DERIVATIVE INSTRUMENTS (Tables)
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9 Months Ended |
Sep. 30, 2024 |
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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, 2024.
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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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($/MMBtu) |
| Remaining 2024 |
NYMEX Henry Hub |
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400,000 |
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$ |
3.77 |
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| 2025 |
NYMEX Henry Hub |
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250,000 |
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$ |
3.82 |
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| 2026 |
NYMEX Henry Hub |
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160,000 |
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$ |
3.59 |
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| Oil |
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(Bbl/d) |
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($/Bbl) |
| Remaining 2024 |
NYMEX WTI |
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500 |
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$ |
77.50 |
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| 2025 |
NYMEX WTI |
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2,000 |
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$ |
74.50 |
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| NGL |
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(Bbl/d) |
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($/Bbl) |
| Remaining 2024 |
Mont Belvieu C3 |
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2,500 |
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$ |
30.25 |
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| 2025 |
Mont Belvieu C3 |
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2,000 |
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$ |
30.09 |
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The Company has entered into natural gas and crude oil costless collars based off the NYMEX Henry Hub and NYMEX WTI indices. Below is a summary of the Company's costless collar positions as of September 30, 2024.
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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) |
| Remaining 2024 |
NYMEX Henry Hub |
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225,000 |
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$ |
3.36 |
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$ |
5.14 |
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| 2025 |
NYMEX Henry Hub |
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220,000 |
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$ |
3.37 |
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$ |
4.23 |
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| 2026 |
NYMEX Henry Hub |
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70,000 |
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$ |
3.31 |
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$ |
4.06 |
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| Oil |
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(Bbl/d) |
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($/Bbl) |
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($/Bbl) |
| Remaining 2024 |
NYMEX WTI |
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1,000 |
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$ |
62.00 |
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$ |
80.00 |
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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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($/MMBtu) |
| Remaining 2024 |
NYMEX Henry Hub |
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202,000 |
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$ |
3.33 |
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| 2025 |
NYMEX Henry Hub |
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193,315 |
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$ |
5.80 |
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| Schedule of Natural Gas Basis Swap Positions |
As of September 30, 2024, 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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($/MMBtu) |
| Remaining 2024 |
Rex Zone 3 |
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NYMEX Plus Fixed Spread |
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150,000 |
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$ |
(0.15) |
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| Remaining 2024 |
NGPL TXOK |
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NYMEX Plus Fixed Spread |
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70,000 |
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$ |
(0.31) |
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| Remaining 2024 |
TETCO M2 |
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NYMEX Plus Fixed Spread |
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230,000 |
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$ |
(0.94) |
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| 2025 |
Rex Zone 3 |
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NYMEX Plus Fixed Spread |
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90,000 |
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$ |
(0.21) |
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| 2025 |
NGPL TXOK |
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NYMEX Plus Fixed Spread |
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40,000 |
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$ |
(0.29) |
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| 2025 |
TETCO M2 |
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NYMEX Plus Fixed Spread |
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230,000 |
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$ |
(0.96) |
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| 2026 |
TETCO M2 |
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NYMEX Plus Fixed Spread |
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110,000 |
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$ |
(0.99) |
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Subsequent to September 30, 2024, as of October 28, 2024, 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 |
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Weighted
Average Price |
Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
2025 |
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Basis Swaps |
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Rex Zone 3 |
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20,000 |
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$(0.18) |
2025 |
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Basis Swaps |
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TGP 500 |
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10,000 |
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$0.31 |
2025 |
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Basis Swaps |
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Transco Station 85 |
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5,000 |
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$0.38 |
2026 |
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Basis Swaps |
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Rex Zone 3 |
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40,000 |
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$(0.19) |
2026 |
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Basis Swaps |
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TGP 500 |
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10,000 |
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$0.54 |
2026 |
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Basis Swaps |
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Transco Station 85 |
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5,000 |
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$0.52 |
2026 |
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Basis Swaps |
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TETCO M2 |
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20,000 |
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$(0.94) |
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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, 2024 and December 31, 2023 (in thousands):
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September 30, 2024 |
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December 31, 2023 |
| Short-term derivative asset |
$ |
111,076 |
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$ |
233,226 |
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| Long-term derivative asset |
23,073 |
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47,566 |
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| Short-term derivative liability |
(36,758) |
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(21,963) |
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| Long-term derivative liability |
(23,618) |
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(18,602) |
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| Total commodity derivative position |
$ |
73,773 |
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$ |
240,227 |
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| Schedule of Net 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 and nine months ended September 30, 2024 and 2023 (in thousands):
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Net gain (loss) on derivative instruments |
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Three Months Ended September 30, 2024 |
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Three Months Ended September 30, 2023 |
| Natural gas derivatives - fair value (losses) gains |
$ |
(57,168) |
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$ |
4,534 |
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| Natural gas derivatives - settlement gains |
84,943 |
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48,522 |
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| Total gains on natural gas derivatives |
27,775 |
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53,056 |
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| Oil derivatives - fair value gains (losses) |
6,698 |
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(8,414) |
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| Oil derivatives - settlement gains (losses) |
93 |
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(2,130) |
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| Total gains (losses) on oil and condensate derivatives |
6,791 |
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(10,544) |
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| NGL derivatives - fair value gains (losses) |
3,559 |
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(5,763) |
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| NGL derivatives - settlement (losses) gains |
(159) |
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2,668 |
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| Total gains (losses) on NGL derivatives |
3,400 |
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(3,095) |
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| Total gains on natural gas, oil and NGL derivatives |
$ |
37,966 |
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$ |
39,417 |
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Net gain (loss) on derivative instruments |
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Nine Months Ended September 30, 2024 |
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Nine Months Ended September 30, 2023 |
| Natural gas derivatives - fair value (losses) gains |
$ |
(168,516) |
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$ |
416,473 |
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| Natural gas derivatives - settlement gains |
242,645 |
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97,794 |
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| Total gains on natural gas derivatives |
74,129 |
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514,267 |
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| Oil derivatives - fair value gains (losses) |
4,832 |
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(1,424) |
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| Oil derivatives - settlement losses |
(166) |
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(2,204) |
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| Total gains (losses) on oil and condensate derivatives |
4,666 |
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(3,628) |
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| NGL derivatives - fair value losses |
(2,771) |
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(2,730) |
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| NGL derivatives - settlement (losses) gains |
(1,537) |
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6,357 |
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| Total (losses) gains on NGL derivatives |
(4,308) |
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3,627 |
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| Total gains on natural gas, oil and NGL derivatives |
$ |
74,487 |
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$ |
514,266 |
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| 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):
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As of September 30, 2024 |
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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 |
$ |
134,149 |
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$ |
(56,232) |
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$ |
77,917 |
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| Derivative liabilities |
$ |
(60,376) |
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$ |
56,232 |
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$ |
(4,144) |
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As of December 31, 2023 |
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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 |
$ |
280,792 |
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$ |
(30,866) |
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$ |
249,926 |
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| Derivative liabilities |
$ |
(40,565) |
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$ |
30,866 |
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$ |
(9,699) |
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| 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):
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As of September 30, 2024 |
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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 |
$ |
134,149 |
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$ |
(56,232) |
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$ |
77,917 |
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| Derivative liabilities |
$ |
(60,376) |
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$ |
56,232 |
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$ |
(4,144) |
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As of December 31, 2023 |
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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 |
$ |
280,792 |
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$ |
(30,866) |
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$ |
249,926 |
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| Derivative liabilities |
$ |
(40,565) |
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$ |
30,866 |
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$ |
(9,699) |
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