86,510 | ||||||||||
Earnings per common share | ||||||||||||
Basic | $ | 0.19 | ||||||||||
Diluted | $ | 0.19 | ||||||||||
Revenues of $26.2 million and earnings of $19.1 million generated by the acquired properties are included in the accompanying consolidated statement of operations for the year ended December 31, 2012. The Company incurred $0.2 million in acquisition-related costs in conjunction with the transaction which are included in general and administrative expense in the accompanying consolidated statement of operations for the year ended December 31, 2012. | ||||||||||||
2013 Divestiture | ||||||||||||
Sale of Permian Properties. On February 26, 2013, the Company sold its oil and natural gas properties in the Permian Basin area of west Texas, excluding the assets associated with the SandRidge Permian Trust area of mutual interest (the “Permian Properties”) for $2.6 billion, including certain post-closing adjustments that were finalized in the third quarter of 2013. This transaction resulted in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company recorded a $398.9 million loss on the sale. The loss is included in loss on sale of assets in the accompanying consolidated statement of operations for the year ended December 31, 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 consolidated statement of operations for the year ended December 31, 2013. | ||||||||||||
The following table presents revenues and direct operating expenses of the Permian Properties included in the accompanying consolidated statements of operations for the years ended December 31, 2013 and 2012 (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013(1) | 2012 | |||||||||||
Revenues | $ | 68,027 | $ | 566,075 | ||||||||
Direct operating expenses | $ | 17,453 | $ | 130,337 | ||||||||
____________________ | ||||||||||||
-1 | Includes revenues and direct operating expenses through February 26, 2013, the date of sale. | |||||||||||
2014 Divestiture | ||||||||||||
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 20 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 December 31, 2014, the fair value of the guarantees was approximately $5.1 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 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 agreed to 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. At the one year anniversary of the closing date, the Company was scheduled to 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 consolidated balance sheet at December 31, 2014. The Company has not incurred any costs as a result of this guarantee, which, as of February 25, 2015, it was permitted to terminate under the terms of the agreement with Fieldwood, and expects to receive approximately $14.0 million from Fieldwood for half of the restricted deposits associated with the Gulf Properties in the first quarter of 2015. | ||||||||||||
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 consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014(1) | 2013 | 2012 | ||||||||||
Revenues | $ | 90,920 | $ | 627,236 | $ | 449,420 | ||||||
Expenses | $ | 63,674 | $ | 491,991 | $ | 360,209 | ||||||
____________________ | ||||||||||||
-1 | Includes revenues and expenses through February 25, 2014, the date of the sale. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | ||||||||||||
Dec. 31, 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 the 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”). 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 fulfilled or will fulfill its drilling obligations to the Royalty Trusts as discussed below 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/or subordinated units, that could potentially be significant to the Royalty Trusts. As a result, the Company consolidates the activities of the Royalty Trusts. The common units of the Royalty Trusts owned by third parties are reflected as noncontrolling interest in the consolidated financial statements. | |||||||||||||
Common and subordinated units outstanding as of December 31, 2014 for each Royalty Trust are as follows: | |||||||||||||
Mississippian Trust I (1) | Permian Trust | Mississippian Trust II | |||||||||||
Total outstanding common units(1) | 28,000,000 | 39,375,000 | 37,293,750 | ||||||||||
Total outstanding subordinated units(2) | — | 13,125,000 | 12,431,250 | ||||||||||
____________________ | |||||||||||||
-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 | All outstanding subordinated units are owned by SandRidge. | ||||||||||||
The Company’s beneficial interest in the Royalty Trusts at December 31, 2014 and 2013 were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Mississippian Trust I | 26.9 | % | 26.9 | % | |||||||||
Permian Trust | 25 | % | 28.5 | % | |||||||||
Mississippian Trust II | 37.6 | % | 37.6 | % | |||||||||
Royalty Interests. Concurrent with the closing of the Mississippian Trust I and the Permian Trust initial public offerings in 2011 and the closing of the Mississippian Trust II initial public offering in 2012, the Company conveyed certain royalty interests to each Royalty Trust in exchange for (i) the net proceeds of the offering and (ii) common and subordinated units representing beneficial interests in the Royalty Trust. Royalty interests conveyed to the Royalty Trusts were in certain existing wells and wells to be drilled on oil and natural gas properties leased by the Company in defined areas of mutual interest. Proceeds from the Mississippian Trust II initial public offering of $587.1 million are included as cash flows from financing activities in the accompanying consolidated statement of cash flows for the year ended December 31, 2012. | |||||||||||||
Pursuant to the agreements governing the Royalty Trusts, the Mississippian Trust I will terminate in 2030 and the Permian Trust and Mississippian Trust II will terminate in 2031. Upon termination, 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. | |||||||||||||
Drilling Obligations. The Company and one of its wholly owned subsidiaries entered into a development agreement with each Royalty Trust upon conveyance of the royalty interests that obligated the Company to drill, or cause to be drilled, a specified number of wells which are also subject to the royalty interests within respective areas of mutual interest by a specified date. 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 were to be drilled in order to secure the estimated amount of drilling costs for the Royalty Trust’s interests in the wells. The total amount that may be recovered by each Royalty Trust under its respective lien has been proportionately reduced as the Company has drilled and completed the associated development wells. The Company fulfilled its drilling obligation to the Mississippian Trust I in the second quarter of 2013 and fulfilled its obligation to the Permian Trust in the fourth quarter of 2014 and the related liens were released. As of December 31, 2014, the total maximum amount recoverable by the Mississippian Trust II under the remaining lien was approximately $19.5 million. The Company is obligated to fulfill its drilling obligation to the Mississippian Trust II by December 31, 2016. | |||||||||||||
Distributions. The Royalty Trusts make quarterly cash distributions to unitholders based on calculated distributable income. Outstanding subordinated units, which constitute 25% of each Royalty Trust’s total outstanding units during the subordination period as described below, are entitled to receive pro rata distributions from the Royalty Trusts each quarter if and to the extent there is sufficient cash to provide a cash distribution on the common units that is no less than the applicable quarterly subordination threshold. If there is not sufficient cash to fund such a distribution on all common units, the distribution to be made with respect to the subordinated units 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. As holder of the subordinated 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. | |||||||||||||
Quarterly distributions declared and paid by the Royalty Trusts during the years ended December 31, 2014, 2013 and 2012 as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014(1) | 2013(2) | 2012(3) | |||||||||||
Total distributions | $ | 234,326 | $ | 299,674 | $ | 274,979 | |||||||
Distributions to third-party unitholders | $ | 193,807 | $ | 206,470 | $ | 181,727 | |||||||
____________________ | |||||||||||||
-1 | Subordination thresholds were not met for the Mississippian Trust I’s first or second quarter 2014 distributions, the Permian Trust’s second, third or fourth quarter 2014 distributions or for the Mississippian Trust II’s distributions for the year ended December 31, 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 second, third or fourth quarter 2013 distributions, the Permian Trust’s second quarter 2013 distribution or for the Mississippian Trust II’s fourth quarter 2013 distribution, resulting in reduced distributions to the Company on its subordinated units for this period. | ||||||||||||
-3 | The Company received incentive distributions from the Mississippian Trust I during the first and second quarters of 2012. | ||||||||||||
See Note 21 for discussion of the Royalty Trusts’ distributions announced in January 2015. | |||||||||||||
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 automatically convert into common units on a one-for-one basis and the Company’s right to receive incentive distributions terminates. In the third quarter of 2014, the Mississippian Trust I’s subordinated units, all of which were held by SandRidge, converted to common units. Beginning with the distribution made in November 2014, all of the Mississippian Trust I’s common units 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. | |||||||||||||
Loan Commitment. Pursuant to the agreements governing the Royalty Trusts, the Company 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 the Company 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 December 31, 2014 or 2013. | |||||||||||||
Administrative Services. The Company is party to an administrative services agreement with each Royalty Trust, 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. | |||||||||||||
Derivatives Agreements. The Company has a derivatives agreement with each Royalty Trust, pursuant to which the Company provides to the Royalty Trust the economic effects of certain of the Company’s derivative contracts. Substantially concurrent with the execution of the derivatives agreements with the Permian Trust and the Mississippian Trust II, the Company novated certain of the derivative contracts underlying the respective derivatives agreements to the Permian Trust and the Mississippian Trust II. The Company novated certain additional derivative contracts underlying the derivatives agreements to the Permian Trust in April 2012 and to the Permian Trust and the Mississippian Trust II in March 2013. Additionally, the Company reset certain derivative contracts underlying the derivative agreements with the Permian Trust in March 2014 and with the Mississippian Trust II in April 2014. The tables below present the open oil and natural gas commodity derivative contracts at December 31, 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 | |||||||||||||
January 2015 — December 2015 | 904 | $ | 97.78 | ||||||||||
Natural Gas Collars Underlying the Royalty Trust Derivatives Agreements | |||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||
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 | |||||||||||||
January 2015 — March 2015 | 141 | $ | 100.9 | ||||||||||
See Note 13 for further discussion of the derivatives agreement between the Company and each Royalty Trust. | |||||||||||||
Assets and Liabilities. 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 December 31, 2014 and 2013, $1.3 billion of noncontrolling interest in the accompanying consolidated balance sheets were attributable to the Royalty Trusts. The Royalty Trusts’ assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying consolidated balance sheets at December 31, 2014 and 2013 consisted of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Cash and cash equivalents(1) | $ | 9,387 | $ | 7,912 | |||||||||
Accounts receivable | 17,660 | 22,540 | |||||||||||
Derivative contracts | 6,589 | 4,983 | |||||||||||
Total current assets | 33,636 | 35,435 | |||||||||||
Investment in royalty interests(2) | 1,325,942 | 1,325,942 | |||||||||||
Less: accumulated depletion | (284,094 | ) | (186,095 | ) | |||||||||
1,041,848 | 1,139,847 | ||||||||||||
Derivative contracts | — | 1,476 | |||||||||||
Total assets | $ | 1,075,484 | $ | 1,176,758 | |||||||||
Accounts payable and accrued expenses | $ | 2,852 | $ | 3,393 | |||||||||
Total liabilities | $ | 2,852 | $ | 3,393 | |||||||||
____________________ | |||||||||||||
-1 | Includes $3.0 million held by the trustee at December 31, 2014 and 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 consolidated balance sheets. | ||||||||||||
See Note 15 for discussion of the Company’s legal proceedings to which the Mississippian Trust I and Mississippian Trust II are also parties. | |||||||||||||
Sales of Common Units. During 2014, 2013 and 2012, the Company sold Royalty Trust common units it owned in transactions exempt from registration pursuant to Rule 144 under the Securities Act, which further reduced its beneficial interest in the Royalty Trusts. Total proceeds from such transactions were $22.1 million, $29.0 million and $139.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. The unit sales were accounted for as equity transactions with no gain or loss recognized. The Company continues to be the primary beneficiary of the Royalty Trusts, after consideration of these transactions and, accordingly, continues to consolidate the activities of the Royalty Trusts. | |||||||||||||
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 require 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 provide for GRLP to pay management fees to the Company to operate the Plant and lease payments for the Plant. Under the operating agreements, lease payments were reduced if throughput volumes were below those expected. The Company determined that it was the primary beneficiary of GRLP as it has 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 balance sheets. The 50% ownership interest not held by the Company as of December 31, 2013 is presented as noncontrolling interest in the 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 consolidated balance sheet was related to GRLP. GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying consolidated balance sheet at December 31, 2013 consisted of the following (in thousands): | |||||||||||||
31-Dec-13 | |||||||||||||
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. As the Company does not have the ability to control the activities of PGC that most significantly impact PGC’s economic performance, the Company is not the primary beneficiary of PGC. Therefore, the results of PGC’s activities are not consolidated into the Company’s financial statements. | |||||||||||||
Amounts due from and due to PGC as of December 31, 2014 and 2013 included in the accompanying consolidated balance sheets are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Accounts receivable due from PGC | $ | 1,141 | $ | 741 | |||||||||
Accounts payable due to PGC | $ | 4,163 | $ | 3,634 | |||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||
Dec. 31, 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 in each level of the hierarchy as of December 31, 2014 or 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 consolidated balance sheet as of December 31, 2013. The Company did not have restricted deposits as of December 31, 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 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 oil and natural gas collars are based upon inputs that are either readily available in the public market, such as oil and natural gas futures prices, volatility factors, interest rates and discount rates, or can be corroborated from active markets. Fair value is determined through the use of a discounted cash flow model or option pricing model using the applicable inputs, discussed above. The Company applies a weighted average credit default risk rating factor for its counterparties or gives effect to its credit default risk rating, as applicable, in determining the fair value of these derivative contracts. Credit default risk ratings are based on current published credit default swap rates. | ||||||||||||||||||||
Level 3 Fair Value Measurements | ||||||||||||||||||||
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 February 25, 2015, the date the Company was permitted to terminate the guarantee under the terms of the agreement with Fieldwood (3.71% at December 31, 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 December 31, 2014 is included in the table below (in thousands). | ||||||||||||||||||||
Unobservable Input | ||||||||||||||||||||
Estimated future payments for plugging and abandonment | $ | 372,034 | ||||||||||||||||||
Derivative contracts. The fair value of the Company’s natural gas and oil basis swaps were based upon quotes obtained from counterparties to the derivative contracts. These values were reviewed 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 natural gas and oil basis swaps is the estimate of future natural gas and oil basis differentials. Significant increases (decreases) in natural gas and oil basis differentials could result in a significantly higher (lower) fair value measurement. The significant unobservable inputs and the range and weighted average of these inputs used in the fair value measurements of the Company’s natural gas basis swaps at December 31, 2014 are included in the table below. All of the outstanding oil basis swaps contractually matured during December 31, 2013. | ||||||||||||||||||||
Unobservable Input | Range | Weighted Average | Fair Value | |||||||||||||||||
(Price per Mcf) | (In thousands) | |||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Natural gas basis differential forward curve | $ | (0.03 | ) | – | $ | (0.38 | ) | $ | (0.29 | ) | $ | 350 | ||||||||
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): | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Fair Value Measurements | Netting(1) | Assets/Liabilities at Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Commodity derivative contracts | $ | — | $ | 338,067 | $ | 350 | $ | — | $ | 338,417 | ||||||||||
Investments | 11,106 | — | — | — | 11,106 | |||||||||||||||
$ | 11,106 | $ | 338,067 | $ | 350 | $ | — | $ | 349,523 | |||||||||||
Liabilities | ||||||||||||||||||||
Guarantees | $ | — | $ | — | $ | 5,104 | $ | — | $ | 5,104 | ||||||||||
$ | — | $ | — | $ | 5,104 | $ | — | $ | 5,104 | |||||||||||
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 impact of netting assets and liabilities with counterparties with which the right of offset exists. | ||||||||||||||||||||
The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for guarantees during the year ended December 31, 2014 (in thousands): | ||||||||||||||||||||
Level 3 Fair Value Measurements - Guarantees | Year Ended December 31, 2014 | |||||||||||||||||||
Beginning balance | $ | — | ||||||||||||||||||
Issuances(1) | 9,446 | |||||||||||||||||||
Gain on guarantees | (4,342 | ) | ||||||||||||||||||
Ending balance | $ | 5,104 | ||||||||||||||||||
____________________ | ||||||||||||||||||||
-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 December 31, 2014 is included in other current liabilities in the accompanying 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 years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Level 3 commodity derivative contracts at January 1 | $ | — | $ | (512 | ) | $ | (4,252 | ) | ||||||||||||
Loss on derivative contracts | — | (133 | ) | (5,460 | ) | |||||||||||||||
Purchases | 350 | — | 5,697 | |||||||||||||||||
Settlements paid | — | 645 | 3,503 | |||||||||||||||||
Level 3 commodity derivative contracts at December 31 | $ | 350 | $ | — | $ | (512 | ) | |||||||||||||
Losses due to changes in fair value of the Company’s Level 3 commodity derivative contracts have been included in (gain) loss on derivative contracts in the accompanying consolidated statements of operations. There were no outstanding Level 3 commodity derivative contracts at December 31, 2013. | ||||||||||||||||||||
See Note 13 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 years ended December 31, 2014, 2013 and 2012, 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 Company’s senior notes that is readily available in the public market. The Company classifies these inputs as Level 2 in the fair value hierarchy. The estimated fair values and carrying values of the Company’s senior notes at December 31, 2014 and 2013 were as follows (in thousands): | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||||||
8.75% Senior Notes due 2020(1) | $ | 303,750 | $ | 445,402 | $ | 486,000 | $ | 444,736 | ||||||||||||
7.5% Senior Notes due 2021(2) | $ | 752,000 | $ | 1,178,486 | $ | 1,230,813 | $ | 1,178,922 | ||||||||||||
8.125% Senior Notes due 2022 | $ | 472,500 | $ | 750,000 | $ | 795,000 | $ | 750,000 | ||||||||||||
7.5% Senior Notes due 2023(3) | $ | 519,750 | $ | 821,548 | $ | 837,375 | $ | 821,249 | ||||||||||||
___________________ | ||||||||||||||||||||
-1 | Carrying value is net of $4,598 and $5,264 discount at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
-2 | Carrying value includes a premium, applicable to notes issued in August 2012, of $3,486 and $3,922 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
-3 | Carrying value is net of $3,452 and $3,751 discount at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
See Note 12 for discussion of the Company’s long-term debt, including the purchase, redemption and issuance of senior notes in 2012 and 2013. | ||||||||||||||||||||
Fair Value of Non-Financial Assets and Liabilities | ||||||||||||||||||||
See Note 3 for information regarding the Company’s valuation of its acquisitions and Note 8 for discussion of the Company’s impairment valuation. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Receivables [Abstract] | ||||||||||||
Accounts Receivable | Accounts Receivable | |||||||||||
A summary of accounts receivable is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Oil, natural gas and NGL sales | $ | 139,848 | $ | 166,157 | ||||||||
Joint interest billing | 170,937 | 168,596 | ||||||||||
Oil and natural gas services | 21,436 | 17,904 | ||||||||||
Insurance receivable | — | 2,500 | ||||||||||
Other | 4,939 | 5,122 | ||||||||||
337,160 | 360,279 | |||||||||||
Less: allowance for doubtful accounts | (7,083 | ) | (11,061 | ) | ||||||||
Total accounts receivable, net | $ | 330,077 | $ | 349,218 | ||||||||
The following table presents the balance and activity in the allowance for doubtful accounts for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Allowance for doubtful accounts at January 1 | $ | 11,061 | $ | 5,635 | $ | 3,906 | ||||||
Additions charged to costs and expenses(1) | 818 | 5,497 | 1,735 | |||||||||
Deductions(2) | (4,796 | ) | (71 | ) | (6 | ) | ||||||
Allowance for doubtful accounts at December 31 | $ | 7,083 | $ | 11,061 | $ | 5,635 | ||||||
____________________ | ||||||||||||
-1 | Includes $2.7 million of allowance for receivables deemed uncollectible at December 31, 2013 primarily due to bankruptcy status of customers. | |||||||||||
-2 | Deductions represent write-off of receivables and collections of amounts for which an allowance had previously been established. Year ended December 31, 2014 represents write-off of allowance related to the sale of the Gulf Properties. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||||||||||||
Property, plant and equipment consists of the following (in thousands): | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Oil and natural gas properties | ||||||||||||||||||||
Proved(1) | $ | 11,707,147 | $ | 10,972,816 | ||||||||||||||||
Unproved | 290,596 | 531,606 | ||||||||||||||||||
Total oil and natural gas properties | 11,997,743 | 11,504,422 | ||||||||||||||||||
Less accumulated depreciation, depletion and impairment | (6,359,149 | ) | (5,762,969 | ) | ||||||||||||||||
Net oil and natural gas properties capitalized costs | 5,638,594 | 5,741,453 | ||||||||||||||||||
Land | 16,300 | 18,423 | ||||||||||||||||||
Non-oil and natural gas equipment(2) | 602,392 | 600,603 | ||||||||||||||||||
Buildings and structures(3) | 263,191 | 233,405 | ||||||||||||||||||
Total | 881,883 | 852,431 | ||||||||||||||||||
Less accumulated depreciation and amortization | (305,420 | ) | (286,209 | ) | ||||||||||||||||
Other property, plant and equipment, net | 576,463 | 566,222 | ||||||||||||||||||
Total property, plant and equipment, net | $ | 6,215,057 | $ | 6,307,675 | ||||||||||||||||
____________________ | ||||||||||||||||||||
-1 | Includes cumulative capitalized interest of approximately $38.1 million and $23.4 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
-2 | Includes cumulative capitalized interest of approximately $4.3 million at both December 31, 2014 and 2013. | |||||||||||||||||||
-3 | Includes cumulative capitalized interest of approximately $17.1 million and $12.0 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
Accumulated depreciation, depletion and impairment for oil and natural gas properties includes cumulative full cost ceiling limitation impairment of $3.7 billion and $3.5 billion at December 31, 2014 and 2013, respectively. During the year ended December 31, 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. There was no full cost ceiling impairment during the years ended December 31, 2013 or 2012. See Note 8 for discussion of impairment of other property, plant and equipment. | ||||||||||||||||||||
The average rates used for depreciation and depletion of oil and natural gas properties were $15.00 per Boe in 2014, $16.81 per Boe in 2013 and $16.93 per Boe in 2012. | ||||||||||||||||||||
Century Plant Construction Costs | ||||||||||||||||||||
Included in proved oil and natural gas properties at December 31, 2014 and 2013 is approximately $180.0 million of costs in excess of contracted and reimbursed amounts incurred by the Company during construction of the Century Plant pursuant to an agreement with Occidental Petroleum Corporation (“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 15 for discussion of the related treating agreement. | ||||||||||||||||||||
Drilling Carry Commitments | ||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company was party to 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’s carry during the year ended December 31, 2014, and a combined $408.0 million and $367.6 million for both Atinum’s and Repsol’s drilling carries during the years ended December 31, 2013 and 2012, respectively, 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 12-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 12-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 December 31, 2014, the Company has drilled 340 net wells under this arrangement and currently anticipates satisfying its drilling commitment within the required time period. Other than the above, the Company has no drilling obligations to Repsol. | ||||||||||||||||||||
Costs Excluded from Amortization | ||||||||||||||||||||
The following table summarizes the costs, by year incurred, related to unproved properties and pipe inventory, which were excluded from oil and natural gas properties subject to amortization at December 31, 2014 (in thousands): | ||||||||||||||||||||
Year Cost Incurred | ||||||||||||||||||||
Total | 2014 | 2013 | 2012 | 2011 and Prior | ||||||||||||||||
Property acquisition | $ | 247,485 | $ | 64,776 | $ | 21,723 | $ | 98,530 | $ | 62,456 | ||||||||||
Exploration(1) | 96,752 | 48,614 | 36,938 | 4,302 | 6,898 | |||||||||||||||
Total costs incurred | $ | 344,237 | $ | 113,390 | $ | 58,661 | $ | 102,832 | $ | 69,354 | ||||||||||
____________________ | ||||||||||||||||||||
-1 | Includes $53.6 million of pipe inventory costs incurred ($21.3 million in 2014, $30.7 million in 2013 and $1.6 million in 2012 and prior years). | |||||||||||||||||||
The Company expects to complete the majority of the evaluation activities within 10 years from the applicable date of acquisition, contingent on the Company’s capital expenditures and drilling program. In addition, the Company’s internal engineers evaluate all properties on at least an annual basis. |
Impairment
Impairment | 12 Months Ended |
Dec. 31, 2014 | |
Asset Impairment Charges [Abstract] | |
Impairment | Impairment |
Property, Plant and Equipment | |
As deemed necessary based on events in 2014, 2013 and 2012, the Company analyzed various property, plant and equipment for impairment. Estimated fair values of these assets were determined using a combination of the discounted cash flow method, recent offers from third-party purchasers or prices of comparable assets with consideration of current market conditions. Given the significance of the unobservable nature of a number of the inputs, these are considered Level 3 on the fair value hierarchy discussed in Note 5. | |
Oil and Natural Gas Properties. The Company incurred an impairment of $164.8 million for the year ended December 31, 2014 due to a full cost ceiling limitation resulting from the divestiture of the Gulf Properties, as the present value of future net revenues associated with the Gulf Properties exceeded the associated reduction to the full cost pool. | |
Drilling Assets. As a result of the Company’s fulfillment of its drilling obligation with the Permian Trust and the downward trend in oil prices that began in the second half of 2014, demand for the Company’s drilling and oilfield services in the Permian region declined significantly. At December 31, 2014, the Company determined the future use of its drilling and oilfield services assets in this region was limited and recorded an impairment of $24.3 million on these assets. | |
During 2014 and 2013, the Company committed to plans to sell various drilling assets. The net book value of these drilling assets was adjusted to fair value, resulting in impairments of $3.1 million and $11.1 million for the years ended December 31, 2014 and 2013, respectively. The remaining net book value of these assets is included in other current assets in the accompanying consolidated balance sheet at December 31, 2014 as the Company intends to sell the assets within a year. | |
As a result of the Company’s entry into an agreement to sell the Permian Properties, the Company performed an impairment assessment of its drilling rigs as of December 31, 2012 by calculating the estimated future cash flows to be generated by the rigs and their related assets. As the undiscounted future cash flows were in excess of the assets’ carrying value, no impairment was indicated at that time. | |
Gas Treating Plants and Other Midstream Assets. During 2014 and 2013, the Company evaluated certain midstream pipe inventory, natural gas compressors, gas treating plants and a CO2 compressor station for impairment after determining that their future use was limited. As a result of these evaluations, the Company recorded impairments of $0.6 million and $12.2 million during the years ended December 31, 2014 and 2013, respectively, on these assets to reduce their carrying value to market value. | |
In the fourth quarter of 2012, the Company substantially completed construction of the Century Plant, a CO2 treatment plant in Pecos County, Texas, and associated compression and pipeline facilities pursuant to the agreement with Occidental. In conjunction with the substantial completion and resulting diversion of the Company’s high CO2 natural gas production from its legacy gas treating plants to the Century Plant, the Company evaluated its legacy gas treating plants and CO2 compression facilities for impairment. Due to prevailing low natural gas prices, the Company’s natural gas production was not projected to reach the available treating capacity at the Century Plant. As such, the Company determined the use of its legacy gas treating plants and CO2 compression facilities in west Texas was limited, and accordingly, recorded a $79.3 million impairment of its gas treating plants and CO2 compression facilities at December 31, 2012. | |
Other Property, Plant and Equipment. In the second quarter of 2013, the Company committed to a plan to sell a corporate asset. The net book value of the corporate asset was adjusted to fair value, resulting in an impairment of $2.9 million during the year ended December 31, 2013. The corporate asset was sold in the fourth quarter of 2013. | |
The Company recorded a $1.3 million impairment in 2012 due to the write-off of certain software costs as the software was determined to be obsolete. | |
Goodwill | |
In December 2012, the Company entered into an agreement to sell the Permian Properties, which the Company determined to be a triggering event for purposes of evaluating goodwill as the Permian Properties are included in the exploration and production segment, the reporting unit to which goodwill was assigned. As such, an impairment test was performed as of December 31, 2012. Primarily as a result of a decrease in the Company’s probable reserves as of December 31, 2012, which are one of the significant components in the determination of the fair value of the reporting unit, the carrying value of the reporting unit exceeded the fair value. Probable reserves used in the reporting unit fair value calculation decreased due to their reclassification to possible reserves as a result of the Company’s year-end evaluation of drilling results across its acreage in the Mississippian formation. Possible reserves are not included in the fair value calculation of the reporting unit. The Company performed step two of the impairment test, which indicated the entire balance of goodwill was impaired. As a result, the Company recorded an impairment equal to the carrying amount of goodwill, or $235.4 million, at December 31, 2012, which is included in impairment in the accompanying consolidated statement of operations for the year ended December 31, 2012. |
Other_Assets
Other Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Other Assets | Other Assets | |||||||
Other assets consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Debt issuance costs, net of amortization(1) | $ | 56,445 | $ | 61,923 | ||||
Deferred tax asset | 95,843 | — | ||||||
Restricted deposits(2) | — | 27,955 | ||||||
Notes receivable on asset retirement obligations(2) | — | 11,640 | ||||||
Investments | 11,106 | 13,708 | ||||||
Other | 1,853 | 5,945 | ||||||
Total other assets | $ | 165,247 | $ | 121,171 | ||||
____________________ | ||||||||
-1 | Unamortized debt issuance costs associated with the 9.875% Senior Notes due 2016 and 8.0% Senior Notes due 2018 were written off in March 2013 when the Company redeemed these notes. See Note 12 for discussion of the senior note redemptions. | |||||||
-2 | Assets at December 31, 2013 were included in the sale of the Gulf Properties in February 2014, as discussed in Note 3. |
Accounts_Payable_and_Accrued_E
Accounts Payable and Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses | |||||||
Accounts payable and accrued expenses consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accounts payable and other accrued expenses | $ | 392,500 | $ | 341,008 | ||||
Accrued interest | 79,704 | 80,740 | ||||||
Production payable | 120,573 | 127,647 | ||||||
Drilling advances | 33,195 | 184,203 | ||||||
Payroll and benefits | 44,496 | 59,785 | ||||||
Convertible perpetual preferred stock dividends | 11,072 | 16,572 | ||||||
Related party | 1,852 | 2,533 | ||||||
Total accounts payable and accrued expenses | $ | 683,392 | $ | 812,488 | ||||
Construction_Contract
Construction Contract | 12 Months Ended |
Dec. 31, 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 consolidated statement of operations for the year ended December 31, 2013 |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Long-Term Debt | |||||||
Long-term debt consists of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Senior credit facility | $ | — | $ | — | ||||
Senior notes | ||||||||
8.75% Senior Notes due 2020, net of $4,598 and $5,264 discount, respectively | 445,402 | 444,736 | ||||||
7.5% Senior Notes due 2021, including a premium of $3,486 and $3,922, respectively | 1,178,486 | 1,178,922 | ||||||
8.125% Senior Notes due 2022 | 750,000 | 750,000 | ||||||
7.5% Senior Notes due 2023, net of $3,452 and $3,751 discount, respectively | 821,548 | 821,249 | ||||||
Total debt | 3,195,436 | 3,194,907 | ||||||
Less: current maturities of long-term debt | — | — | ||||||
Long-term debt | $ | 3,195,436 | $ | 3,194,907 | ||||
Senior 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 December 31, 2014, the senior credit facility contained financial covenants, including maintenance of agreed upon levels for the (i) ratio of total net debt to EBITDA, which may not exceed 4.50:1.00 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 1.00:1.00 at each quarter end. If no amounts are drawn under the senior credit facility when calculating the ratio of total net debt to EBITDA, the Company’s debt is reduced by its cash balance in excess of $10.0 million. In the current ratio calculation, any amounts available to be drawn under the senior credit facility are included in current assets, and unrealized assets and liabilities resulting from mark-to-market adjustments on the Company’s derivative contracts are disregarded. The senior credit facility matures in October 2019. | ||||||||
On November 14, 2014, the Company and its lenders amended the senior credit agreement to waive certain defaults that may have arisen as a result of the Company’s failure to timely deliver its quarterly financial statements for the quarter ended September 30, 2014 and extend the period for delivering the unaudited condensed consolidated statements for such interim period. | ||||||||
On February 23, 2015, the Company and its lenders further amended the credit agreement. The amendment, among other things, (i) temporarily suspends until June 30, 2016 the financial covenant requiring maintenance of certain levels for the ratio of total net debt to EBITDA, and (ii) adopts additional financial covenants requiring the maintenance of agreed upon levels for the (a) ratio of total debt secured by assets of the Company and certain of its subsidiaries to EBITDA, which may not exceed 2.25:1.00 at each quarter end, calculated using the last four completed fiscal quarters, and (b) ratio of EBITDA to interest expense, which must be at least 2.00:1.00 at March 31, 2015 and June 30, 2015, 1.75:1.00 at September 30, 2015, 1.50:1.00 at each quarter end from December 31, 2015 to September 30, 2016, and 2.00:1.00 at December 31, 2016 and thereafter, calculated using the last four completed fiscal quarters. The ratio of total net debt to EBITDA may not exceed 6.25:1.00 at June 30, 2016, 6.00:1.00 at September 30, 2016 and December 31, 2016, 5.50:1.00 at March 31, 2017 and June 30, 2017, 5.00:1.00 at September 30, 2017 and December 31, 2017 and 4.50:1.00 at March 31, 2018 and thereafter, calculated using annualized EBITDA for the fiscal quarter ended June 30, 2016 and the two subsequent fiscal quarters and otherwise calculated using the last four completed fiscal quarters. | ||||||||
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 year ended December 31, 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. There were no amounts outstanding under the senior credit facility during 2014 or 2013. The senior credit facility amendment, effective February 23, 2015, increases the applicable margin used in the calculation of interest under the senior credit facility to (a) between 1.750% and 2.750% for interest determined by reference to LIBOR, and (b) between 0.750% and 1.750% for interest determined by reference to the base rate. | ||||||||
Borrowings under the senior credit facility may not exceed the lower of the committed amount or the borrowing base, which is subject to periodic redeterminations. In October 2014, in connection with the amendment and restatement of the senior credit facility, the borrowing base was increased to $1.2 billion from $775.0 million and the availability of the borrowing base limited to a facility amount of $900.0 million. On February 23, 2015, in connection with the amendment to the senior credit agreement described above, the borrowing base was reduced to $900.0 million from $1.2 billion. The next scheduled borrowing base redetermination is expected to take place in October 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. | ||||||||
Additionally, the amended senior credit agreement permits the Company and certain of its subsidiaries to incur additional indebtedness in an aggregate principal amount not to exceed $500.0 million, which may be secured solely by collateral securing the senior credit facility on a junior lien basis. Any junior lien debt shall be subject to the terms and conditions set forth in an intercreditor agreement and shall mature no earlier than January 21, 2020. The borrowing base under the senior credit facility will be reduced by $0.25 for every $1.00 of junior debt incurred. | ||||||||
The senior credit facility was undrawn at December 31, 2014 and had $100.0 million drawn at February 20, 2015. On each such date, the Company had $11.6 million and $11.3 million, respectively, in outstanding letters of credit secured by the senior credit facility, which reduce availability under the senior credit facility on a dollar for dollar basis. At February 23, 2015, the Company had neither incurred junior debt nor entered into any intercreditor agreement. | ||||||||
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 23 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, including those discussed below, of the Senior Notes outstanding at December 31, 2014 are included in other assets in the accompanying consolidated balance sheet 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 $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 consolidated statement of operations for the year ended December 31, 2013. | ||||||||
2012 Activity. In 2012, the Company completed offerings of senior notes (the “2012 Senior Notes”), as further discussed below, to qualified institutional buyers eligible under Rule 144A of the Securities Act and to persons outside the United States under Regulation S of the Securities Act. The Company incurred $41.0 million of debt issuance costs in connection with the 2012 Senior Notes offerings. | ||||||||
In April 2012, the Company issued $750.0 million of unsecured 8.125% Senior Notes due 2022. Net proceeds from the offering were approximately $730.1 million after deducting offering expenses, and were used to finance the cash portion of the Dynamic Acquisition purchase price and to pay related fees and expenses, with any remaining amount used for general corporate purposes. | ||||||||
In August 2012, the Company issued $825.0 million of unsecured 7.5% Senior Notes due 2023 at 99.5% of par and $275.0 million of additional unsecured 7.5% Senior Notes due 2021 at 101.625% of par, plus accrued interest from March 15, 2012. The Company received net proceeds from this offering of approximately $1.1 billion, after deducting offering expenses and excluding accrued interest received. The net proceeds of the offering were used to fund the Company’s tender offer for, and subsequent redemption of, its Senior Floating Rate Notes due 2014 (the “Senior Floating Rate Notes”), discussed under Senior Floating Rate Notes due 2014 below, to fund the Company’s capital expenditures and for general corporate purposes. | ||||||||
In November 2012, pursuant to registered exchange offers, the Company replaced the initial 2012 Senior Notes with equivalent 2012 Senior Notes that are registered under the Securities Act. The exchange offers did not result in the incurrence of any additional indebtedness. | ||||||||
Indentures. Each of the indentures governing the Company’s Senior 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 year ended December 31, 2014, the Company was in compliance with all of the covenants contained in the indentures governing its outstanding Senior Notes. | ||||||||
Senior Floating Rate Notes Due 2014 | ||||||||
In the third quarter of 2012, the Company purchased 100.0% or $350.0 million of the outstanding aggregate principal amount of its Senior Floating Rate Notes. All holders whose notes were purchased in the tender offer or redemption received accrued and unpaid interest from July 1, 2012 through the date of purchase. The premium paid to purchase these notes and the write off of the remaining unamortized debt issuance costs associated with the notes, totaling $3.1 million, were recorded as a loss on extinguishment of debt and included in the accompanying consolidated statement of operations for the year ended December 31, 2012. The Senior Floating Rate Notes were issued in May 2008 and bore interest at LIBOR plus 3.625% prior to their retirement. | ||||||||
Maturities of Long-Term Debt | ||||||||
As of December 31, 2014, there are no maturities of long-term debt until January 2020. |
Derivatives
Derivatives | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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 (gain) loss on derivative contracts for commodity derivative contracts 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 December 31, 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. | ||||||||||||||||||||
Basis swaps | The Company receives a payment from the counterparty if the settled price differential is greater than the stated terms of the contract and pays the counterparty if the settled price differential is less than the stated terms of the contract, which guarantees the Company a price differential for oil or natural gas from a specified delivery point. | ||||||||||||||||||||
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 plus the difference between the purchased put and the sold put strike price. The call establishes a maximum price (ceiling) the Company will receive for the volumes under the contract. | |||||||||||||||||||||
Interest Rate Swaps. The Company is exposed to interest rate risk on its long-term fixed 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 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 to provide each Royalty Trust with the economic effect of certain oil and natural gas derivative contracts entered into by the Company with third parties. The underlying commodity derivative contracts cover volumes of oil and natural gas production through December 31, 2015 for the Mississippian Trust I and Mississippian Trust II and through March 31, 2015 for the Permian Trust. 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 novated certain of the derivative contracts underlying the derivatives agreements to each of the Permian Trust and Mississippian Trust II. As a party to these contracts, the Permian Trust and 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 Mississippian Trust II granted the counterparties liens on the royalty interests held by each respective Royalty Trust. Under the derivatives agreements, as development wells are drilled for the benefit of the Permian Trust and Mississippian Trust II, the Company has the right, under certain circumstances, to assign or novate additional derivative contracts to the Permian Trust and Mississippian Trust II. | |||||||||||||||||||||
