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Income Taxes (Tables)
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12 Months Ended |
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Dec. 31, 2014
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| Income Tax Disclosure [Abstract] |
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| (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 | ) |
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| 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 | ) |
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| 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. |
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| 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 |
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