PROPERTY AND EQUIPMENT (Tables)
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12 Months Ended |
Dec. 31, 2021 |
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| Property, Plant and Equipment [Abstract] |
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| Schedule of property and equipment |
The major categories of property and equipment and related accumulated depletion, depreciation, amortization and impairment as of December 31, 2021 and 2020 are as follows (in thousands):
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Successor |
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Predecessor |
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December 31, 2021 |
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December 31, 2020 |
| Proved oil and natural gas properties |
$ |
1,917,833 |
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$ |
9,359,866 |
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| Unproved properties |
211,007 |
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1,457,043 |
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| Other depreciable property and equipment |
4,943 |
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85,530 |
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| Land |
386 |
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3,008 |
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| Total property and equipment |
2,134,169 |
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10,905,447 |
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| Accumulated depletion, depreciation, amortization and impairment |
(278,341) |
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(8,819,178) |
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| Property and equipment, net |
$ |
1,855,828 |
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$ |
2,086,269 |
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| Schedule of oil and gas properties not subject to amortization |
The following is a summary of Gulfport’s oil and natural gas properties not subject to amortization as of December 31, 2021 (in thousands):
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Costs Incurred in |
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Period from May 18, 2021 through December 31, 2021 |
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Fresh Start Adjustments (May 17, 2021)(1)
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Total |
| Acquisition costs |
$ |
8,687 |
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$ |
202,296 |
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$ |
210,983 |
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| Exploration costs |
— |
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— |
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— |
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| Development costs |
18 |
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— |
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18 |
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| Capitalized interest |
6 |
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— |
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6 |
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| Total oil and natural gas properties not subject to amortization |
$ |
8,711 |
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$ |
202,296 |
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$ |
211,007 |
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_____________________
(1) Reflects carrying values of our unproved properties as a result of the application of fresh start accounting upon emergence from bankruptcy (see Note 3 for additional information) that remain in unproved properties as of December 31, 2021.
The following table summarizes the Company’s non-producing properties excluded from amortization by area as of December 31, 2021:
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Successor |
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December 31, 2021 |
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(In thousands) |
| Utica |
$ |
175,028 |
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| SCOOP |
35,975 |
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| Other |
4 |
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$ |
211,007 |
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| Schedule of asset retirement obligation |
A reconciliation of the Company's asset retirement obligation for the Predecessor Period, the Successor Period, and the year ended December 31, 2020 is as follows (in thousands):
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| Asset retirement obligation, January 1, 2020 (Predecessor) |
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$ |
60,355 |
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| Liabilities incurred |
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2,358 |
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| Liabilities removed due to divestitures |
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(2,213) |
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| Accretion expense |
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3,066 |
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| Total asset retirement obligation, December 31, 2020 (Predecessor) |
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63,566 |
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| Less: amounts reclassified to liabilities subject to compromise |
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(63,566) |
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| Total asset retirement obligation reflected as non-current liabilities, December 31, 2020 (Predecessor) |
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$ |
— |
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| Asset retirement obligation at January 1, 2021 (Predecessor) |
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$ |
63,566 |
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| Liabilities incurred |
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546 |
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| Accretion expense |
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1,229 |
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| Ending balance as of May 17, 2021 (Predecessor) |
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$ |
65,341 |
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Fresh start adjustments(1)
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(46,257) |
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| Asset retirement obligation at May 18, 2021 (Successor) |
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$ |
19,084 |
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| Liabilities incurred |
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204 |
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| Accretion expense |
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1,214 |
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Revisions in estimated cash flows(2)
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7,762 |
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| Asset retirement obligation at December 31, 2021 (Successor) |
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$ |
28,264 |
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(1) As discussed in Note 3, the Company recorded its asset retirement obligation at fair value as of the Emergence Date.
(2) Revisions represent changes in the present value of liabilities resulting from changes in estimated costs.
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