All contracts underlying the derivatives agreements with the Royalty Trusts, including those novated to the Permian Trust and 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 December 31, 2014 and 2013 on a gross basis without regard to same-counterparty netting (in thousands): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
Type of Contract | Balance Sheet Classification | 2014 | 2013 | ||||||||||||||||||
Derivative assets | |||||||||||||||||||||
Oil price swaps | Derivative contracts—current | $ | 204,072 | $ | 15,887 | ||||||||||||||||
Natural gas price swaps | Derivative contracts—current | 29,648 | 1,598 | ||||||||||||||||||
Natural gas basis swaps | Derivative contracts—current | 350 | — | ||||||||||||||||||
Oil collars—three way | Derivative contracts—current | 56,289 | 706 | ||||||||||||||||||
Natural gas collars | Derivative contracts—current | 1,055 | 177 | ||||||||||||||||||
Oil price swaps | Derivative contracts—noncurrent | 36,288 | 19,376 | ||||||||||||||||||
Oil collars—three way | Derivative contracts—noncurrent | 10,715 | 12,189 | ||||||||||||||||||
Natural gas collars | Derivative contracts—noncurrent | — | 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 | $ | 338,417 | $ | (27,926 | ) | ||||||||||||||||
Refer to 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, which allow the Company to present its derivative assets and liabilities with the same counterparty on a net basis in the consolidated balance sheets. As a result, the Company's maximum amount of loss under derivative transactions due to credit risk is limited to the net amounts due from its counterparties. As of December 31, 2014, the counterparties to the Company’s open derivative contracts consisted of nine financial institutions, all of which are also lenders under the Company’s senior credit facility. As a result, the Company is not required to post additional collateral under 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 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 derivative liability positions, the applicable portion of shared collateral under the senior credit facility (for SandRidge's derivative contracts) and under liens granted on the royalty interests (for the Permian Trust and the Mississippian Trust II) (in thousands): | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Amounts Net of Offset | Financial Collateral | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||||
Derivative contracts - current | $ | 291,414 | $ | — | $ | 291,414 | $ | — | $ | 291,414 | |||||||||||
Derivative contracts - noncurrent | 47,003 | — | 47,003 | — | 47,003 | ||||||||||||||||
Total | $ | 338,417 | $ | — | $ | 338,417 | $ | — | $ | 338,417 | |||||||||||
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 (gain) loss on commodity derivative contracts of $(334.0) million, $47.1 million and $(241.4) million for the years ended December 31, 2014, 2013 and 2012, respectively, as reflected in the accompanying consolidated statements of operations, which includes net cash payments (receipts) upon settlement of $32.3 million, $(0.8) million and $(91.4) million, respectively. Included in these net cash payments are $69.6 million and $29.6 million of cash payments related to settlements of commodity derivative contracts with contractual maturities after the year in which they were settled primarily as a result of the sale of the Gulf Properties in February 2014 and the Permian Properties in February 2013, respectively. For the year ended December 31, 2012, the gain on commodity derivative contracts is net of a non-cash loss of $117.1 million resulting from the amendment of certain 2012 derivative contracts to contracts maturing in 2014 and 2015. | |||||||||||||||||||||
The Company recorded a loss on its interest rate swaps of $0.01 million and $1.2 million for the years ended December 31, 2013 and 2012, respectively, which is included in interest expense in the accompanying consolidated statements of operations. Included in the loss for the years ended December 31, 2013 and 2012 are cash payments upon contract settlement of $2.4 million and $9.2 million, respectively. | |||||||||||||||||||||
At December 31, 2014, the Company’s open commodity derivative contracts consisted of the following: | |||||||||||||||||||||
Oil Price Swaps | |||||||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
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 | |||||||||||||||||||||
January 2015 - December 2015 | 19,900 | $ | 4.51 | ||||||||||||||||||
Natural Gas Basis Swaps | |||||||||||||||||||||
Notional (MMcf) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
January 2015 - December 2015 | 21,900 | $ | (0.27 | ) | |||||||||||||||||
Oil Collars - Three-way | |||||||||||||||||||||
Notional (MBbls) | Sold Put | Purchased Put | Sold Call | ||||||||||||||||||
January 2015 - December 2015 | 4,576 | $ | 76.56 | $ | 90.28 | $ | 103.48 | ||||||||||||||
January 2016 - December 2016 | 2,556 | $ | 83.14 | $ | 90 | $ | 100.85 | ||||||||||||||
Natural Gas Collars | |||||||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||||||
January 2015 - December 2015 | 1,010 | $4.00 | — | $8.55 | |||||||||||||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||||||
Asset Retirement Obligation | Asset Retirement Obligations | |||||||||||
The following table presents the balance and activity of the asset retirement obligations for the years ended December 31, 2014, 2013 and 2012 (in thousands). | ||||||||||||
2014(1) | 2013 | 2012(2) | ||||||||||
Asset retirement obligations at January 1 | $ | 424,117 | $ | 498,410 | $ | 128,116 | ||||||
Liability incurred upon acquiring and drilling wells | 4,968 | 5,078 | 7,479 | |||||||||
Liability assumed in acquisition | — | — | 371,365 | |||||||||
Revisions in estimated cash flows | (5,848 | ) | (3,077 | ) | 34,654 | |||||||
Liability settled or disposed in current period | (377,927 | ) | (113,071 | ) | (72,200 | ) | ||||||
Accretion | 9,092 | 36,777 | 28,996 | |||||||||
Asset retirement obligations at December 31 | 54,402 | 424,117 | 498,410 | |||||||||
Less: current portion | — | 87,063 | 118,504 | |||||||||
Asset retirement obligations, net of current | $ | 54,402 | $ | 337,054 | $ | 379,906 | ||||||
____________________ | ||||||||||||
-1 | Liability settled or disposed in the current period includes $366.0 million associated with the Gulf Properties sold in February 2014, as discussed in Note 3. | |||||||||||
-2 | Liability assumed in acquisition represents asset retirement obligations assumed in the acquisition of oil and natural gas properties in the Gulf of Mexico during the second quarter of 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Operating Leases. The Company has obligations under noncancelable operating leases, primarily for office space and equipment used in drilling and services activities. Total rental expense under operating leases for the years ended December 31, 2014, 2013 and 2012 was approximately $1.7 million, $3.6 million and $2.6 million, respectively. | ||||
Future minimum payments under noncancelable operating leases (with initial lease terms exceeding one year) as of December 31, 2014 were as follows (in thousands): | ||||
Years ending December 31 | ||||
2015 | $ | 1,087 | ||
2016 | 982 | |||
2017 | 759 | |||
2018 | 572 | |||
2019 | — | |||
Thereafter | — | |||
$ | 3,400 | |||
Rig Commitments. The Company has contracts with third-party drilling rig operators for the use of their rigs at specified day or footage rates. These commitments are not recorded in the consolidated balance sheets. Minimum future commitments as of December 31, 2014 were $30.0 million for 2015 and $1.7 million for 2016. | ||||
Oil and Natural Gas Transportation and Throughput Agreements. The Company has subscribed firm gas transportation service under a transportation service agreement on the Midcontinent Express Pipeline, the term of which continues until July 2019. This commitment is not recorded in the consolidated balance sheets. Under the terms of the agreement, the Company is obligated to pay a demand charge and in exchange, obtains the right to flow natural gas production through this pipeline to more competitive marketing areas. The Company also has oil and natural gas throughput agreements in place, which require fixed fees based on minimum volume requirements for the right to flow oil and natural gas through certain pipelines. The amounts of the required payments related to the transportation and throughput agreements as of December 31, 2014 were as follows (in thousands): | ||||
Years ending December 31 | ||||
2015 | $ | 12,467 | ||
2016 | 12,498 | |||
2017 | 12,467 | |||
2018 | 12,899 | |||
2019 | 8,156 | |||
Thereafter | 12,672 | |||
$ | 71,159 | |||
Natural Gas Gathering Agreement. The Company has a gas gathering agreement with PGC related to its properties located in the Piñon Field in west Texas. Under the gas gathering agreement, the Company has dedicated its west Texas acreage for priority gathering services through June 30, 2029 and will pay a fee for such services. Pursuant to the gas gathering agreement, the base fee can be reduced if certain criteria are met. The table below presents the base fee contractual obligations under this agreement as of December 31, 2014 (in thousands). | ||||
Years ending December 31 | ||||
2015 | $ | 42,334 | ||
2016 | 42,272 | |||
2017 | 41,991 | |||
2018 | 41,825 | |||
2019 | 41,703 | |||
Thereafter | 82,594 | |||
$ | 292,719 | |||
Development Agreements with Royalty Trusts. The Company’s development agreement with the Mississippian Trust II obligates the Company to drill, or cause to be drilled, a specified number of wells within an area of mutual interest by December 31, 2016. The estimated cost to fulfill the drilling obligation remaining at December 31, 2014 totaled approximately $8.8 million. The Company fulfilled its drilling obligation to the Mississippian Trust I during 2013 and fulfilled its drilling obligation to the Permian Trust in 2014. | ||||
Treating Agreement. In conjunction with the Century Plant construction agreement, the Company entered into a 30-year treating agreement with Occidental for the removal of CO2 from 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, 2014, the Company had delivered to Occidental 54.7 Bcf of CO2, which is 300.1 Bcf less than the cumulative minimum annual CO2 volume requirements for the same period and had accrued associated annual shortfall penalties of approximately $75.0 million. Based on current projected natural gas production levels, the Company expects to accrue between approximately $31.0 million and $38.0 million during the year ending December 31, 2015 for amounts related to the Company’s anticipated shortfall in meeting its 2015 annual delivery obligations. 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 $210.1 million total) in 2041, which amount has not been accrued as the Company does not currently believe such payment is probable. | ||||
If CO2 volumes delivered to Occidental do not materially increase from current levels, 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 December 31, 2014, if the Company were to cease delivering natural gas for processing and made no future CO2 deliveries from such date until 2020, the Company would be required to pay annual delivery shortfall penalties, in the aggregate, of approximately $292.6 million for the contract years 2012 through 2019, which includes $75.0 million for penalties incurred through December 31, 2014. Further, by paying approximately $291.4 million in 2020, which includes the present value of $0.70 multiplied by delivery shortfalls incurred through such date, the Company could adjust the future CO2 volume requirements to zero. 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. | ||||
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 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. The Company paid no amounts under this guarantee, which, as of February 25, 2015, it was permitted to terminate under the terms of the agreement with Fieldwood. 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, each of which depends on numerous factors beyond the Company’s control such as overall oil and natural gas production and inventories in relevant markets, economic conditions, the global political environment, regulatory developments and competition from other energy sources. Oil and natural gas prices historically have been volatile, and may be subject to significant fluctuations in the future. The Company enters into derivative arrangements in order to mitigate a portion of the effect of this price volatility on the Company’s cash flows. See Note 13 for the Company’s open oil and natural gas commodity derivative contracts. | ||||
Production targets contained in certain gathering and treating agreements require the Company to incur capital expenditures or make associated shortfall payments, as discussed above. 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 the sales or other monetizations of assets to fund its capital expenditures. Based on current cash balances, cash flows from operating activities and availability under the senior credit facility, the Company expects to be able to fund its planned capital expenditures budget, debt service requirements and working capital needs for 2015; however, if the current depressed oil or natural gas prices persist for a prolonged period or further decline, they would 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 would adversely impact the Company’s ability to comply with the financial covenants under its senior credit facility. See Note 12 for discussion of the financial covenants in the senior credit facility. | ||||
Litigation and Claims. On April 5, 2011, Wesley West Minerals, Ltd. and Longfellow Ranch Partners, LP filed suit against the Company and SandRidge Exploration and Production, LLC (collectively, the “SandRidge Entities”) in the 83rd District Court of Pecos County, Texas. The plaintiffs, who have leased mineral rights to the SandRidge Entities in Pecos County, allege that the SandRidge Entities have not properly paid royalties on all volumes of natural gas and CO2 produced from the acreage leased from the plaintiffs. The plaintiffs also allege that the SandRidge Entities have inappropriately failed to pay royalties on CO2 produced from the plaintiffs' acreage that results from the treatment of natural gas at the Century Plant. The plaintiffs seek approximately $45.5 million in actual damages for the period of time between January 2004 and December 2011, punitive damages and a declaration that the SandRidge Entities must pay royalties on CO2 produced from the plaintiffs' acreage that results from treatment of natural gas at the Century Plant. The Commissioner of the General Land Office of the State of Texas (“GLO”) is named as an additional defendant in the lawsuit as some of the affected oil and natural gas leases described in the plaintiffs' allegations cover mineral classified lands in which the GLO is entitled to one-half of the royalties attributable to such leases. The GLO has filed a cross-claim against the SandRidge Entities asserting the same claims as the plaintiffs with respect to the leases covering mineral classified lands and seeking approximately $13.0 million in actual damages, inclusive of penalties and interest. On February 5, 2013, the Company received a favorable summary judgment ruling that effectively removes a majority of the plaintiffs' and GLO's claims. On April 29, 2013, the court entered an order allowing for an interlocutory appeal of its summary judgment ruling. | ||||
The 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 ruling on summary judgment, the lawsuit was still in the discovery stage and, accordingly, an estimate of reasonably possible losses associated with the remaining causes of action, if any, cannot be made until all of the facts, circumstances and legal theories relating to such claims and the 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 15 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 Class and a Motion to Toll the Statute of Limitations. On October 11, 2013, the defendants filed a Motion to Dismiss and a Motion to Transfer Venue to the United States District Court for the Western District of Oklahoma. All of these motions are pending before the court. | ||||
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. |
Equity
Equity | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Equity | Equity | |||||||||||
Preferred Stock | ||||||||||||
The following table presents information regarding the Company’s preferred stock (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Shares authorized | 50,000 | 50,000 | ||||||||||
Shares outstanding at end of period | ||||||||||||
8.5% Convertible perpetual preferred stock | 2,650 | 2,650 | ||||||||||
6.0% Convertible perpetual preferred stock | — | 2,000 | ||||||||||
7.0% Convertible perpetual preferred stock | 3,000 | 3,000 | ||||||||||
The Company is authorized to issue 50.0 million shares of preferred stock, $0.001 par value, of which 5.7 million shares and 7.7 million shares were designated as convertible perpetual preferred stock at December 31, 2014 and 2013, respectively. All of the outstanding shares of the Company’s convertible perpetual preferred stock were issued in private transactions, but are now freely tradable, to the extent not owned by affiliates. 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, resulting in the issuance of approximately 18.4 million shares of common stock. The final dividend payment for the 6.0% convertible preferred stock was made during the year ended December 31, 2014. | ||||||||||||
Each outstanding share of convertible perpetual preferred stock is convertible at the holder’s option at any time into shares of the Company’s common stock at the specified conversion rate, subject to customary adjustments in certain circumstances. Each holder is entitled to an annual dividend payable semi-annually in cash, common stock or a combination thereof, at the Company’s election. After a specified conversion date, the Company may cause all outstanding shares of the convertible perpetual preferred stock to convert automatically into common stock at the then-prevailing conversion rate if certain conditions are met. The convertible perpetual preferred stock is not redeemable by the Company at any time. The following table summarizes information about each series of the Company’s convertible perpetual preferred stock outstanding at December 31, 2014: | ||||||||||||
Convertible Perpetual Preferred Stock | ||||||||||||
8.50% | 7.00% | |||||||||||
Liquidation preference per share | $ | 100 | $ | 100 | ||||||||
Annual dividend per share | $ | 8.5 | $ | 7 | ||||||||
Conversion rate per share to common stock | 12.4805 | 12.8791 | ||||||||||
Conversion date to common stock at Company's option(1) | February 20, 2014 | November 20, 2015 | ||||||||||
____________________ | ||||||||||||
-1 | Conversion is dependent on certain factors, including the Company’s stock trading above specified prices for a set period. | |||||||||||
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 earnings (loss) per share calculation for the years ended December 31, 2014, 2013 and 2012 as presented in the accompanying consolidated statements of operations, are included in the tables below (in thousands): | ||||||||||||
Dividends Paid | Dividends Unpaid | Total | ||||||||||
Year Ended December 31, 2014 | ||||||||||||
8.5% Convertible perpetual preferred stock | $ | 14,078 | $ | 8,447 | $ | 22,525 | ||||||
6.0% Convertible perpetual preferred stock | 6,500 | — | 6,500 | |||||||||
7.0% Convertible perpetual preferred stock | 18,375 | 2,625 | 21,000 | |||||||||
Total | $ | 38,953 | $ | 11,072 | $ | 50,025 | ||||||
Year Ended December 31, 2013 | ||||||||||||
8.5% Convertible perpetual preferred stock | $ | 14,078 | $ | 8,447 | $ | 22,525 | ||||||
6.0% Convertible perpetual preferred stock | 6,500 | 5,500 | 12,000 | |||||||||
7.0% Convertible perpetual preferred stock | 18,375 | 2,625 | 21,000 | |||||||||
Total | $ | 38,953 | $ | 16,572 | $ | 55,525 | ||||||
Year Ended December 31, 2012 | ||||||||||||
8.5% Convertible perpetual preferred stock | $ | 14,078 | $ | 8,447 | $ | 22,525 | ||||||
6.0% Convertible perpetual preferred stock | 6,500 | 5,500 | 12,000 | |||||||||
7.0% Convertible perpetual preferred stock | 18,375 | 2,625 | 21,000 | |||||||||
Total | $ | 38,953 | $ | 16,572 | $ | 55,525 | ||||||
Common Stock | ||||||||||||
The following table presents information regarding the Company’s common stock (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Shares authorized | 800,000 | 800,000 | ||||||||||
Shares outstanding at end of period | 484,819 | 490,290 | ||||||||||
Shares held in treasury | 1,113 | 1,319 | ||||||||||
On April 17, 2012, the Company issued approximately 74.0 million shares of SandRidge common stock to satisfy the stock portion of the consideration paid in the Dynamic Acquisition. See Note 3 for further discussion of the Dynamic Acquisition. | ||||||||||||
Stock Repurchase Program. In 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 the Company’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 year ended December 31, 2014, 27,411,000 shares totaling $111.3 million, net of $0.5 million in broker fees and commissions, 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, the excess of the repurchase price over the par value was fully applied to additional paid-in capital. | ||||||||||||
Stockholder Rights Plan. On November 19, 2012, the Company’s Board adopted a stockholder rights plan pursuant to which the Board authorized and declared to stockholders of record on November 29, 2012 a dividend of one preferred share purchase right (the “Right”) for each outstanding share of common stock. Effective April 29, 2013, at the direction of the Board, the Company amended the stockholder rights plan to accelerate the expiration date of the Rights to April 29, 2013, resulting in expiration of the Rights and termination of the stockholder rights plan. | ||||||||||||
Treasury Stock | ||||||||||||
The Company makes required statutory tax payments on behalf of employees when their restricted stock awards vest and then withholds a number of vested shares of common stock having a value on the date of vesting equal to the tax obligation. The following table shows the number of shares withheld for taxes and the associated value of those shares for the years ended December 31, 2014, 2013 and 2012. These shares were accounted for as treasury stock when withheld, and then immediately retired. | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Number of shares withheld for taxes | 1,034 | 5,679 | 1,547 | |||||||||
Value of shares withheld for taxes | $ | 6,373 | $ | 30,126 | $ | 11,312 | ||||||
Shares of Company common stock held as assets in a trust for the Company’s non-qualified deferred compensation plan are accounted for as treasury shares. These shares are not included as outstanding shares of common stock for accounting purposes. For corporate purposes, including for the purpose of voting at Company stockholder meetings, these shares are considered outstanding and have voting rights, which are exercised by the Company. | ||||||||||||
Stockholder Receivable | ||||||||||||
On November 9, 2012, Tom L. Ward, the Company’s Chairman and CEO at that time, and the Company entered into a settlement agreement with a stockholder plaintiff relating to a third-party claim under Section 16(b) of the Securities Exchange Act of 1934, as amended. The claim was filed in December 2010 and related to certain transactions involving Company common stock entered into by Mr. Ward in 2008 and 2009. The settlement agreement found no liability or other wrongdoing under Section 16(b) regarding the transactions in question. Under the settlement agreement, Mr. Ward agreed to pay to the Company $5.0 million in four installments over four years commencing October 2013 and to waive his rights under his indemnification agreement with the Company with respect to this Section 16(b) action. The Company agreed to pay the fees of the plaintiff’s lawyers and paid Mr. Ward’s legal expenses as required under his indemnification agreement. | ||||||||||||
Based on the nature of the settlement as well as Mr. Ward’s position as an officer of the Company at that time, a receivable was recorded as a component of additional paid-in capital. Amounts receivable from Mr. Ward at December 31, 2014 and 2013 of $2.5 million and $3.8 million, respectively, are included in the accompanying consolidated balance sheets. | ||||||||||||
Restricted Common Stock | ||||||||||||
The Company awards restricted common stock under its long-term incentive compensation plan that generally vests over a four-year period, subject to certain conditions, and is valued based upon the market value of common stock on the date of grant. Shares of restricted common stock are subject to restriction on transfer. Unvested restricted stock awards are included in the Company’s outstanding shares of common stock. | ||||||||||||
Restricted stock activity for the years ended December 31, 2012, 2013 and 2014 was as follows (shares in thousands): | ||||||||||||
Number of | Weighted- | |||||||||||
Shares | Average Grant | |||||||||||
Date Fair Value | ||||||||||||
Unvested restricted shares outstanding at December 31, 2011 | 13,386 | $ | 9.34 | |||||||||
Granted | 7,604 | $ | 7.46 | |||||||||
Vested | (4,394 | ) | $ | 10.73 | ||||||||
Forfeited / Canceled | (1,268 | ) | $ | 8.54 | ||||||||
Unvested restricted shares outstanding at December 31, 2012 | 15,328 | $ | 8.07 | |||||||||
Granted | 7,462 | $ | 6.32 | |||||||||
Vested | (13,395 | ) | $ | 7.85 | ||||||||
Forfeited / Canceled | (1,752 | ) | $ | 7.33 | ||||||||
Unvested restricted shares outstanding at December 31, 2013 | 7,643 | $ | 6.92 | |||||||||
Granted | 6,367 | $ | 6.17 | |||||||||
Vested | (3,432 | ) | $ | 7.04 | ||||||||
Forfeited / Canceled | (2,022 | ) | $ | 6.6 | ||||||||
Unvested restricted shares outstanding at December 31, 2014 | 8,556 | $ | 6.39 | |||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company recognized equity compensation expense of $17.6 million, $82.8 million, and $39.7 million, net of $6.0 million, $5.5 million, and $7.5 million capitalized, respectively, related to restricted common stock. Amounts recognized during the year ended December 31, 2013 include approximately $48.5 million recognized in connection with the separation of certain former executives from the Company. | ||||||||||||
The total fair value of restricted stock that vested during the years ended December 31, 2014, 2013 and 2012, was $21.4 million, $71.6 million and $32.1 million, respectively. As of December 31, 2014, there was approximately $39.3 million of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted average period of 2.3 years. The Company had approximately 6.2 million shares available for grant under its existing incentive compensation plan at December 31, 2014. | ||||||||||||
See Note 17 for discussion of the Company’s performance units. |
Incentive_Retirement_and_Defer
Incentive, Retirement and Deferred Compensation Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Compensation Related Costs [Abstract] | ||||||||||||||
Incentive, Retirement and Deferred Compensation Plans Disclosure | Incentive, Retirement and Deferred Compensation Plans | |||||||||||||
Annual Incentive Plan. In June 2013, the Compensation Committee of the Company’s Board (the “Compensation Committee”) approved an annual incentive plan effective June 2013 for all employees and discontinued the Company’s then existing cash bonus program with final payments under the program of approximately $10.9 million made in July 2013. For certain members of management, the annual incentive plan incorporates objective performance criteria, individual performance goals and competitive target award levels for the 2014 performance year with payout percentages ranging from 0% to 200% of specified target levels based on actual performance. As of December 31, 2014, the Company had accrued approximately $21.1 million for the 2014 annual incentive for all employees, including an accrual for an annual incentive for specified members of management based on actual performance compared to target levels specified in the annual incentive plan. | ||||||||||||||
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 with cash settlement, if any, occurring at the end of the performance period. The value, and ultimate cash settlement, 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, cash settlement could range from $50 to $200 per unit. If minimum target thresholds are not met, the cash settlement 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 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 December 31, 2014 and 2013, the Company’s liability associated with performance units totaled $0.7 million and $1.8 million, respectively, which represents the fair value of the performance units for which requisite service has been completed. The liability will continue to be adjusted in future periods based upon changes in fair value of the performance units and the portion of requisite service 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 December 31, 2014 and 2013. | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Expected price volatility range | 26.6 | % | - | 86.6 | % | 27 | % | - | 44.8 | % | ||||
Weighted-average risk-free interest rate | 0.5 | % | 0.4 | % | ||||||||||
Weighted-average fair value per unit | $ | 13.85 | $ | 97.06 | ||||||||||
Performance unit activity for the years ended December 31, 2014 and 2013 was as follows: | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Outstanding at January 1 | 31,142 | — | ||||||||||||
Granted | 47,015 | 31,142 | ||||||||||||
Forfeited /canceled | (12,060 | ) | — | |||||||||||
Outstanding at December 31 | 66,097 | 31,142 | ||||||||||||
Performance period ending December 31, 2015 | ||||||||||||||
Vested | 9,208 | 12,178 | ||||||||||||
Unvested | 18,874 | 18,964 | ||||||||||||
Performance period ending December 31, 2016 | ||||||||||||||
Vested | 12,671 | — | ||||||||||||
Unvested | 25,344 | — | ||||||||||||
For the years ended December 31, 2014 and 2013, the Company recognized equity compensation expense of $(1.0) million and $1.6 million, respectively, net of amounts capitalized of $(0.05) million and $0.2 million, respectively, related to performance units. Based upon the fair value per unit as of December 31, 2014, the total fair value of the performance units that vested during the year ended December 31, 2014 and 2013 was $0.3 million and $0.1 million, respectively. No payments for performance units were made in the years ended December 31, 2014 and 2013. As of December 31, 2014, there was approximately $0.3 million of unrecognized compensation cost related to unvested performance units, which is expected to be recognized over a weighted average period of 1.6 years. | ||||||||||||||
In addition to performance units, the Company’s incentive plan permits cash incentive awards as well as the grant of stock options, stock appreciation rights, restricted stock units and any other form of award based on the value (or the increase in value) of shares of the common stock of the Company. | ||||||||||||||
Deferred Compensation Plans. The Company maintains a 401(k) retirement plan for its employees. Under the plan, eligible employees may elect to defer a portion of their earnings up to the maximum allowed by regulations promulgated by the Internal Revenue Service (“IRS”). The Company made matching contributions to the plan through cash purchases of Company stock equal to 100% on the first 10% employee deferred wages for the year ended December 31, 2014 and 100% on the first 15% of employee deferred wages for the years ended December 31, 2013 and 2012. Retirement plan expense for the years ended December 31, 2014, 2013 and 2012 was approximately $8.7 million, $11.0 million and $11.4 million, respectively. | ||||||||||||||
The Company maintains a non-qualified deferred compensation plan that allows eligible highly compensated employees to elect to defer income exceeding the IRS annual limitations on qualified 401(k) retirement plans. The Company made matching contributions on non-qualified contributions up to a maximum of 10% of employee compensation for the year ended December 31, 2014 and 15% of employee compensation for the years ended December 31, 2013 and 2012. For the years ended December 31, 2014, 2013 and 2012, employer contributions of cash purchases of Company stock were approximately $2.0 million, $2.7 million and $3.5 million, respectively. Any assets placed in trust by the Company to fund future obligations of the Company’s non-qualified deferred compensation plan are subject to the claims of creditors in the event of insolvency or bankruptcy, and participants are general creditors of the Company as to their own deferred compensation in, and the Company’s contributions to, the plan. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The Company’s income tax (benefit) provision consisted of the following components for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current | ||||||||||||
Federal | $ | (1,160 | ) | $ | 3,842 | $ | (72 | ) | ||||
State | (1,133 | ) | 1,842 | (2 | ) | |||||||
(2,293 | ) | 5,684 | (74 | ) | ||||||||
Deferred | ||||||||||||
Federal | — | — | (97,410 | ) | ||||||||
State | — | — | (2,878 | ) | ||||||||
— | — | (100,288 | ) | |||||||||
Total (benefit) provision | (2,293 | ) | 5,684 | (100,362 | ) | |||||||
Less: income tax provision attributable to noncontrolling interest | 283 | 308 | 304 | |||||||||
Total (benefit) provision attributable to SandRidge Energy, Inc. | $ | (2,576 | ) | $ | 5,376 | $ | (100,666 | ) | ||||
A reconciliation of the (benefit) provision for income taxes at the statutory federal tax rate to the Company’s actual income tax benefit is as follows for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Computed at federal statutory rate | $ | 122,362 | $ | (178,078 | ) | $ | 51,173 | |||||
State taxes, net of federal benefit | 4,145 | (886 | ) | 8,913 | ||||||||
Non-deductible expenses | 1,895 | 2,589 | 7,247 | |||||||||
Stock-based compensation | 1,467 | 7,611 | 7,172 | |||||||||
Net effects of consolidating the non-controlling interests’ tax provisions | (34,614 | ) | (13,901 | ) | (37,047 | ) | ||||||
Bargain purchase gain | — | — | (42,944 | ) | ||||||||
Impairment of non-deductible goodwill | — | — | 71,885 | |||||||||
Change in valuation allowance | (96,769 | ) | 188,599 | (66,429 | ) | |||||||
Valuation allowance release | — | — | (100,288 | ) | ||||||||
Other | (1,062 | ) | (558 | ) | (348 | ) | ||||||
Total (benefit) provision attributable to SandRidge Energy, Inc. | $ | (2,576 | ) | $ | 5,376 | $ | (100,666 | ) | ||||
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 made that it is more likely than not that some or all of the deferred assets will not be realized based on the weight of all available evidence. As of December 31, 2014, 2013 and 2012 the balance of the valuation allowance was $649.6 million, $753.5 million, and $557.3 million, respectively. During the year ended December 31, 2012, the Company recorded a net deferred tax liability of $100.3 million associated with the Dynamic Acquisition and released a corresponding portion of the previously recorded valuation allowance. The partial release of the valuation allowance in 2012 was based on management’s assessment that it is more likely than not that the Company will realize a benefit from more of its existing deferred tax assets as the Dynamic deferred tax liabilities are available to offset the reversal of the Company’s deferred tax assets. Although the Company had a full valuation allowance against its net deferred tax asset at each year December 31, 2014, 2013 and 2012, the partial release of the valuation allowance resulted in a deferred tax benefit in 2012. 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 December 31, 2014. | ||||||||||||
Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax liabilities | ||||||||||||
Investments(1) | $ | 272,902 | $ | 301,447 | ||||||||
Property, plant and equipment | 364,576 | 180,140 | ||||||||||
Derivative contracts | 113,735 | — | ||||||||||
Total deferred tax liabilities | 751,213 | 481,587 | ||||||||||
Deferred tax assets | ||||||||||||
Derivative contracts | — | 3,692 | ||||||||||
Allowance for doubtful accounts | 19,086 | 20,358 | ||||||||||
Net operating loss carryforwards | 1,265,458 | 973,675 | ||||||||||
Compensation and benefits | 19,867 | 24,895 | ||||||||||
Alternative minimum tax credits and other carryforwards | 43,840 | 46,624 | ||||||||||
Asset retirement obligations | 21,946 | 147,626 | ||||||||||
CO2 under-delivery shortfall penalty | 27,674 | 15,012 | ||||||||||
Other | 2,934 | 3,156 | ||||||||||
Total deferred tax assets | 1,400,805 | 1,235,038 | ||||||||||
Valuation allowance | (649,592 | ) | (753,451 | ) | ||||||||
Net deferred tax liability | $ | — | $ | — | ||||||||
____________________ | ||||||||||||
-1 | Includes the Company’s deferred tax liability resulting from its investment in the Royalty Trusts. See Note 4 for further discussion of the Royalty Trusts. | |||||||||||
As of December 31, 2014, the Company had approximately $9.3 million of alternative minimum tax credits available that do not expire. In addition, the Company had approximately $3.4 billion of federal net operating loss carryovers that expire during the years 2023 through 2034. Excess tax benefits of approximately $17.7 million associated with the vesting of restricted stock awards are included in the federal net operating loss carryovers, but will not be recognized as a tax benefit recorded to additional paid-in capital until realized. | ||||||||||||
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 an IRC Section 382 limitation. The limitation could result in a material amount of existing loss carryforwards expiring unused. The limitation did not result in a current federal tax liability at December 31, 2014. | ||||||||||||
At December 31, 2014 and 2013, respectively, the Company had a liability of approximately $0.1 million and $1.4 million for unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Unrecognized tax benefit at January 1 | $ | 1,382 | $ | 1,330 | ||||||||
Changes to unrecognized tax benefits related to the current year | — | 262 | ||||||||||
Changes to unrecognized tax benefits related to a prior year | (17 | ) | (210 | ) | ||||||||
Decreases to unrecognized tax benefits for settlements with tax authorities | (1,288 | ) | — | |||||||||
Unrecognized tax benefit at December 31 | $ | 77 | $ | 1,382 | ||||||||
Consistent with its policy to record interest and penalties on income taxes as a component of the income tax provision, the Company has included approximately $(0.1) million, $(0.1) million and $0.3 million of accrued gross interest with respect to unrecognized tax benefits in its accompanying consolidated statements of operations during the years ended December 31, 2014, 2013 and 2012, respectively. 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 12 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 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_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Share | Earnings per Share | ||||||||||
Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average shares outstanding during the period, but also include the dilutive effect of awards of restricted stock, using the treasury stock method, and outstanding convertible preferred stock. Under the treasury stock method, the amount of unrecognized compensation expense related to unvested stock-based compensation grants is assumed to be used to repurchase shares at the average market price. The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings per share, for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||
Income (Loss) | Weighted Average Shares | Earnings (Loss) Per Share | |||||||||
(In thousands, except per share amounts) | |||||||||||
Year Ended December 31, 2014 | |||||||||||
Basic earnings per share | $ | 203,260 | 479,644 | $ | 0.42 | ||||||
Effect of dilutive securities | |||||||||||
Restricted stock | — | 2,181 | |||||||||
Convertible preferred stock(1) | 6,500 | 17,918 | |||||||||
Diluted earnings per share | $ | 209,760 | 499,743 | $ | 0.42 | ||||||
Year Ended December 31, 2013 | |||||||||||
Basic loss per share | $ | (609,414 | ) | 481,148 | $ | (1.27 | ) | ||||
Effect of dilutive securities | |||||||||||
Restricted stock(2) | — | — | |||||||||
Convertible preferred stock(3) | — | — | |||||||||
Diluted loss per share | $ | (609,414 | ) | 481,148 | $ | (1.27 | ) | ||||
Year Ended December 31, 2012 | |||||||||||
Basic earnings per share | $ | 86,046 | 453,595 | $ | 0.19 | ||||||
Effect of dilutive securities | |||||||||||
Restricted stock | — | 2,420 | |||||||||
Convertible preferred stock(3) | — | — | |||||||||
Diluted earnings per share | $ | 86,046 | 456,015 | $ | 0.19 | ||||||
____________________ | |||||||||||
-1 | Potential common shares related to the Company’s outstanding 8.5% and 7.0% convertible perpetual preferred stock covering 71.7 million shares for the year ended December 31, 2014 were excluded from the computation of earnings per share because their effect would have been antidilutive under the if-converted method. | ||||||||||
-2 | Restricted stock awards covering 0.5 million shares were excluded from the computation of loss per share because their effect would have been antidilutive. | ||||||||||
-3 | 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 years ended December 31, 2013 and 2012, were excluded from the computation of earnings (loss) per share because their effect would have been antidilutive under the if-converted method. | ||||||||||
See Note 16 for discussion of the Company’s convertible perpetual preferred stock. | |||||||||||
As discussed in Note 16, the Company’s Board adopted a stockholder rights plan in November 2012 under which holders of common stock were issued Rights. As the contingency for exercising these Rights had not been met as of December 31, 2012, the Company did not include the conversion of any Rights in its computation of diluted earnings per share for the year ended December 31, 2012. The Rights expired and the stockholder rights plan was terminated in 2013. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
The Company enters into transactions in the ordinary course of business with certain related parties. These transactions primarily consist of sales of oil and natural gas. See Note 10 for accounts payable attributable to related party transactions. During the years ended December 31, 2013 and 2012, sales to and reimbursements from related parties were $1.6 million and $12.8 million, respectively. These amounts primarily relate to sales of natural gas from the Permian Properties, which were sold in February 2013, to the Company’s partner in GRLP. | |
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 approximately 6.3 million shares of restricted stock awards during the third quarter of 2013. As of December 31, 2014, the remaining amounts due under the terms of his employment agreement include $3.1 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 consolidated balance sheet. See Note 16 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 years ended December 31, 2014 and 2013. For the year ended December 31, 2014, employee termination benefits were $8.9 million primarily as a result of the sale of the Gulf Properties. For the year ended December 31, 2013, employee termination benefits, excluding amounts attributable to the Company’s former chairman and CEO, were $23.2 million primarily as a result of other executives’ separation from employment. | |
Oklahoma City Thunder Agreements. Until April 2014 the Company’s former Chairman and CEO owned, and one of the Company’s directors currently owns, minority interests in a limited liability company that owns and operates the Oklahoma City Thunder basketball team. The Company was party to a sponsorship agreement, whereby it paid approximately $3.3 million per year for advertising and promotional activities related to the Oklahoma City Thunder, which terminated with the conclusion of the 2012-2013 season. | |
Office Lease. In July 2012, the Company entered into a commercial lease to rent space in a building owned by an entity that is partially owned by one of the Company’s directors. The terms provides for a lease term through December 2017 with annual rent of approximately $0.5 million. Any renovation costs paid by the Company with respect to the leased space are applied toward future rent payments. As of December 31, 2014, the Company has made renovations costing approximately $3.3 million. The terms of the lease were reviewed and approved by the disinterested members of the Board and the Company believes that the rent expense to be paid under the lease is at a fair market rate. | |
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. |
Subsequent_Events
Subsequent Events | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Subsequent Events [Abstract] | |||||||||
Subsequent Events | Subsequent Events | ||||||||
Royalty Trust Distributions. On January 29, 2015, the Royalty Trusts announced quarterly distributions for the three-month period ended December 31, 2014. The following distributions will be paid on February 27, 2015 to holders of record as of the close of business on February 13, 2015 (in thousands): | |||||||||
Royalty Trust | Total Distribution | Amount to be Distributed to Third-Party Unitholders | |||||||
Mississippian Trust I | $ | 8,538 | $ | 6,242 | |||||
Permian Trust | 27,681 | 25,830 | |||||||
Mississippian Trust II | 13,985 | 11,644 | |||||||
Total | $ | 50,204 | $ | 43,716 | |||||
Senior Credit Facility Amendment. On February 23, 2015, the Company amended the terms of its senior credit facility. See Note 12 for additional discussion. |
Business_Segment_Information
Business Segment Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Business Segment Information | Business Segment Information | |||||||||||||||||||
The Company has three reportable business segments: exploration and production, drilling and oil field services and midstream services. These segments represent the Company’s three main business units, each offering different products and services. The exploration and production segment is engaged in the 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 | Drilling and Oil | Midstream | All Other(4) | Consolidated | ||||||||||||||||
Production(1) | Field Services(2) | Services(3) | Total | |||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Revenues | $ | 1,423,073 | $ | 192,944 | $ | 142,987 | $ | 4,376 | $ | 1,763,380 | ||||||||||
Inter-segment revenue | (173 | ) | (116,856 | ) | (87,593 | ) | — | (204,622 | ) | |||||||||||
