10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________

Form 10-Q/A

_____(Amendment No. 1)____

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number: 001-33784

__________________________

SANDRIDGE ENERGY, INC.

(Exact name of registrant as specified in its charter)

__________________________

Delaware	20-8084793
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
123 Robert S. Kerr Avenue Oklahoma City, Oklahoma	73102
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(405) 429-5500

Former name, former address and former fiscal year, if changed since last report: Not applicable

__________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	þ		Accelerated filer	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes oNo þ

The number of shares outstanding of the registrant’s common stock, par value $0.001 per share, as of the close of business on July 31, 2014, was 494,027,381.

References in this report to the “Company” and “SandRidge” mean SandRidge Energy, Inc., including its consolidated subsidiaries and variable interest entities of which it is the primary beneficiary.

DISCLOSURES REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (“Quarterly Report”) of the Company includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements express a belief, expectation or intention and generally are accompanied by words that convey projected future events or outcomes. These forward-looking statements may include projections and estimates concerning the Company’s capital expenditures, liquidity, capital resources and debt profile, the timing and success of specific projects, outcomes and effects of litigation, claims and disputes, elements of the Company’s business strategy, compliance with governmental regulation of the oil and natural gas industry, including environmental regulations, acquisitions and divestitures and the effects thereof on the Company’s financial condition and other statements concerning the Company’s operations and financial performance and condition. Forward-looking statements are generally accompanied by words such as “estimate,” “assume,” “target,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “could,” “may,” “foresee,” “plan,” “goal,” “should,” “intend” or other words that convey the uncertainty of future events or outcomes. The Company has based these forward-looking statements on its current expectations and assumptions about future events. These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments as well as other factors the Company believes are appropriate under the circumstances. The actual results or developments anticipated may not be realized or, even if substantially realized, may not have the expected consequences to or effects on the Company’s business or results. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in such forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company disclaims any obligation to update or revise these forward-looking statements unless required by law, and it cautions readers not to rely on them unduly. While the Company’s management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties relating to, among other matters, the risks and uncertainties discussed in “Risk Factors” in Item 1A of the Company’s amended Annual Report on Form 10-K/A for the fiscal year ended December 31, 2013 (the “2013 Form 10-K/A”) filed with the Securities and Exchange Commission (the “SEC”) on January 8, 2015.

Explanatory Note

The Company is filing this amendment on Form 10-Q/A (“Form 10-Q/A”) to amend its Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, originally filed with the SEC on August 7, 2014 (the “Original Filing”), to restate its unaudited condensed consolidated financial statements and related footnote disclosures for the three and six-month periods ended June 30, 2014 and 2013. This Form 10-Q/A also amends certain other items in the Original Filing, as listed in “Items Amended in this Form 10-Q/A” below.

Restatement

On November 4, 2014, the Company filed a Current Report on Form 8-K, stating that (i) the consolidated financial statements of the Company for the periods ended December 31, 2013 and 2012 included in the Company’s Annual Reports on Form 10-K for the periods then ended and (ii) the unaudited consolidated financial statements of the Company for the periods ended June 30, 2014, March 31, 2014, September 30, 2013, June 30, 2013 and March 31, 2013 included in the Company’s Quarterly Reports on Form 10-Q for the periods then ended should no longer be relied upon due to potential changes related to the accrual of a liability associated with the under delivery by the Company of CO₂ to Occidental Petroleum Corporation’s (“Occidental”) Century Plant in Pecos County, Texas (the “Century Plant”) or elsewhere.

Historically, based on its determination of the appropriate method of accounting for the annual CO₂ delivery shortfall penalty, the Company did not evaluate whether an accrual was needed within each quarterly period prior to the fourth quarter. As a result of consultation with the staff of the SEC, the Company has determined to adopt a different method of accounting for the penalty, which method considers, on a quarterly basis, whether a portion of the annual shortfall delivery penalty should be accrued at the end of each quarter. After applying this method, the Company concluded that it should restate its previously issued unaudited condensed consolidated financial statements for the quarterly and year-to-date periods ended June 30, 2014, March 31, 2014, September 30, 2013, June 30, 2013 and March 31, 2013. The effect of such corrections is to transfer a portion of the annual accrual that was previously recorded at year-end to certain of the quarter-end periods within such calendar year. No changes are being made to the annual accruals previously recorded. For the three and six-month periods ended June 30, 2014 and 2013, the correction of these errors resulted in the accrual of (i) $8.5 million and $16.8 million in CO₂ under delivery shortfall penalties, for the three and six-month periods ended June 30, 2014, respectively, and (ii) $8.1 million and $16.0 million in CO₂ under delivery shortfall penalties, for the three and six-month periods ended June 30, 2013, respectively, which were previously included in the total 2013 annual delivery shortfall penalty of $32.7 million recorded in the fourth quarter of 2013. The correction of these errors in the unaudited condensed consolidated financial statements for the three and six-month periods ended June 30, 2013 did not have any impact to the statement of operations or statement of cash flows for the year ended December 31, 2013 or to the balance sheet as of December 31, 2013. As a result of the above-described adjustments, the Company is presenting in this Form 10-Q/A restated condensed consolidated financial statements for the periods indicated above.

Revision

Additionally, as a result of consultation with the staff of the SEC, the Company has determined that construction of the Century Plant under a construction contract with Occidental should have been accounted for under the full cost method of accounting rather than the completed contract method of accounting. As of June 30, 2014 and December 31, 2013, this change in accounting treatment had no impact on total assets, total liabilities, net income or retained earnings, but resulted in (i) certain equal and offsetting adjustments within current assets or current liabilities as of June 30, 2014 and December 31, 2013 and (ii) certain equal and offsetting adjustments within items comprising net cash provided by operating activities for the six-month periods ended June 30, 2014 and 2013. The Company has determined that none of these revisions are material to the unaudited condensed consolidated financial statements for any of the periods presented in the Original Filing; however, in conjunction with the Company’s need to file this Form 10-Q/A as a result of the error noted above, the Company has determined that it would be appropriate within this Form 10-Q/A to record all such adjustments.

See “Note 2 - Restatement of Previously Issued Financial Statements” of this Form 10-Q/A for more information regarding the impact of the above-described adjustments.

Internal Control Consideration

The Company’s management has determined that the absence of an evaluation of whether an accrual for the annual CO₂ delivery shortfall penalty was required within each quarterly period prior to the fourth quarter, in accordance with its prior method of accounting, was a deficiency in its internal control over financial reporting that constitutes a material weakness, as defined by SEC regulations, at June 30, 2014. For a discussion of management’s consideration of the Company’s disclosure controls and procedures and the material weakness identified, see Part I. Item 4 included in this Form 10-Q/A.

Items Amended in this Form 10-Q/A

This Form 10-Q/A sets forth the Original Filing, in its entirety, as modified and superseded as necessary to reflect the restatement. The following items in the Original Filing have been amended as a result of, and to reflect, the restatement:

A. Part I, Item 1. Financial Statements

B. Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

C. Part I, Item 4. Controls and Procedures

D. Part II, Item 6. Exhibits

This Form 10-Q/A is presented as of the filing date of the Original Filing and does not reflect events occurring after that date, or modify or update the information contained therein in any way other than as required to reflect the restatement described above.

In accordance with rule 12b-15 under the Exchange Act, as amended, this Form 10-Q/A includes certifications from the Company’s Chief Executive Officer and Chief Financial Officer as of the date of this filing.

SANDRIDGE ENERGY, INC.

FORM 10-Q/A

Quarter Ended June 30, 2014

INDEX

PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements (Unaudited)	4
	Condensed Consolidated Balance Sheets (restated)	4
	Condensed Consolidated Statements of Operations (restated)	6
	Condensed Consolidated Statement of Changes in Equity (restated)	7
	Condensed Consolidated Statements of Cash Flows (restated)	8
	Notes to Condensed Consolidated Financial Statements (restated)	9
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	53
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	70
ITEM 4.	Controls and Procedures	73
PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings	74
ITEM 1A.	Risk Factors	76
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	77
ITEM 6.	Exhibits	77

PART I. Financial Information

ITEM 1.Financial Statements

SANDRIDGE ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

	June 30, 2014 (Restated)			December 31, 2013 (Revised)
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	918,758		$	814,663
Accounts receivable, net	333,300			349,218
Derivative contracts	115			12,779
Prepaid expenses	12,337			39,253
Other current assets	25,106			25,910
Total current assets	1,289,616			1,241,823
Oil and natural gas properties, using full cost method of accounting
Proved	10,807,088			10,972,816
Unproved	309,043			531,606
Less: accumulated depreciation, depletion and impairment	(6,138,833		)	(5,762,969		)
	4,977,298			5,741,453
Other property, plant and equipment, net	564,521			566,222
Derivative contracts	2,826			14,126
Other assets	78,558			121,171
Total assets	$	6,912,819		$	7,684,795

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

SANDRIDGE ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - Continued

(In thousands, except per share data)

	June 30, 2014 (Restated)			December 31, 2013 (Revised)
	(Unaudited)
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	648,434		$	812,488
Derivative contracts	56,728			34,267
Asset retirement obligations	—			87,063
Other current liabilities	19,171			—
Total current liabilities	724,333			933,818
Long-term debt	3,195,165			3,194,907
Derivative contracts	5,533			20,564
Asset retirement obligations	55,210			337,054
Other long-term obligations	19,152			22,825
Total liabilities	3,999,393			4,509,168
Commitments and contingencies (Note 12)
Equity
SandRidge Energy, Inc. stockholders’ equity
Preferred stock, $0.001 par value, 50,000 shares authorized
8.5% Convertible perpetual preferred stock; 2,650 shares issued and outstanding at June 30, 2014 and December 31, 2013; aggregate liquidation preference of $265,000	3			3
6.0% Convertible perpetual preferred stock; 2,000 shares issued and outstanding at June 30, 2014 and December 31, 2013; aggregate liquidation preference of $200,000	2			2
7.0% Convertible perpetual preferred stock; 3,000 shares issued and outstanding at June 30, 2014 and December 31, 2013; aggregate liquidation preference of $300,000	3			3
Common stock, $0.001 par value, 800,000 shares authorized; 495,687 issued and 494,546 outstanding at June 30, 2014 and 491,609 issued and 490,290 outstanding at December 31, 2013	485			483
Additional paid-in capital	5,307,814			5,298,301
Additional paid-in capital—stockholder receivable	(3,750		)	(3,750		)
Treasury stock, at cost	(7,295		)	(8,770		)
Accumulated deficit	(3,657,455		)	(3,460,462		)
Total SandRidge Energy, Inc. stockholders’ equity	1,639,807			1,825,810
Noncontrolling interest	1,273,619			1,349,817
Total equity	2,913,426			3,175,627
Total liabilities and equity	$	6,912,819		$	7,684,795

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

SANDRIDGE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2014 (Restated)			2013 (Restated)			2014 (Restated)			2013 (Restated)
	(Unaudited)
Revenues
Oil, natural gas and NGL	$	339,906		$	454,282		$	745,222		$	932,299
Drilling and services	18,852			16,078			35,932			33,448
Midstream and marketing	14,874			15,198			32,784			28,230
Construction contract	—			23,253			—			23,253
Other	1,082			4,176			3,832			7,447
Total revenues	374,714			512,987			817,770			1,024,677
Expenses
Production	66,953			124,883			173,809			265,340
Production taxes	7,840			6,564			15,647			16,003
Cost of sales	10,469			15,348			22,950			31,665
Midstream and marketing	13,254			14,927			29,254			26,730
Construction contract	—			23,253			—			23,253
Depreciation and depletion—oil and natural gas	97,267			138,903			212,452			296,429
Depreciation and amortization—other	15,411			16,022			30,933			31,358
Accretion of asset retirement obligations	1,065			9,800			6,811			19,579
Impairment	3,133			15,643			167,912			15,643
General and administrative	31,102			65,541			61,531			134,587
Employee termination benefits	813			107,720			8,922			118,118
Loss (gain) on derivative contracts	85,292			(103,654		)	127,783			(62,757		)
Loss (gain) on sale of assets	36			(349		)	17			397,825
Total expenses	332,635			434,601			858,021			1,313,773
Income (loss) from operations	42,079			78,386			(40,251		)	(289,096		)
Other income (expense)
Interest expense	(61,863		)	(61,159		)	(123,906		)	(147,069		)
Loss on extinguishment of debt	—			—			—			(82,005		)
Other income (expense), net	1,338			(106		)	3,432			505
Total other expense	(60,525		)	(61,265		)	(120,474		)	(228,569		)
(Loss) income before income taxes	(18,446		)	17,121			(160,725		)	(517,665		)
Income tax (benefit) expense	(1,194		)	508			(1,067		)	4,937
Net (loss) income	(17,252		)	16,613			(159,658		)	(522,602		)
Less: net income (loss) attributable to noncontrolling interest	15,642			45,121			9,572			(6,798		)
Net loss attributable to SandRidge Energy, Inc.	(32,894		)	(28,508		)	(169,230		)	(515,804		)
Preferred stock dividends	13,881			13,881			27,763			27,763
Loss applicable to SandRidge Energy, Inc. common stockholders	$	(46,775	)	$	(42,389	)	$	(196,993	)	$	(543,567	)
Loss per share
Basic	$	(0.10	)	$	(0.09	)	$	(0.41	)	$	(1.14	)
Diluted	$	(0.10	)	$	(0.09	)	$	(0.41	)	$	(1.14	)
Weighted average number of common shares outstanding
Basic	485,318			479,154			485,059			478,494
Diluted	485,318			479,154			485,059			478,494

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

SANDRIDGE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(In thousands)

	SandRidge Energy, Inc. Stockholders
	Convertible Perpetual Preferred Stock			Common Stock			Additional Paid-In Capital			Treasury Stock			Accumulated Deficit			Non-controlling Interest			Total
	Shares	Amount		Shares	Amount
	(Unaudited)
Six Months Ended June 30, 2014 (Restated)
Balance at December 31, 2013	7,650	$	8	490,290	$	483	$	5,294,551		$	(8,770	)	$	(3,460,462	)	$	1,349,817		$	3,175,627
Acquisition of ownership interest	—	—		—	—		(2,074		)	—			—			(656		)	(2,730		)
Sale of royalty trust units	—	—		—	—		4,091			—			—			18,028			22,119
Distributions to noncontrolling interest owners	—	—		—	—		—			—			—			(103,142		)	(103,142		)
Purchase of treasury stock	—	—		—	—		—			(3,865		)	—			—			(3,865		)
Retirement of treasury stock	—	—		—	—		(3,865		)	3,865			—			—			—
Stock distributions, net of purchases - retirement plans	—	—		178	—		(2,138		)	1,475			—			—			(663		)
Stock-based compensation	—	—		—	—		13,499			—			—			—			13,499
Stock-based compensation excess tax benefit	—	—		—	—		2			—			—			—			2
Issuance of restricted stock awards, net of cancellations	—	—		4,078	2		(2		)	—			—			—			—
Net (loss) income	—	—		—	—		—			—			(169,230		)	9,572			(159,658		)
Convertible perpetual preferred stock dividends	—	—		—	—		—			—			(27,763		)	—			(27,763		)
Balance at June 30, 2014 (Restated)	7,650	$	8	494,546	$	485	$	5,304,064		$	(7,295	)	$	(3,657,455	)	$	1,273,619		$	2,913,426

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

SANDRIDGE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Six Months Ended June 30,
	2014 (Restated)			2013 (Restated)
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(159,658	)	$	(522,602	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation, depletion and amortization	243,385			327,787
Accretion of asset retirement obligations	6,811			19,579
Impairment	167,912			15,643
Debt issuance costs amortization	4,703			5,369
Amortization of discount, net of premium, on long-term debt	258			789
Loss on extinguishment of debt	—			82,005
Deferred income tax provision	—			4,015
Loss (gain) on derivative contracts	127,783			(62,757		)
Cash paid on settlement of derivative contracts	(52,261		)	(6,075		)
Loss on sale of assets	17			397,825
Stock-based compensation	11,625			72,415
Other	(49		)	2,057
Changes in operating assets and liabilities	(119,734		)	48,633
Net cash provided by operating activities	230,792			384,683
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures for property, plant and equipment	(656,699		)	(828,585		)
Acquisition of assets	(16,553		)	(8,602		)
Proceeds from sale of assets	707,799			2,563,886
Net cash provided by investing activities	34,547			1,726,699
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowings	—			(1,115,500		)
Premium on debt redemption	—			(61,997		)
Debt issuance costs	—			(91		)
Proceeds from sale of royalty trust units	22,119			—
Noncontrolling interest distributions	(103,142		)	(98,716		)
Acquisition of ownership interest	(2,730		)	—
Stock-based compensation excess tax benefit	2			—
Purchase of treasury stock	(5,602		)	(28,468		)
Dividends paid — preferred	(27,763		)	(27,763		)
Cash (paid) received on settlement of financing derivative contracts	(44,128		)	5,728
Net cash used in financing activities	(161,244		)	(1,326,807		)
NET INCREASE IN CASH AND CASH EQUIVALENTS	104,095			784,575
CASH AND CASH EQUIVALENTS, beginning of year	814,663			309,766
CASH AND CASH EQUIVALENTS, end of period	$	918,758		$	1,094,341
Supplemental Disclosure of Cash Flow Information
Cash paid for interest, net of amounts capitalized	$	(120,339	)	$	(156,800	)
Cash paid for income taxes	$	(1,932	)	$	(2,525	)
Supplemental Disclosure of Noncash Investing and Financing Activities
Deposit on pending sale	$	—		$	(255,000	)
Change in accrued capital expenditures	$	3,989		$	52,715
Asset retirement costs capitalized	$	1,944		$	2,421

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

SANDRIDGE ENERGY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

Nature of Business. SandRidge Energy, Inc. is an oil and natural gas company with a principal focus on exploration and production activities in the Mid-Continent region of the United States. The Company owns and operates additional interests in west Texas. The Company also operates businesses and infrastructure systems that are complementary to its primary exploration and production activities, including gas gathering and processing facilities, marketing operations, a saltwater gathering system, an electrical transmission system and a drilling and related oil field services business.

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned or majority owned subsidiaries and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Noncontrolling interest represents third-party ownership interests in the Company’s subsidiaries and consolidated VIEs and is included as a component of equity in the consolidated balance sheets and consolidated statement of changes in equity. All significant intercompany accounts and transactions have been eliminated in consolidation.

Variable Interest Entities. An entity is referred to as a VIE if it possesses one of the following criteria: (i) it is thinly capitalized, (ii) the residual equity holders do not control the entity, (iii) the equity holders are shielded from the economic losses, (iv) the equity holders do not participate fully in the entity’s residual economics, or (v) the entity was established with non-substantive voting interests. The Company consolidates a VIE when it has determined it is the primary beneficiary, which requires significant judgment. The primary beneficiary of a VIE is that variable interest holder possessing a controlling financial interest through (i) its power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) its obligation to absorb losses or its right to receive benefits from the VIE that could potentially be significant to the VIE. In order to determine whether the Company owns a variable interest in a VIE and the significance of the variable interest, the Company performs a qualitative analysis of the entity’s design, organizational structure, primary decision makers and related financial agreements. In addition to the VIEs that the Company consolidates, the Company also holds a variable interest in another VIE that is not consolidated as it was determined that the Company is not the primary beneficiary. The Company monitors both consolidated and unconsolidated VIEs to determine if any events have occurred that could cause the primary beneficiary to change. See Note 4 for discussion of the Company’s significant associated VIEs.

Interim Financial Statements. The accompanying unaudited condensed consolidated financial statements as of December 31, 2013 have been derived from the audited financial statements contained in the Company’s amended Annual Report on Form 10-K/A (“2013 Form 10-K/A”) filed on January 8, 2015. The unaudited condensed consolidated financial statements have been prepared by the Company in accordance with the accounting policies stated in the audited consolidated financial statements contained in the 2013 Form 10-K/A. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, all adjustments, which consist of normal recurring adjustments, unless otherwise disclosed herein, necessary to state fairly the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the 2013 Form 10-K/A.

Significant Accounting Policies. For a description of the Company’s significant accounting policies, see Note 1 of the consolidated financial statements included in the 2013 Form 10-K/A.

Reclassifications. Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications have no effect on the Company’s previously reported results of operations.

Restatement and Revision of Prior Period Financial Statements. See Note 2 “Restatement of Previously Issued Financial Statements” for a discussion of changes made during the second quarter of 2014 to the accompanying unaudited condensed consolidated financial statements.

Use of Estimates. The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

9

SANDRIDGE ENERGY, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The more significant areas requiring the use of assumptions, judgments and estimates include: oil, natural gas and natural gas liquids (“NGL”) reserves; cash flow estimates used in the valuation of guarantees; impairment tests of long-lived assets; depreciation, depletion and amortization; asset retirement obligations; assignments of fair value and allocations of purchase price in connection with business combinations; determinations of significant alterations to the full cost pool and related estimates of fair value used to allocate the full cost pool net book value to divested properties, as necessary; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes these estimates are reasonable, actual results could differ significantly.

Recent Accounting Pronouncements Not Yet Adopted. In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain of the provisions also amend or supersede existing guidance applicable to the recognition of a gain or loss on transfers of nonfinancial assets that are not an output of an entity’s ordinary activities, including sales of property, plant and equipment and real estate. The requirements of ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period with an option of using either a full retrospective or a modified approach for adoption. The Company is currently evaluating the effect, if any, that the updated standard will have on its consolidated financial statements and related disclosures.

2. Restatement of Previously Issued Financial Statements

Overview

The Company has determined there were errors in the timing of its accrual of annual CO₂ delivery shortfall penalties incurred under its 30-year treating agreement with Occidental Petroleum Corporation (“Occidental”) and has determined that these errors were material to previously issued unaudited condensed consolidated financial statements for the three and six-month periods ended June 30, 2014 and 2013. For the three and six-month periods ended June 30, 2014 and 2013, the correction of these errors resulted in the accrual of (i) $8.5 million and $16.8 million in CO₂ under delivery shortfall penalties, for the three and six-month periods ended June 30, 2014, respectively, and (ii) $8.1 million and $16.0 million in CO₂ delivery shortfall penalties, for the three and six-month periods ended June 30, 2013, respectively, which were previously included in the total 2013 annual delivery shortfall penalty of $32.7 million recorded in the fourth quarter of 2013. As a result, these statements have been presented on a restated and amended basis in this Form 10-Q/A. The correction of these errors in the financial statements for the three and six-month periods ended June 30, 2013 did not have any impact to the statement of operations or statement of cash flows for the year ended December 31, 2013 or to the balance sheet as of December 31, 2013.

Additionally, the Company has made certain revisions to its condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 in order to account for activities associated with construction of the Century Plant in Pecos County, Texas (the “Century Plant”) under the full cost method of accounting. The Company has determined that these revisions are not material to the originally issued financial statements; however, in conjunction with the Company’s need to restate its financial statements as a result of the error noted above, the Company has determined that it would be appropriate to make such revisions. The condensed consolidated balance sheet as of December 31, 2013 presented herein is consistent with the revised consolidated balance sheet included in the Company’s 2013 Form 10-K/A.

Financial Statement Presentation

In addition to the restatement of the Company’s unaudited condensed consolidated financial statements, certain information within the following notes to the unaudited condensed consolidated financial statements has been restated and/or revised to reflect the corrections presented in the tables below or to add disclosure language, as appropriate.

• Note 6. Property, Plant and Equipment

• Note 12. Commitments and Contingencies

• Note 15. Earnings (Loss) per Share

• Note 18. Business Segment Information

• Note 19. Condensed Consolidating Financial Information

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Condensed Consolidated Statements of Operations. The following table presents the impact of the error corrections on the Company’s previously reported unaudited condensed consolidated statements of operations for the three and six-month periods ended June 30, 2014 and 2013 (in thousands):

	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	As Reported			As Restated			As Reported			As Restated
Production	$	58,498		$	66,953		$	157,033		$	173,809
Total expenses	$	324,180		$	332,635		$	841,245		$	858,021
Income (loss) from operations	$	50,534		$	42,079		$	(23,475	)	$	(40,251	)
Loss before income taxes	$	(9,991	)	$	(18,446	)	$	(143,949	)	$	(160,725	)
Net loss	$	(8,797	)	$	(17,252	)	$	(142,882	)	$	(159,658	)
Net loss attributable to SandRidge Energy, Inc.	$	(24,439	)	$	(32,894	)	$	(152,454	)	$	(169,230	)
Loss applicable to SandRidge Energy, Inc. common stockholders	$	(38,320	)	$	(46,775	)	$	(180,217	)	$	(196,993	)
Loss per share
Basic	$	(0.08	)	$	(0.10	)	$	(0.37	)	$	(0.41	)
Diluted	$	(0.08	)	$	(0.10	)	$	(0.37	)	$	(0.41	)

	Three Months Ended June 30, 2013						Six Months Ended June 30, 2013
	As Reported			As Restated			As Reported			As Restated
Production	$	116,811		$	124,883		$	249,312		$	265,340
Total expenses	$	426,529		$	434,601		$	1,297,745		$	1,313,773
Income (loss) from operations	$	86,458		$	78,386		$	(273,068	)	$	(289,096	)
Income (loss) before income taxes	$	25,193		$	17,121		$	(501,637	)	$	(517,665	)
Net income (loss)	$	24,685		$	16,613		$	(506,574	)	$	(522,602	)
Net loss attributable to SandRidge Energy, Inc.	$	(20,436	)	$	(28,508	)	$	(499,776	)	$	(515,804	)
Loss applicable to SandRidge Energy, Inc. common stockholders	$	(34,317	)	$	(42,389	)	$	(527,539	)	$	(543,567	)
Loss per share
Basic	$	(0.07	)	$	(0.09	)	$	(1.10	)	$	(1.14	)
Diluted	$	(0.07	)	$	(0.09	)	$	(1.10	)	$	(1.14	)

Condensed Consolidated Statements of Cash Flows. The following table presents the impact of the error corrections on the Company’s previously reported unaudited condensed consolidated statements of cash flows for the six-month periods ended June 30, 2014 and 2013 (in thousands):

	Six Months Ended June 30, 2014						Six Months Ended June 30, 2013
	As Reported			As Restated			As Reported			As Restated
Net loss	$	(142,882	)	$	(159,658	)	$	(506,574	)	$	(522,602	)
Changes in operating assets and liabilities	$	(136,510	)	$	(119,734	)	$	32,605		$	48,633

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Condensed Consolidated Balance Sheets. The Company has determined that unreimbursed costs incurred by the Company on behalf of Occidental during construction of the Century Plant that were previously presented as costs in excess of billings and contract loss should have been presented under the full cost method of accounting as an account receivable. Accordingly, the Company has restated and/or revised the unaudited condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 to reflect this presentation. This revision did not have any impact to total current assets as of June 30, 2014 or December 31, 2013. Additionally, the unaudited condensed consolidated balance sheet as of June 30, 2014 includes the accrual of a $16.8 million CO₂ under delivery shortfall penalty for the six-month period ended June 30, 2014 as described above.

The following tables present the impact of these adjustments on the Company’s previously reported unaudited condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 (in thousands):

	June 30, 2014
	As Reported			As Restated
Current assets
Costs in excess of billings and contract loss	$	3,435		$	—
Other current assets	$	21,671		$	25,106
Current liabilities
Accounts payable and accrued expenses	631,658			648,434
Total current liabilities	707,557			724,333
Total liabilities	3,982,617			3,999,393
Equity
Accumulated deficit	(3,640,679		)	(3,657,455		)
Total SandRidge Energy, Inc. stockholders’ equity	1,656,583			1,639,807
Total equity	2,930,202			2,913,426

	December 31, 2013
	As Reported		As Revised
Current assets
Costs in excess of billings and contract loss	$	4,079	$	—
Other current assets	$	21,831	$	25,910

3. Divestitures

Sale of Permian Properties

On February 26, 2013, the Company sold all of its oil and natural gas properties in the Permian Basin in west Texas, excluding the assets attributable to the SandRidge Permian Trust’s (the “Permian Trust”) area of mutual interest, (the “Permian Properties”) for $2.6 billion. This transaction resulted in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company recorded a $399.1 million loss on the sale for the six-month period ended June 30, 2013. The loss is included in loss (gain) on sale of assets in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2013. The loss was calculated based on a comparison of proceeds received and the asset retirement obligations attributable to the Permian Properties that were assumed by the buyer to the sum of (i) an allocation of the historical net book value of the Company’s proved oil and natural gas properties attributable to the Permian Properties, (ii) the historical cost of unproved acreage sold and (iii) costs incurred by the Company to sell these properties. The allocated net book value attributable to the Permian Properties was calculated based on the relative fair value of the Permian Properties and the remaining proved oil and natural gas properties retained by the Company as of the date of sale. A portion of the loss, totaling $71.7 million, was allocated to noncontrolling interests and is reflected in net income (loss) attributable

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

to noncontrolling interest in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2013.

The following table presents revenues and direct operating expenses of the Permian Properties included in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2013 (in thousands):

	Six Months Ended June 30, 2013(1)
Revenues	$	68,027
Direct operating expenses	$	17,453

__________________

(1) Includes revenues and direct operating expenses through February 26, 2013, the date of sale.

Sale of Gulf of Mexico and Gulf Coast Properties

On February 25, 2014, the Company sold subsidiaries that owned the Company’s Gulf of Mexico and Gulf Coast oil and natural gas properties (the “Gulf Properties”) for approximately $703.5 million, net of working capital adjustments and post-closing adjustments, and the buyer’s assumption of approximately $366.0 million of related asset retirement obligations to Fieldwood Energy LLC (“Fieldwood”). This transaction did not result in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company recorded the proceeds as a reduction of its full cost pool with no gain or loss on the sale. See Note 16 for discussion of Fieldwood’s related party affiliation with the Company.

In accordance with the terms of the sale, the Company agreed to guarantee on behalf of Fieldwood certain plugging and abandonment obligations associated with the Gulf Properties for a period of up to one year from the date of closing. The Company recorded a liability equal to the fair value of these guarantees, or $9.4 million, at the time the transaction closed. As of June 30, 2014, the fair value of the guarantees was approximately $12.0 million. See Note 5 for additional discussion of the determination of the guarantees’ fair value. The guarantees do not include a limit on the potential future payments for which the Company could be obligated; however, Fieldwood has agreed to indemnify the Company for any costs it may incur as a result of the guarantees and to use its best efforts to pay any amounts sought from the Company by the Bureau of Ocean Energy Management that may arise prior to the expiration of the guarantees. Additionally, Fieldwood will maintain, for a period of up to one year from the closing date, restricted deposits totaling approximately $28.0 million held in escrow for plugging and abandonment obligations associated with the Gulf Properties. Upon expiration of the guarantees, the Company will receive payment from Fieldwood for half of such restricted deposits, or approximately $14.0 million. A receivable for this amount is included in other current assets in the accompanying unaudited condensed consolidated balance sheet at June 30, 2014.

The following table presents revenues and expenses, including direct operating expenses, depletion, accretion of asset retirement obligations and general and administrative expenses, for the Gulf Properties included in the accompanying unaudited condensed consolidated statements of operations for the three-month period ended June 30, 2013 and the six-month periods ended June 30, 2014 and 2013 (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2013		2014(1)		2013
Revenues	$	170,219	$	90,920	$	345,275
Expenses	$	122,222	$	63,674	$	251,392

____________________

(1) Includes revenues and expenses through February 25, 2014, the date of the sale.

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(Unaudited)

4. Variable Interest Entities

The Company’s significant associated VIEs, including those for which the Company has determined it is the primary beneficiary and those for which it has determined it is not, are described below.

Royalty Trusts. SandRidge owns beneficial interests in three Delaware statutory trusts. SandRidge Mississippian Trust I (the “Mississippian Trust I”), the Permian Trust and SandRidge Mississippian Trust II (the “Mississippian Trust II”) (each individually, a “Royalty Trust” and collectively, the “Royalty Trusts”) completed initial public offerings of their common units in April 2011, August 2011 and April 2012, respectively. Concurrent with the closing of each offering, the Company conveyed certain royalty interests to each Royalty Trust in exchange for the net proceeds of the offering and units representing beneficial interests in the Royalty Trust. Royalty interests conveyed to the Royalty Trusts are in existing wells and wells to be drilled on oil and natural gas properties leased by the Company in defined areas of mutual interest. The following table summarizes information about each Royalty Trust:

	Mississippian Trust I	Permian Trust	Mississippian Trust II
Total outstanding common units	21,000,000	39,375,000	37,293,750
Total outstanding subordinated units	7,000,000	13,125,000	12,431,250
Liquidation date(1)	12/31/2030	3/31/2031	12/31/2031

____________________

(1) At the time each Royalty Trust terminates, 50% of the royalty interests conveyed to the Royalty Trust will automatically revert to the Company, and the remaining 50% will be sold with the proceeds distributed to the Royalty Trust unitholders.

The Royalty Trusts make quarterly cash distributions to unitholders based on calculated distributable income. In order to provide support for cash distributions on the common units, the Company agreed to subordinate a portion of the units it owns in each Royalty Trust (the “subordinated units”), which constitute 25% of the total outstanding units of each Royalty Trust. The subordinated units are entitled to receive pro rata distributions from the Royalty Trusts each quarter if and to the extent there is sufficient cash to provide a cash distribution on the common units that is no less than the applicable quarterly subordination threshold. If there is not sufficient cash to fund such a distribution on all common units, the distribution made with respect to the subordinated units is reduced or eliminated for such quarter in order to make a distribution, to the extent possible, of up to the subordination threshold amount on all common units, including common units held by the Company. In exchange for agreeing to subordinate a portion of its Royalty Trust units, SandRidge is entitled to receive incentive distributions equal to 50% of the amount by which the cash available for distribution on all of the Royalty Trust units exceeds the applicable quarterly incentive threshold.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The Royalty Trusts declared and paid quarterly distributions during the three and six-month periods ended June 30, 2014 and 2013 as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014(1)		2013		2014(2)		2013
Total distributions	$	59,672	$	68,449	$	127,985	$	144,810
Distributions to third-party unitholders	$	50,024	$	47,459	$	103,142	$	98,716

____________________

(1) Subordination thresholds were not met for the Mississippian Trust I’s and Mississippian Trust II’s distributions, resulting in reduced distributions to the Company on its subordinated units for this period.

(2) Subordination thresholds were not met for the Mississippian Trust I’s distributions, resulting in reduced distributions to the Company on its subordinated units for this period.

See Note 20 for discussion of the Royalty Trusts’ distributions announced in July 2014.

Pursuant to the trust agreements governing the Royalty Trusts, SandRidge has committed to loan funds to the each Royalty Trust on an unsecured basis, with terms substantially the same as would be obtained in an arm’s length transaction between SandRidge and an unaffiliated party, if at any time the Royalty Trust’s cash is not sufficient to pay ordinary course administrative expenses as they become due. Any funds loaned may not be used to satisfy indebtedness of the Royalty Trust or to make distributions. There were no amounts outstanding under the loan commitments at June 30, 2014 or December 31, 2013.

The Company and one of its wholly owned subsidiaries entered into a development agreement with each Royalty Trust that obligates the Company to drill, or cause to be drilled, a specified number of wells within respective areas of mutual interest, which arealso subject to the royalty interests granted to the Mississippian Trust I, the Permian Trust and the Mississippian Trust II, by December 31, 2015, March 31, 2016 and December 31, 2016, respectively. Following the end of the fourth full calendar quarter subsequent to the Company’s satisfaction of its drilling obligation (the “subordination period”), the subordinated units of each Royalty Trust will automatically convert into common units on a one-for-one basis and the Company’s right to receive incentive distributions will terminate. One of the Company’s wholly owned subsidiaries also granted to each Royalty Trust a lien on the Company’s interests in the properties where the development wells will be drilled in order to secure the estimated amount of drilling costs for the Royalty Trust’s interests in the wells. As the Company fulfills its drilling obligation to each Royalty Trust, development wells that have been drilled and perforated for completion are released from the lien and the total amount that may be recovered by each Royalty Trust is proportionately reduced. As of June 30, 2014, the total maximum amount recoverable by the Permian Trust and the Mississippian Trust II under the remaining liens was approximately $48.2 million. The Company fulfilled its drilling obligation to the Mississippian Trust I in the second quarter of 2013 and the related lien was released. See Note 20 for discussion of the conversion of Mississippian Trust I subordinated units to common units.

Additionally, the Company and each Royalty Trust entered into an administrative services agreement, pursuant to which the Company provides certain administrative services to the Royalty Trust, including hedge management services to the Permian Trust and the Mississippian Trust II. The Company also entered into derivatives agreements with each Royalty Trust, pursuant to which the Company provides to the Royalty Trust the economic effects of certain of the Company’s derivative contracts. Substantially concurrent with the execution of the derivatives agreements with the Permian Trust and the Mississippian Trust II, the Company novated certain of the derivative contracts underlying the respective derivatives agreements to each of these Royalty Trusts. The Company novated additional derivative contracts underlying the derivatives agreements to the Permian Trust in April 2012 and to the Permian Trust and the Mississippian Trust II in March 2013. The tables below present the open oil and natural gas commodity derivative contracts at June 30, 2014 underlying the derivatives agreements. The combined volume in the tables below reflects the total volume of the Royalty Trusts’ open oil and natural gas commodity derivative contracts.

Oil Price SwapsUnderlying the Royalty Trust Derivatives Agreements

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	823	$	101.01
January 2015 - December 2015	904	$	97.78

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Natural Gas Collars Underlying the Royalty Trust Derivatives Agreements

	Notional (MMcf)	Collar Range
July 2014 - December 2014	472	$	4.00	—	$	7.78
January 2015 - December 2015	1,010	$	4.00	—	$	8.55

Oil Price Swaps Underlying the Derivatives Agreements and Novated to the Royalty Trusts

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	473	$	100.76
January 2015 - March 2015	141	$	100.90

See Note 10 for further discussion of the derivatives agreement between the Company and each Royalty Trust.

The Royalty Trusts are considered VIEs due to the lack of voting or similar decision-making rights of the Royalty Trusts’ equity holders regarding activities that have a significant effect on the economic success of the Royalty Trusts. The Company has determined it is the primary beneficiary of the Royalty Trusts as it has (a) the power to direct the activities that most significantly impact the economic performance of the Royalty Trusts through (i) its participation in the creation and structure of the Royalty Trusts, (ii) the manner in which it fulfills its drilling obligations to the Royalty Trusts and (iii) its operation of a majority of the oil and natural gas properties that are subject to the conveyed royalty interests and marketing of the associated production and (b) the obligation to absorb losses and right to receive residual returns, through its variable interests in the Royalty Trusts, including ownership of common and subordinated units, that could potentially be significant to the Royalty Trusts. As a result, the Company consolidates the activities of the Royalty Trusts into its results of operations. Amounts attributable to the common units of the Royalty Trusts owned by third parties are reflected as noncontrolling interest in the consolidated financial statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Each Royalty Trust’s assets can be used to settle only that Royalty Trust’s obligations and not other obligations of the Company or another Royalty Trust. The Royalty Trusts’ creditors have no contractual recourse to the general credit of the Company. Although the Royalty Trusts are included in the Company’s consolidated financial statements, the Company’s legal interest in the Royalty Trusts’ assets is limited to its ownership of the Royalty Trusts’ units. At both June 30, 2014 and December 31, 2013, $1.3 billion of noncontrolling interest in the accompanying unaudited condensed consolidated balance sheets was attributable to the Royalty Trusts. The Royalty Trusts’ assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheets at June 30, 2014 and December 31, 2013 consisted of the following (in thousands):

	June 30, 2014			December 31, 2013
Cash and cash equivalents(1)	$	6,722		$	7,912
Accounts receivable, net	18,887			22,540
Derivative contracts	—			4,983
Total current assets	25,609			35,435
Investment in royalty interests(2)	1,325,942			1,325,942
Less: accumulated depletion and impairment(3)	(258,186		)	(186,095		)
	1,067,756			1,139,847
Derivative contracts	—			1,476
Total assets	$	1,093,365		$	1,176,758
Accounts payable and accrued expenses	$	2,318		$	3,393
Derivative contracts, current	968			—
Total liabilities	$	3,286		$	3,393

____________________

(1) Includes $3.0 million held by the trustee at June 30, 2014 and December 31, 2013 as reserves for future general and administrative expenses.

(2) Investment in royalty interests is included in oil and natural gas properties in the accompanying unaudited condensed consolidated balance sheets.

(3) Accumulated depletion and impairment at June 30, 2014 includes full cost ceiling limitation impairment allocated to the Royalty Trusts of $42.3 million. There was no full cost ceiling limitation impairment allocated to the Royalty Trusts as of December 31, 2013.

During the six-month period ended June 30, 2014, the Company sold Permian Trust common units it owned in a transaction exempt from registration pursuant to Rule 144 under the Securities Act for proceeds of approximately $22.1 million. The sale was accounted for as an equity transaction with no gain or loss recognized. The Company continues to be the primary beneficiary of the Permian Trust after consideration of this transaction and continues to consolidate the activities of the Permian Trust as well as the activities of the Mississippian Trust I and Mississippian Trust II. The Company’s beneficial interests in the Royalty Trusts at June 30, 2014 and December 31, 2013 were as follows:

	June 30, 2014		December 31, 2013
Mississippian Trust I	26.9	%	26.9	%
Permian Trust	25.0	%	28.5	%
Mississippian Trust II	37.6	%	37.6	%

See Note 12 for discussion of the Company’s legal proceedings to which the Mississippian Trust I and Mississippian Trust II are also parties.

Grey Ranch Plant, L.P. Primarily engaged in treating and transportation of natural gas, Grey Ranch Plant, L.P. (“GRLP”) is a limited partnership that operated the Company’s Grey Ranch plant (the “Plant”) located in Pecos County, Texas. As of December 31, 2013, the Company owned a 50% interest in GRLP, which represented a variable interest. Income or loss of GRLP was allocated to the partners based on ownership percentage and any operating or cash shortfalls required contributions from the partners. The Company determined that GRLP qualified as a VIE because certain equity holders lacked the ability to participate in decisions impacting GRLP. Agreements related to the ownership and operation of GRLP provided for GRLP to pay management fees to the

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(Unaudited)

Company to operate the Plant and lease payments for the Plant. Under the operating agreements, lease payments were reduced if throughput volumes were below those expected. The Company determined that it was the primary beneficiary of GRLP as it had both (i) the power, as operator of the Plant, to direct the activities of GRLP that most significantly impact its economic performance and (ii) the obligation to absorb losses, as a result of the operating and gathering agreements, that could potentially be significant to GRLP and, therefore, consolidated the activity of GRLP in its consolidated financial statements. The 50% ownership interest not held by the Company as of December 31, 2013 is presented as noncontrolling interest in the accompanying unaudited condensed consolidated financial statements. In March 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 March 2014, GRLP’s assets could only be used to settle its own obligations and not other obligations of the Company and GRLP’s creditors had no recourse to the general credit of the Company. At December 31, 2013, $0.7 million of noncontrolling interest in the accompanying unaudited condensed consolidated balance sheet was related to GRLP. GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheet at December 31, 2013 consisted of the following (in thousands):

	December 31, 2013
Cash and cash equivalents	$	132
Accounts receivable, net	16
Prepaid expenses	32
Other current assets	109
Total current assets	289
Other property, plant and equipment, net	1,163
Total assets	$	1,452
Accounts payable and accrued expenses	$	129
Total liabilities	$	129

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(Unaudited)

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 impact its economic performance and (ii) its obligation or right, as operator of the Plant, to absorb the losses of or receive benefits from Genpar that could potentially be significant to Genpar. As the primary beneficiary, the Company consolidated Genpar’s activity. However, its sole asset, the investment in GRLP, was eliminated in consolidation. Genpar had no liabilities. In March 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 and does not consolidate the results of PGC’s activities into its financial statements.

Amounts due from and due to PGC as of June 30, 2014 and December 31, 2013 included in the accompanying unaudited condensed consolidated balance sheets are as follows (in thousands):

	June 30, 2014		December 31, 2013
Accounts receivable due from PGC	$	1,672	$	741
Accounts payable due to PGC	$	4,486	$	3,634

5. 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

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(Unaudited)

Company has assets and liabilities classified as Level 1, Level 2 and Level 3 as of June 30, 2014 or December 31, 2013, as described below.

Level 1 Fair Value Measurements

Restricted deposits. The fair value of restricted deposits invested in mutual funds or municipal bonds is based on quoted market prices. For restricted deposits held in savings accounts, carrying value approximates fair value. Restricted deposits are included in other assets in the accompanying unaudited condensed consolidated balance sheet at December 31, 2013. There were no restricted deposits outstanding at June 30, 2014.

Investments. The fair value of investments, consisting of assets attributable to the Company’s non-qualified deferred compensation plan, is based on quoted market prices. Investments are included in other assets in the accompanying unaudited condensed consolidated balance sheets.

Level 2 Fair Value Measurements

Derivative contracts. The fair values of the Company’s oil and natural gas fixed price swaps and collars are based upon inputs that are either readily available in the public market, such as oil and natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets. Fair value is determined through the use of a discounted cash flow model or option pricing model using the applicable inputs, discussed above. The Company applies a weighted average credit default risk rating factor for its counterparties or gives effect to its credit default risk rating, as applicable, in determining the fair value of these derivative contracts. Credit default risk ratings are based on current published credit default swap rates.

Level 3 Fair Value Measurements

Guarantees. As discussed in Note 3, the Company has guaranteed on Fieldwood’s behalf certain plugging and abandonment obligations associated with the Gulf Properties. The fair value of these guarantees is based on the present value of estimated future payments for plugging and abandonment obligations associated with the Gulf Properties, adjusted for the cumulative probability of Fieldwood’s default prior to expiration of the guarantee by February 25, 2015 (3.71% at June 30, 2014). The discount and probability of default rates are based upon inputs that are readily available in the public market, such as historical option adjusted spreads of the Company’s senior notes, which are publicly traded, and historical default rates of publicly traded companies with credit ratings similar to Fieldwood. The significant unobservable input used in the fair value measurement of the guarantees is the estimate of future payments for plugging and abandonment, which was developed based upon third-party quotes and current actual costs. Significant increases (decreases) in the estimate of these payments could result in a significantly higher (lower) fair value measurement. The significant unobservable input used in the fair value measurement of the Company’s financial guarantee liability at June 30, 2014 is included in the table below (in thousands).

Unobservable Input
Estimated future payments for plugging and abandonment	$	426,661

Derivative contracts. The fair value of the Company’s oil basis swaps outstanding during the six-month period ended June 30, 2013 was based upon quotes obtained from counterparties to the derivative contracts. These values were reviewed internally for reasonableness through the use of a discounted cash flow model using non-exchange traded regional pricing information. Additionally, the Company applied a weighted average credit default risk rating factor for its counterparties or gave effect to its credit risk, as applicable, in determining the fair value of these derivative contracts. The significant unobservable input used in the fair value measurement of the Company’s oil basis swaps was the estimate of future oil basis differentials. Significant increases (decreases) in oil basis differentials could have resulted in a significantly higher (lower) fair value measurement. All of the oil basis swaps outstanding during 2013 contractually matured during the six-month period ended June 30, 2013.

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(Unaudited)

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):

June 30, 2014

	Fair Value Measurements						Netting(1)			Assets/Liabilities at Fair Value
	Level 1		Level 2		Level 3
Assets
Commodity derivative contracts	$	—	$	6,490	$	—	$	(3,549	)	$	2,941
Investments	10,740		—		—		—			10,740
	$	10,740	$	6,490	$	—	$	(3,549	)	$	13,681
Liabilities
Guarantees	$	—	$	—	$	12,028	$	—		$	12,028
Commodity derivative contracts	—		65,810		—		(3,549		)	62,261
	$	—	$	65,810	$	12,028	$	(3,549	)	$	74,289

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 for counterparties with which the right of offset exists.

The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for guarantees during the three and six-month periods ended June 30, 2014 (in thousands):

Level 3 Fair Value Measurements - Guarantees	Three Months Ended June 30, 2014		Six Months Ended June 30, 2014
Beginning balance	$	9,480	$	—
Issuances(1)	—		9,446
Loss on guarantees	2,548		2,582
Ending balance	$	12,028	$	12,028

____________________

(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 June 30, 2014 is included in other current liabilities in the accompanying unaudited condensed consolidated balance sheet.

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(Unaudited)

The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for commodity derivative contracts during the three and six-month periods ended June 30, 2013 (in thousands):

Level 3 Fair Value Measurements - Commodity Derivative Contracts	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
Beginning balance	$	(211	)	$	(512	)
Gain (loss) on derivative contracts	740			(133		)
Settlements (received) paid	(529		)	645
Ending balance	$	—		$	—

There were no outstanding Level 3 commodity derivative contracts at June 30, 2014 or 2013.

See Note 10 for further discussion of the Company’s derivative contracts.

The Company recognizes transfers between fair value hierarchy levels as of the end of the reporting period in which the event or change in circumstances causing the transfer occurred. During the three and six-month periods ended June 30, 2014 and 2013, the Company did not have any transfers between Level 1, Level 2 or Level 3 fair value measurements.

Fair Value of Financial Instruments

The Company measures the fair value of its senior notes using pricing for the senior notes that is readily available in the public market. The Company classifies these inputs as Level 2 in the fair value hierarchy. The estimated fair values and carrying values of the Company’s senior notes at June 30, 2014 and December 31, 2013 were as follows (in thousands):

	June 30, 2014				December 31, 2013
	Fair Value		Carrying Value		Fair Value		Carrying Value
8.75% Senior Notes due 2020(1)	$	483,750	$	445,062	$	486,000	$	444,736
7.5% Senior Notes due 2021(2)	1,273,465		1,178,708		1,230,813		1,178,922
8.125% Senior Notes due 2022	825,000		750,000		795,000		750,000
7.5% Senior Notes due 2023(3)	893,063		821,395		837,375		821,249

____________________

(1) Carrying value is net of $4,938 and $5,264 discount at June 30, 2014 and December 31, 2013, respectively.

(2) Carrying value includes a premium, applicable to notes issued in August 2012, of $3,708 and $3,922 at June 30, 2014 and December 31, 2013, respectively.

(3) Carrying value is net of $3,605 and $3,751 discount at June 30, 2014 and December 31, 2013, respectively.

See Note 9 for discussion of the Company’s long-term debt.

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(Unaudited)

6. Property, Plant and Equipment

Property, plant and equipment consists of the following (in thousands):

	June 30, 2014			December 31, 2013
Oil and natural gas properties
Proved(1)	$	10,807,088		$	10,972,816
Unproved	309,043			531,606
Total oil and natural gas properties	11,116,131			11,504,422
Less accumulated depreciation, depletion and impairment	(6,138,833		)	(5,762,969		)
Net oil and natural gas properties capitalized costs	4,977,298			5,741,453
Land	18,270			18,423
Non-oil and natural gas equipment(2)	614,198			600,603
Buildings and structures(3)	244,076			233,405
Total	876,544			852,431
Less accumulated depreciation and amortization	(312,023		)	(286,209		)
Other property, plant and equipment, net	564,521			566,222
Total property, plant and equipment, net	$	5,541,819		$	6,307,675

____________________

(1) Includes cumulative capitalized interest of approximately $29.0 million and $23.4 million at June 30, 2014 and December 31, 2013, respectively.

(2) Includes cumulative capitalized interest of approximately $4.3 million at both June 30, 2014 and December 31, 2013.

(3) Includes cumulative capitalized interest of approximately $14.4 million and $12.0 million at June 30, 2014 and December 31, 2013, respectively.

Accumulated depreciation, depletion and impairment on oil and natural gas properties includes cumulative full cost ceiling limitation impairment of $3.7 billion and $3.5 billion at June 30, 2014 and December 31, 2013, respectively. During the six-month period ended June 30, 2014, the Company reduced the net carrying value of its oil and natural gas properties by $164.8 million as a result of its first quarter full cost ceiling analysis.

Century Plant Construction Costs

Included in proved oil and natural gas properties is approximately $180.0 million of costs in excess of contracted and reimbursed amounts incurred by the Company during construction of the Century Plant in Pecos County, Texas pursuant to an agreement with Occidental. Due to the high-CO2 content of the Company’s reserves in the Piñon Field and the absence of adequate processing capacity in the Piñon Field area, construction of a large-scale processing facility, such as the Century Plant, was necessary for the development of the Company’s natural gas reserves in that area. The Company entered into the construction agreement and a related treating agreement with Occidental solely to facilitate the development of its reserves in the Piñon Field and greater West Texas Overthrust area and, accordingly, has recorded these unreimbursed costs as development costs within its full cost pool. See Note 12 for discussion of the related treating agreement.

Drilling Carry Commitments

The Company has agreements with two co-working interest parties, which contain carry commitments to fund a portion of its future drilling, completing and equipping costs within areas of mutual interest. The Company recorded approximately $175.4 million for Repsol E&P USA, Inc.’s (“Repsol”) carry during the six-month period ended June 30, 2014, and a combined $248.3 million for both Atinum MidCon I, LLC’s (“Atinum”) and Repsol’s drilling carries during the six-month periods ended June 30, 2013, which reduced the Company’s capital expenditures for the respective periods. Atinum fully funded its carry commitment in the third quarter of 2013. The Company expects Repsol to fully fund its carry commitment during 2014.

Under the agreement with Repsol, the remaining carry commitment could be reduced if a certain number of wells are not drilled within the area of mutual interest during a twelve-month period and the Company fails to drill such wells following a

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(Unaudited)

proposal by Repsol to drill the wells.  During 2013, the Company temporarily reduced its rate of drilling activity. As a result, the Company drilled less than the targeted number of wells for such twelve-month period, which resulted in Repsol having a right to propose additional wells. In June 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 June 30, 2014, the Company has drilled 143 net wells under this arrangement and currently anticipates satisfying its drilling commitment within the required time period. The Company has no other drilling obligation to Repsol.

7. Other Assets

Other assets consist of the following (in thousands):

	June 30, 2014		December 31, 2013
Debt issuance costs, net of amortization	$	57,220	$	61,923
Investments	10,740		13,708
Deferred tax asset	7,143		—
Restricted deposits(1)	—		27,955
Notes receivable on asset retirement obligations(1)	—		11,640
Other	3,455		5,945
Total other assets	$	78,558	$	121,171

____________________

(1) Assets reflected at December 31, 2013 were included in the sale of the Gulf Properties in February 2014, as discussed in Note 3.

8. Construction Contracts

Transmission Expansion Projects. In the second quarter of 2013, the Company substantially completed the construction of a series of electrical transmission expansion and upgrade projects in northern Oklahoma for a third party. The Company constructed these projects for a contract price of $23.3 million, which included agreed upon change orders. Upon substantial completion of the contract, the Company recognized construction contract revenue and costs equal to the revised contract price of $23.3 million, which are included in the accompanying unaudited condensed consolidated statements of operations for the three and six-month periods ended June 30, 2013.

9. Long-Term Debt

Long-term debt consists of the following (in thousands):

	June 30, 2014		December 31, 2013
Senior credit facility	$	—	$	—
Senior notes
8.75% Senior Notes due 2020, net of $4,938 and $5,264 discount, respectively	445,062		444,736
7.5% Senior Notes due 2021, including premium of $3,708 and $3,922, respectively	1,178,708		1,178,922
8.125% Senior Notes due 2022	750,000		750,000
7.5% Senior Notes due 2023, net of $3,605 and $3,751 discount, respectively	821,395		821,249
Total debt	3,195,165		3,194,907
Less: current maturities of long-term debt	—		—
Long-term debt	$	3,195,165	$	3,194,907

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(Unaudited)

Senior Credit Facility

The senior secured revolving credit facility (the “senior credit facility”) is available to be drawn on subject to limitations based on its terms and certain financial covenants, as described below. As of June 30, 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 4.5:1.0 at each quarter end, calculated using the last four completed fiscal quarters and (ii) ratio of current assets to current liabilities, which must be at least 1.0:1.0 at each quarter end. If no amounts are drawn under the senior credit facility when calculating the ratio of total net debt to EBITDA, the Company’s debt is reduced by its cash balance in excess of $10.0 million. In the current ratio calculation, any amounts available to be drawn under the senior credit facility are included in current assets, and unrealized assets and liabilities resulting from mark-to-market adjustments on the Company’s derivative contracts are disregarded. The senior credit facility matures in March 2017.

The senior credit facility also contains various covenants that limit the ability of the Company and certain of its subsidiaries to: grant certain liens; make certain loans and investments; make distributions; redeem stock; redeem or prepay debt; merge or consolidate with or into a third party; or engage in certain asset dispositions, including a sale of all or substantially all of the Company’s assets. Additionally, the senior credit facility limits the ability of the Company and certain of its subsidiaries to incur additional indebtedness with certain exceptions. As of and during the three and six-month periods ended June 30, 2014, the Company was in compliance with all applicable financial covenants under the senior credit facility.

The obligations under the senior credit facility are guaranteed by certain Company subsidiaries and are secured by first priority liens on all shares of capital stock of certain of the Company’s material present and future subsidiaries, certain intercompany debt of the Company, and substantially all of the Company’s assets, including proved oil, natural gas and NGL reserves representing at least 80.0% of the discounted present value (as defined in the senior credit facility) of proved oil, natural gas and NGL reserves considered by the lenders in determining the borrowing base for the senior credit facility.

At the Company’s election, interest under the senior credit facility is determined by reference to (a) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin between 1.75% and 2.75% per annum or (b) the “base rate,” which is the highest of (i) the federal funds rate plus 0.5%, (ii) the prime rate published by Bank of America or (iii) the Eurodollar rate (as defined in the senior credit facility) plus 1.00% per annum, plus, in each case under scenario (b), an applicable margin between 0.75% and 1.75% per annum. Interest is payable quarterly for base rate loans and at the applicable maturity date for LIBOR loans, except that if the interest period for a LIBOR loan is six months, interest is paid at the end of each three-month period. Quarterly, the Company pays a commitment fee assessed at an annual rate of 0.5% on any available portion of the senior credit facility.

Borrowings under the senior credit facility may not exceed the lower of the borrowing base or the committed amount. The Company’s borrowing base was reaffirmed at $775.0 million in April 2014 and the next redetermination is expected to take place in October 2014. With respect to each redetermination, the administrative agent and the lenders under the senior credit facility consider several factors, including the Company’s proved reserves and projected cash requirements, and make assumptions regarding, among other things, oil and natural gas prices and production. Because the value of the Company’s proved reserves is a key factor in determining the amount of the borrowing base, changing commodity prices and the Company’s success in developing reserves may affect the borrowing base. The Company at times incurs additional costs related to the senior credit facility as a result of amendments to the credit agreement and changes to the borrowing base.

At June 30, 2014, the Company had no amount outstanding under the senior credit facility and $10.4 million in outstanding letters of credit, which reduce the availability under the senior credit facility on a dollar-for-dollar basis.

Senior Fixed Rate Notes

The Company’s unsecured senior fixed rate notes (“Senior Fixed Rate Notes”) bear interest at a fixed rate per annum, payable semi-annually, with the principal due upon maturity. Certain of the Senior Fixed Rate Notes were issued at a discount or a premium. The discount or premium is amortized to interest expense over the term of the respective series of Senior Fixed Rate Notes. The Senior Fixed Rate Notes are redeemable, in whole or in part, prior to their maturity at specified redemption prices and are jointly and severally guaranteed unconditionally, in full, on an unsecured basis by certain of the Company’s wholly owned subsidiaries. See Note 19 for condensed financial information of the subsidiary guarantors.

Debt issuance costs of $70.2 million incurred in connection with the offerings and subsequent registered exchange offers of the Senior Fixed Rate Notes outstanding at June 30, 2014 are included in other assets in the accompanying unaudited condensed

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(Unaudited)

consolidated balance sheets and are being amortized to interest expense over the term of the respective series of Senior Fixed Rate Notes.

2013 Activity. In March 2013, the Company redeemed the outstanding $365.5 million aggregate principal amount of its 9.875% Senior Notes due 2016 and $750.0 million aggregate principal amount of its 8.0% Senior Notes due 2018 for total consideration of $1,061.34 per $1,000 principal amount and $1,052.77 per $1,000 principal amount, respectively. The premium paid to redeem these notes and the expense incurred to write off the remaining associated unamortized debt issuance costs, totaling $82.0 million, were recorded as a loss on extinguishment of debt in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2013.

Indentures.Each of the indentures governing the Company’s Senior Fixed Rate Notes contains covenants that restrict the Company’s ability to take a variety of actions, including limitations on the incurrence of indebtedness, payment of dividends, investments, asset sales, certain asset purchases, transactions with related parties and consolidations or mergers. As of and during the three and six-month periods ended June 30, 2014, the Company was in compliance with all of the covenants contained in the indentures governing its outstanding Senior Fixed Rate Notes.

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(Unaudited)

10. Derivatives

The Company has not designated any of its derivative contracts as hedges for accounting purposes. The Company records all derivative contracts at fair value. Changes in derivative contract fair values are recognized in earnings. Cash settlements and valuation gains and losses are included in loss on derivative contracts for commodity derivative contracts and in interest expense for interest rate swaps in the consolidated statements of operations. Commodity derivative contracts are settled on a monthly or quarterly basis. Derivative assets and liabilities arising from the Company’s derivative contracts with the same counterparty that provide for net settlement are reported on a net basis in the consolidated balance sheets.

Commodity Derivatives. The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil and natural gas. The Company seeks to manage this risk through the use of commodity derivative contracts. These derivative contracts allow the Company to limit its exposure to commodity price volatility on a portion of its forecasted oil and natural gas sales. None of the Company’s derivative contracts may be terminated prior to contractual maturity solely as a result of a downgrade in the credit rating of a party to the contract. At June 30, 2014, the Company’s commodity derivative contracts consisted of fixed price swaps and collars, which are described below:

Fixed price swaps	The Company receives a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume.
Collars	Two-way collars contain a fixed floor price (put) and a fixed ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, the Company receives the fixed price and pays the market price. If the market price is between the call and the put strike price, no payments are due from either party.
	Three-way collars have two fixed floor prices (a purchased put and a sold put) and a fixed ceiling price (call). The purchased put establishes a minimum price unless the market price falls below the sold put, at which point the minimum price would be New York Mercantile Exchange (“NYMEX”) plus the difference between the purchased put and the sold put strike price. The call establishes a maximum price (ceiling) the Company will receive for the volumes under the contract. If the market price is between the ceiling price and purchased put, no payments are due from either party.

Interest Rate Swaps. The Company is exposed to interest rate risk on its long-term fixed rate debt and will be exposed to variable interest rates if it draws on its senior credit facility. Fixed rate debt, where the interest rate is fixed over the life of the instrument, exposes the Company to (i) changes in market interest rates reflected in the fair value of the debt and (ii) the risk that the Company may need to refinance maturing debt with new debt at a higher rate. Variable rate debt, where the interest rate fluctuates, exposes the Company to short-term changes in market interest rates as the Company’s interest obligations on these instruments are periodically redetermined based on prevailing market interest rates, primarily LIBOR and the federal funds rate.

Prior to its maturity on April 1, 2013, the Company had a $350.0 million notional interest rate swap agreement which effectively fixed the variable interest rate on the Senior Floating Rate Notes due 2014 (“Senior Floating Rate Notes”) at an annual rate of 6.69% for periods prior to their repurchase and redemption in the third quarter of 2012. The interest rate swap was not designated as a hedge.

Derivatives Agreements with Royalty Trusts. The Company is party to derivatives agreements with the Mississippian Trust I, Permian Trust and Mississippian Trust II, respectively, that provide each Royalty Trust with the economic effect of certain oil and natural gas derivative contracts entered into by the Company with third parties. The underlying commodity derivative contracts cover volumes of oil and natural gas production through December 31, 2015, March 31, 2015 and December 31, 2014 for the Mississippian Trust I, Permian Trust and Mississippian Trust II, respectively. Under these arrangements, the Company pays the Royalty Trusts amounts it receives from its counterparties in accordance with the underlying contracts, and the Royalty Trusts pay the Company any amounts that the Company is required to pay its counterparties under such contracts.

In accordance with the terms of the respective derivatives agreements, the Company has novated certain of the derivative contracts underlying the derivatives agreements to each of the Permian Trust and the Mississippian Trust II. As a party to these contracts, the Permian Trust and the Mississippian Trust II receive payment directly from the counterparty and pay any amounts owed directly to the counterparty. To secure its obligations under the respective derivative contracts novated to it, each of the Permian Trust and the Mississippian Trust II granted the counterparties liens on the royalty interests held by each respective Royalty Trust. Under the derivatives agreements, as additional development wells are drilled for the benefit of the Permian Trust and the

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(Unaudited)

Mississippian Trust II, the Company has the right, under certain circumstances, to assign or novate to the Permian Trust and the Mississippian Trust II additional derivative contracts.

All contracts underlying the derivatives agreements with the Royalty Trusts, including those novated to the Permian Trust and the Mississippian Trust II, have been included in the Company’s consolidated derivative disclosures. See Note 4 for the Royalty Trusts’ open derivative contracts.

Fair Value of Derivatives. The following table presents the fair value of the Company’s derivative contracts as of June 30, 2014 and December 31, 2013 on a gross basis without regard to same-counterparty netting (in thousands):

Type of Contract	Balance Sheet Classification	June 30, 2014			December 31, 2013
Derivative assets
Oil price swaps	Derivative contracts-current	$	981		$	15,887
Natural gas price swaps	Derivative contracts-current	2,355			1,598
Oil collars - three way	Derivative contracts-current	—			706
Natural gas collars	Derivative contracts-current	135			177
Oil price swaps	Derivative contracts-noncurrent	1,412			19,376
Natural gas price swaps	Derivative contracts-noncurrent	224			—
Oil collars - three way	Derivative contracts-noncurrent	1,228			12,189
Natural gas collars	Derivative contracts-noncurrent	155			341
Derivative liabilities
Oil price swaps	Derivative contracts-current	(35,033		)	(38,396		)
Natural gas price swaps	Derivative contracts-current	(4,865		)	(1,460		)
Oil collars - three way	Derivative contracts-current	(20,186		)	—
Oil price swaps	Derivative contracts-noncurrent	(4,882		)	(38,344		)
Oil collars - three way	Derivative contracts-noncurrent	(844		)	—
Total net derivative contracts		$	(59,320	)	$	(27,926	)

See Note 5 for additional discussion of the fair value measurement of the Company’s derivative contracts.

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(Unaudited)

Master Netting Agreements and the Right of Offset. The Company has master netting agreements with all of its derivative counterparties and has presented its derivative assets and liabilities with the same counterparty on a net basis in the consolidated balance sheets. As a result of the netting provisions, the Company's maximum amount of loss under derivative transactions due to credit risk is limited to the net amounts due from its counterparties. As of June 30, 2014, the counterparties to the Company’s open derivative contracts consisted of 9 financial institutions, all of which are also lenders under the Company’s senior credit facility. The Company is not required to post additional collateral under its derivative contracts as the majority of the counterparties to the Company’s derivative contracts share in the collateral supporting the Company’s senior credit facility. To secure their obligations under the derivative contracts novated by the Company, the Permian Trust and the Mississippian Trust II have each given the counterparties to such contracts a lien on its royalty interests. The following tables summarize (i) the Company's derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative liability positions, the applicable portion of shared collateral under the senior credit facility (for SandRidge's derivative contracts) and under liens granted on royalty interests (for the Permian Trust’s and the Mississippian Trust II’s novated derivative contracts) (in thousands):

June 30, 2014

	Gross Amounts		Gross Amounts Offset			Amounts Net of Offset		Financial Collateral			Net Amount
Assets
Derivative contracts - current	$	3,471	$	(3,356	)	$	115	$	—		$	115
Derivative contracts - noncurrent	3,019		(193		)	2,826		—			2,826
Total	$	6,490	$	(3,549	)	$	2,941	$	—		$	2,941
Liabilities
Derivative contracts - current	$	60,084	$	(3,356	)	$	56,728	$	(56,728	)	$	—
Derivative contracts - noncurrent	5,726		(193		)	5,533		(5,533		)	—
Total	$	65,810	$	(3,549	)	$	62,261	$	(62,261	)	$	—

December 31, 2013

	Gross Amounts		Gross Amounts Offset			Amounts Net of Offset		Financial Collateral			Net Amount
Assets
Derivative contracts - current	$	18,368	$	(5,589	)	$	12,779	$	—		$	12,779
Derivative contracts - noncurrent	31,906		(17,780		)	14,126		—			14,126
Total	$	50,274	$	(23,369	)	$	26,905	$	—		$	26,905
Liabilities
Derivative contracts - current	$	39,856	$	(5,589	)	$	34,267	$	(34,267	)	$	—
Derivative contracts - noncurrent	38,344		(17,780		)	20,564		(20,564		)	—
Total	$	78,200	$	(23,369	)	$	54,831	$	(54,831	)	$	—

The Company recorded a loss (gain) on commodity derivative contracts of $85.3 million and $(103.7) million for the three-month periods ended June 30, 2014 and 2013, respectively, as reflected in the accompanying unaudited condensed consolidated statements of operations, which includes net cash payments (receipts) upon settlement of $13.1 million and $(18.1) million, respectively. The Company recorded a loss (gain) on commodity derivative contracts of $127.8 million and $(62.8) million for the six-month periods ended June 30, 2014, and 2013, respectively, which includes net cash payments upon settlement of $96.4 million and $0.3 million, respectively. Included in these net cash payments are $69.6 million and $29.0 million of cash payments related to settlements of commodity derivative contracts with contractual maturities after the period in which they were settled (“early settlements”) primarily as a result of the sale of the Gulf Properties in February 2014 and the Permian Properties in February 2013, respectively.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

At June 30, 2014, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	2,054	$	99.08
January 2015 - December 2015	5,588	$	92.44

Natural Gas Price Swaps

	Notional (MMcf)	Weighted Average Fixed Price
July 2014 - December 2014	24,840	$	4.28
January 2015 - December 2015	15,400	$	4.50

Oil Collars - Three-way

	Notional (MBbls)	Sold Put	Purchased Put	Sold Call
July 2014 - December 2014	4,140	$70.00	$90.20	$100.00
January 2015 - December 2015	3,656	$74.83	$90.35	$103.50

Natural Gas Collars

	Notional (MMcf)	Collar Range
July 2014 - December 2014	472	$4.00	—	$7.78
January 2015 - December 2015	1,010	$4.00	—	$8.55

11. Asset Retirement Obligations

A reconciliation of the beginning and ending aggregate carrying amounts of the asset retirement obligations for the period from December 31, 2013 to June 30, 2014 is as follows (in thousands):

Asset retirement obligations at December 31, 2013	$	424,117
Liability incurred upon acquiring and drilling wells	2,382
Revisions in estimated cash flows	(438		)
Liability settled or disposed in current period(1)	(377,662		)
Accretion	6,811
Asset retirement obligations at June 30, 2014	55,210
Less: current portion	—
Asset retirement obligations, net of current	$	55,210

____________________

(1)     Includes $366.0 million associated with the Gulf Properties sold in February 2014.

12. Commitments and Contingencies

Legal Proceedings

On April 5, 2011, Wesley West Minerals, Ltd. and Longfellow Ranch Partners, LP filed suit against the Company and SandRidge Exploration and Production, LLC (collectively, the “SandRidge Entities”) in the 83rd District Court of Pecos County, Texas. The plaintiffs, who have leased mineral rights to the SandRidge Entities in Pecos County, allege that the SandRidge Entities

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(Unaudited)

have not properly paid royalties on all volumes of natural gas and CO ₂ produced from the acreage leased from the plaintiffs. The plaintiffs also allege that the SandRidge Entities have inappropriately failed to pay royalties on CO₂ produced from the plaintiffs' acreage that results from the treatment of natural gas at the Century Plant. The plaintiffs seek approximately $45.5 million in actual damages for the period of time between January 2004 and December 2011, punitive damages and a declaration that the SandRidge Entities must pay royalties on CO ₂ produced from the plaintiffs' acreage that results from treatment of natural gas at the Century Plant. The Commissioner of the General Land Office of the State of Texas (“GLO”) is named as an additional defendant in the lawsuit as some of the affected oil and natural gas leases described in the plaintiffs' allegations cover mineral classified lands in which the GLO is entitled to one-half of the royalties attributable to such leases. The GLO has filed a cross-claim against the SandRidge Entities asserting the same claims as the plaintiffs with respect to the leases covering mineral classified lands and seeking approximately $13.0 million in actual damages, inclusive of penalties and interest. On February 5, 2013, the Company received a favorable summary judgment ruling that effectively removes a majority of the plaintiffs' and GLO's claims. On April 29, 2013, the court entered an order allowing for an interlocutory appeal of its summary judgment ruling, and on May 15, 2014, oral arguments on the appeal were presented to the Court of Appeals for the Eighth District of Texas. The Company intends to continue to defend the remaining issues in this lawsuit as well as any appellate proceedings. At the time of the ruling on summary judgment, the lawsuit was still in the discovery stage and, accordingly, an estimate of reasonably possible losses associated with the remaining causes of action, if any, cannot be made until all of the facts, circumstances and legal theories relating to such claims and the 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

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(Unaudited)

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 proprietaryinformation, and (vi) entities allegedly affiliated with Mr. Ward were unjustly enriched. The defendants have filed respective motions to dismiss the amended consolidated complaint, which are pending before the court.

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.

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.

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’

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(Unaudited)

defenses are fully disclosed and analyzed. The Company has not established any reserves relating to the Securities Litigation. Each of the Mississippian Trusts has requested that the Company indemnify it for any losses it may incur in connection with the Securities Litigation.

On July 15, 2013, James Hart and fifteen other named plaintiffs filed an Amended Complaint in the United States District Court for the District of Kansas in an action undertaken individually and on behalf of others similarly situated against SandRidge Energy, Inc., SandRidge Operating Company, SandRidge E&P, SandRidge Midstream, Inc., and Lariat Services, Inc. In their Amended Complaint, plaintiffs allege that the defendants failed to properly calculate overtime pay for the plaintiffs and for other similarly situated current and former employees. The plaintiffs further allege that the defendants required the plaintiffs and other similarly situated current and former employees to engage in work-related activities without pay. The plaintiffs assert claims against the defendants for (i) violations of the Fair Labor Standards Act, (ii) violations of the Kansas Wage Payment Act, (iii) breach of contract, and (iv) fraud, and seek to recover unpaid wages and overtime pay, liquidated damages, statutory penalties, economic damages, compensatory and punitive damages, attorneys’ fees and costs, and both pre- and post-judgment interest.

On October 3, 2013, the plaintiffs filed a Motion for Conditional Collective Action Certification and for Judicial Notice to the Class and a Motion to Toll the Statute of Limitations. On October 11, 2013, the defendants filed a Motion to Dismiss and a Motion to Transfer Venue to the United States District Court for the Western District of Oklahoma.

On April 2, 2014, the court granted the defendants’ Motion to Dismiss and granted plaintiffs leave to file an amended complaint by April 16, 2014, which they did on such date. On July 1, 2014, the court granted plaintiffs’ Motion for Conditional Collective Action Certification and for Judicial Notice to the Class, and denied plaintiffs’ Motion to Toll the Statute of Limitations. The Company and the other defendants intend to defend this lawsuit vigorously. This lawsuit is in the early stages and, accordingly, an estimate of reasonably possible losses associated with this action, if any, cannot be made until the facts, circumstances and legal theories relating to the plaintiffs' claims and the defendants’ defenses are fully disclosed and analyzed. The Company has not established any reserves relating to this action.

OnDecember 18, 2013, the Company received a subpoena duces tecum from the U.S. Department of Justice in connection with an ongoinginvestigation 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.

In addition to the litigation described above, the Company is a defendant in lawsuits from time to time in the normal course of business. While the results of litigation and claims cannot be predicted with certainty, the Company believes the reasonably possible losses of such matters, individually and in the aggregate, are not material. Additionally, the Company believes the probable final outcome of such matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, cash flows or liquidity.

Treating Agreement Commitment

The Company is party to a 30-year treating agreement with Occidental for the removal of CO₂ from natural gas volumes delivered by the Company. Under the agreement, the Company is required to deliver a total of approximately 3,200 Bcf of CO₂ during the agreement period. The Company is obligated to pay Occidental $0.25 per Mcf to the extent minimum annual CO₂ volume requirements are not met. Through December 31, 2013, the Company had delivered to Occidental 34.0 Bcf of CO₂, which is 164.4 Bcf less than the cumulative minimum annual CO₂ volume requirements for the same period. If such under delivered volumes are not made up with commensurate over deliveries in the future, the Company will be obligated to pay Occidental $0.70 per Mcf (approximately $115.1 million total) in 2041, which amount has not been accrued by the Company as a liability as the Company does not currently believe such payment is probable.

Under certain circumstances, the Company will have the right, beginning in 2020, to reduce future minimum annual CO₂ volume requirements under the agreement by paying Occidental an amount equal to the present value of $0.70 multiplied by such reduced CO₂ volume requirements as designated by the Company. As of June 30, 2014, if the Company were to cease delivering natural gas for processing and made no future CO₂ deliveries from such date until 2020, the estimated amount required to be paid in 2020 in order to adjust the future CO₂ volume requirements to zero, including applicable annual delivery shortfall penalties, would be approximately $587.5 million. This amount will continue to decrease as future deliveries of CO₂ are made. The Company also may terminate the treating agreement at any time, which would require a termination payment by the Company to Occidental of an amount equal to (a) the present value of $0.70 multiplied by the remaining CO₂ volumes required to be delivered under the agreement, plus (b) Occidental’s current net book value of the Century Plant.

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(Unaudited)

Based upon the quantity of CO₂ delivered by the Company during the period from January 1, 2014 through June 30, 2014 and estimated quantities the Company expects to deliver during the remainder of 2014, the Company accrued estimated annual under delivery penalties ($0.25 per Mcf) of approximately $8.5 million and $16.8 million for the three and six-month periods ended June 30, 2014. Additionally, the Company has included an accrued expense for the three and six-month periods ended June 30, 2013 of $8.1 million and $16.0 million for the $0.25 Mcf fee attributable to the estimated 2013 annual under delivery penalty based upon the quantity of CO₂ delivered by the Company during the period from January 1, 2013 through June 30, 2013 as described in Note 2. Based on current projected natural gas production levels, the Company expects to accrue between approximately $30.0 million and $37.0 million during the year ending December 31, 2014 for amounts related to the Company’s anticipated shortfall in meeting its 2014 annual delivery obligations. The Company has not accrued any liability for the $0.70 per Mcf fee (approximately $47.0 million total) that would be due in 2041 if these anticipated shortfalls occur and are not made up in the future as the Company does not currently believe such payment is probable.

The Company has first priority on daily available processing capacity for properly nominated and delivered volumes; however, based on cumulative delivered volumes as of the balance sheet date, if the Company makes no further deliveries from that date until 2025, beginning in 2025 the Century Plant, even if fully utilized, would not have adequate capacity to allow the Company to deliver CO₂ volumes attributable to previously incurred delivery shortfalls at that time.

Guarantees of Plugging and Abandonment Obligations

Under the equity purchase agreement associated with the sale of Gulf Properties, the Company has guaranteed on behalf of Fieldwood certain plugging and abandonment obligations associated with the Gulf Properties for a period of up to one year from the date of closing. See Note 3 for additional information regarding the guarantees.

Risks and Uncertainties

The Company’s revenue, profitability and future growth are substantially dependent upon the prevailing and future prices for oil and natural gas, which depend on numerous factors beyond the Company’s control such as overall oil and natural gas production and inventories in relevant markets, economic conditions, the global political environment, regulatory developments and competition from other energy sources. Oil and natural gas prices historically have been volatile, and may be subject to significant fluctuations in the future. The Company enters into derivative arrangements in order to mitigate a portion of the effect of this price volatility on the Company’s cash flows. See Note 10 for the Company’s open oil and natural gas derivative contracts.

Production targets contained in certain gathering and treating agreements require the Company to incur capital expenditures or make associated shortfall payments. Additionally, the Company has a drilling obligation to each of the Permian Trust and the Mississippian Trust II. See Note 4 for discussion of these drilling obligations. The Company depends on cash flows from operating activities, funding commitments from third parties for drilling carries, 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, including proceeds received from the sale of the Gulf Properties, cash flows from operating activities and funding commitments from third parties for drilling carries, the Company expects to be able to fund its planned capital expenditures budget, debt service requirements and working capital needs for the remainder of 2014. However, a substantial or extended decline in oil or natural gas prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows and quantities of oil, natural gas and NGL reserves that may be economically produced, which could adversely impact the Company’s ability to comply with the financial covenants under its senior credit facility. See Note 9 for discussion of the financial covenants in the senior credit facility.

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(Unaudited)

13. Equity

Preferred Stock Dividends

All dividend payments to date on the Company’s 8.5%, 6.0% and 7.0% convertible perpetual preferred stock have been paid in cash. Paid and unpaid dividends included in the calculation of loss applicable to the Company’s common stockholders and the Company’s basic loss per share calculation for the three and six-month periods ended June 30, 2014 and 2013 as presented in the accompanying unaudited condensed consolidated statements of operations, are included in the tables below (in thousands):

	Three Months Ended June 30,
	2014						2013
	Dividends Paid		Dividends Unpaid		Total		Dividends Paid		Dividends Unpaid		Total
8.5% Convertible perpetual preferred stock	$	—	$	5,631	$	5,631	$	—	$	5,631	$	5,631
6.0% Convertible perpetual preferred stock	—		3,000		3,000		—		3,000		3,000
7.0% Convertible perpetual preferred stock	2,625		2,625		5,250		2,625		2,625		5,250
Total	$	2,625	$	11,256	$	13,881	$	2,625	$	11,256	$	13,881
	Six Months Ended June 30,
	2014						2013
	Dividends Paid		Dividends Unpaid		Total		Dividends Paid		Dividends Unpaid		Total
8.5% Convertible perpetual preferred stock	$	2,816	$	8,447	$	11,263	$	2,816	$	8,447	$	11,263
6.0% Convertible perpetual preferred stock	500		5,500		6,000		500		5,500		6,000
7.0% Convertible perpetual preferred stock	7,875		2,625		10,500		7,875		2,625		10,500
Total	$	11,191	$	16,572	$	27,763	$	11,191	$	16,572	$	27,763

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 six-month periods ended June 30, 2014 and 2013. These shares were accounted for as treasury stock when withheld and then immediately retired.

	Six Months Ended June 30,
	2014		2013
	(In thousands)
Number of shares withheld for taxes	637		5,107
Value of shares withheld for taxes	$	3,865	$	27,196

Stockholder Receivable

The Company is party to a settlement agreement relating to a third-party claim against its former CEO under Section 16(b) of the Securities Exchange Act of 1934, as amended. Under the settlement agreement, the Company’s former CEO agreed to pay to the Company $5.0 million in four installments over four years commencing October 2013 and to waive his rights under his indemnification agreement with the Company with respect to the Section 16(b) action. The Company agreed to pay the fees of the plaintiff’s lawyers and paid the former CEO’s legal expenses as required under his indemnification agreement.

Based on the nature of the settlement as well as the former CEO’s position as an officer of the Company at the time of the settlement, the receivable is classified as a component of additional paid-in capital in the accompanying unaudited condensed consolidated balance sheets. The amount receivable under the agreement as of June 30, 2014 and December 31, 2013 was $3.8 million.

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(Unaudited)

Restricted Common Stock

Equity compensation provided to employees directly involved in exploration and development activities is capitalized to the Company’s oil and natural gas properties. Equity compensation not capitalized is recognized in general and administrative expenses, production expenses, cost of sales and midstream and marketing expenses in the consolidated statements of operations. For the three and six-month periods ended June 30, 2014, the Company recognized equity compensation expense of $6.1 million, and $13.5 million, net of $1.8 million and $3.0 million capitalized, respectively, related to restricted common stock. For the three and six-month periods ended June 30, 2013, the Company recognized equity compensation expense of $51.7 million, and $70.7 million, net of $1.3 million and $2.9 million capitalized, respectively, related to restricted common stock. The three and six-month periods ended June 30, 2013 include approximately $40.9 million and $48.5 million, respectively, of equity compensation expense recognized in connection with the separation of certain former executives from the Company.

See Note 17 for discussion of the Company’s performance units.

14. Income Taxes

The Company estimates for each interim reporting period the effective tax rate expected for the full fiscal year and uses that estimated rate in providing for income taxes on a current year-to-date basis. The (benefit) provision for income taxes consisted of the following components for the three and six-month periods ended June 30, 2014 and 2013 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Current
Federal	$	—		$	(344	)	$	—		$	4,015
State	(1,194		)	852			(1,067		)	922
	(1,194		)	508			(1,067		)	4,937
Deferred
Federal	—			—			—			—
State	—			—			—			—
	—			—			—			—
Total (benefit) provision	(1,194		)	508			(1,067		)	4,937
Less: income tax provision attributable to noncontrolling interest	88			71			170			146
Total (benefit) provision attributable to SandRidge Energy, Inc.	$	(1,282	)	$	437		$	(1,237	)	$	4,791

Deferred income taxes are provided to reflect the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The Company’s deferred tax assets have been reduced by a valuation allowance due to a determination that it is more likely than not that some or all of the deferred assets will not be realized based on the weight of all available evidence. The Company continues to closely monitor and weigh all available evidence, including both positive and negative, in making its determination whether to maintain a valuation allowance. As a result of the significant weight placed on the Company's cumulative negative earnings position, the Company continued to maintain the full valuation allowance against its net deferred tax asset at June 30, 2014.    

Internal Revenue Code (“IRC”) Section 382 addresses company ownership changes and specifically limits the utilization of certain deductions and other tax attributes on an annual basis following an ownership change. The Company experienced ownership changes within the meaning of IRC Section 382 during 2008 and 2010 that subjected certain of the Company’s tax attributes, including $923.0 million of federal net operating loss carryforwards, to the IRC Section 382 limitation. These limitations could result in a material amount of existing loss carryforwards expiring unused. None of these limitations resulted in a current federal tax liability at June 30, 2014.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

At June 30, 2014 and December 31, 2013, the Company had a liability of approximately $0.1 million and $1.4 million, respectively, for unrecognized tax benefits. Included in the $1.4 million liability for unrecognized tax benefits at December 31, 2013 was $0.1 million for interest and penalties relating to uncertain tax positions.

The Company’s only taxing jurisdiction is the United States (federal and state). The Company’s tax years 2010 to present remain open for federal examination. Additionally, various tax years remain open beginning with tax year 2005 due to federal net operating loss carryforwards. The number of years open for state tax audits varies, depending on the state, but are generally from three to five years. The Company does not expect a significant change in its gross unrecognized tax benefits balance within the next twelve months.    

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

15. Earnings (Loss) per Share

The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted loss per share, for the three and six-month periods ended June 30, 2014 and 2013:

	Net Loss			Weighted Average Shares		Loss Per Share
	(In thousands, except per share amounts)
Three Months Ended June 30, 2014 (Restated)
Basic loss per share	$	(46,775	)	485,318		$	(0.10	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(46,775	)	485,318		$	(0.10	)
Three Months Ended June 30, 2013 (Restated)
Basic loss per share	$	(42,389	)	$	479,154	$	(0.09	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(42,389	)	479,154		$	(0.09	)
Six Months Ended June 30, 2014 (Restated)
Basic loss per share	$	(196,993	)	485,059		$	(0.41	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(196,993	)	485,059		$	(0.41	)
Six Months Ended June 30, 2013 (Restated)
Basic loss per share	$	(543,567	)	478,494		$	(1.14	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(543,567	)	478,494		$	(1.14	)

____________________

(1) Restricted stock awards covering 2.0 million and 2.6 million shares for the three and six-month periods ended June 30, 2014, respectively, and 0.2 million and 3.6 million shares for the three and six-month periods ended June 30, 2013, respectively, were excluded from the computation of loss per share because their effect would have been antidilutive.

(2) Potential common shares related to the Company’s outstanding 8.5%, 6.0% and 7.0% convertible perpetual preferred stock covering 90.1 million shares for the three and six-month periods ended June 30, 2014 and 2013 were excluded from the computation of loss per share because their effect would have been antidilutive under the if-converted method.

See Note 13 for discussion of preferred stock dividends.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

16. Related Party Transactions

Former Chairman and CEO Severance. On June 28, 2013, the Company’s then current CEO, Tom Ward, separated employment from the Company. In accordance with the terms of Mr. Ward’s employment agreement, the Company incurred $58.2 million in salary and bonus expense and $36.8 million associated with the accelerated vesting of 6.3 million shares of restricted stock awards during the three and six-month periods ended June 30, 2013. As of June 30, 2014, the remaining amounts due under the terms of his employment agreement include $3.9 million to be paid in monthly installments through December 2016. These amounts are included in other current liabilities and other long-term obligations in the accompanying unaudited condensed consolidated balance sheet. See Note 13 for discussion of the stockholder receivable due from Mr. Ward.

Other Employee Termination Benefits. Certain employees received termination benefits, including severance and accelerated stock vesting, upon separation of service from the Company during the six-month periods ended June 30, 2014 and 2013. For the six-month period ended June 30, 2014 employee termination benefits were $8.9 million primarily as a result of the sale of the Gulf Properties. For the six-month period ended June 30, 2013, employee termination benefits, excluding amounts attributable to the Company’s former chairman and CEO, were $23.1 million primarily as a result of other executives’ separation from employment and the sale of the Permian Properties.

2014 Divestiture. See Note 3 for discussion of the sale of the Gulf Properties to Fieldwood and the Company’s guarantee on behalf of Fieldwood of certain associated plugging and abandonment obligations associated with the Gulf Properties. Fieldwood is a portfolio company of Riverstone Holdings LLC, affiliates of which own a significant number of shares of the Company’s common stock.

Acquisition of Ownership Interest. In March 2014, the Company purchased the additional ownership interest owned by its partner in GRLP and Genpar, which was deemed a related party at the time. See Note 4 for additional discussion.

17. Performance Units

The Company periodically grants performance units to certain members of senior management under the Company’s existing long-term incentive plan which vest over a performance period of approximately three years. The value, and ultimate payout, of the performance units is determined based upon the Company’s total shareholder return relative to that of a predetermined peer group over a specific performance period. If performance exceeds established minimum thresholds, payout percentages could range from 50% to 200% of specified target values. If minimum target thresholds are not met, the payout is reduced to zero.

The performance units are valued for accounting purposes using a Monte Carlo simulation based on certain assumptions, including (i) a volatility assumption based on the historical realized price volatility of the Company’s common stock and the common stock of the predetermined peer group for each grant year and (ii) a risk-free interest rate based on the U.S. Treasury bond yields for a term commensurate with the approximate remaining vesting period for each grant. As of June 30, 2014 and December 31, 2013, the Company’s liability associated with performance units totaled $3.8 million and $1.8 million, respectively. The liability represents the fair value of the portion of performance units for which requisite service has been completed. The following table presents a summary of the fair value of the performance units and the related assumptions for all outstanding units as of June 30, 2014.

Expected price volatility range	22.8	%	-	54.6%
Weighted-average risk-free interest rate				0.5%
Weighted-average fair value per unit				$98.74

39

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

18. Business Segment Information

The Company has three business segments: exploration and production, drilling and oil field services and midstream services. These segments represent the Company’s three main business units, each offering different products and services. The exploration and production segment is engaged in the 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.

40

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Management evaluates the performance of the Company’s business segments based on income (loss) from operations. Summarized financial information concerning the Company’s segments is shown in the following table (in thousands):

	Exploration and Production(1)			Drilling and Oil Field Services(2)			Midstream Services			All Other			Consolidated Total
Three Months Ended June 30, 2014 (Restated)
Revenues	$	339,906		$	51,891		$	38,420		$	1,105		$	431,322
Inter-segment revenue	—			(33,062		)	(23,546		)	—			(56,608		)
Total revenues	$	339,906		$	18,829		$	14,874		$	1,105		$	374,714
Income (loss) from operations(3)	$	69,782		$	(2,347	)	$	(2,345	)	$	(23,011	)	$	42,079
Interest expense	(4		)	—			—			(61,859		)	(61,863		)
Other (expense) income, net	(49		)	(75		)	—			1,462			1,338
Income (loss) before income taxes(3)	$	69,729		$	(2,422	)	$	(2,345	)	$	(83,408	)	$	(18,446	)
Capital expenditures(4)	$	356,568		$	6,654		$	5,808		$	7,907		$	376,937
Depreciation, depletion, amortization, accretion and impairment	$	98,357		$	10,794		$	2,509		$	5,216		$	116,876
Three Months Ended June 30, 2013 (Restated)
Revenues	$	458,374		$	47,100		$	64,291		$	778		$	570,543
Inter-segment revenue	(81		)	(31,011		)	(26,464		)	—			(57,556		)
Total revenues	$	458,293		$	16,089		$	37,827		$	778		$	512,987
Income (loss) from operations(3)	$	233,594		$	(19,443	)	$	(7,956	)	$	(127,809	)	$	78,386
Interest income (expense)	317			—			(84		)	(61,392		)	(61,159		)
Other (expense) income, net	(330		)	—			135			89			(106		)
Income (loss) before income taxes(3)	$	233,581		$	(19,443	)	$	(7,905	)	$	(189,112	)	$	17,121
Capital expenditures(4)	$	358,582		$	883		$	15,111		$	12,582		$	387,158
Depreciation, depletion, amortization, accretion and impairment	$	148,884		$	19,478		$	4,017		$	7,989		$	180,368
Six Months Ended June 30, 2014 (Restated)
Revenues	$	747,244		$	98,971		$	84,715		$	2,075		$	933,005
Inter-segment revenue	—			(63,039		)	(52,196		)	—			(115,235		)
Total revenues	$	747,244		$	35,932		$	32,519		$	2,075		$	817,770
Income (loss) from operations(3)	$	13,306		$	(5,449	)	$	(3,756	)	$	(44,352	)	$	(40,251	)
Interest income (expense), net	139			—			—			(124,045		)	(123,906		)
Other (expense) income, net	(234		)	(473		)	—			4,139			3,432
Income (loss) before income taxes(3)	$	13,211		$	(5,922	)	$	(3,756	)	$	(164,258	)	$	(160,725	)
Capital expenditures(4)	$	620,809		$	7,275		$	11,766		$	12,860		$	652,710
Depreciation, depletion, amortization, accretion and impairment	$	384,176		$	18,506		$	4,950		$	10,476		$	418,108
At June 30, 2014 (Restated)
Total assets	$	5,288,478		$	142,858		$	193,867		$	1,287,616		$	6,912,819

41

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

	Exploration and Production(1)			Drilling and Oil Field Services(2)			Midstream Services			All Other			Consolidated Total
Six Months Ended June 30, 2013 (Restated)
Revenues	$	939,784		$	96,837		$	101,125		$	1,631		$	1,139,377
Inter-segment revenue	(162		)	(63,378		)	(51,160		)	—			(114,700		)
Total revenues	$	939,622		$	33,459		$	49,965		$	1,631		$	1,024,677
Loss from operations(3)	$	(76,070	)	$	(28,408	)	$	(10,415	)	$	(174,203	)	$	(289,096	)
Interest income (expense), net	635			—			(209		)	(147,495		)	(147,069		)
Loss on extinguishment of debt	—			—			—			(82,005		)	(82,005		)
Other income (expense), net	298			—			(664		)	871			505
Loss before income taxes(3)	$	(75,137	)	$	(28,408	)	$	(11,288	)	$	(402,832	)	$	(517,665	)
Capital expenditures(4)	$	716,173		$	1,515		$	30,332		$	27,850		$	775,870
Depreciation, depletion, amortization, accretion and impairment	$	316,397		$	28,292		$	5,705		$	12,615		$	363,009
At December 31, 2013
Total assets	$	6,157,225		$	158,737		$	188,165		$	1,180,668		$	7,684,795

____________________

(1) Income (loss) from operations includes a full cost ceiling limitation impairment of $164.8 million for the six-month period ended June 30, 2014, and a loss on the sale of the Permian Properties of $399.1 million for the six-month period ended June 30, 2013.

(2) Income (loss) from operations includes an impairment of $3.1 million and $10.6 million on certain drilling assets held for sale for the three and six-month periods ended June 30, 2014 and 2013, respectively.

(3) Loss from operations and loss before income taxes have been restated for the Exploration and Production segment and the Consolidated Total to reflect the impact of the accrual of the CO₂ delivery shortfall penalty attributable to the three and six-month periods ended June 30, 2014 and 2013. See Note 2.

(4) On an accrual basis and exclusive of acquisitions.

42

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

19. Condensed Consolidating Financial Information

The Company provides condensed consolidating financial information for its subsidiaries that are guarantors of its registered debt. As of June 30, 2014, the subsidiary guarantors, which are 100% owned by the Company, have jointly and severally guaranteed, on a full, unconditional and unsecured basis, the Company’s outstanding Senior Fixed Rate Notes. The subsidiary guarantees (i) rank equally in right of payment with all of the existing and future senior debt of the subsidiary guarantors; (ii) rank senior to all of the existing and future subordinated debt of the subsidiary guarantors; (iii) are effectively subordinated in right of payment to any existing or future secured obligations of the subsidiary guarantors to the extent of the value of the assets securing such obligations; (iv) are structurally subordinated to all debt and other obligations of the subsidiaries of the guarantors who are not themselves subsidiary guarantors; and (v) are only released under certain customary circumstances. The Company’s subsidiary guarantors guarantee payments of principal and interest under the Company’s registered notes.

Certain of the Company’s wholly owned subsidiaries that were sold in February 2014, as discussed in Note 3, guaranteed the Company’s registered debt. Upon the closing of the sale, these subsidiaries were released from their guarantees. The condensed consolidating financial information in the tables below reflects these subsidiaries’ financial information through the date of the sale.

The following condensed consolidating financial information represents the financial information of SandRidge Energy, Inc., its wholly owned subsidiary guarantors and its non-guarantor subsidiaries, prepared on the equity basis of accounting. The non-guarantor subsidiaries, including consolidated VIEs, majority owned subsidiaries and certain immaterial wholly owned subsidiaries, are included in the non-guarantors column in the tables below. The financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the subsidiary guarantors operated as independent entities.

43

SANDRIDGE ENERGY, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Condensed Consolidating Balance Sheets

	June 30, 2014 (Restated)
	Parent		Guarantors(1)		Non-Guarantors		Eliminations			Consolidated(1)
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	910,633	$	1,249	$	6,876	$	—		$	918,758
Accounts receivable, net	—		315,004		18,296		—			333,300
Intercompany accounts receivable	278,510		1,347,065		57,708		(1,683,283		)	—
Derivative contracts	—		2,179		115		(2,179		)	115
Prepaid expenses	—		12,345		—		(8		)	12,337
Other current assets	1,388		23,703		15		—			25,106
Total current assets	1,190,531		1,701,545		83,010		(1,685,470		)	1,289,616
Property, plant and equipment, net	—		4,435,593		1,106,226		—			5,541,819
Investment in subsidiaries	6,010,522		18,366		—		(6,028,888		)	—
Derivative contracts	—		3,473		1,568		(2,215		)	2,826
Other assets	64,364		20,077		19		(5,902		)	78,558
Total assets	$	7,265,417	$	6,179,054	$	1,190,823	$	(7,722,475	)	$	6,912,819
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	201,911	$	442,744	$	3,787	$	(8	)	$	648,434
Intercompany accounts payable	1,341,438		303,834		38,011		(1,683,283		)	—
Derivative contracts	—		55,875		3,032		(2,179		)	56,728
Other current liabilities	7,144		12,027		—		—			19,171
Total current liabilities	1,550,493		814,480		44,830		(1,685,470		)	724,333
Investment in subsidiaries	873,956		146,639		—		(1,020,595		)	—
Long-term debt	3,201,067		—		—		(5,902		)	3,195,165
Derivative contracts	—		7,101		647		(2,215		)	5,533
Asset retirement obligations	—		55,210		—		—			55,210
Other long-term obligations	94		19,058		—		—			19,152
Total liabilities	5,625,610		1,042,488		45,477		(2,714,182		)	3,999,393
Equity
SandRidge Energy, Inc. stockholders’ equity	1,639,807		5,136,566		1,145,346		(6,281,912		)	1,639,807
Noncontrolling interest	—		—		—		1,273,619			1,273,619
Total equity	1,639,807		5,136,566		1,145,346		(5,008,293		)	2,913,426
Total liabilities and equity	$	7,265,417	$	6,179,054	$	1,190,823	$	(7,722,475	)	$	6,912,819

(1) Guarantor and Consolidated accounts payable and accrued expenses have been restated to reflect accrual of the CO₂ shortfall penalty. See Note 2.

