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BASIS OF PRESENTATION | 9 Months Ended
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Sep. 30, 2022
Accounting Policies [Abstract] |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Description of Company Gulfport Energy Corporation (the "Company" or "Gulfport") is an independent natural gas-weighted exploration and production company focused on the production of natural gas, crude oil and NGL in the United States. The Company's principal properties are located in eastern Ohio targeting the Utica and in central Oklahoma targeting the SCOOP Woodford and SCOOP Springer formations. Gulfport filed for voluntary reorganization under Chapter 11 of the Bankruptcy Code on November 13, 2020, and subsequently operated as a debtor-in-possession, in accordance with applicable provisions of the Bankruptcy Code, until its emergence on May 17, 2021. The Company refers to the post-emergence reorganized organization in the condensed financial statements and footnotes as the "Successor" for periods subsequent to May 17, 2021, and the pre-emergence organization as "Predecessor" for periods on or prior to May 17, 2021. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Gulfport were prepared in accordance with GAAP and the rules and regulations of the SEC. This Quarterly Report on Form 10-Q (this “Form 10-Q”) relates to the financial position and periods as of and for the three months ended September 30, 2022 ("Current Successor Quarter"), as of and for the nine months ended September 30, 2022 ("Current Successor YTD Period"), May 18, 2021 through September 30, 2021 (“Prior Successor Period”), the three months ended September 30, 2021 ("Prior Successor Quarter"), and January 1, 2021 through May 17, 2021 (“Prior Predecessor YTD Period”). The Company's annual report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”) should be read in conjunction with this Form 10-Q. The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of our condensed consolidated financial statements and accompanying notes and include the accounts of our wholly-owned subsidiaries. Intercompany accounts and balances have been eliminated. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. Voluntary Reorganization Under Chapter 11 of the Bankruptcy Code In connection with the Company's emergence from bankruptcy and in accordance with ASC 852, the Company qualified for and applied fresh start accounting on the Emergence Date. For further information on the Company’s reorganization value and the resulting fresh start adjustments made on the Emergence Date, refer to the “Fresh Start Accounting” footnote in the notes to the consolidated financial statements in Item 8 of the Company’s 2021 Form 10-K. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consisted of the following at September 30, 2022 and December 31, 2021 (in thousands):
| Successor
| September 30, 2022 |  | December 31, 2021
Accounts payable and other accrued liabilities | $ | 202,838 |  |  | $ | 143,938 |
Revenue payable and suspense | 222,729 |  |  | 180,857 |
Accrued contract rejection damages and shares held in reserve | 40,996 |  |  | 69,216 |
Total accounts payable and accrued liabilities | $ | 466,563 |  |  | $ | 394,011 |
Reorganization Items, Net In the Prior Predecessor YTD Period, the Company incurred significant expenses related to its Chapter 11 filing. The amount of these items, which were incurred in reorganization items, net within the Company's accompanying consolidated statements of operations, significantly affected the Company's statements of operations. The Company also incurred adjustments for allowable claims related to its legal proceedings and executory contracts approved for rejection by the Bankruptcy Court. The following table summarizes the components in reorganization items, net included in the Company's consolidated statements of operations for the Current Successor YTD Period, Prior Successor Period, and Prior Predecessor YTD Period (in thousands):
| Successor |  |  | Predecessor
| Nine Months Ended September 30, 2022 |  | Period from May 18, 2021 through September 30, 2021 |  |  | Period from January 1, 2021 through May 17, 2021
Legal and professional advisory fees | $ | — |  |  | $ | — |  |  |  | $ | 81,565 |
Net gain on liabilities subject to compromise | — |  |  | — |  |  |  | (575,182) |
Fresh start adjustments, net | — |  |  | — |  |  |  | 160,756 |
Elimination of predecessor accumulated other comprehensive income | — |  |  | — |  |  |  | 40,430 |
Debt issuance costs | — |  |  | — |  |  |  | 3,150 |
Other items, net | — |  |  | — |  |  |  | 22,383 |
Reorganization items, net | $ | — |  |  | $ | — |  |  |  | $ | (266,898) |
Other, net Other, net included in the Company's consolidated statements of operations for the Current Successor YTD period included $11.5 million related to the TC claim distribution received in February 2022 as discussed in Note 7. Supplemental Cash Flow and Non-Cash Information (in thousands)
| Successor |  |  | Predecessor
| Nine Months Ended September 30, 2022 |  | Period from May 18, 2021 through September 30, 2021 |  |  | Period from January 1, 2021 through May 17, 2021
Supplemental disclosure of cash flow information: |  |  |  |  |  |
Cash paid for reorganization items, net | $ | — |  |  | $ | 42,202 |  |  |  | $ | 87,199 |
Interest payments | $ | 30,102 |  |  | $ | 6,465 |  |  |  | $ | 7,272 |
Changes in operating assets and liabilities: |  |  |  |  |  |
(Increase) decrease in accounts receivable - oil, natural gas, and natural gas liquids sales | $ | (84,674) |  |  | $ | (5,230) |  |  |  | $ | (60,832) |
(Increase) decrease in accounts receivable - joint interest and other | $ | (14,947) |  |  | $ | 5,536 |  |  |  | $ | (3,005) |
Increase (decrease) in accounts payable and accrued liabilities | $ | 65,648 |  |  | $ | (48,903) |  |  |  | $ | 79,193 |
Decrease in prepaid expenses | $ | 3,061 |  |  | $ | 7,231 |  |  |  | $ | 135,471 |
Decrease in other assets | $ | 1,352 |  |  | $ | 106 |  |  |  | $ | 3,067 |
Total changes in operating assets and liabilities | $ | (29,560) |  |  | $ | (41,260) |  |  |  | $ | 153,894 |
Supplemental disclosure of non-cash transactions: |  |  |  |  |  |
Capitalized stock-based compensation | $ | 2,141 |  |  | $ | 484 |  |  |  | $ | 930 |
Asset retirement obligation capitalized | $ | 53 |  |  | $ | 55 |  |  |  | $ | 546 |
Asset retirement obligation removed due to divestiture | $ | (7) |  |  | $ | — |  |  |  | $ | — |
Interest capitalized | $ | — |  |  | $ | 117 |  |  |  | $ | — |
Release of common stock held in reserve | $ | 28,220 |  |  | $ | 23,893 |  |  |  | $ | — |
Foreign currency translation gain on equity method investments | $ | — |  |  | $ | — |  |  |  | $ | 2,570 |

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- Definition The entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Accounting policies describe all significant accounting policies of the reporting entity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI https://asc.fasb.org/topic&trid=2122369 + Details
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