Total revenues | $ | 1,422,900 | $ | 76,088 | $ | 55,394 | $ | 4,376 | $ | 1,558,758 | ||||||||||
Income (loss) from operations | $ | 713,716 | $ | (37,564 | ) | $ | (9,094 | ) | $ | (76,834 | ) | $ | 590,224 | |||||||
Interest income (expense), net | 100 | — | — | (244,209 | ) | (244,109 | ) | |||||||||||||
Other (expense) income, net | (423 | ) | (541 | ) | 9 | 4,445 | 3,490 | |||||||||||||
Income (loss) before income taxes | $ | 713,393 | $ | (38,105 | ) | $ | (9,085 | ) | $ | (316,598 | ) | $ | 349,605 | |||||||
Capital expenditures(5) | $ | 1,508,100 | $ | 18,385 | $ | 44,606 | $ | 37,798 | $ | 1,608,889 | ||||||||||
Depreciation, depletion, amortization and accretion | $ | 443,573 | $ | 29,105 | $ | 10,085 | $ | 20,260 | $ | 503,023 | ||||||||||
At December 31, 2014 | ||||||||||||||||||||
Total assets | $ | 6,273,802 | $ | 115,083 | $ | 219,691 | $ | 650,649 | $ | 7,259,225 | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Revenues | $ | 1,834,480 | $ | 187,456 | $ | 179,989 | $ | 3,127 | $ | 2,205,052 | ||||||||||
Inter-segment revenue | (320 | ) | (120,815 | ) | (100,529 | ) | — | (221,664 | ) | |||||||||||
Total revenues | $ | 1,834,160 | $ | 66,641 | $ | 79,460 | $ | 3,127 | $ | 1,983,388 | ||||||||||
Income (loss) from operations | $ | 62,509 | $ | (40,155 | ) | $ | (21,567 | ) | $ | (169,788 | ) | $ | (169,001 | ) | ||||||
Interest income (expense), net | 1,168 | — | (209 | ) | (271,193 | ) | (270,234 | ) | ||||||||||||
Loss on extinguishment of debt | — | — | — | (82,005 | ) | (82,005 | ) | |||||||||||||
Other income (expense), net | 5,487 | — | (3,222 | ) | 10,180 | 12,445 | ||||||||||||||
Income (loss) before income taxes | $ | 69,164 | $ | (40,155 | ) | $ | (24,998 | ) | $ | (512,806 | ) | $ | (508,795 | ) | ||||||
Capital expenditures(5) | $ | 1,319,012 | $ | 7,125 | $ | 55,706 | $ | 42,040 | $ | 1,423,883 | ||||||||||
Depreciation, depletion, amortization and accretion | $ | 605,242 | $ | 33,291 | $ | 7,972 | $ | 20,140 | $ | 666,645 | ||||||||||
At December 31, 2013 | ||||||||||||||||||||
Total assets | $ | 6,157,225 | $ | 158,737 | $ | 188,165 | $ | 1,180,668 | $ | 7,684,795 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Revenues | $ | 1,775,221 | $ | 379,345 | $ | 116,659 | $ | 4,356 | $ | 2,275,581 | ||||||||||
Inter-segment revenue | (403 | ) | (262,712 | ) | (77,824 | ) | — | (340,939 | ) | |||||||||||
Total revenues | $ | 1,774,818 | $ | 116,633 | $ | 38,835 | $ | 4,356 | $ | 1,934,642 | ||||||||||
Income (loss) from operations | $ | 518,144 | $ | 11,911 | $ | (73,027 | ) | $ | (131,832 | ) | $ | 325,196 | ||||||||
Interest income (expense), net | 1,286 | — | (559 | ) | (304,076 | ) | (303,349 | ) | ||||||||||||
Bargain purchase gain | 122,696 | — | — | — | 122,696 | |||||||||||||||
Loss on extinguishment of debt | — | — | — | (3,075 | ) | (3,075 | ) | |||||||||||||
Other income, net | 1,868 | — | — | 2,873 | 4,741 | |||||||||||||||
Income (loss) before income taxes | $ | 643,994 | $ | 11,911 | $ | (73,586 | ) | $ | (436,110 | ) | $ | 146,209 | ||||||||
Capital expenditures(5) | $ | 2,001,490 | $ | 27,527 | $ | 80,413 | $ | 114,552 | $ | 2,223,982 | ||||||||||
Depreciation, depletion, amortization and accretion | $ | 598,101 | $ | 34,677 | $ | 7,188 | $ | 17,864 | $ | 657,830 | ||||||||||
____________________ | ||||||||||||||||||||
-1 | Income (loss) from operations includes a full cost ceiling impairment of $164.8 million for the year ended December 31, 2014, a loss on the sale of the Permian Properties of $398.9 million for the year ended December 31, 2013, an impairment of the Company’s goodwill of $235.4 million for the year ended December 31, 2012 and the Company’s (gain) loss on derivative contracts, including net cash payments upon settlement, for the years ended December 31, 2014, 2013 and 2012. See Note 13 for discussion of derivative contracts. | |||||||||||||||||||
-2 | For the years ended December 31, 2014 and 2013, income (loss) from operations includes impairments of $27.4 million and $11.1 million, respectively, on certain drilling assets. | |||||||||||||||||||
-3 | For the years ended December 31, 2014, 2013 and 2012, loss from operations includes impairments of the Company’s gas treating plants in west Texas and other midstream assets of $0.6 million, $3.9 million and $59.7 million, respectively. | |||||||||||||||||||
-4 | For the year ended December 31, 2013, loss from operations includes a $2.9 million impairment of a corporate asset and an $8.3 million impairment of the Company’s CO2 compression facilities. For the year ended December 31, 2012, loss from operations includes a $19.6 million impairment of the Company’s CO2 compression facilities. | |||||||||||||||||||
-5 | On an accrual basis and exclusive of acquisitions. | |||||||||||||||||||
Major Customers. For the years ended December 31, 2014, 2013 and 2012, the Company had sales exceeding 10% of total revenues to the following oil and natural gas purchasers (in thousands): | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Sales | % of Revenue | |||||||||||||||||||
Plains Marketing, L.P. | $ | 597,117 | 38.3 | % | ||||||||||||||||
Atlas Pipeline Mid-Continent West OK LLC | $ | 333,027 | 21.4 | % | ||||||||||||||||
2013 | ||||||||||||||||||||
Sales | % of Revenue | |||||||||||||||||||
Plains Marketing, L.P. | $ | 491,258 | 24.8 | % | ||||||||||||||||
Shell Trading (US) Company | $ | 347,422 | 17.5 | % | ||||||||||||||||
Atlas Pipeline Mid-Continent West OK LLC | $ | 211,838 | 10.7 | % | ||||||||||||||||
2012 | ||||||||||||||||||||
Sales | % of Revenue | |||||||||||||||||||
Plains Marketing, L.P. | $ | 426,339 | 15.6 | % | ||||||||||||||||
Enterprise Crude Oil, LLC | $ | 394,162 | 14.4 | % | ||||||||||||||||
Plains Marketing, L.P., Atlas Pipeline Mid-Continent West OK LLC, Shell Trading (US) Company and Enterprise Crude Oil, LLC are purchasers of oil, natural gas and NGLs sold by the Company’s exploration and production segment. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 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 December 31, 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 Senior Floating Rate Notes, prior to their purchase and redemption in 2012, were also jointly and severally guaranteed, on a full, unconditional and unsecured basis by the subsidiary guarantors. The subsidiary guarantees (i) rank equally in right of payment with all of the existing and future senior debt of the subsidiary guarantors; (ii) rank senior to all of the existing and future subordinated debt of the subsidiary guarantors; (iii) are effectively subordinated in right of payment to any existing or future secured obligations of the subsidiary guarantors to the extent of the value of the assets securing such obligations; (iv) are structurally subordinated to all debt and other obligations of the subsidiaries of the guarantors who are not themselves subsidiary guarantors; and (v) are only released under certain customary circumstances. The Company’s subsidiary guarantors guarantee payments of principal and interest under the Company’s registered notes. | ||||||||||||||||||||
The following condensed consolidating financial information represents the financial information of SandRidge Energy, Inc., its wholly owned subsidiary guarantors and its non-guarantor subsidiaries, prepared on the equity basis of accounting. The non-guarantor subsidiaries, including consolidated VIEs, majority owned subsidiaries and certain immaterial wholly owned subsidiaries, are included in the non-guarantors column in the tables below. The financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the subsidiary guarantors operated as independent entities. | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 170,468 | $ | 1,398 | $ | 9,387 | $ | — | $ | 181,253 | ||||||||||
Accounts receivable, net | 7 | 299,764 | 30,313 | (7 | ) | 330,077 | ||||||||||||||
Intercompany accounts receivable | 751,376 | 1,339,152 | 41,679 | (2,132,207 | ) | — | ||||||||||||||
Derivative contracts | — | 284,825 | 45,043 | (38,454 | ) | 291,414 | ||||||||||||||
Prepaid expenses | — | 7,971 | 10 | — | 7,981 | |||||||||||||||
Other current assets | — | 21,193 | — | — | 21,193 | |||||||||||||||
Total current assets | 921,851 | 1,954,303 | 126,432 | (2,170,668 | ) | 831,918 | ||||||||||||||
Property, plant and equipment, net | — | 4,987,281 | 1,227,776 | — | 6,215,057 | |||||||||||||||
Investment in subsidiaries | 6,606,198 | 176,365 | — | (6,782,563 | ) | — | ||||||||||||||
Derivative contracts | — | 47,003 | — | — | 47,003 | |||||||||||||||
Other assets | 152,286 | 18,197 | 666 | (5,902 | ) | 165,247 | ||||||||||||||
Total assets | $ | 7,680,335 | $ | 7,183,149 | $ | 1,354,874 | $ | (8,959,133 | ) | $ | 7,259,225 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 201,368 | $ | 477,399 | $ | 4,632 | $ | (7 | ) | $ | 683,392 | |||||||||
Intercompany accounts payable | 1,315,667 | 780,645 | 35,895 | (2,132,207 | ) | — | ||||||||||||||
Derivative contracts | — | 38,454 | — | (38,454 | ) | — | ||||||||||||||
Deferred tax liability | 95,843 | — | — | — | 95,843 | |||||||||||||||
Other current liabilities | — | 5,216 | — | — | 5,216 | |||||||||||||||
Total current liabilities | 1,612,878 | 1,301,714 | 40,527 | (2,170,668 | ) | 784,451 | ||||||||||||||
Investment in subsidiaries | 928,217 | 134,013 | — | (1,062,230 | ) | — | ||||||||||||||
Long-term debt | 3,201,338 | — | — | (5,902 | ) | 3,195,436 | ||||||||||||||
Asset retirement obligations | — | 54,402 | — | — | 54,402 | |||||||||||||||
Other long-term obligations | 77 | 15,039 | — | — | 15,116 | |||||||||||||||
Total liabilities | 5,742,510 | 1,505,168 | 40,527 | (3,238,800 | ) | 4,049,405 | ||||||||||||||
Equity | ||||||||||||||||||||
SandRidge Energy, Inc. stockholders’ equity | 1,937,825 | 5,677,981 | 1,314,347 | (6,992,328 | ) | 1,937,825 | ||||||||||||||
Noncontrolling interest | — | — | — | 1,271,995 | 1,271,995 | |||||||||||||||
Total equity | 1,937,825 | 5,677,981 | 1,314,347 | (5,720,333 | ) | 3,209,820 | ||||||||||||||
Total liabilities and equity | $ | 7,680,335 | $ | 7,183,149 | $ | 1,354,874 | $ | (8,959,133 | ) | $ | 7,259,225 | |||||||||
December 31, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | 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 | |||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Total revenues | $ | — | $ | 1,341,531 | $ | 217,367 | $ | (140 | ) | $ | 1,558,758 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 467,175 | 16,854 | (140 | ) | 483,889 | ||||||||||||||
General and administrative | 331 | 118,249 | 4,285 | — | 122,865 | |||||||||||||||
Depreciation, depletion, amortization and accretion | — | 446,149 | 56,874 | — | 503,023 | |||||||||||||||
Impairment | — | 150,125 | 42,643 | — | 192,768 | |||||||||||||||
Gain on derivative contracts | — | (292,733 | ) | (41,278 | ) | — | (334,011 | ) | ||||||||||||
Total expenses | 331 | 888,965 | 79,378 | (140 | ) | 968,534 | ||||||||||||||
(Loss) income from operations | (331 | ) | 452,566 | 137,989 | — | 590,224 | ||||||||||||||
Equity earnings from subsidiaries | 495,154 | 38,967 | — | (534,121 | ) | — | ||||||||||||||
Interest (expense) income, net | (244,209 | ) | 100 | — | — | (244,109 | ) | |||||||||||||
Other income (expense), net | — | 3,521 | (31 | ) | — | 3,490 | ||||||||||||||
Income before income taxes | 250,614 | 495,154 | 137,958 | (534,121 | ) | 349,605 | ||||||||||||||
Income tax (benefit) expense | (2,671 | ) | — | 378 | — | (2,293 | ) | |||||||||||||
Net income | 253,285 | 495,154 | 137,580 | (534,121 | ) | 351,898 | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 98,613 | 98,613 | |||||||||||||||
Net income attributable to SandRidge Energy, Inc. | $ | 253,285 | $ | 495,154 | $ | 137,580 | $ | (632,734 | ) | $ | 253,285 | |||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Total revenues | $ | — | $ | 1,675,481 | $ | 308,300 | $ | (393 | ) | $ | 1,983,388 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 654,080 | 29,143 | (393 | ) | 682,830 | ||||||||||||||
General and administrative | 329 | 323,808 | 6,288 | — | 330,425 | |||||||||||||||
Depreciation, depletion, amortization and accretion | — | 581,435 | 85,210 | — | 666,645 | |||||||||||||||
Impairment | — | 15,038 | 11,242 | — | 26,280 | |||||||||||||||
Loss on derivative contracts | — | 24,702 | 22,421 | — | 47,123 | |||||||||||||||
Loss on sale of assets | — | 291,743 | 107,343 | — | 399,086 | |||||||||||||||
Total expenses | 329 | 1,890,806 | 261,647 | (393 | ) | 2,152,389 | ||||||||||||||
(Loss) income from operations | (329 | ) | (215,325 | ) | 46,653 | — | (169,001 | ) | ||||||||||||
Equity earnings from subsidiaries | (195,118 | ) | 3,075 | — | 192,043 | — | ||||||||||||||
Interest (expense) income, net | (271,193 | ) | 959 | — | — | (270,234 | ) | |||||||||||||
Loss on extinguishment of debt | (82,005 | ) | — | — | — | (82,005 | ) | |||||||||||||
Other income (expense), net | — | 16,173 | (3,728 | ) | — | 12,445 | ||||||||||||||
(Loss) income before income taxes | (548,645 | ) | (195,118 | ) | 42,925 | 192,043 | (508,795 | ) | ||||||||||||
Income tax expense | 5,244 | — | 440 | — | 5,684 | |||||||||||||||
Net (loss) income | (553,889 | ) | (195,118 | ) | 42,485 | 192,043 | (514,479 | ) | ||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 39,410 | 39,410 | |||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc. | $ | (553,889 | ) | $ | (195,118 | ) | $ | 42,485 | $ | 152,633 | $ | (553,889 | ) | |||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Total revenues | $ | — | $ | 1,638,741 | $ | 404,418 | $ | (108,517 | ) | $ | 1,934,642 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 596,028 | 146,416 | (107,095 | ) | 635,349 | ||||||||||||||
General and administrative | 367 | 235,102 | 7,635 | (1,422 | ) | 241,682 | ||||||||||||||
Depreciation, depletion, amortization and accretion | — | 570,786 | 87,044 | — | 657,830 | |||||||||||||||
Impairment | — | 236,671 | 79,333 | — | 316,004 | |||||||||||||||
Gain on derivative contracts | — | (198,732 | ) | (42,687 | ) | — | (241,419 | ) | ||||||||||||
Total expenses | 367 | 1,439,855 | 277,741 | (108,517 | ) | 1,609,446 | ||||||||||||||
(Loss) income from operations | (367 | ) | 198,886 | 126,677 | — | 325,196 | ||||||||||||||
Equity earnings from subsidiaries | 347,715 | 20,667 | — | (368,382 | ) | — | ||||||||||||||
Interest (expense) income, net | (303,510 | ) | 725 | (564 | ) | — | (303,349 | ) | ||||||||||||
Bargain purchase gain | — | 122,696 | — | — | 122,696 | |||||||||||||||
Loss on extinguishment of debt | (3,075 | ) | — | — | — | (3,075 | ) | |||||||||||||
Other income, net | — | 4,741 | — | — | 4,741 | |||||||||||||||
Income before income taxes | 40,763 | 347,715 | 126,113 | (368,382 | ) | 146,209 | ||||||||||||||
Income tax (benefit) expense | (100,808 | ) | — | 446 | — | (100,362 | ) | |||||||||||||
Net income | 141,571 | 347,715 | 125,667 | (368,382 | ) | 246,571 | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 105,000 | 105,000 | |||||||||||||||
Net income attributable to SandRidge Energy, Inc. | $ | 141,571 | $ | 347,715 | $ | 125,667 | $ | (473,382 | ) | $ | 141,571 | |||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 141,751 | $ | 258,498 | $ | 212,427 | $ | 8,438 | $ | 621,114 | ||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures for property, plant and equipment | — | (1,553,332 | ) | — | — | (1,553,332 | ) | |||||||||||||
Proceeds from sale of assets | — | 711,728 | 2,747 | — | 714,475 | |||||||||||||||
Other | — | (165,551 | ) | 1,140 | 146,027 | (18,384 | ) | |||||||||||||
Net cash (used in) provided by investing activities | — | (1,007,155 | ) | 3,887 | 146,027 | (857,241 | ) | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Distributions to unitholders | — | — | (234,327 | ) | 40,520 | (193,807 | ) | |||||||||||||
Repurchase of common stock | (111,827 | ) | — | — | — | (111,827 | ) | |||||||||||||
Intercompany (advances) borrowings, net | (598,051 | ) | 598,056 | (5 | ) | — | — | |||||||||||||
Other | (66,910 | ) | 150,986 | 19,260 | (194,985 | ) | (91,649 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (776,788 | ) | 749,042 | (215,072 | ) | (154,465 | ) | (397,283 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | (635,037 | ) | 385 | 1,242 | — | (633,410 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 805,505 | 1,013 | 8,145 | — | 814,663 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 170,468 | $ | 1,398 | $ | 9,387 | $ | — | $ | 181,253 | ||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (239,026 | ) | $ | 852,026 | $ | 254,723 | $ | 907 | $ | 868,630 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures for property, plant and equipment | — | (1,496,731 | ) | — | — | (1,496,731 | ) | |||||||||||||
Proceeds from sale of assets | — | 2,566,742 | 17,373 | — | 2,584,115 | |||||||||||||||
Other | — | 89,606 | 3,197 | (109,831 | ) | (17,028 | ) | |||||||||||||
Net cash provided by investing activities | — | 1,159,617 | 20,570 | (109,831 | ) | 1,070,356 | ||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Repayments of borrowings | (1,115,500 | ) | — | — | — | (1,115,500 | ) | |||||||||||||
Premium on debt redemption | (61,997 | ) | — | — | — | (61,997 | ) | |||||||||||||
Distributions to unitholders | — | — | (299,675 | ) | 93,205 | (206,470 | ) | |||||||||||||
Dividends paid—preferred | (55,525 | ) | — | — | — | (55,525 | ) | |||||||||||||
Intercompany borrowings (advances), net | 2,009,146 | (2,018,212 | ) | 9,066 | — | — | ||||||||||||||
Other | (31,821 | ) | 6,660 | 14,845 | 15,719 | 5,403 | ||||||||||||||
Net cash provided by (used in) financing activities | 744,303 | (2,011,552 | ) | (275,764 | ) | 108,924 | (1,434,089 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 505,277 | 91 | (471 | ) | — | 504,897 | ||||||||||||||
Cash and cash equivalents at beginning of year | 300,228 | 922 | 8,616 | — | 309,766 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 805,505 | $ | 1,013 | $ | 8,145 | $ | — | $ | 814,663 | ||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 285,567 | $ | 264,717 | $ | 162,281 | $ | 70,595 | $ | 783,160 | ||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures for property, plant and equipment | — | (2,112,547 | ) | (33,825 | ) | — | (2,146,372 | ) | ||||||||||||
Acquisitions, net of cash received | (693,091 | ) | (147,649 | ) | (587,086 | ) | 587,086 | (840,740 | ) | |||||||||||
Proceeds from sale of assets | 129,830 | 942,675 | 1,333 | (642,671 | ) | 431,167 | ||||||||||||||
Other | (61,343 | ) | 278,708 | — | (217,365 | ) | — | |||||||||||||
Net cash used in investing activities | (624,604 | ) | (1,038,813 | ) | (619,578 | ) | (272,950 | ) | (2,555,945 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from borrowings | 1,850,344 | — | — | — | 1,850,344 | |||||||||||||||
Repayments of borrowings | (350,000 | ) | — | (16,029 | ) | — | (366,029 | ) | ||||||||||||
Proceeds from issuance royalty trust units | — | — | 587,086 | — | 587,086 | |||||||||||||||
Proceeds from sale of royalty trust units | — | — | — | 139,360 | 139,360 | |||||||||||||||
Distributions to unitholders | — | — | (274,980 | ) | 93,253 | (181,727 | ) | |||||||||||||
Dividends paid—preferred | (55,525 | ) | — | — | — | (55,525 | ) | |||||||||||||
Intercompany (advances) borrowings, net | (945,448 | ) | 809,099 | 136,349 | — | — | ||||||||||||||
Other | (64,121 | ) | (34,518 | ) | 30,258 | (30,258 | ) | (98,639 | ) | |||||||||||
Net cash provided by financing activities | 435,250 | 774,581 | 462,684 | 202,355 | 1,874,870 | |||||||||||||||
Net increase in cash and cash equivalents | 96,213 | 485 | 5,387 | — | 102,085 | |||||||||||||||
Cash and cash equivalents at beginning of year | 204,015 | 437 | 3,229 | — | 207,681 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 300,228 | $ | 922 | $ | 8,616 | $ | — | $ | 309,766 | ||||||||||
Supplemental_Information_on_Oi
Supplemental Information on Oil and Natural Gas Producing Activities | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Extractive Industries [Abstract] | ||||||||||||
Supplemental Information on Oil and Natural Gas Producing Activities | Supplemental Information on Oil and Natural Gas Producing Activities | |||||||||||
The supplemental information includes capitalized costs related to oil and natural gas producing activities; costs incurred in oil and natural gas property acquisition, exploration and development; and the results of operations for oil and natural gas producing activities. Supplemental information is also provided for oil, natural gas and NGL production and average sales prices; the estimated quantities of proved oil, natural gas and NGL reserves; the standardized measure of discounted future net cash flows associated with proved oil, natural gas and NGL reserves; and a summary of the changes in the standardized measure of discounted future net cash flows associated with proved oil, natural gas and NGL reserves. | ||||||||||||
Capitalized Costs Related to Oil and Natural Gas Producing Activities | ||||||||||||
The Company’s capitalized costs for oil and natural gas activities consisted of the following (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Oil and natural gas properties | ||||||||||||
Proved | $ | 11,707,147 | $ | 10,972,816 | $ | 12,262,921 | ||||||
Unproved | 290,596 | 531,606 | 865,863 | |||||||||
Total oil and natural gas properties | 11,997,743 | 11,504,422 | 13,128,784 | |||||||||
Less accumulated depreciation, depletion and impairment | (6,359,149 | ) | (5,762,969 | ) | (5,231,182 | ) | ||||||
Net oil and natural gas properties capitalized costs | $ | 5,638,594 | $ | 5,741,453 | $ | 7,897,602 | ||||||
Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development | ||||||||||||
Costs incurred in oil and natural gas property acquisition, exploration and development activities which have been capitalized are summarized as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Acquisitions of properties | ||||||||||||
Proved | $ | 73,370 | $ | 21,130 | $ | 1,761,556 | ||||||
Unproved | 123,649 | 100,242 | 377,185 | |||||||||
Exploration(1) | 41,070 | 82,775 | 120,438 | |||||||||
Development(2) | 1,288,395 | 1,131,269 | 1,704,991 | |||||||||
Total cost incurred | $ | 1,526,484 | $ | 1,335,416 | $ | 3,964,170 | ||||||
____________________ | ||||||||||||
-1 | Includes seismic costs of $10.8 million, $6.7 million and $15.3 million for 2014, 2013 and 2012, respectively. | |||||||||||
-2 | Includes the Company’s share of Century Plant construction costs of $50.0 million for 2012. See Note 7. | |||||||||||
Results of Operations for Oil and Natural Gas Producing Activities (Unaudited) | ||||||||||||
The Company’s results of operations from oil and natural gas producing activities for each of the years 2014, 2013 and 2012 are shown in the following table (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | $ | 1,420,879 | $ | 1,820,278 | $ | 1,759,282 | ||||||
Expenses | ||||||||||||
Production costs | 377,819 | 548,719 | 524,364 | |||||||||
Depreciation and depletion | 434,295 | 567,732 | 568,029 | |||||||||
Accretion of asset retirement obligations | 9,092 | 36,777 | 28,996 | |||||||||
Total expenses | 821,206 | 1,153,228 | 1,121,389 | |||||||||
Income before income taxes | 599,673 | 667,050 | 637,893 | |||||||||
Benefit of income taxes(1) | (3,933 | ) | (7,471 | ) | (437,595 | ) | ||||||
Results of operations for oil and natural gas producing activities (excluding corporate overhead and interest costs) | $ | 603,606 | $ | 674,521 | $ | 1,075,488 | ||||||
____________________ | ||||||||||||
-1 | Reflects the Company’s effective tax rate, including the partial valuation allowance releases. | |||||||||||
Oil, Natural Gas and NGL Reserve Quantities (Unaudited) | ||||||||||||
Proved oil, natural gas and NGL reserves are those quantities, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible, based on prices used to estimate reserves, from a given date forward from known reservoirs, and under existing economic conditions, operating methods, and government regulation prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain. | ||||||||||||
The term “reasonable certainty” implies a high degree of confidence that the quantities of oil, natural gas and NGLs actually recovered will equal or exceed the estimate. To achieve reasonable certainty, the Company’s engineers and independent petroleum consultants relied on technologies that have been demonstrated to yield results with consistency and repeatability. The technologies and economic data used to estimate the Company’s proved reserves include, but are not limited to, well logs, geologic maps, seismic data, well test data, production data, historical price and cost information and property ownership interests. The accuracy of the reserve estimates is dependent on many factors, including the following: | ||||||||||||
• | the quality and quantity of available data and the engineering and geological interpretation of that data; | |||||||||||
• | estimates regarding the amount and timing of future costs, which could vary considerably from actual costs; | |||||||||||
• | the accuracy of mandated economic assumptions such as the future prices of oil, natural gas and NGLs; and | |||||||||||
• | the judgment of the personnel preparing the estimates. | |||||||||||
Proved developed reserves are proved reserves expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared with the cost of a new well. Proved undeveloped reserves are reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively large major expenditure is required for recompletion. | ||||||||||||
The table below represents the Company’s estimate of proved oil, natural gas and NGL reserves attributable to the Company’s net interest in oil and natural gas properties, all of which are located in the continental United States, based upon the evaluation by the Company and its independent petroleum engineers of pertinent geoscience and engineering data in accordance with the SEC’s regulations. Estimates of the substantial majority of the Company’s proved reserves have been prepared by independent reservoir engineers and geoscience professionals and are reviewed by members of the Company’s senior management with professional training in petroleum engineering to ensure that the Company consistently applies rigorous professional standards and the reserve definitions prescribed by the SEC. | ||||||||||||
Cawley, Gillespie & Associates, Inc., (“CG&A”), Netherland, Sewell & Associates, Inc. (“Netherland Sewell”) and Lee Keeling and Associates, Inc. (“Lee Keeling”), independent oil and natural gas consultants, prepared the estimates of proved reserves of oil, natural gas and NGLs attributable to the majority of the Company’s net interest in oil and natural gas properties as of the end of one or more of 2014, 2013 and 2012. CG&A, Netherland Sewell, and Lee Keeling are independent petroleum engineers, geologists, geophysicists and petrophysicists and do not own an interest in the Company or its properties and are not employed on a contingent basis. CG&A and Netherland Sewell prepared the estimates of proved reserves for a majority of the Company’s properties as of December 31, 2014. The remaining 13.9% of estimates of proved reserves was based on Company estimates. | ||||||||||||
The Company believes the geoscience and engineering data examined provides reasonable assurance that the proved reserves are economically producible in future years from known reservoirs, and under existing economic conditions, operating methods and governmental regulations. Estimates of proved reserves are subject to change, either positively or negatively, as additional information is available and contractual and economic conditions change. | ||||||||||||
2012 Activity. During 2012, excluding asset sales, the Company recognized an overall net increase in its proved oil and NGL reserves of approximately 67.9 MMBbls and 40.9 MMBbls, respectively, primarily due to additional reserves from extensions and discoveries associated with successful drilling in the Mississippian formation in the Mid-Continent area and the Central Basin Platform in the Permian Basin. These increases to proved oil reserves were slightly offset by downward revisions of 22.3 MMBbls due to well performance in the Mid-Continent and Permian Basin during 2012. Additionally, the Company recognized an overall net increase of 60.5 Bcf in its proved natural gas reserve quantities primarily due to 489.3 Bcf attributable to extensions and discoveries associated with successful drilling in the Mississippian formation in the Mid-Continent and the Central Basin Platform in the Permian Basin. These increases were partially offset by downward revisions of 538.2 Bcf, primarily due to lower natural gas prices, and, to a lesser extent, due to well performance in the Mid-Continent and Permian Basin during 2012 and production of 93.5 Bcf. Continued low natural gas prices could result in additional negative revisions to the Company’s natural gas reserves. | ||||||||||||
Sales of proved reserves during 2012 totaled 23.6 MMBoe from the divestiture of the Company’s tertiary recovery properties. | ||||||||||||
2013 Activity. The Company sold its Permian Properties in February 2013. Proved reserves were 198.9 MMBoe, 55% of which were proved developed reserves, for the Permian Properties at December 31, 2012. Estimated standardized measure of discounted cash flows for the Permian Properties, determined by allocating the Company's standardized measure of discounted cash flows to the Permian Properties based on the present value of discounted cash flows attributable to the Permian Properties relative to the Company's total present value of discounted cash flows was $2.5 billion. See Note 3 for additional information regarding the sale. The Company recognized an increase of 119.2 MMBoe in total reserves primarily attributable to extensions and discoveries associated with successful drilling in the Mississippian formation in the Mid-Continent. | ||||||||||||
2014 Activity. During 2014, the Company recognized additional oil, NGL and natural gas reserves from extensions and discoveries of 37.6 MMBbls, 27.5 MMBbls, and 467.2 Bcf, respectively, primarily due to successful drilling in the Mississippian formation in the Mid-Continent area. Revisions of previous estimates decreased oil reserves by 18.7 MMBbls, primarily comprised of (i) approximately 9 MMBbls from Permian Basin proved undeveloped reserves, largely due to removal of drilling locations not expected to be drilled within a five year period, (ii) approximately 8 MMBbls from well performance in the Mid-Continent and (iii) approximately 2 MMBbls from acreage losses or revisions to well interest ownerships. These negative revisions were offset by positive revisions to NGL and gas reserves of 11.1 MMBbls and 167.6 Bcf, respectively, primarily from well performance in the Mid-Continent area. Acquisitions of reserves added 3.5 MMBoe. | ||||||||||||
Sales of proved reserves during 2014 totaled 55.5 MMBoe from the sale of the Gulf Properties. | ||||||||||||
The summary below presents changes in the Company’s estimated reserves for 2012, 2013 and 2014. | ||||||||||||
Oil | NGL | Natural Gas | ||||||||||
(MBbls) | (MBbls) | (MMcf)(1) | ||||||||||
Proved developed and undeveloped reserves | ||||||||||||
As of December 31, 2011 | 214,450 | 30,335 | 1,355,056 | |||||||||
Revisions of previous estimates | (37,394 | ) | 15,098 | (538,214 | ) | |||||||
Acquisitions of new reserves | 31,470 | 683 | 202,995 | |||||||||
Extensions and discoveries | 89,656 | 27,259 | 489,302 | |||||||||
Sales of reserves in place | (20,269 | ) | (3,287 | ) | (548 | ) | ||||||
Production | (15,868 | ) | (2,094 | ) | (93,549 | ) | ||||||
As of December 31, 2012(2) | 262,045 | 67,994 | 1,415,042 | |||||||||
Revisions of previous estimates | (13,969 | ) | 3,717 | (53,432 | ) | |||||||
Acquisitions of new reserves | 43 | 13 | 363 | |||||||||
Extensions and discoveries | 40,570 | 18,686 | 359,918 | |||||||||
Sales of reserves in place | (131,769 | ) | (29,067 | ) | (228,229 | ) | ||||||
Production | (14,279 | ) | (2,291 | ) | (103,233 | ) | ||||||
As of December 31, 2013(2) | 142,641 | 59,052 | 1,390,429 | |||||||||
Revisions of previous estimates | (18,687 | ) | 11,103 | 167,589 | ||||||||
Acquisitions of new reserves | 1,009 | 441 | 12,527 | |||||||||
Extensions and discoveries | 37,603 | 27,500 | 467,185 | |||||||||
Sales of reserves in place | (25,659 | ) | (2,516 | ) | (163,800 | ) | ||||||
Production | (10,876 | ) | (3,794 | ) | (85,697 | ) | ||||||
As of December 31, 2014(2) | 126,031 | 91,786 | 1,788,233 | |||||||||
Proved developed reserves | ||||||||||||
As of December 31, 2011 | 101,578 | 17,150 | 670,382 | |||||||||
As of December 31, 2012 | 136,605 | 33,785 | 896,701 | |||||||||
As of December 31, 2013 | 83,893 | 35,807 | 951,609 | |||||||||
As of December 31, 2014 | 79,022 | 56,823 | 1,203,447 | |||||||||
Proved undeveloped reserves | ||||||||||||
As of December 31, 2011 | 112,872 | 13,185 | 684,674 | |||||||||
As of December 31, 2012 | 125,440 | 34,209 | 518,341 | |||||||||
As of December 31, 2013 | 58,748 | 23,245 | 438,820 | |||||||||
As of December 31, 2014 | 47,009 | 34,963 | 584,786 | |||||||||
____________________ | ||||||||||||
-1 | Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit. | |||||||||||
-2 | Includes proved reserves attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 as shown in the table below: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Oil (MBbl) | 11,027 | 13,569 | 17,340 | |||||||||
NGL (MBbl) | 4,761 | 4,737 | 5,132 | |||||||||
Natural gas (MMcf) | 70,833 | 69,693 | 94,543 | |||||||||
Standardized Measure of Discounted Future Net Cash Flows (Unaudited) | ||||||||||||
The standardized measure of discounted cash flows and summary of the changes in the standardized measure computation from year to year are prepared in accordance with Accounting Standards Codification Topic 932, Extractive Activities—Oil and Gas (“ASC Topic 932”). The assumptions underlying the computation of the standardized measure of discounted cash flows may be summarized as follows: | ||||||||||||
• | the standardized measure includes the Company’s estimate of proved oil, natural gas and NGL reserves and projected future production volumes based upon economic conditions; | |||||||||||
• | pricing is applied based upon 12-month average market prices at December 31, 2014, 2013 and 2012 adjusted for fixed or determinable contracts that are in existence at year-end. The calculated weighted average per unit prices for the Company’s proved reserves and future net revenues were as follows: | |||||||||||
At December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Oil (per barrel) | $ | 91.65 | $ | 95.67 | $ | 91.65 | ||||||
NGL (per barrel) | $ | 32.79 | $ | 31.4 | $ | 32.64 | ||||||
Natural gas (per Mcf) | $ | 3.61 | $ | 3.65 | $ | 2.29 | ||||||
• | future development and production costs are determined based upon actual cost at year-end; | |||||||||||
• | the standardized measure includes projections of future abandonment costs based upon actual costs at year-end; and | |||||||||||
• | a discount factor of 10% per year is applied annually to the future net cash flows. | |||||||||||
The summary below presents the Company’s future net cash flows relating to proved oil, natural gas and NGL reserves based on the standardized measure in ASC Topic 932 (in thousands). | ||||||||||||
At December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Future cash inflows from production | $ | 21,022,320 | $ | 19,937,484 | $ | 29,482,544 | ||||||
Future production costs | (6,499,366 | ) | (6,843,713 | ) | (8,899,465 | ) | ||||||
Future development costs(1) | (1,810,201 | ) | (2,546,680 | ) | (4,021,051 | ) | ||||||
Future income tax expenses | (3,223,740 | ) | (2,283,541 | ) | (3,721,509 | ) | ||||||
Undiscounted future net cash flows | 9,489,013 | 8,263,550 | 12,840,519 | |||||||||
10% annual discount | (5,401,261 | ) | (4,245,939 | ) | (7,000,151 | ) | ||||||
Standardized measure of discounted future net cash flows(2) | $ | 4,087,752 | $ | 4,017,611 | $ | 5,840,368 | ||||||
____________________ | ||||||||||||
-1 | Includes abandonment costs. | |||||||||||
-2 | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 respectively. | |||||||||||
The following table represents the Company’s estimate of changes in the standardized measure of discounted future net cash flows from proved reserves (in thousands): | ||||||||||||
Present value as of December 31, 2011 | $ | 5,216,337 | ||||||||||
Changes during the year | ||||||||||||
Revenues less production and other costs | (1,234,918 | ) | ||||||||||
Net changes in prices, production and other costs | (2,555,391 | ) | ||||||||||
Development costs incurred | 766,943 | |||||||||||
Net changes in future development costs | (45,397 | ) | ||||||||||
Extensions and discoveries | 2,092,423 | |||||||||||
Revisions of previous quantity estimates | (530,755 | ) | ||||||||||
Accretion of discount | 678,200 | |||||||||||
Net change in income taxes | 11,433 | |||||||||||
Purchases of reserves in-place | 1,708,301 | |||||||||||
Sales of reserves in-place | (410,415 | ) | ||||||||||
Timing differences and other(1) | 143,607 | |||||||||||
Net change for the year | 624,031 | |||||||||||
Present value as of December 31, 2012(2) | 5,840,368 | |||||||||||
Changes during the year | ||||||||||||
Revenues less production and other costs | (1,271,559 | ) | ||||||||||
Net changes in prices, production and other costs | 271,566 | |||||||||||
Development costs incurred | 474,275 | |||||||||||
Net changes in future development costs | (207,729 | ) | ||||||||||
Extensions and discoveries | 1,406,102 | |||||||||||
Revisions of previous quantity estimates | (296,418 | ) | ||||||||||
Accretion of discount | 711,385 | |||||||||||
Net change in income taxes | 477,328 | |||||||||||
Purchases of reserves in-place | 1,628 | |||||||||||
Sales of reserves in-place | (3,172,187 | ) | ||||||||||
Timing differences and other(1) | (217,148 | ) | ||||||||||
Net change for the year | (1,822,757 | ) | ||||||||||
Present value as of December 31, 2013(2) | 4,017,611 | |||||||||||
Changes during the year | ||||||||||||
Revenues less production and other costs | (1,043,060 | ) | ||||||||||
Net changes in prices, production and other costs | 331,694 | |||||||||||
Development costs incurred | 364,262 | |||||||||||
Net changes in future development costs | (341,183 | ) | ||||||||||
Extensions and discoveries | 1,785,963 | |||||||||||
Revisions of previous quantity estimates | (77,688 | ) | ||||||||||
Accretion of discount | 477,458 | |||||||||||
Net change in income taxes | (256,371 | ) | ||||||||||
Purchases of reserves in-place | 50,958 | |||||||||||
Sales of reserves in-place | (1,058,330 | ) | ||||||||||
Timing differences and other(1) | (163,562 | ) | ||||||||||
Net change for the year | 70,141 | |||||||||||
Present value as of December 31, 2014(2) | $ | 4,087,752 | ||||||||||
____________________ | ||||||||||||
-1 | The change in timing differences and other are related to revisions in the Company’s estimated time of production and development. | |||||||||||
-2 | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013, and 2012 respectively. |
Quarterly_Financial_Results_Un
Quarterly Financial Results (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Results (Unaudited) | Quarterly Financial Results (Unaudited) | |||||||||||||||
The Company’s operating results for each quarter of 2014 and 2013 are summarized below (in thousands, except per share data). | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
2014 | ||||||||||||||||
Total revenues | $ | 443,056 | $ | 374,714 | $ | 394,107 | $ | 346,881 | ||||||||
(Loss) income from operations(1)(2) | $ | (82,330 | ) | $ | 42,079 | $ | 256,491 | $ | 373,984 | |||||||
Net (loss) income(1)(2) | $ | (142,406 | ) | $ | (17,252 | ) | $ | 197,499 | $ | 314,057 | ||||||
(Loss applicable) income available to SandRidge Energy, Inc. common stockholders(1)(2) | $ | (150,217 | ) | $ | (46,775 | ) | $ | 145,957 | $ | 254,295 | ||||||
(Loss applicable) income available per share to SandRidge Energy, Inc. common stockholders(3) | ||||||||||||||||
Basic | $ | (0.31 | ) | $ | (0.10 | ) | $ | 0.3 | $ | 0.55 | ||||||
Diluted | $ | (0.31 | ) | $ | (0.10 | ) | $ | 0.27 | $ | 0.48 | ||||||
2013 | ||||||||||||||||
Total revenues | $ | 511,690 | $ | 512,987 | $ | 493,603 | $ | 465,108 | ||||||||
(Loss) income from operations(4)(5)(6) | $ | (367,482 | ) | $ | 78,386 | $ | (2,166 | ) | $ | 122,261 | ||||||
Net (loss) income(4)(5)(6) | $ | (539,215 | ) | $ | 16,613 | $ | (65,256 | ) | $ | 73,379 | ||||||
(Loss applicable) income available to SandRidge Energy, Inc. common stockholders(4)(5)(6) | $ | (501,177 | ) | $ | (42,389 | ) | $ | (95,328 | ) | $ | 29,480 | |||||
(Loss applicable) income available per share to SandRidge Energy, Inc. common stockholders(3) | ||||||||||||||||
Basic | $ | (1.05 | ) | $ | (0.09 | ) | $ | (0.20 | ) | $ | 0.06 | |||||
Diluted | $ | (1.05 | ) | $ | (0.09 | ) | $ | (0.20 | ) | $ | 0.06 | |||||
____________________ | ||||||||||||||||
-1 | Includes a full cost ceiling limitation impairment of $164.8 million in the first quarter and impairments of drilling assets of $3.1 million and $24.3 million in the second and fourth quarters, respectively. | |||||||||||||||
-2 | Includes loss (gain) on derivative contracts of $42.5 million, $85.3 million, $(132.6) million and $(329.2) million for the first, second, third and fourth quarters, respectively. | |||||||||||||||
-3 | (Loss applicable) income available per share to common stockholders for each quarter is computed using the weighted-average number of shares outstanding during the quarter, while earnings per share for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of (loss applicable) income available per share to common stockholders for each of the four quarters may not equal the fiscal year amount. | |||||||||||||||
-4 | Includes a $10.6 million impairment of various drilling assets and a $2.9 million impairment of a corporate asset in the second quarter of 2013 and a $2.1 million and $10.0 million impairment of certain midstream inventory, natural gas compressors, gas treating plants and a CO2 compression station in the second and fourth quarters of 2013, respectively. | |||||||||||||||
-5 | Includes loss (gain) on derivative contracts of $40.9 million, $(103.7) million, $132.8 million and $(22.9) million for the first, second, third and fourth quarters, respectively. | |||||||||||||||
-6 | Includes loss on sale of Permian Properties of $398.9 million in the first quarter of 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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 and disposal 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 statements 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 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. |
Use of Estimates | Use of Estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“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 NGL reserves; cash flow estimates used in impairment tests of long-lived assets; depreciation, depletion and amortization; asset retirement obligations; assignments of fair value and allocations of purchase price in connection with business combinations; determinations of significant alterations to the full cost pool and related estimates of fair value for allocations of divested oil and natural gas properties that result in substantial economic differences between the properties divested and the properties remaining; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes these estimates are reasonable, actual results could differ significantly. | |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers all highly-liquid instruments with an original maturity of three months or less to be cash equivalents as these instruments are readily convertible to known amounts of cash and bear insignificant risk of changes in value due to their short maturity period. |
Accounts Receivable, Net | Accounts Receivable, Net. The Company has receivables for sales of oil, natural gas and NGLs, as well as receivables related to the exploration, production and treating services for oil and natural gas. An allowance for doubtful accounts has been established based on management’s review of the collectability of the receivables in light of historical experience, the nature and volume of the receivables and other subjective factors. Accounts receivable are charged against the allowance, upon approval by management, when they are deemed uncollectible. Refer to Note 6 for further information on the Company’s accounts receivable and allowance for doubtful accounts. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Certain of the Company’s financial assets and liabilities are measured at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Company’s financial instruments, not otherwise recorded at fair value, consist primarily of cash, trade receivables, trade payables and long-term debt. The carrying value of cash, trade receivables and trade payables are considered to be representative of their respective fair values due to the short-term maturity of these instruments. See Note 5 for further discussion of the Company’s fair value measurements. |
Fair Value of Non-financial Assets and Liabilities | Fair Value of Non-financial Assets and Liabilities. The Company also applies fair value accounting guidance to initially, or as events dictate, measure non-financial assets and liabilities such as those obtained through business acquisitions, property, plant and equipment and asset retirement obligations. These assets and liabilities are subject to fair value adjustments only in certain circumstances and are not subject to recurring revaluations. Fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two as considered appropriate based on the circumstances. Under the discounted cash flow method, estimated future cash flows are based on management’s expectations for the future and include estimates of future oil and natural gas production or other applicable sales estimates, operational costs and a risk-adjusted discount rate. The Company may use the present value of estimated future cash inflows and/or outflows or third-party offers or prices of comparable assets with consideration of current market conditions to value its non-financial assets and liabilities when circumstances dictate determining fair value is necessary. Given the significance of the unobservable nature of a number of the inputs, these are considered Level 3 on the fair value hierarchy discussed in Note 5. |
Derivative Financial Instruments | Derivative Financial Instruments. To manage risks related to fluctuations in prices attributable to its expected oil and natural gas production, the Company enters into oil and natural gas derivative contracts. The Company may also, from time to time, enter into interest rate swaps in order to manage risk associated with its exposure to variable interest rates. |