44

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

	December 31, 2013 (Revised)
	Parent(1)		Guarantors(2)		Non-Guarantors		Eliminations(1)(2)			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	805,505	$	1,013	$	8,145	$	—		$	814,663
Accounts receivable, net	—		326,345		22,873		—			349,218
Intercompany accounts receivable	153,325		982,524		70,107		(1,205,956		)	—
Derivative contracts	—		7,796		14,748		(9,765		)	12,779
Prepaid expenses	—		39,165		88		—			39,253
Other current assets	1,376		24,410		124		—			25,910
Total current assets	960,206		1,381,253		116,085		(1,215,721		)	1,241,823
Property, plant and equipment, net	—		5,125,543		1,182,132		—			6,307,675
Investment in subsidiaries	6,009,603		49,418		—		(6,059,021		)	—
Derivative contracts	—		12,650		9,585		(8,109		)	14,126
Other assets	61,923		65,123		27		(5,902		)	121,171
Total assets	$	7,031,732	$	6,633,987	$	1,307,829	$	(7,288,753	)	$	7,684,795
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	207,572	$	601,074	$	3,842	$	—		$	812,488
Intercompany accounts payable	967,365		181,573		57,018		(1,205,956		)	—
Derivative contracts	—		44,032		—		(9,765		)	34,267
Asset retirement obligations	—		87,063		—		—			87,063
Total current liabilities	1,174,937		913,742		60,860		(1,215,721		)	933,818
Investment in subsidiaries	828,794		152,266		—		(981,060		)	—
Long-term debt	3,200,809		—		—		(5,902		)	3,194,907
Derivative contracts	—		28,673		—		(8,109		)	20,564
Asset retirement obligations	—		337,054		—		—			337,054
Other long-term obligations	1,382		21,443		—		—			22,825
Total liabilities	5,205,922		1,453,178		60,860		(2,210,792		)	4,509,168
Equity
SandRidge Energy, Inc. stockholders’ equity	1,825,810		5,180,809		1,246,969		(6,427,778		)	1,825,810
Noncontrolling interest	—		—		—		1,349,817			1,349,817
Total equity	1,825,810		5,180,809		1,246,969		(5,077,961		)	3,175,627
Total liabilities and equity	$	7,031,732	$	6,633,987	$	1,307,829	$	(7,288,753	)	$	7,684,795

____________________

(1) Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $828.8 million, as liabilities and to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to Guarantor full cost pool (property, plant and equipment, net) and a reduction to Parent equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

(2) Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $152.3 million, as liabilities. Property, plant and equipment, net has been revised to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to the Guarantor full cost pool (property, plant and equipment, net) and a reduction to Guarantor equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

45

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Condensed Consolidating Statements of Operations

	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Three Months Ended June 30, 2014 (Restated)
Total revenues	$	—		$	314,521		$	60,205	$	(12	)	$	374,714
Expenses
Direct operating expenses(1)	—			93,597			4,931		(12		)	98,516
General and administrative	71			30,481			1,363		—			31,915
Depreciation, depletion, amortization and accretion	—			99,237			14,506		—			113,743
Impairment	—			3,133			—		—			3,133
Loss on derivative contracts	—			67,509			17,783		—			85,292
Loss on sale of assets	—			36			—		—			36
Total expenses(1)	71			293,993			38,583		(12		)	332,635
(Loss) income from operations(1)	(71		)	20,528			21,622		—			42,079
Equity earnings from subsidiaries	27,725			5,863			—		(33,588		)	—
Interest expense	(61,859		)	(4		)	—		—			(61,863		)
Other income, net	—			1,338			—		—			1,338
(Loss) income before income taxes(1)	(34,205		)	27,725			21,622		(33,588		)	(18,446		)
Income tax (benefit) expense	(1,311		)	—			117		—			(1,194		)
Net (loss) income(1)	(32,894		)	27,725			21,505		(33,588		)	(17,252		)
Less: net income attributable to noncontrolling interest	—			—			—		15,642			15,642
Net (loss) income attributable to SandRidge Energy, Inc.(1)	$	(32,894	)	$	27,725		$	21,505	$	(49,230	)	$	(32,894	)

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

46

SANDRIDGE ENERGY, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Three Months Ended June 30, 2013 (Restated)
Total revenues	$	—		$	425,319		$	81,956		$	5,712		$	512,987
Expenses
Direct operating expenses(1)	—			173,539			6,156			5,280			184,975
General and administrative	88			171,652			1,089			432			173,261
Depreciation, depletion, amortization and accretion	—			141,299			23,426			—			164,725
Impairment	—			12,703			2,940			—			15,643
Gain on derivative contracts	—			(88,653		)	(15,001		)	—			(103,654		)
Gain on sale of assets	—			(340		)	(9		)	—			(349		)
Total expenses(1)	88			410,200			18,601			5,712			434,601
(Loss) income from operations(1)	(88		)	15,119			63,355			—			78,386
Equity earnings from subsidiaries	33,378			18,233			—			(51,611		)	—
Interest (expense) income	(61,392		)	233			—			—			(61,159		)
Other (expense) income, net	—			(207		)	101			—			(106		)
(Loss) income before income taxes(1)	(28,102		)	33,378			63,456			(51,611		)	17,121
Income tax expense	406			—			102			—			508
Net (loss) income(1)	(28,508		)	33,378			63,354			(51,611		)	16,613
Less: net income attributable to noncontrolling interest	—			—			—			45,121			45,121
Net (loss) income attributable to SandRidge Energy, Inc.(1)	$	(28,508	)	$	33,378		$	63,354		$	(96,732	)	$	(28,508	)

____________________

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

47

SANDRIDGE ENERGY, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2014 (Restated)
Total revenues	$	—		$	693,570		$	124,299	$	(99	)	$	817,770
Expenses
Direct operating expenses(1)	—			232,018			9,741		(99		)	241,660
General and administrative	220			67,426			2,807		—			70,453
Depreciation, depletion, amortization and accretion	—			219,814			30,382		—			250,196
Impairment	—			125,599			42,313		—			167,912
Loss on derivative contracts	—			101,611			26,172		—			127,783
Loss on sale of assets	—			17			—		—			17
Total expenses(1)	220			746,485			111,415		(99		)	858,021
(Loss) income from operations(1)	(220		)	(52,915		)	12,884		—			(40,251		)
Equity earnings from subsidiaries	(46,259		)	3,086			—		43,173			—
Interest (expense) income	(124,045		)	139			—		—			(123,906		)
Other income, net	—			3,431			1		—			3,432
(Loss) income before income taxes(1)	(170,524		)	(46,259		)	12,885		43,173			(160,725		)
Income tax (benefit) expense	(1,294		)	—			227		—			(1,067		)
Net (loss) income(1)	(169,230		)	(46,259		)	12,658		43,173			(159,658		)
Less: net income attributable to noncontrolling interest	—			—			—		9,572			9,572
Net (loss) income attributable to SandRidge Energy, Inc.(1)	$	(169,230	)	$	(46,259	)	$	12,658	$	33,601		$	(169,230	)

____________________

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

48

SANDRIDGE ENERGY, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2013 (Restated)
Total revenues	$	—		$	865,636		$	159,484		$	(443	)	$	1,024,677
Expenses
Direct operating expenses(1)	—			345,046			18,388			(443		)	362,991
General and administrative	175			248,470			4,060			—			252,705
Depreciation, depletion, amortization and accretion	—			301,188			46,178			—			347,366
Impairment	—			12,703			2,940			—			15,643
Gain on derivative contracts	—			(57,753		)	(5,004		)	—			(62,757		)
Loss on sale of assets	—			290,616			107,209			—			397,825
Total expenses(1)	175			1,140,270			173,771			(443		)	1,313,773
Loss from operations(1)	(175		)	(274,634		)	(14,287		)	—			(289,096		)
Equity earnings from subsidiaries	(281,402		)	(8,409		)	—			289,811			—
Interest (expense) income	(147,495		)	426			—			—			(147,069		)
Loss on extinguishment of debt	(82,005		)	—			—			—			(82,005		)
Other income (expense), net	—			1,215			(710		)	—			505
Loss before income taxes(1)	(511,077		)	(281,402		)	(14,997		)	289,811			(517,665		)
Income tax expense	4,727			—			210			—			4,937
Net loss(1)	(515,804		)	(281,402		)	(15,207		)	289,811			(522,602		)
Less: net loss attributable to noncontrolling interest	—			—			—			(6,798		)	(6,798		)
Net loss attributable to SandRidge Energy, Inc.(1)	$	(515,804	)	$	(281,402	)	$	(15,207	)	$	296,609		$	(515,804	)

____________________

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

49

SANDRIDGE ENERGY, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Condensed Consolidating Statements of Cash Flows

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2014
Net cash provided by (used in) operating activities	$	263,677		$	(153,823	)	$	126,424		$	(5,486	)	$	230,792
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(656,699		)	—			—			(656,699		)
Proceeds from sale of assets	—			707,799			—			—			707,799
Other	—			(104,286		)	1,061			86,672			(16,553		)
Net cash (used in) provided by  investing activities	—			(53,186		)	1,061			86,672			34,547
Cash flows from financing activities
Distributions to unitholders	—			—			(127,985		)	24,843			(103,142		)
Intercompany (advances) borrowings, net	(125,185		)	124,804			381			—			—
Other	(33,364		)	82,441			(1,150		)	(106,029		)	(58,102		)
Net cash (used in) provided by  financing activities	(158,549		)	207,245			(128,754		)	(81,186		)	(161,244		)
Net increase (decrease) in cash and cash equivalents	105,128			236			(1,269		)	—			104,095
Cash and cash equivalents at beginning of year	805,505			1,013			8,145			—			814,663
Cash and cash equivalents at end of period	$	910,633		$	1,249		$	6,876		$	—		$	918,758

50

SANDRIDGE ENERGY, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2013
Net cash (used in) provided by operating activities	$	(162,836	)	$	420,672		$	120,672		$	6,175		$	384,683
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(828,585		)	—			—			(828,585		)
Proceeds from sale of assets	—			2,563,791			95			—			2,563,886
Other	—			31,015			37			(39,654		)	(8,602		)
Net cash provided by investing activities	—			1,766,221			132			(39,654		)	1,726,699
Cash flows from financing activities
Repayments of borrowings	(1,115,500		)	—			—			—			(1,115,500		)
Distribution to unitholders	—			—			(144,810		)	46,094			(98,716		)
Premium on debt redemption	(61,997		)	—			—			—			(61,997		)
Intercompany borrowings (advances), net	2,181,850			(2,192,164		)	10,314			—			—
Other	(56,322		)	5,728			12,615			(12,615		)	(50,594		)
Net cash provided by (used in) financing activities	948,031			(2,186,436		)	(121,881		)	33,479			(1,326,807		)
Net increase (decrease) in cash and cash equivalents	785,195			457			(1,077		)	—			784,575
Cash and cash equivalents at beginning of year	300,228			922			8,616			—			309,766
Cash and cash equivalents at end of period	$	1,085,423		$	1,379		$	7,539		$	—		$	1,094,341

51

SANDRIDGE ENERGY, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

20. Subsequent Events

Royalty Trust Distributions. On July 31, 2014, the Royalty Trusts announced quarterly distributions for the three-month period ended June 30, 2014. The following distributions are expected to be paid on or before August 29, 2014 to holders of record as of the close of business on August 14, 2014 (in thousands):

Royalty Trust	Total Distribution		Amount to be Distributed to Third-Party Unitholders
Mississippian Trust I	$	7,512	$	7,323
Permian Trust	30,555		24,885
Mississippian Trust II	18,125		15,090
Total	$	56,192	$	47,298

Conversion of Mississippian Trust I Subordinated Units. On July 1, 2014, the Mississippian Trust I’s subordinated units, all of which were held by SandRidge, converted to common units. The newly-converted units remain subject to the distribution subordination thresholds through the Mississippian Trust I’s August 29, 2014 distribution; however, beginning with the distribution to be made in November 2014, all of the Mississippian Trust I’s common units will share equally in its distribution. After this conversion, the Company will continue to consolidate the activities of the Mississippian Trust I as its primary beneficiary 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.    

52

ITEM 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Introduction

The following discussion and analysis is intended to help the reader understand the Company’s business, financial condition, results of operations, liquidity and capital resources. This discussion and analysis should be read in conjunction with the Company’s accompanying unaudited condensed consolidated financial statements and the accompanying notes included in this Quarterly Report, as well as the Company’s audited consolidated financial statements and the accompanying notes included in the 2013 Form 10-K/A. The Company’s discussion and analysis includes the following subjects:

• Overview;

• Results by Segment;

• Consolidated Results of Operations;

• Liquidity and Capital Resources;

• Critical Accounting Policies and Estimates; and

• Valuation Allowance.

The financial information with respect to the three and six-month periods ended June 30, 2014 and 2013, discussed below, is unaudited. In the opinion of management, this information contains all adjustments, which consist only of normal recurring adjustments unless otherwise disclosed, necessary to state fairly the accompanying unaudited condensed consolidated financial statements. The results of operations for the interim periods are not necessarily indicative of the results of operations for the full fiscal year.

Restatement of Financial Information. As described further in Note 2 to the accompanying unaudited condensed consolidated financial statements, the Company has restated its unaudited condensed consolidated financial statements and related disclosures for the three and six-month periods ended June 30, 2014 and 2013. The following discussion and analysis of the Company’s financial condition and results of operations incorporates the restated amounts. For this reason, the data set forth in this Item 2 may not be comparable to the discussion and data in the Company’s previously filed quarterly reports on Form 10-Q for the three and six-month periods ended June 30, 2014 and 2013.

Overview

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 and owned interests in the Gulf of Mexico and Gulf Coast until February 2014, as discussed under “2014 Developments and Outlook” below. The Company also operates businesses and infrastructure systems that are complementary to its primary exploration and production activities, including gas gathering and processing facilities, marketing operations, a saltwater gathering system, an electrical transmission system and a drilling and related oil field services business.

SandRidge’s mission is to be a high-return, growth-oriented resource conversion company focused in the Mid-Continent region of the United States. During the Company’s 2013 capital allocation process, management identified competitive advantages, such as its industry leading cost structure, subsurface knowledge, existing infrastructure and broader infrastructure capabilities and size and scale, all in the Mid-Continent area. As a result of that process, the decision was made to enhance the Company’s focus in the Mid-Continent, divest the Gulf Properties, and redeploy capital into onshore areas where the Company has a more extensive opportunity set and over a ten-year inventory of high-return drilling locations.

Operational Highlights

Operational highlights for the three and six-month periods ended June 30, 2014 include the following:

• Drilled 123 and 212 wells, excluding salt water disposal wells, in the Mid-Continent area during the three and six-month periods ended June 30, 2014, respectively. Mid-Continent properties contributed approximately 5.3 MMBoe or 83.0% and 10.0 MMBoe or 74.1% of the Company’s total production, for the three and six-month periods ended June 30, 2014, respectively, compared to approximately 4.5 MMBoe or 54.1% and 8.3 MMBoe, or 47.7% for the three and six-month periods ended June 30, 2013, respectively.

• Gulf of Mexico properties contributed production of approximately 1.3 MMBoe, or 9.8%, of the Company’s total production, for the six-month period ended June 30, 2014 compared to approximately 5.5 MMBoe, or 31.9% of total production, for the six-month period ended June 30, 2013.

53

• Total production for the three-month period ended June 30, 2014 was comprised of approximately 37.7% oil, 50.5% natural gas and 11.8% NGLs compared to 42.9% oil, 50.5% natural gas and 6.6% NGLs in the same period of 2013. Total production for the six-month period ended June 30, 2014 was comprised of approximately 39.2% oil, 50.5% natural gas and 10.3% NGLs compared to 43.5% oil, 50.6% natural gas and 5.9% NGLs in the same period of 2013.

2013 Transactions

Sale of Permian Properties. On February 26, 2013, the Company sold the Permian Properties for $2.6 billion. The Company used a portion of the sale proceeds to fund the redemption of approximately $1.1 billion aggregate principal amount of outstanding Senior Fixed Rate Notes, discussed below, and has used and expects to use the remaining proceeds to fund its capital expenditures in the Mid-Continent and for general corporate purposes. The Company recorded a non-cash loss on the sale of $399.1 million during the six-month period ended June 30, 2013, of which $71.7 million was allocated to noncontrolling interests. Additionally, the Company settled a portion of its existing oil derivative contracts in February 2013 prior to their respective maturities to reduce volumes hedged in proportion to the anticipated reduction in daily production volumes due to the sale, which resulted in cash payments of approximately $29.6 million.

Production, revenues and direct operating expenses of the Permian Properties included in the Company’s results for the six-month period ended June 30, 2013 were as follows:

	Six Months Ended June 30, 2013(1)
Production (MBoe)	1,148
Revenues (in thousands)	$	68,027
Direct operating expenses (in thousands)	$	17,453

_______________

(1) Includes activity through February 26, 2013, the date of sale.

Redemption of Senior Fixed Rate Notes. In March 2013, the Company redeemed the outstanding $365.5 million aggregate principal amount of its 9.875% Senior Notes due 2016 and the outstanding $750.0 million aggregate principal amount of its 8.0% Senior Notes due 2018 for total consideration of $1,061.34 per $1,000 principal amount and $1,052.77 per $1,000 principal amount, respectively. The premium paid to redeem these notes and the expense incurred to write off the remaining associated unamortized debt issuance costs resulted in a loss on extinguishment of debt of $82.0 million for the six-month period ended June 30, 2013.

2014 Developments and Outlook

Sale of Gulf of Mexico and Gulf Coast Properties. On February 25, 2014, the Company sold subsidiaries that owned the Gulf Properties, for approximately $703.5 million, net of working capital adjustments and post-closing adjustments, and Fieldwood’s assumption of approximately $366.0 million of related asset retirement obligations. The Company retained a 2.0% overriding royalty interest in certain exploration prospects. The Company is using the proceeds from the sale to fund its drilling in the Mid-Continent. Additionally, the Company settled a portion of its existing oil derivative contracts in January and February 2014 prior to their respective maturities to reduce volumes hedged in proportion to the anticipated reduction in daily production volumes due to the sale, which resulted in cash payments of approximately $69.6 million. Without regard to same-counterparty netting, these derivative contracts were in a liability position at December 31, 2013 of $72.4 million.

Production, 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 Company’s results for the three-month period ended June 30, 2013 and the six-month periods ended June 30, 2014 and 2013 were as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2013		2014(1)		2013
Production (MBoe)	2,616		1,321		5,532
Revenues (in thousands)	$	170,219	$	90,920	$	345,275
Expenses (in thousands)	$	122,222	$	63,674	$	251,392

_______________

(1) Includes activity through February 25, 2014, the date of sale.

54

Outlook

In 2014, the Company is focused on the execution of its highest return projects, enhanced capital discipline and the utilization of its identified competitive advantages. The Company’s 2014 capital expenditures budget is approximately $1.5 billion, with approximately $1.4 billion designated for exploration and production activities.

55

Results by Segment

The Company operates in three business segments: exploration and production, drilling and oil field services and midstream services. These segments represent the Company’s three main business units, each offering different products and services. The exploration and production segment is engaged in the 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 for the Company’s exploration and production operations in the Mid-Continent.

Management evaluates the performance of the Company’s business segments based on income (loss) from operations. Results of these measurements provide important information to the Company about the activity, profitability and contributions of each of the Company’s lines of business. The results of the Company’s business segments for the three and six-month periods ended June 30, 2014 and 2013 are discussed below.

Exploration and Production Segment

The Company generates the majority of its consolidated revenues and cash flow from the production and sale of oil, natural gas and NGLs. The Company’s revenues, profitability and future growth depend substantially on prevailing prices for oil, natural gas and NGLs and on the Company’s ability to find, economically develop and produce its reserves. The primary factors affecting the financial results of the Company’s exploration and production segment are the prices the Company receives for its oil, natural gas and NGL production, the quantity of oil, natural gas and NGLs it produces and changes in the fair value of commodity derivative contracts. Prices for oil, natural gas and NGLs fluctuate widely and are difficult to predict. To provide information on the general trend in pricing, the average NYMEX prices for oil and natural gas during the three and six-month periods ended June 30, 2014 and 2013 are shown in the following table: 

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Oil (per Bbl)	$	102.99	$	94.17	$	100.84	$	94.26
Natural gas (per Mcf)	$	4.58	$	4.02	$	4.65	$	3.76

In order to reduce the Company’s exposure to price fluctuations, the Company enters into commodity derivative contracts for a portion of its anticipated future oil and natural gas production as discussed in “Item 3. Quantitative and Qualitative Disclosures About Market Risk.” Reducing the Company’s exposure to price volatility mitigates the risk that it will not have adequate funds available for its capital expenditure programs.

Saltwater Gathering System. Included within the Company’s full cost pool is a produced water disposal system that included over 900 miles of gathering lines and 178 active disposal wells at June 30, 2014. This system assists in the economically efficient production of oil and natural gas by reducing the overall cost of water disposal, which directly reduces production costs. The system has a current injection capacity of over 2.1 million barrels of water per day.

56

Set forth in the table below is financial, production and pricing information for the exploration and production segment for the three and six-month periods ended June 30, 2014 and 2013.

	Three Months Ended June 30,						Six Months Ended June 30,
	2014 (Restated)			2013 (Restated)			2014 (Restated)			2013 (Restated)
Results (in thousands)
Revenues
Oil	$	239,857		$	341,712		$	519,786		$	715,665
NGL	27,233			18,110			54,822			34,481
Natural gas	72,816			94,460			170,614			182,153
Other	—			4,092			2,022			7,485
Inter-segment revenue	—			(81		)	—			(162		)
Total revenues	339,906			458,293			747,244			939,622
Operating expenses
Production	67,531			125,653			175,017			267,051
Production taxes	7,840			6,564			15,647			16,003
Depreciation and depletion—oil and natural gas	97,267			138,903			212,452			296,429
Accretion of asset retirement obligations	1,065			9,800			6,811			19,579
Impairment	—			—			164,779			—
Loss (gain) on derivative contracts	85,292			(103,654		)	127,783			(62,757		)
(Gain) loss on sale of assets	(22		)	(16		)	(22		)	399,049
Other operating expenses	11,151			47,449			31,471			80,338
Total operating expenses	270,124			224,699			733,938			1,015,692
Income (loss) from operations	$	69,782		$	233,594		$	13,306		$	(76,070	)
Production data
Oil (MBbls)	2,398			3,568			5,283			7,530
NGL (MBbls)	748			551			1,390			1,031
Natural gas (MMcf)	19,240			25,233			40,833			52,554
Total volumes (MBoe)	6,353			8,325			13,479			17,320
Average daily total volumes (MBoe/d)	69.8			91.5			74.5			95.7
Average prices—as reported(1)
Oil (per Bbl)	$	100.02		$	95.77		$	98.39		$	95.04
NGL (per Bbl)	$	36.41		$	32.87		$	39.44		$	33.44
Natural gas (per Mcf)	$	3.78		$	3.74		$	4.18		$	3.47
Total (per Boe)	$	53.50		$	54.57		$	55.29		$	53.83
Average prices—including impact of derivative contract settlements(2)
Oil (per Bbl)	$	96.91		$	100.99		$	96.34		$	99.37
NGL (per Bbl)	$	36.41		$	32.87		$	39.44		$	33.44
Natural gas (per Mcf)	$	3.49		$	3.68		$	3.78		$	3.43
Total (per Boe)	$	51.44		$	56.62		$	53.30		$	55.59

__________________

(1) Prices represent actual average sales prices for the periods presented and do not include effects of derivative transactions.

(2) Excludes settlements of commodity derivative contracts prior to their contractual maturity.

57

The table below presents production by area of operation for the three and six-month periods ended June 30, 2014 and 2013 and illustrates the impact of (i) the Company’s continued development of its Mid-Continent assets, (ii) the sale of the Gulf Properties in February 2014 and (iii) the sale of the Permian Properties in February 2013.

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	Production (MBoe)	% of Total		Production (MBoe)	% of Total		Production (MBoe)	% of Total		Production (MBoe)	% of Total
Mid-Continent	5,273	83.0	%	4,504	54.1	%	9,988	74.1	%	8,255	47.7	%
Gulf of Mexico / Gulf Coast	—	—	%	2,616	31.4	%	1,321	9.8	%	5,532	31.9	%
Permian Basin	540	8.5	%	547	6.6	%	1,078	8.0	%	2,195	12.7	%
Other - west Texas	540	8.5	%	658	7.9	%	1,092	8.1	%	1,338	7.7	%
Total	6,353	100.0	%	8,325	100.0	%	13,479	100.0	%	17,320	100.0	%

Revenues

Exploration and production segment revenues from oil, natural gas and NGL sales decreased $114.4 million, or 25.2%, for the three-month period ended June 30, 2014, from the same period in 2013. The total net decrease was mainly attributable to a decrease of approximately $128.0 million resulting from a 2.0 MMBoe, or 23.7%, decrease in combined production, primarily due to the sale of the Gulf Properties in February 2014. This decrease was partially offset by an increase of $13.6 million primarily due to an increase in the average prices received for oil production. Exploration and production segment revenues from oil, natural gas and NGL sales decreased $187.1 million, or 20.1%, for the six-month period ended June 30, 2014 from the same period in 2013. The total net decrease was mainly attributable to a decrease of approximately $242.1 million resulting from a 3.8 MMBoe, or 22.2%, decrease in combined production primarily due to the sale of the Gulf Properties in February 2014 and the sale of the Permian Properties in February 2013. This decrease was partially offset by an increase of $55.0 million due to an increase in the average prices received for oil, natural gas and NGL production. As illustrated in the table above, the decrease in volumes in the Gulf of Mexico/Gulf Coast areas for the three and six-month periods ended June 30, 2014 and the decrease in volumes for the Permian area for the six-month period ended June 30, 2014 were partially offset by increased production from the Mid-Continent area, as the Company focused on its development of this area.

Operating Expenses

Production expense includes the costs associated with the Company’s exploration and production activities, including, but not limited to, lease operating expense and treating costs. Production expenses decreased $58.1 million, or 46.3%, and $92.0 million, or 34.5%, for the three and six-month periods ended June 30, 2014, respectively, compared to the same periods in 2013 primarily due to the decrease in total production and a decrease in production costs per Boe. During the three and six-month periods ended June 30, 2014, production expense was $10.63 and $12.98 per Boe, respectively, down from the comparable 2013 period rates of $15.09 and $15.42 per Boe, primarily as a result of the sale of the Gulf Properties in February 2014, which had higher production costs inherent with offshore operations.

Production taxes increased by $1.3 million, or 19.4%, and decreased by $0.4 million, or 2.2%, for the three and six-month periods ended June 30, 2014, compared to the same periods in 2013, respectively, primarily as a result of an increase in oil, natural gas and NGL revenue from production in the Mid-Continent area. Production taxes as a percentage of oil, natural gas and NGL revenue increased to approximately 2.3% for the three month period ended June 30, 2014 from 1.4% for the same period of 2013 and to approximately 2.1% for the six-month period ended June 30, 2014 from 1.7% for the same period of 2013 as taxable production from the Mid-Continent partially replaced non-taxable production from the Gulf Properties sold in February 2014.

Depreciation and depletion for the Company’s oil and natural gas properties decreased by $41.6 million and $84.0 million for the three and six-month periods ended June 30, 2014, respectively, compared to the same periods in 2013. These decreases are largely a result of the decrease in the Company’s combined production volumes for the respective periods as well as a decrease in the depreciation and depletion rate per Boe to $15.31 and $15.76 for the three and six-month periods ended June 30, 2014, respectively, from $16.69 and $17.11 for the three and six-month periods ended June 30, 2013, respectively. The decrease in the depreciation and depletion rates is primarily due to the sale of the Gulf Properties in February 2014 and, to a lesser extent, the sale of the Permian Properties in 2013.

Accretion of asset retirement obligations decreased $8.7 million and $12.8 million for the three and six-month periods ended June 30, 2014, respectively, compared to the same periods in 2013, primarily due to the assumption by Fieldwood of asset

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retirement obligations associated with the Gulf Properties sold in February 2014.

The Company incurred an impairment of $164.8 million for the six-month period ended June 30, 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. There was no full cost ceiling impairment for the three-month period ended June 30, 2014 or the three and six-month periods ended June 30, 2013.

The Company recorded a loss (gain) on commodity derivative contracts of $85.3 million and $(103.7) million for the three-month periods ended June 30, 2014 and 2013, respectively, which includes net cash payments (receipts) upon settlement of $13.1 million and $(18.1) million, respectively. The Company recorded a loss (gain) on commodity derivative contracts of $127.8 million and $(62.8) million for the six-month periods ended June 30, 2014, and 2013, respectively, which includes net cash payments upon settlement of $96.4 million and $0.3 million, respectively. Included in these net cash payments are $69.6 million and $29.0 million of payments for early settlements of commodity derivative contracts primarily as a result of the sale of the Gulf Properties in February 2014 and the Permian Properties in February 2013, respectively.

The Company’s derivative contracts are not designated as accounting hedges and, as a result, gains or losses on commodity derivative contracts are recorded each quarter as a component of operating expenses. Internally, management views the settlement of derivative contracts at contractual maturity as adjustments to the price received for oil and natural gas production to determine “effective prices.” Gains or losses on early settlements and losses related to amendments of contracts are not considered in the calculation of effective prices. In general, cash is received on settlement of contracts due to lower oil and natural gas prices at the time of settlement compared to the contract price for the Company’s oil and natural gas price swaps, and cash is paid on settlement of contracts due to higher oil and natural gas prices at the time of settlement compared to the contract price for the Company’s oil and natural gas price swaps.

The company recorded a loss on the sale of assets of $399.1 million for the six-month period ended June 30, 2013 as a result of the sale of the Permian Properties in February 2013. No gain or loss was recognized for the sale of the Gulf Properties in February 2014. See “Note 3 - Divestitures” to the accompanying unaudited condensed consolidated financial statements included in this Quarterly Report for additional discussion of the sale of the Gulf Properties.

See “Consolidated Results of Operations” below for a discussion of other operating expenses.

Drilling and Oil Field Services Segment

The financial results of the Company’s drilling and oil field services segment depend primarily on demand and prices that can be charged for its services. On a consolidated basis, drilling and oil field service revenues earned and expenses incurred in performing services for third parties, including third-party working interests in wells the Company operates, are included in drilling and services revenues and cost of sales. Drilling and oil field service revenues earned and expenses incurred in performing services for the Company’s own account are eliminated in consolidation. The primary factors affecting the results of the Company’s drilling and oil field services segment are the rates received on rigs drilling for third parties, the number of days drilling for third parties and the amount of oil field services provided to third parties.

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Set forth in the table below is financial and operational information for the drilling and oil field services segment for the three and six-month periods ended June 30, 2014 and 2013.

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Results (in thousands)
Revenues	$	51,891		$	47,100		$	98,971		$	96,837
Inter-segment revenue	(33,062		)	(31,011		)	(63,039		)	(63,378		)
Total revenues	18,829			16,089			35,932			33,459
Operating expenses	18,043			24,944			38,248			51,279
Impairment	3,133			10,588			3,133			10,588
Loss from operations	$	(2,347	)	$	(19,443	)	$	(5,449	)	$	(28,408	)
Drilling rig statistics
Average number of operational rigs owned during the period	27.0			27.0			27.0			28.5
Average number of rigs working for third parties	4.7			3.3			5.1			3.4
Number of days drilling for third parties	429			284			923			601
Average drilling revenue per day per rig drilling for third parties(1)	$	14,674		$	15,630		$	14,906		$	15,371
Rig status - June 30							2014			2013
Working for SandRidge							12			9
Working for third parties							5			4
Idle(2)							10			14
Total operational							27			27
Non-operational(3)							3			3
Total rigs							30			30

____________________

(1) Represents revenues from rigs working for third parties, excluding stand-by revenue, divided by the total number of days such drilling rigs were used by third parties during the period. Excludes revenues for related rental equipment.

(2) The Company’s rigs are primarily intended to drill for its own account; as such, the number of idle rigs does not significantly impact the consolidated results of operations.

(3) Non-operational rigs at June 30, 2014 and June 30, 2013 are held for sale.

Drilling and oil field services segment revenues increased $2.7 million and $2.5 million for the three and six-month periods ended June 30, 2014, respectively, compared to the same periods in 2013 primarily due to increased revenues from third parties during the three-month period ended June 30, 2014, which were partially offset by decreases in revenue from oil field services supplies due to the sale of the northwest Oklahoma location in 2013. Drilling and oil field services segment operating expenses decreased $6.9 million during the three-month period ended June 30, 2014, compared to the same period in 2013 due primarily to an increased focus on capital discipline by management. Drilling and oil field services segment operating expenses decreased $13.0 million during the six-month periods ended June 30, 2014, compared to the same period in 2013 due primarily to costs incurred in the first quarter of 2013 associated with maintenance performed on rigs that were stacked as a result of the sale of the Permian Properties, as well as an increased focus on capital discipline by management. During the three and six-month periods ended June 30, 2014 and 2013, the Company recorded impairment of approximately $3.1 million and $10.6 million, respectively, on certain drilling assets identified for sale in order to adjust their carrying values to fair value.

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Midstream Services Segment

Midstream services segment revenues consist mostly of revenue from gas marketing, which is a very low-margin business, and revenues from coordinating the delivery of electricity to the Company’s exploration and production operations in the Mid-Continent area.

Gas Marketing. On a consolidated basis, midstream and marketing revenues include natural gas sold to third parties and the fees the Company charges to gather, compress and treat this natural gas. Gas marketing operating costs represent payments made to third parties for the proceeds from the sale of natural gas owned by such parties, net of any applicable margin, and actual costs the Company incurs to gather, compress and treat the natural gas. In general, natural gas purchased and sold by the Company’s midstream services segment is priced at a published daily or monthly index price. Midstream gas services are primarily undertaken to realize incremental margins on natural gas purchased at the wellhead and to provide value-added services to customers.

Electrical Provision. The Company owns an electrical transmission system in the Mid-Continent that coordinates the delivery of electricity for use in the Company’s exploration and production operations at a lower cost than electricity provided by on-site generation. On a consolidated basis, revenues and expenses from the electrical transmission system relate to electricity for third-party working interest owners in Company operated wells in the Mid-Continent.

The primary factors affecting the results of the Company’s midstream services segment are the quantity of natural gas the Company gathers, treats and markets and the prices it pays and receives for natural gas as well as the fees charged and volumes delivered by the electrical transmission system.

Set forth in the table below is financial and operational information for the midstream services segment for the three and six-month periods ended June 30, 2014 and 2013.

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Results (in thousands)
Operating revenues	$	38,420		$	41,038		$	84,715		$	77,872
Construction contract	—			23,253			—			23,253
Inter-segment revenue	(23,546		)	(26,464		)	(52,196		)	(51,160		)
Total revenues	14,874			37,827			32,519			49,965
Operating expenses	17,219			22,530			36,275			37,127
Construction contract	—			23,253			—			23,253
Loss from operations	$	(2,345	)	$	(7,956	)	$	(3,756	)	$	(10,415	)
Gas Marketed
Volumes (MMcf)	1,888			1,961			3,701			4,009
Average price	$	4.53		$	4.16		$	4.62		$	3.75

Midstream services segment revenues and expenses, excluding construction contract revenue and expense, increased $0.3 million and decreased $5.3 million, respectively, for the three-month period ended June 30, 2014 compared to the same period in 2013. Segment revenues and expenses, excluding construction contract revenue and expense increased $5.8 million and decreased $0.9 million, respectively, for the six-month period ended June 30, 2014 compared to the same period in 2013. The increases in revenue were due primarily to an increase in electrical transmission services provided to third-party working interest owners in the Mid-Continent during the first six months of 2014 compared to 2013, as well as an increase in gas compressor and generator rentals for the respective periods. During the second quarter of 2014, the fee structure for electric usage was revised, which resulted in decreasing revenues for electrical transmission services for the remainder of the second quarter of 2014 and decreasing expenses for electrical transmission for the three and six-month periods ended June 30, 2014. Additionally, operating expenses for the three and six-month periods ended June 30, 2013 include an impairment of $2.1 million on certain midstream pipe inventory and natural gas compressors due to the determination that their future use was limited. No impairment was taken during the three and six-month periods ended June 30, 2014.

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During the second quarter of 2013, the Company substantially completed the construction of a series of electrical transmission expansion and upgrade projects for a third party and, as a result, recognized construction contract revenue and costs equal to $23.3 million. For more information about these projects, see “Note 8 - Construction Contracts” to the accompanying unaudited condensed consolidated financial statements included in this Quarterly Report.

Consolidated Results of Operations

Revenues

The Company’s consolidated revenues for the three and six-month periods ended June 30, 2014 and 2013 are presented in the table below.

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(In thousands)
Revenues
Oil, natural gas and NGL	$	339,906	$	454,282	$	745,222	$	932,299
Drilling and services	18,852		16,078		35,932		33,448
Midstream and marketing	14,874		15,198		32,784		28,230
Construction contract	—		23,253		—		23,253
Other	1,082		4,176		3,832		7,447
Total revenues(1)	$	374,714	$	512,987	$	817,770	$	1,024,677

___________________

(1) Includes $41.8 million and $53.8 million of revenues attributable to noncontrolling interests in consolidated VIEs, after considering the effects of intercompany eliminations, for the three-month periods ended June 30, 2014 and 2013, respectively. Includes $86.1 million and $99.5 million of revenues attributable to noncontrolling interests in consolidated VIEs, after considering the effects of intercompany eliminations, for the six-month periods ended June 30, 2014 and 2013, respectively.

The Company’s primary sources of revenue are discussed in “Results by Segment.” See discussion of oil, natural gas and NGL revenues under “Results by Segment—Exploration and Production Segment,” discussion of drilling and services revenues under “Results by Segment—Drilling and Oil Field Services Segment” and discussion of midstream and marketing and construction contract revenues under “Results by Segment—Midstream Services Segment.”

Other revenues decreased for the three and six-month periods ended June 30, 2014 compared to the same periods in 2013 due primarily to a decrease in revenues from the Bullwinkle and other offshore platforms, which were included in the sale of the Gulf Properties in February 2014.

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Expenses

The Company’s consolidated expenses for the three and six-month periods ended June 30, 2014 and 2013 are presented below.

	Three Months Ended June 30,					Six Months Ended June 30,
	2014 (Restated)		2013 (Restated)			2014 (Restated)		2013 (Restated)
	(In thousands)
Expenses
Production	$	66,953	$	124,883		$	173,809	$	265,340
Production taxes	7,840		6,564			15,647		16,003
Cost of sales	10,469		15,348			22,950		31,665
Midstream and marketing	13,254		14,927			29,254		26,730
Construction contract	—		23,253			—		23,253
Depreciation and depletion—oil and natural gas	97,267		138,903			212,452		296,429
Depreciation and amortization—other	15,411		16,022			30,933		31,358
Accretion of asset retirement obligations	1,065		9,800			6,811		19,579
Impairment	3,133		15,643			167,912		15,643
General and administrative	31,102		65,541			61,531		134,587
Employee termination benefits	813		107,720			8,922		118,118
Loss (gain) on derivative contracts	85,292		(103,654		)	127,783		(62,757		)
Loss (gain) on sale of assets	36		(349		)	17		397,825
Total expenses(1)	$	332,635	$	434,601		$	858,021	$	1,313,773

___________________

(1) Includes $26.0 million and $8.5 million of expenses attributable to noncontrolling interests in consolidated VIEs, after considering the effects of intercompany eliminations, for the three-month periods ended June 30, 2014 and 2013, respectively. Includes $76.0 million and $105.5 million of expenses attributable to noncontrolling interests in consolidated VIEs, after considering the effects of intercompany eliminations, for the six-month periods ended June 30, 2014 and 2013, respectively. Expenses attributable to noncontrolling interests in consolidated VIEs for the six-month periods ended June 30, 2014 and 2013 include $29.9 million of allocated full cost ceiling impairment and $71.7 million of allocated loss on sale of assets associated with the sale of the Permian Properties, respectively.

See discussion of production expenses, production taxes, depreciation and depletion—oil and natural gas, accretion of asset retirement obligations, impairment, loss (gain) on derivative contracts and loss (gain) on sale of assets under “Results by Segment—Exploration and Production Segment,” discussion of cost of sales and impairment under “Results by Segment— Drilling and Oil Field Services Segment” and discussion of midstream and marketing expense under “Results by Segment—Midstream Services Segment.”

General and administrative expenses decreased $34.4 million, or 52.5%, for the three-month period ended June 30, 2014 from the same period in 2013 due primarily to decreases of $20.7 million in compensation, largely resulting from changes to the Company’s annual incentive plan in the second quarter of 2013 and a decrease in headcount during 2014, and $7.3 million in costs related to a stockholder consent solicitation that occurred in 2013. General and administrative expenses decreased $73.1 million, or 54.3%, for the six-month period ended June 30, 2014 from the same period in 2013 due primarily to a decrease of $20.6 million in costs related to a stockholder consent solicitation that occurred in 2013 and decreases of $31.0 million in compensation, $5.8 million in professional services costs and $4.1 million in promotional and advertising costs, primarily as a result of corporate cost cutting measures and a decrease in headcount during 2014.

Employee termination benefits in the six-month period ended June 30, 2014 represent severance costs of $8.9 million incurred in conjunction with the sale of the Gulf Properties. Employee termination benefits of $107.7 million and $118.1 million for the three and six-month periods ended June 30, 2013 represent severance costs associated with former Company executives. Of the total employee termination benefits for each 2013 period, approximately $95.0 million, including amounts associated with the accelerated vesting of restricted stock awards, were attributable to the Company’s former Chairman and CEO.

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Other Income (Expense), Taxes and Net Income (Loss) Attributable to Noncontrolling Interest

The Company’s other income (expense), taxes and net income (loss) attributable to noncontrolling interest for the three and six-month periods ended June 30, 2014 and 2013 are presented in the table below.

	Three Months Ended June 30,						Six Months Ended June 30,
	2014 (Restated)			2013 (Restated)			2014 (Restated)			2013 (Restated)
	(In thousands)
Other income (expense)
Interest expense	$	(61,863	)	$	(61,159	)	$	(123,906	)	$	(147,069	)
Loss on extinguishment of debt	—			—			—			(82,005		)
Other income (expense), net	1,338			(106		)	3,432			505
Total other expense	(60,525		)	(61,265		)	(120,474		)	(228,569		)
(Loss) income before income taxes	(18,446		)	17,121			(160,725		)	(517,665		)
Income tax (benefit) expense	(1,194		)	508			(1,067		)	4,937
Net (loss) income	(17,252		)	16,613			(159,658		)	(522,602		)
Less: net income (loss) attributable to noncontrolling interest	15,642			45,121			9,572			(6,798		)
Net loss attributable to SandRidge Energy, Inc.	$	(32,894	)	$	(28,508	)	$	(169,230	)	$	(515,804	)

Interest expense for the three and six-month periods ended June 30, 2014 and 2013 consisted of the following:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(In thousands)
Interest expense
Interest expense on debt	$	63,509		$	63,046		$	126,887		$	149,282
Amortization of debt issuance costs, discounts and premium	2,471			2,478			4,961			6,158
Interest rate swap loss	—			—			—			14
Capitalized interest	(4,117		)	(4,365		)	(7,942		)	(8,385		)
Total interest expense	$	61,863		$	61,159		$	123,906		$	147,069

Total interest expense decreased $23.2 million for the six-month period ended June 30, 2014 compared to the same period in 2013, primarily due to a reduction in interest expense associated with the senior notes repurchased and redeemed in the first quarter of 2013. See “Note 9 - Long-Term Debt” to the accompanying unaudited condensed consolidated financial statements included in this Quarterly Report for additional discussion of the Company’s long-term debt transactions in 2013.

The Company recognized a loss on extinguishment of debt of $82.0 million for the six-month period ended June 30, 2013 in connection with the redemption and repurchase of certain of its senior notes. This loss represents the premium paid to redeem the notes and the expense incurred to write off the remaining unamortized debt issuance costs associated with the notes.

The Company’s tax expense and effective tax rate for the three and six-month periods ended June 30, 2014 continue to be low as a result of the valuation allowance against its net deferred tax asset. The Company’s income tax benefit of $1.1 million for the six-month period ending June 30, 2014 is primarily related to a reduction in the Company’s gross unrecognized tax benefits following a favorable outcome pertaining to the Company’s state audits. The Company's income tax expense of $4.9 million for the six-month period ending June 30, 2013 is primarily related to federal alternative minimum tax (“AMT”), associated with the tax year ending December 31, 2013. The Company recorded a current liability and a corresponding deferred tax asset each in the amount of $4.0 million for the six-month period ended June 30, 2013 for the AMT. As a result of recording a deferred tax asset, the Company increased its valuation allowance against its net deferred tax asset by $4.0 million.

Net income (loss) attributable to noncontrolling interest represents the portion of net income (loss) attributable to third-party ownership in the Company’s consolidated VIEs and subsidiaries. Net income attributable to noncontrolling interest decreased to $15.6 million for the three-month period ended June 30, 2014 from $45.1 million during the same period in 2013, primarily due to losses from changes in fair value recognized on the Royalty Trusts’ derivative contracts as well as losses on contracts that settled in the three-month period ended June 30, 2014 compared to gains recognized from changes in fair value as well as gains

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on contracts that settled during the same period in 2013. Income for the six-month period ended June 30, 2014 includes the full cost ceiling impairment attributable to noncontrolling interest of $29.9 million compared to the loss on the sale of the Permian Properties attributable to noncontrolling interest of $71.7 million included in the six-month period ended June 30, 2013. Additionally, net income attributable to noncontrolling interest includes the impact of an increase in losses from changes in fair value recognized on the Royalty Trusts’ derivative contracts for the six-month period ended June 30, 2014 compared to the same period in 2013.

Liquidity and Capital Resources

The Company’s primary sources of liquidity and capital resources are cash on hand, cash flows from operating activities, proceeds from monetizations of assets, borrowings under the senior credit facility, funding commitments from third parties for drilling carries and the issuance of equity and debt securities in the capital markets. As described in “2014 Developments and Outlook,” the Company received proceeds of approximately $703.5 million, net of working capital adjustments and post-closing adjustments, for the sale of its Gulf Properties in February 2014.

The Company’s primary uses of capital are expenditures related to its oil and natural gas properties, such as costs related to the drilling and completion of wells, including to fulfill its drilling commitments to the Royalty Trusts, the acquisition of oil and natural gas properties and other fixed assets, the payment of dividends on its outstanding convertible perpetual preferred stock, interest payments on its outstanding debt and, from time to time, the repayment of long-term debt. The Company maintains access to funds that may be needed to meet capital funding requirements through its senior credit facility.

    The Company’s 2014 budget for capital expenditures, including expenditures related to the Company’s drilling programs for the Permian Trust and Mississippian Trust II and net of $205.6 million in drilling carries estimated to be received in 2014, is approximately $1.5 billion. See “Note 6 - Property, Plant and Equipment” to the accompanying unaudited condensed consolidated financial statements included in this Quarterly Report for discussion of the drilling carries. The Company expects to fund its near term capital and debt service requirements and working capital needs with cash on hand ($0.9 billion at June 30, 2014), cash flow from operations and available borrowing capacity under its $775.0 million senior credit facility, which is undrawn, other than $10.4 million in letters of credit secured by the senior credit facility that reduce availability on a dollar for dollar basis, at June 30, 2014. The Company has no maturities of long-term debt prior to 2020, and may choose to issue new long-term debt, subject to market availability, as an alternative to borrowing under its senior credit facility. Alternatively, the Company may issue equity or other non-debt securities in the capital markets, depending on market conditions, to address its funding requirements. In the longer term, the Company expects an increasing portion of its funding needs to be covered by increased cash flows from operations, resulting from its drilling program combined with cost cutting initiatives implemented in 2013, and may issue long-term debt or equity or monetize non-core assets to cover any difference between cash flow from operations and capital needs. Further, the majority of the Company’s capital expenditures is discretionary and could be curtailed if the Company’s cash flows decline from expected levels.

The Company and one of its wholly owned subsidiaries are parties to development agreements with the Permian Trust and Mississippian Trust II that obligate the Company to drill, or cause to be drilled, a specified number of wells within specific areas of mutual interest for each Royalty Trust by March 31, 2016 and December 31, 2016, respectively. In addition, production targets contained in certain gathering and treating arrangements require the Company to incur capital expenditures or make associated shortfall payments.

A substantial or extended decline in oil or natural gas prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows and quantities of oil, natural gas and NGL reserves that may be economically produced, which could adversely impact the Company’s ability to comply with the financial covenants under its senior credit facility, which in turn would limit borrowings to fund capital expenditures. The Company may increase or decrease planned capital expenditures depending on oil and natural gas prices and the availability of funding from the sources described above.

The Company’s revenue, profitability and future growth are substantially dependent upon the prevailing and future prices for oil and natural gas, which depend on numerous factors beyond the Company’s control such as overall oil and natural gas production and inventories in relevant markets, economic conditions, the global political environment, regulatory developments and competition from other energy sources. Oil and natural gas prices historically have been volatile and may be subject to significant fluctuations in the future. The Company’s derivative arrangements serve to mitigate a portion of the effect of this price volatility on its cash flows. To this end, collars and fixed price swap contracts are in place for portions of expected oil and natural gas production in both 2014 and 2015. Currently, no collars or fixed price swap contracts are in place for any of the Company’s oil and natural gas production beyond 2015.

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The Company may from time to time seek to retire or purchase its outstanding debt securities through cash purchases and/or exchanges in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, the Company’s liquidity requirements, contractual restrictions and other factors.

As of June 30, 2014, the Company’s cash and cash equivalents were $0.9 billion, including $6.7 million attributable to the Company’s consolidated VIEs which is available to satisfy only obligations of the VIEs. The Company had approximately $3.2 billion in total debt outstanding and $10.4 million in outstanding letters of credit with no amount outstanding under its senior credit facility at June 30, 2014. As of and during the three and six-month period ended June 30, 2014, the Company was in compliance with applicable covenants under its senior credit facility and outstanding Senior Fixed Rate Notes. As of August 1, 2014, the Company’s cash and cash equivalents were approximately $806.4 million, including $6.4 million attributable to the Company’s consolidated VIEs. Additionally, there was no amount outstanding under the Company’s senior credit facility and $10.4 million in outstanding letters of credit which reduced the availability under the senior credit facility to $764.6 million.

Working Capital

The Company’s working capital balance fluctuates as a result of changes in the fair value of its outstanding commodity derivative instruments and due to fluctuations in the timing and amount of its collection of receivables and payment of expenditures related to its exploration and production operations.

At June 30, 2014, the Company had a working capital surplus of $565.3 million compared to a surplus of $308.0 million at December 31, 2013. Current assets increased by $47.8 million and current liabilities decreased by $209.5 million at June 30, 2014, compared to December 31, 2013. The increase in current assets is primarily due to a $104.1 millionincrease in cash and cash equivalents that resulted from the receipt of proceeds from the sale of the Gulf Properties in February 2014, partially offset by cash used for operating activities and capital expenditures. This increase was further offset by decreases of $26.9 million in prepaid expenses and $15.9 million in accounts receivable, also due primarily to the sale of the Gulf Properties as well as fluctuations in the timing and amount of collections of receivables, and a decrease of $12.7 million in the net asset position of the Company’s current derivative contracts due to an increase in the future market prices for oil and natural gas compared to contract prices since December 31, 2013, and the settlement of derivative contracts during the six-month period ended June 30, 2014. The decrease in current liabilities is primarily due to a decrease of $164.1 million in accounts payable and accrued expenses and a decrease of $87.1 million in the current asset retirement obligation, primarily due to the sale of the Gulf Properties. Additionally, accounts payable and accrued expenses further decreased due to distributions paid to noncontrolling interest owners, the payment of accrued 2013 bonuses and other changes due primarily to fluctuations in the timing and amount of the payment of expenditures related to exploration and production operations during the six-month period ended June 30, 2014. These decreases in current liabilities were slightly offset by an increase of $22.5 million in the net liability position of the Company’s current derivative contracts, an increase of $16.8 million as a result of accruing the CO₂ shortfall penalty attributable to the six-month period ended June 30, 2014, and a liability of $12.0 million recognized as a result of the Company’s guarantee on behalf of Fieldwood of certain plugging and abandonment obligations as of June 30, 2014.

Cash Flows

The Company’s cash flows for the six-month periods ended June 30, 2014 and 2013 are presented in the following table and discussed below:

	Six Months Ended June 30,
	2014			2013
	(In thousands)
Cash flows provided by operating activities	$	230,792		$	384,683
Cash flowsprovided by investing activities	34,547			1,726,699
Cash flows used in financing activities	(161,244		)	(1,326,807		)
Net increase in cash and cash equivalents	$	104,095		$	784,575

Cash Flows from Operating Activities

The Company’s operating cash flow is primarily influenced by the prices the Company receives for its oil, natural gas and NGL production, the quantity of oil, natural gas and NGLs it produces, settlements of derivative contracts, and third-party demand for its drilling rigs and oil field services and the rates it is able to charge for these services. The Company’s cash flows from operating activities are also impacted by changes in working capital.

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Net cash provided by operating activities for the six-month period ended June 30, 2014 decreased from the comparable period in 2013 due primarily to a decrease in oil and natural gas production as a result of the sale of the Gulf Properties in February 2014, which was slightly offset by an increase in prices for oil and natural gas and an increase in production in the Mid-Continent area. Also contributing to the decrease were changes in operating assets and liabilities during 2014, primarily related to the decrease in accounts payable and accrued expenses and an increase in cash paid on the settlement of derivative contracts, including payments for early settlements of commodity derivative contracts as a result of the sale of the Gulf Properties in February 2014.

Cash Flows from Investing Activities

The Company dedicates and expects to continue to dedicate a substantial portion of its capital expenditure program toward the exploration for and production of oil and natural gas. These capital expenditures are necessary to offset inherent declines in production and proven reserves, which is typical in the capital-intensive oil and natural gas industry.

Cash flows provided by investing activities were $34.5 million for the six-month period ended June 30, 2014 compared to $1.7 billion for the same period in 2013. During the six-month period ended June 30, 2014, the Company received proceeds from the sale of assets of $707.8 million primarily as a result of the sale of the Gulf Properties, which were largely offset by capital expenditures during the period. During the six-month period ended June 30, 2013, the Company received proceeds of $2.6 billion from the sale of the Permian Properties, which were partially offset by capital expenditures during the period.

Capital Expenditures. The Company’s capital expenditures, on an accrual basis, by segment for the six-month periods ended June 30, 2014 and 2013 are summarized below:

	Six Months Ended June 30,
	2014		2013
	(In thousands)
Capital Expenditures
Exploration and production	$	620,809	$	716,173
Drilling and oil field services	7,275		1,515
Midstream services	11,766		30,332
Other	12,860		27,850
Capital expenditures, excluding acquisitions	652,710		775,870
Acquisitions	16,553		8,602
Total	$	669,263	$	784,472

Capital expenditures, excluding acquisitions, decreased by $123.2 million for the six-month period ended June 30, 2014 from the same period in 2013 primarily due to an increased focus on capital discipline by the Company’s management.

Cash Flows from Financing Activities

The Company’s financing activities used $161.2 million of cash for the six-month period ended June 30, 2014 compared to $1.3 billion in the same period in 2013. The decrease is due primarily to the redemption of $1.1 billion of senior notes as well as the $62.0 million premium paid in connection with the redemption of these notes during the six-month period ended June 30, 2013. During the six-month period ended June 30, 2014, the Company paid $44.1 million for the early settlement of financing derivatives as a result of the sale of the Gulf Properties. Partially offsetting these payments were decreases of $22.9 million in treasury stock purchases as a result of a decrease in shares of restricted stock that were traded for taxes upon vesting during the six-month period ended June 30, 2014 compared to the same period in 2013 and proceeds from the sale of Royalty Trust units of $22.1 million during the six-month period ended June 30, 2014.

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Indebtedness

Long-term debt consists of the following at June 30, 2014 (in thousands):

8.75% Senior Notes due 2020, net of $4,938 discount	$	445,062
7.5% Senior Notes due 2021, including premium of $3,708	1,178,708
8.125% Senior Notes due 2022	750,000
7.5% Senior Notes due 2023, net of $3,605 discount	821,395
Total debt	$	3,195,165

The indentures governing the Senior Fixed Rate Notes contain covenants imposing certain restrictions on the Company’s activities, including, but not limited to, limitations on the incurrence of indebtedness, payment of dividends, investments, asset sales, certain asset purchases, transactions with related parties and consolidations or mergers. As of and during the three and six-month periods ended June 30, 2014, the Company was in compliance with all of the covenants contained in the indentures governing its outstanding Senior Fixed Rate Notes.

Maturities of Long-Term Debt. As of June 30, 2014, there are no maturities of long-term debt until January 2020.

