Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

(Benefit) Provision for Income Taxes

The Company’s income tax (benefit) provision consisted of the following components for the years ended December 31, 2014, 2013 and 2012 (in thousands):

	Year Ended December 31,
	2014			2013		2012
Current
Federal	$	(1,160	)	$	3,842	$	(72	)
State	(1,133		)	1,842		(2		)
	(2,293		)	5,684		(74		)
Deferred
Federal	—			—		(97,410		)
State	—			—		(2,878		)
	—			—		(100,288		)
Total (benefit) provision	(2,293		)	5,684		(100,362		)
Less: income tax provision attributable to noncontrolling interest	283			308		304
Total (benefit) provision attributable to SandRidge Energy, Inc.	$	(2,576	)	$	5,376	$	(100,666	)

Reconciliation of Provision (Benefit) for Income Taxes at Statutory Federal Tax Rate

A reconciliation of the (benefit) provision for income taxes at the statutory federal tax rate to the Company’s actual income tax benefit is as follows for the years ended December 31, 2014, 2013 and 2012 (in thousands):

	2014			2013			2012
Computed at federal statutory rate	$	122,362		$	(178,078	)	$	51,173
State taxes, net of federal benefit	4,145			(886		)	8,913
Non-deductible expenses	1,895			2,589			7,247
Stock-based compensation	1,467			7,611			7,172
Net effects of consolidating the non-controlling interests’ tax provisions	(34,614		)	(13,901		)	(37,047		)
Bargain purchase gain	—			—			(42,944		)
Impairment of non-deductible goodwill	—			—			71,885
Change in valuation allowance	(96,769		)	188,599			(66,429		)
Valuation allowance release	—			—			(100,288		)
Other	(1,062		)	(558		)	(348		)
Total (benefit) provision attributable to SandRidge Energy, Inc.	$	(2,576	)	$	5,376		$	(100,666	)

Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

	December 31,
	2014			2013
Deferred tax liabilities
Investments(1)	$	272,902		$	301,447
Property, plant and equipment	364,576			180,140
Derivative contracts	113,735			—
Total deferred tax liabilities	751,213			481,587
Deferred tax assets
Derivative contracts	—			3,692
Allowance for doubtful accounts	19,086			20,358
Net operating loss carryforwards	1,265,458			973,675
Compensation and benefits	19,867			24,895
Alternative minimum tax credits and other carryforwards	43,840			46,624
Asset retirement obligations	21,946			147,626
CO2 under-delivery shortfall penalty	27,674			15,012
Other	2,934			3,156
Total deferred tax assets	1,400,805			1,235,038
Valuation allowance	(649,592		)	(753,451		)
Net deferred tax liability	$	—		$	—

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(1) Includes the Company’s deferred tax liability resulting from its investment in the Royalty Trusts. See Note 4 for further discussion of the Royalty Trusts.

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	December 31,
	2014			2013
Unrecognized tax benefit at January 1	$	1,382		$	1,330
Changes to unrecognized tax benefits related to the current year	—			262
Changes to unrecognized tax benefits related to a prior year	(17		)	(210		)
Decreases to unrecognized tax benefits for settlements with tax authorities	(1,288		)	—
Unrecognized tax benefit at December 31	$	77		$	1,382