The Company recognizes its derivative instruments as either assets or liabilities at fair value with changes in fair value recognized in earnings unless designated as a hedging instrument with specific hedge accounting criteria having been met. The Company has elected not to designate price risk management activities as accounting hedges under applicable accounting guidance, and, accordingly, accounts for its commodity derivative contracts at fair value with changes in fair value reported currently in earnings. The Company nets derivative assets and liabilities whenever it has a legally enforceable master netting agreement with the counterparty to a derivative contract. The related cash flow impact of the Company’s derivative activities are reflected as cash flows from operating activities unless the derivative contract contains a significant financing element, in which case, cash settlements are classified as cash flows from financing activities in the consolidated statements of cash flows. See Note 13 for further discussion of the Company’s derivatives. | |
Oil and Natural Gas Operations | Oil and Natural Gas Operations. The Company uses the full cost method to account for its oil and natural gas properties. Under full cost accounting, all costs directly associated with the acquisition, exploration and development of oil, natural gas and NGL reserves are capitalized into a full cost pool. These capitalized costs include costs of all unproved properties and internal costs directly related to the Company’s acquisition, exploration and development activities and capitalized interest. The Company capitalized internal costs of $55.4 million, $74.7 million and $61.3 million to the full cost pool in 2014, 2013 and 2012, respectively. Capitalized costs are amortized using the unit-of-production method. Under this method, depreciation and depletion is computed at the end of each quarter by multiplying total production for the quarter by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base plus future development costs by net equivalent proved reserves at the beginning of the quarter. |
Costs associated with unproved properties are excluded from the amortizable cost base until a determination has been made as to the existence of proved reserves. Unproved properties are reviewed at the end of each quarter to determine whether the costs incurred should be reclassified to the full cost pool and, thereby, subjected to amortization. The costs associated with unproved properties relate primarily to costs to acquire unproved acreage. Unproved leasehold costs are transferred to the amortization base with the costs of drilling the related well upon determination of the existence of proved reserves or upon impairment of a lease. All items classified as unproved property are assessed, on an individual basis or as a group if properties are individually insignificant, on a quarterly basis for possible impairment or reduction in value. The assessment includes consideration of various factors, including, but not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. Costs of seismic data are allocated to various unproved leaseholds and transferred to the amortization base with the associated leasehold costs on a specific project basis. | |
Under the full cost method of accounting, total capitalized costs of oil and natural gas properties, net of accumulated depreciation, depletion and impairment, less related deferred income taxes may not exceed an amount equal to the present value of future net revenues from proved reserves, discounted at 10% per annum, plus the lower of cost or fair value of unproved properties, plus estimated salvage value, less the related tax effects (the “ceiling limitation”). A ceiling limitation calculation is performed at the end of each quarter. If total capitalized costs, net of accumulated depreciation, depletion and impairment, less related deferred taxes are greater than the ceiling limitation, a write-down or impairment of the full cost pool is required. A write-down of the carrying value of the full cost pool is a non-cash charge that reduces earnings and impacts stockholders’ equity in the period of occurrence and typically results in lower depreciation and depletion expense in future periods. Once incurred, a write-down is not reversible at a later date. | |
The ceiling limitation calculation is prepared using the 12-month oil and natural gas average price for the most recent 12 months as of the balance sheet date and as adjusted for basis or location differentials, held constant over the life of the reserves (“net wellhead prices”). If applicable, these net wellhead prices would be further adjusted to include the effects of any fixed price arrangements for the sale of oil and natural gas. Derivative contracts that qualify and are designated as cash flow hedges are included in estimated future cash flows, although the Company historically has not designated any of its derivative contracts as cash flow hedges and has therefore not included its derivative contracts in estimating future cash flows. The future cash outflows associated with future development or abandonment of wells are included in the computation of the discounted present value of future net revenues for purposes of the ceiling limitation calculation. | |
Sales and abandonments of oil and natural gas properties being amortized are accounted for as adjustments to the full cost pool, with no gain or loss recognized, unless the adjustments would significantly alter the relationship between capitalized costs and proved oil, natural gas and NGL reserves. A significant alteration would not ordinarily be expected to occur upon the sale of reserves involving less than 25% of the proved reserve quantities of a cost center. | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net. Other capitalized costs, including drilling equipment, natural gas gathering and treating equipment, transportation equipment and other property and equipment are carried at cost. Renewals and improvements are capitalized while repairs and maintenance are expensed. Depreciation of such property and equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from 10 to 39 years for buildings and 3 to 30 years for equipment. When property and equipment components are disposed of, the cost and the related accumulated depreciation are removed and any resulting gain or loss is reflected in the consolidated statements of operations. |
Realization of the carrying value of property and equipment is reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying value of such asset may not be recoverable. Assets are considered to be impaired if a forecast of undiscounted estimated future net operating cash flows directly related to the asset or asset group including disposal value, if any, is less than the carrying amount of the asset or asset group. If an asset or asset group is considered to be impaired, the impairment loss is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value. See Note 8 for further discussion of impairments. | |
Capitalized Interest | Capitalized Interest. Interest is capitalized on assets being made ready for use using a weighted average interest rate based on the Company’s borrowings outstanding during that time. |
Debt Issuance Costs | Debt Issuance Costs. The Company amortizes debt issuance costs related to its long-term debt as interest expense over the scheduled maturity period of the related debt. The Company includes unamortized debt issuance costs in other assets in the consolidated balance sheets. Upon retirement of debt, any unamortized costs are written off and included in the determination of the gain or loss on extinguishment of debt. |
Restricted Deposits | Restricted Deposits. Restricted deposits represent bank trust and escrow accounts required by the Bureau of Ocean Energy Management, Bureau of Safety and Environmental Enforcement, surety bond underwriters, purchase agreements or other settlement agreements to satisfy the Company’s eventual responsibility to plug and abandon wells and remove structures when certain offshore fields are no longer in use. Such restricted deposits are included in other assets in the accompanying consolidated balance sheet as of December 31, 2013. The Company did not have restricted deposits as of December 31, 2014. |
Goodwill | Goodwill. During the year ended December 31, 2012, the Company impaired goodwill previously recorded and assigned to its exploration and production segment in conjunction with an acquisition in 2010. See Note 8 for further discussion of the goodwill impairment test performed. |
Investments | Investments. Investments in marketable equity securities have been designated as available for sale and measured at fair value pursuant to the fair value option which requires unrealized gains and losses be reported in earnings. |
Asset Retirement Obligations | Asset Retirement Obligations. The Company owns oil and natural gas properties that require expenditures to plug, abandon and remediate wells at the end of their productive lives, in accordance with applicable federal and state laws. Liabilities for these asset retirement obligations are recorded in the period in which the liability is incurred (at the time the wells are drilled or acquired) at the estimated present value at the asset’s inception, with the offsetting increase to property cost. These property costs are depreciated on a unit-of-production basis within the full cost pool. The liability accretes each period until it is settled or the well is sold, at which time the liability is removed. Both the accretion and the depreciation are included in the consolidated statement of operations. The Company determines its asset retirement obligations by calculating the present value of estimated expenses related to the liability. Estimating future asset retirement obligations requires management to make estimates and judgments regarding timing, existence of a liability and what constitutes adequate restoration. Inherent in the present value calculation rates are the timing of settlement and changes in the legal, regulatory, environmental and political environments, which are subject to change. See Note 14 for further discussion of the Company’s asset retirement obligations. |
In certain instances, the Company may be required to maintain deposits to escrow accounts for future plugging and abandonment obligations. See Restricted Deposits discussed above. | |
Revenue Recognition | Revenue Recognition and Natural Gas Balancing. Sales of oil, natural gas and NGLs are recorded when title of oil, natural gas and NGL production passes to the customer, net of royalties, discounts and allowances, as applicable. Taxes assessed by governmental authorities on oil, natural gas and NGL sales are presented separately from such revenues and included in production tax expense in the consolidated statements of operations. |
The Company recognizes revenues and expenses generated from daywork and footage drilling contracts as the services are performed as the Company does not bear the risk of completion of the well. The Company may receive lump-sum fees for the mobilization of equipment and personnel. Mobilization fees received and costs incurred to mobilize a rig from one location to another are recognized at the time mobilization services are performed. | |
In general, natural gas purchased and sold by the midstream business is priced at a published daily or monthly index price. Sales to wholesale customers typically incorporate a premium for managing their transmission and balancing requirements. Midstream services revenues are recognized upon delivery of natural gas to customers and/or when services are rendered, pricing is determined and collectability is reasonably assured. Revenues from third-party midstream services are presented on a gross basis, since the Company acts as a principal by taking ownership of the natural gas purchased and taking responsibility of fulfillment for natural gas volumes sold. | |
Natural Gas Balancing | The Company accounts for natural gas production imbalances using the sales method, whereby it recognizes revenue on all natural gas sold to its customers notwithstanding the fact that its ownership may be less than 100% of the natural gas sold. Liabilities are recorded for imbalances greater than the Company’s proportionate share of remaining estimated natural gas reserves. The Company has recorded a liability for natural gas imbalance positions related to natural gas properties with insufficient proved reserves of $1.4 million and $2.6 million at December 31, 2014 and 2013, respectively. The Company includes the gas imbalance positions in other long-term obligations in the consolidated balance sheets. |
Revenue Recognition, Construction Contracts | The Company accounted for its construction contract, discussed in Note 11, using the completed-contract method, under which contract revenues and costs are recognized when work under the contract is completed or substantially completed and assets have been transferred. In the interim, costs incurred on and billings related to contracts in process are accumulated on the balance sheet. Contract losses are recorded at the time it is determined that a loss will be incurred. Contract gains, if any, are recorded upon substantial completion of the construction project. |
Stock-based Compensation | Stock-Based Compensation. The Company grants restricted stock awards to members of its Board of Directors (the “Board”) and its employees. Such awards and the related stock-based compensation cost are measured based on the calculated fair value of the award on the grant date. The expense, net of estimated forfeitures, is recognized on a straight-line basis over the employee’s requisite service period, generally the vesting period of the award. To the extent stock-based compensation cost relates to employees directly involved in exploration and development activities, such amounts are capitalized to oil and natural gas properties. Amounts not capitalized are recognized as general and administrative expense, production expense, cost of sales and midstream and marketing expense in the consolidated statements of operations. The related excess tax benefit received upon vesting of restricted stock, if any, is reflected in the consolidated statements of cash flows as a financing activity. The related excess tax expense due upon vesting of restricted stock, if any, is reflected in the consolidated statements of cash flows as an operating activity. |
Performance Unit Compensation. The Company awards performance units, which contain a market-based performance component with cash settlement at the end of the performance period, to certain members of senior management. The Company recognizes a liability and expense for performance unit compensation for the portion earned over the requisite service period in an amount equal to the fair value of the performance units granted. Changes in the fair value of the units for which service has been met are recognized as compensation expense with a corresponding adjustment to the liability. To the extent performance unit compensation cost relates to those directly involved in exploration and development activities, such amounts are capitalized to oil and natural gas properties. Amounts not capitalized are recognized as general and administrative expense, production expense, cost of sales and midstream and marketing expense in the consolidated statements of operations. | |
Advertising Costs | Advertising Costs. The Company expenses advertising costs as incurred. |
Income Taxes | Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the amounts of assets and liabilities reported for financial statement purposes and their tax basis. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. |
The Company has elected an accounting policy in which interest and penalties on income taxes are presented as a component of the income tax provision, rather than as a component of interest expense. Interest and penalties resulting from the underpayment or the late payment of income taxes due to a taxing authority and interest and penalties accrued relating to income tax contingencies, if any, are presented, on a net of tax basis, as a component of the income tax provision. | |
Earnings per Share | Earnings per Share. Basic earnings per common share is calculated by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing earnings available to common stockholders by the weighted average number of diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted earnings per share calculation consist of unvested restricted stock awards, using the treasury method, and convertible preferred stock. When a loss exists, all potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share. See Note 19 for the Company’s earnings per share calculation. |
Commitments and Contingencies | Commitments and Contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Environmental expenditures are expensed or capitalized, as appropriate, depending on future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefit are expensed. Liabilities related to future costs are recorded on an undiscounted basis when environmental assessments and/or remediation activities are probable and costs can be reasonably estimated. See Note 15 for discussion of the Company’s commitments and contingencies. |
Concentration of Risk | Concentration of Risk. All of the Company’s derivative transactions have been carried out in the over-the-counter market. The entry into derivative transactions in the over-the-counter market involves the risk that the counterparties may be unable to meet the financial terms of the transactions. The counterparties for all of the Company’s derivative transactions have an “investment grade” credit rating. The Company monitors on an ongoing basis the credit ratings of its derivative counterparties and considers its counterparties’ credit default risk ratings in determining the fair value of its derivative contracts. The Company’s derivative contracts are with multiple counterparties to minimize its exposure to any individual counterparty. |
A default by the Company under its senior secured revolving credit facility (the “senior credit facility”) constitutes a default under its derivative contracts with counterparties that are lenders under the senior credit facility. The Company does not require collateral or other security from counterparties to support derivative instruments. The Company has master netting agreements with all of its derivative counterparties, which allow the Company to net its derivative assets and liabilities with the same counterparty. 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 the counterparties under the derivative contracts. The Company’s loss is further limited as any amounts due from a defaulting counterparty that is a lender under the senior credit facility can be offset against amounts owed, if any, to such counterparty under the Company’s senior credit facility. | |
The Company operates a substantial portion of its oil and natural gas properties. As the operator of a property, the Company makes full payment for costs associated with the property and seeks reimbursement from the other working interest owners in the property for their share of those costs. The Company’s joint interest partners consist primarily of independent oil and natural gas producers. If the oil and natural gas exploration and production industry in general was adversely affected, the ability of the joint interest partners to reimburse the Company could be adversely affected. | |
The purchasers of the Company’s oil, natural gas and NGL production consist primarily of independent marketers, major oil and natural gas companies and gas pipeline companies. See Note 22 for information regarding the Company’s major customers. The Company believes alternate purchasers are available in its areas of operations and does not believe the loss of any one purchaser would materially affect the Company’s ability to sell the oil, natural gas and NGLs it produces. | |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted. In April 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which amends the definition of a discontinued operations to elevate the threshold for a disposal transaction to qualify as a discontinued operation and requires entities to provide additional disclosures for disposal transactions that do not meet the discontinued operations criteria. The guidance is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. The guidance will be adopted January 1, 2015 and the Company is currently evaluating the impact of the adoption on its classification of future dispositions as discontinued operations. |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” 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 the guidance is 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. | |
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the effect the guidance will have on its related disclosures. | |
In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis," which makes changes to both the variable interest model and the voting model, affecting all reporting entities involved with limited partnerships or similar entities, particularly industries such as the oil and gas, transportation and real estate sectors. In addition to reducing the number of consolidation models from four to two, the guidance simplifies and improves current guidance by placing more emphasis on risk of loss when determining a controlling financial interest and reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a VIE. The requirements of the guidance are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. 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 Transfers | 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. |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
Supplemental Cash Flow Information | Supplemental disclosures to the consolidated statements of cash flows are presented below: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||
Cash paid for interest, net of amounts capitalized | $ | (235,793 | ) | $ | (274,850 | ) | $ | (257,152 | ) | |||
Cash received (paid) for income taxes | $ | 1,928 | $ | (4,610 | ) | $ | (1,324 | ) | ||||
Supplemental Disclosure of Noncash Investing and Financing Activities | ||||||||||||
Deposit on pending sale | $ | — | $ | (255,000 | ) | $ | 255,000 | |||||
Change in accrued capital expenditures | $ | (55,557 | ) | $ | 72,848 | $ | (77,610 | ) | ||||
Asset retirement costs capitalized | $ | 4,968 | $ | 5,078 | $ | 7,479 | ||||||
Common stock issued in connection with acquisition | $ | — | $ | — | $ | 542,138 | ||||||
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Permian Properties | ||||||||||||
Business Acquisitions And Dispositions [Line Items] | ||||||||||||
Disposal, Revenue and Expense Information | The following table presents revenues and direct operating expenses of the Permian Properties included in the accompanying consolidated statements of operations for the years ended December 31, 2013 and 2012 (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2013(1) | 2012 | |||||||||||
Revenues | $ | 68,027 | $ | 566,075 | ||||||||
Direct operating expenses | $ | 17,453 | $ | 130,337 | ||||||||
____________________ | ||||||||||||
-1 | Includes revenues and direct operating expenses through February 26, 2013, the date of sale. | |||||||||||
Gulf Properties | ||||||||||||
Business Acquisitions And Dispositions [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 consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014(1) | 2013 | 2012 | ||||||||||
Revenues | $ | 90,920 | $ | 627,236 | $ | 449,420 | ||||||
Expenses | $ | 63,674 | $ | 491,991 | $ | 360,209 | ||||||
____________________ | ||||||||||||
-1 | Includes revenues and expenses through February 25, 2014, the date of the sale. | |||||||||||
Dynamic Acquisition | ||||||||||||
Business Acquisitions And Dispositions [Line Items] | ||||||||||||
Consideration Paid, Assets Acquired and Liabilities Assumed | In the second quarter of 2013, the Company completed its valuation of the Dynamic Acquisition with no adjustments in 2013 to the valuation of assets acquired and liabilities assumed, which are included in the following table (in thousands, except stock price): | |||||||||||
Consideration(1) | ||||||||||||
Shares of SandRidge common stock issued | 73,962 | |||||||||||
SandRidge common stock price | $ | 7.33 | ||||||||||
Fair value of common stock issued | 542,138 | |||||||||||
Cash consideration(2) | 680,000 | |||||||||||
Cash balance adjustment(3) | 13,091 | |||||||||||
Total purchase price | $ | 1,235,229 | ||||||||||
Fair Value of Liabilities Assumed | ||||||||||||
Current liabilities | $ | 129,363 | ||||||||||
Asset retirement obligations(4) | 315,922 | |||||||||||
Long-term deferred tax liability(5) | 100,288 | |||||||||||
Other long-term liabilities | 4,469 | |||||||||||
Amount attributable to liabilities assumed | 550,042 | |||||||||||
Total purchase price plus liabilities assumed | 1,785,271 | |||||||||||
Fair Value of Assets Acquired | ||||||||||||
Current assets | 142,027 | |||||||||||
Oil and natural gas properties(6) | 1,746,753 | |||||||||||
Other property, plant and equipment | 1,296 | |||||||||||
Other non-current assets | 17,891 | |||||||||||
Amount attributable to assets acquired | 1,907,967 | |||||||||||
Bargain purchase gain(7) | $ | (122,696 | ) | |||||||||
____________________ | ||||||||||||
-1 | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. | |||||||||||
-2 | Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022. | |||||||||||
-3 | In accordance with the acquisition agreement, the Company remitted to the seller a cash payment equal to Dynamic’s average daily cash balance for the 30-day period ending on the second day prior to closing. This resulted in an additional cash payment by the Company of $13.1 million at closing. | |||||||||||
-4 | The estimated fair value of the acquired asset retirement obligations was determined using the Company’s credit adjusted risk-free rate. | |||||||||||
-5 | The net deferred tax liability is primarily a result of the difference between the estimated fair value and the Company’s expected tax basis in the assets acquired and liabilities assumed. The net deferred tax liability also includes the effects of deferred tax assets associated with net operating losses and other tax attributes acquired as a result of the Dynamic Acquisition. | |||||||||||
-6 | The fair value of oil and natural gas properties acquired was estimated using a discounted cash flow model, with future cash flows estimated based upon projections of oil and natural gas reserve quantities and weighted average oil and natural gas prices of $113.62 per barrel of oil and $3.83 per Mcf of natural gas, after adjustment for transportation fees and regional price differentials. The commodity prices utilized were based upon commodity strip prices as of April 17, 2012 for the first four years and escalated for inflation at a rate of 2.0% annually beginning with the fifth year through the end of production. Future cash flows were discounted using an industry weighted average cost of capital rate. | |||||||||||
-7 | The bargain purchase gain resulted from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. | |||||||||||
Unaudited Pro Forma Results of Operations | The pro forma results of operations do not include any cost savings or other synergies that resulted from the Dynamic Acquisition or any estimated costs incurred to integrate Dynamic. | |||||||||||
Year Ended December 31, 2012(1) | ||||||||||||
(In thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Revenues | $ | 2,112,576 | ||||||||||
Net income | $ | 39,563 | ||||||||||
Loss applicable to SandRidge Energy, Inc. common stockholders | $ | (120,962 | ) | |||||||||
Loss per common share | ||||||||||||
Basic | $ | (0.25 | ) | |||||||||
Diluted | $ | (0.25 | ) | |||||||||
____________________ | ||||||||||||
-1 | Pro forma net income, loss applicable to SandRidge Energy, Inc. common stockholders and loss per common share exclude a $122.7 million bargain purchase gain, a $100.3 million partial valuation allowance release included in income tax benefit, $10.9 million of fees incurred to secure financing for the Dynamic Acquisition included in interest expense and $13.0 million of transaction costs incurred and included in general and administrative expense in the accompanying consolidated statement of operations for the year ended December 31, 2012. | |||||||||||
Gulf of Mexico Properties | ||||||||||||
Business Acquisitions And Dispositions [Line Items] | ||||||||||||
Consideration Paid, Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid to acquire the properties and the final valuation of assets acquired and liabilities assumed as of June 20, 2012 (in thousands): | |||||||||||
Consideration paid | ||||||||||||
Cash, net of purchase price adjustments | $ | 43,282 | ||||||||||
Fair value of identifiable assets acquired and liabilities assumed | ||||||||||||
Proved developed and undeveloped properties | $ | 98,725 | ||||||||||
Asset retirement obligations | (55,443 | ) | ||||||||||
Total identifiable net assets | $ | 43,282 | ||||||||||
Unaudited Pro Forma Results of Operations | The supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved had the transaction been in effect for the periods presented. | |||||||||||
Year Ended December 31, 2012 | ||||||||||||
(In thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Revenues | $ | 1,963,058 | ||||||||||
Net income | $ | 247,035 | ||||||||||
Income available to SandRidge Energy, Inc. common stockholders | $ | 86,510 | ||||||||||
Earnings per common share | ||||||||||||
Basic | $ | 0.19 | ||||||||||
Diluted | $ | 0.19 | ||||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Royalty Trusts Distributions | The following distributions will be paid on February 27, 2015 to holders of record as of the close of business on February 13, 2015 (in thousands): | ||||||||||||||
Royalty Trust | Total Distribution | Amount to be Distributed to Third-Party Unitholders | |||||||||||||
Mississippian Trust I | $ | 8,538 | $ | 6,242 | |||||||||||
Permian Trust | 27,681 | 25,830 | |||||||||||||
Mississippian Trust II | 13,985 | 11,644 | |||||||||||||
Total | $ | 50,204 | $ | 43,716 | |||||||||||
Open Oil and Natural Gas Commodity Derivative Contracts | At December 31, 2014, the Company’s open commodity derivative contracts consisted of the following: | ||||||||||||||
Oil Price Swaps | |||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||
Fixed Price | |||||||||||||||
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 | |||||||||||||||
January 2015 - December 2015 | 19,900 | $ | 4.51 | ||||||||||||
Natural Gas Basis Swaps | |||||||||||||||
Notional (MMcf) | Weighted Average | ||||||||||||||
Fixed Price | |||||||||||||||
January 2015 - December 2015 | 21,900 | $ | (0.27 | ) | |||||||||||
Oil Collars - Three-way | |||||||||||||||
Notional (MBbls) | Sold Put | Purchased Put | Sold Call | ||||||||||||
January 2015 - December 2015 | 4,576 | $ | 76.56 | $ | 90.28 | $ | 103.48 | ||||||||
January 2016 - December 2016 | 2,556 | $ | 83.14 | $ | 90 | $ | 100.85 | ||||||||
Natural Gas Collars | |||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||
January 2015 - December 2015 | 1,010 | $4.00 | — | $8.55 | |||||||||||
Royalty Trusts | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Schedule of Royalty Trust Units By Class | Common and subordinated units outstanding as of December 31, 2014 for each Royalty Trust are as follows: | ||||||||||||||
Mississippian Trust I (1) | Permian Trust | Mississippian Trust II | |||||||||||||
Total outstanding common units(1) | 28,000,000 | 39,375,000 | 37,293,750 | ||||||||||||
Total outstanding subordinated units(2) | — | 13,125,000 | 12,431,250 | ||||||||||||
____________________ | |||||||||||||||
-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 | All outstanding subordinated units are owned by SandRidge. | ||||||||||||||
Royalty Trusts Ownership Interest | The Company’s beneficial interest in the Royalty Trusts at December 31, 2014 and 2013 were as follows: | ||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Mississippian Trust I | 26.9 | % | 26.9 | % | |||||||||||
Permian Trust | 25 | % | 28.5 | % | |||||||||||
Mississippian Trust II | 37.6 | % | 37.6 | % | |||||||||||
Royalty Trusts Distributions | Quarterly distributions declared and paid by the Royalty Trusts during the years ended December 31, 2014, 2013 and 2012 as follows (in thousands): | ||||||||||||||
Year Ended December 31, | |||||||||||||||
2014(1) | 2013(2) | 2012(3) | |||||||||||||
Total distributions | $ | 234,326 | $ | 299,674 | $ | 274,979 | |||||||||
Distributions to third-party unitholders | $ | 193,807 | $ | 206,470 | $ | 181,727 | |||||||||
____________________ | |||||||||||||||
-1 | Subordination thresholds were not met for the Mississippian Trust I’s first or second quarter 2014 distributions, the Permian Trust’s second, third or fourth quarter 2014 distributions or for the Mississippian Trust II’s distributions for the year ended December 31, 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 second, third or fourth quarter 2013 distributions, the Permian Trust’s second quarter 2013 distribution or for the Mississippian Trust II’s fourth quarter 2013 distribution, resulting in reduced distributions to the Company on its subordinated units for this period. | ||||||||||||||
-3 | The Company received incentive distributions from the Mississippian Trust I during the first and second quarters of 2012. | ||||||||||||||
Open Oil and Natural Gas Commodity Derivative Contracts | 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 | |||||||||||||||
January 2015 — December 2015 | 904 | $ | 97.78 | ||||||||||||
Natural Gas Collars Underlying the Royalty Trust Derivatives Agreements | |||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||
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 | |||||||||||||||
January 2015 — March 2015 | 141 | $ | 100.9 | ||||||||||||
Assets and Liabilities Included in Consolidated Balance Sheets | The Royalty Trusts’ assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying consolidated balance sheets at December 31, 2014 and 2013 consisted of the following (in thousands): | ||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Cash and cash equivalents(1) | $ | 9,387 | $ | 7,912 | |||||||||||
Accounts receivable | 17,660 | 22,540 | |||||||||||||
Derivative contracts | 6,589 | 4,983 | |||||||||||||
Total current assets | 33,636 | 35,435 | |||||||||||||
Investment in royalty interests(2) | 1,325,942 | 1,325,942 | |||||||||||||
Less: accumulated depletion | (284,094 | ) | (186,095 | ) | |||||||||||
1,041,848 | 1,139,847 | ||||||||||||||
Derivative contracts | — | 1,476 | |||||||||||||
Total assets | $ | 1,075,484 | $ | 1,176,758 | |||||||||||
Accounts payable and accrued expenses | $ | 2,852 | $ | 3,393 | |||||||||||
Total liabilities | $ | 2,852 | $ | 3,393 | |||||||||||
____________________ | |||||||||||||||
-1 | Includes $3.0 million held by the trustee at December 31, 2014 and 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 consolidated balance sheets. | ||||||||||||||
Grey Ranch Plant, L.P | |||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||
Assets and Liabilities Included in Consolidated Balance Sheets | GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying consolidated balance sheet at December 31, 2013 consisted of the following (in thousands): | ||||||||||||||
31-Dec-13 | |||||||||||||||
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 [Line Items] | |||||||||||||||
Amounts Due To/From PGC | Amounts due from and due to PGC as of December 31, 2014 and 2013 included in the accompanying consolidated balance sheets are as follows (in thousands): | ||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Accounts receivable due from PGC | $ | 1,141 | $ | 741 | |||||||||||
Accounts payable due to PGC | $ | 4,163 | $ | 3,634 | |||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Significant Unobservable Inputs - Guarantees | The significant unobservable input used in the fair value measurement of the Company’s financial guarantee liability at December 31, 2014 is included in the table below (in thousands). | |||||||||||||||||||
Unobservable Input | ||||||||||||||||||||
Estimated future payments for plugging and abandonment | $ | 372,034 | ||||||||||||||||||
Significant Unobservable Inputs - Derivative Contracts | The significant unobservable inputs and the range and weighted average of these inputs used in the fair value measurements of the Company’s natural gas basis swaps at December 31, 2014 are included in the table below. All of the outstanding oil basis swaps contractually matured during December 31, 2013. | |||||||||||||||||||
Unobservable Input | Range | Weighted Average | Fair Value | |||||||||||||||||
(Price per Mcf) | (In thousands) | |||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Natural gas basis differential forward curve | $ | (0.03 | ) | – | $ | (0.38 | ) | $ | (0.29 | ) | $ | 350 | ||||||||
Assets and Liabilities Measured at Fair Value 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): | |||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Fair Value Measurements | Netting(1) | Assets/Liabilities at Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Commodity derivative contracts | $ | — | $ | 338,067 | $ | 350 | $ | — | $ | 338,417 | ||||||||||
Investments | 11,106 | — | — | — | 11,106 | |||||||||||||||
$ | 11,106 | $ | 338,067 | $ | 350 | $ | — | $ | 349,523 | |||||||||||
Liabilities | ||||||||||||||||||||
Guarantees | $ | — | $ | — | $ | 5,104 | $ | — | $ | 5,104 | ||||||||||
$ | — | $ | — | $ | 5,104 | $ | — | $ | 5,104 | |||||||||||
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 impact of netting assets and liabilities with 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 year ended December 31, 2014 (in thousands): | |||||||||||||||||||
Level 3 Fair Value Measurements - Guarantees | Year Ended December 31, 2014 | |||||||||||||||||||
Beginning balance | $ | — | ||||||||||||||||||
Issuances(1) | 9,446 | |||||||||||||||||||
Gain on guarantees | (4,342 | ) | ||||||||||||||||||
Ending balance | $ | 5,104 | ||||||||||||||||||
____________________ | ||||||||||||||||||||
-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. | |||||||||||||||||||
Reconciliation of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs | The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for commodity derivative contracts during the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Level 3 commodity derivative contracts at January 1 | $ | — | $ | (512 | ) | $ | (4,252 | ) | ||||||||||||
Loss on derivative contracts | — | (133 | ) | (5,460 | ) | |||||||||||||||
Purchases | 350 | — | 5,697 | |||||||||||||||||
Settlements paid | — | 645 | 3,503 | |||||||||||||||||
Level 3 commodity derivative contracts at December 31 | $ | 350 | $ | — | $ | (512 | ) | |||||||||||||
Estimated Fair Value and Carrying Value of Senior Notes | The estimated fair values and carrying values of the Company’s senior notes at December 31, 2014 and 2013 were as follows (in thousands): | |||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||||||
8.75% Senior Notes due 2020(1) | $ | 303,750 | $ | 445,402 | $ | 486,000 | $ | 444,736 | ||||||||||||
7.5% Senior Notes due 2021(2) | $ | 752,000 | $ | 1,178,486 | $ | 1,230,813 | $ | 1,178,922 | ||||||||||||
8.125% Senior Notes due 2022 | $ | 472,500 | $ | 750,000 | $ | 795,000 | $ | 750,000 | ||||||||||||
7.5% Senior Notes due 2023(3) | $ | 519,750 | $ | 821,548 | $ | 837,375 | $ | 821,249 | ||||||||||||
___________________ | ||||||||||||||||||||
-1 | Carrying value is net of $4,598 and $5,264 discount at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
-2 | Carrying value includes a premium, applicable to notes issued in August 2012, of $3,486 and $3,922 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
-3 | Carrying value is net of $3,452 and $3,751 discount at December 31, 2014 and 2013, respectively. |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Receivables [Abstract] | ||||||||||||
Summary of Accounts Receivable | A summary of accounts receivable is as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Oil, natural gas and NGL sales | $ | 139,848 | $ | 166,157 | ||||||||
Joint interest billing | 170,937 | 168,596 | ||||||||||
Oil and natural gas services | 21,436 | 17,904 | ||||||||||
Insurance receivable | — | 2,500 | ||||||||||
Other | 4,939 | 5,122 | ||||||||||
337,160 | 360,279 | |||||||||||
Less: allowance for doubtful accounts | (7,083 | ) | (11,061 | ) | ||||||||
Total accounts receivable, net | $ | 330,077 | $ | 349,218 | ||||||||
Balance and Activity in Allowance for Doubtful Accounts | The following table presents the balance and activity in the allowance for doubtful accounts for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Allowance for doubtful accounts at January 1 | $ | 11,061 | $ | 5,635 | $ | 3,906 | ||||||
Additions charged to costs and expenses(1) | 818 | 5,497 | 1,735 | |||||||||
Deductions(2) | (4,796 | ) | (71 | ) | (6 | ) | ||||||
Allowance for doubtful accounts at December 31 | $ | 7,083 | $ | 11,061 | $ | 5,635 | ||||||
____________________ | ||||||||||||
-1 | Includes $2.7 million of allowance for receivables deemed uncollectible at December 31, 2013 primarily due to bankruptcy status of customers. | |||||||||||
-2 | Deductions represent write-off of receivables and collections of amounts for which an allowance had previously been established. Year ended December 31, 2014 represents write-off of allowance related to the sale of the Gulf Properties. |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||
Property, Plant and Equipment | Property, plant and equipment consists of the following (in thousands): | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Oil and natural gas properties | ||||||||||||||||||||
Proved(1) | $ | 11,707,147 | $ | 10,972,816 | ||||||||||||||||
Unproved | 290,596 | 531,606 | ||||||||||||||||||
Total oil and natural gas properties | 11,997,743 | 11,504,422 | ||||||||||||||||||
Less accumulated depreciation, depletion and impairment | (6,359,149 | ) | (5,762,969 | ) | ||||||||||||||||
Net oil and natural gas properties capitalized costs | 5,638,594 | 5,741,453 | ||||||||||||||||||
Land | 16,300 | 18,423 | ||||||||||||||||||
Non-oil and natural gas equipment(2) | 602,392 | 600,603 | ||||||||||||||||||
Buildings and structures(3) | 263,191 | 233,405 | ||||||||||||||||||
Total | 881,883 | 852,431 | ||||||||||||||||||
Less accumulated depreciation and amortization | (305,420 | ) | (286,209 | ) | ||||||||||||||||
Other property, plant and equipment, net | 576,463 | 566,222 | ||||||||||||||||||
Total property, plant and equipment, net | $ | 6,215,057 | $ | 6,307,675 | ||||||||||||||||
____________________ | ||||||||||||||||||||
-1 | Includes cumulative capitalized interest of approximately $38.1 million and $23.4 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
-2 | Includes cumulative capitalized interest of approximately $4.3 million at both December 31, 2014 and 2013. | |||||||||||||||||||
-3 | Includes cumulative capitalized interest of approximately $17.1 million and $12.0 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
Capitalized Costs of Unproved Properties Excluded from Amortization | The following table summarizes the costs, by year incurred, related to unproved properties and pipe inventory, which were excluded from oil and natural gas properties subject to amortization at December 31, 2014 (in thousands): | |||||||||||||||||||
Year Cost Incurred | ||||||||||||||||||||
Total | 2014 | 2013 | 2012 | 2011 and Prior | ||||||||||||||||
Property acquisition | $ | 247,485 | $ | 64,776 | $ | 21,723 | $ | 98,530 | $ | 62,456 | ||||||||||
Exploration(1) | 96,752 | 48,614 | 36,938 | 4,302 | 6,898 | |||||||||||||||
Total costs incurred | $ | 344,237 | $ | 113,390 | $ | 58,661 | $ | 102,832 | $ | 69,354 | ||||||||||
____________________ | ||||||||||||||||||||
-1 | Includes $53.6 million of pipe inventory costs incurred ($21.3 million in 2014, $30.7 million in 2013 and $1.6 million in 2012 and prior years). |
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Other Assets | Other assets consist of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Debt issuance costs, net of amortization(1) | $ | 56,445 | $ | 61,923 | ||||
Deferred tax asset | 95,843 | — | ||||||
Restricted deposits(2) | — | 27,955 | ||||||
Notes receivable on asset retirement obligations(2) | — | 11,640 | ||||||
Investments | 11,106 | 13,708 | ||||||
Other | 1,853 | 5,945 | ||||||
Total other assets | $ | 165,247 | $ | 121,171 | ||||
____________________ | ||||||||
-1 | Unamortized debt issuance costs associated with the 9.875% Senior Notes due 2016 and 8.0% Senior Notes due 2018 were written off in March 2013 when the Company redeemed these notes. See Note 12 for discussion of the senior note redemptions. | |||||||
-2 | Assets at December 31, 2013 were included in the sale of the Gulf Properties in February 2014, as discussed in Note 3. |
Accounts_Payable_and_Accrued_E1
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accounts payable and other accrued expenses | $ | 392,500 | $ | 341,008 | ||||
Accrued interest | 79,704 | 80,740 | ||||||
Production payable | 120,573 | 127,647 | ||||||
Drilling advances | 33,195 | 184,203 | ||||||
Payroll and benefits | 44,496 | 59,785 | ||||||
Convertible perpetual preferred stock dividends | 11,072 | 16,572 | ||||||
Related party | 1,852 | 2,533 | ||||||
Total accounts payable and accrued expenses | $ | 683,392 | $ | 812,488 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Long-term debt consists of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Senior credit facility | $ | — | $ | — | ||||
Senior notes | ||||||||
8.75% Senior Notes due 2020, net of $4,598 and $5,264 discount, respectively | 445,402 | 444,736 | ||||||
7.5% Senior Notes due 2021, including a premium of $3,486 and $3,922, respectively | 1,178,486 | 1,178,922 | ||||||
8.125% Senior Notes due 2022 | 750,000 | 750,000 | ||||||
7.5% Senior Notes due 2023, net of $3,452 and $3,751 discount, respectively | 821,548 | 821,249 | ||||||
Total debt | 3,195,436 | 3,194,907 | ||||||
Less: current maturities of long-term debt | — | — | ||||||
Long-term debt | $ | 3,195,436 | $ | 3,194,907 | ||||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Fair Value of Derivative Contracts | The following table presents the fair value of the Company’s derivative contracts as of December 31, 2014 and 2013 on a gross basis without regard to same-counterparty netting (in thousands): | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
Type of Contract | Balance Sheet Classification | 2014 | 2013 | ||||||||||||||||||
Derivative assets | |||||||||||||||||||||
Oil price swaps | Derivative contracts—current | $ | 204,072 | $ | 15,887 | ||||||||||||||||
Natural gas price swaps | Derivative contracts—current | 29,648 | 1,598 | ||||||||||||||||||
Natural gas basis swaps | Derivative contracts—current | 350 | — | ||||||||||||||||||
Oil collars—three way | Derivative contracts—current | 56,289 | 706 | ||||||||||||||||||
Natural gas collars | Derivative contracts—current | 1,055 | 177 | ||||||||||||||||||
Oil price swaps | Derivative contracts—noncurrent | 36,288 | 19,376 | ||||||||||||||||||
Oil collars—three way | Derivative contracts—noncurrent | 10,715 | 12,189 | ||||||||||||||||||