Senior Credit Facility. The amount the Company may borrow under its senior credit facility is limited to a borrowing base, and is subject to periodic redeterminations. The Company’s borrowing base is generally redetermined in April and October of each year, and was reaffirmed at $775.0 million in April 2014. The next redetermination is expected to take place in October 2014. Quarterly, the Company pays a commitment fee assessed at an annual rate of 0.5% on any available portion of the senior credit facility. The borrowing base is determined based upon the discounted present value of future cash flows attributable to the Company’s proved reserves. Because the value of the Company’s proved reserves is a key factor in determining the amount of the borrowing base, changing commodity prices and the Company’s success in developing reserves may affect the borrowing base.

At June 30, 2014, the Company had no amount outstanding under the senior credit facility and $10.4 million in outstanding letters of credit, which reduced the availability under the senior credit facility to $764.6 million. As of and during the three and six-month periods ended June 30, 2014, the Company was in compliance with all applicable financial covenants under the senior credit facility.

For more information about the senior credit facility and the Senior Fixed Rate Notes, see “Note 9 - Long-Term Debt” to the unaudited condensed consolidated financial statements included in this Quarterly Report.

Contractual Obligations and Off-Balance Sheet Arrangements

The Company’s contractual obligations include long-term debt obligations, a gas gathering agreement, transportation and throughput agreements, third-party drilling rig agreements, asset retirement obligations, operating leases and other individually insignificant obligations. From time to time, the Company enters into transactions that give rise to significant contractual obligations or otherwise result in significant changes to existing contractual obligations. The sale of the Gulf Properties in February 2014 resulted in the following changes to contractual obligations presented in the 2013 Form 10-K/A.

• Asset Retirement Obligations. As of February 25, 2014, the date of the sale, asset retirement obligations associated with the divested Gulf Properties were assumed by Fieldwood. The total obligation assumed was $366.0 million, with approximately $81.4 million due in 2014, $34.2 million due in 2015, $51.8 million due in 2016, $52.4 million due in 2017, $11.7 million due in 2018, and $134.5 million due thereafter.

• Guarantees. As of June 30, 2014, the fair value of the Company’s guarantees of plugging and abandonment obligations associated with the Gulf Properties was $12.0 million. For additional information about the guarantees, which could extend through February 2015, see “Note 3 - Divestitures” to the unaudited condensed consolidated financial statements included in this Quarterly Report.

Critical Accounting Policies and Estimates

For a description of the Company’s critical accounting policies and estimates, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2013 Form 10-K/A. For a discussion of recent

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accounting pronouncements not yet adopted, see “Note 1 - Basis of Presentation” to the Company’s accompanying unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report.

Valuation Allowance

In 2008 and 2009, the Company recorded full cost ceiling impairments totaling $3.5 billion on its oil and natural gas assets, resulting in the Company being in a net deferred tax asset position. Management considered all available evidence and concluded that it was more likely than not that some or all of the deferred tax assets would not be realized and established a valuation allowance against the Company’s net deferred tax asset for the period ended December 31, 2008. This valuation allowance has been maintained since 2008. See “Note 14 - Income Taxes” to the accompanying unaudited condensed consolidated financial statements included in this Quarterly Report for more discussion on maintaining the valuation allowance against the Company’s net deferred tax asset.

Management continues to closely monitor all available evidence in considering whether to maintain a valuation allowance on its net deferred tax asset. Factors considered are, but not limited to, the reversal periods of existing deferred tax liabilities and deferred tax assets, the historical earnings of the Company and the prospects of future earnings. For purposes of the valuation allowance analysis, “earnings” is defined as pre-tax earnings as adjusted for permanent tax adjustments.

The Company was in a cumulative negative earnings position until the 36-month period ended December 31, 2012 at which time it reached cumulative positive earnings. However, as a result of the Company closing the sale of the Permian Properties on February 26, 2013, the Company reverted back to a cumulative negative earnings position for the 36-month period ended March 31, 2013. See “Note 3 - Divestitures” to the Company’s unaudited condensed consolidated financial statements included in this Quarterly Report for discussion of the sale of the Permian Properties. Based on net book value, historical costs and proved reserves as of February 26, 2013, the Company recorded a loss on the sale of $398.9 million, which caused the Company to report a loss for the year ended December 31, 2013. The Company remains in a cumulative negative earnings position through the 36-month period ended June 30, 2014. The resulting cumulative negative earnings are not a definitive factor in determining to maintain a valuation allowance as all available evidence should be considered, but it is a significant piece of negative evidence in management’s analysis.

The Company’s revenue, profitability and future growth are substantially dependent upon prevailing and future prices for oil and natural gas. The markets for these commodities continue to be volatile. Relatively modest drops in prices can significantly affect the Company’s financial results and impede its growth. Changes in oil and natural gas prices have a significant impact on the value of the Company’s reserves and on its cash flow. Prices for oil and natural gas may fluctuate widely in response to relatively minor changes in the supply of and demand for oil and natural gas and a variety of additional factors that are beyond the Company’s control. Due to these factors, management has placed a lower weight on the prospects of future earnings in its overall analysis of the valuation allowance.

In determining whether to maintain the valuation allowance, management concluded that the objectively verifiable negative evidence of cumulative negative earnings for the 36-month period ending June 30, 2014, is difficult to overcome with any forms of positive evidence that may exist. Accordingly, management has not changed its judgment regarding the need for a full valuation allowance against its net deferred tax asset. The valuation allowance against the Company’s net deferred tax asset at December 31, 2013 was $702.7 million.

Additionally, at December 31, 2013, the Company had valuation allowances totaling $50.8 million against specific deferred tax assets for which management has determined it is more likely than not that such deferred tax assets will not be realized for various reasons. The valuation allowance against these specific deferred tax assets would not be impacted by the foregoing discussion.

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ITEM 3.Quantitative and Qualitative Disclosures About Market Risk

General

This discussion provides information about the financial instruments the Company uses to manage commodity prices, including instruments used to manage commodity prices for production attributable to the Royalty Trusts. All contracts are settled in cash and do not require the actual delivery of a commodity at settlement. Additionally, the Company’s use of interest rate swaps to manage its variable interest rate debt in prior periods is also discussed.

Commodity Price Risk. The Company’s most significant market risk relates to the prices it receives for its oil, natural gas and NGL production. Due to the historical price volatility of these commodities, the Company periodically has entered into, and expects in the future to enter into, derivative arrangements for the purpose of reducing the variability of oil and natural gas prices the Company receives for its production. From time to time, the Company enters into commodity pricing derivative contracts for a portion of its anticipated oil and natural gas production volumes depending upon management’s view of opportunities under the then-prevailing current market conditions. The Company’s senior credit facility limits its ability to enter into derivative transactions to 85% of expected production volumes from estimated proved reserves.

The Company uses, and may continue to use, a variety of commodity-based derivative contracts, including fixed price swaps, collars and basis swaps. At June 30, 2014, the Company’s commodity derivative contracts consisted of fixed price swaps and collars, which are described below:

Fixed price swaps	The Company receives a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume.
Collars	Two-way collars contain a fixed floor price (put) and a fixed ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, the Company receives the fixed price and pays the market price. If the market price is between the call and the put strike price, no payments are due from either party.
	Three-way collars have two fixed floor prices (a purchased put and a sold put) and a fixed ceiling price (call). The purchased put establishes a minimum price unless the market price falls below the sold put, at which point the minimum price would be NYMEX plus the difference between the purchased put and the sold put strike price. The call establishes a maximum price (ceiling) the Company will receive for the volumes under the contract. If the market price is between the ceiling price and the purchased put, no payments are due from either party.

The Company’s oil fixed price swap transactions are settled based upon the average daily prices for the calendar month or quarter of the contract period. The Company’s three-way oil collars are settled based upon the arithmetic average of NYMEX oil prices during the calculation period for the relevant contract. The Company’s natural gas fixed price swap transactions are settled based upon the NYMEX prices on the final commodity business day for the relevant contract, and the Company’s natural gas collars are settled based upon the NYMEX prices on the penultimate commodity business day for the relevant contract. Settlement for oil derivative contracts occurs in the succeeding month or quarter and natural gas derivative contracts are settled in the production month or quarter.

At June 30, 2014, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	2,054	$	99.08
January 2015 - December 2015	5,588	$	92.44

Natural Gas Price Swaps

	Notional (MMcf)	Weighted Average Fixed Price
July 2014 - December 2014	24,840	$	4.28
January 2015 - December 2015	15,400	$	4.50

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Oil Collars - Three-way

	Notional (MBbls)	Sold Put	Purchased Put	Sold Call
July 2014 - December 2014	4,140	$70.00	$90.20	$100.00
January 2015 - December 2015	3,656	$74.83	$90.35	$103.50

Natural Gas Collars

	Notional (MMcf)	Collar Range
July 2014 - December 2014	472	$4.00	—	$7.78
January 2015 - December 2015	1,010	$4.00	—	$8.55

Because the Company has not designated any of its derivative contracts as hedges for accounting purposes, changes in fair values of the Company’s derivative contracts are recognized as gains and losses in current period earnings. As a result, the Company’s current period earnings may be significantly affected by changes in the fair value of its commodity derivative contracts. Changes in fair value are principally measured based on future prices as of period-end compared to the contract price.

The Company recorded a loss (gain) on commodity derivative contracts of $85.3 million and $(103.7) million for the three-month periods ended June 30, 2014 and 2013, respectively, which includes net cash payments (receipts) upon settlement of $13.1 million and $(18.1) million, respectively. The Company recorded a loss (gain) on commodity derivative contracts of $127.8 million and $(62.8) million for the six-month periods ended June 30, 2014, and 2013, respectively, which includes net cash payments upon settlement of $96.4 million and $0.3 million, respectively. Included in these net cash payments are $69.6 million and $29.0 million of payments for early settlements of commodity derivative contracts primarily as a result of the sale of the Gulf Properties in February 2014 and the Permian Properties in February 2013, respectively.

See “Note 10 - Derivatives” to the accompanying unaudited condensed consolidated financial statements included in this Quarterly Report for additional information regarding the Company’s commodity derivatives.

Credit Risk. All of the Company’s derivative transactions have been carried out in the over-the-counter market. The use of derivative transactions in over-the-counter markets 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 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 contract 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. As of June 30, 2014, all of the Company’s open derivative contracts are with counterparties that share in the collateral supporting the Company’s senior credit facility. As a result, the Company is not required to post additional collateral under its derivative contracts. To secure their obligations under the derivative contracts novated by the Company, the Permian Trust and Mississippian Trust II have each given the counterparties to such contracts a lien on their royalty interests. See “Note 4 - Variable Interest Entities” to the accompanying unaudited condensed consolidated financial statements included in this Quarterly Report for additional information on the Permian Trust’s and the Mississippian Trust II’s derivative contracts.

The Company’s ability to fund its capital expenditures budget is partially dependent upon the availability of funds under its senior credit facility. In order to mitigate the credit risk associated with individual financial institutions committed to participate in the senior credit facility, the Company’s bank group currently consists of 23 financial institutions with commitments ranging from 1.00% to 6.00% of the borrowing base.

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Interest Rate Risk. 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. The Company had no outstanding variable rate debt as of June 30, 2014.

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.

The Company recorded a loss on its interest rate swap of $0.01 million for the six-month period ended June 30, 2013, respectively, which is included in interest expense in the consolidated statements of operations. Included in the loss for the six-month period ended June 30, 2013, are cash payments upon contract settlement of $2.4 million.

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ITEM 4.Controls and Procedures

Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), consisting of controls and other procedures designed to give reasonable assurance that information the Company is required to disclose in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding such required disclosure. At the time the Original Filing was filed on August 7, 2014, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2014.

Subsequent to that evaluation, and in the course of a routine review of the Company’s filings by the staff of the SEC, management determined that a material weakness in internal control over financial reporting as further described below existed as of June 30, 2014. As a result of the determination of a material weakness in the Company’s internal control over financial reporting, the Company’s Chief Executive Officer and Chief Financial Officer have now concluded that the Company’s disclosure controls and procedures were not effective as of June 30, 2014.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

We did not design and maintain effective internal controls because of the absence of a control over the accounting and valuation related to the appropriate interim period in which to record an amount, if any, for the annual CO₂ delivery shortfall penalty under the Company’s 30-year treating agreement with Occidental. Specifically, based on the prior method of accounting for such annual shortfall penalty, management did not evaluate whether an accrual for some or all of such annual penalty was needed within each quarterly period prior to the fourth quarter. Management concluded that this deficiency constituted a material weakness as defined in the Securities and Exchange Commission regulations. This material weakness resulted in the misstatement of accounts payable and accrued expenses and production expense and in the restatement of the unaudited interim periods ended June 30, 2014 and March 31, 2014 and for each of the interim periods in the year ended December 31, 2013. Additionally, this material weakness could result in a misstatement of the aforementioned account balances or disclosures that would result in a material misstatement to the interim consolidated financial statements that would not be prevented or detected.

Remediation Plan

The Company is remediating the material weakness by revising, clarifying and implementing accounting policies and controls related to the shortfall penalty and, among other things, implementing controls for enhanced review of the Occidental penalty to determine if an accrual is appropriate during each interim period. These actions are subject to ongoing senior management review and Audit Committee oversight. Management believes the foregoing efforts will effectively remediate the material weakness. As the Company continues to evaluate and work to improve its internal control over financial reporting, management may execute additional measures to address the material weakness or modify the remediation plan described and will continue to review and make necessary changes to the overall design of its internal controls.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the quarter ended June 30, 2014 that has materially affected, or is reasonably likely to materially affect its internal control over financial reporting.

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PART II. Other Information

ITEM 1.Legal Proceedings

On April 5, 2011, Wesley West Minerals, Ltd. and Longfellow Ranch Partners, LP filed suit against the Company and SandRidge Exploration and Production, LLC (collectively, the “SandRidge Entities”) in the 83rd District Court of Pecos County, Texas. The plaintiffs, who have leased mineral rights to the SandRidge Entities in Pecos County, allege that the SandRidge Entities have not properly paid royalties on all volumes of natural gas and CO ₂ produced from the acreage leased from the plaintiffs. The plaintiffs also allege that the SandRidge Entities have inappropriately failed to pay royalties on CO₂ produced from the plaintiffs’ acreage that results from the treatment of natural gas at the Century Plant. The plaintiffs seek approximately $45.5 million in actual damages for the period of time between January 2004 and December 2011, punitive damages and a declaration that the SandRidge Entities must pay royalties on CO ₂ produced from the plaintiffs’ acreage that results from treatment of natural gas at the Century Plant. The Commissioner of the General Land Office of the State of Texas (“GLO”) is named as an additional defendant in the lawsuit as some of the affected oil and natural gas leases described in the plaintiffs’ allegations cover mineral classified lands in which the GLO is entitled to one-half of the royalties attributable to such leases. The GLO has filed a cross-claim against the SandRidge Entities asserting the same claims as the plaintiffs with respect to the leases covering mineral classified lands and seeking approximately $13.0 million in actual damages, inclusive of penalties and interest. On February 5, 2013, the Company received a favorable summary judgment ruling that effectively removes a majority of the plaintiffs’ and GLO’s claims. On April 29, 2013, the court entered an order allowing for an interlocutory appeal of its summary judgment ruling, and on May 15, 2014, oral arguments on the appeal were presented to the Court of Appeals for the Eighth District of Texas. The Company intends to continue to defend the remaining issues in this lawsuit as well as any appellate proceedings. At the time of the ruling on summary judgment, the lawsuit was still in the discovery stage and, accordingly, an estimate of reasonably possible losses associated with the remaining causes of action, if any, cannot be made until all of the facts, circumstances and legal theories relating to such claims and the 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

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• 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 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 CEO, Tom Ward, breached his fiduciary duties by usurping corporate opportunities, (ii) certain of the Company’s current and former directors breached their fiduciary duties of care, (iii) Mr. Ward and certain of the Company’s current and former directors wasted corporate assets, (iv) certain entities allegedly affiliated with Mr. Ward aided and abetted Mr. Ward’s breaches of fiduciary duties, (v) Mr. Ward and entities allegedly affiliated with Mr. Ward misappropriated the Company’s confidential and proprietary information, and (vi) entities allegedly affiliated with Mr. Ward were unjustly enriched. The defendants have filed respective motions to dismiss the amended consolidated complaint, which are pending before the court.

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.

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.

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 Chief Executive Officer (“CEO”) Tom Ward. The defendants have filed respective motions to dismiss the consolidated

75

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 the defendants’ defenses are fully disclosed and analyzed. The Company has not established any reserves relating to the Securities Litigation. Each of the Mississippian Trusts has requested that the Company indemnify it for any losses it may incur in connection with the Securities Litigation.

On July 15, 2013, James Hart and fifteen other named plaintiffs filed an amended complaint in the United States District Court for the District of Kansas in an action undertaken individually and on behalf of others similarly situated against SandRidge Energy, Inc., SandRidge Operating Company, SandRidge E&P, SandRidge Midstream, Inc., and Lariat Services, Inc. In their amended complaint, plaintiffs allege that the defendants failed to properly calculate overtime pay for the plaintiffs and for other similarly situated current and former employees. The plaintiffs further allege that the defendants required the plaintiffs and other similarly situated current and former employees to engage in work-related activities without pay. The plaintiffs assert claims against the defendants for (i) violations of the Fair Labor Standards Act, (ii) violations of the Kansas Wage Payment Act, (iii) breach of contract, and (iv) fraud, and seek to recover unpaid wages and overtime pay, liquidated damages, statutory penalties, economic damages, compensatory and punitive damages, attorneys’ fees and costs, and both pre- and post-judgment interest.

On October 3, 2013, the plaintiffs filed a Motion for Conditional Collective Action Certification and for Judicial Notice to the Class and a Motion to Toll the Statute of Limitations. On October 11, 2013, the defendants filed a Motion to Dismiss and a Motion to Transfer Venue to the United States District Court for the Western District of Oklahoma. 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.

OnDecember 18, 2013, the Company received a subpoena duces tecum from the U.S. Department of Justice in connection with an ongoinginvestigation of possible violations of antitrust laws in connection with the purchase or lease of land, oil or natural gas rights.  The Company is cooperating with the investigation.

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.

ITEM 1A.Risk Factors

There has been no material change to the risk factors previously discussed in Item 1A—Risk Factors in the Company’s 2013 Form 10-K/A.

76

ITEM 2.Unregistered Sales of Equity Securities and Use of Proceeds

As part of the Company’s restricted stock program, the Company makes required tax payments on behalf of employees when their 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 shares withheld are initially recorded as treasury shares, then immediately retired. During the quarter ended June 30, 2014, the following shares were withheld in satisfaction of tax withholding obligations arising from the vesting of restricted stock:

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
April 1, 2014 — April 30, 2014	8,796	$	6.47	N/A	N/A
May 1, 2014 — May 31, 2014	17,260	$	6.60	N/A	N/A
June 1, 2014 — June 30, 2014	2,319	$	7.20	N/A	N/A

ITEM 6.Exhibits

See the Exhibit Index accompanying this Quarterly Report.

77

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

SandRidge Energy, Inc.
By:	/s/    EDDIE M. LEBLANC
	Eddie M. LeBlanc Executive Vice President and Chief Financial Officer

Date: January 8, 2015

78

EXHIBIT INDEX

		Incorporated by Reference
Exhibit No.	Exhibit Description	Form	SEC File No.	Exhibit	Filing Date	Filed Herewith
3.1	Certificate of Incorporation of SandRidge Energy, Inc.	S-1	333-148956	3.1	1/30/2008
3.2	Certificate of Amendment to the Certificate of Incorporation of SandRidge Energy, Inc., dated July 16, 2010	10-Q	001-33784	3.2	8/9/2010
3.3	Amended and Restated Bylaws of SandRidge Energy, Inc.	8-K	001-33784	3.1	3/9/2009
31.1	Section 302 Certification—Chief Executive Officer					*
31.2	Section 302 Certification—Chief Financial Officer					*
32.1	Section 906 Certifications of Chief Executive Officer and Chief Financial Officer					*
101.INS	XBRL Instance Document					*
101.SCH	XBRL Taxonomy Extension Schema Document					*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document					*
101.DEF	XBRL Taxonomy Extension Definition Document					*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document					*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document					*

79

EX-31.1

Exhibit 31.1

Certification of the Company's Chief Executive Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 7241)

I, James D. Bennett, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A of SandRidge Energy, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ James D. Bennett

James D. Bennett

President and Chief Executive Officer

Date: January 8, 2015

EX-31.2

Exhibit 31.2

Certification of the Company's Chief Financial Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 7241)

I, Eddie M. LeBlanc, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A of SandRidge Energy, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Eddie M. LeBlanc

Eddie M. LeBlanc

Executive Vice President and Chief Financial Officer

Date: January 8, 2015

EX-32.1

Exhibit 32.1

Certification of the Company's Chief Executive Officer and Chief Financial Officer Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

Pursuant to 18 U.S.C. § 1350, the undersigned officers of SandRidge Energy, Inc. (the “Company”), hereby certify that the Company's Quarterly Report on Form 10-Q/A for the quarterly period ended June 30, 2014 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James D. Bennett

James D. Bennett

President and Chief Executive Officer

January 8, 2015

/s/ Eddie M. LeBlanc

Eddie M. LeBlanc

Executive Vice President and Chief Financial Officer

January 8, 2015

XML

Earnings (Loss) per Share (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings (Loss) Per Share

The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted loss per share, for the three and six-month periods ended June 30, 2014 and 2013:

	Net Loss			Weighted Average Shares		Loss Per Share
	(In thousands, except per share amounts)
Three Months Ended June 30, 2014 (Restated)
Basic loss per share	$	(46,775	)	485,318		$	(0.10	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(46,775	)	485,318		$	(0.10	)
Three Months Ended June 30, 2013 (Restated)
Basic loss per share	$	(42,389	)	$	479,154	$	(0.09	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(42,389	)	479,154		$	(0.09	)
Six Months Ended June 30, 2014 (Restated)
Basic loss per share	$	(196,993	)	485,059		$	(0.41	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(196,993	)	485,059		$	(0.41	)
Six Months Ended June 30, 2013 (Restated)
Basic loss per share	$	(543,567	)	478,494		$	(1.14	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(543,567	)	478,494		$	(1.14	)

____________________

(1) Restricted stock awards covering 2.0 million and 2.6 million shares for the three and six-month periods ended June 30, 2014, respectively, and 0.2 million and 3.6 million shares for the three and six-month periods ended June 30, 2013, respectively, were excluded from the computation of loss per share because their effect would have been antidilutive.

(2) Potential common shares related to the Company’s outstanding 8.5%, 6.0% and 7.0% convertible perpetual preferred stock covering 90.1 million shares for the three and six-month periods ended June 30, 2014 and 2013 were excluded from the computation of loss per share because their effect would have been antidilutive under the if-converted method.

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Variable Interest Entities - Royalty Trusts - Open Oil and Natural Gas Commodity Derivative Contracts (Details)	6 Months Ended
	Jun. 30, 2014 MBbls
Oil Price Swaps | July 2014 - December 2014
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	2,054
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf)	99.08
Oil Price Swaps | January 2015 - December 2015
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	5,588
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf)	92.44
Natural Gas Collars | July 2014 - December 2014
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	472
Collar Range, minimum	4.00
Collar Range, maximum	7.78
Natural Gas Collars | January 2015 - December 2015
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	1,010
Collar Range, minimum	4.00
Collar Range, maximum	8.55
Royalty Trusts | Oil Price Swaps | July 2014 - December 2014
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	823
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf)	101.01
Royalty Trusts | Oil Price Swaps | January 2015 - December 2015
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	904
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf)	97.78
Royalty Trusts | Natural Gas Collars | July 2014 - December 2014
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	472
Collar Range, minimum	4.00
Collar Range, maximum	7.78
Royalty Trusts | Natural Gas Collars | January 2015 - December 2015
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	1,010
Collar Range, minimum	4.00
Collar Range, maximum	8.55
Novated Contract | Royalty Trusts | Oil Price Swaps | July 2014 - December 2014
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	473
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf)	100.76
Novated Contract | Royalty Trusts | Oil Price Swaps | January 2015 - March 2015
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	141
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf)	100.90

XML

Divestitures - Permian Properties Disposal - Revenue and Expense Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Disposal, Revenue and Expense Information
Revenues	$ 374,714		$ 512,987		$ 817,770		$ 1,024,677
Direct operating expenses	98,516	[1]	184,975	[1]	241,660	[1]	362,991	[1]
Permian Properties
Disposal, Revenue and Expense Information
Revenues							68,027	[2]
Direct operating expenses							$ 17,453	[2]

[1] Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2.

[2] Includes revenues and direct operating expenses through February 26, 2013, the date of sale.

XML

Property, Pland and Equipment - Additional Information (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Property, Plant and Equipment
Cumulative full cost ceiling limitation impairment	$ 3,700,000,000		$ 3,500,000,000
Full cost ceiling limitation impairment	164,800,000
Proved oil and natural gas properties, cost incurred in excess of development agreement	180,000,000
Repsol E&P USA, Inc.
Property, Plant and Equipment
Minimum net wells	484
Net wells	143
Repsol E&P USA, Inc.
Property, Plant and Equipment
Drilling carry received or billed	175,400,000
Atinum MidCon I, LLC and Repsol E&P USA, Inc.
Property, Plant and Equipment
Drilling carry received or billed		248,300,000
Maximum | Repsol E&P USA, Inc. | Potential drilling carry costs
Property, Plant and Equipment
Total drilling carry	$ 75,000,000.0

XML

Variable Interest Entities - Royalty Trusts - Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets (Details) (USD $)	Jun. 30, 2014		Dec. 31, 2013		Jun. 30, 2013	Dec. 31, 2012
Variable Interest Entity
Cash and cash equivalents	$ 918,758,000		$ 814,663,000		$ 1,094,341,000	$ 309,766,000
Accounts receivable, net	333,300,000		349,218,000
Derivative contracts	115,000		12,779,000
Total current assets	1,289,616,000		1,241,823,000
Investment in royalty interests(2)	11,116,131,000		11,504,422,000
Less: accumulated depletion and impairment(3)	(6,138,833,000)		(5,762,969,000)
Net oil and natural gas properties capitalized costs	4,977,298,000		5,741,453,000
Derivative contracts	2,826,000		14,126,000
Accounts payable and accrued expenses	648,434,000	[1]	812,488,000
Derivative contracts, current	56,728,000		34,267,000
Royalty Trusts
Variable Interest Entity
Cash and cash equivalents	6,722,000	[2]	7,912,000	[2]
Accounts receivable, net	18,887,000		22,540,000
Derivative contracts	0		4,983,000
Total current assets	25,609,000		35,435,000
Investment in royalty interests(2)	1,325,942,000	[3]	1,325,942,000	[3]
Less: accumulated depletion and impairment(3)	(258,186,000)	[4]	(186,095,000)	[4]
Net oil and natural gas properties capitalized costs	1,067,756,000		1,139,847,000
Derivative contracts	0		1,476,000
Total assets	1,093,365,000		1,176,758,000
Accounts payable and accrued expenses	2,318,000		3,393,000
Derivative contracts, current	968,000		0
Total liabilities	$ 3,286,000		$ 3,393,000

[1] Guarantor and Consolidated accounts payable and accrued expenses have been restated to reflect accrual of the CO2 shortfall penalty. See Note 2.

[2] Includes $3.0 million held by the trustee at June 30, 2014 and December 31, 2013 as reserves for future general and administrative expenses.

[3] Investment in royalty interests is included in oil and natural gas properties in the accompanying unaudited condensed consolidated balance sheets.

[4] Accumulated depletion and impairment at June 30, 2014 includes full cost ceiling limitation impairment allocated to the Royalty Trusts of $42.3 million. There was no full cost ceiling limitation impairment allocated to the Royalty Trusts as of December 31, 2013.

XML

Derivatives - Open Commodity Derivative Contracts (Details)	6 Months Ended
	Jun. 30, 2014 MBbls
July 2014 - December 2014 | Oil Price Swaps
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	2,054
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf)	99.08
July 2014 - December 2014 | Natural Gas Price Swaps
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	24,840
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf)	4.28
July 2014 - December 2014 | Oil Collars - Three Way
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	4,140
July 2014 - December 2014 | Natural Gas Collars
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	472
Collar Range, minimum	4.00
Collar Range, maximum	7.78
July 2014 - December 2014 | Sold Put | Oil Collars - Three Way
Derivative Instruments and Hedging Activities Disclosure
Collar Range, minimum	70.00
July 2014 - December 2014 | Purchased Put | Oil Collars - Three Way
Derivative Instruments and Hedging Activities Disclosure
Collar Range, minimum	90.20
July 2014 - December 2014 | Sold Call | Oil Collars - Three Way
Derivative Instruments and Hedging Activities Disclosure
Collar Range, maximum	100.00
January 2015 - December 2015 | Oil Price Swaps
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	5,588
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf)	92.44
January 2015 - December 2015 | Natural Gas Price Swaps
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	15,400
Weighted Avg. Fixed Price (Oil in USD/bbl, Natural Gas in USD/mcf)	4.50
January 2015 - December 2015 | Oil Collars - Three Way
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	3,656
January 2015 - December 2015 | Natural Gas Collars
Derivative Instruments and Hedging Activities Disclosure
Notional (Oil in MBbls/Natural Gas in MMcf)	1,010
Collar Range, minimum	4.00
Collar Range, maximum	8.55
January 2015 - December 2015 | Sold Put | Oil Collars - Three Way
Derivative Instruments and Hedging Activities Disclosure
Collar Range, minimum	74.83
January 2015 - December 2015 | Purchased Put | Oil Collars - Three Way
Derivative Instruments and Hedging Activities Disclosure
Collar Range, minimum	90.35
January 2015 - December 2015 | Sold Call | Oil Collars - Three Way
Derivative Instruments and Hedging Activities Disclosure
Collar Range, maximum	103.50

XML

Restatement of Previously Issued Financial Statements - Condensed Consolidated Balance Sheets (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Current assets
Costs in excess of billings and contract loss	$ 0		$ 0
Other current assets	25,106		25,910
Current liabilities
Accounts payable and accrued expenses	648,434	[1]	812,488
Total current liabilities	724,333		933,818
Total liabilities	3,999,393		4,509,168
Equity
Accumulated deficit	(3,657,455)		(3,460,462)
Total SandRidge Energy, Inc. stockholders’ equity	1,639,807		1,825,810
Total equity	2,913,426		3,175,627
As Reported
Current assets
Costs in excess of billings and contract loss	3,435		4,079
Other current assets	21,671		21,831
Current liabilities
Accounts payable and accrued expenses	631,658
Total current liabilities	707,557
Total liabilities	3,982,617
Equity
Accumulated deficit	(3,640,679)
Total SandRidge Energy, Inc. stockholders’ equity	1,656,583
Total equity	$ 2,930,202

[1] Guarantor and Consolidated accounts payable and accrued expenses have been restated to reflect accrual of the CO2 shortfall penalty. See Note 2.

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Other Assets (Tables)

6 Months Ended

Jun. 30, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

Other assets consist of the following (in thousands):

	June 30, 2014		December 31, 2013
Debt issuance costs, net of amortization	$	57,220	$	61,923
Investments	10,740		13,708
Deferred tax asset	7,143		—
Restricted deposits(1)	—		27,955
Notes receivable on asset retirement obligations(1)	—		11,640
Other	3,455		5,945
Total other assets	$	78,558	$	121,171

____________________

(1) Assets reflected at December 31, 2013 were included in the sale of the Gulf Properties in February 2014, as discussed in Note 3.

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Derivatives - Additional Information (Details) (USD $)	3 Months Ended		6 Months Ended		1 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Apr. 30, 2013
Derivative Instruments and Hedging Activities Disclosure
Loss (gain) on derivative contracts	$ 85,292,000	$ (103,654,000)	$ 127,783,000	$ (62,757,000)
Mississippian Trust I
Derivative Instruments and Hedging Activities Disclosure
Commodity derivative contracts covering volumes of oil and gas production, date			Dec. 31, 2015
Permian Trust
Derivative Instruments and Hedging Activities Disclosure
Commodity derivative contracts covering volumes of oil and gas production, date			Mar. 31, 2015
Mississippian Trust II
Derivative Instruments and Hedging Activities Disclosure
Commodity derivative contracts covering volumes of oil and gas production, date			Dec. 31, 2014
Senior Floating Rate Notes due 2014 | Fixed To Floating Interest Rate Swap Through April 1st 2013
Derivative Instruments and Hedging Activities Disclosure
Contract period end					Apr. 01, 2013
Notional amount of interest rate swaps					350,000,000
Derivative, fixed interest rate					6.69%
Commodity Derivatives
Derivative Instruments and Hedging Activities Disclosure
Loss (gain) on derivative contracts	85,300,000	(103,700,000)	127,800,000	(62,800,000)
Cash | Commodity Derivatives
Derivative Instruments and Hedging Activities Disclosure
Loss (gain) on derivative contracts	13,100,000	(18,100,000)	96,400,000	300,000
Cash | Commodity Derivatives | Early Settlements
Derivative Instruments and Hedging Activities Disclosure
Loss (gain) on derivative contracts			$ 69,600,000	$ 29,000,000

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Long-Term Debt (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Debt Instrument
Debt	$ 3,195,165		$ 3,194,907
Less: current maturities of long-term debt	0		0
Long-term debt	3,195,165		3,194,907
Senior credit facility
Debt Instrument
Debt	0		0
8.75% Senior Notes due 2020, net of $4,938 and $5,264 discount, respectively
Debt Instrument
Debt	445,062	[1]	444,736	[1]
7.5% Senior Notes due 2021, including premium of $3,708 and $3,922, respectively
Debt Instrument
Debt	1,178,708	[2]	1,178,922	[2]
8.125% Senior Notes due 2022
Debt Instrument
Debt	750,000		750,000
7.5% Senior Notes due 2023, net of $3,605 and $3,751 discount, respectively
Debt Instrument
Debt	$ 821,395	[3]	$ 821,249	[3]

[1] Carrying value is net of $4,938 and $5,264 discount at June 30, 2014 and December 31, 2013, respectively.

[2] Carrying value includes a premium, applicable to notes issued in August 2012, of $3,708 and $3,922 at June 30, 2014 and December 31, 2013, respectively.

[3] Carrying value is net of $3,605 and $3,751 discount at June 30, 2014 and December 31, 2013, respectively.

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Earnings (Loss) per Share - Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings (Loss) Per Share (Parenthetical) (Details) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2.0	0.2	2.6	3.6
Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	90.1	90.1	90.1	90.1
8.5% Convertible perpetual preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred stock, dividend rate, percentage			8.50%
6.0% Convertible perpetual preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred stock, dividend rate, percentage			6.00%
7.0% Convertible perpetual preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred stock, dividend rate, percentage			7.00%

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Variable Interest Entities - Royalty Trusts - Ownership Interest (Details)	Jun. 30, 2014	Dec. 31, 2013
Mississippian Trust I
Variable Interest Entity
Beneficial interest owned by Company	26.90%	26.90%
Permian Trust
Variable Interest Entity
Beneficial interest owned by Company	25.00%	28.50%
Mississippian Trust II
Variable Interest Entity
Beneficial interest owned by Company	37.60%	37.60%

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Derivatives - Fair Value of Derivative Contracts (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Derivatives, Fair Value
Derivative assets	$ 6,490	$ 50,274
Derivative liabilities	(65,810)	(78,200)
Total net derivative contracts	(59,320)	(27,926)
Current assets
Derivatives, Fair Value
Derivative assets	3,471	18,368
Current assets | Oil Price Swaps
Derivatives, Fair Value
Derivative assets	981	15,887
Current assets | Natural Gas Price Swaps
Derivatives, Fair Value
Derivative assets	2,355	1,598
Current assets | Oil Collars - Three Way
Derivatives, Fair Value
Derivative assets	0	706
Current assets | Natural Gas Collars
Derivatives, Fair Value
Derivative assets	135	177
Noncurrent assets
Derivatives, Fair Value
Derivative assets	3,019	31,906
Noncurrent assets | Oil Price Swaps
Derivatives, Fair Value
Derivative assets	1,412	19,376
Noncurrent assets | Natural Gas Price Swaps
Derivatives, Fair Value
Derivative assets	224	0
Noncurrent assets | Oil Collars - Three Way
Derivatives, Fair Value
Derivative assets	1,228	12,189
Noncurrent assets | Natural Gas Collars
Derivatives, Fair Value
Derivative assets	155	341
Current liabilities
Derivatives, Fair Value
Derivative liabilities	(60,084)	(39,856)
Current liabilities | Oil Price Swaps
Derivatives, Fair Value
Derivative liabilities	(35,033)	(38,396)
Current liabilities | Natural Gas Price Swaps
Derivatives, Fair Value
Derivative liabilities	(4,865)	(1,460)
Current liabilities | Oil Collars - Three Way
Derivatives, Fair Value
Derivative liabilities	(20,186)	0
Noncurrent liabilities
Derivatives, Fair Value
Derivative liabilities	(5,726)	(38,344)
Noncurrent liabilities | Oil Price Swaps
Derivatives, Fair Value
Derivative liabilities	(4,882)	(38,344)
Noncurrent liabilities | Oil Collars - Three Way
Derivatives, Fair Value
Derivative liabilities	$ (844)	$ 0

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Income Taxes - Provision (Benefit) for Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Current
Federal	$ 0	$ (344)	$ 0	$ 4,015
State	(1,194)	852	(1,067)	922
Current, total	(1,194)	508	(1,067)	4,937
Deferred
Federal	0	0	0	0
State	0	0	0	0
Deferred, total	0	0	0	0
Total (benefit) provision	(1,194)	508	(1,067)	4,937
Non-controlling Interest
Deferred
Total (benefit) provision	88	71	170	146
Parent
Deferred
Total (benefit) provision	$ (1,282)	$ 437	$ (1,237)	$ 4,791

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Asset Retirement Obligations - Reconciliation of Beginning and Ending Aggregate Carrying Amounts of Asset Retirement Obligations (Parenthetical) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended		1 Months Ended
	Jun. 30, 2014		Feb. 28, 2014
Reconciliation Of Changes In Asset Retirement Obligations
Liability settled or disposed in current period(1)	$ (377,662)	[1]
Gulf Properties
Reconciliation Of Changes In Asset Retirement Obligations
Liability settled or disposed in current period(1)			$ (366,000)

[1] Includes $366.0 million associated with the Gulf Properties sold in February 2014.

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Income Taxes - Additional Information (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2010
Income Taxes
Federal net operating loss carryforwards subject to the IRC Section 382 limitation			$ 923.0
Unrecognized tax benefits	0.1	1.4
Unrecognized tax benefits, accrued interest and penalties		0.1
Decrease in gross unrecognized tax benefits balance within next twelve months	0
Beginning tax year
Income Taxes
Beginning tax year, years open for federal examination	2010
Beginning tax year as result of federal NOL carryforwards
Income Taxes
Beginning tax year, years open for federal examination	2005
Minimum
Income Taxes
Number of tax years open for state tax audit (in years)	3 years
Maximum
Income Taxes
Number of tax years open for state tax audit (in years)	5 years

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Derivatives - Offsetting Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Assets
Derivative assets, gross amounts	$ 6,490	$ 50,274
Derivative assets, gross amounts offset	(3,549)	(23,369)
Derivative assets, current	115	12,779
Derivative assets, noncurrent	2,826	14,126
Derivative assets, amounts net of offset	2,941	26,905
Derivative assets, financial collateral	0	0
Derivative assets, net amount	2,941	26,905
Liabilities
Derivative liabilities, gross amounts	65,810	78,200
Derivative liabilities, gross amounts offset	(3,549)	(23,369)
Derivative contracts	56,728	34,267
Derivative liabilities, noncurrent	5,533	20,564
Derivative liabilities, amounts net of offset	62,261	54,831
Derivative liabilities, financial collateral	(62,261)	(54,831)
Derivative liabilities, net amount	0	0
Current assets
Assets
Derivative assets, gross amounts	3,471	18,368
Derivative assets, gross amounts offset	(3,356)	(5,589)
Derivative assets, financial collateral	0	0
Derivative assets, net amount	115	12,779
Noncurrent assets
Assets
Derivative assets, gross amounts	3,019	31,906
Derivative assets, gross amounts offset	(193)	(17,780)
Derivative assets, financial collateral	0	0
Derivative assets, net amount	2,826	14,126
Current liabilities
Liabilities
Derivative liabilities, gross amounts	60,084	39,856
Derivative liabilities, gross amounts offset	(3,356)	(5,589)
Derivative liabilities, financial collateral	(56,728)	(34,267)
Derivative liabilities, net amount	0	0
Noncurrent liabilities
Liabilities
Derivative liabilities, gross amounts	5,726	38,344
Derivative liabilities, gross amounts offset	(193)	(17,780)
Derivative liabilities, financial collateral	(5,533)	(20,564)
Derivative liabilities, net amount	$ 0	$ 0

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Other Assets (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Debt issuance costs, net of amortization	$ 57,220		$ 61,923
Investments	10,740		13,708
Deferred tax asset	7,143		0
Restricted deposits(1)	0	[1]	27,955	[1]
Notes receivable on asset retirement obligations(1)	0	[1]	11,640	[1]
Other	3,455		5,945
Total other assets	$ 78,558		$ 121,171

[1] Assets reflected at December 31, 2013 were included in the sale of the Gulf Properties in February 2014, as discussed in Note 3.

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Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2014

Condensed Consolidating Financial Statements Disclosure [Abstract]

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information

The Company provides condensed consolidating financial information for its subsidiaries that are guarantors of its registered debt. As of June 30, 2014, the subsidiary guarantors, which are 100% owned by the Company, have jointly and severally guaranteed, on a full, unconditional and unsecured basis, the Company’s outstanding Senior Fixed Rate Notes. The subsidiary guarantees (i) rank equally in right of payment with all of the existing and future senior debt of the subsidiary guarantors; (ii) rank senior to all of the existing and future subordinated debt of the subsidiary guarantors; (iii) are effectively subordinated in right of payment to any existing or future secured obligations of the subsidiary guarantors to the extent of the value of the assets securing such obligations; (iv) are structurally subordinated to all debt and other obligations of the subsidiaries of the guarantors who are not themselves subsidiary guarantors; and (v) are only released under certain customary circumstances. The Company’s subsidiary guarantors guarantee payments of principal and interest under the Company’s registered notes.

Certain of the Company’s wholly owned subsidiaries that were sold in February 2014, as discussed in Note 3, guaranteed the Company’s registered debt. Upon the closing of the sale, these subsidiaries were released from their guarantees. The condensed consolidating financial information in the tables below reflects these subsidiaries’ financial information through the date of the sale.

The following condensed consolidating financial information represents the financial information of SandRidge Energy, Inc., its wholly owned subsidiary guarantors and its non-guarantor subsidiaries, prepared on the equity basis of accounting. The non-guarantor subsidiaries, including consolidated VIEs, majority owned subsidiaries and certain immaterial wholly owned subsidiaries, are included in the non-guarantors column in the tables below. The financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the subsidiary guarantors operated as independent entities.

Condensed Consolidating Balance Sheets

	June 30, 2014 (Restated)
	Parent		Guarantors(1)		Non-Guarantors		Eliminations			Consolidated(1)
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	910,633	$	1,249	$	6,876	$	—		$	918,758
Accounts receivable, net	—		315,004		18,296		—			333,300
Intercompany accounts receivable	278,510		1,347,065		57,708		(1,683,283		)	—
Derivative contracts	—		2,179		115		(2,179		)	115
Prepaid expenses	—		12,345		—		(8		)	12,337
Other current assets	1,388		23,703		15		—			25,106
Total current assets	1,190,531		1,701,545		83,010		(1,685,470		)	1,289,616
Property, plant and equipment, net	—		4,435,593		1,106,226		—			5,541,819
Investment in subsidiaries	6,010,522		18,366		—		(6,028,888		)	—
Derivative contracts	—		3,473		1,568		(2,215		)	2,826
Other assets	64,364		20,077		19		(5,902		)	78,558
Total assets	$	7,265,417	$	6,179,054	$	1,190,823	$	(7,722,475	)	$	6,912,819
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	201,911	$	442,744	$	3,787	$	(8	)	$	648,434
Intercompany accounts payable	1,341,438		303,834		38,011		(1,683,283		)	—
Derivative contracts	—		55,875		3,032		(2,179		)	56,728
Other current liabilities	7,144		12,027		—		—			19,171
Total current liabilities	1,550,493		814,480		44,830		(1,685,470		)	724,333
Investment in subsidiaries	873,956		146,639		—		(1,020,595		)	—
Long-term debt	3,201,067		—		—		(5,902		)	3,195,165
Derivative contracts	—		7,101		647		(2,215		)	5,533
Asset retirement obligations	—		55,210		—		—			55,210
Other long-term obligations	94		19,058		—		—			19,152
Total liabilities	5,625,610		1,042,488		45,477		(2,714,182		)	3,999,393
Equity
SandRidge Energy, Inc. stockholders’ equity	1,639,807		5,136,566		1,145,346		(6,281,912		)	1,639,807
Noncontrolling interest	—		—		—		1,273,619			1,273,619
Total equity	1,639,807		5,136,566		1,145,346		(5,008,293		)	2,913,426
Total liabilities and equity	$	7,265,417	$	6,179,054	$	1,190,823	$	(7,722,475	)	$	6,912,819

(1) Guarantor and Consolidated accounts payable and accrued expenses have been restated to reflect accrual of the CO₂ shortfall penalty. See Note 2.

	December 31, 2013 (Revised)
	Parent(1)		Guarantors(2)		Non-Guarantors		Eliminations(1)(2)			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	805,505	$	1,013	$	8,145	$	—		$	814,663
Accounts receivable, net	—		326,345		22,873		—			349,218
Intercompany accounts receivable	153,325		982,524		70,107		(1,205,956		)	—
Derivative contracts	—		7,796		14,748		(9,765		)	12,779
Prepaid expenses	—		39,165		88		—			39,253
Other current assets	1,376		24,410		124		—			25,910
Total current assets	960,206		1,381,253		116,085		(1,215,721		)	1,241,823
Property, plant and equipment, net	—		5,125,543		1,182,132		—			6,307,675
Investment in subsidiaries	6,009,603		49,418		—		(6,059,021		)	—
Derivative contracts	—		12,650		9,585		(8,109		)	14,126
Other assets	61,923		65,123		27		(5,902		)	121,171
Total assets	$	7,031,732	$	6,633,987	$	1,307,829	$	(7,288,753	)	$	7,684,795
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	207,572	$	601,074	$	3,842	$	—		$	812,488
Intercompany accounts payable	967,365		181,573		57,018		(1,205,956		)	—
Derivative contracts	—		44,032		—		(9,765		)	34,267
Asset retirement obligations	—		87,063		—		—			87,063
Total current liabilities	1,174,937		913,742		60,860		(1,215,721		)	933,818
Investment in subsidiaries	828,794		152,266		—		(981,060		)	—
Long-term debt	3,200,809		—		—		(5,902		)	3,194,907
Derivative contracts	—		28,673		—		(8,109		)	20,564
Asset retirement obligations	—		337,054		—		—			337,054
Other long-term obligations	1,382		21,443		—		—			22,825
Total liabilities	5,205,922		1,453,178		60,860		(2,210,792		)	4,509,168
Equity
SandRidge Energy, Inc. stockholders’ equity	1,825,810		5,180,809		1,246,969		(6,427,778		)	1,825,810
Noncontrolling interest	—		—		—		1,349,817			1,349,817
Total equity	1,825,810		5,180,809		1,246,969		(5,077,961		)	3,175,627
Total liabilities and equity	$	7,031,732	$	6,633,987	$	1,307,829	$	(7,288,753	)	$	7,684,795

____________________

(1) Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $828.8 million, as liabilities and to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to Guarantor full cost pool (property, plant and equipment, net) and a reduction to Parent equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

(2) Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $152.3 million, as liabilities. Property, plant and equipment, net has been revised to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to the Guarantor full cost pool (property, plant and equipment, net) and a reduction to Guarantor equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

Condensed Consolidating Statements of Operations

	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Three Months Ended June 30, 2014 (Restated)
Total revenues	$	—		$	314,521		$	60,205	$	(12	)	$	374,714
Expenses
Direct operating expenses(1)	—			93,597			4,931		(12		)	98,516
General and administrative	71			30,481			1,363		—			31,915
Depreciation, depletion, amortization and accretion	—			99,237			14,506		—			113,743
Impairment	—			3,133			—		—			3,133
Loss on derivative contracts	—			67,509			17,783		—			85,292
Loss on sale of assets	—			36			—		—			36
Total expenses(1)	71			293,993			38,583		(12		)	332,635
(Loss) income from operations(1)	(71		)	20,528			21,622		—			42,079
Equity earnings from subsidiaries	27,725			5,863			—		(33,588		)	—
Interest expense	(61,859		)	(4		)	—		—			(61,863		)
Other income, net	—			1,338			—		—			1,338
(Loss) income before income taxes(1)	(34,205		)	27,725			21,622		(33,588		)	(18,446		)
Income tax (benefit) expense	(1,311		)	—			117		—			(1,194		)
Net (loss) income(1)	(32,894		)	27,725			21,505		(33,588		)	(17,252		)
Less: net income attributable to noncontrolling interest	—			—			—		15,642			15,642
Net (loss) income attributable to SandRidge Energy, Inc.(1)	$	(32,894	)	$	27,725		$	21,505	$	(49,230	)	$	(32,894	)

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Three Months Ended June 30, 2013 (Restated)
Total revenues	$	—		$	425,319		$	81,956		$	5,712		$	512,987
Expenses
Direct operating expenses(1)	—			173,539			6,156			5,280			184,975
General and administrative	88			171,652			1,089			432			173,261
Depreciation, depletion, amortization and accretion	—			141,299			23,426			—			164,725
Impairment	—			12,703			2,940			—			15,643
Gain on derivative contracts	—			(88,653		)	(15,001		)	—			(103,654		)
Gain on sale of assets	—			(340		)	(9		)	—			(349		)
Total expenses(1)	88			410,200			18,601			5,712			434,601
(Loss) income from operations(1)	(88		)	15,119			63,355			—			78,386
Equity earnings from subsidiaries	33,378			18,233			—			(51,611		)	—
Interest (expense) income	(61,392		)	233			—			—			(61,159		)
Other (expense) income, net	—			(207		)	101			—			(106		)
(Loss) income before income taxes(1)	(28,102		)	33,378			63,456			(51,611		)	17,121
Income tax expense	406			—			102			—			508
Net (loss) income(1)	(28,508		)	33,378			63,354			(51,611		)	16,613
Less: net income attributable to noncontrolling interest	—			—			—			45,121			45,121
Net (loss) income attributable to SandRidge Energy, Inc.(1)	$	(28,508	)	$	33,378		$	63,354		$	(96,732	)	$	(28,508	)

____________________

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2014 (Restated)
Total revenues	$	—		$	693,570		$	124,299	$	(99	)	$	817,770
Expenses
Direct operating expenses(1)	—			232,018			9,741		(99		)	241,660
General and administrative	220			67,426			2,807		—			70,453
Depreciation, depletion, amortization and accretion	—			219,814			30,382		—			250,196
Impairment	—			125,599			42,313		—			167,912
Loss on derivative contracts	—			101,611			26,172		—			127,783
Loss on sale of assets	—			17			—		—			17
Total expenses(1)	220			746,485			111,415		(99		)	858,021
(Loss) income from operations(1)	(220		)	(52,915		)	12,884		—			(40,251		)
Equity earnings from subsidiaries	(46,259		)	3,086			—		43,173			—
Interest (expense) income	(124,045		)	139			—		—			(123,906		)
Other income, net	—			3,431			1		—			3,432
(Loss) income before income taxes(1)	(170,524		)	(46,259		)	12,885		43,173			(160,725		)
Income tax (benefit) expense	(1,294		)	—			227		—			(1,067		)
Net (loss) income(1)	(169,230		)	(46,259		)	12,658		43,173			(159,658		)
Less: net income attributable to noncontrolling interest	—			—			—		9,572			9,572
Net (loss) income attributable to SandRidge Energy, Inc.(1)	$	(169,230	)	$	(46,259	)	$	12,658	$	33,601		$	(169,230	)

____________________

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2013 (Restated)
Total revenues	$	—		$	865,636		$	159,484		$	(443	)	$	1,024,677
Expenses
Direct operating expenses(1)	—			345,046			18,388			(443		)	362,991
General and administrative	175			248,470			4,060			—			252,705
Depreciation, depletion, amortization and accretion	—			301,188			46,178			—			347,366
Impairment	—			12,703			2,940			—			15,643
Gain on derivative contracts	—			(57,753		)	(5,004		)	—			(62,757		)
Loss on sale of assets	—			290,616			107,209			—			397,825
Total expenses(1)	175			1,140,270			173,771			(443		)	1,313,773
Loss from operations(1)	(175		)	(274,634		)	(14,287		)	—			(289,096		)
Equity earnings from subsidiaries	(281,402		)	(8,409		)	—			289,811			—
Interest (expense) income	(147,495		)	426			—			—			(147,069		)
Loss on extinguishment of debt	(82,005		)	—			—			—			(82,005		)
Other income (expense), net	—			1,215			(710		)	—			505
Loss before income taxes(1)	(511,077		)	(281,402		)	(14,997		)	289,811			(517,665		)
Income tax expense	4,727			—			210			—			4,937
Net loss(1)	(515,804		)	(281,402		)	(15,207		)	289,811			(522,602		)
Less: net loss attributable to noncontrolling interest	—			—			—			(6,798		)	(6,798		)
Net loss attributable to SandRidge Energy, Inc.(1)	$	(515,804	)	$	(281,402	)	$	(15,207	)	$	296,609		$	(515,804	)

____________________

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

Condensed Consolidating Statements of Cash Flows

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2014
Net cash provided by (used in) operating activities	$	263,677		$	(153,823	)	$	126,424		$	(5,486	)	$	230,792
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(656,699		)	—			—			(656,699		)
Proceeds from sale of assets	—			707,799			—			—			707,799
Other	—			(104,286		)	1,061			86,672			(16,553		)
Net cash (used in) provided by  investing activities	—			(53,186		)	1,061			86,672			34,547
Cash flows from financing activities
Distributions to unitholders	—			—			(127,985		)	24,843			(103,142		)
Intercompany (advances) borrowings, net	(125,185		)	124,804			381			—			—
Other	(33,364		)	82,441			(1,150		)	(106,029		)	(58,102		)
Net cash (used in) provided by  financing activities	(158,549		)	207,245			(128,754		)	(81,186		)	(161,244		)
Net increase (decrease) in cash and cash equivalents	105,128			236			(1,269		)	—			104,095
Cash and cash equivalents at beginning of year	805,505			1,013			8,145			—			814,663
Cash and cash equivalents at end of period	$	910,633		$	1,249		$	6,876		$	—		$	918,758

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2013
Net cash (used in) provided by operating activities	$	(162,836	)	$	420,672		$	120,672		$	6,175		$	384,683
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(828,585		)	—			—			(828,585		)
Proceeds from sale of assets	—			2,563,791			95			—			2,563,886
Other	—			31,015			37			(39,654		)	(8,602		)
Net cash provided by investing activities	—			1,766,221			132			(39,654		)	1,726,699
Cash flows from financing activities
Repayments of borrowings	(1,115,500		)	—			—			—			(1,115,500		)
Distribution to unitholders	—			—			(144,810		)	46,094			(98,716		)
Premium on debt redemption	(61,997		)	—			—			—			(61,997		)
Intercompany borrowings (advances), net	2,181,850			(2,192,164		)	10,314			—			—
Other	(56,322		)	5,728			12,615			(12,615		)	(50,594		)
Net cash provided by (used in) financing activities	948,031			(2,186,436		)	(121,881		)	33,479			(1,326,807		)
Net increase (decrease) in cash and cash equivalents	785,195			457			(1,077		)	—			784,575
Cash and cash equivalents at beginning of year	300,228			922			8,616			—			309,766
Cash and cash equivalents at end of period	$	1,085,423		$	1,379		$	7,539		$	—		$	1,094,341

XML

Divestitures - Additional Information (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended	0 Months Ended
	Jun. 30, 2013	Feb. 25, 2014	Jun. 30, 2014
Permian Properties
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of oil and natural gas properties	$ 2,600.0
Gain (loss) on sale of oil and gas property	(399.1)
Permian Properties | Non-controlling Interest
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of oil and gas property	(71.7)
Gulf Properties
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of oil and natural gas properties		703.5
Contingent consideration, liability		9.4	12.0
Restricted deposits		28.0
Consideration receivable, current			14.0
Gulf Properties | Asset Retirement Obligations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset retirement obligations assumed		$ 366.0

XML

Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2014

Condensed Consolidating Financial Statements Disclosure [Abstract]

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

Condensed Consolidating Balance Sheets

	June 30, 2014 (Restated)
	Parent		Guarantors(1)		Non-Guarantors		Eliminations			Consolidated(1)
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	910,633	$	1,249	$	6,876	$	—		$	918,758
Accounts receivable, net	—		315,004		18,296		—			333,300
Intercompany accounts receivable	278,510		1,347,065		57,708		(1,683,283		)	—
Derivative contracts	—		2,179		115		(2,179		)	115
Prepaid expenses	—		12,345		—		(8		)	12,337
Other current assets	1,388		23,703		15		—			25,106
Total current assets	1,190,531		1,701,545		83,010		(1,685,470		)	1,289,616
Property, plant and equipment, net	—		4,435,593		1,106,226		—			5,541,819
Investment in subsidiaries	6,010,522		18,366		—		(6,028,888		)	—
Derivative contracts	—		3,473		1,568		(2,215		)	2,826
Other assets	64,364		20,077		19		(5,902		)	78,558
Total assets	$	7,265,417	$	6,179,054	$	1,190,823	$	(7,722,475	)	$	6,912,819
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	201,911	$	442,744	$	3,787	$	(8	)	$	648,434
Intercompany accounts payable	1,341,438		303,834		38,011		(1,683,283		)	—
Derivative contracts	—		55,875		3,032		(2,179		)	56,728
Other current liabilities	7,144		12,027		—		—			19,171
Total current liabilities	1,550,493		814,480		44,830		(1,685,470		)	724,333
Investment in subsidiaries	873,956		146,639		—		(1,020,595		)	—
Long-term debt	3,201,067		—		—		(5,902		)	3,195,165
Derivative contracts	—		7,101		647		(2,215		)	5,533
Asset retirement obligations	—		55,210		—		—			55,210
Other long-term obligations	94		19,058		—		—			19,152
Total liabilities	5,625,610		1,042,488		45,477		(2,714,182		)	3,999,393
Equity
SandRidge Energy, Inc. stockholders’ equity	1,639,807		5,136,566		1,145,346		(6,281,912		)	1,639,807
Noncontrolling interest	—		—		—		1,273,619			1,273,619
Total equity	1,639,807		5,136,566		1,145,346		(5,008,293		)	2,913,426
Total liabilities and equity	$	7,265,417	$	6,179,054	$	1,190,823	$	(7,722,475	)	$	6,912,819

(1) Guarantor and Consolidated accounts payable and accrued expenses have been restated to reflect accrual of the CO₂ shortfall penalty. See Note 2.

