Annual report pursuant to Section 13 and 15(d)

Equity Investments

v3.20.4
Equity Investments
 12 Months Ended
Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Equity Investments EQUITY INVESTMENTS
Investments accounted for by the equity method consist of the following as of December 31, 2020 and 2019:
Carrying Value Loss (income) from equity method investments
Approximate Ownership % December 31, For the Year Ended December 31,
2020 2019 2020 2019 2018
(In thousands)
Investment in Grizzly Oil Sands ULC 24.5  % $ 24,816  $ 21,000  $ 377  $ 32,710  $ 510 
Investment in Mammoth Energy Services, Inc. 21.5  % —  11,005  10,646  179,524  (49,969)
Investment in Tatex Thailand II, LLC 23.5  % —  —  —  (2,086) (241)
Other equity investments(1)
—  % —  39  32  —  (204)
$ 24,816  $ 32,044  $ 11,055  $ 210,148  $ (49,904)
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(1)    Consists of sold/dissolved investments, including Windsor Midstream, LLC, which was dissolved as of December 31, 2020. Additionally, this includes the Company's investment in Strike Force that was sold in 2018, from which the Company recognized a gain of $96.4 million net of transaction fees, which is included in gain on sale of equity method investments in the accompanying consolidated statement of operations for the year ended December 31, 2018.
The tables below summarize financial information for the Company's equity investments, as of December 31, 2020 and 2019.
Summarized balance sheet information:
December 31,
2020 2019
(In thousands)
Current assets $ 483,303  $ 421,326 
Noncurrent assets $ 1,092,495  $ 1,260,075 
Current liabilities $ 132,978  $ 132,569 
Noncurrent liabilities $ 148,240  $ 163,241 
Summarized results of operations:
  December 31,
  2020 2019 2018
(In thousands)
Gross revenue $ 313,076  $ 625,012  $ 1,729,778 
Net (loss) income $ (106,072) $ (76,523) $ 253,451 
Grizzly Oil Sands ULC
The Company, through its wholly owned subsidiary Grizzly Holdings, owns a 24.5% interest in Grizzly, a Canadian unlimited liability company. The remaining interest in Grizzly is owned by Grizzly Oil Sands Inc. As of December 31, 2020, Grizzly had approximately 830,000 acres under lease in the Athabasca, Peace River and Cold Lake oil sands regions of Alberta, Canada.
The Company reviewed its investment in Grizzly at December 31, 2020 and December 31, 2019 for impairment based on certain qualitative and quantitative factors. This resulted in recording no impairment losses and $32.4 million for the years ended December 31, 2020 and 2019, respectively, which is included in loss from equity method investments, net in the accompanying consolidated statements of operations. The Company reviewed its investment in Grizzly for impairment at December 31, 2018 and determined no impairment was required.
The Company did not pay any cash calls during 2020 as a result of its election to cease funding further capital calls in 2019. The Company paid $0.4 million in cash calls during the year ended December 31, 2019 prior to this election. Grizzly’s functional currency is the Canadian dollar. The Company's investment in Grizzly was increased by a $4.2 million foreign currency translation gain, increased by a $9.0 million foreign currency translation gain and decreased by a $15.2 million foreign currency translation loss for the years ended December 31, 2020, 2019 and 2018, respectively. The Company had $40.6 million and $44.8 million in accumulated other comprehensive loss in its accompanying consolidated balance sheets related to Grizzly at December 31, 2020 and December 31, 2019, respectively, that will be included in the calculations of future charge related to a sale or abandonment.
Mammoth Energy Services, Inc.
On June 29, 2018, the Company sold 1,235,600 shares of its Mammoth Energy common stock in an underwritten public offering for net proceeds of approximately $47.0 million. In connection with the Company's public offering of a portion of its shares of Mammoth Energy common stock, the Company granted the underwriters an option to purchase additional shares of its Mammoth Energy common stock. On July 26, 2018, the underwriters exercised this option, in part, and on July 30, 2018, the Company sold an additional 118,974 shares for net proceeds of approximately $4.5 million. Following the sales of these shares, the Company owned 9,829,548 shares, or 21.5% at December 31, 2018, of Mammoth Energy's outstanding common stock. As a result of the sales, the Company recorded a gain of $28.3 million, which is included in gain on sale of equity method investments in the accompanying consolidated statements of operations. The approximate fair value of the Company's investment in Mammoth Energy's common stock at December 31, 2019 was $21.6 million based on the quoted market price of Mammoth Energy's common stock.
At December 31, 2020, the Company owned 9,829,548 shares, or 21.5%, of the outstanding common stock of Mammoth Energy. As a result of the net loss Mammoth sustained in the first quarter of 2020, we recorded a loss of $10.6 million for the year ended December 31, 2020 which reduced the Company's investment balance in Mammoth to zero. This is included in loss (income) from equity method investments, net in the accompanying consolidated statements of operations. The Company's investment in Mammoth Energy was increased by a $0.2 million foreign currency gain and decreased by a $0.4 million foreign currency loss resulting from Mammoth Energy's foreign subsidiary for the years ended December 31, 2019 and 2018, respectively. During the year ended December 31, 2019, Gulfport received distributions of $2.5 million from Mammoth Energy as a result of dividends in February 2019 and May 2019. The approximate fair value of the Company's investment in Mammoth Energy's common stock at December 31, 2020 was $43.7 million based on the quoted market price of Mammoth Energy's common stock. The loss (income) from equity method investments presented in the table above reflects any intercompany profit eliminations.
Tatex Thailand II, LLC
The Company has an indirect ownership interest in Tatex Thailand II, LLC ("Tatex") and received no distributions from Tatex during the year ended December 31, 2020. The Company received $2.1 million in distributions from Tatex during the year ended December 31, 2019. Tatex previously held an 8.5% interest in an entity holding a reserve base in Southeast Asia, including the Phu Horm Field, before selling its interest in June 2019.