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DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended
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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) |

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