	December 31, 2013 (Revised)
	Parent(1)		Guarantors(2)		Non-Guarantors		Eliminations(1)(2)			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	805,505	$	1,013	$	8,145	$	—		$	814,663
Accounts receivable, net	—		326,345		22,873		—			349,218
Intercompany accounts receivable	153,325		982,524		70,107		(1,205,956		)	—
Derivative contracts	—		7,796		14,748		(9,765		)	12,779
Prepaid expenses	—		39,165		88		—			39,253
Other current assets	1,376		24,410		124		—			25,910
Total current assets	960,206		1,381,253		116,085		(1,215,721		)	1,241,823
Property, plant and equipment, net	—		5,125,543		1,182,132		—			6,307,675
Investment in subsidiaries	6,009,603		49,418		—		(6,059,021		)	—
Derivative contracts	—		12,650		9,585		(8,109		)	14,126
Other assets	61,923		65,123		27		(5,902		)	121,171
Total assets	$	7,031,732	$	6,633,987	$	1,307,829	$	(7,288,753	)	$	7,684,795
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses	$	207,572	$	601,074	$	3,842	$	—		$	812,488
Intercompany accounts payable	967,365		181,573		57,018		(1,205,956		)	—
Derivative contracts	—		44,032		—		(9,765		)	34,267
Asset retirement obligations	—		87,063		—		—			87,063
Total current liabilities	1,174,937		913,742		60,860		(1,215,721		)	933,818
Investment in subsidiaries	828,794		152,266		—		(981,060		)	—
Long-term debt	3,200,809		—		—		(5,902		)	3,194,907
Derivative contracts	—		28,673		—		(8,109		)	20,564
Asset retirement obligations	—		337,054		—		—			337,054
Other long-term obligations	1,382		21,443		—		—			22,825
Total liabilities	5,205,922		1,453,178		60,860		(2,210,792		)	4,509,168
Equity
SandRidge Energy, Inc. stockholders’ equity	1,825,810		5,180,809		1,246,969		(6,427,778		)	1,825,810
Noncontrolling interest	—		—		—		1,349,817			1,349,817
Total equity	1,825,810		5,180,809		1,246,969		(5,077,961		)	3,175,627
Total liabilities and equity	$	7,031,732	$	6,633,987	$	1,307,829	$	(7,288,753	)	$	7,684,795

____________________

(1) Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $828.8 million, as liabilities and to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to Guarantor full cost pool (property, plant and equipment, net) and a reduction to Parent equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

(2) Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $152.3 million, as liabilities. Property, plant and equipment, net has been revised to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to the Guarantor full cost pool (property, plant and equipment, net) and a reduction to Guarantor equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

Unaudited Condensed Consolidating Statements of Operations of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors

Condensed Consolidating Statements of Operations

	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Three Months Ended June 30, 2014 (Restated)
Total revenues	$	—		$	314,521		$	60,205	$	(12	)	$	374,714
Expenses
Direct operating expenses(1)	—			93,597			4,931		(12		)	98,516
General and administrative	71			30,481			1,363		—			31,915
Depreciation, depletion, amortization and accretion	—			99,237			14,506		—			113,743
Impairment	—			3,133			—		—			3,133
Loss on derivative contracts	—			67,509			17,783		—			85,292
Loss on sale of assets	—			36			—		—			36
Total expenses(1)	71			293,993			38,583		(12		)	332,635
(Loss) income from operations(1)	(71		)	20,528			21,622		—			42,079
Equity earnings from subsidiaries	27,725			5,863			—		(33,588		)	—
Interest expense	(61,859		)	(4		)	—		—			(61,863		)
Other income, net	—			1,338			—		—			1,338
(Loss) income before income taxes(1)	(34,205		)	27,725			21,622		(33,588		)	(18,446		)
Income tax (benefit) expense	(1,311		)	—			117		—			(1,194		)
Net (loss) income(1)	(32,894		)	27,725			21,505		(33,588		)	(17,252		)
Less: net income attributable to noncontrolling interest	—			—			—		15,642			15,642
Net (loss) income attributable to SandRidge Energy, Inc.(1)	$	(32,894	)	$	27,725		$	21,505	$	(49,230	)	$	(32,894	)

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Three Months Ended June 30, 2013 (Restated)
Total revenues	$	—		$	425,319		$	81,956		$	5,712		$	512,987
Expenses
Direct operating expenses(1)	—			173,539			6,156			5,280			184,975
General and administrative	88			171,652			1,089			432			173,261
Depreciation, depletion, amortization and accretion	—			141,299			23,426			—			164,725
Impairment	—			12,703			2,940			—			15,643
Gain on derivative contracts	—			(88,653		)	(15,001		)	—			(103,654		)
Gain on sale of assets	—			(340		)	(9		)	—			(349		)
Total expenses(1)	88			410,200			18,601			5,712			434,601
(Loss) income from operations(1)	(88		)	15,119			63,355			—			78,386
Equity earnings from subsidiaries	33,378			18,233			—			(51,611		)	—
Interest (expense) income	(61,392		)	233			—			—			(61,159		)
Other (expense) income, net	—			(207		)	101			—			(106		)
(Loss) income before income taxes(1)	(28,102		)	33,378			63,456			(51,611		)	17,121
Income tax expense	406			—			102			—			508
Net (loss) income(1)	(28,508		)	33,378			63,354			(51,611		)	16,613
Less: net income attributable to noncontrolling interest	—			—			—			45,121			45,121
Net (loss) income attributable to SandRidge Energy, Inc.(1)	$	(28,508	)	$	33,378		$	63,354		$	(96,732	)	$	(28,508	)

____________________

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2014 (Restated)
Total revenues	$	—		$	693,570		$	124,299	$	(99	)	$	817,770
Expenses
Direct operating expenses(1)	—			232,018			9,741		(99		)	241,660
General and administrative	220			67,426			2,807		—			70,453
Depreciation, depletion, amortization and accretion	—			219,814			30,382		—			250,196
Impairment	—			125,599			42,313		—			167,912
Loss on derivative contracts	—			101,611			26,172		—			127,783
Loss on sale of assets	—			17			—		—			17
Total expenses(1)	220			746,485			111,415		(99		)	858,021
(Loss) income from operations(1)	(220		)	(52,915		)	12,884		—			(40,251		)
Equity earnings from subsidiaries	(46,259		)	3,086			—		43,173			—
Interest (expense) income	(124,045		)	139			—		—			(123,906		)
Other income, net	—			3,431			1		—			3,432
(Loss) income before income taxes(1)	(170,524		)	(46,259		)	12,885		43,173			(160,725		)
Income tax (benefit) expense	(1,294		)	—			227		—			(1,067		)
Net (loss) income(1)	(169,230		)	(46,259		)	12,658		43,173			(159,658		)
Less: net income attributable to noncontrolling interest	—			—			—		9,572			9,572
Net (loss) income attributable to SandRidge Energy, Inc.(1)	$	(169,230	)	$	(46,259	)	$	12,658	$	33,601		$	(169,230	)

____________________

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2013 (Restated)
Total revenues	$	—		$	865,636		$	159,484		$	(443	)	$	1,024,677
Expenses
Direct operating expenses(1)	—			345,046			18,388			(443		)	362,991
General and administrative	175			248,470			4,060			—			252,705
Depreciation, depletion, amortization and accretion	—			301,188			46,178			—			347,366
Impairment	—			12,703			2,940			—			15,643
Gain on derivative contracts	—			(57,753		)	(5,004		)	—			(62,757		)
Loss on sale of assets	—			290,616			107,209			—			397,825
Total expenses(1)	175			1,140,270			173,771			(443		)	1,313,773
Loss from operations(1)	(175		)	(274,634		)	(14,287		)	—			(289,096		)
Equity earnings from subsidiaries	(281,402		)	(8,409		)	—			289,811			—
Interest (expense) income	(147,495		)	426			—			—			(147,069		)
Loss on extinguishment of debt	(82,005		)	—			—			—			(82,005		)
Other income (expense), net	—			1,215			(710		)	—			505
Loss before income taxes(1)	(511,077		)	(281,402		)	(14,997		)	289,811			(517,665		)
Income tax expense	4,727			—			210			—			4,937
Net loss(1)	(515,804		)	(281,402		)	(15,207		)	289,811			(522,602		)
Less: net loss attributable to noncontrolling interest	—			—			—			(6,798		)	(6,798		)
Net loss attributable to SandRidge Energy, Inc.(1)	$	(515,804	)	$	(281,402	)	$	(15,207	)	$	296,609		$	(515,804	)

____________________

(1) Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO₂ delivery shortfall penalty. See Note 2.

Unaudited Condensed Consolidating Statements of Cash Flows of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors

Condensed Consolidating Statements of Cash Flows

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2014
Net cash provided by (used in) operating activities	$	263,677		$	(153,823	)	$	126,424		$	(5,486	)	$	230,792
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(656,699		)	—			—			(656,699		)
Proceeds from sale of assets	—			707,799			—			—			707,799
Other	—			(104,286		)	1,061			86,672			(16,553		)
Net cash (used in) provided by  investing activities	—			(53,186		)	1,061			86,672			34,547
Cash flows from financing activities
Distributions to unitholders	—			—			(127,985		)	24,843			(103,142		)
Intercompany (advances) borrowings, net	(125,185		)	124,804			381			—			—
Other	(33,364		)	82,441			(1,150		)	(106,029		)	(58,102		)
Net cash (used in) provided by  financing activities	(158,549		)	207,245			(128,754		)	(81,186		)	(161,244		)
Net increase (decrease) in cash and cash equivalents	105,128			236			(1,269		)	—			104,095
Cash and cash equivalents at beginning of year	805,505			1,013			8,145			—			814,663
Cash and cash equivalents at end of period	$	910,633		$	1,249		$	6,876		$	—		$	918,758

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In thousands)
Six Months Ended June 30, 2013
Net cash (used in) provided by operating activities	$	(162,836	)	$	420,672		$	120,672		$	6,175		$	384,683
Cash flows from investing activities
Capital expenditures for property, plant, and equipment	—			(828,585		)	—			—			(828,585		)
Proceeds from sale of assets	—			2,563,791			95			—			2,563,886
Other	—			31,015			37			(39,654		)	(8,602		)
Net cash provided by investing activities	—			1,766,221			132			(39,654		)	1,726,699
Cash flows from financing activities
Repayments of borrowings	(1,115,500		)	—			—			—			(1,115,500		)
Distribution to unitholders	—			—			(144,810		)	46,094			(98,716		)
Premium on debt redemption	(61,997		)	—			—			—			(61,997		)
Intercompany borrowings (advances), net	2,181,850			(2,192,164		)	10,314			—			—
Other	(56,322		)	5,728			12,615			(12,615		)	(50,594		)
Net cash provided by (used in) financing activities	948,031			(2,186,436		)	(121,881		)	33,479			(1,326,807		)
Net increase (decrease) in cash and cash equivalents	785,195			457			(1,077		)	—			784,575
Cash and cash equivalents at beginning of year	300,228			922			8,616			—			309,766
Cash and cash equivalents at end of period	$	1,085,423		$	1,379		$	7,539		$	—		$	1,094,341

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Long-Term Debt - Additional Information (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Apr. 30, 2014	Mar. 31, 2013
Debt Instrument
Loss on extinguishment of debt	$ 0	$ 0	$ 0	$ 82,005,000
Senior credit facility
Debt Instrument
Long-term debt, debt to EBITDA ratio, total funded debt determination	10,000,000.0		10,000,000.0
Debt maturity date			March 2017
Line of credit facility, financial covenants compliance	As of and during the three and six-month periods ended June 30, 2014, the Company was in compliance with all applicable financial covenants under the senior credit facility.		As of and during the three and six-month periods ended June 30, 2014, the Company was in compliance with all applicable financial covenants under the senior credit facility.
Line of credit facility, guarantee			The obligations under the senior credit facility are guaranteed by certain Company subsidiaries and are secured by first priority liens on all shares of capital stock of certain of the Company’s material present and future subsidiaries; certain intercompany debt of the Company; and substantially all of the Company’s assets, including proved oil, natural gas and NGL reserves representing at least 80.0% of the discounted present value (as defined in the senior credit facility) of proved oil, natural gas and NGL reserves considered by the lenders in determining the borrowing base for the senior credit facility.
Line of credit facility, interest rate determination reference			(a) LIBOR plus an applicable margin between 1.75% and 2.75% per annum or (b) the “base rate,” which is the highest of (i) the federal funds rate plus 0.5%, (ii) the prime rate published by Bank of America or (iii) the Eurodollar rate (as defined in the senior credit facility) plus 1.00% per annum, plus, in each case under scenario (b), an applicable margin between 0.75% and 1.75% per annum. Interest is payable quarterly for base rate loans and at the applicable maturity date for LIBOR loans, except that if the interest period for a LIBOR loan is six months, interest is paid at the end of each three-month period.
Line of credit facility, minimum collateral amount of proved oil and gas reserves representing the discounted present value of reserves used in borrowing base determination	80.00%		80.00%
Line of credit facility, unused capacity, commitment fee percentage	0.50%
Line of credit facility maximum borrowings capacity					775,000,000.0
Line of credit facility, amount outstanding	0		0
Line of credity facility, letters of credit outstanding	10,400,000		10,400,000
Senior credit facility | Minimum
Debt Instrument
Current assets to current liabilities, ratio minimum	1.0		1.0
Senior credit facility | Maximum
Debt Instrument
Long-term debt, debt to EBITDA, ratio maximum	4.5		4.5
Senior credit facility | Addition to LIBOR per annum | LIBOR | Minimum
Debt Instrument
Line of credit facility, basis spread on variable rate			1.75%
Senior credit facility | Addition to LIBOR per annum | LIBOR | Maximum
Debt Instrument
Line of credit facility, basis spread on variable rate			2.75%
Senior credit facility | Addition to federal funds rate
Debt Instrument
Line of credit facility, basis spread on variable rate			0.50%
Senior credit facility | Addition to Eurodollar rate per annum | Euro Dollar Rate
Debt Instrument
Line of credit facility, basis spread on variable rate			1.00%
Senior credit facility | Applicable margin to base rate per annum | Minimum
Debt Instrument
Line of credit facility, basis spread on variable rate			0.75%
Senior credit facility | Applicable margin to base rate per annum | Maximum
Debt Instrument
Line of credit facility, basis spread on variable rate			1.75%
Senior Notes Outstanding
Debt Instrument
Debt issuance cost	70,200,000		70,200,000
9.875% Senior Notes due 2016
Debt Instrument
Debt tender offer, aggregate principal amount tendered						365,500,000
Long-term debt, fixed interest rate						9.875%
Debt instrument redemption price per principal amount						1,061.34
8.0% Senior Notes due 2018
Debt Instrument
Debt tender offer, aggregate principal amount tendered						750,000,000
Long-term debt, fixed interest rate						8.00%
Debt instrument redemption price per principal amount						1,052.77
9.875% Senior Notes and 8.0% Senior Notes
Debt Instrument
Loss on extinguishment of debt				$ 82,000,000
Senior Notes
Debt Instrument
Debt instrument, restrictive covenants			Each of the indentures governing the Company’s Senior Fixed Rate Notes contains covenants that restrict the Company’s ability to take a variety of actions, including limitations on the incurrence of indebtedness, payment of dividends, investments, asset sales, certain asset purchases, transactions with related parties and consolidations or mergers.
Debt instrument, covenant compliance	As of and during the three and six-month periods ended June 30, 2014, the Company was in compliance with all of the covenants contained in the indentures governing its Senior Fixed Rate Notes.		As of and during the three and six-month periods ended June 30, 2014, the Company was in compliance with all of the covenants contained in the indentures governing its outstanding Senior Fixed Rate Notes.

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Condensed Consolidating Financial Information - Unaudited Condensed Consolidating Statements of Operations of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Condensed Financial Statements, Captions
Total revenues	$ 374,714		$ 512,987		$ 817,770		$ 1,024,677
Expenses
Direct operating expenses	98,516	[1]	184,975	[1]	241,660	[1]	362,991	[1]
General and administrative	31,915		173,261		70,453		252,705
Depreciation, depletion, amortization and accretion	113,743		164,725		250,196		347,366
Impairment	3,133		15,643		167,912		15,643
Loss (gain) on derivative contracts	85,292		(103,654)		127,783		(62,757)
Loss (gain) on sale of assets	36		(349)		17		397,825
Total expenses	332,635	[1]	434,601	[1]	858,021	[1]	1,313,773	[1]
(Loss) income from operations	42,079	[1],[2]	78,386	[1],[2]	(40,251)	[1],[2]	(289,096)	[1],[2]
Equity earnings from subsidiaries	0		0		0		0
Interest expense	(61,863)		(61,159)		(123,906)		(147,069)
Loss on extinguishment of debt	0		0		0		(82,005)
Other income (expense), net	1,338		(106)		3,432		505
(Loss) income before income taxes	(18,446)	[1],[2]	17,121	[1],[2]	(160,725)	[1],[2]	(517,665)	[1],[2]
Income tax expense	(1,194)		508		(1,067)		4,937
Net (loss) income	(17,252)	[1]	16,613	[1]	(159,658)	[1]	(522,602)	[1]
Less: net income (loss) attributable to noncontrolling interest	15,642		45,121		9,572		(6,798)
Net (loss) income attributable to SandRidge Energy, Inc.	(32,894)	[1]	(28,508)	[1]	(169,230)	[1]	(515,804)	[1]
Parent
Condensed Financial Statements, Captions
Total revenues	0		0		0		0
Expenses
Direct operating expenses	0		0		0		0
General and administrative	71		88		220		175
Depreciation, depletion, amortization and accretion	0		0		0		0
Impairment	0		0		0		0
Loss (gain) on derivative contracts	0		0		0		0
Loss (gain) on sale of assets	0		0		0		0
Total expenses	71		88		220		175
(Loss) income from operations	(71)		(88)		(220)		(175)
Equity earnings from subsidiaries	27,725		33,378		(46,259)		(281,402)
Interest expense	(61,859)		(61,392)		(124,045)		(147,495)
Loss on extinguishment of debt							(82,005)
Other income (expense), net	0		0		0		0
(Loss) income before income taxes	(34,205)		(28,102)		(170,524)		(511,077)
Income tax expense	(1,311)		406		(1,294)		4,727
Net (loss) income	(32,894)		(28,508)		(169,230)		(515,804)
Less: net income (loss) attributable to noncontrolling interest	0		0		0		0
Net (loss) income attributable to SandRidge Energy, Inc.	(32,894)		(28,508)		(169,230)		(515,804)
Guarantors
Condensed Financial Statements, Captions
Total revenues	314,521		425,319		693,570		865,636
Expenses
Direct operating expenses	93,597	[1]	173,539	[1]	232,018	[1]	345,046	[1]
General and administrative	30,481		171,652		67,426		248,470
Depreciation, depletion, amortization and accretion	99,237		141,299		219,814		301,188
Impairment	3,133		12,703		125,599		12,703
Loss (gain) on derivative contracts	67,509		(88,653)		101,611		(57,753)
Loss (gain) on sale of assets	36		(340)		17		290,616
Total expenses	293,993	[1]	410,200	[1]	746,485	[1]	1,140,270	[1]
(Loss) income from operations	20,528	[1]	15,119	[1]	(52,915)	[1]	(274,634)	[1]
Equity earnings from subsidiaries	5,863		18,233		3,086		(8,409)
Interest expense	(4)		233		139		426
Loss on extinguishment of debt							0
Other income (expense), net	1,338		(207)		3,431		1,215
(Loss) income before income taxes	27,725	[1]	33,378	[1]	(46,259)	[1]	(281,402)	[1]
Income tax expense	0		0		0		0
Net (loss) income	27,725	[1]	33,378	[1]	(46,259)	[1]	(281,402)	[1]
Less: net income (loss) attributable to noncontrolling interest	0		0		0		0
Net (loss) income attributable to SandRidge Energy, Inc.	27,725	[1]	33,378	[1]	(46,259)	[1]	(281,402)	[1]
Non-Guarantors
Condensed Financial Statements, Captions
Total revenues	60,205		81,956		124,299		159,484
Expenses
Direct operating expenses	4,931		6,156		9,741		18,388
General and administrative	1,363		1,089		2,807		4,060
Depreciation, depletion, amortization and accretion	14,506		23,426		30,382		46,178
Impairment	0		2,940		42,313		2,940
Loss (gain) on derivative contracts	17,783		(15,001)		26,172		(5,004)
Loss (gain) on sale of assets	0		(9)		0		107,209
Total expenses	38,583		18,601		111,415		173,771
(Loss) income from operations	21,622		63,355		12,884		(14,287)
Equity earnings from subsidiaries	0		0		0		0
Interest expense	0		0		0		0
Loss on extinguishment of debt							0
Other income (expense), net	0		101		1		(710)
(Loss) income before income taxes	21,622		63,456		12,885		(14,997)
Income tax expense	117		102		227		210
Net (loss) income	21,505		63,354		12,658		(15,207)
Less: net income (loss) attributable to noncontrolling interest	0		0		0		0
Net (loss) income attributable to SandRidge Energy, Inc.	21,505		63,354		12,658		(15,207)
Eliminations
Condensed Financial Statements, Captions
Total revenues	(12)		5,712		(99)		(443)
Expenses
Direct operating expenses	(12)		5,280		(99)		(443)
General and administrative	0		432		0		0
Depreciation, depletion, amortization and accretion	0		0		0		0
Impairment	0		0		0		0
Loss (gain) on derivative contracts	0		0		0		0
Loss (gain) on sale of assets	0		0		0		0
Total expenses	(12)		5,712		(99)		(443)
(Loss) income from operations	0		0		0		0
Equity earnings from subsidiaries	(33,588)		(51,611)		43,173		289,811
Interest expense	0		0		0		0
Loss on extinguishment of debt							0
Other income (expense), net	0		0		0		0
(Loss) income before income taxes	(33,588)		(51,611)		43,173		289,811
Income tax expense	0		0		0		0
Net (loss) income	(33,588)		(51,611)		43,173		289,811
Less: net income (loss) attributable to noncontrolling interest	15,642		45,121		9,572		(6,798)
Net (loss) income attributable to SandRidge Energy, Inc.	$ (49,230)		$ (96,732)		$ 33,601		$ 296,609

[1] Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2.

[2] Loss from operations and loss before income taxes have been restated for the Exploration and Production segment and the Consolidated Total to reflect the impact of the accrual of the CO2 delivery shortfall penalty attributable to the three and six-month periods ended June 30, 2014 and 2013. See Note 2.

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Equity (Tables)

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Preferred Stock Dividends

Paid and unpaid dividends included in the calculation of loss applicable to the Company’s common stockholders and the Company’s basic loss per share calculation for the three and six-month periods ended June 30, 2014 and 2013 as presented in the accompanying unaudited condensed consolidated statements of operations, are included in the tables below (in thousands):

	Three Months Ended June 30,
	2014						2013
	Dividends Paid		Dividends Unpaid		Total		Dividends Paid		Dividends Unpaid		Total
8.5% Convertible perpetual preferred stock	$	—	$	5,631	$	5,631	$	—	$	5,631	$	5,631
6.0% Convertible perpetual preferred stock	—		3,000		3,000		—		3,000		3,000
7.0% Convertible perpetual preferred stock	2,625		2,625		5,250		2,625		2,625		5,250
Total	$	2,625	$	11,256	$	13,881	$	2,625	$	11,256	$	13,881
	Six Months Ended June 30,
	2014						2013
	Dividends Paid		Dividends Unpaid		Total		Dividends Paid		Dividends Unpaid		Total
8.5% Convertible perpetual preferred stock	$	2,816	$	8,447	$	11,263	$	2,816	$	8,447	$	11,263
6.0% Convertible perpetual preferred stock	500		5,500		6,000		500		5,500		6,000
7.0% Convertible perpetual preferred stock	7,875		2,625		10,500		7,875		2,625		10,500
Total	$	11,191	$	16,572	$	27,763	$	11,191	$	16,572	$	27,763

Treasury Stock

The following table shows the number of shares withheld for taxes and the associated value of those shares for the six-month periods ended June 30, 2014 and 2013. These shares were accounted for as treasury stock when withheld and then immediately retired.

	Six Months Ended June 30,
	2014		2013
	(In thousands)
Number of shares withheld for taxes	637		5,107
Value of shares withheld for taxes	$	3,865	$	27,196

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Variable Interest Entities - Royalty Trusts - Outstanding Units (Parenthetical) (Details) (Royalty Trusts)	6 Months Ended
	Jun. 30, 2014
Royalty Trusts
Variable Interest Entity
Percentage of royalty interest conveyed to company at trust termination	50.00%
Percentage of royalty interest sold at trust termination	50.00%

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Fair Value Measurements - Additional Information (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2013
Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis
Level 3 outstanding, value		$ 0	$ (211)	$ (512)
Commodity derivative contracts | Fair Value Measurements Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Level 3 outstanding, value	0
Gulf Properties
Fair Value, Assets and Liabilities Measured on Recurring Basis
Fair value inputs, probability of default	3.71%
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	13,681				68,568
Fair Value, Measurements, Recurring | Fair Value Measurements Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	10,740				41,663
Fair Value, Measurements, Recurring | Fair Value Measurements Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0				0
Fair Value, Measurements, Recurring | Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	2,941				26,905
Fair Value, Measurements, Recurring | Commodity derivative contracts | Fair Value Measurements Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0				0
Fair Value, Measurements, Recurring | Commodity derivative contracts | Fair Value Measurements Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0				0
Fair Value, Measurements, Recurring | Restricted deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value					27,955
Fair Value, Measurements, Recurring | Restricted deposits | Fair Value Measurements Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0				27,955
Fair Value, Measurements, Recurring | Restricted deposits | Fair Value Measurements Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value					$ 0

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Fair Value Measurements - Significant Unobservable Inputs (Details) (Gulf Properties, Fair Value Measurements Level 3, USD $) In Thousands, unless otherwise specified	Jun. 30, 2014
Gulf Properties | Fair Value Measurements Level 3
Significant Unobservable Inputs
Estimated future payments for plugging and abandonment	$ 426,661

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Restatement of Previously Issued Financial Statements - Additional Information (Details) (Treating Agreement, USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Treating Agreement
Contract agreement, term			30 years
Shortfall amount accrued	$ 8.5	$ 8.1	$ 16.8	$ 16.0	$ 32.7

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Divestitures

6 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

Divestitures

Sale of Permian Properties

On February 26, 2013, the Company sold all of its oil and natural gas properties in the Permian Basin in west Texas, excluding the assets attributable to the SandRidge Permian Trust’s (the “Permian Trust”) area of mutual interest, (the “Permian Properties”) for $2.6 billion. This transaction resulted in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company recorded a $399.1 million loss on the sale for the six-month period ended June 30, 2013. The loss is included in loss (gain) on sale of assets in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2013. The loss was calculated based on a comparison of proceeds received and the asset retirement obligations attributable to the Permian Properties that were assumed by the buyer to the sum of (i) an allocation of the historical net book value of the Company’s proved oil and natural gas properties attributable to the Permian Properties, (ii) the historical cost of unproved acreage sold and (iii) costs incurred by the Company to sell these properties. The allocated net book value attributable to the Permian Properties was calculated based on the relative fair value of the Permian Properties and the remaining proved oil and natural gas properties retained by the Company as of the date of sale. A portion of the loss, totaling $71.7 million, was allocated to noncontrolling interests and is reflected in net income (loss) attributable to noncontrolling interest in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2013.

The following table presents revenues and direct operating expenses of the Permian Properties included in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2013 (in thousands):

	Six Months Ended June 30, 2013(1)
Revenues	$	68,027
Direct operating expenses	$	17,453

__________________

(1) Includes revenues and direct operating expenses through February 26, 2013, the date of sale.

Sale of Gulf of Mexico and Gulf Coast Properties

On February 25, 2014, the Company sold subsidiaries that owned the Company’s Gulf of Mexico and Gulf Coast oil and natural gas properties (the “Gulf Properties”) for approximately $703.5 million, net of working capital adjustments and post-closing adjustments, and the buyer’s assumption of approximately $366.0 million of related asset retirement obligations to Fieldwood Energy LLC (“Fieldwood”). This transaction did not result in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company recorded the proceeds as a reduction of its full cost pool with no gain or loss on the sale. See Note 16 for discussion of Fieldwood’s related party affiliation with the Company.

In accordance with the terms of the sale, the Company agreed to guarantee on behalf of Fieldwood certain plugging and abandonment obligations associated with the Gulf Properties for a period of up to one year from the date of closing. The Company recorded a liability equal to the fair value of these guarantees, or $9.4 million, at the time the transaction closed. As of June 30, 2014, the fair value of the guarantees was approximately $12.0 million. See Note 5 for additional discussion of the determination of the guarantees’ fair value. The guarantees do not include a limit on the potential future payments for which the Company could be obligated; however, Fieldwood has agreed to indemnify the Company for any costs it may incur as a result of the guarantees and to use its best efforts to pay any amounts sought from the Company by the Bureau of Ocean Energy Management that may arise prior to the expiration of the guarantees. Additionally, Fieldwood will maintain, for a period of up to one year from the closing date, restricted deposits totaling approximately $28.0 million held in escrow for plugging and abandonment obligations associated with the Gulf Properties. Upon expiration of the guarantees, the Company will receive payment from Fieldwood for half of such restricted deposits, or approximately $14.0 million. A receivable for this amount is included in other current assets in the accompanying unaudited condensed consolidated balance sheet at June 30, 2014.

The following table presents revenues and expenses, including direct operating expenses, depletion, accretion of asset retirement obligations and general and administrative expenses, for the Gulf Properties included in the accompanying unaudited condensed consolidated statements of operations for the three-month period ended June 30, 2013 and the six-month periods ended June 30, 2014 and 2013 (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2013		2014(1)		2013
Revenues	$	170,219	$	90,920	$	345,275
Expenses	$	122,222	$	63,674	$	251,392

____________________

(1) Includes revenues and expenses through February 25, 2014, the date of the sale.

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (Fair Value, Measurements, Recurring, USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	$ 13,681		$ 68,568
Liabilities measured at fair value	74,289		54,831
Restricted deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value			27,955
Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	2,941		26,905
Liabilities measured at fair value	62,261		54,831
Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	10,740		13,708
Guarantees
Fair Value, Assets and Liabilities Measured on Recurring Basis
Liabilities measured at fair value	12,028
Fair Value Measurements Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	10,740		41,663
Liabilities measured at fair value	0		0
Fair Value Measurements Level 1 | Restricted deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0		27,955
Fair Value Measurements Level 1 | Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0		0
Liabilities measured at fair value	0		0
Fair Value Measurements Level 1 | Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	10,740		13,708
Fair Value Measurements Level 1 | Guarantees
Fair Value, Assets and Liabilities Measured on Recurring Basis
Liabilities measured at fair value	0
Fair Value Measurements Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	6,490		50,274
Liabilities measured at fair value	65,810		78,200
Fair Value Measurements Level 2 | Restricted deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value			0
Fair Value Measurements Level 2 | Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	6,490		50,274
Liabilities measured at fair value	65,810		78,200
Fair Value Measurements Level 2 | Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0		0
Fair Value Measurements Level 2 | Guarantees
Fair Value, Assets and Liabilities Measured on Recurring Basis
Liabilities measured at fair value	0
Fair Value Measurements Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0		0
Liabilities measured at fair value	12,028		0
Fair Value Measurements Level 3 | Restricted deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value			0
Fair Value Measurements Level 3 | Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0		0
Liabilities measured at fair value	0		0
Fair Value Measurements Level 3 | Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0		0
Fair Value Measurements Level 3 | Guarantees
Fair Value, Assets and Liabilities Measured on Recurring Basis
Liabilities measured at fair value	12,028
Netting
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	(3,549)	[1]	(23,369)	[1]
Liabilities measured at fair value	(3,549)	[1]	(23,369)	[1]
Netting | Restricted deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value			0	[1]
Netting | Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	(3,549)	[1]	(23,369)	[1]
Liabilities measured at fair value	(3,549)	[1]	(23,369)	[1]
Netting | Investments
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets measured at fair value	0	[1]	0	[1]
Netting | Guarantees
Fair Value, Assets and Liabilities Measured on Recurring Basis
Liabilities measured at fair value	$ 0	[1]

[1] Represents the impact of netting assets and liabilities for counterparties with which the right of offset exists.

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Subsequent Events (Tables) (Royalty Trusts)

6 Months Ended

Jun. 30, 2014

Royalty Trusts

Subsequent Event

Royalty Trust Distributions

The Royalty Trusts declared and paid quarterly distributions during the three and six-month periods ended June 30, 2014 and 2013 as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014(1)		2013		2014(2)		2013
Total distributions	$	59,672	$	68,449	$	127,985	$	144,810
Distributions to third-party unitholders	$	50,024	$	47,459	$	103,142	$	98,716

____________________

(1) Subordination thresholds were not met for the Mississippian Trust I’s and Mississippian Trust II’s distributions, resulting in reduced distributions to the Company on its subordinated units for this period.

(2) Subordination thresholds were not met for the Mississippian Trust I’s distributions, resulting in reduced distributions to the Company on its subordinated units for this period.

The following distributions are expected to be paid on or before August 29, 2014 to holders of record as of the close of business on August 14, 2014 (in thousands):

Royalty Trust	Total Distribution		Amount to be Distributed to Third-Party Unitholders
Mississippian Trust I	$	7,512	$	7,323
Permian Trust	30,555		24,885
Mississippian Trust II	18,125		15,090
Total	$	56,192	$	47,298

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Divestitures (Tables)

6 Months Ended

Jun. 30, 2014

Permian Properties

Disposal, Revenue and Expense Information

Disposal, Revenue and Expense Information

The following table presents revenues and direct operating expenses of the Permian Properties included in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2013 (in thousands):

	Six Months Ended June 30, 2013(1)
Revenues	$	68,027
Direct operating expenses	$	17,453

__________________

(1) Includes revenues and direct operating expenses through February 26, 2013, the date of sale.

Gulf Properties

Disposal, Revenue and Expense Information

Disposal, Revenue and Expense Information

The following table presents revenues and expenses, including direct operating expenses, depletion, accretion of asset retirement obligations and general and administrative expenses, for the Gulf Properties included in the accompanying unaudited condensed consolidated statements of operations for the three-month period ended June 30, 2013 and the six-month periods ended June 30, 2014 and 2013 (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2013		2014(1)		2013
Revenues	$	170,219	$	90,920	$	345,275
Expenses	$	122,222	$	63,674	$	251,392

____________________

(1) Includes revenues and expenses through February 25, 2014, the date of the sale.

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Restatement of Previously Issued Financial Statements (Tables)

6 Months Ended

Jun. 30, 2014

Accounting Changes and Error Corrections [Abstract]

Schedule of impact of accounting errors on previously reported balances

The following tables present the impact of these adjustments on the Company’s previously reported unaudited condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 (in thousands):

	June 30, 2014
	As Reported			As Restated
Current assets
Costs in excess of billings and contract loss	$	3,435		$	—
Other current assets	$	21,671		$	25,106
Current liabilities
Accounts payable and accrued expenses	631,658			648,434
Total current liabilities	707,557			724,333
Total liabilities	3,982,617			3,999,393
Equity
Accumulated deficit	(3,640,679		)	(3,657,455		)
Total SandRidge Energy, Inc. stockholders’ equity	1,656,583			1,639,807
Total equity	2,930,202			2,913,426

	December 31, 2013
	As Reported		As Revised
Current assets
Costs in excess of billings and contract loss	$	4,079	$	—
Other current assets	$	21,831	$	25,910

The following table presents the impact of the error corrections on the Company’s previously reported unaudited condensed consolidated statements of cash flows for the six-month periods ended June 30, 2014 and 2013 (in thousands):

	Six Months Ended June 30, 2014						Six Months Ended June 30, 2013
	As Reported			As Restated			As Reported			As Restated
Net loss	$	(142,882	)	$	(159,658	)	$	(506,574	)	$	(522,602	)
Changes in operating assets and liabilities	$	(136,510	)	$	(119,734	)	$	32,605		$	48,633

The following table presents the impact of the error corrections on the Company’s previously reported unaudited condensed consolidated statements of operations for the three and six-month periods ended June 30, 2014 and 2013 (in thousands):

	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	As Reported			As Restated			As Reported			As Restated
Production	$	58,498		$	66,953		$	157,033		$	173,809
Total expenses	$	324,180		$	332,635		$	841,245		$	858,021
Income (loss) from operations	$	50,534		$	42,079		$	(23,475	)	$	(40,251	)
Loss before income taxes	$	(9,991	)	$	(18,446	)	$	(143,949	)	$	(160,725	)
Net loss	$	(8,797	)	$	(17,252	)	$	(142,882	)	$	(159,658	)
Net loss attributable to SandRidge Energy, Inc.	$	(24,439	)	$	(32,894	)	$	(152,454	)	$	(169,230	)
Loss applicable to SandRidge Energy, Inc. common stockholders	$	(38,320	)	$	(46,775	)	$	(180,217	)	$	(196,993	)
Loss per share
Basic	$	(0.08	)	$	(0.10	)	$	(0.37	)	$	(0.41	)
Diluted	$	(0.08	)	$	(0.10	)	$	(0.37	)	$	(0.41	)

	Three Months Ended June 30, 2013						Six Months Ended June 30, 2013
	As Reported			As Restated			As Reported			As Restated
Production	$	116,811		$	124,883		$	249,312		$	265,340
Total expenses	$	426,529		$	434,601		$	1,297,745		$	1,313,773
Income (loss) from operations	$	86,458		$	78,386		$	(273,068	)	$	(289,096	)
Income (loss) before income taxes	$	25,193		$	17,121		$	(501,637	)	$	(517,665	)
Net income (loss)	$	24,685		$	16,613		$	(506,574	)	$	(522,602	)
Net loss attributable to SandRidge Energy, Inc.	$	(20,436	)	$	(28,508	)	$	(499,776	)	$	(515,804	)
Loss applicable to SandRidge Energy, Inc. common stockholders	$	(34,317	)	$	(42,389	)	$	(527,539	)	$	(543,567	)
Loss per share
Basic	$	(0.07	)	$	(0.09	)	$	(1.10	)	$	(1.14	)
Diluted	$	(0.07	)	$	(0.09	)	$	(1.10	)	$	(1.14	)

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Subsequent Events - Additional Information (Details) (Royalty Trust Distributions, Royalty Trusts)	0 Months Ended
	Jul. 31, 2014
Royalty Trust Distributions | Royalty Trusts
Subsequent Event
Subsequent event, description	On July 31, 2014, the Royalty Trusts announced quarterly distributions for the three-month period ended June 30, 2014. The following distributions are expected to be paid on or before August 29, 2014 to holders of record as of the close of business on August 14, 2014.
Expected distribution date	August 29, 2014
Distributions record date	August 14, 2014

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Variable Interest Entities - Royalty Trusts - Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Variable Interest Entity
Cumulative full cost ceiling limitation impairment	$ 3,700.0	$ 3,500.0
Royalty Trusts
Variable Interest Entity
Reserves for expenses	3.0	3.0
Cumulative full cost ceiling limitation impairment	$ 42.3	$ 0

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Restatement of Previously Issued Financial Statements - Condensed Consolidated Statements of Operations (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Condensed Consolidated Statements of Operations
Production	$ 66,953		$ 124,883		$ 173,809		$ 265,340
Total expenses	332,635	[1]	434,601	[1]	858,021	[1]	1,313,773	[1]
Income (loss) from operations	42,079	[1],[2]	78,386	[1],[2]	(40,251)	[1],[2]	(289,096)	[1],[2]
Loss before income taxes	(18,446)	[1],[2]	17,121	[1],[2]	(160,725)	[1],[2]	(517,665)	[1],[2]
Net loss	(17,252)	[1]	16,613	[1]	(159,658)	[1]	(522,602)	[1]
Net (loss) income attributable to SandRidge Energy, Inc.	(32,894)	[1]	(28,508)	[1]	(169,230)	[1]	(515,804)	[1]
Loss applicable to SandRidge Energy, Inc. common stockholders	(46,775)		(42,389)		(196,993)		(543,567)
Loss per share
Basic (in dollars per share)	$ (0.10)		$ (0.09)		$ (0.41)		$ (1.14)
Diluted (in dollars per share)	$ (0.10)		$ (0.09)		$ (0.41)		$ (1.14)
As Reported
Condensed Consolidated Statements of Operations
Production	58,498		116,811		157,033		249,312
Total expenses	324,180		426,529		841,245		1,297,745
Income (loss) from operations	50,534		86,458		(23,475)		(273,068)
Loss before income taxes	(9,991)		25,193		(143,949)		(501,637)
Net loss	(8,797)		24,685		(142,882)		(506,574)
Net (loss) income attributable to SandRidge Energy, Inc.	(24,439)		(20,436)		(152,454)		(499,776)
Loss applicable to SandRidge Energy, Inc. common stockholders	$ (38,320)		$ (34,317)		$ (180,217)		$ (527,539)
Loss per share
Basic (in dollars per share)	$ (0.08)		$ (0.07)		$ (0.37)		$ (1.10)
Diluted (in dollars per share)	$ (0.08)		$ (0.07)		$ (0.37)		$ (1.10)

[1] Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2.

[2] Loss from operations and loss before income taxes have been restated for the Exploration and Production segment and the Consolidated Total to reflect the impact of the accrual of the CO2 delivery shortfall penalty attributable to the three and six-month periods ended June 30, 2014 and 2013. See Note 2.

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Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2014

Variable Interest Entity

Open Oil and Natural Gas Commodity Derivative Contracts

At June 30, 2014, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	2,054	$	99.08
January 2015 - December 2015	5,588	$	92.44

Natural Gas Price Swaps

	Notional (MMcf)	Weighted Average Fixed Price
July 2014 - December 2014	24,840	$	4.28
January 2015 - December 2015	15,400	$	4.50

Oil Collars - Three-way

	Notional (MBbls)	Sold Put	Purchased Put	Sold Call
July 2014 - December 2014	4,140	$70.00	$90.20	$100.00
January 2015 - December 2015	3,656	$74.83	$90.35	$103.50

Natural Gas Collars

	Notional (MMcf)	Collar Range
July 2014 - December 2014	472	$4.00	—	$7.78
January 2015 - December 2015	1,010	$4.00	—	$8.55

Royalty Trusts

Variable Interest Entity

Royalty Trust Units

The following table summarizes information about each Royalty Trust:

	Mississippian Trust I	Permian Trust	Mississippian Trust II
Total outstanding common units	21,000,000	39,375,000	37,293,750
Total outstanding subordinated units	7,000,000	13,125,000	12,431,250
Liquidation date(1)	12/31/2030	3/31/2031	12/31/2031

____________________

(1) At the time each Royalty Trust terminates, 50% of the royalty interests conveyed to the Royalty Trust will automatically revert to the Company, and the remaining 50% will be sold with the proceeds distributed to the Royalty Trust unitholders.

Royalty Trusts Distributions

The Royalty Trusts declared and paid quarterly distributions during the three and six-month periods ended June 30, 2014 and 2013 as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014(1)		2013		2014(2)		2013
Total distributions	$	59,672	$	68,449	$	127,985	$	144,810
Distributions to third-party unitholders	$	50,024	$	47,459	$	103,142	$	98,716

____________________

(1) Subordination thresholds were not met for the Mississippian Trust I’s and Mississippian Trust II’s distributions, resulting in reduced distributions to the Company on its subordinated units for this period.

(2) Subordination thresholds were not met for the Mississippian Trust I’s distributions, resulting in reduced distributions to the Company on its subordinated units for this period.

The following distributions are expected to be paid on or before August 29, 2014 to holders of record as of the close of business on August 14, 2014 (in thousands):

Royalty Trust	Total Distribution		Amount to be Distributed to Third-Party Unitholders
Mississippian Trust I	$	7,512	$	7,323
Permian Trust	30,555		24,885
Mississippian Trust II	18,125		15,090
Total	$	56,192	$	47,298

Open Oil and Natural Gas Commodity Derivative Contracts

The tables below present the open oil and natural gas commodity derivative contracts at June 30, 2014 underlying the derivatives agreements. The combined volume in the tables below reflects the total volume of the Royalty Trusts’ open oil and natural gas commodity derivative contracts.

Oil Price SwapsUnderlying the Royalty Trust Derivatives Agreements

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	823	$	101.01
January 2015 - December 2015	904	$	97.78

Natural Gas Collars Underlying the Royalty Trust Derivatives Agreements

	Notional (MMcf)	Collar Range
July 2014 - December 2014	472	$	4.00	—	$	7.78
January 2015 - December 2015	1,010	$	4.00	—	$	8.55

Oil Price Swaps Underlying the Derivatives Agreements and Novated to the Royalty Trusts

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	473	$	100.76
January 2015 - March 2015	141	$	100.90

Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets

The Royalty Trusts’ assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheets at June 30, 2014 and December 31, 2013 consisted of the following (in thousands):

	June 30, 2014			December 31, 2013
Cash and cash equivalents(1)	$	6,722		$	7,912
Accounts receivable, net	18,887			22,540
Derivative contracts	—			4,983
Total current assets	25,609			35,435
Investment in royalty interests(2)	1,325,942			1,325,942
Less: accumulated depletion and impairment(3)	(258,186		)	(186,095		)
	1,067,756			1,139,847
Derivative contracts	—			1,476
Total assets	$	1,093,365		$	1,176,758
Accounts payable and accrued expenses	$	2,318		$	3,393
Derivative contracts, current	968			—
Total liabilities	$	3,286		$	3,393

____________________

(1) Includes $3.0 million held by the trustee at June 30, 2014 and December 31, 2013 as reserves for future general and administrative expenses.

(2) Investment in royalty interests is included in oil and natural gas properties in the accompanying unaudited condensed consolidated balance sheets.

(3) Accumulated depletion and impairment at June 30, 2014 includes full cost ceiling limitation impairment allocated to the Royalty Trusts of $42.3 million. There was no full cost ceiling limitation impairment allocated to the Royalty Trusts as of December 31, 2013.

