DERIVATIVE INSTRUMENTS (Tables)
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9 Months Ended |
Sep. 30, 2021 |
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| General Discussion of Derivative Instruments and Hedging Activities [Abstract] |
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| 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 September 30, 2021.
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Location |
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Daily Volume |
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Weighted
Average Price |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
| Remaining 2021 |
NYMEX Henry Hub |
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198,000 |
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$ |
2.85 |
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| 2022 |
NYMEX Henry Hub |
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140,740 |
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$ |
2.88 |
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| 2023 |
NYMEX Henry Hub |
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34,932 |
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$ |
3.24 |
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| Oil |
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(Bbl/d) |
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($/Bbl) |
| Remaining 2021 |
NYMEX WTI |
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3,000 |
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$ |
57.67 |
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| 2022 |
NYMEX WTI |
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2,104 |
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$ |
66.23 |
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| NGL |
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(Bbl/d) |
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($/Bbl) |
| Remaining 2021 |
Mont Belvieu C3 |
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3,100 |
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$ |
27.80 |
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| 2022 |
Mont Belvieu C3 |
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3,378 |
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$ |
35.09 |
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Below is a summary of the Company's sold natural gas call option positions as of September 30, 2021.
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Location |
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Daily Volume |
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Weighted Average Price |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
| 2022 |
NYMEX Henry Hub |
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152,675 |
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$ |
2.90 |
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| 2023 |
NYMEX Henry Hub |
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627,675 |
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$ |
2.90 |
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Below is a summary of the Company's costless collar positions as of September 30, 2021.
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Location |
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Daily Volume |
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Weighted Average Floor Price |
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Weighted Average Ceiling Price |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
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($/MMBtu) |
| Remaining 2021 |
NYMEX Henry Hub |
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610,000 |
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$ |
2.59 |
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$ |
3.02 |
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| 2022 |
NYMEX Henry Hub |
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406,747 |
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$ |
2.58 |
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$ |
2.91 |
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| Oil |
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(Bbl/d) |
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($/Bbl) |
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($/Bbl) |
| 2022 |
NYMEX WTI |
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1,500 |
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$ |
55.00 |
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$ |
60.00 |
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| Schedule of Natural Gas Basis Swap Positions |
Below is a summary of the Company's natural gas basis swap positions as of September 30, 2021.
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Gulfport Pays |
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Gulfport Receives |
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Daily Volume |
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Weighted Average Fixed Spread |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
| Remaining 2021 |
Rex Zone 3 |
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NYMEX Plus Fixed Spread |
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83,152 |
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$ |
(0.12) |
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| 2022 |
Rex Zone 3 |
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NYMEX Plus Fixed Spread |
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24,658 |
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$ |
(0.10) |
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Subsequent to September 30, 2021 and as of October 28, 2021, the Company entered into the following natural gas derivative contracts:
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Type of Derivative Instrument |
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Index |
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Daily Volume |
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Weighted
Average Price |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
| November 2021 - December 2021 |
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Basis Swap |
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ONG Minus Inside FERC |
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20,000 |
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$0.50 |
| January 2022 - March 2022 |
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Basis Swap |
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ONG Minus Inside FERC |
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20,000 |
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$0.50 |
| January 2023 - December 2023 |
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Fixed price swap |
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NYMEX Henry Hub |
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30,000 |
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$3.58 |
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| 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 September 30, 2021 and December 31, 2020:
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Successor |
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Predecessor |
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September 30, 2021 |
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December 31, 2020 |
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| Short-term derivative asset |
$ |
2,142 |
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$ |
27,146 |
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| Long-term derivative asset |
961 |
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322 |
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| Short-term derivative liability |
(560,722) |
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(11,641) |
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| Long-term derivative liability |
(272,935) |
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(36,604) |
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| Total commodity derivative position |
$ |
(830,554) |
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$ |
(20,777) |
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| 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:
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Net loss on derivative instruments |
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Successor |
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Predecessor |
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Three Months Ended September 30, 2021 |
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Three Months Ended September 30, 2020 |
| Natural gas derivatives - fair value losses |
$ |
(517,799) |
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$ |
(84,390) |
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| Natural gas derivatives - settlement (losses) gains |
(82,566) |
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31,742 |
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| Total losses on natural gas derivatives |
(600,365) |
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(52,648) |
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| Oil and condensate derivatives - fair value (losses) gains |
(1,590) |
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723 |
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| Oil and condensate derivatives - settlement losses |
(4,336) |
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(1,505) |
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| Total losses on oil and condensate derivatives |
(5,926) |
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(782) |
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| NGL derivatives - fair value losses |
(10,201) |
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(288) |
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| NGL derivatives - settlement losses |
(5,984) |
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(105) |
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| Total losses on NGL derivatives |
(16,185) |
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(393) |
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| Total losses on natural gas, oil and NGL derivatives |
$ |
(622,476) |
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$ |
(53,823) |
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Net (loss) gain on derivative instruments |
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Successor |
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Predecessor |
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Period from May 18, 2021 through September 30, 2021 |
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Period from January 1, 2021 through May 17, 2021 |
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Nine Months Ended September 30, 2020 |
| Natural gas derivatives - fair value losses |
$ |
(638,063) |
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$ |
(123,080) |
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$ |
(147,661) |
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| Natural gas derivatives - settlement (losses) gains |
(89,255) |
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(3,362) |
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176,555 |
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| Total (losses) gains on natural gas derivatives |
(727,318) |
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(126,442) |
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28,894 |
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| Oil and condensate derivatives - fair value losses |
(6,947) |
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(6,126) |
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(4,289) |
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| Oil and condensate derivatives - settlement (losses) gains |
(4,336) |
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— |
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48,444 |
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| Total (losses) gains on oil and condensate derivatives |
(11,283) |
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(6,126) |
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44,155 |
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| NGL derivatives - fair value losses |
(17,549) |
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(4,671) |
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(620) |
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| NGL derivatives - settlement (losses) gains |
(5,984) |
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— |
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366 |
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| Total losses on NGL derivatives |
(23,533) |
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(4,671) |
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(254) |
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| Contingent consideration arrangement - fair value losses |
— |
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— |
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(1,381) |
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| Total (losses) gains on natural gas, oil and NGL derivatives |
$ |
(762,134) |
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$ |
(137,239) |
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$ |
71,414 |
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| 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.
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Successor |
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As of September 30, 2021 |
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Gross Assets (Liabilities) |
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Gross Amounts |
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Presented in the |
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Subject to Master |
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Net |
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Consolidated Balance Sheets |
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Netting Agreements |
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Amount |
| Derivative assets |
$ |
3,103 |
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$ |
(3,103) |
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$ |
— |
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| Derivative liabilities |
$ |
(833,657) |
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$ |
3,103 |
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$ |
(830,554) |
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Predecessor |
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As of December 31, 2020 |
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Gross Assets (Liabilities) |
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Gross Amounts |
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Presented in the |
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Subject to Master |
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Net |
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Consolidated Balance Sheets |
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Netting Agreements |
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Amount |
| Derivative assets |
$ |
27,468 |
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$ |
(25,730) |
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$ |
1,738 |
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| Derivative liabilities |
$ |
(48,245) |
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$ |
25,730 |
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$ |
(22,515) |
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| 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.
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Successor |
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As of September 30, 2021 |
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Gross Assets (Liabilities) |
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Gross Amounts |
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Presented in the |
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Subject to Master |
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Net |
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Consolidated Balance Sheets |
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Netting Agreements |
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Amount |
| Derivative assets |
$ |
3,103 |
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$ |
(3,103) |
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$ |
— |
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| Derivative liabilities |
$ |
(833,657) |
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$ |
3,103 |
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$ |
(830,554) |
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Predecessor |
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As of December 31, 2020 |
|
Gross Assets (Liabilities) |
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Gross Amounts |
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Presented in the |
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Subject to Master |
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Net |
|
Consolidated Balance Sheets |
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Netting Agreements |
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Amount |
| Derivative assets |
$ |
27,468 |
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$ |
(25,730) |
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$ |
1,738 |
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| Derivative liabilities |
$ |
(48,245) |
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$ |
25,730 |
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$ |
(22,515) |
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