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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)

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