Royalty Trusts Ownership Interest

The Company’s beneficial interests in the Royalty Trusts at June 30, 2014 and December 31, 2013 were as follows:

	June 30, 2014		December 31, 2013
Mississippian Trust I	26.9	%	26.9	%
Permian Trust	25.0	%	28.5	%
Mississippian Trust II	37.6	%	37.6	%

Grey Ranch Plant, L.P

Variable Interest Entity

Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets

GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheet at December 31, 2013 consisted of the following (in thousands):

	December 31, 2013
Cash and cash equivalents	$	132
Accounts receivable, net	16
Prepaid expenses	32
Other current assets	109
Total current assets	289
Other property, plant and equipment, net	1,163
Total assets	$	1,452
Accounts payable and accrued expenses	$	129
Total liabilities	$	129

Pinon Gathering Company LLC

Variable Interest Entity

Schedule Of Amounts Due To/From Variable Interest Entities

Amounts due from and due to PGC as of June 30, 2014 and December 31, 2013 included in the accompanying unaudited condensed consolidated balance sheets are as follows (in thousands):

	June 30, 2014		December 31, 2013
Accounts receivable due from PGC	$	1,672	$	741
Accounts payable due to PGC	$	4,486	$	3,634

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy (in thousands):

June 30, 2014

	Fair Value Measurements						Netting(1)			Assets/Liabilities at Fair Value
	Level 1		Level 2		Level 3
Assets
Commodity derivative contracts	$	—	$	6,490	$	—	$	(3,549	)	$	2,941
Investments	10,740		—		—		—			10,740
	$	10,740	$	6,490	$	—	$	(3,549	)	$	13,681
Liabilities
Guarantees	$	—	$	—	$	12,028	$	—		$	12,028
Commodity derivative contracts	—		65,810		—		(3,549		)	62,261
	$	—	$	65,810	$	12,028	$	(3,549	)	$	74,289

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 for counterparties with which the right of offset exists.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for guarantees during the three and six-month periods ended June 30, 2014 (in thousands):

Level 3 Fair Value Measurements - Guarantees	Three Months Ended June 30, 2014		Six Months Ended June 30, 2014
Beginning balance	$	9,480	$	—
Issuances(1)	—		9,446
Loss on guarantees	2,548		2,582
Ending balance	$	12,028	$	12,028

____________________

(1) Represents the fair value of the guarantees of certain plugging and abandonment obligations on behalf of Fieldwood as of February 25, 2014, the closing date for the sale of the Gulf Properties.

Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings

The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for commodity derivative contracts during the three and six-month periods ended June 30, 2013 (in thousands):

Level 3 Fair Value Measurements - Commodity Derivative Contracts	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
Beginning balance	$	(211	)	$	(512	)
Gain (loss) on derivative contracts	740			(133		)
Settlements (received) paid	(529		)	645
Ending balance	$	—		$	—

Senior Notes Carrying Amount and Fair Value Table

The estimated fair values and carrying values of the Company’s senior notes at June 30, 2014 and December 31, 2013 were as follows (in thousands):

	June 30, 2014				December 31, 2013
	Fair Value		Carrying Value		Fair Value		Carrying Value
8.75% Senior Notes due 2020(1)	$	483,750	$	445,062	$	486,000	$	444,736
7.5% Senior Notes due 2021(2)	1,273,465		1,178,708		1,230,813		1,178,922
8.125% Senior Notes due 2022	825,000		750,000		795,000		750,000
7.5% Senior Notes due 2023(3)	893,063		821,395		837,375		821,249

____________________

(1) Carrying value is net of $4,938 and $5,264 discount at June 30, 2014 and December 31, 2013, respectively.

(2) Carrying value includes a premium, applicable to notes issued in August 2012, of $3,708 and $3,922 at June 30, 2014 and December 31, 2013, respectively.

(3) Carrying value is net of $3,605 and $3,751 discount at June 30, 2014 and December 31, 2013, respectively.

Fair Value Measurements Level 3

Fair Value Disclosures

Significant Unobservable Inputs

The significant unobservable input used in the fair value measurement of the Company’s financial guarantee liability at June 30, 2014 is included in the table below (in thousands).

Unobservable Input
Estimated future payments for plugging and abandonment	$	426,661

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Restatement of Previously Issued Financial Statements

6 Months Ended

Jun. 30, 2014

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

Restatement of Previously Issued Financial Statements

Overview

The Company has determined there were errors in the timing of its accrual of annual CO₂ delivery shortfall penalties incurred under its 30-year treating agreement with Occidental Petroleum Corporation (“Occidental”) and has determined that these errors were material to previously issued unaudited condensed consolidated financial statements for the three and six-month periods ended June 30, 2014 and 2013. For the three and six-month periods ended June 30, 2014 and 2013, the correction of these errors resulted in the accrual of (i) $8.5 million and $16.8 million in CO₂ under delivery shortfall penalties, for the three and six-month periods ended June 30, 2014, respectively, and (ii) $8.1 million and $16.0 million in CO₂ delivery shortfall penalties, for the three and six-month periods ended June 30, 2013, respectively, which were previously included in the total 2013 annual delivery shortfall penalty of $32.7 million recorded in the fourth quarter of 2013. As a result, these statements have been presented on a restated and amended basis in this Form 10-Q/A. The correction of these errors in the financial statements for the three and six-month periods ended June 30, 2013 did not have any impact to the statement of operations or statement of cash flows for the year ended December 31, 2013 or to the balance sheet as of December 31, 2013.

Additionally, the Company has made certain revisions to its condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 in order to account for activities associated with construction of the Century Plant in Pecos County, Texas (the “Century Plant”) under the full cost method of accounting. The Company has determined that these revisions are not material to the originally issued financial statements; however, in conjunction with the Company’s need to restate its financial statements as a result of the error noted above, the Company has determined that it would be appropriate to make such revisions. The condensed consolidated balance sheet as of December 31, 2013 presented herein is consistent with the revised consolidated balance sheet included in the Company’s 2013 Form 10-K/A.

Financial Statement Presentation

In addition to the restatement of the Company’s unaudited condensed consolidated financial statements, certain information within the following notes to the unaudited condensed consolidated financial statements has been restated and/or revised to reflect the corrections presented in the tables below or to add disclosure language, as appropriate.

• Note 6. Property, Plant and Equipment

• Note 12. Commitments and Contingencies

• Note 15. Earnings (Loss) per Share

• Note 18. Business Segment Information

• Note 19. Condensed Consolidating Financial Information

Condensed Consolidated Statements of Operations. The following table presents the impact of the error corrections on the Company’s previously reported unaudited condensed consolidated statements of operations for the three and six-month periods ended June 30, 2014 and 2013 (in thousands):

	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	As Reported			As Restated			As Reported			As Restated
Production	$	58,498		$	66,953		$	157,033		$	173,809
Total expenses	$	324,180		$	332,635		$	841,245		$	858,021
Income (loss) from operations	$	50,534		$	42,079		$	(23,475	)	$	(40,251	)
Loss before income taxes	$	(9,991	)	$	(18,446	)	$	(143,949	)	$	(160,725	)
Net loss	$	(8,797	)	$	(17,252	)	$	(142,882	)	$	(159,658	)
Net loss attributable to SandRidge Energy, Inc.	$	(24,439	)	$	(32,894	)	$	(152,454	)	$	(169,230	)
Loss applicable to SandRidge Energy, Inc. common stockholders	$	(38,320	)	$	(46,775	)	$	(180,217	)	$	(196,993	)
Loss per share
Basic	$	(0.08	)	$	(0.10	)	$	(0.37	)	$	(0.41	)
Diluted	$	(0.08	)	$	(0.10	)	$	(0.37	)	$	(0.41	)

	Three Months Ended June 30, 2013						Six Months Ended June 30, 2013
	As Reported			As Restated			As Reported			As Restated
Production	$	116,811		$	124,883		$	249,312		$	265,340
Total expenses	$	426,529		$	434,601		$	1,297,745		$	1,313,773
Income (loss) from operations	$	86,458		$	78,386		$	(273,068	)	$	(289,096	)
Income (loss) before income taxes	$	25,193		$	17,121		$	(501,637	)	$	(517,665	)
Net income (loss)	$	24,685		$	16,613		$	(506,574	)	$	(522,602	)
Net loss attributable to SandRidge Energy, Inc.	$	(20,436	)	$	(28,508	)	$	(499,776	)	$	(515,804	)
Loss applicable to SandRidge Energy, Inc. common stockholders	$	(34,317	)	$	(42,389	)	$	(527,539	)	$	(543,567	)
Loss per share
Basic	$	(0.07	)	$	(0.09	)	$	(1.10	)	$	(1.14	)
Diluted	$	(0.07	)	$	(0.09	)	$	(1.10	)	$	(1.14	)

Condensed Consolidated Statements of Cash Flows. The following table presents the impact of the error corrections on the Company’s previously reported unaudited condensed consolidated statements of cash flows for the six-month periods ended June 30, 2014 and 2013 (in thousands):

	Six Months Ended June 30, 2014						Six Months Ended June 30, 2013
	As Reported			As Restated			As Reported			As Restated
Net loss	$	(142,882	)	$	(159,658	)	$	(506,574	)	$	(522,602	)
Changes in operating assets and liabilities	$	(136,510	)	$	(119,734	)	$	32,605		$	48,633

Condensed Consolidated Balance Sheets. The Company has determined that unreimbursed costs incurred by the Company on behalf of Occidental during construction of the Century Plant that were previously presented as costs in excess of billings and contract loss should have been presented under the full cost method of accounting as an account receivable. Accordingly, the Company has restated and/or revised the unaudited condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 to reflect this presentation. This revision did not have any impact to total current assets as of June 30, 2014 or December 31, 2013. Additionally, the unaudited condensed consolidated balance sheet as of June 30, 2014 includes the accrual of a $16.8 million CO₂ under delivery shortfall penalty for the six-month period ended June 30, 2014 as described above.

The following tables present the impact of these adjustments on the Company’s previously reported unaudited condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 (in thousands):

	June 30, 2014
	As Reported			As Restated
Current assets
Costs in excess of billings and contract loss	$	3,435		$	—
Other current assets	$	21,671		$	25,106
Current liabilities
Accounts payable and accrued expenses	631,658			648,434
Total current liabilities	707,557			724,333
Total liabilities	3,982,617			3,999,393
Equity
Accumulated deficit	(3,640,679		)	(3,657,455		)
Total SandRidge Energy, Inc. stockholders’ equity	1,656,583			1,639,807
Total equity	2,930,202			2,913,426

	December 31, 2013
	As Reported		As Revised
Current assets
Costs in excess of billings and contract loss	$	4,079	$	—
Other current assets	$	21,831	$	25,910

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Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment consists of the following (in thousands):

	June 30, 2014			December 31, 2013
Oil and natural gas properties
Proved(1)	$	10,807,088		$	10,972,816
Unproved	309,043			531,606
Total oil and natural gas properties	11,116,131			11,504,422
Less accumulated depreciation, depletion and impairment	(6,138,833		)	(5,762,969		)
Net oil and natural gas properties capitalized costs	4,977,298			5,741,453
Land	18,270			18,423
Non-oil and natural gas equipment(2)	614,198			600,603
Buildings and structures(3)	244,076			233,405
Total	876,544			852,431
Less accumulated depreciation and amortization	(312,023		)	(286,209		)
Other property, plant and equipment, net	564,521			566,222
Total property, plant and equipment, net	$	5,541,819		$	6,307,675

____________________

(1) Includes cumulative capitalized interest of approximately $29.0 million and $23.4 million at June 30, 2014 and December 31, 2013, respectively.

(2) Includes cumulative capitalized interest of approximately $4.3 million at both June 30, 2014 and December 31, 2013.

(3) Includes cumulative capitalized interest of approximately $14.4 million and $12.0 million at June 30, 2014 and December 31, 2013, respectively.

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Equity - Preferred Stock Dividends (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Class of Stock
Dividends Paid	$ 2,625	$ 2,625	$ 11,191	$ 11,191
Dividends Unpaid	11,256	11,256	16,572	16,572
Total	13,881	13,881	27,763	27,763
8.5% Convertible perpetual preferred stock
Class of Stock
Dividends Paid	0	0	2,816	2,816
Dividends Unpaid	5,631	5,631	8,447	8,447
Total	5,631	5,631	11,263	11,263
6.0% Convertible perpetual preferred stock
Class of Stock
Dividends Paid	0	0	500	500
Dividends Unpaid	3,000	3,000	5,500	5,500
Total	3,000	3,000	6,000	6,000
7.0% Convertible perpetual preferred stock
Class of Stock
Dividends Paid	2,625	2,625	7,875	7,875
Dividends Unpaid	2,625	2,625	2,625	2,625
Total	$ 5,250	$ 5,250	$ 10,500	$ 10,500

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Performance Units (Tables)

6 Months Ended

Jun. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Performance Units Fair Value Assumptions

The following table presents a summary of the fair value of the performance units and the related assumptions for all outstanding units as of June 30, 2014.

Expected price volatility range	22.8	%	-	54.6%
Weighted-average risk-free interest rate				0.5%
Weighted-average fair value per unit				$98.74

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Variable Interest Entities - Royalty Trusts - Distributions (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013	Jun. 30, 2014		Jun. 30, 2013
Variable Interest Entity
Distributions to third-party unitholders				$ 103,142		$ 98,716
Royalty Trusts
Variable Interest Entity
Total distributions	59,672	[1]	68,449	127,985	[2]	144,810
Distributions to third-party unitholders	$ 50,024	[1]	$ 47,459	$ 103,142	[2]	$ 98,716

[1] Subordination thresholds were not met for the Mississippian Trust I’s and Mississippian Trust II’s distributions, resulting in reduced distributions to the Company on its subordinated units for this period.

[2] Subordination thresholds were not met for the Mississippian Trust I’s distributions, resulting in reduced distributions to the Company on its subordinated units for this period.

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Construction Contracts - Additional Information (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Construction Contracts [Line Items]
Construction contract revenue	$ 0	$ 23,253,000	$ 0	$ 23,253,000
Construction contract expense	0	23,253,000	0	23,253,000
Transmission Expansion Projects
Construction Contracts [Line Items]
Contract price		23,300,000		23,300,000
Construction contract revenue		23,300,000		23,300,000
Construction contract expense		$ 23,300,000		$ 23,300,000

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Current assets
Cash and cash equivalents	$ 918,758		$ 814,663
Accounts receivable, net	333,300		349,218
Derivative contracts	115		12,779
Prepaid expenses	12,337		39,253
Other current assets	25,106		25,910
Total current assets	1,289,616		1,241,823
Oil and natural gas properties, using full cost method of accounting
Proved	10,807,088	[1]	10,972,816	[1]
Unproved	309,043		531,606
Less: accumulated depreciation, depletion and impairment	(6,138,833)		(5,762,969)
Net oil and natural gas properties capitalized costs	4,977,298		5,741,453
Other property, plant and equipment, net	564,521		566,222
Derivative contracts	2,826		14,126
Other assets	78,558		121,171
Total assets	6,912,819		7,684,795
Current liabilities
Accounts payable and accrued expenses	648,434	[2]	812,488
Derivative contracts	56,728		34,267
Asset retirement obligations	0		87,063
Other current liabilities	19,171		0
Total current liabilities	724,333		933,818
Long-term debt	3,195,165		3,194,907
Derivative contracts	5,533		20,564
Asset retirement obligations	55,210		337,054
Other long-term obligations	19,152		22,825
Total liabilities	3,999,393		4,509,168
Commitments and contingencies (Note 12)
Preferred stock, $0.001 par value, 50,000 shares authorized
Common stock, $0.001 par value, 800,000 shares authorized; 495,687 issued and 494,546 outstanding at June 30, 2014 and 491,609 issued and 490,290 outstanding at December 31, 2013	485		483
Additional paid-in capital	5,307,814		5,298,301
Additional paid-in capital—stockholder receivable	(3,750)		(3,750)
Treasury stock, at cost	(7,295)		(8,770)
Accumulated deficit	(3,657,455)		(3,460,462)
Total SandRidge Energy, Inc. stockholders’ equity	1,639,807		1,825,810
Noncontrolling interest	1,273,619		1,349,817
Total equity	2,913,426		3,175,627
Total liabilities and equity	6,912,819		7,684,795
8.5% Convertible perpetual preferred stock; 2,650 shares issued and outstanding at June 30, 2014 and December 31, 2013; aggregate liquidation preference of $265,000
Preferred stock, $0.001 par value, 50,000 shares authorized
Preferred stock	3		3
6.0% Convertible perpetual preferred stock; 2,000 shares issued and outstanding at June 30, 2014 and December 31, 2013; aggregate liquidation preference of $200,000
Preferred stock, $0.001 par value, 50,000 shares authorized
Preferred stock	2		2
7.0% Convertible perpetual preferred stock; 3,000 shares issued and outstanding at June 30, 2014 and December 31, 2013; aggregate liquidation preference of $300,000
Preferred stock, $0.001 par value, 50,000 shares authorized
Preferred stock	$ 3		$ 3

[1] Includes cumulative capitalized interest of approximately $29.0 million and $23.4 million at June 30, 2014 and December 31, 2013, respectively.

[2] Guarantor and Consolidated accounts payable and accrued expenses have been restated to reflect accrual of the CO2 shortfall penalty. See Note 2.

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Restatement of Previously Issued Financial Statements - Condensed Consolidated Statements of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Statement of Cash Flows [Abstract]
Net loss	$ (17,252)	[1]	$ 16,613	[1]	$ (159,658)	[1]	$ (522,602)	[1]
Changes in operating assets and liabilities					(119,734)		48,633
As Reported
Statement of Cash Flows [Abstract]
Net loss	(8,797)		24,685		(142,882)		(506,574)
Changes in operating assets and liabilities					$ (136,510)		$ 32,605

[1] Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2.

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Condensed Consolidating Financial Information - Unaudited Condensed Consolidating Balance Sheets of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Parenthetical) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions
Investment in subsidiaries	$ 0	$ 0
Negative investments in subsidiaries	0	0
Total equity	2,913,426	3,175,627
Property, plant and equipment, net	5,541,819	6,307,675
Parent
Condensed Financial Statements, Captions
Investment in subsidiaries	6,010,522	6,009,603	[1]
Negative investments in subsidiaries	873,956	828,794	[1]
Total equity	1,639,807	1,825,810	[1]
Property, plant and equipment, net	0	0
Parent | Condensed Balance Sheet Revision
Condensed Financial Statements, Captions
Investment in subsidiaries		(828,800)
Negative investments in subsidiaries		828,800
Total equity		(55,600)
Guarantors
Condensed Financial Statements, Captions
Investment in subsidiaries	18,366	49,418	[2]
Negative investments in subsidiaries	146,639	152,266	[2]
Total equity	5,136,566	5,180,809	[2]
Property, plant and equipment, net	4,435,593	5,125,543	[2]
Guarantors | Condensed Balance Sheet Revision
Condensed Financial Statements, Captions
Investment in subsidiaries		(152,300)
Negative investments in subsidiaries		152,300
Total equity		(55,600)
Property, plant and equipment, net		$ (55,600)

[1] Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $828.8 million, as liabilities and to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to Guarantor full cost pool (property, plant and equipment, net) and a reduction to Parent equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

[2] Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $152.3 million, as liabilities. Property, plant and equipment, net has been revised to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to the Guarantor full cost pool (property, plant and equipment, net) and a reduction to Guarantor equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (159,658)	[1]	$ (522,602)	[1]
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation, depletion and amortization	243,385		327,787
Accretion of asset retirement obligations	6,811		19,579
Impairment	167,912		15,643
Debt issuance costs amortization	4,703		5,369
Amortization of discount, net of premium, on long-term debt	258		789
Loss on extinguishment of debt	0		82,005
Deferred income tax provision	0		4,015
Loss (gain) on derivative contracts	127,783		(62,757)
Cash paid on settlement of derivative contracts	(52,261)		(6,075)
Loss on sale of assets	17		397,825
Stock-based compensation	11,625		72,415
Other	(49)		2,057
Changes in operating assets and liabilities	(119,734)		48,633
Net cash provided by operating activities	230,792		384,683
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures for property, plant and equipment	(656,699)		(828,585)
Acquisition of assets	(16,553)		(8,602)
Proceeds from sale of assets	707,799		2,563,886
Net cash provided by investing activities	34,547		1,726,699
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowings	0		(1,115,500)
Premium on debt redemption	0		(61,997)
Debt issuance costs	0		(91)
Proceeds from sale of royalty trust units	22,119		0
Noncontrolling interest distributions	(103,142)		(98,716)
Acquisition of ownership interest	(2,730)		0
Stock-based compensation excess tax benefit	2		0
Purchase of treasury stock	(5,602)		(28,468)
Dividends paid — preferred	(27,763)		(27,763)
Cash (paid) received on settlement of financing derivative contracts	(44,128)		5,728
Net cash used in financing activities	(161,244)		(1,326,807)
NET INCREASE IN CASH AND CASH EQUIVALENTS	104,095		784,575
CASH AND CASH EQUIVALENTS, beginning of year	814,663		309,766
CASH AND CASH EQUIVALENTS, end of period	918,758		1,094,341
Supplemental Disclosure of Cash Flow Information
Cash paid for interest, net of amounts capitalized	(120,339)		(156,800)
Cash paid for income taxes	(1,932)		(2,525)
Supplemental Disclosure of Noncash Investing and Financing Activities
Deposit on pending sale	0		(255,000)
Change in accrued capital expenditures	3,989		52,715
Asset retirement costs capitalized	$ 1,944		$ 2,421

[1] Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2.

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Business Segment Information (Parenthetical) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting Information
Full cost ceiling limitation impairment			$ 164,800,000
Impairment	3,133,000	15,643,000	167,912,000	15,643,000
Permian Properties
Segment Reporting Information
Gain (loss) on sale of oil and gas property				(399,100,000)
Exploration and Production
Segment Reporting Information
Full cost ceiling limitation impairment			164,800,000
Exploration and Production | Permian Properties
Segment Reporting Information
Gain (loss) on sale of oil and gas property				(399,100,000)
Drilling and Oil Field Services
Segment Reporting Information
Impairment	$ 3,100,000	$ 10,600,000	$ 3,100,000	$ 10,600,000

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Variable Interest Entities - PGC - Amounts due to/from the Company (Details) (Pinon Gathering Company LLC, USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Pinon Gathering Company LLC
Variable Interest Entity
Accounts receivable due from PGC	$ 1,672	$ 741
Accounts payable due to PGC	$ 4,486	$ 3,634

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Subsequent Events - Royalty Trust Distributions (Details) (Royalty Trust Distributions, USD $) In Thousands, unless otherwise specified	Jul. 31, 2014
Mississippian Trust I
Subsequent Event
Total Distribution	$ 7,512
Amount to be Distributed to Third-Party Unitholders	7,323
Permian Trust
Subsequent Event
Total Distribution	30,555
Amount to be Distributed to Third-Party Unitholders	24,885
Mississippian Trust II
Subsequent Event
Total Distribution	18,125
Amount to be Distributed to Third-Party Unitholders	15,090
Royalty Trusts
Subsequent Event
Total Distribution	56,192
Amount to be Distributed to Third-Party Unitholders	$ 47,298

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Derivatives (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivatives

The following table presents the fair value of the Company’s derivative contracts as of June 30, 2014 and December 31, 2013 on a gross basis without regard to same-counterparty netting (in thousands):

Type of Contract	Balance Sheet Classification	June 30, 2014			December 31, 2013
Derivative assets
Oil price swaps	Derivative contracts-current	$	981		$	15,887
Natural gas price swaps	Derivative contracts-current	2,355			1,598
Oil collars - three way	Derivative contracts-current	—			706
Natural gas collars	Derivative contracts-current	135			177
Oil price swaps	Derivative contracts-noncurrent	1,412			19,376
Natural gas price swaps	Derivative contracts-noncurrent	224			—
Oil collars - three way	Derivative contracts-noncurrent	1,228			12,189
Natural gas collars	Derivative contracts-noncurrent	155			341
Derivative liabilities
Oil price swaps	Derivative contracts-current	(35,033		)	(38,396		)
Natural gas price swaps	Derivative contracts-current	(4,865		)	(1,460		)
Oil collars - three way	Derivative contracts-current	(20,186		)	—
Oil price swaps	Derivative contracts-noncurrent	(4,882		)	(38,344		)
Oil collars - three way	Derivative contracts-noncurrent	(844		)	—
Total net derivative contracts		$	(59,320	)	$	(27,926	)

Offsetting Assets and Liabilities

The following tables summarize (i) the Company's derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative liability positions, the applicable portion of shared collateral under the senior credit facility (for SandRidge's derivative contracts) and under liens granted on royalty interests (for the Permian Trust’s and the Mississippian Trust II’s novated derivative contracts) (in thousands):

June 30, 2014

	Gross Amounts		Gross Amounts Offset			Amounts Net of Offset		Financial Collateral			Net Amount
Assets
Derivative contracts - current	$	3,471	$	(3,356	)	$	115	$	—		$	115
Derivative contracts - noncurrent	3,019		(193		)	2,826		—			2,826
Total	$	6,490	$	(3,549	)	$	2,941	$	—		$	2,941
Liabilities
Derivative contracts - current	$	60,084	$	(3,356	)	$	56,728	$	(56,728	)	$	—
Derivative contracts - noncurrent	5,726		(193		)	5,533		(5,533		)	—
Total	$	65,810	$	(3,549	)	$	62,261	$	(62,261	)	$	—

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 June 30, 2014, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	2,054	$	99.08
January 2015 - December 2015	5,588	$	92.44

Natural Gas Price Swaps

	Notional (MMcf)	Weighted Average Fixed Price
July 2014 - December 2014	24,840	$	4.28
January 2015 - December 2015	15,400	$	4.50

Oil Collars - Three-way

	Notional (MBbls)	Sold Put	Purchased Put	Sold Call
July 2014 - December 2014	4,140	$70.00	$90.20	$100.00
January 2015 - December 2015	3,656	$74.83	$90.35	$103.50

Natural Gas Collars

	Notional (MMcf)	Collar Range
July 2014 - December 2014	472	$4.00	—	$7.78
January 2015 - December 2015	1,010	$4.00	—	$8.55

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Fair Value Measurements - Estimated Fair Value and Carrying Value of Senior Notes (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring Basis
Carrying Value	$ 3,195,165		$ 3,194,907
8.75% Senior Notes due 2020
Fair Value, Assets and Liabilities Measured on Recurring Basis
Carrying Value	445,062	[1]	444,736	[1]
7.5% Senior Notes due 2021
Fair Value, Assets and Liabilities Measured on Recurring Basis
Carrying Value	1,178,708	[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	821,395	[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	483,750	[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	1,273,465	[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	825,000		795,000
Fair Value Measurements Level 2 | 7.5% Senior Notes due 2023
Fair Value, Assets and Liabilities Measured on Recurring Basis
Fair Value	$ 893,063	[3]	$ 837,375	[3]

[1] Carrying value is net of $4,938 and $5,264 discount at June 30, 2014 and December 31, 2013, respectively.

[2] Carrying value includes a premium, applicable to notes issued in August 2012, of $3,708 and $3,922 at June 30, 2014 and December 31, 2013, respectively.

[3] Carrying value is net of $3,605 and $3,751 discount at June 30, 2014 and December 31, 2013, respectively.

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Related Party Transactions

6 Months Ended

Jun. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Former Chairman and CEO Severance. On June 28, 2013, the Company’s then current CEO, Tom Ward, separated employment from the Company. In accordance with the terms of Mr. Ward’s employment agreement, the Company incurred $58.2 million in salary and bonus expense and $36.8 million associated with the accelerated vesting of 6.3 million shares of restricted stock awards during the three and six-month periods ended June 30, 2013. As of June 30, 2014, the remaining amounts due under the terms of his employment agreement include $3.9 million to be paid in monthly installments through December 2016. These amounts are included in other current liabilities and other long-term obligations in the accompanying unaudited condensed consolidated balance sheet. See Note 13 for discussion of the stockholder receivable due from Mr. Ward.

Other Employee Termination Benefits. Certain employees received termination benefits, including severance and accelerated stock vesting, upon separation of service from the Company during the six-month periods ended June 30, 2014 and 2013. For the six-month period ended June 30, 2014 employee termination benefits were $8.9 million primarily as a result of the sale of the Gulf Properties. For the six-month period ended June 30, 2013, employee termination benefits, excluding amounts attributable to the Company’s former chairman and CEO, were $23.1 million primarily as a result of other executives’ separation from employment and the sale of the Permian Properties.

2014 Divestiture. See Note 3 for discussion of the sale of the Gulf Properties to Fieldwood and the Company’s guarantee on behalf of Fieldwood of certain associated plugging and abandonment obligations associated with the Gulf Properties. Fieldwood is a portfolio company of Riverstone Holdings LLC, affiliates of which own a significant number of shares of the Company’s common stock.

Acquisition of Ownership Interest. In March 2014, the Company purchased the additional ownership interest owned by its partner in GRLP and Genpar, which was deemed a related party at the time. See Note 4 for additional discussion.

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Asset Retirement Obligations (Tables)

6 Months Ended

Jun. 30, 2014

Asset Retirement Obligation Disclosure [Abstract]

Reconciliation of Beginning and Ending Aggregate Carrying Amounts of Asset Retirement Obligation

A reconciliation of the beginning and ending aggregate carrying amounts of the asset retirement obligations for the period from December 31, 2013 to June 30, 2014 is as follows (in thousands):

Asset retirement obligations at December 31, 2013	$	424,117
Liability incurred upon acquiring and drilling wells	2,382
Revisions in estimated cash flows	(438		)
Liability settled or disposed in current period(1)	(377,662		)
Accretion	6,811
Asset retirement obligations at June 30, 2014	55,210
Less: current portion	—
Asset retirement obligations, net of current	$	55,210

____________________

(1)     Includes $366.0 million associated with the Gulf Properties sold in February 2014.

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Condensed Consolidating Financial Information - Unaudited Condensed Consolidating Statements of Cash Flows of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Condensed Financial Statements, Captions
Net cash (used in) provided by operating activities	$ 230,792	$ 384,683
Cash flows from investing activities
Capital expenditures for property, plant and equipment	(656,699)	(828,585)
Proceeds from sale of assets	707,799	2,563,886
Other	(16,553)	(8,602)
Net cash provided by investing activities	34,547	1,726,699
Cash flows from financing activities
Repayments of borrowings	0	(1,115,500)
Distribution to unitholders	(103,142)	(98,716)
Premium on debt redemption	0	(61,997)
Intercompany borrowings (advances), net	0	0
Other	(58,102)	(50,594)
Net cash used in financing activities	(161,244)	(1,326,807)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	104,095	784,575
CASH AND CASH EQUIVALENTS, beginning of year	814,663	309,766
CASH AND CASH EQUIVALENTS, end of period	918,758	1,094,341
Parent
Condensed Financial Statements, Captions
Net cash (used in) provided by operating activities	263,677	(162,836)
Cash flows from investing activities
Capital expenditures for property, plant and equipment	0	0
Proceeds from sale of assets	0	0
Other	0	0
Net cash provided by investing activities	0	0
Cash flows from financing activities
Repayments of borrowings		(1,115,500)
Distribution to unitholders	0	0
Premium on debt redemption		(61,997)
Intercompany borrowings (advances), net	(125,185)	2,181,850
Other	(33,364)	(56,322)
Net cash used in financing activities	(158,549)	948,031
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	105,128	785,195
CASH AND CASH EQUIVALENTS, beginning of year	805,505	300,228
CASH AND CASH EQUIVALENTS, end of period	910,633	1,085,423
Guarantors
Condensed Financial Statements, Captions
Net cash (used in) provided by operating activities	(153,823)	420,672
Cash flows from investing activities
Capital expenditures for property, plant and equipment	(656,699)	(828,585)
Proceeds from sale of assets	707,799	2,563,791
Other	(104,286)	31,015
Net cash provided by investing activities	(53,186)	1,766,221
Cash flows from financing activities
Repayments of borrowings		0
Distribution to unitholders	0	0
Premium on debt redemption		0
Intercompany borrowings (advances), net	124,804	(2,192,164)
Other	82,441	5,728
Net cash used in financing activities	207,245	(2,186,436)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	236	457
CASH AND CASH EQUIVALENTS, beginning of year	1,013	922
CASH AND CASH EQUIVALENTS, end of period	1,249	1,379
Non-Guarantors
Condensed Financial Statements, Captions
Net cash (used in) provided by operating activities	126,424	120,672
Cash flows from investing activities
Capital expenditures for property, plant and equipment	0	0
Proceeds from sale of assets	0	95
Other	1,061	37
Net cash provided by investing activities	1,061	132
Cash flows from financing activities
Repayments of borrowings		0
Distribution to unitholders	(127,985)	(144,810)
Premium on debt redemption		0
Intercompany borrowings (advances), net	381	10,314
Other	(1,150)	12,615
Net cash used in financing activities	(128,754)	(121,881)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,269)	(1,077)
CASH AND CASH EQUIVALENTS, beginning of year	8,145	8,616
CASH AND CASH EQUIVALENTS, end of period	6,876	7,539
Eliminations
Condensed Financial Statements, Captions
Net cash (used in) provided by operating activities	(5,486)	6,175
Cash flows from investing activities
Capital expenditures for property, plant and equipment	0	0
Proceeds from sale of assets	0	0
Other	86,672	(39,654)
Net cash provided by investing activities	86,672	(39,654)
Cash flows from financing activities
Repayments of borrowings		0
Distribution to unitholders	24,843	46,094
Premium on debt redemption		0
Intercompany borrowings (advances), net	0	0
Other	(106,029)	(12,615)
Net cash used in financing activities	(81,186)	33,479
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	0	0
CASH AND CASH EQUIVALENTS, beginning of year	0	0
CASH AND CASH EQUIVALENTS, end of period	$ 0	$ 0

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Business Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company has three business segments: exploration and production, drilling and oil field services and midstream services. These segments represent the Company’s three main business units, each offering different products and services. The exploration and production segment is engaged in the exploration and production of oil and natural gas properties and includes the activities of the Royalty Trusts. The drilling and oil field services segment is engaged in the contract drilling of oil and natural gas wells and provides various oil field services. The midstream services segment is engaged in the purchasing, gathering, treating and selling of natural gas and coordinates the delivery of electricity to the Company’s exploration and production operations in the Mid-Continent. The All Other column in the tables below includes items not related to the Company’s reportable segments, including the Company’s corporate operations.

Management evaluates the performance of the Company’s business segments based on income (loss) from operations. Summarized financial information concerning the Company’s segments is shown in the following table (in thousands):

	Exploration and Production(1)			Drilling and Oil Field Services(2)			Midstream Services			All Other			Consolidated Total
Three Months Ended June 30, 2014 (Restated)
Revenues	$	339,906		$	51,891		$	38,420		$	1,105		$	431,322
Inter-segment revenue	—			(33,062		)	(23,546		)	—			(56,608		)
Total revenues	$	339,906		$	18,829		$	14,874		$	1,105		$	374,714
Income (loss) from operations(3)	$	69,782		$	(2,347	)	$	(2,345	)	$	(23,011	)	$	42,079
Interest expense	(4		)	—			—			(61,859		)	(61,863		)
Other (expense) income, net	(49		)	(75		)	—			1,462			1,338
Income (loss) before income taxes(3)	$	69,729		$	(2,422	)	$	(2,345	)	$	(83,408	)	$	(18,446	)
Capital expenditures(4)	$	356,568		$	6,654		$	5,808		$	7,907		$	376,937
Depreciation, depletion, amortization, accretion and impairment	$	98,357		$	10,794		$	2,509		$	5,216		$	116,876
Three Months Ended June 30, 2013 (Restated)
Revenues	$	458,374		$	47,100		$	64,291		$	778		$	570,543
Inter-segment revenue	(81		)	(31,011		)	(26,464		)	—			(57,556		)
Total revenues	$	458,293		$	16,089		$	37,827		$	778		$	512,987
Income (loss) from operations(3)	$	233,594		$	(19,443	)	$	(7,956	)	$	(127,809	)	$	78,386
Interest income (expense)	317			—			(84		)	(61,392		)	(61,159		)
Other (expense) income, net	(330		)	—			135			89			(106		)
Income (loss) before income taxes(3)	$	233,581		$	(19,443	)	$	(7,905	)	$	(189,112	)	$	17,121
Capital expenditures(4)	$	358,582		$	883		$	15,111		$	12,582		$	387,158
Depreciation, depletion, amortization, accretion and impairment	$	148,884		$	19,478		$	4,017		$	7,989		$	180,368
Six Months Ended June 30, 2014 (Restated)
Revenues	$	747,244		$	98,971		$	84,715		$	2,075		$	933,005
Inter-segment revenue	—			(63,039		)	(52,196		)	—			(115,235		)
Total revenues	$	747,244		$	35,932		$	32,519		$	2,075		$	817,770
Income (loss) from operations(3)	$	13,306		$	(5,449	)	$	(3,756	)	$	(44,352	)	$	(40,251	)
Interest income (expense), net	139			—			—			(124,045		)	(123,906		)
Other (expense) income, net	(234		)	(473		)	—			4,139			3,432
Income (loss) before income taxes(3)	$	13,211		$	(5,922	)	$	(3,756	)	$	(164,258	)	$	(160,725	)
Capital expenditures(4)	$	620,809		$	7,275		$	11,766		$	12,860		$	652,710
Depreciation, depletion, amortization, accretion and impairment	$	384,176		$	18,506		$	4,950		$	10,476		$	418,108
At June 30, 2014 (Restated)
Total assets	$	5,288,478		$	142,858		$	193,867		$	1,287,616		$	6,912,819

	Exploration and Production(1)			Drilling and Oil Field Services(2)			Midstream Services			All Other			Consolidated Total
Six Months Ended June 30, 2013 (Restated)
Revenues	$	939,784		$	96,837		$	101,125		$	1,631		$	1,139,377
Inter-segment revenue	(162		)	(63,378		)	(51,160		)	—			(114,700		)
Total revenues	$	939,622		$	33,459		$	49,965		$	1,631		$	1,024,677
Loss from operations(3)	$	(76,070	)	$	(28,408	)	$	(10,415	)	$	(174,203	)	$	(289,096	)
Interest income (expense), net	635			—			(209		)	(147,495		)	(147,069		)
Loss on extinguishment of debt	—			—			—			(82,005		)	(82,005		)
Other income (expense), net	298			—			(664		)	871			505
Loss before income taxes(3)	$	(75,137	)	$	(28,408	)	$	(11,288	)	$	(402,832	)	$	(517,665	)
Capital expenditures(4)	$	716,173		$	1,515		$	30,332		$	27,850		$	775,870
Depreciation, depletion, amortization, accretion and impairment	$	316,397		$	28,292		$	5,705		$	12,615		$	363,009
At December 31, 2013
Total assets	$	6,157,225		$	158,737		$	188,165		$	1,180,668		$	7,684,795

____________________

(1) Income (loss) from operations includes a full cost ceiling limitation impairment of $164.8 million for the six-month period ended June 30, 2014, and a loss on the sale of the Permian Properties of $399.1 million for the six-month period ended June 30, 2013.

(2) Income (loss) from operations includes an impairment of $3.1 million and $10.6 million on certain drilling assets held for sale for the three and six-month periods ended June 30, 2014 and 2013, respectively.

(3) Loss from operations and loss before income taxes have been restated for the Exploration and Production segment and the Consolidated Total to reflect the impact of the accrual of the CO₂ delivery shortfall penalty attributable to the three and six-month periods ended June 30, 2014 and 2013. See Note 2.

(4) On an accrual basis and exclusive of acquisitions.

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Property, Plant and Equipment (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Oil and natural gas properties
Proved(1)	$ 10,807,088	[1]	$ 10,972,816	[1]
Unproved	309,043		531,606
Total oil and natural gas properties	11,116,131		11,504,422
Less: accumulated depreciation, depletion and impairment	(6,138,833)		(5,762,969)
Net oil and natural gas properties capitalized costs	4,977,298		5,741,453
Land	18,270		18,423
Non-oil and natural gas equipment(2)	614,198	[2]	600,603	[2]
Buildings and structures(3)	244,076	[3]	233,405	[3]
Total	876,544		852,431
Less accumulated depreciation and amortization	(312,023)		(286,209)
Other property, plant and equipment, net	564,521		566,222
Total property, plant and equipment, net	$ 5,541,819		$ 6,307,675

[1] Includes cumulative capitalized interest of approximately $29.0 million and $23.4 million at June 30, 2014 and December 31, 2013, respectively.

[2] Includes cumulative capitalized interest of approximately $4.3 million at both June 30, 2014 and December 31, 2013.

[3] Includes cumulative capitalized interest of approximately $14.4 million and $12.0 million at June 30, 2014 and December 31, 2013, respectively.

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Basis of Presentation

6 Months Ended

Jun. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

Nature of Business. SandRidge Energy, Inc. is an oil and natural gas company with a principal focus on exploration and production activities in the Mid-Continent region of the United States. The Company owns and operates additional interests in west Texas. The Company also operates businesses and infrastructure systems that are complementary to its primary exploration and production activities, including gas gathering and processing facilities, marketing operations, a saltwater gathering system, an electrical transmission system and a drilling and related oil field services business.

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned or majority owned subsidiaries and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Noncontrolling interest represents third-party ownership interests in the Company’s subsidiaries and consolidated VIEs and is included as a component of equity in the consolidated balance sheets and consolidated statement of changes in equity. All significant intercompany accounts and transactions have been eliminated in consolidation.

Variable Interest Entities. An entity is referred to as a VIE if it possesses one of the following criteria: (i) it is thinly capitalized, (ii) the residual equity holders do not control the entity, (iii) the equity holders are shielded from the economic losses, (iv) the equity holders do not participate fully in the entity’s residual economics, or (v) the entity was established with non-substantive voting interests. The Company consolidates a VIE when it has determined it is the primary beneficiary, which requires significant judgment. The primary beneficiary of a VIE is that variable interest holder possessing a controlling financial interest through (i) its power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) its obligation to absorb losses or its right to receive benefits from the VIE that could potentially be significant to the VIE. In order to determine whether the Company owns a variable interest in a VIE and the significance of the variable interest, the Company performs a qualitative analysis of the entity’s design, organizational structure, primary decision makers and related financial agreements. In addition to the VIEs that the Company consolidates, the Company also holds a variable interest in another VIE that is not consolidated as it was determined that the Company is not the primary beneficiary. The Company monitors both consolidated and unconsolidated VIEs to determine if any events have occurred that could cause the primary beneficiary to change. See Note 4 for discussion of the Company’s significant associated VIEs.

Interim Financial Statements. The accompanying unaudited condensed consolidated financial statements as of December 31, 2013 have been derived from the audited financial statements contained in the Company’s amended Annual Report on Form 10-K/A (“2013 Form 10-K/A”) filed on January 8, 2015. The unaudited condensed consolidated financial statements have been prepared by the Company in accordance with the accounting policies stated in the audited consolidated financial statements contained in the 2013 Form 10-K/A. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, all adjustments, which consist of normal recurring adjustments, unless otherwise disclosed herein, necessary to state fairly the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the 2013 Form 10-K/A.

Significant Accounting Policies. For a description of the Company’s significant accounting policies, see Note 1 of the consolidated financial statements included in the 2013 Form 10-K/A.

Reclassifications. Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications have no effect on the Company’s previously reported results of operations.

Restatement and Revision of Prior Period Financial Statements. See Note 2 “Restatement of Previously Issued Financial Statements” for a discussion of changes made during the second quarter of 2014 to the accompanying unaudited condensed consolidated financial statements.

Use of Estimates. The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

The more significant areas requiring the use of assumptions, judgments and estimates include: oil, natural gas and natural gas liquids (“NGL”) reserves; cash flow estimates used in the valuation of guarantees; impairment tests of long-lived assets; depreciation, depletion and amortization; asset retirement obligations; assignments of fair value and allocations of purchase price in connection with business combinations; determinations of significant alterations to the full cost pool and related estimates of fair value used to allocate the full cost pool net book value to divested properties, as necessary; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes these estimates are reasonable, actual results could differ significantly.

Recent Accounting Pronouncements Not Yet Adopted. In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain of the provisions also amend or supersede existing guidance applicable to the recognition of a gain or loss on transfers of nonfinancial assets that are not an output of an entity’s ordinary activities, including sales of property, plant and equipment and real estate. The requirements of ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period with an option of using either a full retrospective or a modified approach for adoption. The Company is currently evaluating the effect, if any, that the updated standard will have on its consolidated financial statements and related disclosures.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	800,000,000	800,000,000
Common stock, issued (in shares)	495,687,000	491,609,000
Common stock, outstanding (in shares)	494,546,000	490,290,000
8.5% Convertible perpetual preferred stock; 2,650 shares issued and outstanding at June 30, 2014 and December 31, 2013; aggregate liquidation preference of $265,000
Preferred stock, shares issued (in shares)	2,650,000	2,650,000
Preferred stock, shares outstanding (in shares)	2,650,000	2,650,000
Preferred stock, aggregate liquidation preference	$ 265,000	$ 265,000
6.0% Convertible perpetual preferred stock; 2,000 shares issued and outstanding at June 30, 2014 and December 31, 2013; aggregate liquidation preference of $200,000
Preferred stock, shares issued (in shares)	2,000,000	2,000,000
Preferred stock, shares outstanding (in shares)	2,000,000	2,000,000
Preferred stock, aggregate liquidation preference	200,000	200,000
7.0% Convertible perpetual preferred stock; 3,000 shares issued and outstanding at June 30, 2014 and December 31, 2013; aggregate liquidation preference of $300,000
Preferred stock, shares issued (in shares)	3,000,000	3,000,000
Preferred stock, shares outstanding (in shares)	3,000,000	3,000,000
Preferred stock, aggregate liquidation preference	$ 300,000	$ 300,000

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Asset Retirement Obligations

6 Months Ended

Jun. 30, 2014

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Asset Retirement Obligations

A reconciliation of the beginning and ending aggregate carrying amounts of the asset retirement obligations for the period from December 31, 2013 to June 30, 2014 is as follows (in thousands):

Asset retirement obligations at December 31, 2013	$	424,117
Liability incurred upon acquiring and drilling wells	2,382
Revisions in estimated cash flows	(438		)
Liability settled or disposed in current period(1)	(377,662		)
Accretion	6,811
Asset retirement obligations at June 30, 2014	55,210
Less: current portion	—
Asset retirement obligations, net of current	$	55,210

____________________

(1)     Includes $366.0 million associated with the Gulf Properties sold in February 2014.

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Business Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013		Dec. 31, 2013
Segment Reporting Information
Total revenues	$ 374,714		$ 512,987		$ 817,770		$ 1,024,677
(Loss) income from operations	42,079	[1],[2]	78,386	[1],[2]	(40,251)	[1],[2]	(289,096)	[1],[2]
Interest income (expense), net	(61,863)		(61,159)		(123,906)		(147,069)
Loss on extinguishment of debt	0		0		0		(82,005)
Other (expense) income, net	1,338		(106)		3,432		505
Income (loss) before income taxes(3)	(18,446)	[1],[2]	17,121	[1],[2]	(160,725)	[1],[2]	(517,665)	[1],[2]
Capital expenditures	376,937	[3]	387,158	[3]	652,710	[3]	775,870	[3]
Depreciation, depletion, amortization, accretion and impairment	116,876		180,368		418,108		363,009
Total assets	6,912,819				6,912,819				7,684,795
Exploration and Production
Segment Reporting Information
Total revenues	339,906		458,293		747,244		939,622
(Loss) income from operations	69,782	[1]	233,594	[1]	13,306	[1],[4]	(76,070)	[1],[4]
Interest income (expense), net	(4)		317		139		635
Loss on extinguishment of debt							0
Other (expense) income, net	(49)		(330)		(234)		298
Income (loss) before income taxes(3)	69,729	[1]	233,581	[1]	13,211	[1]	(75,137)	[1]
Capital expenditures	356,568	[3]	358,582	[3]	620,809	[3]	716,173	[3]
Depreciation, depletion, amortization, accretion and impairment	98,357		148,884		384,176		316,397
Total assets	5,288,478				5,288,478				6,157,225
Drilling and Oil Field Services
Segment Reporting Information
Total revenues	18,829		16,089		35,932		33,459
(Loss) income from operations	(2,347)	[5]	(19,443)	[5]	(5,449)	[5]	(28,408)	[5]
Interest income (expense), net	0		0		0		0
Loss on extinguishment of debt							0
Other (expense) income, net	(75)		0		(473)		0
Income (loss) before income taxes(3)	(2,422)		(19,443)		(5,922)		(28,408)
Capital expenditures	6,654	[3]	883	[3]	7,275	[3]	1,515	[3]
Depreciation, depletion, amortization, accretion and impairment	10,794		19,478		18,506		28,292
Total assets	142,858				142,858				158,737
Midstream Services
Segment Reporting Information
Total revenues	14,874		37,827		32,519		49,965
(Loss) income from operations	(2,345)		(7,956)		(3,756)		(10,415)
Interest income (expense), net	0		(84)		0		(209)
Loss on extinguishment of debt							0
Other (expense) income, net	0		135		0		(664)
Income (loss) before income taxes(3)	(2,345)		(7,905)		(3,756)		(11,288)
Capital expenditures	5,808	[3]	15,111	[3]	11,766	[3]	30,332	[3]
Depreciation, depletion, amortization, accretion and impairment	2,509		4,017		4,950		5,705
Total assets	193,867				193,867				188,165
All Other
Segment Reporting Information
Total revenues	1,105		778		2,075		1,631
(Loss) income from operations	(23,011)		(127,809)		(44,352)		(174,203)
Interest income (expense), net	(61,859)		(61,392)		(124,045)		(147,495)
Loss on extinguishment of debt							(82,005)
Other (expense) income, net	1,462		89		4,139		871
Income (loss) before income taxes(3)	(83,408)		(189,112)		(164,258)		(402,832)
Capital expenditures	7,907	[3]	12,582	[3]	12,860	[3]	27,850	[3]
Depreciation, depletion, amortization, accretion and impairment	5,216		7,989		10,476		12,615
Total assets	1,287,616				1,287,616				1,180,668
Operating Segments
Segment Reporting Information
Total revenues	431,322		570,543		933,005		1,139,377
Operating Segments | Exploration and Production
Segment Reporting Information
Total revenues	339,906		458,374		747,244		939,784
Operating Segments | Drilling and Oil Field Services
Segment Reporting Information
Total revenues	51,891		47,100		98,971		96,837
Operating Segments | Midstream Services
Segment Reporting Information
Total revenues	38,420		64,291		84,715		101,125
Operating Segments | All Other
Segment Reporting Information
Total revenues	1,105		778		2,075		1,631
Intersegment Eliminations
Segment Reporting Information
Total revenues	(56,608)		(57,556)		(115,235)		(114,700)
Intersegment Eliminations | Exploration and Production
Segment Reporting Information
Total revenues	0		(81)		0		(162)
Intersegment Eliminations | Drilling and Oil Field Services
Segment Reporting Information
Total revenues	(33,062)		(31,011)		(63,039)		(63,378)
Intersegment Eliminations | Midstream Services
Segment Reporting Information
Total revenues	(23,546)		(26,464)		(52,196)		(51,160)
Intersegment Eliminations | All Other
Segment Reporting Information
Total revenues	$ 0		$ 0		$ 0		$ 0

[1] Loss from operations and loss before income taxes have been restated for the Exploration and Production segment and the Consolidated Total to reflect the impact of the accrual of the CO2 delivery shortfall penalty attributable to the three and six-month periods ended June 30, 2014 and 2013. See Note 2.

[2] Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2.

[3] On an accrual basis and exclusive of acquisitions.

[4] Income (loss) from operations includes a full cost ceiling limitation impairment of $164.8 million for the six-month period ended June 30, 2014, and a loss on the sale of the Permian Properties of $399.1 million for the six-month period ended June 30, 2013.

[5] Income (loss) from operations includes an impairment of $3.1 million and $10.6 million on certain drilling assets held for sale for the three and six-month periods ended June 30, 2014 and 2013, respectively.

