DERIVATIVE INSTRUMENTS (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of open fixed price swap positions |
Below is a summary of the Company's open fixed price swap positions as of December 31, 2022.
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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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($/MMBtu) |
| 2023 |
NYMEX Henry Hub |
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229,973 |
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$ |
4.28 |
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| 2024 |
NYMEX Henry Hub |
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174,973 |
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$ |
4.41 |
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| Oil |
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(Bbl/d) |
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($/Bbl) |
| 2023 |
NYMEX WTI |
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3,000 |
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$ |
74.47 |
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| NGL |
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(Bbl/d) |
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($/Bbl) |
| 2023 |
Mont Belvieu C3 |
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3,000 |
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$ |
38.07 |
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Index |
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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) |
| 2023 |
NYMEX Henry Hub |
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285,000 |
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$ |
2.93 |
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$ |
4.78 |
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| 2024 |
NYMEX Henry Hub |
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90,000 |
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$ |
3.67 |
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$ |
6.87 |
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Index |
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Daily Volume |
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Weighted Average Ceiling Price |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
| 2023 |
NYMEX Henry Hub |
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407,925 |
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$ |
2.90 |
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| 2024 |
NYMEX Henry Hub |
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202,000 |
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$ |
3.33 |
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| 2025 |
NYMEX Henry Hub |
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33,315 |
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$ |
4.65 |
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| Schedule of natural gas basis swap positions |
As of December 31, 2022, the Company had the following natural gas basis swap positions open:
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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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($/MMBtu) |
| 2023 |
Rex Zone 3 |
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NYMEX Plus Fixed Spread |
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60,000 |
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$ |
(0.22) |
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| 2023 |
NGPL TXOK |
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NYMEX Plus Fixed Spread |
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20,000 |
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$ |
(0.40) |
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| 2023 |
TETCO M2 |
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NYMEX Plus Fixed Spread |
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40,082 |
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$ |
(1.01) |
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| 2024 |
TETCO M2 |
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NYMEX Plus Fixed Spread |
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9,973 |
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$ |
(1.03) |
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Subsequent to December 31, 2022 and as of February 23, 2023, the Company entered into the following derivative contracts:
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| Period |
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Type of Derivative Instrument |
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Index |
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Daily Volume (MMBtu) |
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Weighted
Average Price |
| 2023 |
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Basis Swaps |
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TETCO M2 |
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76,219 |
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$(0.85) |
| 2023 |
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Basis Swaps |
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Rex Zone 3 |
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59,452 |
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$(0.22) |
| 2023 |
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Basis Swaps |
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NGPL TXOK |
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42,685 |
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$(0.34) |
| 2024 |
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Swaps |
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NYMEX Henry Hub |
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30,000 |
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$3.90 |
| 2024 |
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Costless Collars |
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NYMEX Henry Hub |
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60,000 |
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$3.17 / $3.96 |
Additionally, subsequent to year end, the Company restructured a portion of its natural gas sold call position by buying back a portion of its 2023 natural gas sold call position, and selling additional natural gas calls for 2023 and 2025. The following table summarizes these transactions:
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| Period |
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Type of Derivative Instrument |
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Index |
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Daily Volume (MMBtu) |
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Weighted
Average Price |
| 2023 |
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Purchased Gas Call Options |
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NYMEX Henry Hub |
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134,137 |
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$2.90 |
| 2023 |
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Sold Gas Call Options |
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NYMEX Henry Hub |
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134,137 |
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$3.70 |
| 2025 |
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Sold Gas Call Options |
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NYMEX Henry Hub |
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160,000 |
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$6.04 |
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| 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, 2022 and 2021 (in thousands):
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Successor |
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December 31, 2022 |
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December 31, 2021 |
| Short-term derivative asset |
$ |
87,508 |
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$ |
4,695 |
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| Long-term derivative asset |
26,525 |
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18,664 |
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| Short-term derivative liability |
(343,522) |
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(240,735) |
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| Long-term derivative liability |
(118,404) |
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(184,580) |
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| Total commodity derivative position |
$ |
(347,893) |
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$ |
(401,956) |
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| 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 year ended December 31, 2022, Prior Successor Period, Prior Predecessor Period and year ended December 31, 2020 (in thousands):
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Successor |
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Predecessor |
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Year Ended December 31, 2022 |
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Period from May 18, 2021 through December 31, 2021 |
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Period from January 1, 2021 through May 17, 2021 |
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Year Ended December 31, 2020 |
| Natural gas derivatives - fair value gains (losses) |
$ |
32,797 |
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$ |
(223,512) |
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$ |
(123,080) |
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$ |
(89,310) |
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| Natural gas derivatives - settlement (losses) gains |
(1,002,098) |
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(300,172) |
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(3,362) |
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113,075 |
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| Total (losses) gains on natural gas derivatives |
(969,301) |
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(523,684) |
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(126,442) |
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23,765 |
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| Oil and condensate derivatives - fair value gains (losses) |
6,618 |
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(5,128) |
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(6,126) |
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(2,952) |
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| Oil and condensate derivatives - settlement (losses) gains |
(39,163) |
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(9,720) |
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— |
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46,462 |
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| Total (losses) gains on oil and condensate derivatives |
(32,545) |
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(14,848) |
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(6,126) |
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43,510 |
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| NGL derivatives - fair value gains (losses) |
14,648 |
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(5,322) |
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(4,671) |
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(461) |
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| NGL derivatives - settlement losses |
(12,549) |
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(12,965) |
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— |
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(142) |
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| Total gains (losses) on NGL derivatives |
2,099 |
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(18,287) |
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(4,671) |
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(603) |
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| Contingent consideration arrangement - fair value losses |
— |
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— |
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— |
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(1,381) |
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| Total (losses) gains on natural gas, oil and NGL derivatives |
$ |
(999,747) |
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$ |
(556,819) |
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$ |
(137,239) |
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$ |
65,291 |
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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 (in thousands):
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Successor |
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As of December 31, 2022 |
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Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |
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Gross Amounts Subject to Master Netting Agreements |
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Net Amount |
| Derivative assets |
$ |
114,033 |
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$ |
(80,345) |
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$ |
33,688 |
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| Derivative liabilities |
$ |
(461,926) |
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$ |
80,345 |
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$ |
(381,581) |
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Successor |
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As of December 31, 2021 |
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Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |
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Gross Amounts Subject to Master Netting Agreements |
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Net Amount |
| Derivative assets |
$ |
23,359 |
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$ |
(20,265) |
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$ |
3,094 |
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| Derivative liabilities |
$ |
(425,315) |
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$ |
20,265 |
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$ |
(405,050) |
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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 (in thousands):
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Successor |
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As of December 31, 2022 |
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Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |
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Gross Amounts Subject to Master Netting Agreements |
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Net Amount |
| Derivative assets |
$ |
114,033 |
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$ |
(80,345) |
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$ |
33,688 |
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| Derivative liabilities |
$ |
(461,926) |
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$ |
80,345 |
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$ |
(381,581) |
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Successor |
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As of December 31, 2021 |
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Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |
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Gross Amounts Subject to Master Netting Agreements |
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Net Amount |
| Derivative assets |
$ |
23,359 |
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$ |
(20,265) |
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$ |
3,094 |
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| Derivative liabilities |
$ |
(425,315) |
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$ |
20,265 |
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$ |
(405,050) |
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