Annual report pursuant to Section 13 and 15(d)

DERIVATIVE INSTRUMENTS (Tables)

v3.22.0.1
DERIVATIVE INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of open fixed price swap positions
Below is a summary of the Company's open fixed price swap positions as of December 31, 2021.
Index Daily Volume Weighted
Average Price
Natural Gas (MMBtu/d) ($/MMBtu)
2022 NYMEX Henry Hub 140,740  $ 2.88 
2023 NYMEX Henry Hub 94,932  $ 3.41 
Oil (Bbl/d) ($/Bbl)
2022 NYMEX WTI 2,104  $ 66.23 
2023 NYMEX WTI 1,000  $ 66.00 
NGL (Bbl/d) ($/Bbl)
2022 Mont Belvieu C3 3,378  $ 35.09 
2023 Mont Belvieu C3 1,000  $ 33.77 
Index Daily Volume Weighted Average Floor Price Weighted Average Ceiling Price
Natural Gas (MMBtu/d) ($/MMBtu) ($/MMBtu)
2022 NYMEX Henry Hub 476,664  $ 2.64  $ 3.22 
2023 NYMEX Henry Hub 85,000  $ 2.75  $ 4.25 
Oil (Bbl/d) ($/Bbl) ($/Bbl)
2022 NYMEX WTI 1,500  $ 55.00  $ 60.00 
Index Daily Volume Weighted Average Ceiling Price
Natural Gas (MMBtu/d) ($/MMBtu)
2022 NYMEX Henry Hub 152,675  $ 2.90 
2023 NYMEX Henry Hub 507,925  $ 2.90 
2024 NYMEX Henry Hub 162,000  $ 3.00 
Schedule of natural gas basis swap positions As of December 31, 2021, the Company had the following natural gas basis swap positions open:
Gulfport Pays Gulfport Receives Daily Volume Weighted Average Fixed Spread
Natural Gas (MMBtu/d) ($/MMBtu)
2022 Rex Zone 3 NYMEX Plus Fixed Spread 24,658  $ (0.10)
2022 ONG NYMEX Plus Fixed Spread 7,397  $ 0.50 
2023 Rex Zone 3 NYMEX Plus Fixed Spread 10,000  $ (0.22)
Subsequent to December 31, 2021 and as of February 25, 2022, the Company entered into the following natural gas, oil, and NGL derivative contracts:
Period Type of Derivative Instrument Index
Daily Volume(1)
Weighted
Average Price
January 2023 - December 2023 Swaps NYMEX WTI 1,000  $69.78
January 2023 - December 2023 Swaps NYMEX Henry Hub 40,082  $3.56
January 2023 - December 2023 Swaps Mont Belvieu C3 1,000  $36.33
January 2023 - December 2023 Basis Swaps Rex Zone 3 10,000  $(0.20)
(1)    Volumes for gas instruments are presented in MMBtu while oil and NGL volumes are presented in Bbls.
Schedule of derivative instruments on a gross basis The following table presents the fair value of the Company's derivative instruments on a gross basis at December 31, 2021 and 2020 (in thousands):
Successor Predecessor
December 31, 2021 December 31, 2020
Total short-term derivative instruments – asset $ 4,695  $ 27,146 
Total long-term derivative instruments – asset $ 18,664  $ 322 
Total short-term derivative instruments – liability $ 240,735  $ 11,641 
Total long-term derivative instruments – liability $ 184,580  $ 36,604 
Schedule of net gain (loss) on derivatives
The following table presents the gain and loss recognized in net gain (loss) on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the Successor Period, Predecessor Period, and the years ended December 31, 2020, and 2019 (in thousands):
Successor Predecessor
Period from May 18, 2021 through December 31, 2021 Period from January 1, 2021 through May 17, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019
Natural gas derivatives - fair value losses $ (223,512) $ (123,080) $ (89,310) $ 89,576 
Natural gas derivatives - settlement (losses) gains (300,172) (3,362) 113,075  104,874 
Total (losses) gains on natural gas derivatives (523,684) (126,442) 23,765  194,450 
Oil and condensate derivatives - fair value losses (5,128) (6,126) (2,952) 2,952 
Oil and condensate derivatives - settlement (losses) gains (9,720) —  46,462  4,083 
Total (losses) gains on oil and condensate derivatives (14,848) (6,126) 43,510  7,035 
NGL derivatives - fair value losses (5,322) (4,671) (461) (7,541)
NGL derivatives - settlement (losses) gains (12,965) —  (142) 14,173 
Total losses on NGL derivatives (18,287) (4,671) (603) 6,632 
Contingent consideration arrangement - fair value losses —  —  (1,381) 243 
Total (losses) gains on natural gas, oil and NGL derivatives $ (556,819) $ (137,239) $ 65,291  $ 208,360 
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 December 31, 2021
Derivative instruments, gross Netting adjustments Derivative instruments, net
(In thousands)
Derivative assets $ 23,359  $ (20,265) $ 3,094 
Derivative liabilities $ (425,315) $ 20,265  $ (405,050)
Predecessor
As of December 31, 2020
Derivative instruments, gross Netting adjustments Derivative instruments, net
(In thousands)
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 December 31, 2021
Derivative instruments, gross Netting adjustments Derivative instruments, net
(In thousands)
Derivative assets $ 23,359  $ (20,265) $ 3,094 
Derivative liabilities $ (425,315) $ 20,265  $ (405,050)
Predecessor
As of December 31, 2020
Derivative instruments, gross Netting adjustments Derivative instruments, net
(In thousands)
Derivative assets $ 27,468  $ (25,730) $ 1,738 
Derivative liabilities $ (48,245) $ 25,730  $ (22,515)