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Performance Units - Fair Value Assumptions (Details) (Performance Units, USD $)	6 Months Ended
	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award
Weighted-average risk-free interest rate	0.50%
Weighted-average fair value per unit	$ 98.74
Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Expected price volatility range	22.80%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Expected price volatility range	54.60%

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Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 31, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	SANDRIDGE ENERGY INC
Trading Symbol	SD
Entity Central Index Key	0001349436
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q/A
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Amendment Flag	true
Entity Common Stock, Shares Outstanding		494,027,381
Amendment Description	Explanatory Note The Company is filing this amendment on Form 10-Q/A (“Form 10-Q/A”) to amend its Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, originally filed with the SEC on August 7, 2014 (the “Original Filing”), to restate its unaudited condensed consolidated financial statements and related footnote disclosures for the three and six-month periods ended June 30, 2014 and 2013. This Form 10-Q/A also amends certain other items in the Original Filing, as listed in “Items Amended in this Form 10-Q/A” below. Restatement On November 4, 2014, the Company filed a Current Report on Form 8-K, stating that (i) the consolidated financial statements of the Company for the periods ended December 31, 2013 and 2012 included in the Company’s Annual Reports on Form 10-K for the periods then ended and (ii) the unaudited consolidated financial statements of the Company for the periods ended June 30, 2014, March 31, 2014, September 30, 2013, June 30, 2013 and March 31, 2013 included in the Company’s Quarterly Reports on Form 10-Q for the periods then ended should no longer be relied upon due to potential changes related to the accrual of a liability associated with the under delivery by the Company of CO2 to Occidental Petroleum Corporation’s (“Occidental”) Century Plant in Pecos County, Texas (the “Century Plant”) or elsewhere. Historically, based on its determination of the appropriate method of accounting for the annual CO2 delivery shortfall penalty, the Company did not evaluate whether an accrual was needed within each quarterly period prior to the fourth quarter. As a result of consultation with the staff of the SEC, the Company has determined to adopt a different method of accounting for the penalty, which method considers, on a quarterly basis, whether a portion of the annual shortfall delivery penalty should be accrued at the end of each quarter. After applying this method, the Company concluded that it should restate its previously issued unaudited condensed consolidated financial statements for the quarterly and year-to-date periods ended June 30, 2014, March 31, 2014, September 30, 2013, June 30, 2013 and March 31, 2013. The effect of such corrections is to transfer a portion of the annual accrual that was previously recorded at year-end to certain of the quarter-end periods within such calendar year. No changes are being made to the annual accruals previously recorded. For the three and six-month periods ended June 30, 2014 and 2013, the correction of these errors resulted in the accrual of (i) $8.5 million and $16.8 million in CO2 under delivery shortfall penalties, for the three and six-month periods ended June 30, 2014, respectively, and (ii) $8.1 million and $16.0 million in CO2 under delivery shortfall penalties, for the three and six-month periods ended June 30, 2013, respectively, which were previously included in the total 2013 annual delivery shortfall penalty of $32.7 million recorded in the fourth quarter of 2013. The correction of these errors in the unaudited condensed consolidated financial statements for the three and six-month periods ended June 30, 2013 did not have any impact to the statement of operations or statement of cash flows for the year ended December 31, 2013 or to the balance sheet as of December 31, 2013. As a result of the above-described adjustments, the Company is presenting in this Form 10-Q/A restated condensed consolidated financial statements for the periods indicated above. Revision Additionally, as a result of consultation with the staff of the SEC, the Company has determined that construction of the Century Plant under a construction contract with Occidental should have been accounted for under the full cost method of accounting rather than the completed contract method of accounting. As of June 30, 2014 and December 31, 2013, this change in accounting treatment had no impact on total assets, total liabilities, net income or retained earnings, but resulted in (i) certain equal and offsetting adjustments within current assets or current liabilities as of June 30, 2014 and December 31, 2013 and (ii) certain equal and offsetting adjustments within items comprising net cash provided by operating activities for the six-month periods ended June 30, 2014 and 2013. The Company has determined that none of these revisions are material to the unaudited condensed consolidated financial statements for any of the periods presented in the Original Filing; however, in conjunction with the Company’s need to file this Form 10-Q/A as a result of the error noted above, the Company has determined that it would be appropriate within this Form 10-Q/A to record all such adjustments. See “Note 2 - Restatement of Previously Issued Financial Statements” of this Form 10-Q/A for more information regarding the impact of the above-described adjustments. Internal Control Consideration The Company’s management has determined that the absence of an evaluation of whether an accrual for the annual CO2 delivery shortfall penalty was required within each quarterly period prior to the fourth quarter, in accordance with its prior method of accounting, was a deficiency in its internal control over financial reporting that constitutes a material weakness, as defined by SEC regulations, at June 30, 2014. For a discussion of management’s consideration of the Company’s disclosure controls and procedures and the material weakness identified, see Part I. Item 4 included in this Form 10-Q/A. Items Amended in this Form 10-Q/A This Form 10-Q/A sets forth the Original Filing, in its entirety, as modified and superseded as necessary to reflect the restatement. The following items in the Original Filing have been amended as a result of, and to reflect, the restatement: Part I, Item 1. Financial Statements Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Part I, Item 4. Controls and Procedures Part II, Item 6. Exhibits This Form 10-Q/A is presented as of the filing date of the Original Filing and does not reflect events occurring after that date, or modify or update the information contained therein in any way other than as required to reflect the restatement described above. In accordance with rule 12b-15 under the Exchange Act, as amended, this Form 10-Q/A includes certifications from the Company’s Chief Executive Officer and Chief Financial Officer as of the date of this filing.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

On April 5, 2011, Wesley West Minerals, Ltd. and Longfellow Ranch Partners, LP filed suit against the Company and SandRidge Exploration and Production, LLC (collectively, the “SandRidge Entities”) in the 83rd District Court of Pecos County, Texas. The plaintiffs, who have leased mineral rights to the SandRidge Entities in Pecos County, allege that the SandRidge Entities have not properly paid royalties on all volumes of natural gas and CO ₂ produced from the acreage leased from the plaintiffs. The plaintiffs also allege that the SandRidge Entities have inappropriately failed to pay royalties on CO₂ produced from the plaintiffs' acreage that results from the treatment of natural gas at the Century Plant. The plaintiffs seek approximately $45.5 million in actual damages for the period of time between January 2004 and December 2011, punitive damages and a declaration that the SandRidge Entities must pay royalties on CO ₂ produced from the plaintiffs' acreage that results from treatment of natural gas at the Century Plant. The Commissioner of the General Land Office of the State of Texas (“GLO”) is named as an additional defendant in the lawsuit as some of the affected oil and natural gas leases described in the plaintiffs' allegations cover mineral classified lands in which the GLO is entitled to one-half of the royalties attributable to such leases. The GLO has filed a cross-claim against the SandRidge Entities asserting the same claims as the plaintiffs with respect to the leases covering mineral classified lands and seeking approximately $13.0 million in actual damages, inclusive of penalties and interest. On February 5, 2013, the Company received a favorable summary judgment ruling that effectively removes a majority of the plaintiffs' and GLO's claims. On April 29, 2013, the court entered an order allowing for an interlocutory appeal of its summary judgment ruling, and on May 15, 2014, oral arguments on the appeal were presented to the Court of Appeals for the Eighth District of Texas. The Company intends to continue to defend the remaining issues in this lawsuit as well as any appellate proceedings. At the time of the ruling on summary judgment, the lawsuit was still in the discovery stage and, accordingly, an estimate of reasonably possible losses associated with the remaining causes of action, if any, cannot be made until all of the facts, circumstances and legal theories relating to such claims and the 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 proprietaryinformation, and (vi) entities allegedly affiliated with Mr. Ward were unjustly enriched. The defendants have filed respective motions to dismiss the amended consolidated complaint, which are pending before the court.

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.

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.

Because the Federal Shareholder Derivative Litigation and the State Shareholder Derivative Litigation are in the early stages, an estimate of reasonably possible losses associated with each of them, if any, cannot be made until the facts, circumstances and legal theories relating to the plaintiffs’ claims and the defendants’ defenses are fully disclosed and analyzed. The Company has not established any reserves relating to these actions.

On December 5, 2012, James Glitz and Rodger A. Thornberry, on behalf of themselves and all other similarly situated stockholders, filed a putative class action complaint in the U.S. District Court for the Western District of Oklahoma against SandRidge Energy, Inc. and certain current and former executive officers of the Company. On January 4, 2013, Louis Carbone, on behalf of himself and all other similarly situated stockholders, filed a substantially similar putative class action complaint in the same court and against the same defendants. On March 6, 2013, the court consolidated these two actions under the caption “In re SandRidge Energy, Inc. Securities Litigation” (the “Securities Litigation”) and appointed a lead plaintiff and lead counsel. On July 23, 2013, plaintiffs filed a consolidated amended complaint, which asserts a variety of federal securities claims against the Company and certain of its current and former officers and directors, among other defendants, on behalf of a putative class of (a) purchasers of SandRidge common stock during the period from February 24, 2011 to November 8, 2012, (b) purchasers of common units of the Mississippian Trust I in or traceable to its initial public offering on or about April 12, 2011, and (c) purchasers of common units of the Mississippian Trust II (together with the Mississippian Trust I, the “Mississippian Trusts”) in or traceable to its initial public offering on or about April 23, 2012. The claims are based on allegations that the Company, certain of its current and former officers and directors, and the Mississippian Trusts, among other defendants, are responsible for making false and misleading statements, and omitting material information, concerning a variety of subjects, including oil and natural gas reserves, the Company's capital expenditures, and certain transactions entered into by companies allegedly affiliated with the Company's former CEO Tom Ward. The defendants have filed respective motions to dismiss the consolidated amended complaint, which are pending before the court. Because the Securities Litigation is in the early stages, an estimate of reasonably possible losses associated with it, if any, cannot be made until the facts, circumstances and legal theories relating to the plaintiffs' claims and defendants’ defenses are fully disclosed and analyzed. The Company has not established any reserves relating to the Securities Litigation. Each of the Mississippian Trusts has requested that the Company indemnify it for any losses it may incur in connection with the Securities Litigation.

On July 15, 2013, James Hart and fifteen other named plaintiffs filed an Amended Complaint in the United States District Court for the District of Kansas in an action undertaken individually and on behalf of others similarly situated against SandRidge Energy, Inc., SandRidge Operating Company, SandRidge E&P, SandRidge Midstream, Inc., and Lariat Services, Inc. In their Amended Complaint, plaintiffs allege that the defendants failed to properly calculate overtime pay for the plaintiffs and for other similarly situated current and former employees. The plaintiffs further allege that the defendants required the plaintiffs and other similarly situated current and former employees to engage in work-related activities without pay. The plaintiffs assert claims against the defendants for (i) violations of the Fair Labor Standards Act, (ii) violations of the Kansas Wage Payment Act, (iii) breach of contract, and (iv) fraud, and seek to recover unpaid wages and overtime pay, liquidated damages, statutory penalties, economic damages, compensatory and punitive damages, attorneys’ fees and costs, and both pre- and post-judgment interest.

On October 3, 2013, the plaintiffs filed a Motion for Conditional Collective Action Certification and for Judicial Notice to the Class and a Motion to Toll the Statute of Limitations. On October 11, 2013, the defendants filed a Motion to Dismiss and a Motion to Transfer Venue to the United States District Court for the Western District of Oklahoma.

On April 2, 2014, the court granted the defendants’ Motion to Dismiss and granted plaintiffs leave to file an amended complaint by April 16, 2014, which they did on such date. On July 1, 2014, the court granted plaintiffs’ Motion for Conditional Collective Action Certification and for Judicial Notice to the Class, and denied plaintiffs’ Motion to Toll the Statute of Limitations. The Company and the other defendants intend to defend this lawsuit vigorously. This lawsuit is in the early stages and, accordingly, an estimate of reasonably possible losses associated with this action, if any, cannot be made until the facts, circumstances and legal theories relating to the plaintiffs' claims and the defendants’ defenses are fully disclosed and analyzed. The Company has not established any reserves relating to this action.

OnDecember 18, 2013, the Company received a subpoena duces tecum from the U.S. Department of Justice in connection with an ongoinginvestigation 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.

In addition to the litigation described above, the Company is a defendant in lawsuits from time to time in the normal course of business. While the results of litigation and claims cannot be predicted with certainty, the Company believes the reasonably possible losses of such matters, individually and in the aggregate, are not material. Additionally, the Company believes the probable final outcome of such matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, cash flows or liquidity.

Treating Agreement Commitment

The Company is party to a 30-year treating agreement with Occidental for the removal of CO₂ from natural gas volumes delivered by the Company. Under the agreement, the Company is required to deliver a total of approximately 3,200 Bcf of CO₂ during the agreement period. The Company is obligated to pay Occidental $0.25 per Mcf to the extent minimum annual CO₂ volume requirements are not met. Through December 31, 2013, the Company had delivered to Occidental 34.0 Bcf of CO₂, which is 164.4 Bcf less than the cumulative minimum annual CO₂ volume requirements for the same period. If such under delivered volumes are not made up with commensurate over deliveries in the future, the Company will be obligated to pay Occidental $0.70 per Mcf (approximately $115.1 million total) in 2041, which amount has not been accrued by the Company as a liability as the Company does not currently believe such payment is probable.

Under certain circumstances, the Company will have the right, beginning in 2020, to reduce future minimum annual CO₂ volume requirements under the agreement by paying Occidental an amount equal to the present value of $0.70 multiplied by such reduced CO₂ volume requirements as designated by the Company. As of June 30, 2014, if the Company were to cease delivering natural gas for processing and made no future CO₂ deliveries from such date until 2020, the estimated amount required to be paid in 2020 in order to adjust the future CO₂ volume requirements to zero, including applicable annual delivery shortfall penalties, would be approximately $587.5 million. This amount will continue to decrease as future deliveries of CO₂ are made. The Company also may terminate the treating agreement at any time, which would require a termination payment by the Company to Occidental of an amount equal to (a) the present value of $0.70 multiplied by the remaining CO₂ volumes required to be delivered under the agreement, plus (b) Occidental’s current net book value of the Century Plant.

Based upon the quantity of CO₂ delivered by the Company during the period from January 1, 2014 through June 30, 2014 and estimated quantities the Company expects to deliver during the remainder of 2014, the Company accrued estimated annual under delivery penalties ($0.25 per Mcf) of approximately $8.5 million and $16.8 million for the three and six-month periods ended June 30, 2014. Additionally, the Company has included an accrued expense for the three and six-month periods ended June 30, 2013 of $8.1 million and $16.0 million for the $0.25 Mcf fee attributable to the estimated 2013 annual under delivery penalty based upon the quantity of CO₂ delivered by the Company during the period from January 1, 2013 through June 30, 2013 as described in Note 2. Based on current projected natural gas production levels, the Company expects to accrue between approximately $30.0 million and $37.0 million during the year ending December 31, 2014 for amounts related to the Company’s anticipated shortfall in meeting its 2014 annual delivery obligations. The Company has not accrued any liability for the $0.70 per Mcf fee (approximately $47.0 million total) that would be due in 2041 if these anticipated shortfalls occur and are not made up in the future as the Company does not currently believe such payment is probable.

The Company has first priority on daily available processing capacity for properly nominated and delivered volumes; however, based on cumulative delivered volumes as of the balance sheet date, if the Company makes no further deliveries from that date until 2025, beginning in 2025 the Century Plant, even if fully utilized, would not have adequate capacity to allow the Company to deliver CO₂ volumes attributable to previously incurred delivery shortfalls at that time.

Guarantees of Plugging and Abandonment Obligations

Under the equity purchase agreement associated with the sale of Gulf Properties, the Company has guaranteed on behalf of Fieldwood certain plugging and abandonment obligations associated with the Gulf Properties for a period of up to one year from the date of closing. See Note 3 for additional information regarding the guarantees.

Risks and Uncertainties

The Company’s revenue, profitability and future growth are substantially dependent upon the prevailing and future prices for oil and natural gas, which depend on numerous factors beyond the Company’s control such as overall oil and natural gas production and inventories in relevant markets, economic conditions, the global political environment, regulatory developments and competition from other energy sources. Oil and natural gas prices historically have been volatile, and may be subject to significant fluctuations in the future. The Company enters into derivative arrangements in order to mitigate a portion of the effect of this price volatility on the Company’s cash flows. See Note 10 for the Company’s open oil and natural gas derivative contracts.

Production targets contained in certain gathering and treating agreements require the Company to incur capital expenditures or make associated shortfall payments. Additionally, the Company has a drilling obligation to each of the Permian Trust and the Mississippian Trust II. See Note 4 for discussion of these drilling obligations. The Company depends on cash flows from operating activities, funding commitments from third parties for drilling carries, 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, including proceeds received from the sale of the Gulf Properties, cash flows from operating activities and funding commitments from third parties for drilling carries, the Company expects to be able to fund its planned capital expenditures budget, debt service requirements and working capital needs for the remainder of 2014. However, a substantial or extended decline in oil or natural gas prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows and quantities of oil, natural gas and NGL reserves that may be economically produced, which could adversely impact the Company’s ability to comply with the financial covenants under its senior credit facility. See Note 9 for discussion of the financial covenants in the senior credit facility.

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Asset Retirement Obligations - Reconciliation of Beginning and Ending Aggregate Carrying Amounts of Asset Retirement Obligations (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014		Dec. 31, 2013
Asset Retirement Obligation, Roll Forward Analysis
Asset retirement obligations at December 31, 2013	$ 424,117
Liability incurred upon acquiring and drilling wells	2,382
Revisions in estimated cash flows	(438)
Liability settled or disposed in current period(1)	(377,662)	[1]
Accretion	6,811
Asset retirement obligations at June 30, 2014	55,210
Less: current portion	0		87,063
Asset retirement obligations, net of current	$ 55,210		$ 337,054

[1] Includes $366.0 million associated with the Gulf Properties sold in February 2014.

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Related Party Transactions - Additional Information (Details) (USD $) Share data in Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Related Party Transaction
Employee termination benefits	$ 813,000	$ 107,720,000	$ 8,922,000	$ 118,118,000
Former Chairman and CEO Severance
Related Party Transaction
Employee termination benefits		58,200,000		58,200,000
Severance, compensation cost of accelerated shares		36,800,000		36,800,000
Severance, number of accelerated shares		6.3		6.3
Severance, liability	3,900,000		3,900,000
Employee Severance | Gulf Properties
Related Party Transaction
Employee termination benefits			8,900,000
Executive Severance | Permian Properties
Related Party Transaction
Employee termination benefits				$ 23,100,000

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Revenues
Oil, natural gas and NGL	$ 339,906		$ 454,282		$ 745,222		$ 932,299
Drilling and services	18,852		16,078		35,932		33,448
Midstream and marketing	14,874		15,198		32,784		28,230
Construction contract	0		23,253		0		23,253
Other	1,082		4,176		3,832		7,447
Total revenues	374,714		512,987		817,770		1,024,677
Expenses
Production	66,953		124,883		173,809		265,340
Production taxes	7,840		6,564		15,647		16,003
Cost of sales	10,469		15,348		22,950		31,665
Midstream and marketing	13,254		14,927		29,254		26,730
Construction contract	0		23,253		0		23,253
Depreciation and depletion—oil and natural gas	97,267		138,903		212,452		296,429
Depreciation and amortization—other	15,411		16,022		30,933		31,358
Accretion of asset retirement obligations	1,065		9,800		6,811		19,579
Impairment	3,133		15,643		167,912		15,643
General and administrative	31,102		65,541		61,531		134,587
Employee termination benefits	813		107,720		8,922		118,118
Loss (gain) on derivative contracts	85,292		(103,654)		127,783		(62,757)
Loss (gain) on sale of assets	36		(349)		17		397,825
Total expenses	332,635	[1]	434,601	[1]	858,021	[1]	1,313,773	[1]
Income (loss) from operations	42,079	[1],[2]	78,386	[1],[2]	(40,251)	[1],[2]	(289,096)	[1],[2]
Other income (expense)
Interest expense	(61,863)		(61,159)		(123,906)		(147,069)
Loss on extinguishment of debt	0		0		0		(82,005)
Other income (expense), net	1,338		(106)		3,432		505
Total other expense	(60,525)		(61,265)		(120,474)		(228,569)
(Loss) income before income taxes	(18,446)	[1],[2]	17,121	[1],[2]	(160,725)	[1],[2]	(517,665)	[1],[2]
Income tax (benefit) expense	(1,194)		508		(1,067)		4,937
Net (loss) income	(17,252)	[1]	16,613	[1]	(159,658)	[1]	(522,602)	[1]
Less: net income (loss) attributable to noncontrolling interest	15,642		45,121		9,572		(6,798)
Net loss attributable to SandRidge Energy, Inc.	(32,894)	[1]	(28,508)	[1]	(169,230)	[1]	(515,804)	[1]
Preferred stock dividends	13,881		13,881		27,763		27,763
Loss applicable to SandRidge Energy, Inc. common stockholders	$ (46,775)		$ (42,389)		$ (196,993)		$ (543,567)
Loss per share
Basic (in dollars per share)	$ (0.10)		$ (0.09)		$ (0.41)		$ (1.14)
Diluted (in dollars per share)	$ (0.10)		$ (0.09)		$ (0.41)		$ (1.14)
Weighted average number of common shares outstanding
Basic (in shares)	485,318		479,154		485,059		478,494
Diluted (in shares)	485,318		479,154		485,059		478,494

[1] Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2.

[2] Loss from operations and loss before income taxes have been restated for the Exploration and Production segment and the Consolidated Total to reflect the impact of the accrual of the CO2 delivery shortfall penalty attributable to the three and six-month periods ended June 30, 2014 and 2013. See Note 2.

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Property, Plant and Equipment

6 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment consists of the following (in thousands):

	June 30, 2014			December 31, 2013
Oil and natural gas properties
Proved(1)	$	10,807,088		$	10,972,816
Unproved	309,043			531,606
Total oil and natural gas properties	11,116,131			11,504,422
Less accumulated depreciation, depletion and impairment	(6,138,833		)	(5,762,969		)
Net oil and natural gas properties capitalized costs	4,977,298			5,741,453
Land	18,270			18,423
Non-oil and natural gas equipment(2)	614,198			600,603
Buildings and structures(3)	244,076			233,405
Total	876,544			852,431
Less accumulated depreciation and amortization	(312,023		)	(286,209		)
Other property, plant and equipment, net	564,521			566,222
Total property, plant and equipment, net	$	5,541,819		$	6,307,675

____________________

(1) Includes cumulative capitalized interest of approximately $29.0 million and $23.4 million at June 30, 2014 and December 31, 2013, respectively.

(2) Includes cumulative capitalized interest of approximately $4.3 million at both June 30, 2014 and December 31, 2013.

(3) Includes cumulative capitalized interest of approximately $14.4 million and $12.0 million at June 30, 2014 and December 31, 2013, respectively.

Accumulated depreciation, depletion and impairment on oil and natural gas properties includes cumulative full cost ceiling limitation impairment of $3.7 billion and $3.5 billion at June 30, 2014 and December 31, 2013, respectively. During the six-month period ended June 30, 2014, the Company reduced the net carrying value of its oil and natural gas properties by $164.8 million as a result of its first quarter full cost ceiling analysis.

Century Plant Construction Costs

Included in proved oil and natural gas properties is approximately $180.0 million of costs in excess of contracted and reimbursed amounts incurred by the Company during construction of the Century Plant in Pecos County, Texas pursuant to an agreement with Occidental. Due to the high-CO2 content of the Company’s reserves in the Piñon Field and the absence of adequate processing capacity in the Piñon Field area, construction of a large-scale processing facility, such as the Century Plant, was necessary for the development of the Company’s natural gas reserves in that area. The Company entered into the construction agreement and a related treating agreement with Occidental solely to facilitate the development of its reserves in the Piñon Field and greater West Texas Overthrust area and, accordingly, has recorded these unreimbursed costs as development costs within its full cost pool. See Note 12 for discussion of the related treating agreement.

Drilling Carry Commitments

The Company has agreements with two co-working interest parties, which contain carry commitments to fund a portion of its future drilling, completing and equipping costs within areas of mutual interest. The Company recorded approximately $175.4 million for Repsol E&P USA, Inc.’s (“Repsol”) carry during the six-month period ended June 30, 2014, and a combined $248.3 million for both Atinum MidCon I, LLC’s (“Atinum”) and Repsol’s drilling carries during the six-month periods ended June 30, 2013, which reduced the Company’s capital expenditures for the respective periods. Atinum fully funded its carry commitment in the third quarter of 2013. The Company expects Repsol to fully fund its carry commitment during 2014.

Under the agreement with Repsol, the remaining carry commitment could be reduced if a certain number of wells are not drilled within the area of mutual interest during a twelve-month period and the Company fails to drill such wells following a proposal by Repsol to drill the wells.  During 2013, the Company temporarily reduced its rate of drilling activity. As a result, the Company drilled less than the targeted number of wells for such twelve-month period, which resulted in Repsol having a right to propose additional wells. In June 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 June 30, 2014, the Company has drilled 143 net wells under this arrangement and currently anticipates satisfying its drilling commitment within the required time period. The Company has no other drilling obligation to Repsol.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company measures and reports certain assets and liabilities on a fair value basis and has classified and disclosed its fair value measurements using the following levels of the fair value hierarchy:

Level 1	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level 2	Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability.
Level 3	Measurement based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable for objective sources (i.e., supported by little or no market activity).

Assets and liabilities that are measured at fair value are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values, stated below, considers the market for the Company’s financial assets and liabilities, the associated credit risk and other factors. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The Company has assets and liabilities classified as Level 1, Level 2 and Level 3 as of June 30, 2014 or December 31, 2013, as described below.

Level 1 Fair Value Measurements

Restricted deposits. The fair value of restricted deposits invested in mutual funds or municipal bonds is based on quoted market prices. For restricted deposits held in savings accounts, carrying value approximates fair value. Restricted deposits are included in other assets in the accompanying unaudited condensed consolidated balance sheet at December 31, 2013. There were no restricted deposits outstanding at June 30, 2014.

Investments. The fair value of investments, consisting of assets attributable to the Company’s non-qualified deferred compensation plan, is based on quoted market prices. Investments are included in other assets in the accompanying unaudited condensed consolidated balance sheets.

Level 2 Fair Value Measurements

Derivative contracts. The fair values of the Company’s oil and natural gas fixed price swaps and collars are based upon inputs that are either readily available in the public market, such as oil and natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets. Fair value is determined through the use of a discounted cash flow model or option pricing model using the applicable inputs, discussed above. The Company applies a weighted average credit default risk rating factor for its counterparties or gives effect to its credit default risk rating, as applicable, in determining the fair value of these derivative contracts. Credit default risk ratings are based on current published credit default swap rates.

Level 3 Fair Value Measurements

Guarantees. As discussed in Note 3, the Company has guaranteed on Fieldwood’s behalf certain plugging and abandonment obligations associated with the Gulf Properties. The fair value of these guarantees is based on the present value of estimated future payments for plugging and abandonment obligations associated with the Gulf Properties, adjusted for the cumulative probability of Fieldwood’s default prior to expiration of the guarantee by February 25, 2015 (3.71% at June 30, 2014). The discount and probability of default rates are based upon inputs that are readily available in the public market, such as historical option adjusted spreads of the Company’s senior notes, which are publicly traded, and historical default rates of publicly traded companies with credit ratings similar to Fieldwood. The significant unobservable input used in the fair value measurement of the guarantees is the estimate of future payments for plugging and abandonment, which was developed based upon third-party quotes and current actual costs. Significant increases (decreases) in the estimate of these payments could result in a significantly higher (lower) fair value measurement. The significant unobservable input used in the fair value measurement of the Company’s financial guarantee liability at June 30, 2014 is included in the table below (in thousands).

Unobservable Input
Estimated future payments for plugging and abandonment	$	426,661

Derivative contracts. The fair value of the Company’s oil basis swaps outstanding during the six-month period ended June 30, 2013 was based upon quotes obtained from counterparties to the derivative contracts. These values were reviewed internally for reasonableness through the use of a discounted cash flow model using non-exchange traded regional pricing information. Additionally, the Company applied a weighted average credit default risk rating factor for its counterparties or gave effect to its credit risk, as applicable, in determining the fair value of these derivative contracts. The significant unobservable input used in the fair value measurement of the Company’s oil basis swaps was the estimate of future oil basis differentials. Significant increases (decreases) in oil basis differentials could have resulted in a significantly higher (lower) fair value measurement. All of the oil basis swaps outstanding during 2013 contractually matured during the six-month period ended June 30, 2013.

The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy (in thousands):

June 30, 2014

	Fair Value Measurements						Netting(1)			Assets/Liabilities at Fair Value
	Level 1		Level 2		Level 3
Assets
Commodity derivative contracts	$	—	$	6,490	$	—	$	(3,549	)	$	2,941
Investments	10,740		—		—		—			10,740
	$	10,740	$	6,490	$	—	$	(3,549	)	$	13,681
Liabilities
Guarantees	$	—	$	—	$	12,028	$	—		$	12,028
Commodity derivative contracts	—		65,810		—		(3,549		)	62,261
	$	—	$	65,810	$	12,028	$	(3,549	)	$	74,289

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 for counterparties with which the right of offset exists.

The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for guarantees during the three and six-month periods ended June 30, 2014 (in thousands):

Level 3 Fair Value Measurements - Guarantees	Three Months Ended June 30, 2014		Six Months Ended June 30, 2014
Beginning balance	$	9,480	$	—
Issuances(1)	—		9,446
Loss on guarantees	2,548		2,582
Ending balance	$	12,028	$	12,028

____________________

(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 June 30, 2014 is included in other current liabilities in the accompanying unaudited condensed consolidated balance sheet.

The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for commodity derivative contracts during the three and six-month periods ended June 30, 2013 (in thousands):

Level 3 Fair Value Measurements - Commodity Derivative Contracts	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
Beginning balance	$	(211	)	$	(512	)
Gain (loss) on derivative contracts	740			(133		)
Settlements (received) paid	(529		)	645
Ending balance	$	—		$	—

There were no outstanding Level 3 commodity derivative contracts at June 30, 2014 or 2013.

See Note 10 for further discussion of the Company’s derivative contracts.

The Company recognizes transfers between fair value hierarchy levels as of the end of the reporting period in which the event or change in circumstances causing the transfer occurred. During the three and six-month periods ended June 30, 2014 and 2013, the Company did not have any transfers between Level 1, Level 2 or Level 3 fair value measurements.

Fair Value of Financial Instruments

The Company measures the fair value of its senior notes using pricing for the senior notes that is readily available in the public market. The Company classifies these inputs as Level 2 in the fair value hierarchy. The estimated fair values and carrying values of the Company’s senior notes at June 30, 2014 and December 31, 2013 were as follows (in thousands):

	June 30, 2014				December 31, 2013
	Fair Value		Carrying Value		Fair Value		Carrying Value
8.75% Senior Notes due 2020(1)	$	483,750	$	445,062	$	486,000	$	444,736
7.5% Senior Notes due 2021(2)	1,273,465		1,178,708		1,230,813		1,178,922
8.125% Senior Notes due 2022	825,000		750,000		795,000		750,000
7.5% Senior Notes due 2023(3)	893,063		821,395		837,375		821,249

____________________

(1) Carrying value is net of $4,938 and $5,264 discount at June 30, 2014 and December 31, 2013, respectively.

(2) Carrying value includes a premium, applicable to notes issued in August 2012, of $3,708 and $3,922 at June 30, 2014 and December 31, 2013, respectively.

(3) Carrying value is net of $3,605 and $3,751 discount at June 30, 2014 and December 31, 2013, respectively.

See Note 9 for discussion of the Company’s long-term debt.

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Performance Units

6 Months Ended

Jun. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Compensation Plans

Performance Units

The Company periodically grants performance units to certain members of senior management under the Company’s existing long-term incentive plan which vest over a performance period of approximately three years. The value, and ultimate payout, of the performance units is determined based upon the Company’s total shareholder return relative to that of a predetermined peer group over a specific performance period. If performance exceeds established minimum thresholds, payout percentages could range from 50% to 200% of specified target values. If minimum target thresholds are not met, the payout is reduced to zero.

The performance units are valued for accounting purposes using a Monte Carlo simulation based on certain assumptions, including (i) a volatility assumption based on the historical realized price volatility of the Company’s common stock and the common stock of the predetermined peer group for each grant year and (ii) a risk-free interest rate based on the U.S. Treasury bond yields for a term commensurate with the approximate remaining vesting period for each grant. As of June 30, 2014 and December 31, 2013, the Company’s liability associated with performance units totaled $3.8 million and $1.8 million, respectively. The liability represents the fair value of the portion of performance units for which requisite service has been completed. The following table presents a summary of the fair value of the performance units and the related assumptions for all outstanding units as of June 30, 2014.

Expected price volatility range	22.8	%	-	54.6%
Weighted-average risk-free interest rate				0.5%
Weighted-average fair value per unit				$98.74

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Equity

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Equity

Equity

Preferred Stock Dividends

All dividend payments to date on the Company’s 8.5%, 6.0% and 7.0% convertible perpetual preferred stock have been paid in cash. Paid and unpaid dividends included in the calculation of loss applicable to the Company’s common stockholders and the Company’s basic loss per share calculation for the three and six-month periods ended June 30, 2014 and 2013 as presented in the accompanying unaudited condensed consolidated statements of operations, are included in the tables below (in thousands):

	Three Months Ended June 30,
	2014						2013
	Dividends Paid		Dividends Unpaid		Total		Dividends Paid		Dividends Unpaid		Total
8.5% Convertible perpetual preferred stock	$	—	$	5,631	$	5,631	$	—	$	5,631	$	5,631
6.0% Convertible perpetual preferred stock	—		3,000		3,000		—		3,000		3,000
7.0% Convertible perpetual preferred stock	2,625		2,625		5,250		2,625		2,625		5,250
Total	$	2,625	$	11,256	$	13,881	$	2,625	$	11,256	$	13,881
	Six Months Ended June 30,
	2014						2013
	Dividends Paid		Dividends Unpaid		Total		Dividends Paid		Dividends Unpaid		Total
8.5% Convertible perpetual preferred stock	$	2,816	$	8,447	$	11,263	$	2,816	$	8,447	$	11,263
6.0% Convertible perpetual preferred stock	500		5,500		6,000		500		5,500		6,000
7.0% Convertible perpetual preferred stock	7,875		2,625		10,500		7,875		2,625		10,500
Total	$	11,191	$	16,572	$	27,763	$	11,191	$	16,572	$	27,763

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 six-month periods ended June 30, 2014 and 2013. These shares were accounted for as treasury stock when withheld and then immediately retired.

	Six Months Ended June 30,
	2014		2013
	(In thousands)
Number of shares withheld for taxes	637		5,107
Value of shares withheld for taxes	$	3,865	$	27,196

Stockholder Receivable

The Company is party to a settlement agreement relating to a third-party claim against its former CEO under Section 16(b) of the Securities Exchange Act of 1934, as amended. Under the settlement agreement, the Company’s former CEO agreed to pay to the Company $5.0 million in four installments over four years commencing October 2013 and to waive his rights under his indemnification agreement with the Company with respect to the Section 16(b) action. The Company agreed to pay the fees of the plaintiff’s lawyers and paid the former CEO’s legal expenses as required under his indemnification agreement.

Based on the nature of the settlement as well as the former CEO’s position as an officer of the Company at the time of the settlement, the receivable is classified as a component of additional paid-in capital in the accompanying unaudited condensed consolidated balance sheets. The amount receivable under the agreement as of June 30, 2014 and December 31, 2013 was $3.8 million.

Restricted Common Stock

Equity compensation provided to employees directly involved in exploration and development activities is capitalized to the Company’s oil and natural gas properties. Equity compensation not capitalized is recognized in general and administrative expenses, production expenses, cost of sales and midstream and marketing expenses in the consolidated statements of operations. For the three and six-month periods ended June 30, 2014, the Company recognized equity compensation expense of $6.1 million, and $13.5 million, net of $1.8 million and $3.0 million capitalized, respectively, related to restricted common stock. For the three and six-month periods ended June 30, 2013, the Company recognized equity compensation expense of $51.7 million, and $70.7 million, net of $1.3 million and $2.9 million capitalized, respectively, related to restricted common stock. The three and six-month periods ended June 30, 2013 include approximately $40.9 million and $48.5 million, respectively, of equity compensation expense recognized in connection with the separation of certain former executives from the Company.

See Note 17 for discussion of the Company’s performance units.

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Equity - Treasury Stock Activity (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Equity, Class of Treasury Stock [Line Items]
Value of shares withheld for taxes	$ 3,865
Treasury Stock
Equity, Class of Treasury Stock [Line Items]
Number of shares withheld for taxes	637	5,107
Value of shares withheld for taxes	$ 3,865	$ 27,196

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Long-Term Debt

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt consists of the following (in thousands):

	June 30, 2014		December 31, 2013
Senior credit facility	$	—	$	—
Senior notes
8.75% Senior Notes due 2020, net of $4,938 and $5,264 discount, respectively	445,062		444,736
7.5% Senior Notes due 2021, including premium of $3,708 and $3,922, respectively	1,178,708		1,178,922
8.125% Senior Notes due 2022	750,000		750,000
7.5% Senior Notes due 2023, net of $3,605 and $3,751 discount, respectively	821,395		821,249
Total debt	3,195,165		3,194,907
Less: current maturities of long-term debt	—		—
Long-term debt	$	3,195,165	$	3,194,907

Senior Credit Facility

The senior secured revolving credit facility (the “senior credit facility”) is available to be drawn on subject to limitations based on its terms and certain financial covenants, as described below. As of June 30, 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 4.5:1.0 at each quarter end, calculated using the last four completed fiscal quarters and (ii) ratio of current assets to current liabilities, which must be at least 1.0:1.0 at each quarter end. If no amounts are drawn under the senior credit facility when calculating the ratio of total net debt to EBITDA, the Company’s debt is reduced by its cash balance in excess of $10.0 million. In the current ratio calculation, any amounts available to be drawn under the senior credit facility are included in current assets, and unrealized assets and liabilities resulting from mark-to-market adjustments on the Company’s derivative contracts are disregarded. The senior credit facility matures in March 2017.

The senior credit facility also contains various covenants that limit the ability of the Company and certain of its subsidiaries to: grant certain liens; make certain loans and investments; make distributions; redeem stock; redeem or prepay debt; merge or consolidate with or into a third party; or engage in certain asset dispositions, including a sale of all or substantially all of the Company’s assets. Additionally, the senior credit facility limits the ability of the Company and certain of its subsidiaries to incur additional indebtedness with certain exceptions. As of and during the three and six-month periods ended June 30, 2014, the Company was in compliance with all applicable financial covenants under the senior credit facility.

The obligations under the senior credit facility are guaranteed by certain Company subsidiaries and are secured by first priority liens on all shares of capital stock of certain of the Company’s material present and future subsidiaries, certain intercompany debt of the Company, and substantially all of the Company’s assets, including proved oil, natural gas and NGL reserves representing at least 80.0% of the discounted present value (as defined in the senior credit facility) of proved oil, natural gas and NGL reserves considered by the lenders in determining the borrowing base for the senior credit facility.

At the Company’s election, interest under the senior credit facility is determined by reference to (a) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin between 1.75% and 2.75% per annum or (b) the “base rate,” which is the highest of (i) the federal funds rate plus 0.5%, (ii) the prime rate published by Bank of America or (iii) the Eurodollar rate (as defined in the senior credit facility) plus 1.00% per annum, plus, in each case under scenario (b), an applicable margin between 0.75% and 1.75% per annum. Interest is payable quarterly for base rate loans and at the applicable maturity date for LIBOR loans, except that if the interest period for a LIBOR loan is six months, interest is paid at the end of each three-month period. Quarterly, the Company pays a commitment fee assessed at an annual rate of 0.5% on any available portion of the senior credit facility.

Borrowings under the senior credit facility may not exceed the lower of the borrowing base or the committed amount. The Company’s borrowing base was reaffirmed at $775.0 million in April 2014 and the next redetermination is expected to take place in October 2014. With respect to each redetermination, the administrative agent and the lenders under the senior credit facility consider several factors, including the Company’s proved reserves and projected cash requirements, and make assumptions regarding, among other things, oil and natural gas prices and production. Because the value of the Company’s proved reserves is a key factor in determining the amount of the borrowing base, changing commodity prices and the Company’s success in developing reserves may affect the borrowing base. The Company at times incurs additional costs related to the senior credit facility as a result of amendments to the credit agreement and changes to the borrowing base.

At June 30, 2014, the Company had no amount outstanding under the senior credit facility and $10.4 million in outstanding letters of credit, which reduce the availability under the senior credit facility on a dollar-for-dollar basis.

Senior Fixed Rate Notes

The Company’s unsecured senior fixed rate notes (“Senior Fixed Rate Notes”) bear interest at a fixed rate per annum, payable semi-annually, with the principal due upon maturity. Certain of the Senior Fixed Rate Notes were issued at a discount or a premium. The discount or premium is amortized to interest expense over the term of the respective series of Senior Fixed Rate Notes. The Senior Fixed Rate Notes are redeemable, in whole or in part, prior to their maturity at specified redemption prices and are jointly and severally guaranteed unconditionally, in full, on an unsecured basis by certain of the Company’s wholly owned subsidiaries. See Note 19 for condensed financial information of the subsidiary guarantors.

Debt issuance costs of $70.2 million incurred in connection with the offerings and subsequent registered exchange offers of the Senior Fixed Rate Notes outstanding at June 30, 2014 are included in other assets in the accompanying unaudited condensed consolidated balance sheets and are being amortized to interest expense over the term of the respective series of Senior Fixed Rate Notes.

2013 Activity. In March 2013, the Company redeemed the outstanding $365.5 million aggregate principal amount of its 9.875% Senior Notes due 2016 and $750.0 million aggregate principal amount of its 8.0% Senior Notes due 2018 for total consideration of $1,061.34 per $1,000 principal amount and $1,052.77 per $1,000 principal amount, respectively. The premium paid to redeem these notes and the expense incurred to write off the remaining associated unamortized debt issuance costs, totaling $82.0 million, were recorded as a loss on extinguishment of debt in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2013.

Indentures.Each of the indentures governing the Company’s Senior Fixed Rate Notes contains covenants that restrict the Company’s ability to take a variety of actions, including limitations on the incurrence of indebtedness, payment of dividends, investments, asset sales, certain asset purchases, transactions with related parties and consolidations or mergers. As of and during the three and six-month periods ended June 30, 2014, the Company was in compliance with all of the covenants contained in the indentures governing its outstanding Senior Fixed Rate Notes.

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Variable Interest Entities - Additional Information (Details) (USD $)	6 Months Ended		1 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Apr. 30, 2011	Aug. 31, 2011	Apr. 30, 2012	Dec. 31, 2013	Mar. 31, 2014
Variable Interest Entity
Proceeds from sale of royalty trust units	$ 22,119,000	$ 0
Mississippian Trust I
Variable Interest Entity
Royalty trust IPO date			April 2011
Development period deadline under development agreement	Dec. 31, 2015
Period drilling obligation to Royalty Trust fulfilled	second quarter of 2013
Beneficial interest owned by Company	26.90%					26.90%
Permian Trust
Variable Interest Entity
Royalty trust IPO date				August 2011
Development period deadline under development agreement	Mar. 31, 2016
Beneficial interest owned by Company	25.00%					28.50%
Mississippian Trust II
Variable Interest Entity
Royalty trust IPO date					April 2012
Development period deadline under development agreement	Dec. 31, 2016
Beneficial interest owned by Company	37.60%					37.60%
Royalty Trusts
Variable Interest Entity
Percentage of subordinated units to total units	25.00%
Royalty Trust subordinated units distributions	The subordinated units are entitled to receive pro rata distributions from the Royalty Trusts each quarter if and to the extent there is sufficient cash to provide a cash distribution on the common units that is no less than the applicable quarterly subordination threshold. If there is not sufficient cash to fund such a distribution on all common units, the distribution made with respect to the subordinated units is reduced or eliminated for such quarter in order to make a distribution, to the extent possible, of up to the subordination threshold amount on all common units, including common units held by the Company.
Percentage of cash available in excess of target distribution paid for incentive distribution	50.00%
Royalty Trust incentive distributions	In exchange for agreeing to subordinate a portion of its Royalty Trust units, SandRidge is entitled to receive incentive distributions equal to 50% of the amount by which the cash available for distribution on all of the Royalty Trust units exceeds the applicable quarterly incentive threshold.
Outstanding balance under loan commitment	0					0
Maximum amount recoverable by trusts under the lien	48,200,000
Noncontrolling interest	1,300,000,000					1,300,000,000
Proceeds from sale of royalty trust units	22,100,000
Liabilities	3,286,000					3,393,000
Grey Ranch Plant, L.P
Variable Interest Entity
Beneficial interest owned by Company						50.00%
Noncontrolling interest, ownership percentage by noncontrolling owners						50.00%
Company purchase of noncontrolling interest, percentage							50.00%
Noncontrolling interest, limited partnerships						700,000
Liabilities						129,000
Grey Ranch Plant Genpar, LLC ("Genpar")
Variable Interest Entity
Beneficial interest owned by Company						50.00%
Company purchase of noncontrolling interest, percentage							50.00%
Percentage ownership of another VIE						1.00%
Liabilities						0
Gas Gathering Agreement | Pinon Gathering Company LLC
Variable Interest Entity
Gas gathering and operations and maintenance agreement end date	Jun. 30, 2029

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Other Assets

6 Months Ended

Jun. 30, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

Other Assets

Other assets consist of the following (in thousands):

	June 30, 2014		December 31, 2013
Debt issuance costs, net of amortization	$	57,220	$	61,923
Investments	10,740		13,708
Deferred tax asset	7,143		—
Restricted deposits(1)	—		27,955
Notes receivable on asset retirement obligations(1)	—		11,640
Other	3,455		5,945
Total other assets	$	78,558	$	121,171

____________________

(1) Assets reflected at December 31, 2013 were included in the sale of the Gulf Properties in February 2014, as discussed in Note 3.

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Construction Contracts

6 Months Ended

Jun. 30, 2014

Contractors [Abstract]

Construction Contracts

Construction Contracts

Transmission Expansion Projects. In the second quarter of 2013, the Company substantially completed the construction of a series of electrical transmission expansion and upgrade projects in northern Oklahoma for a third party. The Company constructed these projects for a contract price of $23.3 million, which included agreed upon change orders. Upon substantial completion of the contract, the Company recognized construction contract revenue and costs equal to the revised contract price of $23.3 million, which are included in the accompanying unaudited condensed consolidated statements of operations for the three and six-month periods ended June 30, 2013.

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Derivatives

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

The Company has not designated any of its derivative contracts as hedges for accounting purposes. The Company records all derivative contracts at fair value. Changes in derivative contract fair values are recognized in earnings. Cash settlements and valuation gains and losses are included in loss on derivative contracts for commodity derivative contracts and in interest expense for interest rate swaps in the consolidated statements of operations. Commodity derivative contracts are settled on a monthly or quarterly basis. Derivative assets and liabilities arising from the Company’s derivative contracts with the same counterparty that provide for net settlement are reported on a net basis in the consolidated balance sheets.

Commodity Derivatives. The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil and natural gas. The Company seeks to manage this risk through the use of commodity derivative contracts. These derivative contracts allow the Company to limit its exposure to commodity price volatility on a portion of its forecasted oil and natural gas sales. None of the Company’s derivative contracts may be terminated prior to contractual maturity solely as a result of a downgrade in the credit rating of a party to the contract. At June 30, 2014, the Company’s commodity derivative contracts consisted of fixed price swaps and collars, which are described below:

Fixed price swaps	The Company receives a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume.
Collars	Two-way collars contain a fixed floor price (put) and a fixed ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, the Company receives the fixed price and pays the market price. If the market price is between the call and the put strike price, no payments are due from either party.
	Three-way collars have two fixed floor prices (a purchased put and a sold put) and a fixed ceiling price (call). The purchased put establishes a minimum price unless the market price falls below the sold put, at which point the minimum price would be New York Mercantile Exchange (“NYMEX”) plus the difference between the purchased put and the sold put strike price. The call establishes a maximum price (ceiling) the Company will receive for the volumes under the contract. If the market price is between the ceiling price and purchased put, no payments are due from either party.

Interest Rate Swaps. The Company is exposed to interest rate risk on its long-term fixed rate debt and will be exposed to variable interest rates if it draws on its senior credit facility. Fixed rate debt, where the interest rate is fixed over the life of the instrument, exposes the Company to (i) changes in market interest rates reflected in the fair value of the debt and (ii) the risk that the Company may need to refinance maturing debt with new debt at a higher rate. Variable rate debt, where the interest rate fluctuates, exposes the Company to short-term changes in market interest rates as the Company’s interest obligations on these instruments are periodically redetermined based on prevailing market interest rates, primarily LIBOR and the federal funds rate.

Prior to its maturity on April 1, 2013, the Company had a $350.0 million notional interest rate swap agreement which effectively fixed the variable interest rate on the Senior Floating Rate Notes due 2014 (“Senior Floating Rate Notes”) at an annual rate of 6.69% for periods prior to their repurchase and redemption in the third quarter of 2012. The interest rate swap was not designated as a hedge.

Derivatives Agreements with Royalty Trusts. The Company is party to derivatives agreements with the Mississippian Trust I, Permian Trust and Mississippian Trust II, respectively, that provide each Royalty Trust with the economic effect of certain oil and natural gas derivative contracts entered into by the Company with third parties. The underlying commodity derivative contracts cover volumes of oil and natural gas production through December 31, 2015, March 31, 2015 and December 31, 2014 for the Mississippian Trust I, Permian Trust and Mississippian Trust II, respectively. Under these arrangements, the Company pays the Royalty Trusts amounts it receives from its counterparties in accordance with the underlying contracts, and the Royalty Trusts pay the Company any amounts that the Company is required to pay its counterparties under such contracts.

In accordance with the terms of the respective derivatives agreements, the Company has novated certain of the derivative contracts underlying the derivatives agreements to each of the Permian Trust and the Mississippian Trust II. As a party to these contracts, the Permian Trust and the Mississippian Trust II receive payment directly from the counterparty and pay any amounts owed directly to the counterparty. To secure its obligations under the respective derivative contracts novated to it, each of the Permian Trust and the Mississippian Trust II granted the counterparties liens on the royalty interests held by each respective Royalty Trust. Under the derivatives agreements, as additional development wells are drilled for the benefit of the Permian Trust and the Mississippian Trust II, the Company has the right, under certain circumstances, to assign or novate to the Permian Trust and the Mississippian Trust II additional derivative contracts.

All contracts underlying the derivatives agreements with the Royalty Trusts, including those novated to the Permian Trust and the Mississippian Trust II, have been included in the Company’s consolidated derivative disclosures. See Note 4 for the Royalty Trusts’ open derivative contracts.

Fair Value of Derivatives. The following table presents the fair value of the Company’s derivative contracts as of June 30, 2014 and December 31, 2013 on a gross basis without regard to same-counterparty netting (in thousands):

Type of Contract	Balance Sheet Classification	June 30, 2014			December 31, 2013
Derivative assets
Oil price swaps	Derivative contracts-current	$	981		$	15,887
Natural gas price swaps	Derivative contracts-current	2,355			1,598
Oil collars - three way	Derivative contracts-current	—			706
Natural gas collars	Derivative contracts-current	135			177
Oil price swaps	Derivative contracts-noncurrent	1,412			19,376
Natural gas price swaps	Derivative contracts-noncurrent	224			—
Oil collars - three way	Derivative contracts-noncurrent	1,228			12,189
Natural gas collars	Derivative contracts-noncurrent	155			341
Derivative liabilities
Oil price swaps	Derivative contracts-current	(35,033		)	(38,396		)
Natural gas price swaps	Derivative contracts-current	(4,865		)	(1,460		)
Oil collars - three way	Derivative contracts-current	(20,186		)	—
Oil price swaps	Derivative contracts-noncurrent	(4,882		)	(38,344		)
Oil collars - three way	Derivative contracts-noncurrent	(844		)	—
Total net derivative contracts		$	(59,320	)	$	(27,926	)

See Note 5 for additional discussion of the fair value measurement of the Company’s derivative contracts.