Natural gas collars | Derivative contracts—noncurrent | — | 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 | $ | 338,417 | $ | (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 derivative liability positions, the applicable portion of shared collateral under the senior credit facility (for SandRidge's derivative contracts) and under liens granted on the royalty interests (for the Permian Trust and the Mississippian Trust II) (in thousands): | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Amounts Net of Offset | Financial Collateral | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||||
Derivative contracts - current | $ | 291,414 | $ | — | $ | 291,414 | $ | — | $ | 291,414 | |||||||||||
Derivative contracts - noncurrent | 47,003 | — | 47,003 | — | 47,003 | ||||||||||||||||
Total | $ | 338,417 | $ | — | $ | 338,417 | $ | — | $ | 338,417 | |||||||||||
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 December 31, 2014, the Company’s open commodity derivative contracts consisted of the following: | ||||||||||||||||||||
Oil Price Swaps | |||||||||||||||||||||
Notional (MBbls) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
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 | |||||||||||||||||||||
January 2015 - December 2015 | 19,900 | $ | 4.51 | ||||||||||||||||||
Natural Gas Basis Swaps | |||||||||||||||||||||
Notional (MMcf) | Weighted Average | ||||||||||||||||||||
Fixed Price | |||||||||||||||||||||
January 2015 - December 2015 | 21,900 | $ | (0.27 | ) | |||||||||||||||||
Oil Collars - Three-way | |||||||||||||||||||||
Notional (MBbls) | Sold Put | Purchased Put | Sold Call | ||||||||||||||||||
January 2015 - December 2015 | 4,576 | $ | 76.56 | $ | 90.28 | $ | 103.48 | ||||||||||||||
January 2016 - December 2016 | 2,556 | $ | 83.14 | $ | 90 | $ | 100.85 | ||||||||||||||
Natural Gas Collars | |||||||||||||||||||||
Notional (MMcf) | Collar Range | ||||||||||||||||||||
January 2015 - December 2015 | 1,010 | $4.00 | — | $8.55 | |||||||||||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||||||
Reconciliation of Beginning and Ending Aggregate Carrying Amounts of Asset Retirement Obligations | The following table presents the balance and activity of the asset retirement obligations for the years ended December 31, 2014, 2013 and 2012 (in thousands). | |||||||||||
2014(1) | 2013 | 2012(2) | ||||||||||
Asset retirement obligations at January 1 | $ | 424,117 | $ | 498,410 | $ | 128,116 | ||||||
Liability incurred upon acquiring and drilling wells | 4,968 | 5,078 | 7,479 | |||||||||
Liability assumed in acquisition | — | — | 371,365 | |||||||||
Revisions in estimated cash flows | (5,848 | ) | (3,077 | ) | 34,654 | |||||||
Liability settled or disposed in current period | (377,927 | ) | (113,071 | ) | (72,200 | ) | ||||||
Accretion | 9,092 | 36,777 | 28,996 | |||||||||
Asset retirement obligations at December 31 | 54,402 | 424,117 | 498,410 | |||||||||
Less: current portion | — | 87,063 | 118,504 | |||||||||
Asset retirement obligations, net of current | $ | 54,402 | $ | 337,054 | $ | 379,906 | ||||||
____________________ | ||||||||||||
-1 | Liability settled or disposed in the current period includes $366.0 million associated with the Gulf Properties sold in February 2014, as discussed in Note 3. | |||||||||||
-2 | Liability assumed in acquisition represents asset retirement obligations assumed in the acquisition of oil and natural gas properties in the Gulf of Mexico during the second quarter of 2012. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Future Minimum Rental Payments for Operating Leases | Future minimum payments under noncancelable operating leases (with initial lease terms exceeding one year) as of December 31, 2014 were as follows (in thousands): | |||
Years ending December 31 | ||||
2015 | $ | 1,087 | ||
2016 | 982 | |||
2017 | 759 | |||
2018 | 572 | |||
2019 | — | |||
Thereafter | — | |||
$ | 3,400 | |||
Transportation and Throughput Agreements | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Transportation, Throughput and Gathering Obligations | The amounts of the required payments related to the transportation and throughput agreements as of December 31, 2014 were as follows (in thousands): | |||
Years ending December 31 | ||||
2015 | $ | 12,467 | ||
2016 | 12,498 | |||
2017 | 12,467 | |||
2018 | 12,899 | |||
2019 | 8,156 | |||
Thereafter | 12,672 | |||
$ | 71,159 | |||
Gas Gathering Agreement | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Transportation, Throughput and Gathering Obligations | The table below presents the base fee contractual obligations under this agreement as of December 31, 2014 (in thousands). | |||
Years ending December 31 | ||||
2015 | $ | 42,334 | ||
2016 | 42,272 | |||
2017 | 41,991 | |||
2018 | 41,825 | |||
2019 | 41,703 | |||
Thereafter | 82,594 | |||
$ | 292,719 | |||
Equity_Tables
Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Stockholders Equity Note [Line Items] | ||||||||||||
Preferred Stock Terms | The following table summarizes information about each series of the Company’s convertible perpetual preferred stock outstanding at December 31, 2014: | |||||||||||
Convertible Perpetual Preferred Stock | ||||||||||||
8.50% | 7.00% | |||||||||||
Liquidation preference per share | $ | 100 | $ | 100 | ||||||||
Annual dividend per share | $ | 8.5 | $ | 7 | ||||||||
Conversion rate per share to common stock | 12.4805 | 12.8791 | ||||||||||
Conversion date to common stock at Company's option(1) | February 20, 2014 | November 20, 2015 | ||||||||||
____________________ | ||||||||||||
-1 | Conversion is dependent on certain factors, including the Company’s stock trading above specified prices for a set period. | |||||||||||
Preferred Stock Dividends | Paid and unpaid dividends included in the calculation of income available (loss applicable) to the Company’s common stockholders and the Company’s basic earnings (loss) per share calculation for the years ended December 31, 2014, 2013 and 2012 as presented in the accompanying consolidated statements of operations, are included in the tables below (in thousands): | |||||||||||
Dividends Paid | Dividends Unpaid | Total | ||||||||||
Year Ended December 31, 2014 | ||||||||||||
8.5% Convertible perpetual preferred stock | $ | 14,078 | $ | 8,447 | $ | 22,525 | ||||||
6.0% Convertible perpetual preferred stock | 6,500 | — | 6,500 | |||||||||
7.0% Convertible perpetual preferred stock | 18,375 | 2,625 | 21,000 | |||||||||
Total | $ | 38,953 | $ | 11,072 | $ | 50,025 | ||||||
Year Ended December 31, 2013 | ||||||||||||
8.5% Convertible perpetual preferred stock | $ | 14,078 | $ | 8,447 | $ | 22,525 | ||||||
6.0% Convertible perpetual preferred stock | 6,500 | 5,500 | 12,000 | |||||||||
7.0% Convertible perpetual preferred stock | 18,375 | 2,625 | 21,000 | |||||||||
Total | $ | 38,953 | $ | 16,572 | $ | 55,525 | ||||||
Year Ended December 31, 2012 | ||||||||||||
8.5% Convertible perpetual preferred stock | $ | 14,078 | $ | 8,447 | $ | 22,525 | ||||||
6.0% Convertible perpetual preferred stock | 6,500 | 5,500 | 12,000 | |||||||||
7.0% Convertible perpetual preferred stock | 18,375 | 2,625 | 21,000 | |||||||||
Total | $ | 38,953 | $ | 16,572 | $ | 55,525 | ||||||
Treasury Stock Activity | The following table shows the number of shares withheld for taxes and the associated value of those shares for the years ended December 31, 2014, 2013 and 2012. These shares were accounted for as treasury stock when withheld, and then immediately retired. | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Number of shares withheld for taxes | 1,034 | 5,679 | 1,547 | |||||||||
Value of shares withheld for taxes | $ | 6,373 | $ | 30,126 | $ | 11,312 | ||||||
Restricted Stock Activity | Restricted stock activity for the years ended December 31, 2012, 2013 and 2014 was as follows (shares in thousands): | |||||||||||
Number of | Weighted- | |||||||||||
Shares | Average Grant | |||||||||||
Date Fair Value | ||||||||||||
Unvested restricted shares outstanding at December 31, 2011 | 13,386 | $ | 9.34 | |||||||||
Granted | 7,604 | $ | 7.46 | |||||||||
Vested | (4,394 | ) | $ | 10.73 | ||||||||
Forfeited / Canceled | (1,268 | ) | $ | 8.54 | ||||||||
Unvested restricted shares outstanding at December 31, 2012 | 15,328 | $ | 8.07 | |||||||||
Granted | 7,462 | $ | 6.32 | |||||||||
Vested | (13,395 | ) | $ | 7.85 | ||||||||
Forfeited / Canceled | (1,752 | ) | $ | 7.33 | ||||||||
Unvested restricted shares outstanding at December 31, 2013 | 7,643 | $ | 6.92 | |||||||||
Granted | 6,367 | $ | 6.17 | |||||||||
Vested | (3,432 | ) | $ | 7.04 | ||||||||
Forfeited / Canceled | (2,022 | ) | $ | 6.6 | ||||||||
Unvested restricted shares outstanding at December 31, 2014 | 8,556 | $ | 6.39 | |||||||||
Preferred Stock | ||||||||||||
Stockholders Equity Note [Line Items] | ||||||||||||
Schedule of Stock by Class | The following table presents information regarding the Company’s preferred stock (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Shares authorized | 50,000 | 50,000 | ||||||||||
Shares outstanding at end of period | ||||||||||||
8.5% Convertible perpetual preferred stock | 2,650 | 2,650 | ||||||||||
6.0% Convertible perpetual preferred stock | — | 2,000 | ||||||||||
7.0% Convertible perpetual preferred stock | 3,000 | 3,000 | ||||||||||
Common Stock | ||||||||||||
Stockholders Equity Note [Line Items] | ||||||||||||
Schedule of Stock by Class | Common Stock | |||||||||||
The following table presents information regarding the Company’s common stock (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Shares authorized | 800,000 | 800,000 | ||||||||||
Shares outstanding at end of period | 484,819 | 490,290 | ||||||||||
Shares held in treasury | 1,113 | 1,319 | ||||||||||
Incentive_Retirement_and_Defer1
Incentive, Retirement and Deferred Compensation Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Compensation Related Costs [Abstract] | ||||||||||||||
Performance Unit 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 December 31, 2014 and 2013. | |||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Expected price volatility range | 26.6 | % | - | 86.6 | % | 27 | % | - | 44.8 | % | ||||
Weighted-average risk-free interest rate | 0.5 | % | 0.4 | % | ||||||||||
Weighted-average fair value per unit | $ | 13.85 | $ | 97.06 | ||||||||||
Performance unit activity for the years ended December 31, 2014 and 2013 was as follows: | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Outstanding at January 1 | 31,142 | — | ||||||||||||
Granted | 47,015 | 31,142 | ||||||||||||
Forfeited /canceled | (12,060 | ) | — | |||||||||||
Outstanding at December 31 | 66,097 | 31,142 | ||||||||||||
Performance period ending December 31, 2015 | ||||||||||||||
Vested | 9,208 | 12,178 | ||||||||||||
Unvested | 18,874 | 18,964 | ||||||||||||
Performance period ending December 31, 2016 | ||||||||||||||
Vested | 12,671 | — | ||||||||||||
Unvested | 25,344 | — | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
(Benefit) Provision for Income Taxes | The Company’s income tax (benefit) provision consisted of the following components for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current | ||||||||||||
Federal | $ | (1,160 | ) | $ | 3,842 | $ | (72 | ) | ||||
State | (1,133 | ) | 1,842 | (2 | ) | |||||||
(2,293 | ) | 5,684 | (74 | ) | ||||||||
Deferred | ||||||||||||
Federal | — | — | (97,410 | ) | ||||||||
State | — | — | (2,878 | ) | ||||||||
— | — | (100,288 | ) | |||||||||
Total (benefit) provision | (2,293 | ) | 5,684 | (100,362 | ) | |||||||
Less: income tax provision attributable to noncontrolling interest | 283 | 308 | 304 | |||||||||
Total (benefit) provision attributable to SandRidge Energy, Inc. | $ | (2,576 | ) | $ | 5,376 | $ | (100,666 | ) | ||||
Reconciliation of Provision (Benefit) for Income Taxes at Statutory Federal Tax Rate | A reconciliation of the (benefit) provision for income taxes at the statutory federal tax rate to the Company’s actual income tax benefit is as follows for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Computed at federal statutory rate | $ | 122,362 | $ | (178,078 | ) | $ | 51,173 | |||||
State taxes, net of federal benefit | 4,145 | (886 | ) | 8,913 | ||||||||
Non-deductible expenses | 1,895 | 2,589 | 7,247 | |||||||||
Stock-based compensation | 1,467 | 7,611 | 7,172 | |||||||||
Net effects of consolidating the non-controlling interests’ tax provisions | (34,614 | ) | (13,901 | ) | (37,047 | ) | ||||||
Bargain purchase gain | — | — | (42,944 | ) | ||||||||
Impairment of non-deductible goodwill | — | — | 71,885 | |||||||||
Change in valuation allowance | (96,769 | ) | 188,599 | (66,429 | ) | |||||||
Valuation allowance release | — | — | (100,288 | ) | ||||||||
Other | (1,062 | ) | (558 | ) | (348 | ) | ||||||
Total (benefit) provision attributable to SandRidge Energy, Inc. | $ | (2,576 | ) | $ | 5,376 | $ | (100,666 | ) | ||||
Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax liabilities | ||||||||||||
Investments(1) | $ | 272,902 | $ | 301,447 | ||||||||
Property, plant and equipment | 364,576 | 180,140 | ||||||||||
Derivative contracts | 113,735 | — | ||||||||||
Total deferred tax liabilities | 751,213 | 481,587 | ||||||||||
Deferred tax assets | ||||||||||||
Derivative contracts | — | 3,692 | ||||||||||
Allowance for doubtful accounts | 19,086 | 20,358 | ||||||||||
Net operating loss carryforwards | 1,265,458 | 973,675 | ||||||||||
Compensation and benefits | 19,867 | 24,895 | ||||||||||
Alternative minimum tax credits and other carryforwards | 43,840 | 46,624 | ||||||||||
Asset retirement obligations | 21,946 | 147,626 | ||||||||||
CO2 under-delivery shortfall penalty | 27,674 | 15,012 | ||||||||||
Other | 2,934 | 3,156 | ||||||||||
Total deferred tax assets | 1,400,805 | 1,235,038 | ||||||||||
Valuation allowance | (649,592 | ) | (753,451 | ) | ||||||||
Net deferred tax liability | $ | — | $ | — | ||||||||
____________________ | ||||||||||||
-1 | Includes the Company’s deferred tax liability resulting from its investment in the Royalty Trusts. See Note 4 for further discussion of the Royalty Trusts. | |||||||||||
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Unrecognized tax benefit at January 1 | $ | 1,382 | $ | 1,330 | ||||||||
Changes to unrecognized tax benefits related to the current year | — | 262 | ||||||||||
Changes to unrecognized tax benefits related to a prior year | (17 | ) | (210 | ) | ||||||||
Decreases to unrecognized tax benefits for settlements with tax authorities | (1,288 | ) | — | |||||||||
Unrecognized tax benefit at December 31 | $ | 77 | $ | 1,382 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings Per Share | The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings per share, for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||
Income (Loss) | Weighted Average Shares | Earnings (Loss) Per Share | |||||||||
(In thousands, except per share amounts) | |||||||||||
Year Ended December 31, 2014 | |||||||||||
Basic earnings per share | $ | 203,260 | 479,644 | $ | 0.42 | ||||||
Effect of dilutive securities | |||||||||||
Restricted stock | — | 2,181 | |||||||||
Convertible preferred stock(1) | 6,500 | 17,918 | |||||||||
Diluted earnings per share | $ | 209,760 | 499,743 | $ | 0.42 | ||||||
Year Ended December 31, 2013 | |||||||||||
Basic loss per share | $ | (609,414 | ) | 481,148 | $ | (1.27 | ) | ||||
Effect of dilutive securities | |||||||||||
Restricted stock(2) | — | — | |||||||||
Convertible preferred stock(3) | — | — | |||||||||
Diluted loss per share | $ | (609,414 | ) | 481,148 | $ | (1.27 | ) | ||||
Year Ended December 31, 2012 | |||||||||||
Basic earnings per share | $ | 86,046 | 453,595 | $ | 0.19 | ||||||
Effect of dilutive securities | |||||||||||
Restricted stock | — | 2,420 | |||||||||
Convertible preferred stock(3) | — | — | |||||||||
Diluted earnings per share | $ | 86,046 | 456,015 | $ | 0.19 | ||||||
____________________ | |||||||||||
-1 | Potential common shares related to the Company’s outstanding 8.5% and 7.0% convertible perpetual preferred stock covering 71.7 million shares for the year ended December 31, 2014 were excluded from the computation of earnings per share because their effect would have been antidilutive under the if-converted method. | ||||||||||
-2 | Restricted stock awards covering 0.5 million shares were excluded from the computation of loss per share because their effect would have been antidilutive. | ||||||||||
-3 | 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 years ended December 31, 2013 and 2012, were excluded from the computation of earnings (loss) per share because their effect would have been antidilutive under the if-converted method. | ||||||||||
Subsequent_Events_Tables
Subsequent Events (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Subsequent Events [Abstract] | |||||||||
Royalty Trust Distributions | The following distributions will be paid on February 27, 2015 to holders of record as of the close of business on February 13, 2015 (in thousands): | ||||||||
Royalty Trust | Total Distribution | Amount to be Distributed to Third-Party Unitholders | |||||||
Mississippian Trust I | $ | 8,538 | $ | 6,242 | |||||
Permian Trust | 27,681 | 25,830 | |||||||
Mississippian Trust II | 13,985 | 11,644 | |||||||
Total | $ | 50,204 | $ | 43,716 | |||||
Business_Segment_Information_T
Business Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 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 | Drilling and Oil | Midstream | All Other(4) | Consolidated | ||||||||||||||||
Production(1) | Field Services(2) | Services(3) | Total | |||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Revenues | $ | 1,423,073 | $ | 192,944 | $ | 142,987 | $ | 4,376 | $ | 1,763,380 | ||||||||||
Inter-segment revenue | (173 | ) | (116,856 | ) | (87,593 | ) | — | (204,622 | ) | |||||||||||
Total revenues | $ | 1,422,900 | $ | 76,088 | $ | 55,394 | $ | 4,376 | $ | 1,558,758 | ||||||||||
Income (loss) from operations | $ | 713,716 | $ | (37,564 | ) | $ | (9,094 | ) | $ | (76,834 | ) | $ | 590,224 | |||||||
Interest income (expense), net | 100 | — | — | (244,209 | ) | (244,109 | ) | |||||||||||||
Other (expense) income, net | (423 | ) | (541 | ) | 9 | 4,445 | 3,490 | |||||||||||||
Income (loss) before income taxes | $ | 713,393 | $ | (38,105 | ) | $ | (9,085 | ) | $ | (316,598 | ) | $ | 349,605 | |||||||
Capital expenditures(5) | $ | 1,508,100 | $ | 18,385 | $ | 44,606 | $ | 37,798 | $ | 1,608,889 | ||||||||||
Depreciation, depletion, amortization and accretion | $ | 443,573 | $ | 29,105 | $ | 10,085 | $ | 20,260 | $ | 503,023 | ||||||||||
At December 31, 2014 | ||||||||||||||||||||
Total assets | $ | 6,273,802 | $ | 115,083 | $ | 219,691 | $ | 650,649 | $ | 7,259,225 | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Revenues | $ | 1,834,480 | $ | 187,456 | $ | 179,989 | $ | 3,127 | $ | 2,205,052 | ||||||||||
Inter-segment revenue | (320 | ) | (120,815 | ) | (100,529 | ) | — | (221,664 | ) | |||||||||||
Total revenues | $ | 1,834,160 | $ | 66,641 | $ | 79,460 | $ | 3,127 | $ | 1,983,388 | ||||||||||
Income (loss) from operations | $ | 62,509 | $ | (40,155 | ) | $ | (21,567 | ) | $ | (169,788 | ) | $ | (169,001 | ) | ||||||
Interest income (expense), net | 1,168 | — | (209 | ) | (271,193 | ) | (270,234 | ) | ||||||||||||
Loss on extinguishment of debt | — | — | — | (82,005 | ) | (82,005 | ) | |||||||||||||
Other income (expense), net | 5,487 | — | (3,222 | ) | 10,180 | 12,445 | ||||||||||||||
Income (loss) before income taxes | $ | 69,164 | $ | (40,155 | ) | $ | (24,998 | ) | $ | (512,806 | ) | $ | (508,795 | ) | ||||||
Capital expenditures(5) | $ | 1,319,012 | $ | 7,125 | $ | 55,706 | $ | 42,040 | $ | 1,423,883 | ||||||||||
Depreciation, depletion, amortization and accretion | $ | 605,242 | $ | 33,291 | $ | 7,972 | $ | 20,140 | $ | 666,645 | ||||||||||
At December 31, 2013 | ||||||||||||||||||||
Total assets | $ | 6,157,225 | $ | 158,737 | $ | 188,165 | $ | 1,180,668 | $ | 7,684,795 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Revenues | $ | 1,775,221 | $ | 379,345 | $ | 116,659 | $ | 4,356 | $ | 2,275,581 | ||||||||||
Inter-segment revenue | (403 | ) | (262,712 | ) | (77,824 | ) | — | (340,939 | ) | |||||||||||
Total revenues | $ | 1,774,818 | $ | 116,633 | $ | 38,835 | $ | 4,356 | $ | 1,934,642 | ||||||||||
Income (loss) from operations | $ | 518,144 | $ | 11,911 | $ | (73,027 | ) | $ | (131,832 | ) | $ | 325,196 | ||||||||
Interest income (expense), net | 1,286 | — | (559 | ) | (304,076 | ) | (303,349 | ) | ||||||||||||
Bargain purchase gain | 122,696 | — | — | — | 122,696 | |||||||||||||||
Loss on extinguishment of debt | — | — | — | (3,075 | ) | (3,075 | ) | |||||||||||||
Other income, net | 1,868 | — | — | 2,873 | 4,741 | |||||||||||||||
Income (loss) before income taxes | $ | 643,994 | $ | 11,911 | $ | (73,586 | ) | $ | (436,110 | ) | $ | 146,209 | ||||||||
Capital expenditures(5) | $ | 2,001,490 | $ | 27,527 | $ | 80,413 | $ | 114,552 | $ | 2,223,982 | ||||||||||
Depreciation, depletion, amortization and accretion | $ | 598,101 | $ | 34,677 | $ | 7,188 | $ | 17,864 | $ | 657,830 | ||||||||||
____________________ | ||||||||||||||||||||
-1 | Income (loss) from operations includes a full cost ceiling impairment of $164.8 million for the year ended December 31, 2014, a loss on the sale of the Permian Properties of $398.9 million for the year ended December 31, 2013, an impairment of the Company’s goodwill of $235.4 million for the year ended December 31, 2012 and the Company’s (gain) loss on derivative contracts, including net cash payments upon settlement, for the years ended December 31, 2014, 2013 and 2012. See Note 13 for discussion of derivative contracts. | |||||||||||||||||||
-2 | For the years ended December 31, 2014 and 2013, income (loss) from operations includes impairments of $27.4 million and $11.1 million, respectively, on certain drilling assets. | |||||||||||||||||||
-3 | For the years ended December 31, 2014, 2013 and 2012, loss from operations includes impairments of the Company’s gas treating plants in west Texas and other midstream assets of $0.6 million, $3.9 million and $59.7 million, respectively. | |||||||||||||||||||
-4 | For the year ended December 31, 2013, loss from operations includes a $2.9 million impairment of a corporate asset and an $8.3 million impairment of the Company’s CO2 compression facilities. For the year ended December 31, 2012, loss from operations includes a $19.6 million impairment of the Company’s CO2 compression facilities. | |||||||||||||||||||
-5 | On an accrual basis and exclusive of acquisitions. | |||||||||||||||||||
Major Customers | Major Customers. For the years ended December 31, 2014, 2013 and 2012, the Company had sales exceeding 10% of total revenues to the following oil and natural gas purchasers (in thousands): | |||||||||||||||||||
2014 | ||||||||||||||||||||
Sales | % of Revenue | |||||||||||||||||||
Plains Marketing, L.P. | $ | 597,117 | 38.3 | % | ||||||||||||||||
Atlas Pipeline Mid-Continent West OK LLC | $ | 333,027 | 21.4 | % | ||||||||||||||||
2013 | ||||||||||||||||||||
Sales | % of Revenue | |||||||||||||||||||
Plains Marketing, L.P. | $ | 491,258 | 24.8 | % | ||||||||||||||||
Shell Trading (US) Company | $ | 347,422 | 17.5 | % | ||||||||||||||||
Atlas Pipeline Mid-Continent West OK LLC | $ | 211,838 | 10.7 | % | ||||||||||||||||
2012 | ||||||||||||||||||||
Sales | % of Revenue | |||||||||||||||||||
Plains Marketing, L.P. | $ | 426,339 | 15.6 | % | ||||||||||||||||
Enterprise Crude Oil, LLC | $ | 394,162 | 14.4 | % | ||||||||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Condensed Consolidating Financial Statements Disclosure [Abstract] | ||||||||||||||||||||
Condensed Consolidating Balance Sheets of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors | Condensed Consolidating Balance Sheets | |||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 170,468 | $ | 1,398 | $ | 9,387 | $ | — | $ | 181,253 | ||||||||||
Accounts receivable, net | 7 | 299,764 | 30,313 | (7 | ) | 330,077 | ||||||||||||||
Intercompany accounts receivable | 751,376 | 1,339,152 | 41,679 | (2,132,207 | ) | — | ||||||||||||||
Derivative contracts | — | 284,825 | 45,043 | (38,454 | ) | 291,414 | ||||||||||||||
Prepaid expenses | — | 7,971 | 10 | — | 7,981 | |||||||||||||||
Other current assets | — | 21,193 | — | — | 21,193 | |||||||||||||||
Total current assets | 921,851 | 1,954,303 | 126,432 | (2,170,668 | ) | 831,918 | ||||||||||||||
Property, plant and equipment, net | — | 4,987,281 | 1,227,776 | — | 6,215,057 | |||||||||||||||
Investment in subsidiaries | 6,606,198 | 176,365 | — | (6,782,563 | ) | — | ||||||||||||||
Derivative contracts | — | 47,003 | — | — | 47,003 | |||||||||||||||
Other assets | 152,286 | 18,197 | 666 | (5,902 | ) | 165,247 | ||||||||||||||
Total assets | $ | 7,680,335 | $ | 7,183,149 | $ | 1,354,874 | $ | (8,959,133 | ) | $ | 7,259,225 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 201,368 | $ | 477,399 | $ | 4,632 | $ | (7 | ) | $ | 683,392 | |||||||||
Intercompany accounts payable | 1,315,667 | 780,645 | 35,895 | (2,132,207 | ) | — | ||||||||||||||
Derivative contracts | — | 38,454 | — | (38,454 | ) | — | ||||||||||||||
Deferred tax liability | 95,843 | — | — | — | 95,843 | |||||||||||||||
Other current liabilities | — | 5,216 | — | — | 5,216 | |||||||||||||||
Total current liabilities | 1,612,878 | 1,301,714 | 40,527 | (2,170,668 | ) | 784,451 | ||||||||||||||
Investment in subsidiaries | 928,217 | 134,013 | — | (1,062,230 | ) | — | ||||||||||||||
Long-term debt | 3,201,338 | — | — | (5,902 | ) | 3,195,436 | ||||||||||||||
Asset retirement obligations | — | 54,402 | — | — | 54,402 | |||||||||||||||
Other long-term obligations | 77 | 15,039 | — | — | 15,116 | |||||||||||||||
Total liabilities | 5,742,510 | 1,505,168 | 40,527 | (3,238,800 | ) | 4,049,405 | ||||||||||||||
Equity | ||||||||||||||||||||
SandRidge Energy, Inc. stockholders’ equity | 1,937,825 | 5,677,981 | 1,314,347 | (6,992,328 | ) | 1,937,825 | ||||||||||||||
Noncontrolling interest | — | — | — | 1,271,995 | 1,271,995 | |||||||||||||||
Total equity | 1,937,825 | 5,677,981 | 1,314,347 | (5,720,333 | ) | 3,209,820 | ||||||||||||||
Total liabilities and equity | $ | 7,680,335 | $ | 7,183,149 | $ | 1,354,874 | $ | (8,959,133 | ) | $ | 7,259,225 | |||||||||
December 31, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | 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 | |||||||||
Condensed Consolidating Statements of Operations of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors | Condensed Consolidating Statements of Operations | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Total revenues | $ | — | $ | 1,341,531 | $ | 217,367 | $ | (140 | ) | $ | 1,558,758 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 467,175 | 16,854 | (140 | ) | 483,889 | ||||||||||||||
General and administrative | 331 | 118,249 | 4,285 | — | 122,865 | |||||||||||||||
Depreciation, depletion, amortization and accretion | — | 446,149 | 56,874 | — | 503,023 | |||||||||||||||
Impairment | — | 150,125 | 42,643 | — | 192,768 | |||||||||||||||
Gain on derivative contracts | — | (292,733 | ) | (41,278 | ) | — | (334,011 | ) | ||||||||||||
Total expenses | 331 | 888,965 | 79,378 | (140 | ) | 968,534 | ||||||||||||||
(Loss) income from operations | (331 | ) | 452,566 | 137,989 | — | 590,224 | ||||||||||||||
Equity earnings from subsidiaries | 495,154 | 38,967 | — | (534,121 | ) | — | ||||||||||||||
Interest (expense) income, net | (244,209 | ) | 100 | — | — | (244,109 | ) | |||||||||||||
Other income (expense), net | — | 3,521 | (31 | ) | — | 3,490 | ||||||||||||||
Income before income taxes | 250,614 | 495,154 | 137,958 | (534,121 | ) | 349,605 | ||||||||||||||
Income tax (benefit) expense | (2,671 | ) | — | 378 | — | (2,293 | ) | |||||||||||||
Net income | 253,285 | 495,154 | 137,580 | (534,121 | ) | 351,898 | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 98,613 | 98,613 | |||||||||||||||
Net income attributable to SandRidge Energy, Inc. | $ | 253,285 | $ | 495,154 | $ | 137,580 | $ | (632,734 | ) | $ | 253,285 | |||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Total revenues | $ | — | $ | 1,675,481 | $ | 308,300 | $ | (393 | ) | $ | 1,983,388 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 654,080 | 29,143 | (393 | ) | 682,830 | ||||||||||||||
General and administrative | 329 | 323,808 | 6,288 | — | 330,425 | |||||||||||||||
Depreciation, depletion, amortization and accretion | — | 581,435 | 85,210 | — | 666,645 | |||||||||||||||
Impairment | — | 15,038 | 11,242 | — | 26,280 | |||||||||||||||
Loss on derivative contracts | — | 24,702 | 22,421 | — | 47,123 | |||||||||||||||
Loss on sale of assets | — | 291,743 | 107,343 | — | 399,086 | |||||||||||||||
Total expenses | 329 | 1,890,806 | 261,647 | (393 | ) | 2,152,389 | ||||||||||||||
(Loss) income from operations | (329 | ) | (215,325 | ) | 46,653 | — | (169,001 | ) | ||||||||||||
Equity earnings from subsidiaries | (195,118 | ) | 3,075 | — | 192,043 | — | ||||||||||||||
Interest (expense) income, net | (271,193 | ) | 959 | — | — | (270,234 | ) | |||||||||||||
Loss on extinguishment of debt | (82,005 | ) | — | — | — | (82,005 | ) | |||||||||||||
Other income (expense), net | — | 16,173 | (3,728 | ) | — | 12,445 | ||||||||||||||
(Loss) income before income taxes | (548,645 | ) | (195,118 | ) | 42,925 | 192,043 | (508,795 | ) | ||||||||||||
Income tax expense | 5,244 | — | 440 | — | 5,684 | |||||||||||||||
Net (loss) income | (553,889 | ) | (195,118 | ) | 42,485 | 192,043 | (514,479 | ) | ||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 39,410 | 39,410 | |||||||||||||||
Net (loss) income attributable to SandRidge Energy, Inc. | $ | (553,889 | ) | $ | (195,118 | ) | $ | 42,485 | $ | 152,633 | $ | (553,889 | ) | |||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Total revenues | $ | — | $ | 1,638,741 | $ | 404,418 | $ | (108,517 | ) | $ | 1,934,642 | |||||||||
Expenses | ||||||||||||||||||||
Direct operating expenses | — | 596,028 | 146,416 | (107,095 | ) | 635,349 | ||||||||||||||
General and administrative | 367 | 235,102 | 7,635 | (1,422 | ) | 241,682 | ||||||||||||||
Depreciation, depletion, amortization and accretion | — | 570,786 | 87,044 | — | 657,830 | |||||||||||||||
Impairment | — | 236,671 | 79,333 | — | 316,004 | |||||||||||||||
Gain on derivative contracts | — | (198,732 | ) | (42,687 | ) | — | (241,419 | ) | ||||||||||||
Total expenses | 367 | 1,439,855 | 277,741 | (108,517 | ) | 1,609,446 | ||||||||||||||
(Loss) income from operations | (367 | ) | 198,886 | 126,677 | — | 325,196 | ||||||||||||||
Equity earnings from subsidiaries | 347,715 | 20,667 | — | (368,382 | ) | — | ||||||||||||||
Interest (expense) income, net | (303,510 | ) | 725 | (564 | ) | — | (303,349 | ) | ||||||||||||
Bargain purchase gain | — | 122,696 | — | — | 122,696 | |||||||||||||||
Loss on extinguishment of debt | (3,075 | ) | — | — | — | (3,075 | ) | |||||||||||||
Other income, net | — | 4,741 | — | — | 4,741 | |||||||||||||||
Income before income taxes | 40,763 | 347,715 | 126,113 | (368,382 | ) | 146,209 | ||||||||||||||
Income tax (benefit) expense | (100,808 | ) | — | 446 | — | (100,362 | ) | |||||||||||||
Net income | 141,571 | 347,715 | 125,667 | (368,382 | ) | 246,571 | ||||||||||||||
Less: net income attributable to noncontrolling interest | — | — | — | 105,000 | 105,000 | |||||||||||||||
Net income attributable to SandRidge Energy, Inc. | $ | 141,571 | $ | 347,715 | $ | 125,667 | $ | (473,382 | ) | $ | 141,571 | |||||||||
Condensed Consolidating Statements of Cash Flows of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors | Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 141,751 | $ | 258,498 | $ | 212,427 | $ | 8,438 | $ | 621,114 | ||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures for property, plant and equipment | — | (1,553,332 | ) | — | — | (1,553,332 | ) | |||||||||||||
Proceeds from sale of assets | — | 711,728 | 2,747 | — | 714,475 | |||||||||||||||
Other | — | (165,551 | ) | 1,140 | 146,027 | (18,384 | ) | |||||||||||||
Net cash (used in) provided by investing activities | — | (1,007,155 | ) | 3,887 | 146,027 | (857,241 | ) | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Distributions to unitholders | — | — | (234,327 | ) | 40,520 | (193,807 | ) | |||||||||||||
Repurchase of common stock | (111,827 | ) | — | — | — | (111,827 | ) | |||||||||||||
Intercompany (advances) borrowings, net | (598,051 | ) | 598,056 | (5 | ) | — | — | |||||||||||||
Other | (66,910 | ) | 150,986 | 19,260 | (194,985 | ) | (91,649 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (776,788 | ) | 749,042 | (215,072 | ) | (154,465 | ) | (397,283 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | (635,037 | ) | 385 | 1,242 | — | (633,410 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 805,505 | 1,013 | 8,145 | — | 814,663 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 170,468 | $ | 1,398 | $ | 9,387 | $ | — | $ | 181,253 | ||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (239,026 | ) | $ | 852,026 | $ | 254,723 | $ | 907 | $ | 868,630 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures for property, plant and equipment | — | (1,496,731 | ) | — | — | (1,496,731 | ) | |||||||||||||
Proceeds from sale of assets | — | 2,566,742 | 17,373 | — | 2,584,115 | |||||||||||||||
Other | — | 89,606 | 3,197 | (109,831 | ) | (17,028 | ) | |||||||||||||
Net cash provided by investing activities | — | 1,159,617 | 20,570 | (109,831 | ) | 1,070,356 | ||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Repayments of borrowings | (1,115,500 | ) | — | — | — | (1,115,500 | ) | |||||||||||||
Premium on debt redemption | (61,997 | ) | — | — | — | (61,997 | ) | |||||||||||||
Distributions to unitholders | — | — | (299,675 | ) | 93,205 | (206,470 | ) | |||||||||||||
Dividends paid—preferred | (55,525 | ) | — | — | — | (55,525 | ) | |||||||||||||
Intercompany borrowings (advances), net | 2,009,146 | (2,018,212 | ) | 9,066 | — | — | ||||||||||||||
Other | (31,821 | ) | 6,660 | 14,845 | 15,719 | 5,403 | ||||||||||||||
Net cash provided by (used in) financing activities | 744,303 | (2,011,552 | ) | (275,764 | ) | 108,924 | (1,434,089 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 505,277 | 91 | (471 | ) | — | 504,897 | ||||||||||||||
Cash and cash equivalents at beginning of year | 300,228 | 922 | 8,616 | — | 309,766 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 805,505 | $ | 1,013 | $ | 8,145 | $ | — | $ | 814,663 | ||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 285,567 | $ | 264,717 | $ | 162,281 | $ | 70,595 | $ | 783,160 | ||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures for property, plant and equipment | — | (2,112,547 | ) | (33,825 | ) | — | (2,146,372 | ) | ||||||||||||
Acquisitions, net of cash received | (693,091 | ) | (147,649 | ) | (587,086 | ) | 587,086 | (840,740 | ) | |||||||||||
Proceeds from sale of assets | 129,830 | 942,675 | 1,333 | (642,671 | ) | 431,167 | ||||||||||||||
Other | (61,343 | ) | 278,708 | — | (217,365 | ) | — | |||||||||||||
Net cash used in investing activities | (624,604 | ) | (1,038,813 | ) | (619,578 | ) | (272,950 | ) | (2,555,945 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from borrowings | 1,850,344 | — | — | — | 1,850,344 | |||||||||||||||
Repayments of borrowings | (350,000 | ) | — | (16,029 | ) | — | (366,029 | ) | ||||||||||||
Proceeds from issuance royalty trust units | — | — | 587,086 | — | 587,086 | |||||||||||||||
Proceeds from sale of royalty trust units | — | — | — | 139,360 | 139,360 | |||||||||||||||
Distributions to unitholders | — | — | (274,980 | ) | 93,253 | (181,727 | ) | |||||||||||||
Dividends paid—preferred | (55,525 | ) | — | — | — | (55,525 | ) | |||||||||||||
Intercompany (advances) borrowings, net | (945,448 | ) | 809,099 | 136,349 | — | — | ||||||||||||||
Other | (64,121 | ) | (34,518 | ) | 30,258 | (30,258 | ) | (98,639 | ) | |||||||||||
Net cash provided by financing activities | 435,250 | 774,581 | 462,684 | 202,355 | 1,874,870 | |||||||||||||||
Net increase in cash and cash equivalents | 96,213 | 485 | 5,387 | — | 102,085 | |||||||||||||||
Cash and cash equivalents at beginning of year | 204,015 | 437 | 3,229 | — | 207,681 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 300,228 | $ | 922 | $ | 8,616 | $ | — | $ | 309,766 | ||||||||||
Supplemental_Information_on_Oi1
Supplemental Information on Oil and Natural Gas Producing Activities (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Reserve Quantities [Line Items] | ||||||||||||
Capitalized Costs Relating to Oil, Natural Gas and NGL Producing Activities | Capitalized Costs Related to Oil and Natural Gas Producing Activities | |||||||||||
The Company’s capitalized costs for oil and natural gas activities consisted of the following (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Oil and natural gas properties | ||||||||||||
Proved | $ | 11,707,147 | $ | 10,972,816 | $ | 12,262,921 | ||||||
Unproved | 290,596 | 531,606 | 865,863 | |||||||||
Total oil and natural gas properties | 11,997,743 | 11,504,422 | 13,128,784 | |||||||||
Less accumulated depreciation, depletion and impairment | (6,359,149 | ) | (5,762,969 | ) | (5,231,182 | ) | ||||||
Net oil and natural gas properties capitalized costs | $ | 5,638,594 | $ | 5,741,453 | $ | 7,897,602 | ||||||
Cost Incurred in Oil and Natural Gas Property Acquisition, Exploration, and Development | Costs incurred in oil and natural gas property acquisition, exploration and development activities which have been capitalized are summarized as follows (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Acquisitions of properties | ||||||||||||
Proved | $ | 73,370 | $ | 21,130 | $ | 1,761,556 | ||||||
Unproved | 123,649 | 100,242 | 377,185 | |||||||||
Exploration(1) | 41,070 | 82,775 | 120,438 | |||||||||
Development(2) | 1,288,395 | 1,131,269 | 1,704,991 | |||||||||
Total cost incurred | $ | 1,526,484 | $ | 1,335,416 | $ | 3,964,170 | ||||||
____________________ | ||||||||||||
-1 | Includes seismic costs of $10.8 million, $6.7 million and $15.3 million for 2014, 2013 and 2012, respectively. | |||||||||||
-2 | Includes the Company’s share of Century Plant construction costs of $50.0 million for 2012. See Note 7. | |||||||||||
Results of Operations for Oil, Natural Gas and NGL Producing Activities | The Company’s results of operations from oil and natural gas producing activities for each of the years 2014, 2013 and 2012 are shown in the following table (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | $ | 1,420,879 | $ | 1,820,278 | $ | 1,759,282 | ||||||
Expenses | ||||||||||||
Production costs | 377,819 | 548,719 | 524,364 | |||||||||
Depreciation and depletion | 434,295 | 567,732 | 568,029 | |||||||||
Accretion of asset retirement obligations | 9,092 | 36,777 | 28,996 | |||||||||
Total expenses | 821,206 | 1,153,228 | 1,121,389 | |||||||||
Income before income taxes | 599,673 | 667,050 | 637,893 | |||||||||
Benefit of income taxes(1) | (3,933 | ) | (7,471 | ) | (437,595 | ) | ||||||
Results of operations for oil and natural gas producing activities (excluding corporate overhead and interest costs) | $ | 603,606 | $ | 674,521 | $ | 1,075,488 | ||||||
____________________ | ||||||||||||
-1 | Reflects the Company’s effective tax rate, including the partial valuation allowance releases. | |||||||||||
Summary of Changes in Estimated Oil, Natural Gas and NGL Reserves | The summary below presents changes in the Company’s estimated reserves for 2012, 2013 and 2014. | |||||||||||
Oil | NGL | Natural Gas | ||||||||||
(MBbls) | (MBbls) | (MMcf)(1) | ||||||||||
Proved developed and undeveloped reserves | ||||||||||||
As of December 31, 2011 | 214,450 | 30,335 | 1,355,056 | |||||||||
Revisions of previous estimates | (37,394 | ) | 15,098 | (538,214 | ) | |||||||
Acquisitions of new reserves | 31,470 | 683 | 202,995 | |||||||||
Extensions and discoveries | 89,656 | 27,259 | 489,302 | |||||||||
Sales of reserves in place | (20,269 | ) | (3,287 | ) | (548 | ) | ||||||
Production | (15,868 | ) | (2,094 | ) | (93,549 | ) | ||||||
As of December 31, 2012(2) | 262,045 | 67,994 | 1,415,042 | |||||||||
Revisions of previous estimates | (13,969 | ) | 3,717 | (53,432 | ) | |||||||
Acquisitions of new reserves | 43 | 13 | 363 | |||||||||
Extensions and discoveries | 40,570 | 18,686 | 359,918 | |||||||||
Sales of reserves in place | (131,769 | ) | (29,067 | ) | (228,229 | ) | ||||||
Production | (14,279 | ) | (2,291 | ) | (103,233 | ) | ||||||
As of December 31, 2013(2) | 142,641 | 59,052 | 1,390,429 | |||||||||
Revisions of previous estimates | (18,687 | ) | 11,103 | 167,589 | ||||||||
Acquisitions of new reserves | 1,009 | 441 | 12,527 | |||||||||
Extensions and discoveries | 37,603 | 27,500 | 467,185 | |||||||||
Sales of reserves in place | (25,659 | ) | (2,516 | ) | (163,800 | ) | ||||||
Production | (10,876 | ) | (3,794 | ) | (85,697 | ) | ||||||
As of December 31, 2014(2) | 126,031 | 91,786 | 1,788,233 | |||||||||
Proved developed reserves | ||||||||||||
As of December 31, 2011 | 101,578 | 17,150 | 670,382 | |||||||||
As of December 31, 2012 | 136,605 | 33,785 | 896,701 | |||||||||
As of December 31, 2013 | 83,893 | 35,807 | 951,609 | |||||||||
As of December 31, 2014 | 79,022 | 56,823 | 1,203,447 | |||||||||
Proved undeveloped reserves | ||||||||||||
As of December 31, 2011 | 112,872 | 13,185 | 684,674 | |||||||||
As of December 31, 2012 | 125,440 | 34,209 | 518,341 | |||||||||
As of December 31, 2013 | 58,748 | 23,245 | 438,820 | |||||||||
As of December 31, 2014 | 47,009 | 34,963 | 584,786 | |||||||||
____________________ | ||||||||||||
-1 | Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit. | |||||||||||
-2 | Includes proved reserves attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 as shown in the table below: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Oil (MBbl) | 11,027 | 13,569 | 17,340 | |||||||||
NGL (MBbl) | 4,761 | 4,737 | 5,132 | |||||||||
Natural gas (MMcf) | 70,833 | 69,693 | 94,543 | |||||||||
Calculation of Weighted Average Per Unit Prices | The calculated weighted average per unit prices for the Company’s proved reserves and future net revenues were as follows: | |||||||||||
At December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Oil (per barrel) | $ | 91.65 | $ | 95.67 | $ | 91.65 | ||||||
NGL (per barrel) | $ | 32.79 | $ | 31.4 | $ | 32.64 | ||||||
Natural gas (per Mcf) | $ | 3.61 | $ | 3.65 | $ | 2.29 | ||||||
Standardized Measure of Discounted Future Cash Flows | The summary below presents the Company’s future net cash flows relating to proved oil, natural gas and NGL reserves based on the standardized measure in ASC Topic 932 (in thousands). | |||||||||||
At December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Future cash inflows from production | $ | 21,022,320 | $ | 19,937,484 | $ | 29,482,544 | ||||||
Future production costs | (6,499,366 | ) | (6,843,713 | ) | (8,899,465 | ) | ||||||
Future development costs(1) | (1,810,201 | ) | (2,546,680 | ) | (4,021,051 | ) | ||||||
Future income tax expenses | (3,223,740 | ) | (2,283,541 | ) | (3,721,509 | ) | ||||||
Undiscounted future net cash flows | 9,489,013 | 8,263,550 | 12,840,519 | |||||||||
10% annual discount | (5,401,261 | ) | (4,245,939 | ) | (7,000,151 | ) | ||||||
Standardized measure of discounted future net cash flows(2) | $ | 4,087,752 | $ | 4,017,611 | $ | 5,840,368 | ||||||
____________________ | ||||||||||||
-1 | Includes abandonment costs. | |||||||||||
-2 | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 respectively. | |||||||||||
Estimate of Changes in Standardized Measure of Discounted Future Net Cash Flows from Proved Reserves | The following table represents the Company’s estimate of changes in the standardized measure of discounted future net cash flows from proved reserves (in thousands): | |||||||||||
Present value as of December 31, 2011 | $ | 5,216,337 | ||||||||||
Changes during the year | ||||||||||||
Revenues less production and other costs | (1,234,918 | ) | ||||||||||
Net changes in prices, production and other costs | (2,555,391 | ) | ||||||||||
Development costs incurred | 766,943 | |||||||||||
Net changes in future development costs | (45,397 | ) | ||||||||||
Extensions and discoveries | 2,092,423 | |||||||||||
Revisions of previous quantity estimates | (530,755 | ) | ||||||||||
Accretion of discount | 678,200 | |||||||||||
Net change in income taxes | 11,433 | |||||||||||
Purchases of reserves in-place | 1,708,301 | |||||||||||
Sales of reserves in-place | (410,415 | ) | ||||||||||
Timing differences and other(1) | 143,607 | |||||||||||
Net change for the year | 624,031 | |||||||||||
Present value as of December 31, 2012(2) | 5,840,368 | |||||||||||
Changes during the year | ||||||||||||
Revenues less production and other costs | (1,271,559 | ) | ||||||||||
Net changes in prices, production and other costs | 271,566 | |||||||||||
Development costs incurred | 474,275 | |||||||||||
Net changes in future development costs | (207,729 | ) | ||||||||||
Extensions and discoveries | 1,406,102 | |||||||||||
Revisions of previous quantity estimates | (296,418 | ) | ||||||||||
Accretion of discount | 711,385 | |||||||||||
Net change in income taxes | 477,328 | |||||||||||
Purchases of reserves in-place | 1,628 | |||||||||||
Sales of reserves in-place | (3,172,187 | ) | ||||||||||
Timing differences and other(1) | (217,148 | ) | ||||||||||
Net change for the year | (1,822,757 | ) | ||||||||||
Present value as of December 31, 2013(2) | 4,017,611 | |||||||||||
Changes during the year | ||||||||||||
Revenues less production and other costs | (1,043,060 | ) | ||||||||||
Net changes in prices, production and other costs | 331,694 | |||||||||||
Development costs incurred | 364,262 | |||||||||||
Net changes in future development costs | (341,183 | ) | ||||||||||
Extensions and discoveries | 1,785,963 | |||||||||||
Revisions of previous quantity estimates | (77,688 | ) | ||||||||||
Accretion of discount | 477,458 | |||||||||||
Net change in income taxes | (256,371 | ) | ||||||||||
Purchases of reserves in-place | 50,958 | |||||||||||
Sales of reserves in-place | (1,058,330 | ) | ||||||||||
Timing differences and other(1) | (163,562 | ) | ||||||||||
Net change for the year | 70,141 | |||||||||||
Present value as of December 31, 2014(2) | $ | 4,087,752 | ||||||||||
____________________ | ||||||||||||
-1 | The change in timing differences and other are related to revisions in the Company’s estimated time of production and development. | |||||||||||
-2 | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013, and 2012 respectively. | |||||||||||
Noncontrolling Interest | ||||||||||||
Reserve Quantities [Line Items] | ||||||||||||
Summary of Changes in Estimated Oil, Natural Gas and NGL Reserves | ||||||||||||
Includes proved reserves attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 as shown in the table below: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Oil (MBbl) | 11,027 | 13,569 | 17,340 | |||||||||
NGL (MBbl) | 4,761 | 4,737 | 5,132 | |||||||||
Natural gas (MMcf) | 70,833 | 69,693 | 94,543 | |||||||||
Quarterly_Financial_Results_Un1
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Results (Unaudited) | The Company’s operating results for each quarter of 2014 and 2013 are summarized below (in thousands, except per share data). | |||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
