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Variable Interest Entities (Tables)
6 Months Ended
Jun. 30, 2015
Variable Interest Entity  
Royalty Trusts Distributions
The following distributions are expected to be paid on or before August 28, 2015 to holders of record as of the close of business on August 14, 2015 (in thousands):
Royalty Trust
 
Total Distribution
 
Amount Distributed to Third-Party Unitholders
Mississippian Trust I
 
$
8,428

 
$
6,162

Permian Trust
 
16,656

 
16,656

Mississippian Trust II
 
9,361

 
7,794

Total
 
$
34,445

 
$
30,612

Open Oil and Natural Gas Commodity Derivative Contracts
At June 30, 2015, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps 
 
Notional (MBbls)
 
Weighted Average
Fixed Price
July 2015 - December 2015
1,570

 
$
93.02

January 2016 - December 2016
1,464

 
$
88.36


Natural Gas Price Swaps 
 
Notional (MMcf)
 
Weighted Average
Fixed Price
July 2015 - December 2015
3,680

 
$
4.20


Natural Gas Basis Swaps
 
Notional (MMcf)
 
Weighted Average
Fixed Price
July 2015 - December 2015
31,280

 
$
(0.30
)
January 2016 - December 2016
10,980

 
$
(0.38
)

Oil Collars - Three-way
 
Notional (MBbls)
 
Sold Put
Purchased Put
Sold Call
July 2015 - December 2015
3,128

 
$78.15
$90.03
$103.65
January 2016 - December 2016
2,556

 
$83.14
$90.00
$100.85

Natural Gas Collars
 
Notional (MMcf)
 
Collar Range
July 2015 - December 2015
509

 
$4.00
$8.55
Royalty Trusts  
Variable Interest Entity  
Royalty Trust Units
Common and subordinated units outstanding as of June 30, 2015 for each Royalty Trust are as follows:
 
 
Mississippian Trust I
 
Permian Trust
 
Mississippian Trust II
Total outstanding common units(1)
 
28,000,000

 
39,375,000

 
37,293,750

Total outstanding subordinated units(2)
 

 
13,125,000

 
12,431,250

____________________
(1)
The Mississippian Trust I’s previously outstanding subordinated units, all of which were held by SandRidge, converted to common units in the third quarter of 2014.
(2)
All outstanding subordinated units are owned by SandRidge.
Royalty Trusts Ownership Interest
The Company’s beneficial interests in the Royalty Trusts at June 30, 2015 and December 31, 2014 were as follows:
 
June 30,
2015
 
December 31,
2014
Mississippian Trust I
26.9
%
 
26.9
%
Permian Trust
25.0
%
 
25.0
%
Mississippian Trust II
37.6
%
 
37.6
%
Royalty Trusts Distributions
Quarterly distributions declared and paid by the Royalty Trusts during the three and six-month periods ended June 30, 2015 and 2014 were as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015(1)
 
2014(2)
 
2015(1)
 
2014(2)
Total distributions
$
47,296

 
$
59,672

 
$
97,499

 
$
127,985

Distributions to third-party unitholders
$
40,975

 
$
50,024

 
$
84,690

 
$
103,142

____________________
(1)
Subordination thresholds were not met for the Permian Trust and Mississippian Trust II’s distributions for the three and six-month periods ended June 30, 2015, resulting in reduced distributions to the Company on its subordinated units for these periods.
(2)
Subordination thresholds were not met for the Mississippian Trust I’s distributions for the three and six-month periods ended June 30, 2014 and for the Mississippian Trust II’s distributions for the three-month period June 30, 2014, resulting in reduced distributions to the Company on its subordinated units for these periods.
Open Oil and Natural Gas Commodity Derivative Contracts
The tables below present the open oil and natural gas commodity derivative contracts at June 30, 2015 underlying the derivatives agreements with the Mississippian Trust I and Mississippian Trust II. The derivatives agreement with the Permian Trust contained commodity derivative contracts that covered volumes of oil production through March 31, 2015 and is no longer in effect. The combined volume in the tables below reflects the total volume of the Royalty Trusts’ open oil and natural gas commodity derivative contracts.

Oil Price Swaps Underlying the Royalty Trust Derivatives Agreements
 
Notional (MBbls)
 
Weighted Average
Fixed Price
July 2015 - December 2015
374

 
$
97.09


Natural Gas Collars Underlying the Royalty Trust Derivatives Agreements
 
Notional (MMcf)
 
Collar Range
July 2015 - December 2015
509

 
$
4.00

$
8.55


Schedule Of Variable Interest Entities Assets and Liabilities
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, 2015 and December 31, 2014 consisted of the following (in thousands):
 
June 30,
2015
 
December 31,
2014
Cash and cash equivalents(1)
$
9,062

 
$
9,387

Accounts receivable, net
8,455

 
17,660

Derivative contracts

 
6,589

Total current assets
17,517

 
33,636

Investment in royalty interests(2)
1,325,942

 
1,325,942

Less: accumulated depletion and impairment(3)
(808,890
)
 
(284,094
)
 
517,052

 
1,041,848

Total assets
$
534,569

 
$
1,075,484

Accounts payable and accrued expenses
$
185

 
$
2,852

Total liabilities
$
185

 
$
2,852

____________________
(1)
Includes $3.0 million held by the trustee at June 30, 2015 and December 31, 2014 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)
Includes cumulative full cost ceiling limitation impairment of $547.5 million and $42.3 million at June 30, 2015 and December 31, 2014, respectively.
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, 2015 and December 31, 2014 included in the accompanying unaudited condensed consolidated balance sheets are as follows (in thousands):
 
June 30,
2015
 
December 31,
2014
Accounts receivable due from PGC
$
1,104

 
$
1,141

Accounts payable due to PGC
$
4,011

 
$
4,163