Master Netting Agreements and the Right of Offset. The Company has master netting agreements with all of its derivative counterparties and has presented its derivative assets and liabilities with the same counterparty on a net basis in the consolidated balance sheets. As a result of the netting provisions, the Company's maximum amount of loss under derivative transactions due to credit risk is limited to the net amounts due from its counterparties. As of June 30, 2014, the counterparties to the Company’s open derivative contracts consisted of 9 financial institutions, all of which are also lenders under the Company’s senior credit facility. The Company is not required to post additional collateral under its derivative contracts as the majority of the counterparties to the Company’s derivative contracts share in the collateral supporting the Company’s senior credit facility. To secure their obligations under the derivative contracts novated by the Company, the Permian Trust and the Mississippian Trust II have each given the counterparties to such contracts a lien on its royalty interests. The following tables summarize (i) the Company's derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative liability positions, the applicable portion of shared collateral under the senior credit facility (for SandRidge's derivative contracts) and under liens granted on royalty interests (for the Permian Trust’s and the Mississippian Trust II’s novated derivative contracts) (in thousands):

June 30, 2014

	Gross Amounts		Gross Amounts Offset			Amounts Net of Offset		Financial Collateral			Net Amount
Assets
Derivative contracts - current	$	3,471	$	(3,356	)	$	115	$	—		$	115
Derivative contracts - noncurrent	3,019		(193		)	2,826		—			2,826
Total	$	6,490	$	(3,549	)	$	2,941	$	—		$	2,941
Liabilities
Derivative contracts - current	$	60,084	$	(3,356	)	$	56,728	$	(56,728	)	$	—
Derivative contracts - noncurrent	5,726		(193		)	5,533		(5,533		)	—
Total	$	65,810	$	(3,549	)	$	62,261	$	(62,261	)	$	—

December 31, 2013

	Gross Amounts		Gross Amounts Offset			Amounts Net of Offset		Financial Collateral			Net Amount
Assets
Derivative contracts - current	$	18,368	$	(5,589	)	$	12,779	$	—		$	12,779
Derivative contracts - noncurrent	31,906		(17,780		)	14,126		—			14,126
Total	$	50,274	$	(23,369	)	$	26,905	$	—		$	26,905
Liabilities
Derivative contracts - current	$	39,856	$	(5,589	)	$	34,267	$	(34,267	)	$	—
Derivative contracts - noncurrent	38,344		(17,780		)	20,564		(20,564		)	—
Total	$	78,200	$	(23,369	)	$	54,831	$	(54,831	)	$	—

The Company recorded a loss (gain) on commodity derivative contracts of $85.3 million and $(103.7) million for the three-month periods ended June 30, 2014 and 2013, respectively, as reflected in the accompanying unaudited condensed consolidated statements of operations, which includes net cash payments (receipts) upon settlement of $13.1 million and $(18.1) million, respectively. The Company recorded a loss (gain) on commodity derivative contracts of $127.8 million and $(62.8) million for the six-month periods ended June 30, 2014, and 2013, respectively, which includes net cash payments upon settlement of $96.4 million and $0.3 million, respectively. Included in these net cash payments are $69.6 million and $29.0 million of cash payments related to settlements of commodity derivative contracts with contractual maturities after the period in which they were settled (“early settlements”) primarily as a result of the sale of the Gulf Properties in February 2014 and the Permian Properties in February 2013, respectively.

At June 30, 2014, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	2,054	$	99.08
January 2015 - December 2015	5,588	$	92.44

Natural Gas Price Swaps

	Notional (MMcf)	Weighted Average Fixed Price
July 2014 - December 2014	24,840	$	4.28
January 2015 - December 2015	15,400	$	4.50

Oil Collars - Three-way

	Notional (MBbls)	Sold Put	Purchased Put	Sold Call
July 2014 - December 2014	4,140	$70.00	$90.20	$100.00
January 2015 - December 2015	3,656	$74.83	$90.35	$103.50

Natural Gas Collars

	Notional (MMcf)	Collar Range
July 2014 - December 2014	472	$4.00	—	$7.78
January 2015 - December 2015	1,010	$4.00	—	$8.55

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Fair Value Measurements - Reconciliation of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Details) (Commodity derivative contracts, USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Commodity derivative contracts
Level 3 Fair Value Measurements - Commodity Derivative Contracts
Beginning balance	$ (211)	$ (512)
Gain (loss) on derivative contracts	740	(133)
Settlements (received) paid	(529)	645
Ending balance	$ 0	$ 0

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Equity - Additional Information (Details) (USD $) Share data in Thousands, unless otherwise specified	1 Months Ended	6 Months Ended	3 Months Ended		6 Months Ended
	Oct. 31, 2013	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2013	Dec. 31, 2013
Equity Disclosure
Retirement of treasury stock		$ 0
Stockholder settlement gross	5,000,000
Additional paid-in capital—stockholder receivable		(3,750,000)	(3,750,000)			(3,750,000)
Restricted Stock
Equity Disclosure
Stock-based compensation		13,500,000	6,100,000	51,700,000	70,700,000
Stock-based compensation, capitalized		3,000,000	1,800,000	1,300,000	2,900,000
Restricted Stock | Separation of Former Executives
Equity Disclosure
Stock-based compensation				40,900,000	48,500,000
Treasury Stock
Equity Disclosure
Retirement of treasury stock (in shares)		637			5,107
Retirement of treasury stock		$ (3,865,000)			$ (27,196,000)
8.5% Convertible perpetual preferred stock
Equity Disclosure
Preferred stock, dividend rate, percentage		8.50%
6.0% Convertible perpetual preferred stock
Equity Disclosure
Preferred stock, dividend rate, percentage		6.00%
7.0% Convertible perpetual preferred stock
Equity Disclosure
Preferred stock, dividend rate, percentage		7.00%

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Fair Value Measurements - Estimated Fair Value and Carrying Value of Senior Notes (Parenthetical) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
8.75% Senior Notes due 2020
Fair Value, Assets and Liabilities Measured on Recurring Basis
Long-term debt, fixed interest rate	8.75%	8.75%
Debt maturity date	2020	2020
Long-term debt, discount	$ 4,938	$ 5,264
7.5% Senior Notes due 2021
Fair Value, Assets and Liabilities Measured on Recurring Basis
Long-term debt, fixed interest rate	7.50%	7.50%
Debt maturity date	2021	2021
Long term debt, premium	3,708	3,922
8.125% Senior Notes due 2022
Fair Value, Assets and Liabilities Measured on Recurring Basis
Long-term debt, fixed interest rate	8.125%	8.125%
Debt maturity date	2022	2022
7.5% Senior Notes due 2023
Fair Value, Assets and Liabilities Measured on Recurring Basis
Long-term debt, fixed interest rate	7.50%	7.50%
Debt maturity date	2023	2023
Long-term debt, discount	$ 3,605	$ 3,751

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Fair Value Measurements - Reconciliation of Financial Liabilities Measured at Fair Value on Recurring Basis using Unobservable Inputs (Details) (Guarantees, USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014		Jun. 30, 2014
Guarantees
Level 3 Fair Value Measurements - Guarantees
Beginning balance	$ 9,480		$ 0
Issuances(1)	0	[1]	9,446	[1]
Loss on guarantees	2,548		2,582
Ending balance	$ 12,028		$ 12,028

[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.

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Performance Units - Additional Information (Details) (Performance Units, USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Employee Compensation Plans
Performance units, vesting period (in years)	3 years
Performance units, payout performance below minimum target threshold	$ 0
Performance units liability	$ 3,800,000	$ 1,800,000
Minimum
Employee Compensation Plans
Performance units, payout percentages of target values	50.00%
Maximum
Employee Compensation Plans
Performance units, payout percentages of target values	200.00%

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consists of the following (in thousands):

	June 30, 2014		December 31, 2013
Senior credit facility	$	—	$	—
Senior notes
8.75% Senior Notes due 2020, net of $4,938 and $5,264 discount, respectively	445,062		444,736
7.5% Senior Notes due 2021, including premium of $3,708 and $3,922, respectively	1,178,708		1,178,922
8.125% Senior Notes due 2022	750,000		750,000
7.5% Senior Notes due 2023, net of $3,605 and $3,751 discount, respectively	821,395		821,249
Total debt	3,195,165		3,194,907
Less: current maturities of long-term debt	—		—
Long-term debt	$	3,195,165	$	3,194,907

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Variable Interest Entities - Royalty Trusts - Outstanding Units (Details)	1 Months Ended
	Apr. 30, 2011		Aug. 31, 2011		Apr. 30, 2012
Mississippian Trust I
Variable Interest Entity
Total outstanding common units (in shares)	21,000,000
Total outstanding subordinated units (in shares)	7,000,000
Liquidation date(1)	Dec. 31, 2030	[1]
Permian Trust
Variable Interest Entity
Total outstanding common units (in shares)			39,375,000
Total outstanding subordinated units (in shares)			13,125,000
Liquidation date(1)			Mar. 31, 2031	[1]
Mississippian Trust II
Variable Interest Entity
Total outstanding common units (in shares)					37,293,750
Total outstanding subordinated units (in shares)					12,431,250
Liquidation date(1)					Dec. 31, 2031	[1]

[1] At the time each Royalty Trust terminates, 50% of the royalty interests conveyed to the Royalty Trust will automatically revert to the Company, and the remaining 50% will be sold with the proceeds distributed to the Royalty Trust unitholders.

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Earnings (Loss) per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings (Loss) per Share

Earnings (Loss) per Share

The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted loss per share, for the three and six-month periods ended June 30, 2014 and 2013:

	Net Loss			Weighted Average Shares		Loss Per Share
	(In thousands, except per share amounts)
Three Months Ended June 30, 2014 (Restated)
Basic loss per share	$	(46,775	)	485,318		$	(0.10	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(46,775	)	485,318		$	(0.10	)
Three Months Ended June 30, 2013 (Restated)
Basic loss per share	$	(42,389	)	$	479,154	$	(0.09	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(42,389	)	479,154		$	(0.09	)
Six Months Ended June 30, 2014 (Restated)
Basic loss per share	$	(196,993	)	485,059		$	(0.41	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(196,993	)	485,059		$	(0.41	)
Six Months Ended June 30, 2013 (Restated)
Basic loss per share	$	(543,567	)	478,494		$	(1.14	)
Effect of dilutive securities
Restricted stock(1)	—			—
Convertible preferred stock(2)	—			—
Diluted loss per share	$	(543,567	)	478,494		$	(1.14	)

____________________

(1) Restricted stock awards covering 2.0 million and 2.6 million shares for the three and six-month periods ended June 30, 2014, respectively, and 0.2 million and 3.6 million shares for the three and six-month periods ended June 30, 2013, respectively, were excluded from the computation of loss per share because their effect would have been antidilutive.

(2) Potential common shares related to the Company’s outstanding 8.5%, 6.0% and 7.0% convertible perpetual preferred stock covering 90.1 million shares for the three and six-month periods ended June 30, 2014 and 2013 were excluded from the computation of loss per share because their effect would have been antidilutive under the if-converted method.

See Note 13 for discussion of preferred stock dividends.

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Subsequent Events

6 Months Ended

Jun. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Royalty Trust Distributions. On July 31, 2014, the Royalty Trusts announced quarterly distributions for the three-month period ended June 30, 2014. The following distributions are expected to be paid on or before August 29, 2014 to holders of record as of the close of business on August 14, 2014 (in thousands):

Royalty Trust	Total Distribution		Amount to be Distributed to Third-Party Unitholders
Mississippian Trust I	$	7,512	$	7,323
Permian Trust	30,555		24,885
Mississippian Trust II	18,125		15,090
Total	$	56,192	$	47,298

Conversion of Mississippian Trust I Subordinated Units. On July 1, 2014, the Mississippian Trust I’s subordinated units, all of which were held by SandRidge, converted to common units. The newly-converted units remain subject to the distribution subordination thresholds through the Mississippian Trust I’s August 29, 2014 distribution; however, beginning with the distribution to be made in November 2014, all of the Mississippian Trust I’s common units will share equally in its distribution. After this conversion, the Company will continue to consolidate the activities of the Mississippian Trust I as its primary beneficiary 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.

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Condensed Consolidating Financial Information - Unaudited Condensed Consolidating Balance Sheets of SandRidge Energy, Inc. and Wholly Owned Subsidiary Guarantors and Non-Guarantors (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013		Jun. 30, 2013	Dec. 31, 2012
Current assets
Cash and cash equivalents	$ 918,758		$ 814,663		$ 1,094,341	$ 309,766
Accounts receivable, net	333,300		349,218
Intercompany accounts receivable	0		0
Derivative contracts	115		12,779
Prepaid expenses	12,337		39,253
Other current assets	25,106		25,910
Total current assets	1,289,616		1,241,823
Property, plant and equipment, net	5,541,819		6,307,675
Investment in subsidiaries	0		0
Derivative contracts	2,826		14,126
Other assets	78,558		121,171
Total assets	6,912,819		7,684,795
Current liabilities
Accounts payable and accrued expenses	648,434	[1]	812,488
Intercompany accounts payable	0		0
Derivative contracts	56,728		34,267
Asset retirement obligations	0		87,063
Other current liabilities	19,171		0
Total current liabilities	724,333		933,818
Investment in subsidiaries	0		0
Long-term debt	3,195,165		3,194,907
Derivative contracts	5,533		20,564
Asset retirement obligations	55,210		337,054
Other long-term obligations	19,152		22,825
Total liabilities	3,999,393		4,509,168
Equity
Total SandRidge Energy, Inc. stockholders’ equity	1,639,807		1,825,810
Noncontrolling interest	1,273,619		1,349,817
Total equity	2,913,426		3,175,627
Total liabilities and equity	6,912,819		7,684,795
Parent
Current assets
Cash and cash equivalents	910,633		805,505		1,085,423	300,228
Accounts receivable, net	0		0
Intercompany accounts receivable	278,510		153,325
Derivative contracts	0		0
Prepaid expenses	0		0
Other current assets	1,388		1,376
Total current assets	1,190,531		960,206
Property, plant and equipment, net	0		0
Investment in subsidiaries	6,010,522		6,009,603	[2]
Derivative contracts	0		0
Other assets	64,364		61,923
Total assets	7,265,417		7,031,732
Current liabilities
Accounts payable and accrued expenses	201,911		207,572
Intercompany accounts payable	1,341,438		967,365
Derivative contracts	0		0
Asset retirement obligations			0
Other current liabilities	7,144
Total current liabilities	1,550,493		1,174,937
Investment in subsidiaries	873,956		828,794	[2]
Long-term debt	3,201,067		3,200,809
Derivative contracts	0		0
Asset retirement obligations	0		0
Other long-term obligations	94		1,382
Total liabilities	5,625,610		5,205,922
Equity
Total SandRidge Energy, Inc. stockholders’ equity	1,639,807		1,825,810
Noncontrolling interest	0		0
Total equity	1,639,807		1,825,810	[2]
Total liabilities and equity	7,265,417		7,031,732
Guarantors
Current assets
Cash and cash equivalents	1,249		1,013		1,379	922
Accounts receivable, net	315,004		326,345
Intercompany accounts receivable	1,347,065		982,524
Derivative contracts	2,179		7,796
Prepaid expenses	12,345		39,165
Other current assets	23,703		24,410
Total current assets	1,701,545		1,381,253
Property, plant and equipment, net	4,435,593		5,125,543	[3]
Investment in subsidiaries	18,366		49,418	[3]
Derivative contracts	3,473		12,650
Other assets	20,077		65,123
Total assets	6,179,054		6,633,987
Current liabilities
Accounts payable and accrued expenses	442,744	[1]	601,074
Intercompany accounts payable	303,834		181,573
Derivative contracts	55,875		44,032
Asset retirement obligations			87,063
Other current liabilities	12,027
Total current liabilities	814,480		913,742
Investment in subsidiaries	146,639		152,266	[3]
Long-term debt	0		0
Derivative contracts	7,101		28,673
Asset retirement obligations	55,210		337,054
Other long-term obligations	19,058		21,443
Total liabilities	1,042,488		1,453,178
Equity
Total SandRidge Energy, Inc. stockholders’ equity	5,136,566		5,180,809
Noncontrolling interest	0		0
Total equity	5,136,566		5,180,809	[3]
Total liabilities and equity	6,179,054		6,633,987
Non-Guarantors
Current assets
Cash and cash equivalents	6,876		8,145		7,539	8,616
Accounts receivable, net	18,296		22,873
Intercompany accounts receivable	57,708		70,107
Derivative contracts	115		14,748
Prepaid expenses	0		88
Other current assets	15		124
Total current assets	83,010		116,085
Property, plant and equipment, net	1,106,226		1,182,132
Investment in subsidiaries	0		0
Derivative contracts	1,568		9,585
Other assets	19		27
Total assets	1,190,823		1,307,829
Current liabilities
Accounts payable and accrued expenses	3,787		3,842
Intercompany accounts payable	38,011		57,018
Derivative contracts	3,032		0
Asset retirement obligations			0
Other current liabilities	0
Total current liabilities	44,830		60,860
Investment in subsidiaries	0		0
Long-term debt	0		0
Derivative contracts	647		0
Asset retirement obligations	0		0
Other long-term obligations	0		0
Total liabilities	45,477		60,860
Equity
Total SandRidge Energy, Inc. stockholders’ equity	1,145,346		1,246,969
Noncontrolling interest	0		0
Total equity	1,145,346		1,246,969
Total liabilities and equity	1,190,823		1,307,829
Eliminations
Current assets
Cash and cash equivalents	0		0		0	0
Accounts receivable, net	0		0
Intercompany accounts receivable	(1,683,283)		(1,205,956)
Derivative contracts	(2,179)		(9,765)
Prepaid expenses	(8)		0
Other current assets	0		0
Total current assets	(1,685,470)		(1,215,721)
Property, plant and equipment, net	0		0
Investment in subsidiaries	(6,028,888)		(6,059,021)	[2],[3]
Derivative contracts	(2,215)		(8,109)
Other assets	(5,902)		(5,902)
Total assets	(7,722,475)		(7,288,753)
Current liabilities
Accounts payable and accrued expenses	(8)		0
Intercompany accounts payable	(1,683,283)		(1,205,956)
Derivative contracts	(2,179)		(9,765)
Asset retirement obligations			0
Other current liabilities	0
Total current liabilities	(1,685,470)		(1,215,721)
Investment in subsidiaries	(1,020,595)		(981,060)	[2],[3]
Long-term debt	(5,902)		(5,902)
Derivative contracts	(2,215)		(8,109)
Asset retirement obligations	0		0
Other long-term obligations	0		0
Total liabilities	(2,714,182)		(2,210,792)
Equity
Total SandRidge Energy, Inc. stockholders’ equity	(6,281,912)		(6,427,778)
Noncontrolling interest	1,273,619		1,349,817
Total equity	(5,008,293)		(5,077,961)	[2],[3]
Total liabilities and equity	$ (7,722,475)		$ (7,288,753)

[1] Guarantor and Consolidated accounts payable and accrued expenses have been restated to reflect accrual of the CO2 shortfall penalty. See Note 2.

[2] Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $828.8 million, as liabilities and to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to Guarantor full cost pool (property, plant and equipment, net) and a reduction to Parent equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

[3] Amounts presented as Investment in subsidiaries have been revised to present negative investments in certain subsidiaries, totaling $152.3 million, as liabilities. Property, plant and equipment, net has been revised to present $55.6 million Parent gain on sale of subsidiary with full cost pool assets in 2012 as a reduction to the Guarantor full cost pool (property, plant and equipment, net) and a reduction to Guarantor equity. Gain on sale of subsidiary was previously classified as an adjustment to the consolidated full cost pool through elimination in the condensed consolidating balance sheets. The impact of these revisions was not material to any previously issued financial statements.

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Divestitures - Gulf Properties Disposal - Revenue and Expense Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Disposal, Revenue and Expense Information
Revenues	$ 374,714		$ 512,987		$ 817,770		$ 1,024,677
Expenses	332,635	[1]	434,601	[1]	858,021	[1]	1,313,773	[1]
Gulf Properties
Disposal, Revenue and Expense Information
Revenues			170,219		90,920	[2]	345,275
Expenses			$ 122,222		$ 63,674	[2]	$ 251,392

[1] Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2.

[2] Includes revenues and expenses through February 25, 2014, the date of the sale.

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Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Summarized Financial Information Concerning Segments

Summarized financial information concerning the Company’s segments is shown in the following table (in thousands):

	Exploration and Production(1)			Drilling and Oil Field Services(2)			Midstream Services			All Other			Consolidated Total
Three Months Ended June 30, 2014 (Restated)
Revenues	$	339,906		$	51,891		$	38,420		$	1,105		$	431,322
Inter-segment revenue	—			(33,062		)	(23,546		)	—			(56,608		)
Total revenues	$	339,906		$	18,829		$	14,874		$	1,105		$	374,714
Income (loss) from operations(3)	$	69,782		$	(2,347	)	$	(2,345	)	$	(23,011	)	$	42,079
Interest expense	(4		)	—			—			(61,859		)	(61,863		)
Other (expense) income, net	(49		)	(75		)	—			1,462			1,338
Income (loss) before income taxes(3)	$	69,729		$	(2,422	)	$	(2,345	)	$	(83,408	)	$	(18,446	)
Capital expenditures(4)	$	356,568		$	6,654		$	5,808		$	7,907		$	376,937
Depreciation, depletion, amortization, accretion and impairment	$	98,357		$	10,794		$	2,509		$	5,216		$	116,876
Three Months Ended June 30, 2013 (Restated)
Revenues	$	458,374		$	47,100		$	64,291		$	778		$	570,543
Inter-segment revenue	(81		)	(31,011		)	(26,464		)	—			(57,556		)
Total revenues	$	458,293		$	16,089		$	37,827		$	778		$	512,987
Income (loss) from operations(3)	$	233,594		$	(19,443	)	$	(7,956	)	$	(127,809	)	$	78,386
Interest income (expense)	317			—			(84		)	(61,392		)	(61,159		)
Other (expense) income, net	(330		)	—			135			89			(106		)
Income (loss) before income taxes(3)	$	233,581		$	(19,443	)	$	(7,905	)	$	(189,112	)	$	17,121
Capital expenditures(4)	$	358,582		$	883		$	15,111		$	12,582		$	387,158
Depreciation, depletion, amortization, accretion and impairment	$	148,884		$	19,478		$	4,017		$	7,989		$	180,368
Six Months Ended June 30, 2014 (Restated)
Revenues	$	747,244		$	98,971		$	84,715		$	2,075		$	933,005
Inter-segment revenue	—			(63,039		)	(52,196		)	—			(115,235		)
Total revenues	$	747,244		$	35,932		$	32,519		$	2,075		$	817,770
Income (loss) from operations(3)	$	13,306		$	(5,449	)	$	(3,756	)	$	(44,352	)	$	(40,251	)
Interest income (expense), net	139			—			—			(124,045		)	(123,906		)
Other (expense) income, net	(234		)	(473		)	—			4,139			3,432
Income (loss) before income taxes(3)	$	13,211		$	(5,922	)	$	(3,756	)	$	(164,258	)	$	(160,725	)
Capital expenditures(4)	$	620,809		$	7,275		$	11,766		$	12,860		$	652,710
Depreciation, depletion, amortization, accretion and impairment	$	384,176		$	18,506		$	4,950		$	10,476		$	418,108
At June 30, 2014 (Restated)
Total assets	$	5,288,478		$	142,858		$	193,867		$	1,287,616		$	6,912,819

	Exploration and Production(1)			Drilling and Oil Field Services(2)			Midstream Services			All Other			Consolidated Total
Six Months Ended June 30, 2013 (Restated)
Revenues	$	939,784		$	96,837		$	101,125		$	1,631		$	1,139,377
Inter-segment revenue	(162		)	(63,378		)	(51,160		)	—			(114,700		)
Total revenues	$	939,622		$	33,459		$	49,965		$	1,631		$	1,024,677
Loss from operations(3)	$	(76,070	)	$	(28,408	)	$	(10,415	)	$	(174,203	)	$	(289,096	)
Interest income (expense), net	635			—			(209		)	(147,495		)	(147,069		)
Loss on extinguishment of debt	—			—			—			(82,005		)	(82,005		)
Other income (expense), net	298			—			(664		)	871			505
Loss before income taxes(3)	$	(75,137	)	$	(28,408	)	$	(11,288	)	$	(402,832	)	$	(517,665	)
Capital expenditures(4)	$	716,173		$	1,515		$	30,332		$	27,850		$	775,870
Depreciation, depletion, amortization, accretion and impairment	$	316,397		$	28,292		$	5,705		$	12,615		$	363,009
At December 31, 2013
Total assets	$	6,157,225		$	158,737		$	188,165		$	1,180,668		$	7,684,795

____________________

(1) Income (loss) from operations includes a full cost ceiling limitation impairment of $164.8 million for the six-month period ended June 30, 2014, and a loss on the sale of the Permian Properties of $399.1 million for the six-month period ended June 30, 2013.

(2) Income (loss) from operations includes an impairment of $3.1 million and $10.6 million on certain drilling assets held for sale for the three and six-month periods ended June 30, 2014 and 2013, respectively.

(3) Loss from operations and loss before income taxes have been restated for the Exploration and Production segment and the Consolidated Total to reflect the impact of the accrual of the CO₂ delivery shortfall penalty attributable to the three and six-month periods ended June 30, 2014 and 2013. See Note 2.

(4) On an accrual basis and exclusive of acquisitions.

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) In Thousands, unless otherwise specified	Total		Convertible Perpetual Preferred Stock	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Non-controlling Interest
Beginning Balance at Dec. 31, 2013	$ 3,175,627		$ 8	$ 483	$ 5,294,551	$ (8,770)	$ (3,460,462)	$ 1,349,817
Beginning Balance (in shares) at Dec. 31, 2013	490,290			490,290
Beginning Balance (in shares) at Dec. 31, 2013			7,650
Increase (Decrease) in Stockholders' Equity
Acquisition of ownership interest	(2,730)				(2,074)			(656)
Sale of royalty trust units	22,119				4,091			18,028
Distributions to noncontrolling interest owners	(103,142)							(103,142)
Purchase of treasury stock	(3,865)					(3,865)
Retirement of treasury stock	0				(3,865)	3,865
Stock distributions, net of purchases - retirement plans (in shares)				178
Stock distributions, net of purchases - retirement plans	(663)				(2,138)	1,475
Stock-based compensation	13,499				13,499
Stock-based compensation excess tax benefit	2				2
Issuance of restricted stock awards, net of cancellations (in shares)				4,078
Issuance of restricted stock awards, net of cancellations	0			2	(2)
Net (loss) income	(159,658)	[1]					(169,230)	9,572
Convertible perpetual preferred stock dividends	(27,763)						(27,763)
Ending Balance at Jun. 30, 2014	$ 2,913,426		$ 8	$ 485	$ 5,304,064	$ (7,295)	$ (3,657,455)	$ 1,273,619
Ending Balance (in shares) at Jun. 30, 2014	494,546			494,546
Ending Balance (in shares) at Jun. 30, 2014			7,650

[1] Guarantor and Consolidated direct operating expenses have been restated to reflect accrual of the CO2 delivery shortfall penalty. See Note 2.

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Earnings (Loss) per Share - Calculation of Weighted Average Common Shares Outstanding used in Computation of Diluted Earnings (Loss) Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Earnings Per Share [Abstract]
Net Loss, Basic	$ (46,775)		$ (42,389)		$ (196,993)		$ (543,567)
Weighted average shares, basic (in shares)	485,318		479,154		485,059		478,494
Loss Per Share, Basic	$ (0.10)		$ (0.09)		$ (0.41)		$ (1.14)
Effect of dilutive securities
Restricted stock (in dollars)	0	[1]	0	[1]	0	[1]	0	[1]
Restricted stock (in shares)	0	[1]	0	[1]	0	[1]	0	[1]
Convertible preferred stock (in dollars)	0	[2]	0	[2]	0	[2]	0	[2]
Convertible preferred stock (in shares)	0	[2]	0	[2]	0	[2]	0	[2]
Net Loss, Diluted	$ (46,775)		$ (42,389)		$ (196,993)		$ (543,567)
Weighted average shares, diluted (in shares)	485,318		479,154		485,059		478,494
Loss Per Share, Diluted	$ (0.10)		$ (0.09)		$ (0.41)		$ (1.14)

[1] Restricted stock awards covering 2.0 million and 2.6 million shares for the three and six-month periods ended June 30, 2014, respectively, and 0.2 million and 3.6 million shares for the three and six-month periods ended June 30, 2013, respectively, were excluded from the computation of loss per share because their effect would have been antidilutive.

[2] Potential common shares related to the Company’s outstanding 8.5%, 6.0% and 7.0% convertible perpetual preferred stock covering 90.1 million shares for the three and six-month periods ended June 30, 2014 and 2013 were excluded from the computation of loss per share because their effect would have been antidilutive under the if-converted method.

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Variable Interest Entities

6 Months Ended

Jun. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Variable Interest Entities

The Company’s significant associated VIEs, including those for which the Company has determined it is the primary beneficiary and those for which it has determined it is not, are described below.

Royalty Trusts. SandRidge owns beneficial interests in three Delaware statutory trusts. SandRidge Mississippian Trust I (the “Mississippian Trust I”), the Permian Trust and SandRidge Mississippian Trust II (the “Mississippian Trust II”) (each individually, a “Royalty Trust” and collectively, the “Royalty Trusts”) completed initial public offerings of their common units in April 2011, August 2011 and April 2012, respectively. Concurrent with the closing of each offering, the Company conveyed certain royalty interests to each Royalty Trust in exchange for the net proceeds of the offering and units representing beneficial interests in the Royalty Trust. Royalty interests conveyed to the Royalty Trusts are in existing wells and wells to be drilled on oil and natural gas properties leased by the Company in defined areas of mutual interest. The following table summarizes information about each Royalty Trust:

	Mississippian Trust I	Permian Trust	Mississippian Trust II
Total outstanding common units	21,000,000	39,375,000	37,293,750
Total outstanding subordinated units	7,000,000	13,125,000	12,431,250
Liquidation date(1)	12/31/2030	3/31/2031	12/31/2031

____________________

(1) At the time each Royalty Trust terminates, 50% of the royalty interests conveyed to the Royalty Trust will automatically revert to the Company, and the remaining 50% will be sold with the proceeds distributed to the Royalty Trust unitholders.

The Royalty Trusts make quarterly cash distributions to unitholders based on calculated distributable income. In order to provide support for cash distributions on the common units, the Company agreed to subordinate a portion of the units it owns in each Royalty Trust (the “subordinated units”), which constitute 25% of the total outstanding units of each Royalty Trust. The subordinated units are entitled to receive pro rata distributions from the Royalty Trusts each quarter if and to the extent there is sufficient cash to provide a cash distribution on the common units that is no less than the applicable quarterly subordination threshold. If there is not sufficient cash to fund such a distribution on all common units, the distribution made with respect to the subordinated units is reduced or eliminated for such quarter in order to make a distribution, to the extent possible, of up to the subordination threshold amount on all common units, including common units held by the Company. In exchange for agreeing to subordinate a portion of its Royalty Trust units, SandRidge is entitled to receive incentive distributions equal to 50% of the amount by which the cash available for distribution on all of the Royalty Trust units exceeds the applicable quarterly incentive threshold.

The Royalty Trusts declared and paid quarterly distributions during the three and six-month periods ended June 30, 2014 and 2013 as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014(1)		2013		2014(2)		2013
Total distributions	$	59,672	$	68,449	$	127,985	$	144,810
Distributions to third-party unitholders	$	50,024	$	47,459	$	103,142	$	98,716

____________________

(1) Subordination thresholds were not met for the Mississippian Trust I’s and Mississippian Trust II’s distributions, resulting in reduced distributions to the Company on its subordinated units for this period.

(2) Subordination thresholds were not met for the Mississippian Trust I’s distributions, resulting in reduced distributions to the Company on its subordinated units for this period.

See Note 20 for discussion of the Royalty Trusts’ distributions announced in July 2014.

Pursuant to the trust agreements governing the Royalty Trusts, SandRidge has committed to loan funds to the each Royalty Trust on an unsecured basis, with terms substantially the same as would be obtained in an arm’s length transaction between SandRidge and an unaffiliated party, if at any time the Royalty Trust’s cash is not sufficient to pay ordinary course administrative expenses as they become due. Any funds loaned may not be used to satisfy indebtedness of the Royalty Trust or to make distributions. There were no amounts outstanding under the loan commitments at June 30, 2014 or December 31, 2013.

The Company and one of its wholly owned subsidiaries entered into a development agreement with each Royalty Trust that obligates the Company to drill, or cause to be drilled, a specified number of wells within respective areas of mutual interest, which arealso subject to the royalty interests granted to the Mississippian Trust I, the Permian Trust and the Mississippian Trust II, by December 31, 2015, March 31, 2016 and December 31, 2016, respectively. Following the end of the fourth full calendar quarter subsequent to the Company’s satisfaction of its drilling obligation (the “subordination period”), the subordinated units of each Royalty Trust will automatically convert into common units on a one-for-one basis and the Company’s right to receive incentive distributions will terminate. One of the Company’s wholly owned subsidiaries also granted to each Royalty Trust a lien on the Company’s interests in the properties where the development wells will be drilled in order to secure the estimated amount of drilling costs for the Royalty Trust’s interests in the wells. As the Company fulfills its drilling obligation to each Royalty Trust, development wells that have been drilled and perforated for completion are released from the lien and the total amount that may be recovered by each Royalty Trust is proportionately reduced. As of June 30, 2014, the total maximum amount recoverable by the Permian Trust and the Mississippian Trust II under the remaining liens was approximately $48.2 million. The Company fulfilled its drilling obligation to the Mississippian Trust I in the second quarter of 2013 and the related lien was released. See Note 20 for discussion of the conversion of Mississippian Trust I subordinated units to common units.

Additionally, the Company and each Royalty Trust entered into an administrative services agreement, pursuant to which the Company provides certain administrative services to the Royalty Trust, including hedge management services to the Permian Trust and the Mississippian Trust II. The Company also entered into derivatives agreements with each Royalty Trust, pursuant to which the Company provides to the Royalty Trust the economic effects of certain of the Company’s derivative contracts. Substantially concurrent with the execution of the derivatives agreements with the Permian Trust and the Mississippian Trust II, the Company novated certain of the derivative contracts underlying the respective derivatives agreements to each of these Royalty Trusts. The Company novated additional derivative contracts underlying the derivatives agreements to the Permian Trust in April 2012 and to the Permian Trust and the Mississippian Trust II in March 2013. The tables below present the open oil and natural gas commodity derivative contracts at June 30, 2014 underlying the derivatives agreements. The combined volume in the tables below reflects the total volume of the Royalty Trusts’ open oil and natural gas commodity derivative contracts.

Oil Price SwapsUnderlying the Royalty Trust Derivatives Agreements

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	823	$	101.01
January 2015 - December 2015	904	$	97.78

Natural Gas Collars Underlying the Royalty Trust Derivatives Agreements

	Notional (MMcf)	Collar Range
July 2014 - December 2014	472	$	4.00	—	$	7.78
January 2015 - December 2015	1,010	$	4.00	—	$	8.55

Oil Price Swaps Underlying the Derivatives Agreements and Novated to the Royalty Trusts

	Notional (MBbls)	Weighted Average Fixed Price
July 2014 - December 2014	473	$	100.76
January 2015 - March 2015	141	$	100.90

See Note 10 for further discussion of the derivatives agreement between the Company and each Royalty Trust.

The Royalty Trusts are considered VIEs due to the lack of voting or similar decision-making rights of the Royalty Trusts’ equity holders regarding activities that have a significant effect on the economic success of the Royalty Trusts. The Company has determined it is the primary beneficiary of the Royalty Trusts as it has (a) the power to direct the activities that most significantly impact the economic performance of the Royalty Trusts through (i) its participation in the creation and structure of the Royalty Trusts, (ii) the manner in which it fulfills its drilling obligations to the Royalty Trusts and (iii) its operation of a majority of the oil and natural gas properties that are subject to the conveyed royalty interests and marketing of the associated production and (b) the obligation to absorb losses and right to receive residual returns, through its variable interests in the Royalty Trusts, including ownership of common and subordinated units, that could potentially be significant to the Royalty Trusts. As a result, the Company consolidates the activities of the Royalty Trusts into its results of operations. Amounts attributable to the common units of the Royalty Trusts owned by third parties are reflected as noncontrolling interest in the consolidated financial statements.

Each Royalty Trust’s assets can be used to settle only that Royalty Trust’s obligations and not other obligations of the Company or another Royalty Trust. The Royalty Trusts’ creditors have no contractual recourse to the general credit of the Company. Although the Royalty Trusts are included in the Company’s consolidated financial statements, the Company’s legal interest in the Royalty Trusts’ assets is limited to its ownership of the Royalty Trusts’ units. At both June 30, 2014 and December 31, 2013, $1.3 billion of noncontrolling interest in the accompanying unaudited condensed consolidated balance sheets was attributable to the Royalty Trusts. The Royalty Trusts’ assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheets at June 30, 2014 and December 31, 2013 consisted of the following (in thousands):

	June 30, 2014			December 31, 2013
Cash and cash equivalents(1)	$	6,722		$	7,912
Accounts receivable, net	18,887			22,540
Derivative contracts	—			4,983
Total current assets	25,609			35,435
Investment in royalty interests(2)	1,325,942			1,325,942
Less: accumulated depletion and impairment(3)	(258,186		)	(186,095		)
	1,067,756			1,139,847
Derivative contracts	—			1,476
Total assets	$	1,093,365		$	1,176,758
Accounts payable and accrued expenses	$	2,318		$	3,393
Derivative contracts, current	968			—
Total liabilities	$	3,286		$	3,393

____________________

(1) Includes $3.0 million held by the trustee at June 30, 2014 and December 31, 2013 as reserves for future general and administrative expenses.

(2) Investment in royalty interests is included in oil and natural gas properties in the accompanying unaudited condensed consolidated balance sheets.

(3) Accumulated depletion and impairment at June 30, 2014 includes full cost ceiling limitation impairment allocated to the Royalty Trusts of $42.3 million. There was no full cost ceiling limitation impairment allocated to the Royalty Trusts as of December 31, 2013.

During the six-month period ended June 30, 2014, the Company sold Permian Trust common units it owned in a transaction exempt from registration pursuant to Rule 144 under the Securities Act for proceeds of approximately $22.1 million. The sale was accounted for as an equity transaction with no gain or loss recognized. The Company continues to be the primary beneficiary of the Permian Trust after consideration of this transaction and continues to consolidate the activities of the Permian Trust as well as the activities of the Mississippian Trust I and Mississippian Trust II. The Company’s beneficial interests in the Royalty Trusts at June 30, 2014 and December 31, 2013 were as follows:

	June 30, 2014		December 31, 2013
Mississippian Trust I	26.9	%	26.9	%
Permian Trust	25.0	%	28.5	%
Mississippian Trust II	37.6	%	37.6	%

See Note 12 for discussion of the Company’s legal proceedings to which the Mississippian Trust I and Mississippian Trust II are also parties.

Grey Ranch Plant, L.P. Primarily engaged in treating and transportation of natural gas, Grey Ranch Plant, L.P. (“GRLP”) is a limited partnership that operated the Company’s Grey Ranch plant (the “Plant”) located in Pecos County, Texas. As of December 31, 2013, the Company owned a 50% interest in GRLP, which represented a variable interest. Income or loss of GRLP was allocated to the partners based on ownership percentage and any operating or cash shortfalls required contributions from the partners. The Company determined that GRLP qualified as a VIE because certain equity holders lacked the ability to participate in decisions impacting GRLP. Agreements related to the ownership and operation of GRLP provided for GRLP to pay management fees to the Company to operate the Plant and lease payments for the Plant. Under the operating agreements, lease payments were reduced if throughput volumes were below those expected. The Company determined that it was the primary beneficiary of GRLP as it had both (i) the power, as operator of the Plant, to direct the activities of GRLP that most significantly impact its economic performance and (ii) the obligation to absorb losses, as a result of the operating and gathering agreements, that could potentially be significant to GRLP and, therefore, consolidated the activity of GRLP in its consolidated financial statements. The 50% ownership interest not held by the Company as of December 31, 2013 is presented as noncontrolling interest in the accompanying unaudited condensed consolidated financial statements. In March 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 March 2014, GRLP’s assets could only be used to settle its own obligations and not other obligations of the Company and GRLP’s creditors had no recourse to the general credit of the Company. At December 31, 2013, $0.7 million of noncontrolling interest in the accompanying unaudited condensed consolidated balance sheet was related to GRLP. GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying unaudited condensed consolidated balance sheet at December 31, 2013 consisted of the following (in thousands):

	December 31, 2013
Cash and cash equivalents	$	132
Accounts receivable, net	16
Prepaid expenses	32
Other current assets	109
Total current assets	289
Other property, plant and equipment, net	1,163
Total assets	$	1,452
Accounts payable and accrued expenses	$	129
Total liabilities	$	129

Grey Ranch Plant Genpar, LLC. As of December 31, 2013, the Company owned a 50% interest in Grey Ranch Plant Genpar, LLC (“Genpar”), the managing partner and 1% owner of GRLP. The Company served as Genpar’s administrative manager. Genpar’s ownership interest in GRLP was its only asset. As managing partner of GRLP, Genpar had the sole right to manage, control and conduct the business of GRLP. However, Genpar was restricted from making certain major decisions, including the decision to remove the Company as operator of the Plant. The rights afforded the Company under the Plant operating agreement and the restrictions on Genpar limited Genpar’s ability to make decisions on behalf of GRLP. Therefore, Genpar was considered a VIE. Although both the Company and Genpar’s other equity owner shared equally in Genpar’s economic losses and benefits and also had agreements that may be considered variable interests, the Company determined it was the primary beneficiary of Genpar due to (i) its ability, as administrative manager and operator of the Plant, to direct the activities of Genpar that most significantly impact its economic performance and (ii) its obligation or right, as operator of the Plant, to absorb the losses of or receive benefits from Genpar that could potentially be significant to Genpar. As the primary beneficiary, the Company consolidated Genpar’s activity. However, its sole asset, the investment in GRLP, was eliminated in consolidation. Genpar had no liabilities. In March 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 and does not consolidate the results of PGC’s activities into its financial statements.

Amounts due from and due to PGC as of June 30, 2014 and December 31, 2013 included in the accompanying unaudited condensed consolidated balance sheets are as follows (in thousands):

	June 30, 2014		December 31, 2013
Accounts receivable due from PGC	$	1,672	$	741
Accounts payable due to PGC	$	4,486	$	3,634

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Variable Interest Entities - Grey Ranch, L.P. - Assets and Liabilities Included in Unaudited Condensed Consolidated Balance Sheets (Detail) (USD $)	Jun. 30, 2014		Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Variable Interest Entity
Cash and cash equivalents	$ 918,758,000		$ 814,663,000	$ 1,094,341,000	$ 309,766,000
Accounts receivable, net	333,300,000		349,218,000
Prepaid expenses	12,337,000		39,253,000
Other current assets	25,106,000		25,910,000
Total current assets	1,289,616,000		1,241,823,000
Other property, plant and equipment, net	564,521,000		566,222,000
Accounts payable and accrued expenses	648,434,000	[1]	812,488,000
Grey Ranch Plant, L.P
Variable Interest Entity
Cash and cash equivalents			132,000
Accounts receivable, net			16,000
Prepaid expenses			32,000
Other current assets			109,000
Total current assets			289,000
Other property, plant and equipment, net			1,163,000
Total assets			1,452,000
Accounts payable and accrued expenses			129,000
Total liabilities			$ 129,000

[1] Guarantor and Consolidated accounts payable and accrued expenses have been restated to reflect accrual of the CO2 shortfall penalty. See Note 2.

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Commitments and Contingencies - Additional Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014 bcf	Jun. 30, 2013	Jun. 30, 2014 bcf	Jun. 30, 2013	Dec. 31, 2013 bcf
Wesley West Minerals, Ltd and Longfellow Ranch Partners, LP
Commitments and Contingencies Disclosure
Damages sought by plaintiff			$ 45.5
General Land Office of the State of Texas
Commitments and Contingencies Disclosure
Damages sought by plaintiff			13.0
Patriot Exploration, LLC, Jonathan Feldman, Redwing Drilling Partners, Mapleleaf Drilling Partners, Avalanche Drilling Partners, Penguin Drilling Partners and Gramax Insurance Company Ltd.
Commitments and Contingencies Disclosure
Plaintiffs investment under participation agreement			16.0
Treating Agreement
Commitments and Contingencies Disclosure
Contract agreement, term			30 years
Minimum delivery required (in Bcf)	3,200		3,200
Initial shortfall price per Mcf	0.25		0.25
Delivery made (in Bcf)					34.0
Delivery shortfall (in Bcf)					164.4
Final shortfall price per Mcf	0.7		0.7
Final shortfall, if not delivered in future periods	47.0		47.0
Shortfall amount accrued	8.5	8.1	16.8	16.0	32.7
Treating Agreement | Minimum
Commitments and Contingencies Disclosure
Projected shortfall amount	30.0		30.0
Treating Agreement | Maximum
Commitments and Contingencies Disclosure
Final shortfall, if not delivered in future periods					115.1
Delivery requirement reduction payment	587.5		587.5
Projected shortfall amount	$ 37.0		$ 37.0

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Property, Plant and Equipment (Parenthetical) (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Oil and natural gas proved properties
Property, Plant and Equipment
Cumulative capitalized interest	$ 29.0	$ 23.4
Non-oil and natural gas equipment
Property, Plant and Equipment
Cumulative capitalized interest	4.3	4.3
Buildings and structures
Property, Plant and Equipment
Cumulative capitalized interest	$ 14.4	$ 12.0

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business

Nature of Business. SandRidge Energy, Inc. is an oil and natural gas company with a principal focus on exploration and production activities in the Mid-Continent region of the United States. The Company owns and operates additional interests in west Texas. The Company also operates businesses and infrastructure systems that are complementary to its primary exploration and production activities, including gas gathering and processing facilities, marketing operations, a saltwater gathering system, an electrical transmission system and a drilling and related oil field services business.

Principles of Consolidation

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned or majority owned subsidiaries and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Noncontrolling interest represents third-party ownership interests in the Company’s subsidiaries and consolidated VIEs and is included as a component of equity in the consolidated balance sheets and consolidated statement of changes in equity. All significant intercompany accounts and transactions have been eliminated in consolidation.

Variable Interest Entities

Variable Interest Entities. An entity is referred to as a VIE if it possesses one of the following criteria: (i) it is thinly capitalized, (ii) the residual equity holders do not control the entity, (iii) the equity holders are shielded from the economic losses, (iv) the equity holders do not participate fully in the entity’s residual economics, or (v) the entity was established with non-substantive voting interests. The Company consolidates a VIE when it has determined it is the primary beneficiary, which requires significant judgment. The primary beneficiary of a VIE is that variable interest holder possessing a controlling financial interest through (i) its power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) its obligation to absorb losses or its right to receive benefits from the VIE that could potentially be significant to the VIE. In order to determine whether the Company owns a variable interest in a VIE and the significance of the variable interest, the Company performs a qualitative analysis of the entity’s design, organizational structure, primary decision makers and related financial agreements. In addition to the VIEs that the Company consolidates, the Company also holds a variable interest in another VIE that is not consolidated as it was determined that the Company is not the primary beneficiary. The Company monitors both consolidated and unconsolidated VIEs to determine if any events have occurred that could cause the primary beneficiary to change. See Note 4 for discussion of the Company’s significant associated VIEs.

Interim Financial Statements

Interim Financial Statements. The accompanying unaudited condensed consolidated financial statements as of December 31, 2013 have been derived from the audited financial statements contained in the Company’s amended Annual Report on Form 10-K/A (“2013 Form 10-K/A”) filed on January 8, 2015. The unaudited condensed consolidated financial statements have been prepared by the Company in accordance with the accounting policies stated in the audited consolidated financial statements contained in the 2013 Form 10-K/A. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, all adjustments, which consist of normal recurring adjustments, unless otherwise disclosed herein, necessary to state fairly the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the 2013 Form 10-K/A.

Significant Accounting Policies. For a description of the Company’s significant accounting policies, see Note 1 of the consolidated financial statements included in the 2013 Form 10-K/A.

Reclassifications

Reclassifications. Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications have no effect on the Company’s previously reported results of operations.

Use of Estimates

Use of Estimates. The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

The more significant areas requiring the use of assumptions, judgments and estimates include: oil, natural gas and natural gas liquids (“NGL”) reserves; cash flow estimates used in the valuation of guarantees; impairment tests of long-lived assets; depreciation, depletion and amortization; asset retirement obligations; assignments of fair value and allocations of purchase price in connection with business combinations; determinations of significant alterations to the full cost pool and related estimates of fair value used to allocate the full cost pool net book value to divested properties, as necessary; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes these estimates are reasonable, actual results could differ significantly.

Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted. In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain of the provisions also amend or supersede existing guidance applicable to the recognition of a gain or loss on transfers of nonfinancial assets that are not an output of an entity’s ordinary activities, including sales of property, plant and equipment and real estate. The requirements of ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period with an option of using either a full retrospective or a modified approach for adoption. The Company is currently evaluating the effect, if any, that the updated standard will have on its consolidated financial statements and related disclosures.

Fair Value Transfer, Policy

The Company recognizes transfers between fair value hierarchy levels as of the end of the reporting period in which the event or change in circumstances causing the transfer occurred.

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Long-Term Debt (Parenthetical) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
8.75% Senior Notes due 2020
Debt Instrument
Debt maturity date	2020	2020
Long-term debt, fixed interest rate	8.75%	8.75%
Long term debt, discount	$ 4,938	$ 5,264
7.5% Senior Notes due 2021
Debt Instrument
Debt maturity date	2021	2021
Long-term debt, fixed interest rate	7.50%	7.50%
Long term debt, premium	3,708	3,922
8.125% Senior Notes due 2022
Debt Instrument
Debt maturity date	2022	2022
Long-term debt, fixed interest rate	8.125%	8.125%
7.5% Senior Notes due 2023
Debt Instrument
Debt maturity date	2023	2023
Long-term debt, fixed interest rate	7.50%	7.50%
Long term debt, discount	$ 3,605	$ 3,751

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Provision (Benefit) for Income Taxes

The (benefit) provision for income taxes consisted of the following components for the three and six-month periods ended June 30, 2014 and 2013 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Current
Federal	$	—		$	(344	)	$	—		$	4,015
State	(1,194		)	852			(1,067		)	922
	(1,194		)	508			(1,067		)	4,937
Deferred
Federal	—			—			—			—
State	—			—			—			—
	—			—			—			—
Total (benefit) provision	(1,194		)	508			(1,067		)	4,937
Less: income tax provision attributable to noncontrolling interest	88			71			170			146
Total (benefit) provision attributable to SandRidge Energy, Inc.	$	(1,282	)	$	437		$	(1,237	)	$	4,791

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Income Taxes

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company estimates for each interim reporting period the effective tax rate expected for the full fiscal year and uses that estimated rate in providing for income taxes on a current year-to-date basis. The (benefit) provision for income taxes consisted of the following components for the three and six-month periods ended June 30, 2014 and 2013 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Current
Federal	$	—		$	(344	)	$	—		$	4,015
State	(1,194		)	852			(1,067		)	922
	(1,194		)	508			(1,067		)	4,937
Deferred
Federal	—			—			—			—
State	—			—			—			—
	—			—			—			—
Total (benefit) provision	(1,194		)	508			(1,067		)	4,937
Less: income tax provision attributable to noncontrolling interest	88			71			170			146
Total (benefit) provision attributable to SandRidge Energy, Inc.	$	(1,282	)	$	437		$	(1,237	)	$	4,791

Deferred income taxes are provided to reflect the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The Company’s deferred tax assets have been reduced by a valuation allowance due to a determination that it is more likely than not that some or all of the deferred assets will not be realized based on the weight of all available evidence. The Company continues to closely monitor and weigh all available evidence, including both positive and negative, in making its determination whether to maintain a valuation allowance. As a result of the significant weight placed on the Company's cumulative negative earnings position, the Company continued to maintain the full valuation allowance against its net deferred tax asset at June 30, 2014.    

Internal Revenue Code (“IRC”) Section 382 addresses company ownership changes and specifically limits the utilization of certain deductions and other tax attributes on an annual basis following an ownership change. The Company experienced ownership changes within the meaning of IRC Section 382 during 2008 and 2010 that subjected certain of the Company’s tax attributes, including $923.0 million of federal net operating loss carryforwards, to the IRC Section 382 limitation. These limitations could result in a material amount of existing loss carryforwards expiring unused. None of these limitations resulted in a current federal tax liability at June 30, 2014.

At June 30, 2014 and December 31, 2013, the Company had a liability of approximately $0.1 million and $1.4 million, respectively, for unrecognized tax benefits. Included in the $1.4 million liability for unrecognized tax benefits at December 31, 2013 was $0.1 million for interest and penalties relating to uncertain tax positions.

The Company’s only taxing jurisdiction is the United States (federal and state). The Company’s tax years 2010 to present remain open for federal examination. Additionally, various tax years remain open beginning with tax year 2005 due to federal net operating loss carryforwards. The number of years open for state tax audits varies, depending on the state, but are generally from three to five years. The Company does not expect a significant change in its gross unrecognized tax benefits balance within the next twelve months.