Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS (Tables)

v3.21.2
DERIVATIVE INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2021
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule of Open Fixed Price Swap Positions and Natural Gas Basis Swap Positions Below is a summary of the Company’s open fixed price swap positions as of June 30, 2021. 
Location Daily Volume Weighted
Average Price
Natural Gas (MMBtu/day)
Remaining 2021 NYMEX Henry Hub 221,500  $ 2.79 
2022 NYMEX Henry Hub 80,411  $ 2.80 
Oil (Bbl/day)
Remaining 2021 NYMEX WTI 3,250  $ 57.35 
2022 NYMEX WTI 1,000  $ 67.00 
NGL (Bbl/day)
Remaining 2021 Mont Belvieu C3 3,100  $ 27.80 
2022 Mont Belvieu C3 496  $ 27.30 
Below is a summary of the Company's sold natural gas call option positions as of June 30, 2021.
Location Daily Volume Weighted Average Price
Natural Gas (MMBtu/day)
2022 NYMEX Henry Hub 152,675  $ 2.90 
2023 NYMEX Henry Hub 627,675  $ 2.90 
Below is a summary of the Company's costless collar positions as of June 30, 2021.
Location Daily Volume Weighted Average Floor Price Weighted Average Ceiling Price
Natural Gas (MMBtu/day)
Remaining 2021 NYMEX Henry Hub 575,000  $ 2.58  $ 2.97 
2022 NYMEX Henry Hub 406,747  $ 2.58  $ 2.91 
Oil (Bbl/day)
2022 NYMEX WTI 1,500  $ 55.00  $ 60.00 
Schedule of Natural Gas Basis Swap Positions
Below is a summary of the Company's natural gas basis swap positions as of June 30, 2021.
Gulfport Pays Gulfport Receives Daily Volume Weighted Average Fixed Spread
Natural Gas (MMBtu/day)
Remaining 2021 Rex Zone 3 NYMEX Plus Fixed Spread 66,576  $ (0.16)
2022 Rex Zone 3 NYMEX Plus Fixed Spread 24,658  $ (0.10)
Subsequent to June 30, 2021 and as of July 31, 2021, the Company entered into the following natural gas and oil derivative contracts:
Type of Derivative Instrument Index Daily Volume Weighted
Average Price
Natural Gas (MMBtu/day)
April 2022 - December 2022 Fixed price swap NYMEX Henry Hub 80,073  $2.99
January 2023 - March 2023 Fixed price swap NYMEX Henry Hub 20,000 
$3.13
Oil (Bbl/day)
January 2022 - December 2022 Fixed price swap NYMEX WTI 1,104 
$65.54
Schedule of Derivative Instruments in Balance Sheet
The following table presents the fair value of the Company’s derivative instruments on a gross basis at June 30, 2021 and December 31, 2020:
Successor Predecessor
June 30, 2021 December 31, 2020
Short-term derivative asset $ 2,223  $ 27,146 
Long-term derivative asset 3,014  322 
Short-term derivative liability (192,730) (11,641)
Long-term derivative liability (113,470) (36,604)
Total commodity derivative position $ (300,963) $ (20,777)
Schedule of Net Gain (Loss) on Derivatives
The following tables present the gain and loss recognized in net (loss) gain on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations:
Net (loss) gain on derivative instruments
Successor Predecessor
Period from May 18, 2021 through June 30, 2021 Period from April 1, 2021 through May 17, 2021 Three Months Ended June 30, 2020
Natural gas derivatives $ (126,953) $ (101,029) $ 35,689 
Oil derivatives $ (5,357) $ (4,395) $ (7,937)
NGL derivatives $ (7,348) $ (1,837) $ (781)
Total $ (139,658) $ (107,261) $ 26,971 
Net (loss) gain on derivative instruments
Successor Predecessor
Period from May 18, 2021 through June 30, 2021 Period from January 1, 2021 through May 17, 2021 Six Months Ended June 30, 2020
Natural gas derivatives $ (126,953) $ (126,442) $ 81,542 
Oil derivatives $ (5,357) $ (6,126) $ 44,937 
NGL derivatives $ (7,348) $ (4,671) $ 139 
Contingent consideration arrangement $ —  $ —  $ (1,381)
Total $ (139,658) $ (137,239) $ 125,237 
Schedule of Recognized Derivative Assets The following table presents the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value.
Successor
As of June 30, 2021
Gross Assets (Liabilities) Gross Amounts
Presented in the Subject to Master Net
Consolidated Balance Sheets Netting Agreements Amount
Derivative assets $ 5,237  $ (5,237) $ — 
Derivative liabilities $ (306,200) $ 5,237  $ (300,963)
Predecessor
As of December 31, 2020
Gross Assets (Liabilities) Gross Amounts
Presented in the Subject to Master Net
Consolidated Balance Sheets Netting Agreements Amount
Derivative assets $ 27,468  $ (25,730) $ 1,738 
Derivative liabilities $ (48,245) $ 25,730  $ (22,515)
Schedule of Recognized Derivative Liabilities The following table presents the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value.
Successor
As of June 30, 2021
Gross Assets (Liabilities) Gross Amounts
Presented in the Subject to Master Net
Consolidated Balance Sheets Netting Agreements Amount
Derivative assets $ 5,237  $ (5,237) $ — 
Derivative liabilities $ (306,200) $ 5,237  $ (300,963)
Predecessor
As of December 31, 2020
Gross Assets (Liabilities) Gross Amounts
Presented in the Subject to Master Net
Consolidated Balance Sheets Netting Agreements Amount
Derivative assets $ 27,468  $ (25,730) $ 1,738 
Derivative liabilities $ (48,245) $ 25,730  $ (22,515)