XML 45 R35.htm IDEA: XBRL DOCUMENT
v3.23.3

DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2023
General Discussion of Derivative Instruments and Hedging Activities [Abstract] |
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, 2023.
| Index |  | Daily Volume |  | Weighted Average Price
Natural Gas |  |  | (MMBtu/d) |  | ($/MMBtu)
Remaining 2023 | NYMEX Henry Hub |  | 280,000 |  |  | $ | 4.36 |
2024 | NYMEX Henry Hub |  | 324,973 |  |  | $ | 4.05 |
2025 | NYMEX Henry Hub |  | 110,000 |  |  | $ | 4.09 |
Oil |  |  | (Bbl/d) |  | ($/Bbl)
Remaining 2023 | NYMEX WTI |  | 3,000 |  |  | $ | 74.47 |
2024 | NYMEX WTI |  | 500 |  |  | $ | 77.50 |
NGL |  |  | (Bbl/d) |  | ($/Bbl)
Remaining 2023 | Mont Belvieu C3 |  | 3,000 |  |  | $ | 38.07 |
2024 | Mont Belvieu C3 |  | 2,000 |  |  | $ | 30.30 |
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, 2023.
| Index |  | Daily Volume |  | Weighted Average Floor Price |  | Weighted Average Ceiling Price
Natural Gas |  |  | (MMBtu/d) |  | ($/MMBtu) |  | ($/MMBtu)
Remaining 2023 | NYMEX Henry Hub |  | 285,000 |  |  | $ | 2.93 |  |  | $ | 4.78 |
2024 | NYMEX Henry Hub |  | 180,000 |  |  | $ | 3.43 |  |  | $ | 5.49 |
2025 | NYMEX Henry Hub |  | 100,000 |  |  | $ | 3.62 |  |  | $ | 4.54 |
Oil |  |  | (Bbl/d) |  | ($/Bbl) |  | ($/Bbl)
2024 | NYMEX WTI |  | 1,000 |  |  | $ | 62.00 |  |  | $ | 80.00 |
Below is a summary of the Company's open sold call option positions as of September 30, 2023.
| Index |  | Daily Volume |  | Weighted Average Price
Natural Gas |  |  | (MMBtu/d) |  | ($/MMBtu)
Remaining 2023 | NYMEX Henry Hub |  | 407,925 |  |  | $ | 3.21 |
2024 | NYMEX Henry Hub |  | 202,000 |  |  | $ | 3.33 |
2025 | NYMEX Henry Hub |  | 193,315 |  |  | $ | 5.80 |
Schedule of Natural Gas Basis Swap Positions | As of September 30, 2023, 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)
Remaining 2023 | Rex Zone 3 |  | NYMEX Plus Fixed Spread |  | 140,000 |  |  | $ | (0.22) |
Remaining 2023 | NGPL TXOK |  | NYMEX Plus Fixed Spread |  | 80,000 |  |  | $ | (0.35) |
Remaining 2023 | TETCO M2 |  | NYMEX Plus Fixed Spread |  | 210,000 |  |  | $ | (0.91) |
2024 | Rex Zone 3 |  | NYMEX Plus Fixed Spread |  | 150,000 |  |  | $ | (0.15) |
2024 | NGPL TXOK |  | NYMEX Plus Fixed Spread |  | 70,000 |  |  | $ | (0.31) |
2024 | TETCO M2 |  | NYMEX Plus Fixed Spread |  | 89,945 |  |  | $ | (0.91) |
Subsequent to September 30, 2023, as of October 26, 2023, the Company entered into the following derivative contracts:
Period |  | Type of Derivative Instrument |  | Index |  | Daily Volume |  | Weighted Average Price
Natural Gas |  |  |  |  |  | (MMBtu/d) |  | ($/MMBtu)
2024 |  | Costless Collars |  | NYMEX Henry Hub |  | 45,000 |  |  | $3.10 / $3.77
2024 |  | Basis Swaps |  | TETCO M2 |  | 50,000 |  |  | $(0.99)
2025 |  | Swaps |  | NYMEX Henry Hub |  | 40,000 |  |  | $4.04
NGL |  |  |  |  |  | (Bbl/d) |  | ($/Bbl)
2024 |  | Swaps |  | Mont Belvieu C3 |  | 500 |  |  | $30.03
2025 |  | Swaps |  | Mont Belvieu C3 |  | 1,000 |  |  | $30.03
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, 2023 and December 31, 2022 (in thousands):
| September 30, 2023 |  | December 31, 2022
Short-term derivative asset | $ | 136,706 |  |  | $ | 87,508 |
Long-term derivative asset | 32,687 |  |  | 26,525 |
Short-term derivative liability | (50,947) |  |  | (343,522) |
Long-term derivative liability | (54,020) |  |  | (118,404) |
Total commodity derivative position | $ | 64,426 |  |  | $ | (347,893) |
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, 2023 and 2022 (in thousands):
| Net gain (loss) on derivative instruments
