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PROPERTY AND EQUIPMENT | 12 Months Ended
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Dec. 31, 2022
Property, Plant and Equipment [Abstract] |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The major categories of property and equipment and related accumulated DD&A and impairment as of December 31, 2022 and 2021 are as follows (in thousands):
| Successor
| December 31, 2022 |  | December 31, 2021
Proved oil and natural gas properties | $ | 2,418,666 |  |  | $ | 1,917,833 |
Unproved properties | 178,472 |  |  | 211,007 |
Other depreciable property and equipment | 5,977 |  |  | 4,943 |
Land | 386 |  |  | 386 |
Total property and equipment | 2,603,501 |  |  | 2,134,169 |
Accumulated DD&A and impairment | (545,771) |  |  | (278,341) |
Property and equipment, net | $ | 2,057,730 |  |  | $ | 1,855,828 |
Oil and Natural Gas Properties 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. At December 31, 2022, the net book value of the Company's oil and gas properties was below the calculated ceiling for the period leading up to December 31, 2022. As a result, the Company did not record an impairment of its oil and natural gas properties for the year ended December 31, 2022. During the Prior Successor Period and the year ended December 31, 2020, the Company incurred $117.8 million and $1.4 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. The Company did not record an impairment of its oil and natural gas properties during the Prior Predecessor Period. 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 $20.2 million, $11.9 million, $8.0 million and $25.0 million for the year ended December 31, 2022, Prior Successor Period, Prior Predecessor Period and the year ended December 31, 2020, 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 $0.74, $0.69, $0.45 and $0.61 per Mcfe for the year ended December 31, 2022, Prior Successor Period, Prior Predecessor Period and the year ended December 31, 2020, respectively. The following is a summary of Gulfport’s oil and natural gas properties not subject to amortization as of December 31, 2022 (in thousands):
| Costs Incurred in
| Year Ended December 31, 2022 |  | Period from May 18, 2021 through December 31, 2021 |  |  | Fresh Start Adjustments (May 17, 2021)(1) |  | Total
Acquisition costs | $ | 17,288 |  |  | $ | 8,687 |  |  |  | $ | 152,456 |  |  | $ | 178,431 |
Exploration costs | — |  |  | — |  |  |  | — |  |  | — |
Development costs | 16 |  |  | 25 |  |  |  | — |  |  | 41 |
Capitalized interest | — |  |  | — |  |  |  | — |  |  | — |
Total oil and natural gas properties not subject to amortization | $ | 17,304 |  |  | $ | 8,712 |  |  |  | $ | 152,456 |  |  | $ | 178,472 |
_____________________ (1) Reflects carrying values of our unproved properties as a result of the application of fresh start accounting upon emergence from bankruptcy (see Note 3 for additional information) that remain in unproved properties as of December 31, 2022. The following table summarizes the Company’s non-producing properties excluded from amortization by area as of December 31, 2022 and December 31, 2021 (in thousands):
| Successor
| December 31, 2022 |  | December 31, 2021
Utica | $ | 147,370 |  |  | $ | 175,028 |
SCOOP | 31,102 |  |  | 35,975 |
Other | — |  |  | 4 |
| $ | 178,472 |  |  | $ | 211,007 |
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. Asset Retirement Obligation A reconciliation of the Company's asset retirement obligation for the year ended December 31, 2022, Prior Successor Period and Prior Predecessor Period is as follows (in thousands):
Asset retirement obligation at January 1, 2021 (Predecessor) | $ | 63,566 |
Liabilities incurred | 546 |
Accretion expense | 1,229 |
Ending balance as of May 17, 2021 (Predecessor) | $ | 65,341 |
Fresh start adjustments(1) | (46,257) |
Asset retirement obligation at May 18, 2021 (Successor) | $ | 19,084 |
Liabilities incurred | 204 |
Accretion expense | 1,214 |
Revisions in estimated cash flows(2) | 7,762 |
Asset retirement obligation at December 31, 2021 (Successor) | $ | 28,264 |
Liabilities incurred | 96 |
Liabilities removed due to divestitures | (7) |
Accretion expense | 2,746 |
Revisions in estimated cash flows(2) | 2,072 |
Asset retirement obligation at December 31, 2022 (Successor) | $ | 33,171 |
_____________________ (1) As discussed in Note 3, the Company recorded its asset retirement obligation at fair value as of the Emergence Date. (2) Revisions represent changes in the present value of liabilities resulting from changes in estimated costs.

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