2014 | ||||||||||||||||
Total revenues | $ | 443,056 | $ | 374,714 | $ | 394,107 | $ | 346,881 | ||||||||
(Loss) income from operations(1)(2) | $ | (82,330 | ) | $ | 42,079 | $ | 256,491 | $ | 373,984 | |||||||
Net (loss) income(1)(2) | $ | (142,406 | ) | $ | (17,252 | ) | $ | 197,499 | $ | 314,057 | ||||||
(Loss applicable) income available to SandRidge Energy, Inc. common stockholders(1)(2) | $ | (150,217 | ) | $ | (46,775 | ) | $ | 145,957 | $ | 254,295 | ||||||
(Loss applicable) income available per share to SandRidge Energy, Inc. common stockholders(3) | ||||||||||||||||
Basic | $ | (0.31 | ) | $ | (0.10 | ) | $ | 0.3 | $ | 0.55 | ||||||
Diluted | $ | (0.31 | ) | $ | (0.10 | ) | $ | 0.27 | $ | 0.48 | ||||||
2013 | ||||||||||||||||
Total revenues | $ | 511,690 | $ | 512,987 | $ | 493,603 | $ | 465,108 | ||||||||
(Loss) income from operations(4)(5)(6) | $ | (367,482 | ) | $ | 78,386 | $ | (2,166 | ) | $ | 122,261 | ||||||
Net (loss) income(4)(5)(6) | $ | (539,215 | ) | $ | 16,613 | $ | (65,256 | ) | $ | 73,379 | ||||||
(Loss applicable) income available to SandRidge Energy, Inc. common stockholders(4)(5)(6) | $ | (501,177 | ) | $ | (42,389 | ) | $ | (95,328 | ) | $ | 29,480 | |||||
(Loss applicable) income available per share to SandRidge Energy, Inc. common stockholders(3) | ||||||||||||||||
Basic | $ | (1.05 | ) | $ | (0.09 | ) | $ | (0.20 | ) | $ | 0.06 | |||||
Diluted | $ | (1.05 | ) | $ | (0.09 | ) | $ | (0.20 | ) | $ | 0.06 | |||||
____________________ | ||||||||||||||||
-1 | Includes a full cost ceiling limitation impairment of $164.8 million in the first quarter and impairments of drilling assets of $3.1 million and $24.3 million in the second and fourth quarters, respectively. | |||||||||||||||
-2 | Includes loss (gain) on derivative contracts of $42.5 million, $85.3 million, $(132.6) million and $(329.2) million for the first, second, third and fourth quarters, respectively. | |||||||||||||||
-3 | (Loss applicable) income available per share to common stockholders for each quarter is computed using the weighted-average number of shares outstanding during the quarter, while earnings per share for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of (loss applicable) income available per share to common stockholders for each of the four quarters may not equal the fiscal year amount. | |||||||||||||||
-4 | Includes a $10.6 million impairment of various drilling assets and a $2.9 million impairment of a corporate asset in the second quarter of 2013 and a $2.1 million and $10.0 million impairment of certain midstream inventory, natural gas compressors, gas treating plants and a CO2 compression station in the second and fourth quarters of 2013, respectively. | |||||||||||||||
-5 | Includes loss (gain) on derivative contracts of $40.9 million, $(103.7) million, $132.8 million and $(22.9) million for the first, second, third and fourth quarters, respectively. | |||||||||||||||
-6 | Includes loss on sale of Permian Properties of $398.9 million in the first quarter of 2013. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
Capitalized costs | $1,526,484,000 | $1,335,416,000 | $3,964,170,000 |
Maximum reserves sold from cost center not expected to result in significant alteration (less than) | 25.00% | ||
Natural gas balancing liability | 1,400,000 | 2,600,000 | |
Advertising expense | 1,300,000 | 5,100,000 | 11,800,000 |
Internal Costs | |||
Significant Accounting Policies [Line Items] | |||
Capitalized costs | 55,400,000 | 74,700,000 | 61,300,000 |
Buildings | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Buildings | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 39 years | ||
Equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 30 years | ||
Oil And Gas Unproved Properties | |||
Significant Accounting Policies [Line Items] | |||
Interest capitalized during period | 14,700,000 | 11,700,000 | 10,100,000 |
Midstream And Corporate Assets | |||
Significant Accounting Policies [Line Items] | |||
Interest capitalized during period | $5,000,000 | $4,900,000 | $4,700,000 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for interest, net of amounts capitalized | ($235,793) | ($274,850) | ($257,152) |
Cash received (paid) for income taxes | 1,928 | -4,610 | -1,324 |
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Deposit on pending sale | 0 | -255,000 | 255,000 |
Change in accrued capital expenditures | -55,557 | 72,848 | -77,610 |
Asset retirement costs capitalized | 4,968 | 5,078 | 7,479 |
Common stock issued in connection with acquisition | $0 | $0 | $542,138 |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures - Dynamic Acquisition - Final Valuation of Assets Acquired and Liabilities Assumed (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 17, 2012 | |
Fair Value of Assets Acquired | |||||
Bargain purchase gain | $0 | $0 | ($122,696,000) | ||
Dynamic Acquisition | |||||
Consideration | |||||
Shares of SandRidge common stock issued | 73,962 | [1] | |||
SandRidge common stock price | $7.33 | [1] | |||
Fair value of common stock issued | 542,138,000 | [1] | |||
Cash consideration | 680,000,000 | [1],[2] | |||
Cash balance adjustment | 13,091,000 | [1],[3] | |||
Total purchase price | 1,235,229,000 | [1] | |||
Fair Value of Liabilities Assumed | |||||
Current liabilities | 129,363,000 | ||||
Asset retirement obligations | 315,922,000 | [4] | |||
Long-term deferred tax liability | 100,288,000 | [5] | |||
Other long-term liabilities | 4,469,000 | ||||
Amount attributable to liabilities assumed | 550,042,000 | ||||
Total purchase price plus liabilities assumed | 1,785,271,000 | ||||
Fair Value of Assets Acquired | |||||
Current assets | 142,027,000 | ||||
Oil and natural gas properties | 1,746,753,000 | [6] | |||
Other property, plant and equipment | 1,296,000 | ||||
Other non-current assets | 17,891,000 | ||||
Amount attributable to assets acquired | 1,907,967,000 | ||||
Bargain purchase gain | ($122,696,000) | [7] | |||
[1] | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. | ||||
[2] | Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022. | ||||
[3] | In accordance with the acquisition agreement, the Company remitted to the seller a cash payment equal to Dynamic’s average daily cash balance for the 30-day period ending on the second day prior to closing. This resulted in an additional cash payment by the Company of $13.1 million at closing. | ||||
[4] | The estimated fair value of the acquired asset retirement obligations was determined using the Company’s credit adjusted risk-free rate. | ||||
[5] | The net deferred tax liability is primarily a result of the difference between the estimated fair value and the Company’s expected tax basis in the assets acquired and liabilities assumed. The net deferred tax liability also includes the effects of deferred tax assets associated with net operating losses and other tax attributes acquired as a result of the Dynamic Acquisition. | ||||
[6] | The fair value of oil and natural gas properties acquired was estimated using a discounted cash flow model, with future cash flows estimated based upon projections of oil and natural gas reserve quantities and weighted average oil and natural gas prices of $113.62 per barrel of oil and $3.83 per Mcf of natural gas, after adjustment for transportation fees and regional price differentials. The commodity prices utilized were based upon commodity strip prices as of April 17, 2012 for the first four years and escalated for inflation at a rate of 2.0% annually beginning with the fifth year through the end of production. Future cash flows were discounted using an industry weighted average cost of capital rate. | ||||
[7] | The bargain purchase gain resulted from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures - Dynamic Acquisition - Final Valuation of Assets Acquired and Liabilities Assumed (Additional Information) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 17, 2012 | Apr. 30, 2012 | |
Business Acquisition [Line Items] | ||||||
Face amount of Senior Notes issued | $0 | $0 | $1,850,344 | |||
Dynamic Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Issuance of common stock in acquisition (in shares) | 73,962 | [1] | ||||
Cash consideration | 680,000 | [1],[2] | ||||
SandRidge common stock price (in dollars per share) | $7.33 | [1] | ||||
Cash balance adjustment | 13,091 | [1],[3] | ||||
Commodity prices period valuation before escalation | 4 years | |||||
Annual escalation factor for forward commodity strip prices beginning the fifth year through end of production | 2.00% | |||||
Oil | Dynamic Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Commodity average price (in dollars per bbl for oil/dollars per mcf for natural gas) | 113.62 | |||||
Natural Gas Reserves | Dynamic Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Commodity average price (in dollars per bbl for oil/dollars per mcf for natural gas) | 3.83 | |||||
8.125% Senior Notes due 2022 | ||||||
Business Acquisition [Line Items] | ||||||
Long-term debt, fixed interest rate | 8.13% | 8.13% | 8.13% | |||
8.125% Senior Notes due 2022 | Dynamic Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Face amount of Senior Notes issued | $750,000 | |||||
Long-term debt, fixed interest rate | 8.13% | |||||
[1] | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. | |||||
[2] | Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022. | |||||
[3] | In accordance with the acquisition agreement, the Company remitted to the seller a cash payment equal to Dynamic’s average daily cash balance for the 30-day period ending on the second day prior to closing. This resulted in an additional cash payment by the Company of $13.1 million at closing. |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures - Dynamic Acquisition - Unaudited Pro Forma Results of Operations (Details) (Dynamic Acquisition, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 | |
Dynamic Acquisition | ||
Business Acquisition [Line Items] | ||
Revenues | $2,112,576 | [1] |
Net income | 39,563 | [1] |
Loss applicable to SandRidge Energy, Inc. common stockholders | ($120,962) | [1] |
Loss per common share | ||
Basic (in dollars per share) | ($0.25) | [1] |
Diluted (in dollars per share) | ($0.25) | [1] |
[1] | Pro forma net income, loss applicable to SandRidge Energy, Inc. common stockholders and loss per common share exclude a $122.7 million bargain purchase gain, a $100.3 million partial valuation allowance release included in income tax benefit, $10.9 million of fees incurred to secure financing for the Dynamic Acquisition included in interest expense and $13.0 million of transaction costs incurred and included in general and administrative expense in the accompanying consolidated statement of operations for the year ended December 31, 2012. |
Acquisitions_and_Divestitures_4
Acquisitions and Divestitures - Dynamic Acquisition - Unaudited Pro Forma Results of Operations (Additional Information) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 17, 2012 | ||
Business Acquisition [Line Items] | |||||
Bargain purchase gain | $0 | $0 | $122,696,000 | ||
Valuation allowance release | 0 | 3,842,000 | -100,288,000 | ||
Dynamic Acquisition | |||||
Business Acquisition [Line Items] | |||||
Bargain purchase gain | 122,696,000 | [1] | |||
Valuation allowance release | -100,300,000 | ||||
Acquisition related costs | 13,000,000 | ||||
Pro Forma Adjustment | Dynamic Acquisition | |||||
Business Acquisition [Line Items] | |||||
Bargain purchase gain | -122,700,000 | ||||
Valuation allowance release | 100,300,000 | ||||
Fees to secure financing for acquisition | -10,900,000 | ||||
Acquisition related costs | ($13,000,000) | ||||
[1] | The bargain purchase gain resulted from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. |
Acquisitions_and_Divestitures_5
Acquisitions and Divestitures - Gulf of Mexico Property Acquisitions - Final Valuation of Assets Acquired and Liabilities Assumed (Details) (Gulf of Mexico Properties, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jun. 20, 2012 |
Gulf of Mexico Properties | |
Consideration paid | |
Cash, net of purchase price adjustments | $43,282 |
Fair value of identifiable assets acquired and liabilities assumed | |
Proved developed and undeveloped properties | 98,725 |
Asset retirement obligations | -55,443 |
Total identifiable net assets | $43,282 |
Acquisitions_and_Divestitures_6
Acquisitions and Divestitures - Gulf of Mexico Property Acquisitions - Unaudited Pro Forma Results of Operations (Details) (Gulf of Mexico Properties, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 |
Gulf of Mexico Properties | |
Business Acquisition [Line Items] | |
Revenues | $1,963,058 |
Net income | 247,035 |
Income available to SandRidge Energy, Inc. common stockholders | $86,510 |
Earnings per common share | |
Basic (in dollars per share) | $0.19 |
Diluted (in dollars per share) | $0.19 |
Acquisitions_and_Divestitures_7
Acquisitions and Divestitures - Permian Propertites Disposal - Revenue and Expense Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disposal, Revenue and Expense Information [Line Items] | ||||||||||||
Revenues | $346,881 | $394,107 | $374,714 | $443,056 | $465,108 | $493,603 | $512,987 | $511,690 | $1,558,758 | $1,983,388 | $1,934,642 | |
Direct operating expenses | 483,889 | 682,830 | 635,349 | |||||||||
Permian Properties | ||||||||||||
Disposal, Revenue and Expense Information [Line Items] | ||||||||||||
Revenues | 68,027 | [1] | 566,075 | |||||||||
Direct operating expenses | $17,453 | [1] | $130,337 | |||||||||
[1] | Includes revenues and direct operating expenses through February 26, 2013, the date of sale. |
Acquisitions_and_Divestitures_8
Acquisitions and Divestitures - Gulf Properties Disposal - Revenue and Expense Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisitions And Dispositions [Line Items] | ||||||||||||
Revenues | $346,881 | $394,107 | $374,714 | $443,056 | $465,108 | $493,603 | $512,987 | $511,690 | $1,558,758 | $1,983,388 | $1,934,642 | |
Expenses | 968,534 | 2,152,389 | 1,609,446 | |||||||||
Gulf Properties | ||||||||||||
Business Acquisitions And Dispositions [Line Items] | ||||||||||||
Revenues | 90,920 | [1] | 627,236 | 449,420 | ||||||||
Expenses | $63,674 | [1] | $491,991 | $360,209 | ||||||||
[1] | Includes revenues and expenses through February 25, 2014, the date of the sale. |
Acquisitions_and_Divestitures_9
Acquisitions and Divestitures - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 17, 2012 | Jun. 20, 2012 | Mar. 31, 2013 | Jan. 31, 2012 | Jun. 30, 2012 | Feb. 26, 2013 | Feb. 25, 2014 | |
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Bargain purchase gain | $0 | $0 | $122,696,000 | ||||||||
Dynamic Acquisition | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Percentage of equity interests acquired | 100.00% | ||||||||||
Purchase price of acquired entity | 1,235,229,000 | [1] | |||||||||
Cash consideration | 680,000,000 | [1],[2] | |||||||||
Issuance of common stock in acquisition (in shares) | 73,962 | [1] | |||||||||
Revenue of acquiree since acquisition date | 365,000,000 | ||||||||||
Earnings of acquiree since acquisition date | 81,500,000 | ||||||||||
Acquisition related costs | 13,000,000 | ||||||||||
Measurement period adjustments to the preliminary purchase price allocation | 0 | ||||||||||
Bargain purchase gain | 122,696,000 | [3] | |||||||||
Gulf of Mexico Properties | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Cash consideration | 43,282,000 | ||||||||||
Revenue of acquiree since acquisition date | 26,200,000 | ||||||||||
Acquisition related costs | 200,000 | ||||||||||
Measurement period adjustments to the preliminary purchase price allocation | 4,800,000 | ||||||||||
Earnings on oil and gas properties | 19,100,000 | ||||||||||
Goodwill | 0 | ||||||||||
Bargain purchase gain | 0 | ||||||||||
Mississippian Properties | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Cash proceeds from sale of working interest subject to drilling carry commitment | 272,500,000 | ||||||||||
Future drilling and completion costs | 750,000,000 | ||||||||||
Gain (loss) on divestiture | 0 | ||||||||||
Tertiary | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Gain (loss) on divestiture | 0 | ||||||||||
Proceeds from sale of oil and natural gas properties | 130,800,000 | ||||||||||
Permian Properties | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Gain (loss) on divestiture | -398,900,000 | -398,900,000 | |||||||||
Proceeds from sale of oil and natural gas properties | 2,600,000,000 | ||||||||||
Gulf Properties | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Proceeds from sale of oil and natural gas properties | 702,600,000 | ||||||||||
Contingent consideration, liability | 5,100,000 | 9,400,000 | |||||||||
Restricted deposits | 28,000,000 | ||||||||||
Consideration receivable, current | 14,000,000 | ||||||||||
Non-controlling Interest | Permian Properties | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Gain (loss) on divestiture | -71,700,000 | ||||||||||
Asset Retirement Obligations | Gulf Properties | |||||||||||
Business Acquisitions And Dispositions [Line Items] | |||||||||||
Asset retirement obligations assumed | $366,000,000 | ||||||||||
[1] | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. | ||||||||||
[2] | Cash consideration paid, including amounts paid to retire Dynamic’s long-term debt, was funded through a portion of the net proceeds from the Company’s issuance of $750.0 million of unsecured 8.125% Senior Notes due 2022. | ||||||||||
[3] | The bargain purchase gain resulted from the excess of the fair value of net assets acquired over consideration paid. To validate the bargain purchase gain on this acquisition, the Company reviewed its initial identification and valuation of assets acquired and liabilities assumed. The Company believes it was able to acquire Dynamic for less than the estimated fair value of its net assets due to their offshore location resulting in less bidding competition. |
Variable_Interest_Entities_Roy
Variable Interest Entities - Royalty Trusts - Common and Subordinated Units Outstanding (Details) | 12 Months Ended | |
Dec. 31, 2014 | ||
Mississippian Trust I | ||
Variable Interest Entity [Line Items] | ||
Total outstanding common units (in shares) | 28,000,000 | [1] |
Total outstanding subordinated units (in shares) | 0 | [2] |
Permian Trust | ||
Variable Interest Entity [Line Items] | ||
Total outstanding common units (in shares) | 39,375,000 | |
Total outstanding subordinated units (in shares) | 13,125,000 | [2] |
Mississippian Trust II | ||
Variable Interest Entity [Line Items] | ||
Total outstanding common units (in shares) | 37,293,750 | |
Total outstanding subordinated units (in shares) | 12,431,250 | [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] | All outstanding subordinated units are owned by SandRidge. |
Variable_Interest_Entities_Roy1
Variable Interest Entities - Royalty Trusts - Ownership Interest (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Mississippian Trust I | ||
Variable Interest Entity [Line Items] | ||
Beneficial interest owned by Company | 26.90% | 26.90% |
Permian Trust | ||
Variable Interest Entity [Line Items] | ||
Beneficial interest owned by Company | 25.00% | 28.50% |
Mississippian Trust II | ||
Variable Interest Entity [Line Items] | ||
Beneficial interest owned by Company | 37.60% | 37.60% |
Variable_Interest_Entities_Roy2
Variable Interest Entities - Royalty Trusts - Distributions (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Variable Interest Entity [Line Items] | ||||||
Distributions to third-party unitholders | $193,807 | $206,470 | $181,727 | |||
Royalty Trusts | ||||||
Variable Interest Entity [Line Items] | ||||||
Total distributions | 234,326 | [1] | 299,674 | [2] | 274,979 | [3] |
Distributions to third-party unitholders | $193,807 | [1] | $206,470 | [2] | $181,727 | [3] |
[1] | Subordination thresholds were not met for the Mississippian Trust I’s first or second quarter 2014 distributions, the Permian Trust’s second, third or fourth quarter 2014 distributions or for the Mississippian Trust II’s distributions for the year ended December 31, 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 second, third or fourth quarter 2013 distributions, the Permian Trust’s second quarter 2013 distribution or for the Mississippian Trust II’s fourth quarter 2013 distribution, resulting in reduced distributions to the Company on its subordinated units for this period. | |||||
[3] | The Company received incentive distributions from the Mississippian Trust I during the first and second quarters of 2012. |
Variable_Interest_Entities_Roy3
Variable Interest Entities - Royalty Trusts - Open Oil and Natural Gas Commodity Derivative Contracts (Details) | 12 Months Ended |
Dec. 31, 2014 | |
MBbls | |
January 2015 - December 2015 | Oil price swaps | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/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 collars | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 1,010 |
Collar range, minimum | 4 |
Collar range, maximum | 8.55 |
Royalty Trusts | January 2015 - December 2015 | Oil price swaps | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 904 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 97.78 |
Royalty Trusts | January 2015 - December 2015 | Natural gas collars | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 1,010 |
Collar range, minimum | 4 |
Collar range, maximum | 8.55 |
Novated Contract | Royalty Trusts | January 2015 — March 2015 | Oil price swaps | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 141 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 100.9 |
Variable_Interest_Entities_Roy4
Variable Interest Entities - Royalty Trusts - Assets and Liabilities Included in Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | $181,253,000 | $814,663,000 | $309,766,000 | $207,681,000 | ||
Accounts receivable | 330,077,000 | 349,218,000 | ||||
Derivative contracts | 291,414,000 | 12,779,000 | ||||
Total current assets | 831,918,000 | 1,241,823,000 | ||||
Investment in royalty interests | 11,997,743,000 | 11,504,422,000 | 13,128,784,000 | |||
Less: accumulated depletion | -6,359,149,000 | -5,762,969,000 | -5,231,182,000 | |||
Investment in royalty interests, net | 5,638,594,000 | 5,741,453,000 | 7,897,602,000 | |||
Derivative contracts | 47,003,000 | 14,126,000 | ||||
Accounts payable and accrued expenses | 683,392,000 | 812,488,000 | ||||
Royalty Trusts | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 9,387,000 | [1] | 7,912,000 | [1] | ||
Accounts receivable | 17,660,000 | 22,540,000 | ||||
Derivative contracts | 6,589,000 | 4,983,000 | ||||
Total current assets | 33,636,000 | 35,435,000 | ||||
Investment in royalty interests | 1,325,942,000 | [2] | 1,325,942,000 | [2] | ||
Less: accumulated depletion | -284,094,000 | -186,095,000 | ||||
Investment in royalty interests, net | 1,041,848,000 | 1,139,847,000 | ||||
Derivative contracts | 0 | 1,476,000 | ||||
Total assets | 1,075,484,000 | 1,176,758,000 | ||||
Accounts payable and accrued expenses | 2,852,000 | 3,393,000 | ||||
Total liabilities | $2,852,000 | $3,393,000 | ||||
[1] | Includes $3.0 million held by the trustee at December 31, 2014 and 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 consolidated balance sheets. |
Variable_Interest_Entities_Roy5
Variable Interest Entities - Royalty Trusts - Assets and Liabilities Included in Consolidated Balance Sheets (Additional Information) (Details) (Royalty Trusts, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Royalty Trusts | ||
Variable Interest Entity [Line Items] | ||
Reserves for future expenses | $3 | $3 |
Variable_Interest_Entities_Gre
Variable Interest Entities - Grey Ranch, L.P. - Assets and Liabilities Included in Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $181,253,000 | $814,663,000 | $309,766,000 | $207,681,000 |
Accounts receivable, net | 330,077,000 | 349,218,000 | ||
Prepaid expenses | 7,981,000 | 39,253,000 | ||
Other current assets | 21,193,000 | 25,910,000 | ||
Total current assets | 831,918,000 | 1,241,823,000 | ||
Other property, plant and equipment, net | 576,463,000 | 566,222,000 | ||
Accounts payable and accrued expenses | 683,392,000 | 812,488,000 | ||
Grey Ranch Plant, L.P | ||||
Variable Interest Entity [Line Items] | ||||
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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pinon Gathering Company LLC | ||
Variable Interest Entity [Line Items] | ||
Accounts receivable due from PGC | $1,141 | $741 |
Accounts payable due to PGC | $4,163 | $3,634 |
Variable_Interest_Entities_Nar
Variable Interest Entities - Narrative (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Variable Interest Entity [Line Items] | ||||
Proceeds from the sale of royalty trust units | $22,119,000 | $28,985,000 | $139,360,000 | |
Mississippian Trust II | ||||
Variable Interest Entity [Line Items] | ||||
Proceeds from initial public offering | 587,100,000 | |||
Maximum amount recoverable by trusts under the lien | 19,500,000 | |||
Beneficial interest owned by Company | 37.60% | 37.60% | ||
Royalty Trusts | ||||
Variable Interest Entity [Line Items] | ||||
Percentage of royalty interest conveyed to company at trust termination | 50.00% | |||
Percentage of royalty interest sold at trust termination | 50.00% | |||
Percentage of subordinated units to total units | 25.00% | |||
Percentage of cash available in excess of target distribution paid for incentive distribution | 50.00% | |||
Outstanding balance under loan commitment | 0 | 0 | ||
Noncontrolling interest in VIEs | 1,300,000,000 | 1,300,000,000 | ||
Proceeds from the sale of royalty trust units | 22,100,000 | 29,000,000 | 139,400,000 | |
Total liabilities | 2,852,000 | 3,393,000 | ||
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. | |||
Grey Ranch Plant, L.P | ||||
Variable Interest Entity [Line Items] | ||||
Beneficial interest owned by Company | 50.00% | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 50.00% | |||
Noncontrolling interest, decrease from redemptions percentage | 50.00% | |||
Noncontrolling interest, limited partnerships | 700,000 | |||
Total liabilities | 129,000 | |||
Grey Ranch Plant Genpar, LLC (Genpar) | ||||
Variable Interest Entity [Line Items] | ||||
Beneficial interest owned by Company | 50.00% | |||
Noncontrolling interest, decrease from redemptions percentage | 50.00% | |||
Percentage ownership of another VIE | 1.00% | |||
Total liabilities | $0 | |||
Pinon Gathering Company LLC | Gas Gathering Agreement | ||||
Variable Interest Entity [Line Items] | ||||
Gas gathering and operations and maintenance agreement end date | 30-Jun-29 |
Fair_Value_Measurements_Signif
Fair Value Measurements - Significant Unobservable Inputs, Liabilities (Details) (Fair Value Measurements Level 3, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Natural gas basis swaps | |
Significant Unobservable Inputs | |
Derivative, weighted average forward price (Oil in USD/bbl, Natural Gas in USD/mcf) | -0.29 |
Fair value, level 3 commodity derivative contracts | $350 |
Minimum | Natural gas basis swaps | |
Significant Unobservable Inputs | |
Derivative, forward price (Oil in USD/bbl, Natural Gas in USD/mcf) | -0.03 |
Maximum | Natural gas basis swaps | |
Significant Unobservable Inputs | |
Derivative, forward price (Oil in USD/bbl, Natural Gas in USD/mcf) | -0.38 |
Gulf Properties | |
Significant Unobservable Inputs | |
Fair value inputs, estimated cash flows | $372,034 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis | ||||
Commodity derivative contracts, assets, net of offset | $338,417 | $26,905 | ||
Commodity derivative contracts, liabilities, net of offset | 0 | 54,831 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis | ||||
Restricted deposits | 27,955 | |||
Netting adjustment, assets | 0 | [1] | -23,369 | [1] |
Commodity derivative contracts, assets, net of offset | 338,417 | 26,905 | ||
Investments | 11,106 | 13,708 | ||
Assets measured at fair value | 349,523 | 68,568 | ||
Guarantees | 5,104 | |||
Netting adjustments, liabilities | 0 | [1] | -23,369 | [1] |
Commodity derivative contracts, liabilities, net of offset | 54,831 | |||
Liabilities measured at fair value | 5,104 | 54,831 | ||
Fair Value, Measurements, Recurring | Fair Value Measurements Level 1 | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis | ||||
Restricted deposits | 27,955 | |||
Commodity derivative contracts, assets, before netting | 0 | 0 | ||
Investments | 11,106 | 13,708 | ||
Assets measured at fair value | 11,106 | 41,663 | ||
Guarantees | 0 | |||
Commodity derivative contracts, liabilities, before netting | 0 | |||
Liabilities measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Fair Value Measurements Level 2 | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis | ||||
Restricted deposits | 0 | |||
Commodity derivative contracts, assets, before netting | 338,067 | 50,274 | ||
Investments | 0 | 0 | ||
Assets measured at fair value | 338,067 | 50,274 | ||
Guarantees | 0 | |||
Commodity derivative contracts, liabilities, before netting | 78,200 | |||
Liabilities measured at fair value | 0 | 78,200 | ||
Fair Value, Measurements, Recurring | Fair Value Measurements Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis | ||||
Restricted deposits | 0 | |||
Commodity derivative contracts, assets, before netting | 350 | 0 | ||
Investments | 0 | 0 | ||
Assets measured at fair value | 350 | 0 | ||
Guarantees | 5,104 | |||
Commodity derivative contracts, liabilities, before netting | 0 | |||
Liabilities measured at fair value | $5,104 | $0 | ||
[1] | Represents the impact of netting assets and liabilities with counterparties with which the right of offset exists. |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Financial Liabilities Measured at Fair Value on Recurring Basis Using Unobservable Inputs (Details) (Guarantees, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | |
Guarantees | ||
Level 3 Fair Value Measurements - Guarantees | ||
Beginning balance | $0 | |
Issuances | 9,446 | [1] |
Gain on guarantees | -4,342 | |
Ending balance | $5,104 | |
[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 derivatives contracts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commodity derivatives contracts | |||
Level 3 Fair Value Measurements - Commodity Derivative Contracts | |||
Level 3 commodity derivative contracts at January 1 | $0 | ($512) | ($4,252) |
Loss on derivative contracts | 0 | -133 | -5,460 |
Purchases | 350 | 0 | 5,697 |
Settlements paid | 0 | 645 | 3,503 |
Level 3 commodity derivative contracts at December 31 | $350 | $0 | ($512) |
Fair_Value_Measurements_Estima
Fair Value Measurements - Estimated Fair Value and Carrying Value of Senior Notes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis | ||||
Carrying value | $3,195,436 | $3,194,907 | ||
8.75% Senior Notes due 2020 | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis | ||||
Carrying value | 445,402 | [1] | 444,736 | [1] |
7.5% Senior Notes due 2021 | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis | ||||
Carrying value | 1,178,486 | [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 | 821,548 | [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 | 303,750 | [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 | 752,000 | [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 | 472,500 | 795,000 | ||
Fair Value Measurements Level 2 | 7.5% Senior Notes due 2023 | ||||
Fair Value Assets And Liabilities Measured On Recurring Basis | ||||
Fair value | $519,750 | [3] | $837,375 | [3] |
[1] | Carrying value is net of $4,598 and $5,264 discount at December 31, 2014 and 2013, respectively. | |||
[2] | Carrying value includes a premium, applicable to notes issued in August 2012, of $3,486 and $3,922 at December 31, 2014 and 2013, respectively. | |||
[3] | Carrying value is net of $3,452 and $3,751 discount at December 31, 2014 and 2013, respectively. |
Fair_Value_Measurements_Estima1
Fair Value Measurements - Estimated Fair Value and Carrying Value of Senior Notes (Additional Information) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2012 | Apr. 30, 2012 |
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 | $4,598 | $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% | 7.50% | |
Debt maturity date | 2021 | 2021 | ||
Long term debt, premium | 3,486 | 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% | 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% | 7.50% | |
Debt maturity date | 2023 | 2023 | ||
Long term debt, discount | $3,452 | $3,751 |
Fair_Value_Measurements_Narrat
Fair Value Measurements - Narrative (Details) (Gulf Properties) | 12 Months Ended |
Dec. 31, 2014 | |
Gulf Properties | |
Fair value inputs, probability of default | 3.71% |
Accounts_Receivable_Summary_of
Accounts Receivable - Summary of Accounts Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Receivables [Abstract] | ||||
Oil, natural gas and NGL sales | $139,848 | $166,157 | ||
Joint interest billing | 170,937 | 168,596 | ||
Oil and natural gas services | 21,436 | 17,904 | ||
Insurance receivable | 0 | 2,500 | ||
Other | 4,939 | 5,122 | ||
Accounts receivable, gross | 337,160 | 360,279 | ||
Less: allowance for doubtful accounts | -7,083 | -11,061 | -5,635 | -3,906 |
Total accounts receivable, net | $330,077 | $349,218 |
Accounts_Receivable_Balance_an
Accounts Receivable - Balance and Activity in Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts | ||||||
Allowance for doubtful accounts at January 1 | $11,061 | $5,635 | $3,906 | |||
Additions charged to costs and expenses | 818 | [1] | 5,497 | [1] | 1,735 | [1] |
Deductions | -4,796 | [2] | -71 | [2] | -6 | [2] |
Allowance for doubtful accounts at December 31 | $7,083 | $11,061 | $5,635 | |||
[1] | Includes $2.7 million of allowance for receivables deemed uncollectible at December 31, 2013 primarily due to bankruptcy status of customers. | |||||
[2] | Deductions represent write-off of receivables and collections of amounts for which an allowance had previously been established. Year ended December 31, 2014 represents write-off of allowance related to the sale of the Gulf Properties. |
Accounts_Receivable_Balance_an1
Accounts Receivable - Balance and Activity in Allowance for Doubtful Accounts (Additional Information) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Additions charged to costs and expenses | $818 | [1] | $5,497 | [1] | $1,735 | [1] |
Customer in Bankruptcy | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Additions charged to costs and expenses | $2,700 | |||||
[1] | Includes $2.7 million of allowance for receivables deemed uncollectible at December 31, 2013 primarily due to bankruptcy status of customers. |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Oil and natural gas properties | |||||
Proved | $11,707,147 | [1] | $10,972,816 | [1] | $12,262,921 |
Unproved | 290,596 | 531,606 | 865,863 | ||
Total oil and natural gas properties | 11,997,743 | 11,504,422 | 13,128,784 | ||
Less: accumulated depreciation, depletion and impairment | -6,359,149 | -5,762,969 | -5,231,182 | ||
Net oil and natural gas properties capitalized costs | 5,638,594 | 5,741,453 | 7,897,602 | ||
Land | 16,300 | 18,423 | |||
Non-oil and natural gas equipment | 602,392 | [2] | 600,603 | [2] | |
Buildings and structures | 263,191 | [3] | 233,405 | [3] | |
Total | 881,883 | 852,431 | |||
Less accumulated depreciation and amortization | -305,420 | -286,209 | |||
Other property, plant and equipment, net | 576,463 | 566,222 | |||
Total property, plant and equipment, net | $6,215,057 | $6,307,675 | |||
[1] | Includes cumulative capitalized interest of approximately $38.1 million and $23.4 million at December 31, 2014 and 2013, respectively. | ||||
[2] | Includes cumulative capitalized interest of approximately $4.3 million at both December 31, 2014 and 2013. | ||||
[3] | Includes cumulative capitalized interest of approximately $17.1 million and $12.0 million at December 31, 2014 and 2013, respectively. |
Property_Plant_and_Equipment_A
Property, Plant and Equipment (Additional Information) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Oil and gas proved properties | ||
Property, Plant and Equipment [Line Items] | ||
Cumulative capitalized interest | $38.10 | $23.40 |
Non-oil and natural gas equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cumulative capitalized interest | 4.3 | 4.3 |
Building and structures | ||
Property, Plant and Equipment [Line Items] | ||
Cumulative capitalized interest | $17.10 | $12 |
Property_Plant_and_Equipment_C
Property, Plant and Equipment - Capitalized Costs of Unproved Properties Excluded from Amortization (Details) (USD $) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Property, Plant and Equipment [Abstract] | ||||||||
Property acquisition, cumulative | $247,485 | $62,456 | ||||||
Property acquisition | 64,776 | 21,723 | 98,530 | |||||
Exploration, cumulative | 96,752 | [1] | 6,898 | [1] | ||||
Exploration | 48,614 | [1] | 36,938 | [1] | 4,302 | [1] | ||
Total costs incurred, cumulative | 344,237 | 69,354 | ||||||
Total costs incurred | $113,390 | $58,661 | $102,832 | |||||
[1] | Includes $53.6 million of pipe inventory costs incurred ($21.3 million in 2014, $30.7 million in 2013 and $1.6 million in 2012 and prior years). |
Property_Plant_and_Equipment_C1
Property, Plant and Equipment - Capitalized Costs of Unproved Properties Excluded from Amortization (Additional Information) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Pipe inventory costs, cumulative | $53.60 | ||
Pipe inventory costs, period costs | $21.30 | $30.70 | $1.60 |
Property_Plant_and_Equipment_N
Property, Plant and Equipment - Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Cumulative full cost ceiling limitation impairment charges | $3,700,000,000 | $3,500,000,000 | |
Full cost ceiling impairments | 164,800,000 | 0 | 0 |
Average depreciation and depletion rate (per Boe) | 15 | 16.81 | 16.93 |
Proved oil and natural gas properties, cost incurred in excess of development agreement | 180,000,000 | 180,000,000 | |
Expected completion of evaluation activities on majority of unproved properties | 10 years | ||
Repsol | |||
Property, Plant and Equipment [Line Items] | |||
Drilling carry received or billed | 205,600,000 | ||
Atinum and Repsol | |||
Property, Plant and Equipment [Line Items] | |||
Drilling carry received or billed | 408,000,000 | 367,600,000 | |
Repsol | |||
Property, Plant and Equipment [Line Items] | |||
Minimum net wells | 484 | ||
Net wells | 340 | ||
Potential Drilling Carry Costs | Repsol | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Future drilling and completion costs | $75,000,000 |
Impairment_Narrative_Details
Impairment - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | |
Schedule of Impaired Long-Lived Assets Held and Used and Intangible Assets [Line Items] | |||||
Full cost ceiling impairments | $164,800,000 | $0 | $0 | ||
Asset impairment charges | 192,768,000 | 26,280,000 | 316,004,000 | ||
Goodwill impairment loss | 235,400,000 | ||||
Drilling and Oilfield Services Assets - Permian Region | |||||
Schedule of Impaired Long-Lived Assets Held and Used and Intangible Assets [Line Items] | |||||
Asset impairment charges | 24,300,000 | ||||
Drilling Assets | |||||
Schedule of Impaired Long-Lived Assets Held and Used and Intangible Assets [Line Items] | |||||
Asset impairment charges | 3,100,000 | 11,100,000 | 10,600,000 | ||
Drilling Rigs | |||||
Schedule of Impaired Long-Lived Assets Held and Used and Intangible Assets [Line Items] | |||||
Asset impairment charges | 0 | ||||
Gas Treating Plants and other Midstream Assets | |||||
Schedule of Impaired Long-Lived Assets Held and Used and Intangible Assets [Line Items] | |||||
Asset impairment charges | 600,000 | 12,200,000 | 2,100,000 | 10,000,000 | |
Gas Treating Plants and CO2 Compression Facilities | |||||
Schedule of Impaired Long-Lived Assets Held and Used and Intangible Assets [Line Items] | |||||
Asset impairment charges | 79,300,000 | ||||
Corporate Asset | |||||
Schedule of Impaired Long-Lived Assets Held and Used and Intangible Assets [Line Items] | |||||
Asset impairment charges | 2,900,000 | 2,900,000 | |||
Software Costs | |||||
Schedule of Impaired Long-Lived Assets Held and Used and Intangible Assets [Line Items] | |||||
Asset impairment charges | 1,300,000 | ||||
Gulf Properties | |||||
Schedule of Impaired Long-Lived Assets Held and Used and Intangible Assets [Line Items] | |||||
Full cost ceiling impairments | $164,800,000 |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Debt issuance costs, net of amortization | $56,445 | [1] | $61,923 | [1] |
Deferred tax asset | 95,843 | 0 | ||
Restricted deposits | 0 | [2] | 27,955 | [2] |
Notes receivable on asset retirement obligations | 0 | [2] | 11,640 | [2] |
Investments | 11,106 | 13,708 | ||
Other | 1,853 | 5,945 | ||
Total other assets | $165,247 | $121,171 | ||
[1] | Unamortized debt issuance costs associated with the 9.875% Senior Notes due 2016 and 8.0% Senior Notes due 2018 were written off in March 2013 when the Company redeemed these notes. See Note 12 for discussion of the senior note redemptions. | |||
[2] | Assets at December 31, 2013 were included in the sale of the Gulf Properties in February 2014, as discussed in Note 3. |
Accounts_Payable_and_Accrued_E2
Accounts Payable and Accrued Expenses (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accounts payable and other accrued expenses | $392,500 | $341,008 |
Accrued interest | 79,704 | 80,740 |
Production payable | 120,573 | 127,647 |
Drilling advances | 33,195 | 184,203 |
Payroll and benefits | 44,496 | 59,785 |
Convertible perpetual preferred stock dividends | 11,072 | 16,572 |
Related party | 1,852 | 2,533 |
Total accounts payable and accrued expenses | $683,392 | $812,488 |
Construction_Contract_Narrativ
Construction Contract - Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Construction Contracts [Line Items] | |||
Construction contract revenue | $0 | $23,349,000 | $0 |
Construction contract costs | 0 | 23,349,000 | 0 |
Transmission Expansion Projects | |||
Construction Contracts [Line Items] | |||
Construction contract price | 23,300,000 | ||
Construction contract revenue | 23,300,000 | ||
Construction contract costs | $23,300,000 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Senior credit facility | $0 | $0 | ||
Debt | 3,195,436 | 3,194,907 | ||
Less: current maturities of long-term debt | 0 | 0 | ||
Long-term debt | 3,195,436 | 3,194,907 | ||
8.75% Senior Notes due 2020, net of $4,598 and $5,264 discount, respectively | ||||
Debt Instrument [Line Items] | ||||
Debt | 445,402 | [1] | 444,736 | [1] |
7.5% Senior Notes due 2021, including a premium of $3,486 and $3,922, respectively | ||||
Debt Instrument [Line Items] | ||||
Debt | 1,178,486 | [2] | 1,178,922 | [2] |
8.125% Senior Notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt | 750,000 | 750,000 | ||
7.5% Senior Notes due 2023, net of $3,452 and $3,751 discount, respectively | ||||
Debt Instrument [Line Items] | ||||
Debt | $821,548 | [3] | $821,249 | [3] |
[1] | Carrying value is net of $4,598 and $5,264 discount at December 31, 2014 and 2013, respectively. | |||
[2] | Carrying value includes a premium, applicable to notes issued in August 2012, of $3,486 and $3,922 at December 31, 2014 and 2013, respectively. | |||
[3] | Carrying value is net of $3,452 and $3,751 discount at December 31, 2014 and 2013, respectively. |
LongTerm_Debt_Additional_Infor
Long-Term Debt (Additional Information) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2012 | Apr. 30, 2012 |
8.75% Senior Notes due 2020, net of $4,598 and $5,264 discount, respectively | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | 2020 | 2020 | ||
Long-term debt, fixed interest rate | 8.75% | 8.75% | ||
Long term debt, discount | $4,598 | $5,264 | ||
7.5% Senior Notes due 2021, including a premium of $3,486 and $3,922, respectively | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | 2021 | 2021 | ||
Long-term debt, fixed interest rate | 7.50% | 7.50% | 7.50% | |
Long term debt, premium | 3,486 | 3,922 | ||
8.125% Senior Notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | 2022 | 2022 | ||
Long-term debt, fixed interest rate | 8.13% | 8.13% | 8.13% | |
7.5% Senior Notes due 2023, net of $3,452 and $3,751 discount, respectively | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | 2023 | 2023 | ||
Long-term debt, fixed interest rate | 7.50% | 7.50% | 7.50% | |
Long term debt, discount | $3,452 | $3,751 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 23, 2015 | Aug. 31, 2012 | Apr. 30, 2012 | Sep. 30, 2012 | Feb. 20, 2015 | Oct. 31, 2014 | Oct. 30, 2014 | Mar. 31, 2013 | |
Debt Instrument [Line Items] | |||||||||||
Senior credit facility outstanding amount | $0 | $0 | |||||||||
Premium paid to purchase notes and unamortized debt issuance cost in relation to the notes | 0 | -82,005,000 | -3,075,000 | ||||||||
Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior credit facility outstanding amount | 100,000,000 | ||||||||||
Additional aggregate principal indebtedness permitted (less than) | 500,000,000 | ||||||||||
Reduction in borrowing base for every $1 of junior lien debt incurred | 0.25 | ||||||||||
Senior credit facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net debt to EBITDA, ratio maximum | 4.5 | ||||||||||
Current assets to current liabilities, ratio minimum | 1 | ||||||||||
Long-term debt, debt to EBITDA ratio, total funded debt determination | 10,000,000 | ||||||||||
Debt maturity date | Oct-19 | ||||||||||
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% | ||||||||||
Line of credit facility, maximum amount outstanding during period | 0 | 0 | |||||||||
Line of credit facility maximum borrowings capacity | 1,200,000,000 | 775,000,000 | |||||||||
Line of credit facility, amended borrowing capacity | 900,000,000 | ||||||||||
Line of credit facility, letters of credit outstanding | 11,600,000 | ||||||||||
Senior credit facility | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.38% | ||||||||||
Senior credit facility | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||||||||||
Senior credit facility | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 1.50% | ||||||||||
Senior credit facility | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 2.50% | ||||||||||
Senior credit facility | Federal Funds | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 0.50% | ||||||||||
Senior credit facility | One-Month Eurodollar Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 1.00% | ||||||||||
Senior credit facility | Base Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 0.50% | ||||||||||
Senior credit facility | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 1.50% | ||||||||||
Senior credit facility | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Covenant, Ratio of secured debt to EBITDA, maximum | 2.25 | ||||||||||
Covenant, Ratio of EBITDA to interest expense at Mar 2015 | 2 | ||||||||||
Covenant, Ratio of EBITDA to interest expense at Jun 2015 | 2 | ||||||||||
Covenant, Ratio of EBITDA to interest expense at Sep 2015 | 1.75 | ||||||||||
Covenant, Ratio of EBITDA to interest expense at Dec 2015 | 1.5 | ||||||||||
Covenant, Ratio of EBITDA to interest expense at Mar 2016 | 1.5 | ||||||||||
Covenant, Ratio of EBITDA to interest expense at Jun 2016 | 1.5 | ||||||||||
