XML 32 R12.htm IDEA: XBRL DOCUMENT
v3.20.4

Property and Equipment | 12 Months Ended
--- | ---
Dec. 31, 2020
Property, Plant and Equipment [Abstract] |
Property and Equipment | PROPERTY AND EQUIPMENT The major categories of property and equipment and related accumulated depletion, depreciation, amortization and impairment as of December 31, 2020 and 2019 are as follows:
| December 31,
| 2020 |  | 2019
| (In thousands)
Oil and natural gas properties | $ | 10,816,909 |  |  | $ | 10,595,735 |
Other depreciable property and equipment | 85,530 |  |  | 91,198 |
Land | 3,008 |  |  | 5,521 |
Total property and equipment | 10,905,447 |  |  | 10,692,454 |
Accumulated depletion, depreciation, amortization and impairment | (8,819,178) |  |  | (7,228,660) |
Property and equipment, net | $ | 2,086,269 |  |  | $ | 3,463,794 |
Under the full cost method of accounting, capitalized costs of oil and natural gas properties are subject to a quarterly full cost ceiling test, which is discussed in Note 1. During the years ended December 31, 2020 and 2019, the Company incurred $1.4 billion and $2.0 billion of impairments, respectively, as a result of its oil and natural gas properties exceeding its calculated ceiling. The lower ceiling values resulted primarily from significant decreases in the 12-month average trailing prices for natural gas, oil and NGL, which significantly reduced proved reserves values and proved reserves. No impairment of oil and natural gas properties was required under the ceiling test for the year ended December 31, 2018. General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. All general and administrative costs not directly associated with exploration and development activities were charged to expense as they were incurred. Capitalized general and administrative costs were approximately $25.0 million, $30.1 million and $37.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. The average depletion rate per Mcfe, which is a function of capitalized costs, future development costs and the related underlying reserves in the periods presented, was $0.61, $1.08 and $0.96 per Mcfe for the years ended December 31, 2020, 2019 and 2018, respectively. The following is a summary of Gulfport’s oil and natural gas properties not subject to amortization as of December 31, 2020:
| Costs Incurred in
| 2020 |  | 2019 |  | 2018 |  | Prior to 2018 |  | Total
| (In thousands)
Acquisition costs | $ | 18,485 |  |  | $ | 8,067 |  |  | $ | 98,876 |  |  | $ | 1,330,895 |  |  | $ | 1,456,323 |
Exploration costs | — |  |  | — |  |  | — |  |  | — |  |  | — |
Development costs | — |  |  | — |  |  | — |  |  | — |  |  | — |
Capitalized interest | — |  |  | 121 |  |  | 172 |  |  | 427 |  |  | 720 |
Total oil and natural gas properties not subject to amortization | $ | 18,485 |  |  | $ | 8,188 |  |  | $ | 99,048 |  |  | $ | 1,331,322 |  |  | $ | 1,457,043 |
The following table summarizes the Company’s non-producing properties excluded from amortization by area as of December 31, 2020:
| December 31, 2020
| (In thousands)
Utica | $ | 793,441 |
SCOOP | 662,614 |
Other | 988 |
| $ | 1,457,043 |
As of December 31, 2019, approximately $1.7 billion of non-producing property costs were subject to amortization. The Company evaluates the costs excluded from its amortization calculation at least annually. Subject to industry conditions and the level of the Company’s activities, the inclusion of most of the above referenced costs into the Company’s amortization calculation typically occurs within three to five years. However, the majority of the Company's non-producing leases in the Utica have five-year extension terms which could extend this time frame beyond five years. A reconciliation of the Company's asset retirement obligation for the years ended December 31, 2020 and 2019 is as follows:
| December 31,
| 2020 |  | 2019
| (In thousands)
Asset retirement obligation, beginning of period | $ | 60,355 |  |  | $ | 79,952 |
Liabilities incurred | 2,358 |  |  | 5,935 |
Liabilities settled | — |  |  | (273) |
Liabilities removed due to divestitures | (2,213) |  |  | (30,146) |
Accretion expense | 3,066 |  |  | 3,939 |
Revisions in estimated cash flows | — |  |  | 948 |
Total asset retirement obligation as of end of period | 63,566 |  |  | 60,355 |
Less: amounts reclassified to liabilities subject to compromise | (63,566) |  |  | — |
Total asset retirement obligation reflected as non-current liabilities | $ | — |  |  | $ | 60,355 |

X
- References No definition available. + Details
Name: | us-gaap_PropertyPlantAndEquipmentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=120429125&loc=d3e99893-112916 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=120429125&loc=SL120174063-112916 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 1 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120429125&loc=d3e99779-112916 + Details
Name: | us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration