Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS (Tables)

v3.23.1
DERIVATIVE INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2023
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule of Open Fixed Price Swap Positions and Natural Gas Basis Swap Positions
The Company has entered into natural gas, crude oil and NGL fixed price swap contracts based off the NYMEX Henry Hub, NYMEX WTI and Mont Belvieu C3 indices. Below is a summary of the Company’s open fixed price swap positions as of March 31, 2023. 
Index Daily Volume Weighted
Average Price
Natural Gas (MMBtu/d) ($/MMBtu)
Remaining 2023 NYMEX Henry Hub 220,145  $ 4.13 
2024 NYMEX Henry Hub 234,973  $ 4.26 
2025 NYMEX Henry Hub 20,000  $ 4.10 
Oil (Bbl/d) ($/Bbl)
Remaining 2023 NYMEX WTI 3,000  $ 74.47 
NGL (Bbl/d) ($/Bbl)
Remaining 2023 Mont Belvieu C3 3,000  $ 38.07 
The Company has entered into natural gas costless collars based off the NYMEX Henry Hub natural gas index. Below is a summary of the Company's costless collar positions as of March 31, 2023.
Index Daily Volume Weighted Average Floor Price Weighted Average Ceiling Price
Natural Gas (MMBtu/d) ($/MMBtu) ($/MMBtu)
Remaining 2023 NYMEX Henry Hub 285,000  $ 2.93  $ 4.78 
2024 NYMEX Henry Hub 180,000  $ 3.43  $ 5.49 
Below is a summary of the Company's open sold call option positions as of March 31, 2023.
Index Daily Volume Weighted Average Price
Natural Gas (MMBtu/d) ($/MMBtu)
Remaining 2023 NYMEX Henry Hub 407,925  $ 3.21 
2024 NYMEX Henry Hub 202,000  $ 3.33 
2025 NYMEX Henry Hub 193,315  $ 5.80 
Schedule of Natural Gas Basis Swap Positions
In addition, the Company has entered into natural gas basis swap positions. These instruments are arrangements that guarantee a fixed price differential to NYMEX Henry Hub from a specified delivery point. The Company receives the fixed price differential and pays the floating market price differential to the counterparty for the hedged community. As of March 31, 2023, 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)
Remaining 2023 Rex Zone 3 NYMEX Plus Fixed Spread 140,000  $ (0.22)
Remaining 2023 NGPL TXOK NYMEX Plus Fixed Spread 80,000  $ (0.35)
Remaining 2023 TETCO M2 NYMEX Plus Fixed Spread 170,145  $ (0.91)
2024 Rex Zone 3 NYMEX Plus Fixed Spread 70,000  $ (0.15)
2024 NGPL TXOK NYMEX Plus Fixed Spread 60,000  $ (0.31)
2024 TETCO M2 NYMEX Plus Fixed Spread 69,945  $ (0.89)
Subsequent to March 31, 2023 as of April 26, 2023, the Company entered into the following derivative contracts:
Period Type of Derivative Instrument Index Daily Volume (MMBtu) Weighted
Average Price
2023 Basis Swaps TETCO M2 13,382  $(0.88)
2024 Basis Swaps Rex Zone 3 20,000  $(0.15)
2025 Swaps NYMEX Henry Hub 50,000  $4.08
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 March 31, 2023 and December 31, 2022 (in thousands):
March 31, 2023 December 31, 2022
Short-term derivative asset $ 137,869  $ 87,508 
Long-term derivative asset 62,834  26,525 
Short-term derivative liability (80,858) (343,522)
Long-term derivative liability (90,044) (118,404)
Total commodity derivative position $ 29,801  $ (347,893)
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 three months ended March 31, 2023 and 2022 (in thousands):
Net gain (loss) on derivative instruments
Three Months Ended March 31, 2023 Three Months Ended March 31, 2022
Natural gas derivatives - fair value gains (losses) $ 374,148  $ (619,319)
Natural gas derivatives - settlement losses (173) (111,157)
Total gains (losses) on natural gas derivatives 373,975  (730,476)
Oil derivatives - fair value gains (losses) 4,733  (29,853)
Oil derivatives - settlement losses (443) (8,144)
Total gains (losses) on oil derivatives 4,290  (37,997)
NGL derivatives - fair value losses (1,186) (14,333)
NGL derivatives - settlement gains (losses) 982  (5,745)
Total losses on NGL derivatives (204) (20,078)
Total gains (losses) on natural gas, oil and NGL derivatives $ 378,061  $ (788,551)
Schedule of Recognized Derivative Assets The following tables present 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):
As of March 31, 2023
Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets Gross Amounts Subject to Master Netting Agreements Net Amount
Derivative assets $ 200,703  $ (79,841) $ 120,862 
Derivative liabilities $ (170,902) $ 79,841  $ (91,061)
As of December 31, 2022
Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets Gross Amounts Subject to Master Netting Agreements Net Amount
Derivative assets $ 114,033  $ (80,345) $ 33,688 
Derivative liabilities $ (461,926) $ 80,345  $ (381,581)
Schedule of Recognized Derivative Liabilities The following tables present 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):
As of March 31, 2023
Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets Gross Amounts Subject to Master Netting Agreements Net Amount
Derivative assets $ 200,703  $ (79,841) $ 120,862 
Derivative liabilities $ (170,902) $ 79,841  $ (91,061)
As of December 31, 2022
Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets Gross Amounts Subject to Master Netting Agreements Net Amount
Derivative assets $ 114,033  $ (80,345) $ 33,688 
Derivative liabilities $ (461,926) $ 80,345  $ (381,581)