Covenant, Ratio of EBITDA to interest expense at Sep 2016 | 1.5 | ||||||||||
Covenant, Ratio of EBITDA to interest expense at Dec 2016 | 2 | ||||||||||
Covenant, Ratio of total net debt to EBITDA at Jun 2016 | 6.25 | ||||||||||
Covenant, Ratio of total net debt to EBITDA at Sep 2016 | 6 | ||||||||||
Covenant, Ratio of total net debt to EBITDA at Dec 2016 | 6 | ||||||||||
Covenant, Ratio of total net debt to EBITDA at Mar 2017 | 5.5 | ||||||||||
Covenant, Ratio of total net debt to EBITDA at Jun 2017 | 5.5 | ||||||||||
Covenant, Ratio of total net debt to EBITDA at Sep 2017 | 5 | ||||||||||
Covenant, Ratio of total net debt to EBITDA at Dec 2017 | 5 | ||||||||||
Covenant, Ratio of total net debt to EBITDA at Mar 2018 | 4.5 | ||||||||||
Line of credit facility maximum borrowings capacity | 900,000,000 | ||||||||||
Line of credit facility, letters of credit outstanding | 11,300,000 | ||||||||||
Senior credit facility | Subsequent Event | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 1.75% | ||||||||||
Senior credit facility | Subsequent Event | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 2.75% | ||||||||||
Senior credit facility | Subsequent Event | Base Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 0.75% | ||||||||||
Senior credit facility | Subsequent Event | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 1.75% | ||||||||||
Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt maturities, repayments of principal in the next twelve months | 0 | ||||||||||
Long-term debt maturities, in years two and three | 0 | ||||||||||
Long-term debt maturities, in years four and five | 0 | ||||||||||
Senior Notes Outstanding | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance cost, cumulative | 70,200,000 | ||||||||||
9.875% Senior Notes due 2016 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt tender offer, aggregate principal amount | 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 [Line Items] | |||||||||||
Debt tender offer, aggregate principal amount | 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 due 2016 and 8.0% Senior Notes due 2018 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Premium paid to purchase notes and unamortized debt issuance cost in relation to the notes | -82,000,000 | ||||||||||
2012 Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance cost, cumulative | 41,000,000 | ||||||||||
Proceeds from debt, net of issuance costs | 1,100,000,000 | ||||||||||
8.125% Senior Notes due 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt maturity date | 2022 | 2022 | |||||||||
Long-term debt, fixed interest rate | 8.13% | 8.13% | 8.13% | ||||||||
Debt instrument, face amount | 750,000,000 | ||||||||||
Proceeds from debt, net of issuance costs | 730,100,000 | ||||||||||
7.5% Senior Notes due 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt maturity date | 2023 | 2023 | |||||||||
Long-term debt, fixed interest rate | 7.50% | 7.50% | 7.50% | ||||||||
Debt instrument, face amount | 825,000,000 | ||||||||||
Selling price of Senior Notes issued | 99.50% | ||||||||||
7.5% Senior Notes due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt maturity date | 2021 | 2021 | |||||||||
Long-term debt, fixed interest rate | 7.50% | 7.50% | 7.50% | ||||||||
Debt instrument, face amount | 275,000,000 | ||||||||||
Selling price of Senior Notes issued | 101.63% | ||||||||||
Senior Floating Rate Notes due 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, basis spread on variable rate | 3.63% | ||||||||||
Premium paid to purchase notes and unamortized debt issuance cost in relation to the notes | -3,100,000 | ||||||||||
Percentage of aggregate senior notes outstanding principal amount purchased | 100.00% | ||||||||||
Debt instrument, repurchased face amount | $350,000,000 |
Derivatives_Fair_Value_of_Deri
Derivatives - Fair Value of Derivative Contracts (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $338,417 | $50,274 |
Derivative liabilities | 0 | -78,200 |
Total net derivative contracts | 338,417 | -27,926 |
Current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 291,414 | 18,368 |
Noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 47,003 | 31,906 |
Current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | -39,856 |
Noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | -38,344 |
Oil price swaps | Current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 204,072 | 15,887 |
Oil price swaps | Noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 36,288 | 19,376 |
Oil price swaps | Current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | -38,396 |
Oil price swaps | Noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | -38,344 |
Natural gas price swaps | Current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 29,648 | 1,598 |
Natural gas price swaps | Current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | -1,460 |
Natural gas basis swaps | Current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 350 | 0 |
Oil collars—three way | Current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 56,289 | 706 |
Oil collars—three way | Noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 10,715 | 12,189 |
Natural gas collars | Current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1,055 | 177 |
Natural gas collars | Noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $0 | $341 |
Derivatives_Offsetting_Assets_
Derivatives - Offsetting Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Derivative assets, gross amounts | $338,417 | $50,274 |
Derivative assets, gross amounts offset | 0 | -23,369 |
Derivative assets, current | 291,414 | 12,779 |
Derivative assets, noncurrent | 47,003 | 14,126 |
Derivative assets, amounts net of offset | 338,417 | 26,905 |
Derivative assets, financial collateral | 0 | 0 |
Derivative assets, net amount | 338,417 | 26,905 |
LIABILITIES | ||
Derivative liabilities, gross amounts | 0 | 78,200 |
Derivative liabilities, gross amounts offset | 0 | -23,369 |
Derivative liabilities, current | 0 | 34,267 |
Derivative liabilities, noncurrent | 0 | 20,564 |
Derivative liabilities, amount 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 | 291,414 | 18,368 |
Derivative assets, gross amounts offset | 0 | -5,589 |
Derivative assets, financial collateral | 0 | 0 |
Derivative assets, net amount | 291,414 | 12,779 |
Noncurrent assets | ||
ASSETS | ||
Derivative assets, gross amounts | 47,003 | 31,906 |
Derivative assets, gross amounts offset | 0 | -17,780 |
Derivative assets, financial collateral | 0 | 0 |
Derivative assets, net amount | 47,003 | 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) | 12 Months Ended |
Dec. 31, 2014 | |
MBbls | |
Oil price swaps | January 2015 - December 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 5,588 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 92.44 |
Oil price swaps | January 2016 - December 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 1,464 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 88.36 |
Natural gas price swaps | January 2015 - December 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 19,900 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | 4.51 |
Natural gas basis swaps | January 2015 - December 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 21,900 |
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf) | -0.27 |
Oil collars—three way | January 2015 - December 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 4,576 |
Oil collars—three way | January 2016 - December 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 2,556 |
Oil collars—three way | Sold Put | January 2015 - December 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Collar range, minimum | 76.56 |
Oil collars—three way | Sold Put | January 2016 - December 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Collar range, minimum | 83.14 |
Oil collars—three way | Purchased Put | January 2015 - December 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Collar range, minimum | 90.28 |
Oil collars—three way | Purchased Put | January 2016 - December 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Collar range, minimum | 90 |
Oil collars—three way | Sold Call | January 2015 - December 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Collar range, maximum | 103.48 |
Oil collars—three way | Sold Call | January 2016 - December 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Collar range, maximum | 100.85 |
Natural gas collars | January 2015 - December 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional (Oil in MBbl/Natural Gas in MMcf) | 1,010 |
Collar range, minimum | 4 |
Collar range, maximum | 8.55 |
Derivatives_Narrative_Details
Derivatives - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Apr. 30, 2013 | |
Institution | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Number of counterparties to open derivative contracts | 9 | |||||||||||
(Gain) loss on derivative contracts | ($334,011,000) | $47,123,000 | ($241,419,000) | |||||||||
Interest expense | 244,109,000 | 270,234,000 | 303,349,000 | |||||||||
Commodity Derivatives | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
(Gain) loss on derivative contracts | -334,000,000 | 47,100,000 | -241,400,000 | -329,200,000 | -132,600,000 | 85,300,000 | 42,500,000 | -22,900,000 | 132,800,000 | -103,700,000 | 40,900,000 | |
Commodity Derivatives | Cash | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
(Gain) loss on derivative contracts | 32,300,000 | -800,000 | -91,400,000 | |||||||||
Interest rate swaps | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Interest expense | 10,000 | 1,200,000 | ||||||||||
Interest rate swaps | Cash | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Interest expense | 2,400,000 | 9,200,000 | ||||||||||
Derivative Contracts Early Settlements | Commodity Derivatives | Cash | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
(Gain) loss on derivative contracts | 69,600,000 | 29,600,000 | ||||||||||
Amendment | Commodity Derivatives | Noncash | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
(Gain) loss on derivative contracts | 117,100,000 | |||||||||||
Senior Floating Rate Notes due 2014 | Fixed To Floating Interest Rate Swap Through April 1st 2013 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Derivative, maturity date | 1-Apr-13 | |||||||||||
Derivative liability, notional amount | $350,000,000 | |||||||||||
Derivative, fixed interest rate | 6.69% |
Asset_Retirement_Obligations_R
Asset Retirement Obligations - Reconciliation of Beginning and Ending Aggregate Carrying Amounts of Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Asset Retirement Obligation, Roll Forward Analysis | |||||
Asset retirement obligations at January 1 | $424,117 | $498,410 | $128,116 | ||
Liability incurred upon acquiring and drilling wells | 4,968 | 5,078 | 7,479 | ||
Liability assumed in acquisition | 0 | 0 | 371,365 | [1] | |
Revisions in estimated cash flows | -5,848 | -3,077 | 34,654 | ||
Liability settled or disposed in current period | -377,927 | [2] | -113,071 | -72,200 | |
Accretion | 9,092 | 36,777 | 28,996 | ||
Asset retirement obligations at December 31 | 54,402 | 424,117 | 498,410 | ||
Less: current portion | 0 | 87,063 | 118,504 | ||
Asset retirement obligations, net of current | $54,402 | $337,054 | $379,906 | ||
[1] | Liability assumed in acquisition represents asset retirement obligations assumed in the acquisition of oil and natural gas properties in the Gulf of Mexico during the second quarter of 2012. | ||||
[2] | Liability settled or disposed in the current period includes $366.0 million associated with the Gulf Properties sold in February 2014, as discussed in Note 3. |
Asset_Retirement_Obligations_R1
Asset Retirement Obligations - Reconciliation of Beginning and Ending Aggregate Carrying Amounts of Asset Retirement Obligations (Additional Information) (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | |
Reconciliation Of Changes In Asset Retirement Obligations [Line Items] | |||||
Asset retirement obligation, liabilities settled | ($377,927) | [1] | ($113,071) | ($72,200) | |
Gulf of Mexico Properties | |||||
Reconciliation Of Changes In Asset Retirement Obligations [Line Items] | |||||
Asset retirement obligation, liabilities settled | ($366,000) | ||||
[1] | Liability settled or disposed in the current period includes $366.0 million associated with the Gulf Properties sold in February 2014, as discussed in Note 3. |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Lease Payments under Noncancelable Operating Leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Years ending December 31 | |
2015 | $1,087 |
2016 | 982 |
2017 | 759 |
2018 | 572 |
2019 | 0 |
Thereafter | 0 |
Total future obligation | $3,400 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Oil and Natural Gas Transportation and Throughput Agreements (Details) (Transportation and Throughput Agreements, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Transportation and Throughput Agreements | |
Years ending December 31 | |
2015 | $12,467 |
2016 | 12,498 |
2017 | 12,467 |
2018 | 12,899 |
2019 | 8,156 |
Thereafter | 12,672 |
Total future obligation | $71,159 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Natural Gas Gathering Agreement (Details) (Gas Gathering Agreement, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Gas Gathering Agreement | |
Years ending December 31 | |
2015 | $42,334 |
2016 | 42,272 |
2017 | 41,991 |
2018 | 41,825 |
2019 | 41,703 |
Thereafter | 82,594 |
Total future obligation | $292,719 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Total rental expense under operating leases | $1,700,000 | $3,600,000 | $2,600,000 |
Mississippian Trust II | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Development period deadline under development agreement latest date | 31-Dec-16 | ||
Estimated remaining drilling obligation | 8,800,000 | ||
Gas Gathering Agreement | Pinon Gathering Company LLC | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Agreement expiration date | 30-Jun-29 | ||
Treating Agreement | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Contract agreement, term | 30 years | ||
Minimum delivery required (in Bcf) | 3,200 | ||
Initial shortfall price, per Mcf | 0.25 | ||
Delivery made (in Bcf) | 54.7 | ||
Delivery shortfall (in Bcf) | 300.1 | ||
Cumulative shortfall accrued | 75,000,000 | ||
Shortfall price, per Mcf, final year of agreement | 0.7 | ||
End of contract shortfall | 210,100,000 | ||
Annual minimum delivery requirement shortfall, 2012 to 2019, assuming no deliveries subsequent to balance sheet date | 292,600,000 | ||
Delivery requirement reduction payment | 291,400,000 | ||
Treating Agreement | Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Range of projected shortfall in one year | 31,000,000 | ||
Treating Agreement | Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Range of projected shortfall in one year | 38,000,000 | ||
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 [Line Items] | |||
Plaintiffs investment under participation agreement | 16,000,000 | ||
Wesley West Minerals, Ltd and Longfellow Ranch Partners, LP | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Loss contingency, damages sought, value | 45,500,000 | ||
General Land Office of the State of Texas | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Loss contingency, damages sought, value | 13,000,000 | ||
Rig Commitments | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Future commitments, 2015 | 30,000,000 | ||
Future commitments, 2016 | $1,700,000 |
Equity_Preferred_Stock_Details
Equity - Preferred Stock (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Stockholders Equity Note [Line Items] | ||
Shares authorized (in shares) | 50,000,000 | 50,000,000 |
8.5% Convertible perpetual preferred stock | ||
Stockholders Equity Note [Line Items] | ||
Shares oustanding at end of period (in shares) | 2,650,000 | 2,650,000 |
6.0% Convertible perpetual preferred stock | ||
Stockholders Equity Note [Line Items] | ||
Shares oustanding at end of period (in shares) | 0 | 2,000,000 |
7.0% Convertible perpetual preferred stock | ||
Stockholders Equity Note [Line Items] | ||
Shares oustanding at end of period (in shares) | 3,000,000 | 3,000,000 |
Equity_Preferred_Stock_Terms_D
Equity - Preferred Stock Terms (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
8.5% Convertible perpetual preferred stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, dividend rate, percentage | 8.50% | 8.50% | 8.50% | |
Liquidation preference per share | $100 | |||
Annual dividend per share | $8.50 | |||
Conversion rate per share to common stock | 12.4805 | |||
Conversion date to common stock at Company's option(1) | 20-Feb-14 | [1] | ||
7.0% Convertible perpetual preferred stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, dividend rate, percentage | 7.00% | 7.00% | 7.00% | |
Liquidation preference per share | $100 | |||
Annual dividend per share | $7 | |||
Conversion rate per share to common stock | 12.8791 | |||
Conversion date to common stock at Company's option(1) | 20-Nov-15 | [1] | ||
[1] | Conversion is dependent on certain factors, including the Company’s stock trading above specified prices for a set period. |
Equity_Preferred_Stock_Dividen
Equity - Preferred Stock Dividends (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Class of Stock [Line Items] | |||
Dividends Paid | $38,953 | $38,953 | $38,953 |
Dividends Unpaid | 11,072 | 16,572 | 16,572 |
Total | 50,025 | 55,525 | 55,525 |
8.5% Convertible perpetual preferred stock | |||
Class of Stock [Line Items] | |||
Dividends Paid | 14,078 | 14,078 | 14,078 |
Dividends Unpaid | 8,447 | 8,447 | 8,447 |
Total | 22,525 | 22,525 | 22,525 |
6.0% Convertible perpetual preferred stock | |||
Class of Stock [Line Items] | |||
Dividends Paid | 6,500 | 6,500 | 6,500 |
Dividends Unpaid | 0 | 5,500 | 5,500 |
Total | 6,500 | 12,000 | 12,000 |
7.0% Convertible perpetual preferred stock | |||
Class of Stock [Line Items] | |||
Dividends Paid | 18,375 | 18,375 | 18,375 |
Dividends Unpaid | 2,625 | 2,625 | 2,625 |
Total | $21,000 | $21,000 | $21,000 |
Equity_Common_Stock_Details
Equity - Common Stock (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Equity [Abstract] | ||
Shares authorized (in shares) | 800,000,000 | 800,000,000 |
Shares outstanding at end of period (in shares) | 484,819,000 | 490,290,000 |
Shares held in treasury (in shares) | 1,113,000 | 1,319,000 |
Equity_Treasury_Stock_Activity
Equity - Treasury Stock Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity, Class of Treasury Stock [Line Items] | |||
Value of shares withheld for taxes | $6,373 | $30,126 | $11,312 |
Value of shares retired | 0 | 0 | 0 |
Treasury Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares withheld for taxes | 1,034 | 5,679 | 1,547 |
Value of shares withheld for taxes | 6,373 | 30,126 | 11,312 |
Number of shares retired | 1,034 | 5,679 | 1,547 |
Value of shares retired | $6,373 | $30,126 | $11,312 |
Equity_Restricted_Stock_Activi
Equity - Restricted Stock Activity (Details) (Restricted Stock, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock | |||
Restricted Shares (shares) | |||
Unvested outstanding at January 1 | 7,643,000 | 15,328,000 | 13,386,000 |
Granted | 6,367,000 | 7,462,000 | 7,604,000 |
Vested | -3,432,000 | -13,395,000 | -4,394,000 |
Forfeited / Canceled | -2,022,000 | -1,752,000 | -1,268,000 |
Unvested outstanding at December 31 | 8,556,000 | 7,643,000 | 15,328,000 |
Weighted-Average Grant Date Fair Value (usd per share) | |||
Unvested restricted shares outstanding, beginning of year | $6.92 | $8.07 | $9.34 |
Granted | $6.17 | $6.32 | $7.46 |
Vested | $7.04 | $7.85 | $10.73 |
Forfeited / Canceled | $6.60 | $7.33 | $8.54 |
Unvested restricted shares outstanding, end of year | $6.39 | $6.92 | $8.07 |
Equity_Narrative_Details
Equity - Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||
Nov. 09, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 17, 2012 | Nov. 29, 2012 | ||
Right | |||||||
Stockholders Equity Note [Line Items] | |||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |||||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | |||||
Preferred stock, shares designated | 5,700,000 | 7,700,000 | |||||
Shares repurchased then retired during period (in shares) | 27,411,000 | ||||||
Shares repurchased then retired during period, value | $111,300,000 | ||||||
Broker fees and commission for shares repurchased, then retired | 500,000 | ||||||
Stockholder settlement gross | 5,000,000 | ||||||
Shareholder receivable, number of annual installments | 4 | ||||||
Shareholder receivable, period of repayment | 4 years | ||||||
Additional paid-in capital—stockholder receivable | -2,500,000 | -3,750,000 | |||||
Restricted Stock | |||||||
Stockholders Equity Note [Line Items] | |||||||
Incentive compensation plans, vesting period (in years) | 4 years | ||||||
Stock-based compensation | 17,600,000 | 82,800,000 | 39,700,000 | ||||
Stock based compensation, capitalized | 6,000,000 | 5,500,000 | 7,500,000 | ||||
Total fair value of awards vested during the period | 21,400,000 | 71,600,000 | 32,100,000 | ||||
Unrecognized compensation cost related to unvested awards | 39,300,000 | ||||||
Unrecognized compensation cost related to unvested awards, weighted average period of recognition | 2 years 3 months 0 days | ||||||
Shares available for grant under existing incentive compensation plans | 6,200,000 | ||||||
Restricted Stock | Separation of Former Executives | |||||||
Stockholders Equity Note [Line Items] | |||||||
Stock-based compensation | 48,500,000 | ||||||
Dynamic Acquisition | |||||||
Stockholders Equity Note [Line Items] | |||||||
Issuance of common stock in acquisition (in shares) | 73,962,000 | [1] | |||||
2014 Share Repurchase Program | |||||||
Stockholders Equity Note [Line Items] | |||||||
Share repurchase program, maximum authorized amount | $200,000,000 | ||||||
6.0% Convertible perpetual preferred stock | |||||||
Stockholders Equity Note [Line Items] | |||||||
Preferred stock, dividend rate, percentage | 6.00% | 6.00% | 6.00% | ||||
Shares of common stock issued related to the conversion of 6% preferred stock (in shares) | 18,400,000 | ||||||
Series A Junior Participating Preferred Stock | Stockholder Rights Plan | |||||||
Stockholders Equity Note [Line Items] | |||||||
Number of Rights issued per common share | 1 | ||||||
Right expiration date | 29-Apr-13 | ||||||
[1] | Consideration paid by the Company consisted of 74 million shares of SandRidge common stock and cash of approximately $680.0 million. The value of the stock consideration is based upon the closing price of $7.33 per share of SandRidge common stock on April 17, 2012, which was the closing date of the Dynamic Acquisition. Under the acquisition method of accounting, the purchase price is determined based on the total cash paid and the fair value of SandRidge common stock issued on the acquisition date. |
Incentive_Retirement_and_Defer2
Incentive, Retirement and Deferred Compensation Plans - Performance Unit Fair Value Assumptions (Details) (Performance Units, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Units | ||
Employee Compensation Plans [Line Items] | ||
Expected price volatility range, minimum | 26.60% | 27.00% |
Expected price volatility range, maximum | 86.60% | 44.80% |
Weighted-average risk-free interest rate | 0.50% | 0.40% |
Weighted-average fair value per unit | $13.85 | $97.06 |
Incentive_Retirement_and_Defer3
Incentive, Retirement and Deferred Compensation Plans - Performance Unit Activity (Details) (Performance Units) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Unit Activity | ||
Outstanding at January 1 | 31,142 | 0 |
Granted | 47,015 | 31,142 |
Forfeited /canceled | -12,060 | 0 |
Outstanding at December 31 | 66,097 | 31,142 |
Performance Period Ending December 2015 | ||
Performance Unit Activity | ||
Vested | 9,208 | 12,178 |
Unvested | 18,874 | 18,964 |
Performance Period Ending December 2016 | ||
Performance Unit Activity | ||
Vested | 12,671 | 0 |
Unvested | 25,344 | 0 |
Incentive_Retirement_and_Defer4
Incentive, Retirement and Deferred Compensation Plans - Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Performance Units | |||
Employee Compensation Plans [Line Items] | |||
Award, accrued liability | $700,000 | $1,800,000 | |
Stock-based compensation | -1,000,000 | 1,600,000 | |
Stock based compensation, capitalized | -50,000 | 200,000 | |
Total fair value of awards vested during the period | 300,000 | 100,000 | |
Cash payments for performance units during the reporting period | 0 | 0 | |
Unrecognized compensation cost related to unvested awards | 300,000 | ||
Unrecognized compensation cost related to unvested awards, weighted average period of recognition | 1 year 7 months 0 days | ||
Performance Units | Minimum | |||
Employee Compensation Plans [Line Items] | |||
Expected cash settlement per unit if performance exceeds minimum thresholds | $50 | ||
Performance Units | Maximum | |||
Employee Compensation Plans [Line Items] | |||
Expected cash settlement per unit if performance exceeds minimum thresholds | $200 | ||
Final Payments Under Existing Cash Bonus Program | |||
Employee Compensation Plans [Line Items] | |||
Payments to employees | 10,900,000 | ||
Management Annual Incentive Plan | Minimum | |||
Employee Compensation Plans [Line Items] | |||
Incentive plans, payout percentages of target values | 0.00% | ||
Management Annual Incentive Plan | Maximum | |||
Employee Compensation Plans [Line Items] | |||
Incentive plans, payout percentages of target values | 200.00% | ||
Annual Incentive Plan | |||
Employee Compensation Plans [Line Items] | |||
Accrued bonuses | 21,100,000 | ||
Deferred Compensation Plans | |||
Employee Compensation Plans [Line Items] | |||
Retirement plan, employer matching contribution, percent of match | 100.00% | 100.00% | 100.00% |
Retirement plan, cost recognized | 8,700,000 | 11,000,000 | 11,400,000 |
Deferred compensation plan, compensation expense | $2,000,000 | $2,700,000 | $3,500,000 |
Deferred Compensation Plans | Maximum | |||
Employee Compensation Plans [Line Items] | |||
Retirement plan, employer matching contribution, percent of employees' gross pay | 10.00% | 15.00% | 15.00% |
Deferred compensation plan, employer match percentage | 10.00% | 15.00% | 15.00% |
Income_Taxes_Benefit_Provision
Income Taxes - (Benefit) Provision for Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
Federal | ($1,160) | $3,842 | ($72) |
State | -1,133 | 1,842 | -2 |
Current, total | -2,293 | 5,684 | -74 |
Deferred | |||
Federal | 0 | 0 | -97,410 |
State | 0 | 0 | -2,878 |
Deferred, total | 0 | 0 | -100,288 |
Total (benefit) provision | -2,293 | 5,684 | -100,362 |
Parent | |||
Deferred | |||
Total (benefit) provision | -2,576 | 5,376 | -100,666 |
Noncontrolling Interest | |||
Deferred | |||
Total (benefit) provision | $283 | $308 | $304 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Provision (Benefit) for Income Taxes at Statutory Federal Tax Rate to Company's Actual Income Tax Benefit (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation Of Provision Of Income Taxes [Line Items] | |||
Total (benefit) provision | ($2,293) | $5,684 | ($100,362) |
Parent | |||
Reconciliation Of Provision Of Income Taxes [Line Items] | |||
Computed at federal statutory rate | 122,362 | -178,078 | 51,173 |
State taxes, net of federal benefit | 4,145 | -886 | 8,913 |
Non-deductible expenses | 1,895 | 2,589 | 7,247 |
Stock-based compensation | 1,467 | 7,611 | 7,172 |
Net effects of consolidating the non-controlling interests’ tax provisions | -34,614 | -13,901 | -37,047 |
Bargain purchase gain | 0 | 0 | -42,944 |
Impairment of non-deductible goodwill | 0 | 0 | 71,885 |
Change in valuation allowance | -96,769 | 188,599 | -66,429 |
Valuation allowance release | 0 | 0 | -100,288 |
Other | -1,062 | -558 | -348 |
Total (benefit) provision | ($2,576) | $5,376 | ($100,666) |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Deferred tax liabilities | |||||
Investments | $272,902 | [1] | $301,447 | [1] | |
Property, plant and equipment | 364,576 | 180,140 | |||
Derivative contracts | 113,735 | 0 | |||
Total deferred tax liabilities | 751,213 | 481,587 | |||
Deferred tax assets | |||||
Derivative contracts | 0 | 3,692 | |||
Allowance for doubtful accounts | 19,086 | 20,358 | |||
Net operating loss carryforwards | 1,265,458 | 973,675 | |||
Compensation and benefits | 19,867 | 24,895 | |||
Alternative minimum tax credits and other carryforwards | 43,840 | 46,624 | |||
Asset retirement obligations | 21,946 | 147,626 | |||
CO2 under-delivery shortfall penalty | 27,674 | 15,012 | |||
Other | 2,934 | 3,156 | |||
Total deferred tax assets | 1,400,805 | 1,235,038 | |||
Valuation allowance | -649,592 | -753,451 | -557,300 | ||
Net deferred tax liability | $0 | $0 | |||
[1] | Includes the Company’s deferred tax liability resulting from its investment in the Royalty Trusts. See Note 4 for further discussion of the Royalty Trusts. |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits | ||
Unrecognized tax benefit at January 1 | $1,382 | $1,330 |
Changes to unrecognized tax benefits related to the current year | 0 | 262 |
Changes to unrecognized tax benefits related to a prior year | -17 | -210 |
Decreases to unrecognized tax benefits for settlements with tax authorities | -1,288 | 0 |
Unrecognized tax benefit at December 31 | $77 | $1,382 |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | |
Income Taxes [Line Items] | ||||
Valuation allowance | $649,592,000 | $753,451,000 | $557,300,000 | |
Reversal of deferred tax asset valuation allowance | 0 | -3,842,000 | 100,288,000 | |
Alternative minimum tax credits, not subject to expiration | 9,300,000 | |||
Federal net operating loss carryovers, subject to expiration | 3,400,000,000 | 929,400,000 | ||
Unrecognized excess tax benefits from stock based compensation | 17,700,000 | |||
Unrecognized tax benefits | 77,000 | 1,382,000 | 1,330,000 | |
Unrecognized tax benefits, accrued gross interest | -100,000 | -100,000 | 300,000 | |
Unrecognized tax benefits, accrued liability | 100,000 | |||
Dynamic Acquisition | ||||
Income Taxes [Line Items] | ||||
Reversal of deferred tax asset valuation allowance | $100,300,000 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Number of tax years open for state tax audit (in years) | 3 years | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
Number of tax years open for state tax audit (in years) | 5 years | |||
Earliest Tax Year | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards expiration year | 2023 | |||
Latest Tax Year | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards expiration year | 2034 | |||
Domestic Tax Authority | Earliest Tax Year | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2011 | |||
Net Operating Loss And Other Carryforwards | Earliest Tax Year | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2005 | |||
Net Operating Loss And Other Carryforwards | Latest Tax Year | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2010 |
Earnings_Per_Share_Calculation
Earnings Per Share - Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | ||||||||||||||||||||||
Income (Loss), Basic | $254,295 | [1],[2] | $145,957 | [1],[2] | ($46,775) | [1],[2] | ($150,217) | [1],[2] | $29,480 | [3],[4],[5] | ($95,328) | [3],[4],[5] | ($42,389) | [3],[4],[5] | ($501,177) | [3],[4],[5] | $203,260 | ($609,414) | $86,046 | |||
Weighted average shares, basic (in shares) | 479,644 | 481,148 | 453,595 | |||||||||||||||||||
Basic earnings per share (in dollars) | $0.55 | [6] | $0.30 | [6] | ($0.10) | [6] | ($0.31) | [6] | $0.06 | [6] | ($0.20) | [6] | ($0.09) | [6] | ($1.05) | [6] | $0.42 | ($1.27) | $0.19 | |||
Effect of dilutive securities | ||||||||||||||||||||||
Restricted stock (in dollars) | 0 | 0 | [7] | 0 | ||||||||||||||||||
Restricted stock (in shares) | 2,181 | 0 | [7] | 2,420 | ||||||||||||||||||
Convertible preferred stock (in dollars) | 6,500 | [8] | 0 | [9] | 0 | [9] | ||||||||||||||||
Convertible preferred stock (in shares) | 17,918 | [8] | 0 | [9] | 0 | [9] | ||||||||||||||||
Income (Loss), Diluted | $209,760 | ($609,414) | $86,046 | |||||||||||||||||||
Weighted average shares, diluted (in shares) | 499,743 | 481,148 | 456,015 | |||||||||||||||||||
Diluted earnings per share (in dollars) | $0.48 | [6] | $0.27 | [6] | ($0.10) | [6] | ($0.31) | [6] | $0.06 | [6] | ($0.20) | [6] | ($0.09) | [6] | ($1.05) | [6] | $0.42 | ($1.27) | $0.19 | |||
[1] | Includes loss (gain) on derivative contracts of $42.5 million, $85.3 million, $(132.6) million and $(329.2) million for the first, second, third and fourth quarters, respectively. | |||||||||||||||||||||
[2] | Includes a full cost ceiling limitation impairment of $164.8 million in the first quarter and impairments of drilling assets of $3.1 million and $24.3 million in the second and fourth quarters, respectively. | |||||||||||||||||||||
[3] | Includes a $10.6 million impairment of various drilling assets and a $2.9 million impairment of a corporate asset in the second quarter of 2013 and a $2.1 million and $10.0 million impairment of certain midstream inventory, natural gas compressors, gas treating plants and a CO2 compression station in the second and fourth quarters of 2013, respectively. | |||||||||||||||||||||
[4] | Includes loss (gain) on derivative contracts of $40.9 million, $(103.7) million, $132.8 million and $(22.9) million for the first, second, third and fourth quarters, respectively. | |||||||||||||||||||||
[5] | Includes loss on sale of Permian Properties of $398.9 million in the first quarter of 2013. | |||||||||||||||||||||
[6] | (Loss applicable) income available per share to common stockholders for each quarter is computed using the weighted-average number of shares outstanding during the quarter, while earnings per share for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of (loss applicable) income available per share to common stockholders for each of the four quarters may not equal the fiscal year amount. | |||||||||||||||||||||
[7] | Restricted stock awards covering 0.5 million shares were excluded from the computation of loss per share because their effect would have been antidilutive. | |||||||||||||||||||||
[8] | Potential common shares related to the Company’s outstanding 8.5% and 7.0% convertible perpetual preferred stock covering 71.7 million shares for the year ended December 31, 2014 were excluded from the computation of earnings per share because their effect would have been antidilutive under the if-converted method. | |||||||||||||||||||||
[9] | 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 years ended December 31, 2013 and 2012, were excluded from the computation of earnings (loss) per share because their effect would have been antidilutive under the if-converted method. |
Earnings_Per_Share_Calculation1
Earnings Per Share - Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings Per Share (Additional Information) (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 71.7 | 90.1 | 90.1 |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 0.5 | ||
8.5% Convertible perpetual preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred stock, dividend rate, percentage | 8.50% | 8.50% | 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% | 6.00% | 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% | 7.00% | 7.00% |
Related_Party_Transactions_Nar
Related Party Transactions - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Related Party Transaction [Line Items] | ||||
Sales to related parties | $1,600,000 | $12,800,000 | ||
Employee termination benefits | 8,874,000 | 122,505,000 | 0 | |
Former Chairman and CEO Severance | ||||
Related Party Transaction [Line Items] | ||||
Employee termination benefits | 57,900,000 | |||
Severance, compensation cost of accelerated shares | 36,800,000 | |||
Severance, number of accelerated shares | 6.3 | |||
Severance liability | 3,100,000 | |||
Annual Sponsorship Amount | ||||
Related Party Transaction [Line Items] | ||||
Sponsorship fees | 3,300,000 | |||
Annual Lease Obligation to Related Party | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction amounts | 500,000 | |||
Leasehold Improvements under Lease with Related Party | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction amounts | 3,300,000 | |||
Gulf Properties | Employee Severance | ||||
Related Party Transaction [Line Items] | ||||
Employee termination benefits | 8,900,000 | |||
Permian Properties | Employee Severance | ||||
Related Party Transaction [Line Items] | ||||
Employee termination benefits | $23,200,000 |
Subsequent_Events_Royalty_Trus
Subsequent Events - Royalty Trust Distributions (Details) (Subsequent Event, USD $) | Jan. 29, 2015 |
In Thousands, unless otherwise specified | |
Royalty Trusts | |
Subsequent Event [Line Items] | |
Total Distribution | $50,204 |
Amount to be Distributed to Third-Party Unitholders | 43,716 |
Mississippian Trust I | |
Subsequent Event [Line Items] | |
Total Distribution | 8,538 |
Amount to be Distributed to Third-Party Unitholders | 6,242 |
Permian Trust | |
Subsequent Event [Line Items] | |
Total Distribution | 27,681 |
Amount to be Distributed to Third-Party Unitholders | 25,830 |
Mississippian Trust II | |
Subsequent Event [Line Items] | |
Total Distribution | 13,985 |
Amount to be Distributed to Third-Party Unitholders | $11,644 |
Business_Segment_Information_S
Business Segment Information - Summarized Financial Information Concerning Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||
segment | ||||||||||||||||||||||
business_unit | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Reportable segments | 3 | |||||||||||||||||||||
Business units | 3 | |||||||||||||||||||||
Revenues | $346,881,000 | $394,107,000 | $374,714,000 | $443,056,000 | $465,108,000 | $493,603,000 | $512,987,000 | $511,690,000 | $1,558,758,000 | $1,983,388,000 | $1,934,642,000 | |||||||||||
Income (loss) from operations | 373,984,000 | [1],[2] | 256,491,000 | [1],[2] | 42,079,000 | [1],[2] | -82,330,000 | [1],[2] | 122,261,000 | [3],[4],[5] | -2,166,000 | [3],[4],[5] | 78,386,000 | [3],[4],[5] | -367,482,000 | [3],[4],[5] | 590,224,000 | -169,001,000 | 325,196,000 | |||
Interest income (expense), net | -244,109,000 | -270,234,000 | -303,349,000 | |||||||||||||||||||
Bargain purchase gain | 0 | 0 | 122,696,000 | |||||||||||||||||||
Loss on extinguishment of debt | 0 | -82,005,000 | -3,075,000 | |||||||||||||||||||
Other income (expense), net | 3,490,000 | 12,445,000 | 4,741,000 | |||||||||||||||||||
Income (loss) before income taxes | 349,605,000 | -508,795,000 | 146,209,000 | |||||||||||||||||||
Capital expenditures | 1,608,889,000 | [6] | 1,423,883,000 | [6] | 2,223,982,000 | [6] | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 503,023,000 | 666,645,000 | 657,830,000 | |||||||||||||||||||
Total assets | 7,259,225,000 | 7,684,795,000 | 7,259,225,000 | 7,684,795,000 | ||||||||||||||||||
Exploration and Production | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 1,422,900,000 | 1,834,160,000 | 1,774,818,000 | |||||||||||||||||||
Income (loss) from operations | 713,716,000 | [7] | 62,509,000 | [7] | 518,144,000 | [7] | ||||||||||||||||
Interest income (expense), net | 100,000 | 1,168,000 | 1,286,000 | |||||||||||||||||||
Bargain purchase gain | 122,696,000 | |||||||||||||||||||||
Loss on extinguishment of debt | 0 | 0 | ||||||||||||||||||||
Other income (expense), net | -423,000 | 5,487,000 | 1,868,000 | |||||||||||||||||||
Income (loss) before income taxes | 713,393,000 | 69,164,000 | 643,994,000 | |||||||||||||||||||
Capital expenditures | 1,508,100,000 | [6] | 1,319,012,000 | [6] | 2,001,490,000 | [6] | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 443,573,000 | 605,242,000 | 598,101,000 | |||||||||||||||||||
Total assets | 6,273,802,000 | 6,157,225,000 | 6,273,802,000 | 6,157,225,000 | ||||||||||||||||||
Drilling and Oil Field Services | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 76,088,000 | 66,641,000 | 116,633,000 | |||||||||||||||||||
Income (loss) from operations | -37,564,000 | [8] | -40,155,000 | [8] | 11,911,000 | [8] | ||||||||||||||||
Interest income (expense), net | 0 | 0 | 0 | |||||||||||||||||||
Bargain purchase gain | 0 | |||||||||||||||||||||
Loss on extinguishment of debt | 0 | 0 | ||||||||||||||||||||
Other income (expense), net | -541,000 | 0 | 0 | |||||||||||||||||||
Income (loss) before income taxes | -38,105,000 | -40,155,000 | 11,911,000 | |||||||||||||||||||
Capital expenditures | 18,385,000 | [6] | 7,125,000 | [6] | 27,527,000 | [6] | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 29,105,000 | 33,291,000 | 34,677,000 | |||||||||||||||||||
Total assets | 115,083,000 | 158,737,000 | 115,083,000 | 158,737,000 | ||||||||||||||||||
Midstream Services | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 55,394,000 | 79,460,000 | 38,835,000 | |||||||||||||||||||
Income (loss) from operations | -9,094,000 | [9] | -21,567,000 | [9] | -73,027,000 | [9] | ||||||||||||||||
Interest income (expense), net | 0 | -209,000 | -559,000 | |||||||||||||||||||
Bargain purchase gain | 0 | |||||||||||||||||||||
Loss on extinguishment of debt | 0 | 0 | ||||||||||||||||||||
Other income (expense), net | 9,000 | -3,222,000 | 0 | |||||||||||||||||||
Income (loss) before income taxes | -9,085,000 | -24,998,000 | -73,586,000 | |||||||||||||||||||
Capital expenditures | 44,606,000 | [6] | 55,706,000 | [6] | 80,413,000 | [6] | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 10,085,000 | 7,972,000 | 7,188,000 | |||||||||||||||||||
Total assets | 219,691,000 | 188,165,000 | 219,691,000 | 188,165,000 | ||||||||||||||||||
All Other | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 4,376,000 | 3,127,000 | 4,356,000 | |||||||||||||||||||
Income (loss) from operations | -76,834,000 | [10] | -169,788,000 | [10] | -131,832,000 | [10] | ||||||||||||||||
Interest income (expense), net | -244,209,000 | -271,193,000 | -304,076,000 | |||||||||||||||||||
Bargain purchase gain | 0 | |||||||||||||||||||||
Loss on extinguishment of debt | -82,005,000 | -3,075,000 | ||||||||||||||||||||
Other income (expense), net | 4,445,000 | 10,180,000 | 2,873,000 | |||||||||||||||||||
Income (loss) before income taxes | -316,598,000 | -512,806,000 | -436,110,000 | |||||||||||||||||||
Capital expenditures | 37,798,000 | [6] | 42,040,000 | [6] | 114,552,000 | [6] | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 20,260,000 | 20,140,000 | 17,864,000 | |||||||||||||||||||
Total assets | 650,649,000 | 1,180,668,000 | 650,649,000 | 1,180,668,000 | ||||||||||||||||||
Operating Segments | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 1,763,380,000 | 2,205,052,000 | 2,275,581,000 | |||||||||||||||||||
Operating Segments | Exploration and Production | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 1,423,073,000 | 1,834,480,000 | 1,775,221,000 | |||||||||||||||||||
Operating Segments | Drilling and Oil Field Services | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 192,944,000 | 187,456,000 | 379,345,000 | |||||||||||||||||||
Operating Segments | Midstream Services | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 142,987,000 | 179,989,000 | 116,659,000 | |||||||||||||||||||
Operating Segments | All Other | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 4,376,000 | 3,127,000 | 4,356,000 | |||||||||||||||||||
Intersegment Eliminations | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | -204,622,000 | -221,664,000 | -340,939,000 | |||||||||||||||||||
Intersegment Eliminations | Exploration and Production | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | -173,000 | -320,000 | -403,000 | |||||||||||||||||||
Intersegment Eliminations | Drilling and Oil Field Services | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | -116,856,000 | -120,815,000 | -262,712,000 | |||||||||||||||||||
Intersegment Eliminations | Midstream Services | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | -87,593,000 | -100,529,000 | -77,824,000 | |||||||||||||||||||
Intersegment Eliminations | All Other | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | $0 | $0 | $0 | |||||||||||||||||||
[1] | Includes loss (gain) on derivative contracts of $42.5 million, $85.3 million, $(132.6) million and $(329.2) million for the first, second, third and fourth quarters, respectively. | |||||||||||||||||||||
[2] | Includes a full cost ceiling limitation impairment of $164.8 million in the first quarter and impairments of drilling assets of $3.1 million and $24.3 million in the second and fourth quarters, respectively. | |||||||||||||||||||||
[3] | Includes a $10.6 million impairment of various drilling assets and a $2.9 million impairment of a corporate asset in the second quarter of 2013 and a $2.1 million and $10.0 million impairment of certain midstream inventory, natural gas compressors, gas treating plants and a CO2 compression station in the second and fourth quarters of 2013, respectively. | |||||||||||||||||||||
[4] | Includes loss (gain) on derivative contracts of $40.9 million, $(103.7) million, $132.8 million and $(22.9) million for the first, second, third and fourth quarters, respectively. | |||||||||||||||||||||
[5] | Includes loss on sale of Permian Properties of $398.9 million in the first quarter of 2013. | |||||||||||||||||||||
[6] | On an accrual basis and exclusive of acquisitions. | |||||||||||||||||||||
[7] | Income (loss) from operations includes a full cost ceiling impairment of $164.8 million for the year ended December 31, 2014, a loss on the sale of the Permian Properties of $398.9 million for the year ended December 31, 2013, an impairment of the Company’s goodwill of $235.4 million for the year ended December 31, 2012 and the Company’s (gain) loss on derivative contracts, including net cash payments upon settlement, for the years ended December 31, 2014, 2013 and 2012. See Note 13 for discussion of derivative contracts. | |||||||||||||||||||||
[8] | For the years ended December 31, 2014 and 2013, income (loss) from operations includes impairments of $27.4 million and $11.1 million, respectively, on certain drilling assets. | |||||||||||||||||||||
[9] | For the years ended December 31, 2014, 2013 and 2012, loss from operations includes impairments of the Company’s gas treating plants in west Texas and other midstream assets of $0.6 million, $3.9 million and $59.7 million, respectively. | |||||||||||||||||||||
[10] | For the year ended December 31, 2013, loss from operations includes a $2.9 million impairment of a corporate asset and an $8.3 million impairment of the Company’s CO2 compression facilities. For the year ended December 31, 2012, loss from operations includes a $19.6 million impairment of the Company’s CO2 compression facilities. |
Business_Segment_Information_S1
Business Segment Information - Summarized Financial Information Concerning Segments (Additional Information) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||||||
Full cost ceiling impairments | $164,800,000 | $0 | $0 | ||||||
Goodwill impairment loss | 235,400,000 | ||||||||
Asset impairment charges | 192,768,000 | 26,280,000 | 316,004,000 | ||||||
Gas Treating Plants and other Midstream Assets | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairment charges | 600,000 | 12,200,000 | 10,000,000 | 2,100,000 | |||||
Corporate Asset | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairment charges | 2,900,000 | 2,900,000 | |||||||
Permian Properties | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gain (loss) on sale of oil and gas property | -398,900,000 | -398,900,000 | |||||||
Exploration and Production | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Full cost ceiling impairments | 164,800,000 | 164,800,000 | |||||||
Goodwill impairment loss | 235,400,000 | ||||||||
Exploration and Production | Permian Properties | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gain (loss) on sale of oil and gas property | -398,900,000 | ||||||||
Drilling and Oil Field Services | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairment charges | 27,400,000 | 11,100,000 | 24,300,000 | 3,100,000 | |||||
Midstream Services | Gas Treating Plants and other Midstream Assets | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairment charges | 600,000 | 3,900,000 | 59,700,000 | ||||||
All Other | Corporate Asset | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairment charges | 2,900,000 | ||||||||
All Other | CO2 Compression Facilities | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairment charges | $8,300,000 | $19,600,000 |
Business_Segment_Information_M
Business Segment Information - Major Customers (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue, Major Customer [Line Items] | |||||||||||
Sales | $346,881 | $394,107 | $374,714 | $443,056 | $465,108 | $493,603 | $512,987 | $511,690 | $1,558,758 | $1,983,388 | $1,934,642 |
Plains Marketing, L.P. | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Sales | 597,117 | 491,258 | 426,339 | ||||||||
Percentage of revenue | 38.30% | 24.80% | 15.60% | ||||||||
Shell Trading (US) Company | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Sales | 347,422 | ||||||||||
Percentage of revenue | 17.50% | ||||||||||
Atlas Pipeline Mid-Continent West OK LLC | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Sales | 333,027 | 211,838 | |||||||||
Percentage of revenue | 21.40% | 10.70% | |||||||||
Enterprise Crude Oil, LLC | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Sales | $394,162 | ||||||||||
Percentage of revenue | 14.40% |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors' (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current assets | ||||
Cash and cash equivalents | $181,253 | $814,663 | $309,766 | $207,681 |
Accounts receivable, net | 330,077 | 349,218 | ||
Intercompany accounts receivable | 0 | 0 | ||
Derivative contracts | 291,414 | 12,779 | ||
Prepaid expenses | 7,981 | 39,253 | ||
Other current assets | 21,193 | 25,910 | ||
Total current assets | 831,918 | 1,241,823 | ||
Property, plant and equipment, net | 6,215,057 | 6,307,675 | ||
Investment in subsidiaries | 0 | 0 | ||
Derivative contracts | 47,003 | 14,126 | ||
Other assets | 165,247 | 121,171 | ||
Total assets | 7,259,225 | 7,684,795 | ||
Current liabilities | ||||
Accounts payable and accrued expenses | 683,392 | 812,488 | ||
Intercompany accounts payable | 0 | 0 | ||
Derivative contracts | 0 | 34,267 | ||
Deferred tax liability | 95,843 | 0 | ||
Other current liabilities | 5,216 | 0 | ||
Asset retirement obligations | 0 | 87,063 | 118,504 | |
Total current liabilities | 784,451 | 933,818 | ||
Investment in subsidiaries | 0 | 0 | ||
Long-term debt | 3,195,436 | 3,194,907 | ||
Derivative contracts | 0 | 20,564 | ||
Asset retirement obligations | 54,402 | 337,054 | 379,906 | |
Other long-term obligations | 15,116 | 22,825 | ||
Total liabilities | 4,049,405 | 4,509,168 | ||
Equity | ||||
SandRidge Energy, Inc. stockholders’ equity | 1,937,825 | 1,825,810 | ||
Noncontrolling interest | 1,271,995 | 1,349,817 | ||
Total equity | 3,209,820 | 3,175,627 | 3,862,455 | 2,548,950 |
Total liabilities and equity | 7,259,225 | 7,684,795 | ||
Parent | ||||
Current assets | ||||
Cash and cash equivalents | 170,468 | 805,505 | 300,228 | 204,015 |
Accounts receivable, net | 7 | 0 | ||
Intercompany accounts receivable | 751,376 | 153,325 | ||
Derivative contracts | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 1,376 | ||
Total current assets | 921,851 | 960,206 | ||
Property, plant and equipment, net | 0 | 0 | ||
Investment in subsidiaries | 6,606,198 | 6,009,603 | ||
Derivative contracts | 0 | 0 | ||
Other assets | 152,286 | 61,923 | ||
Total assets | 7,680,335 | 7,031,732 | ||
Current liabilities | ||||
Accounts payable and accrued expenses | 201,368 | 207,572 | ||
Intercompany accounts payable | 1,315,667 | 967,365 | ||
Derivative contracts | 0 | 0 | ||
Deferred tax liability | 95,843 | |||
Other current liabilities | 0 | |||
Asset retirement obligations | 0 | |||
Total current liabilities | 1,612,878 | 1,174,937 | ||
Investment in subsidiaries | 928,217 | 828,794 | ||
Long-term debt | 3,201,338 | 3,200,809 | ||
Derivative contracts | 0 | |||
Asset retirement obligations | 0 | 0 | ||
Other long-term obligations | 77 | 1,382 | ||
Total liabilities | 5,742,510 | 5,205,922 | ||
Equity | ||||
SandRidge Energy, Inc. stockholders’ equity | 1,937,825 | 1,825,810 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 1,937,825 | 1,825,810 | ||
Total liabilities and equity | 7,680,335 | 7,031,732 | ||
Guarantors | ||||
Current assets | ||||
Cash and cash equivalents | 1,398 | 1,013 | 922 | 437 |
Accounts receivable, net | 299,764 | 326,345 | ||
Intercompany accounts receivable | 1,339,152 | 982,524 | ||
Derivative contracts | 284,825 | 7,796 | ||
Prepaid expenses | 7,971 | 39,165 | ||
Other current assets | 21,193 | 24,410 | ||
Total current assets | 1,954,303 | 1,381,253 | ||
Property, plant and equipment, net | 4,987,281 | 5,125,543 | ||
Investment in subsidiaries | 176,365 | 49,418 | ||
Derivative contracts | 47,003 | 12,650 | ||
Other assets | 18,197 | 65,123 | ||
Total assets | 7,183,149 | 6,633,987 | ||
Current liabilities | ||||
Accounts payable and accrued expenses | 477,399 | 601,074 | ||
Intercompany accounts payable | 780,645 | 181,573 | ||
Derivative contracts | 38,454 | 44,032 | ||
Deferred tax liability | 0 | |||
Other current liabilities | 5,216 | |||
Asset retirement obligations | 87,063 | |||
Total current liabilities | 1,301,714 | 913,742 | ||
Investment in subsidiaries | 134,013 | 152,266 | ||
Long-term debt | 0 | 0 | ||
Derivative contracts | 28,673 | |||
Asset retirement obligations | 54,402 | 337,054 | ||
Other long-term obligations | 15,039 | 21,443 | ||
Total liabilities | 1,505,168 | 1,453,178 | ||
Equity | ||||
SandRidge Energy, Inc. stockholders’ equity | 5,677,981 | 5,180,809 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 5,677,981 | 5,180,809 | ||
Total liabilities and equity | 7,183,149 | 6,633,987 | ||
Non-Guarantors | ||||
Current assets | ||||
Cash and cash equivalents | 9,387 | 8,145 | 8,616 | 3,229 |
Accounts receivable, net | 30,313 | 22,873 | ||
Intercompany accounts receivable | 41,679 | 70,107 | ||
Derivative contracts | 45,043 | 14,748 | ||
Prepaid expenses | 10 | 88 | ||
Other current assets | 0 | 124 | ||
Total current assets | 126,432 | 116,085 | ||
Property, plant and equipment, net | 1,227,776 | 1,182,132 | ||
Investment in subsidiaries | 0 | 0 | ||
Derivative contracts | 0 | 9,585 | ||
Other assets | 666 | 27 | ||
Total assets | 1,354,874 | 1,307,829 | ||
Current liabilities | ||||
Accounts payable and accrued expenses | 4,632 | 3,842 | ||
Intercompany accounts payable | 35,895 | 57,018 | ||
Derivative contracts | 0 | 0 | ||
Deferred tax liability | 0 | |||
Other current liabilities | 0 | |||
Asset retirement obligations | 0 | |||
Total current liabilities | 40,527 | 60,860 | ||
Investment in subsidiaries | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Derivative contracts | 0 | |||
Asset retirement obligations | 0 | 0 | ||
Other long-term obligations | 0 | 0 | ||
Total liabilities | 40,527 | 60,860 | ||
Equity | ||||
SandRidge Energy, Inc. stockholders’ equity | 1,314,347 | 1,246,969 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 1,314,347 | 1,246,969 | ||
Total liabilities and equity | 1,354,874 | 1,307,829 | ||
Eliminations | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | -7 | 0 | ||
Intercompany accounts receivable | -2,132,207 | -1,205,956 | ||
Derivative contracts | -38,454 | -9,765 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | -2,170,668 | -1,215,721 | ||
Property, plant and equipment, net | 0 | 0 | ||
Investment in subsidiaries | -6,782,563 | -6,059,021 | ||
Derivative contracts | 0 | -8,109 | ||
Other assets | -5,902 | -5,902 | ||
Total assets | -8,959,133 | -7,288,753 | ||
Current liabilities | ||||
Accounts payable and accrued expenses | -7 | 0 | ||
Intercompany accounts payable | -2,132,207 | -1,205,956 | ||
Derivative contracts | -38,454 | -9,765 | ||
Deferred tax liability | 0 | |||
Other current liabilities | 0 | |||
Asset retirement obligations | 0 | |||
Total current liabilities | -2,170,668 | -1,215,721 | ||
Investment in subsidiaries | -1,062,230 | -981,060 | ||
Long-term debt | -5,902 | -5,902 | ||
Derivative contracts | -8,109 | |||
Asset retirement obligations | 0 | 0 | ||
Other long-term obligations | 0 | 0 | ||
Total liabilities | -3,238,800 | -2,210,792 | ||
Equity | ||||
SandRidge Energy, Inc. stockholders’ equity | -6,992,328 | -6,427,778 | ||
Noncontrolling interest | 1,271,995 | 1,349,817 | ||
Total equity | -5,720,333 | -5,077,961 | ||
Total liabilities and equity | ($8,959,133) | ($7,288,753) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors' (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues | $346,881,000 | $394,107,000 | $374,714,000 | $443,056,000 | $465,108,000 | $493,603,000 | $512,987,000 | $511,690,000 | $1,558,758,000 | $1,983,388,000 | $1,934,642,000 | ||||||||
Expenses | |||||||||||||||||||
Direct operating expenses | 483,889,000 | 682,830,000 | 635,349,000 | ||||||||||||||||
General and administrative | 122,865,000 | 330,425,000 | 241,682,000 | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 503,023,000 | 666,645,000 | 657,830,000 | ||||||||||||||||
Impairment | 192,768,000 | 26,280,000 | 316,004,000 | ||||||||||||||||
(Gain) loss on derivative contracts | -334,011,000 | 47,123,000 | -241,419,000 | ||||||||||||||||
Loss on sale of assets | 10,000 | 399,086,000 | 3,089,000 | ||||||||||||||||
Total expenses | 968,534,000 | 2,152,389,000 | 1,609,446,000 | ||||||||||||||||
(Loss) income from operations | 373,984,000 | [1],[2] | 256,491,000 | [1],[2] | 42,079,000 | [1],[2] | -82,330,000 | [1],[2] | 122,261,000 | [3],[4],[5] | -2,166,000 | [3],[4],[5] | 78,386,000 | [3],[4],[5] | -367,482,000 | [3],[4],[5] | 590,224,000 | -169,001,000 | 325,196,000 |
Equity earnings from subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Interest (expense) income, net | -244,109,000 | -270,234,000 | -303,349,000 | ||||||||||||||||
Bargain purchase gain | 0 | 0 | 122,696,000 | ||||||||||||||||
Loss on extinguishment of debt | 0 | -82,005,000 | -3,075,000 | ||||||||||||||||
Other income (expense), net | 3,490,000 | 12,445,000 | 4,741,000 | ||||||||||||||||
Income (loss) before income taxes | 349,605,000 | -508,795,000 | 146,209,000 | ||||||||||||||||
Income tax (benefit) expense | -2,293,000 | 5,684,000 | -100,362,000 | ||||||||||||||||
Net income | 314,057,000 | [1],[2] | 197,499,000 | [1],[2] | -17,252,000 | [1],[2] | -142,406,000 | [1],[2] | 73,379,000 | [3],[4],[5] | -65,256,000 | [3],[4],[5] | 16,613,000 | [3],[4],[5] | -539,215,000 | [3],[4],[5] | 351,898,000 | -514,479,000 | 246,571,000 |
Less: net income attributable to noncontrolling interest | 98,613,000 | 39,410,000 | 105,000,000 | ||||||||||||||||
Net income attributable to SandRidge Energy, Inc. | 253,285,000 | -553,889,000 | 141,571,000 | ||||||||||||||||
Parent | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||||||||
Expenses | |||||||||||||||||||
Direct operating expenses | 0 | 0 | 0 | ||||||||||||||||
General and administrative | 331,000 | 329,000 | 367,000 | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 0 | 0 | 0 | ||||||||||||||||
Impairment | 0 | 0 | 0 | ||||||||||||||||
(Gain) loss on derivative contracts | 0 | 0 | 0 | ||||||||||||||||
Loss on sale of assets | 0 | ||||||||||||||||||
Total expenses | 331,000 | 329,000 | 367,000 | ||||||||||||||||
(Loss) income from operations | -331,000 | -329,000 | -367,000 | ||||||||||||||||
Equity earnings from subsidiaries | 495,154,000 | -195,118,000 | 347,715,000 | ||||||||||||||||
Interest (expense) income, net | -244,209,000 | -271,193,000 | -303,510,000 | ||||||||||||||||
Bargain purchase gain | 0 | ||||||||||||||||||
Loss on extinguishment of debt | -82,005,000 | -3,075,000 | |||||||||||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||||||||||
Income (loss) before income taxes | 250,614,000 | -548,645,000 | 40,763,000 | ||||||||||||||||
Income tax (benefit) expense | -2,671,000 | 5,244,000 | -100,808,000 | ||||||||||||||||
Net income | 253,285,000 | -553,889,000 | 141,571,000 | ||||||||||||||||
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||||||
Net income attributable to SandRidge Energy, Inc. | 253,285,000 | -553,889,000 | 141,571,000 | ||||||||||||||||
Guarantors | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues | 1,341,531,000 | 1,675,481,000 | 1,638,741,000 | ||||||||||||||||
Expenses | |||||||||||||||||||
Direct operating expenses | 467,175,000 | 654,080,000 | 596,028,000 | ||||||||||||||||
General and administrative | 118,249,000 | 323,808,000 | 235,102,000 | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 446,149,000 | 581,435,000 | 570,786,000 | ||||||||||||||||
Impairment | 150,125,000 | 15,038,000 | 236,671,000 | ||||||||||||||||
(Gain) loss on derivative contracts | -292,733,000 | 24,702,000 | -198,732,000 | ||||||||||||||||
Loss on sale of assets | 291,743,000 | ||||||||||||||||||
Total expenses | 888,965,000 | 1,890,806,000 | 1,439,855,000 | ||||||||||||||||
(Loss) income from operations | 452,566,000 | -215,325,000 | 198,886,000 | ||||||||||||||||
Equity earnings from subsidiaries | 38,967,000 | 3,075,000 | 20,667,000 | ||||||||||||||||
Interest (expense) income, net | 100,000 | 959,000 | 725,000 | ||||||||||||||||
Bargain purchase gain | 122,696,000 | ||||||||||||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||||||||||
Other income (expense), net | 3,521,000 | 16,173,000 | 4,741,000 | ||||||||||||||||
Income (loss) before income taxes | 495,154,000 | -195,118,000 | 347,715,000 | ||||||||||||||||
Income tax (benefit) expense | 0 | 0 | 0 | ||||||||||||||||
Net income | 495,154,000 | -195,118,000 | 347,715,000 | ||||||||||||||||
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||||||
Net income attributable to SandRidge Energy, Inc. | 495,154,000 | -195,118,000 | 347,715,000 | ||||||||||||||||
Non-Guarantors | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues | 217,367,000 | 308,300,000 | 404,418,000 | ||||||||||||||||
Expenses | |||||||||||||||||||
Direct operating expenses | 16,854,000 | 29,143,000 | 146,416,000 | ||||||||||||||||
General and administrative | 4,285,000 | 6,288,000 | 7,635,000 | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 56,874,000 | 85,210,000 | 87,044,000 | ||||||||||||||||
Impairment | 42,643,000 | 11,242,000 | 79,333,000 | ||||||||||||||||
(Gain) loss on derivative contracts | -41,278,000 | 22,421,000 | -42,687,000 | ||||||||||||||||
Loss on sale of assets | 107,343,000 | ||||||||||||||||||
Total expenses | 79,378,000 | 261,647,000 | 277,741,000 | ||||||||||||||||
(Loss) income from operations | 137,989,000 | 46,653,000 | 126,677,000 | ||||||||||||||||
Equity earnings from subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Interest (expense) income, net | 0 | 0 | -564,000 | ||||||||||||||||
Bargain purchase gain | 0 | ||||||||||||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||||||||||
Other income (expense), net | -31,000 | -3,728,000 | 0 | ||||||||||||||||
Income (loss) before income taxes | 137,958,000 | 42,925,000 | 126,113,000 | ||||||||||||||||
Income tax (benefit) expense | 378,000 | 440,000 | 446,000 | ||||||||||||||||
Net income | 137,580,000 | 42,485,000 | 125,667,000 | ||||||||||||||||
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||||||
Net income attributable to SandRidge Energy, Inc. | 137,580,000 | 42,485,000 | 125,667,000 | ||||||||||||||||
Eliminations | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues | -140,000 | -393,000 | -108,517,000 | ||||||||||||||||
Expenses | |||||||||||||||||||
Direct operating expenses | -140,000 | -393,000 | -107,095,000 | ||||||||||||||||
General and administrative | 0 | 0 | -1,422,000 | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 0 | 0 | 0 | ||||||||||||||||
Impairment | 0 | 0 | 0 | ||||||||||||||||
(Gain) loss on derivative contracts | 0 | 0 | 0 | ||||||||||||||||
Loss on sale of assets | 0 | ||||||||||||||||||
Total expenses | -140,000 | -393,000 | -108,517,000 | ||||||||||||||||
(Loss) income from operations | 0 | 0 | 0 | ||||||||||||||||
Equity earnings from subsidiaries | -534,121,000 | 192,043,000 | -368,382,000 | ||||||||||||||||
Interest (expense) income, net | 0 | 0 | 0 | ||||||||||||||||
Bargain purchase gain | 0 | ||||||||||||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||||||||||
Income (loss) before income taxes | -534,121,000 | 192,043,000 | -368,382,000 | ||||||||||||||||
Income tax (benefit) expense | 0 | 0 | 0 | ||||||||||||||||
Net income | -534,121,000 | 192,043,000 | -368,382,000 | ||||||||||||||||
Less: net income attributable to noncontrolling interest | 98,613,000 | 39,410,000 | 105,000,000 | ||||||||||||||||
Net income attributable to SandRidge Energy, Inc. | ($632,734,000) | $152,633,000 | ($473,382,000) | ||||||||||||||||
[1] | Includes loss (gain) on derivative contracts of $42.5 million, $85.3 million, $(132.6) million and $(329.2) million for the first, second, third and fourth quarters, respectively. | ||||||||||||||||||
[2] | Includes a full cost ceiling limitation impairment of $164.8 million in the first quarter and impairments of drilling assets of $3.1 million and $24.3 million in the second and fourth quarters, respectively. | ||||||||||||||||||
[3] | Includes a $10.6 million impairment of various drilling assets and a $2.9 million impairment of a corporate asset in the second quarter of 2013 and a $2.1 million and $10.0 million impairment of certain midstream inventory, natural gas compressors, gas treating plants and a CO2 compression station in the second and fourth quarters of 2013, respectively. | ||||||||||||||||||
[4] | Includes loss (gain) on derivative contracts of $40.9 million, $(103.7) million, $132.8 million and $(22.9) million for the first, second, third and fourth quarters, respectively. | ||||||||||||||||||
[5] | Includes loss on sale of Permian Properties of $398.9 million in the first quarter of 2013. |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors' (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $621,114 | $868,630 | $783,160 |
Cash flows from investing activities | |||
Capital expenditures for property, plant and equipment | -1,553,332 | -1,496,731 | -2,146,372 |
Acquisitions, net of cash received | -18,384 | -17,028 | -840,740 |
Proceeds from sale of assets | 714,475 | 2,584,115 | 431,167 |
Other | -18,384 | -17,028 | 0 |
Net cash (used in) provided by investing activities | -857,241 | 1,070,356 | -2,555,945 |
Cash flows from financing activities | |||
Proceeds from borrowings | 0 | 0 | 1,850,344 |
Repayments of borrowings | 0 | -1,115,500 | -366,029 |
Premium on debt redemption | 0 | -61,997 | -844 |
Proceeds from issuance of royalty trust units | 0 | 0 | 587,086 |
Proceeds from the sale of royalty trust units | 22,119 | 28,985 | 139,360 |
Distributions to unitholders | -193,807 | -206,470 | -181,727 |
Repurchase of common stock | -111,827 | 0 | 0 |
Dividends paid—preferred | -55,525 | -55,525 | -55,525 |
Intercompany (advances) borrowings, net | 0 | 0 | 0 |
Other | -91,649 | 5,403 | -98,639 |
Net cash (used in) provided by financing activities | -397,283 | -1,434,089 | 1,874,870 |
Net (decrease) increase in cash and cash equivalents | -633,410 | 504,897 | 102,085 |
CASH AND CASH EQUIVALENTS, beginning of year | 814,663 | 309,766 | 207,681 |
CASH AND CASH EQUIVALENTS, end of year | 181,253 | 814,663 | 309,766 |
Parent | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 141,751 | -239,026 | 285,567 |
Cash flows from investing activities | |||
Capital expenditures for property, plant and equipment | 0 | 0 | 0 |
Acquisitions, net of cash received | -693,091 | ||
Proceeds from sale of assets | 0 | 0 | 129,830 |
Other | 0 | 0 | -61,343 |
Net cash (used in) provided by investing activities | 0 | 0 | -624,604 |
Cash flows from financing activities | |||
Proceeds from borrowings | 1,850,344 | ||
Repayments of borrowings | -1,115,500 | -350,000 | |
Premium on debt redemption | -61,997 | ||
Proceeds from issuance of royalty trust units | 0 | ||
Proceeds from the sale of royalty trust units | 0 | ||
Distributions to unitholders | 0 | 0 | 0 |
Repurchase of common stock | -111,827 | ||
Dividends paid—preferred | -55,525 | -55,525 | |
Intercompany (advances) borrowings, net | -598,051 | 2,009,146 | -945,448 |
Other | -66,910 | -31,821 | -64,121 |
Net cash (used in) provided by financing activities | -776,788 | 744,303 | 435,250 |
Net (decrease) increase in cash and cash equivalents | -635,037 | 505,277 | 96,213 |
CASH AND CASH EQUIVALENTS, beginning of year | 805,505 | 300,228 | 204,015 |
CASH AND CASH EQUIVALENTS, end of year | 170,468 | 805,505 | 300,228 |
Guarantors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 258,498 | 852,026 | 264,717 |
Cash flows from investing activities | |||
Capital expenditures for property, plant and equipment | -1,553,332 | -1,496,731 | -2,112,547 |
Acquisitions, net of cash received | -147,649 | ||
Proceeds from sale of assets | 711,728 | 2,566,742 | 942,675 |
Other | -165,551 | 89,606 | 278,708 |
Net cash (used in) provided by investing activities | -1,007,155 | 1,159,617 | -1,038,813 |
Cash flows from financing activities | |||
Proceeds from borrowings | 0 | ||
Repayments of borrowings | 0 | 0 | |
Premium on debt redemption | 0 | ||
Proceeds from issuance of royalty trust units | 0 | ||
Proceeds from the sale of royalty trust units | 0 | ||
Distributions to unitholders | 0 | 0 | 0 |
Repurchase of common stock | 0 | ||
Dividends paid—preferred | 0 | 0 | |
Intercompany (advances) borrowings, net | 598,056 | -2,018,212 | 809,099 |
Other | 150,986 | 6,660 | -34,518 |
Net cash (used in) provided by financing activities | 749,042 | -2,011,552 | 774,581 |
Net (decrease) increase in cash and cash equivalents | 385 | 91 | 485 |
CASH AND CASH EQUIVALENTS, beginning of year | 1,013 | 922 | 437 |
CASH AND CASH EQUIVALENTS, end of year | 1,398 | 1,013 | 922 |
Non-Guarantors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 212,427 | 254,723 | 162,281 |
Cash flows from investing activities | |||
Capital expenditures for property, plant and equipment | 0 | 0 | -33,825 |
Acquisitions, net of cash received | -587,086 | ||
Proceeds from sale of assets | 2,747 | 17,373 | 1,333 |
Other | 1,140 | 3,197 | 0 |
Net cash (used in) provided by investing activities | 3,887 | 20,570 | -619,578 |
Cash flows from financing activities | |||
Proceeds from borrowings | 0 | ||
Repayments of borrowings | 0 | -16,029 | |
Premium on debt redemption | 0 | ||
Proceeds from issuance of royalty trust units | 587,086 | ||
Proceeds from the sale of royalty trust units | 0 | ||
Distributions to unitholders | -234,327 | -299,675 | -274,980 |
Repurchase of common stock | 0 | ||
Dividends paid—preferred | 0 | 0 | |
Intercompany (advances) borrowings, net | -5 | 9,066 | 136,349 |
Other | 19,260 | 14,845 | 30,258 |
Net cash (used in) provided by financing activities | -215,072 | -275,764 | 462,684 |
Net (decrease) increase in cash and cash equivalents | 1,242 | -471 | 5,387 |
CASH AND CASH EQUIVALENTS, beginning of year | 8,145 | 8,616 | 3,229 |
CASH AND CASH EQUIVALENTS, end of year | 9,387 | 8,145 | 8,616 |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 8,438 | 907 | 70,595 |
Cash flows from investing activities | |||
Capital expenditures for property, plant and equipment | 0 | 0 | 0 |
Acquisitions, net of cash received | 587,086 | ||
Proceeds from sale of assets | 0 | 0 | -642,671 |
Other | 146,027 | -109,831 | -217,365 |
Net cash (used in) provided by investing activities | 146,027 | -109,831 | -272,950 |
Cash flows from financing activities | |||
Proceeds from borrowings | 0 | ||
Repayments of borrowings | 0 | 0 | |
Premium on debt redemption | 0 | ||
Proceeds from issuance of royalty trust units | 0 | ||
Proceeds from the sale of royalty trust units | 139,360 | ||
Distributions to unitholders | 40,520 | 93,205 | 93,253 |
Repurchase of common stock | 0 | ||
Dividends paid—preferred | 0 | 0 | |
Intercompany (advances) borrowings, net | 0 | 0 | 0 |
Other | -194,985 | 15,719 | -30,258 |
Net cash (used in) provided by financing activities | -154,465 | 108,924 | 202,355 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, beginning of year | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of year | $0 | $0 | $0 |
Supplemental_Information_on_Oi2
Supplemental Information on Oil and Natural Gas Producing Activities - Capitalized Costs Related to Oil and Natural Gas Producing Activities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Oil and natural gas properties | |||||
Proved | $11,707,147 | [1] | $10,972,816 | [1] | $12,262,921 |
Unproved | 290,596 | 531,606 | 865,863 | ||
Total oil and natural gas properties | 11,997,743 | 11,504,422 | 13,128,784 | ||
Less: accumulated depreciation, depletion and impairment | -6,359,149 | -5,762,969 | -5,231,182 | ||
Net oil and natural gas properties capitalized costs | $5,638,594 | $5,741,453 | $7,897,602 | ||
[1] | Includes cumulative capitalized interest of approximately $38.1 million and $23.4 million at December 31, 2014 and 2013, respectively. |
Supplemental_Information_on_Oi3
Supplemental Information on Oil and Natural Gas Producing Activities - Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Acquisitions of properties | ||||||
Proved | $73,370 | $21,130 | $1,761,556 | |||
Unproved | 123,649 | 100,242 | 377,185 | |||
Exploration | 41,070 | [1] | 82,775 | [1] | 120,438 | [1] |
Development | 1,288,395 | [2] | 1,131,269 | [2] | 1,704,991 | [2] |
Total cost incurred | $1,526,484 | $1,335,416 | $3,964,170 | |||
[1] | Includes seismic costs of $10.8 million, $6.7 million and $15.3 million for 2014, 2013 and 2012, respectively. | |||||
[2] | Includes the Company’s share of Century Plant construction costs of $50.0 million for 2012. See Note 7. |
Supplemental_Information_on_Oi4
Supplemental Information on Oil and Natural Gas Producing Activities - Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development (Additional Information) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||||||
Exploration | $41,070 | [1] | $82,775 | [1] | $120,438 | [1] |
Development | 1,288,395 | [2] | 1,131,269 | [2] | 1,704,991 | [2] |
Seismic Costs | ||||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||||||
Exploration | 10,800 | 6,700 | 15,300 | |||
Construction Costs | Century Plant | ||||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||||||
Development | $50,000 | |||||
[1] | Includes seismic costs of $10.8 million, $6.7 million and $15.3 million for 2014, 2013 and 2012, respectively. | |||||
[2] | Includes the Company’s share of Century Plant construction costs of $50.0 million for 2012. See Note 7. |
Supplemental_Information_on_Oi5
Supplemental Information on Oil and Natural Gas Producing Activities - Results of Operations from Oil and Natural Gas Producing Activities (Unaudited) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Extractive Industries [Abstract] | ||||||
Revenues | $1,420,879 | $1,820,278 | $1,759,282 | |||
Expenses | ||||||
Production costs | 377,819 | 548,719 | 524,364 | |||
Depreciation and depletion | 434,295 | 567,732 | 568,029 | |||
Accretion of asset retirement obligations | 9,092 | 36,777 | 28,996 | |||
Total expenses | 821,206 | 1,153,228 | 1,121,389 | |||
Income before income taxes | 599,673 | 667,050 | 637,893 | |||
Benefit of income taxes | -3,933 | [1] | -7,471 | [1] | -437,595 | [1] |
Results of operations for oil and natural gas producing activities (excluding corporate overhead and interest costs) | $603,606 | $674,521 | $1,075,488 | |||
[1] | Reflects the Company’s effective tax rate, including the partial valuation allowance releases. |
Supplemental_Information_on_Oi6
Supplemental Information on Oil and Natural Gas Producing Activities - Summary of Changes in Estimated Oil and Natural Gas Reserves (Unaudited) (Details) | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
MBbls | MBbls | MBbls | MBbls | |||||
Oil Reserves | ||||||||
Proved Developed and Undeveloped Reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | ||||||||
Proved developed and undeveloped reserves, beginning balance | 142,641 | [1] | 262,045 | [1] | 214,450 | |||
Revisions of previous estimates | -18,687 | -13,969 | -37,394 | |||||
Acquisitions of new reserves | 1,009 | 43 | 31,470 | |||||
Extensions and discoveries | 37,603 | 40,570 | 89,656 | |||||
Sales of reserves in place | -25,659 | -131,769 | -20,269 | |||||
Production | -10,876 | -14,279 | -15,868 | |||||
Proved developed and undeveloped reserves, ending balance | 126,031 | [1] | 142,641 | [1] | 262,045 | [1] | ||
Proved developed reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 79,022 | 83,893 | 136,605 | 101,578 | ||||
Proved undeveloped reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 47,009 | 58,748 | 125,440 | 112,872 | ||||
Natural Gas Liquids | ||||||||
Proved Developed and Undeveloped Reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | ||||||||
Proved developed and undeveloped reserves, beginning balance | 59,052 | [1] | 67,994 | [1] | 30,335 | |||
Revisions of previous estimates | 11,103 | 3,717 | 15,098 | |||||
Acquisitions of new reserves | 441 | 13 | 683 | |||||
Extensions and discoveries | 27,500 | 18,686 | 27,259 | |||||
Sales of reserves in place | -2,516 | -29,067 | -3,287 | |||||
Production | -3,794 | -2,291 | -2,094 | |||||
Proved developed and undeveloped reserves, ending balance | 91,786 | [1] | 59,052 | [1] | 67,994 | [1] | ||
Proved developed reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 56,823 | 35,807 | 33,785 | 17,150 | ||||
Proved undeveloped reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 34,963 | 23,245 | 34,209 | 13,185 | ||||
Natural Gas | ||||||||
Proved Developed and Undeveloped Reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | ||||||||
Proved developed and undeveloped reserves, beginning balance | 1,390,429 | [1],[2] | 1,415,042 | [1],[2] | 1,355,056 | [2] | ||
Revisions of previous estimates | 167,589 | [2] | -53,432 | [2] | -538,214 | [2] | ||
Acquisitions of new reserves | 12,527 | [2] | 363 | [2] | 202,995 | [2] | ||
Extensions and discoveries | 467,185 | [2] | 359,918 | [2] | 489,302 | [2] | ||
Sales of reserves in place | -163,800 | [2] | -228,229 | [2] | -548 | [2] | ||
Production | -85,697 | [2] | -103,233 | [2] | -93,549 | [2] | ||
Proved developed and undeveloped reserves, ending balance | 1,788,233 | [1],[2] | 1,390,429 | [1],[2] | 1,415,042 | [1],[2] | ||
Proved developed reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 1,203,447 | [2] | 951,609 | [2] | 896,701 | [2] | 670,382 | [2] |
Proved undeveloped reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 584,786 | [2] | 438,820 | [2] | 518,341 | [2] | 684,674 | [2] |
[1] | Includes proved reserves attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 as shown in the table below: December 31, 2014 2013 2012Oil (MBbl)11,027 13,569 17,340NGL (MBbl)4,761 4,737 5,132Natural gas (MMcf)70,833 69,693 94,543 | |||||||
[2] | Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit. |
Supplemental_Information_on_Oi7
Supplemental Information on Oil and Natural Gas Producing Activities - Summary of Changes in Estimated Oil and Natural Gas Reserves - Noncontrolling Interests (Unaudited) (Additional Information) (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
MBbls | MBbls | MBbls | MBbls | |||||
Oil Reserves | ||||||||
Reserve Quantities [Line Items] | ||||||||
Proved reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 126,031 | [1] | 142,641 | [1] | 262,045 | [1] | 214,450 | |
Natural Gas Liquids | ||||||||
Reserve Quantities [Line Items] | ||||||||
Proved reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 91,786 | [1] | 59,052 | [1] | 67,994 | [1] | 30,335 | |
Natural Gas Reserves | ||||||||
Reserve Quantities [Line Items] | ||||||||
Proved reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 1,788,233 | [1],[2] | 1,390,429 | [1],[2] | 1,415,042 | [1],[2] | 1,355,056 | [2] |
Non-controlling Interest | Oil Reserves | ||||||||
Reserve Quantities [Line Items] | ||||||||
Proved reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 11,027 | 13,569 | 17,340 | |||||
Non-controlling Interest | Natural Gas Liquids | ||||||||
Reserve Quantities [Line Items] | ||||||||
Proved reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 4,761 | 4,737 | 5,132 | |||||
Non-controlling Interest | Natural Gas Reserves | ||||||||
Reserve Quantities [Line Items] | ||||||||
Proved reserves (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 70,833 | 69,693 | 94,543 | |||||
[1] | Includes proved reserves attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 as shown in the table below: December 31, 2014 2013 2012Oil (MBbl)11,027 13,569 17,340NGL (MBbl)4,761 4,737 5,132Natural gas (MMcf)70,833 69,693 94,543 | |||||||
[2] | Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit. |
Supplemental_Information_on_Oi8
Supplemental Information on Oil and Natural Gas Producing Activities - Calculation of Weighted Average Per Unit Prices (Unaudited) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Oil Reserves | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Weighted Average Sales Price (per barrel for Oil and NGLs/per Mcf for Natural Gas) | 91.65 | 95.67 | 91.65 |
Natural Gas Liquids | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Weighted Average Sales Price (per barrel for Oil and NGLs/per Mcf for Natural Gas) | 32.79 | 31.4 | 32.64 |
Natural Gas | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Weighted Average Sales Price (per barrel for Oil and NGLs/per Mcf for Natural Gas) | 3.61 | 3.65 | 2.29 |
Supplemental_Information_on_Oi9
Supplemental Information on Oil and Natural Gas Producing Activities - Standardized Measure of Discounted Future Cash Flows (Unaudited) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Thousands, unless otherwise specified | |||||||
Extractive Industries [Abstract] | |||||||
Future cash inflows from production | $21,022,320 | $19,937,484 | $29,482,544 | ||||
Future production costs | -6,499,366 | -6,843,713 | -8,899,465 | ||||
Future development costs | -1,810,201 | [1] | -2,546,680 | [1] | -4,021,051 | [1] | |
Future income tax expenses | -3,223,740 | -2,283,541 | -3,721,509 | ||||
Undiscounted future net cash flows | 9,489,013 | 8,263,550 | 12,840,519 | ||||
10% annual discount | -5,401,261 | -4,245,939 | -7,000,151 | ||||
Standardized measure of discounted future net cash flows | $4,087,752 | [2],[3] | $4,017,611 | [2],[3] | $5,840,368 | [2],[3] | $5,216,337 |
[1] | Includes abandonment costs. | ||||||
[2] | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 respectively. | ||||||
[3] | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013, and 2012 respectively. |
Recovered_Sheet1
Supplemental Information on Oil and Natural Gas Producing Activities - Standardized Measure of Discounted Future Net Cash Flows (Unaudited) (Additional Information) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Thousands, unless otherwise specified | |||||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||||
Standardized measure of discounted future net cash flows | $4,087,752 | [1],[2] | $4,017,611 | [1],[2] | $5,840,368 | [1],[2] | $5,216,337 |
Non-controlling Interest | |||||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||||
Standardized measure of discounted future net cash flows | $643,300 | $781,600 | $952,700 | ||||
[1] | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 respectively. | ||||||
[2] | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013, and 2012 respectively. |
Recovered_Sheet2
Supplemental Information on Oil and Natural Gas Producing Activities - Estimate of Changes in Standardized Measure of Discounted Future Net Cash Flows from Proved Reserves (Unaudited) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Extractive Industries [Abstract] | ||||||
Present value, beginning balance | $4,017,611 | [1],[2] | $5,840,368 | [1],[2] | $5,216,337 | |
Changes during the year | ||||||
Revenues less production and other costs | -1,043,060 | -1,271,559 | -1,234,918 | |||
Net changes in prices, production and other costs | 331,694 | 271,566 | -2,555,391 | |||
Development costs incurred | 364,262 | 474,275 | 766,943 | |||
Net changes in future development costs | -341,183 | -207,729 | -45,397 | |||
Extensions and discoveries | 1,785,963 | 1,406,102 | 2,092,423 | |||
Revisions of previous quantity estimates | -77,688 | -296,418 | -530,755 | |||
Accretion of discount | 477,458 | 711,385 | 678,200 | |||
Net change in income taxes | -256,371 | 477,328 | 11,433 | |||
Purchases of reserves in-place | 50,958 | 1,628 | 1,708,301 | |||
Sales of reserves in-place | -1,058,330 | -3,172,187 | -410,415 | |||
Timing differences and other | -163,562 | [3] | -217,148 | [3] | 143,607 | [3] |
Net change for the year | 70,141 | -1,822,757 | 624,031 | |||
Present value, ending balance | $4,087,752 | [1],[2] | $4,017,611 | [1],[2] | $5,840,368 | [1],[2] |
[1] | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 respectively. | |||||
[2] | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013, and 2012 respectively. | |||||
[3] | The change in timing differences and other are related to revisions in the Company’s estimated time of production and development. |
Recovered_Sheet3
Supplemental Information on Oil and Natural Gas Producing Activities - Estimate of Changes in Standardized Measure of Discounted Future Net Cash Flows from Proved Reserves (Unaudited) (Additional Information) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Thousands, unless otherwise specified | |||||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||||
Present value | $4,087,752 | [1],[2] | $4,017,611 | [1],[2] | $5,840,368 | [1],[2] | $5,216,337 |
Non-controlling Interest | |||||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||||
Present value | $643,300 | $781,600 | $952,700 | ||||
[1] | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 respectively. | ||||||
[2] | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013, and 2012 respectively. |
Recovered_Sheet4
Supplemental Information on Oil and Natural Gas Producing Activities - Narrative (Details) (USD $) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
MMBoe | MBbls | MBbls | |||||
Reserve Quantities [Line Items] | |||||||
Percentage of proved reserves estimated by the Company | 13.90% | ||||||
Standardized measure of discounted future net cash flows | $4,087,752 | [1],[2] | 4,017,611 | [1],[2] | 5,840,368 | [1],[2] | $5,216,337 |
Acquisitions of new reserves (MMBoe) | 3.5 | ||||||
Oil Reserves | |||||||
Reserve Quantities [Line Items] | |||||||
Change in proved reserves (in MBbls for Oil/MMcf for Natural Gas) | 67,900 | ||||||
Revisions of previous estimates (in MBbls for Oil and NGLs/MMcf for Natural Gas) | -18,687 | -13,969 | -37,394 | ||||
Extensions and discoveries (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 37,603 | 40,570 | 89,656 | ||||
Proved developed and undeveloped reserves, production (in MBbls for Oil/MMcf for Natural Gas) | -10,876 | -14,279 | -15,868 | ||||
Natural Gas Reserves | |||||||
Reserve Quantities [Line Items] | |||||||
Change in proved reserves (in MBbls for Oil/MMcf for Natural Gas) | 60,500 | ||||||
Revisions of previous estimates (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 167,589 | [3] | -53,432 | [3] | -538,214 | [3] | |
Extensions and discoveries (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 467,185 | [3] | 359,918 | [3] | 489,302 | [3] | |
Proved developed and undeveloped reserves, production (in MBbls for Oil/MMcf for Natural Gas) | -85,697 | [3] | -103,233 | [3] | -93,549 | [3] | |
Natural Gas Liquids | |||||||
Reserve Quantities [Line Items] | |||||||
Change in proved reserves (in MBbls for Oil/MMcf for Natural Gas) | 40,900 | ||||||
Revisions of previous estimates (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 11,103 | 3,717 | 15,098 | ||||
Extensions and discoveries (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 27,500 | 18,686 | 27,259 | ||||
Proved developed and undeveloped reserves, production (in MBbls for Oil/MMcf for Natural Gas) | -3,794 | -2,291 | -2,094 | ||||
Gulf Properties | |||||||
Reserve Quantities [Line Items] | |||||||
Sale of reserves in place (MMBoe) | 55.5 | ||||||
Tertiary | |||||||
Reserve Quantities [Line Items] | |||||||
Sale of reserves in place (MMBoe) | 23.6 | ||||||
Permian Properties | |||||||
Reserve Quantities [Line Items] | |||||||
Proved reserves (in MMBoe) | 198.9 | ||||||
Proved developed reserves as a percentage of total proved reserves | 55.00% | ||||||
Standardized measure of discounted future net cash flows | 2,500,000 | ||||||
Mid-Continent and Permian Basin | Oil Reserves | |||||||
Reserve Quantities [Line Items] | |||||||
Revisions of previous estimates (in MBbls for Oil and NGLs/MMcf for Natural Gas) | -2,000 | -22,300 | |||||
Mid-Continent and Permian Basin | Natural Gas Reserves | |||||||
Reserve Quantities [Line Items] | |||||||
Extensions and discoveries (in MBbls for Oil and NGLs/MMcf for Natural Gas) | 489,302 | [3] | |||||
Mid-Continent | |||||||
Reserve Quantities [Line Items] | |||||||
Extensions and discoveries (in MMBoe) | 119.2 | ||||||
Mid-Continent | Oil Reserves | |||||||
Reserve Quantities [Line Items] | |||||||
Revisions of previous estimates (in MBbls for Oil and NGLs/MMcf for Natural Gas) | -8,000 | ||||||
Permian Properties | Oil Reserves | |||||||
Reserve Quantities [Line Items] | |||||||
Revisions of previous estimates (in MBbls for Oil and NGLs/MMcf for Natural Gas) | -9,000 | ||||||
[1] | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013 and 2012 respectively. | ||||||
[2] | Includes approximately $643.3 million, $781.6 million and $952.7 million attributable to noncontrolling interests at December 31, 2014, 2013, and 2012 respectively. | ||||||
[3] | Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit. |
Quarterly_Financial_Results_Un2
Quarterly Financial Results (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenues | $346,881 | $394,107 | $374,714 | $443,056 | $465,108 | $493,603 | $512,987 | $511,690 | $1,558,758 | $1,983,388 | $1,934,642 | ||||||||
(Loss) income from operations | 373,984 | [1],[2] | 256,491 | [1],[2] | 42,079 | [1],[2] | -82,330 | [1],[2] | 122,261 | [3],[4],[5] | -2,166 | [3],[4],[5] | 78,386 | [3],[4],[5] | -367,482 | [3],[4],[5] | 590,224 | -169,001 | 325,196 |
Net income (loss) | 314,057 | [1],[2] | 197,499 | [1],[2] | -17,252 | [1],[2] | -142,406 | [1],[2] | 73,379 | [3],[4],[5] | -65,256 | [3],[4],[5] | 16,613 | [3],[4],[5] | -539,215 | [3],[4],[5] | 351,898 | -514,479 | 246,571 |
(Loss applicable) income available to SandRidge Energy, Inc. common stockholders | $254,295 | [1],[2] | $145,957 | [1],[2] | ($46,775) | [1],[2] | ($150,217) | [1],[2] | $29,480 | [3],[4],[5] | ($95,328) | [3],[4],[5] | ($42,389) | [3],[4],[5] | ($501,177) | [3],[4],[5] | $203,260 | ($609,414) | $86,046 |
(Loss applicable) income available per share to SandRidge Energy, Inc. common stockholders | |||||||||||||||||||
Basic (in dollars per share) | $0.55 | [6] | $0.30 | [6] | ($0.10) | [6] | ($0.31) | [6] | $0.06 | [6] | ($0.20) | [6] | ($0.09) | [6] | ($1.05) | [6] | $0.42 | ($1.27) | $0.19 |
Diluted (in dollars per share) | $0.48 | [6] | $0.27 | [6] | ($0.10) | [6] | ($0.31) | [6] | $0.06 | [6] | ($0.20) | [6] | ($0.09) | [6] | ($1.05) | [6] | $0.42 | ($1.27) | $0.19 |
[1] | Includes loss (gain) on derivative contracts of $42.5 million, $85.3 million, $(132.6) million and $(329.2) million for the first, second, third and fourth quarters, respectively. | ||||||||||||||||||
[2] | Includes a full cost ceiling limitation impairment of $164.8 million in the first quarter and impairments of drilling assets of $3.1 million and $24.3 million in the second and fourth quarters, respectively. | ||||||||||||||||||
[3] | Includes a $10.6 million impairment of various drilling assets and a $2.9 million impairment of a corporate asset in the second quarter of 2013 and a $2.1 million and $10.0 million impairment of certain midstream inventory, natural gas compressors, gas treating plants and a CO2 compression station in the second and fourth quarters of 2013, respectively. | ||||||||||||||||||
[4] | Includes loss (gain) on derivative contracts of $40.9 million, $(103.7) million, $132.8 million and $(22.9) million for the first, second, third and fourth quarters, respectively. | ||||||||||||||||||
[5] | Includes loss on sale of Permian Properties of $398.9 million in the first quarter of 2013. | ||||||||||||||||||
[6] | (Loss applicable) income available per share to common stockholders for each quarter is computed using the weighted-average number of shares outstanding during the quarter, while earnings per share for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of (loss applicable) income available per share to common stockholders for each of the four quarters may not equal the fiscal year amount. |
Quarterly_Financial_Results_Ad
Quarterly Financial Results (Additional Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly Financial Information [Line Items] | |||||||||||
Full cost ceiling impairments | $164,800,000 | $0 | $0 | ||||||||
Asset impairment charges | 192,768,000 | 26,280,000 | 316,004,000 | ||||||||
(Gain) loss on derivative contracts | -334,011,000 | 47,123,000 | -241,419,000 | ||||||||
Permian Properties | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Gain (loss) on divestiture | -398,900,000 | -398,900,000 | |||||||||
Drilling Assets | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Asset impairment charges | 10,600,000 | 3,100,000 | 11,100,000 | ||||||||
Corporate Asset | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Asset impairment charges | 2,900,000 | 2,900,000 | |||||||||
Gas Treating Plants and other Midstream Assets | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Asset impairment charges | 10,000,000 | 2,100,000 | 600,000 | 12,200,000 | |||||||
Commodity Derivatives | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
(Gain) loss on derivative contracts | -329,200,000 | -132,600,000 | 85,300,000 | 42,500,000 | -22,900,000 | 132,800,000 | -103,700,000 | 40,900,000 | -334,000,000 | 47,100,000 | -241,400,000 |
Exploration and Production | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Full cost ceiling impairments | 164,800,000 | 164,800,000 | |||||||||
Exploration and Production | Permian Properties | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Gain (loss) on divestiture | -398,900,000 | ||||||||||
Drilling and Oil Field Services | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Asset impairment charges | $24,300,000 | $3,100,000 | $27,400,000 | $11,100,000 |