| Three Months Ended September 30, 2023 |  | Three Months Ended September 30, 2022
Natural gas derivatives - fair value gains (losses) | $ | 4,534 |  |  | $ | (161,532) |
Natural gas derivatives - settlement gains (losses) | 48,522 |  |  | (354,084) |
Total gains (losses) on natural gas derivatives | 53,056 |  |  | (515,616) |
Oil derivatives - fair value (losses) gains | (8,414) |  |  | 33,545 |
Oil derivatives - settlement losses | (2,130) |  |  | (9,035) |
Total (losses) gains on oil and condensate derivatives | (10,544) |  |  | 24,510 |
NGL derivatives - fair value (losses) gains | (5,763) |  |  | 19,043 |
NGL derivatives - settlement gains (losses) | 2,668 |  |  | (2,832) |
Total (losses) gains on NGL derivatives | (3,095) |  |  | 16,211 |
Total gains (losses) on natural gas, oil and NGL derivatives | $ | 39,417 |  |  | $ | (474,895) |
| Net gain (loss) on derivative instruments
| Nine Months Ended September 30, 2023 |  | Nine Months Ended September 30, 2022
Natural gas derivatives - fair value gains (losses) | $ | 416,473 |  |  | $ | (659,193) |
Natural gas derivatives - settlement gains (losses) | 97,794 |  |  | (754,177) |
Total gains (losses) on natural gas derivatives | 514,267 |  |  | (1,413,370) |
Oil derivatives - fair value (losses) gains | (1,424) |  |  | 8,076 |
Oil derivatives - settlement losses | (2,204) |  |  | (31,460) |
Total losses on oil and condensate derivatives | (3,628) |  |  | (23,384) |
NGL derivatives - fair value (losses) gains | (2,730) |  |  | 14,216 |
NGL derivatives - settlement gains (losses) | 6,357 |  |  | (13,779) |
Total gains on NGL derivatives | 3,627 |  |  | 437 |
Total gains (losses) on natural gas, oil and NGL derivatives | $ | 514,266 |  |  | $ | (1,436,317) |
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):
| As of September 30, 2023
| Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |  | Gross Amounts Subject to Master Netting Agreements |  | Net Amount
Derivative assets | $ | 169,393 |  |  | $ | (52,741) |  |  | $ | 116,652 |
Derivative liabilities | $ | (104,967) |  |  | $ | 52,741 |  |  | $ | (52,226) |
| As of December 31, 2022
| Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |  | Gross Amounts Subject to Master Netting Agreements |  | Net Amount
Derivative assets | $ | 114,033 |  |  | $ | (80,345) |  |  | $ | 33,688 |
Derivative liabilities | $ | (461,926) |  |  | $ | 80,345 |  |  | $ | (381,581) |
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):
| As of September 30, 2023
| Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |  | Gross Amounts Subject to Master Netting Agreements |  | Net Amount
Derivative assets | $ | 169,393 |  |  | $ | (52,741) |  |  | $ | 116,652 |
Derivative liabilities | $ | (104,967) |  |  | $ | 52,741 |  |  | $ | (52,226) |
| As of December 31, 2022
| Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |  | Gross Amounts Subject to Master Netting Agreements |  | Net Amount
Derivative assets | $ | 114,033 |  |  | $ | (80,345) |  |  | $ | 33,688 |
Derivative liabilities | $ | (461,926) |  |  | $ | 80,345 |  |  | $ | (381,581) |

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

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C + Details
Name: | us-gaap_ScheduleOfCashFlowHedgesIncludedInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -SubTopic 10 -Topic 815 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1B Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-8 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1A + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration