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PROPERTY AND EQUIPMENT | 12 Months Ended
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Dec. 31, 2023
Property, Plant and Equipment [Abstract] |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The major categories of property and equipment and related accumulated DD&A are as follows (in thousands):
| Successor
| December 31, 2023 |  | December 31, 2022
Proved oil and natural gas properties | $ | 2,904,519 |  |  | $ | 2,418,666 |
Unproved properties | 204,233 |  |  | 178,472 |
Other depreciable property and equipment | 8,779 |  |  | 5,977 |
Land | 386 |  |  | 386 |
Total property and equipment | 3,117,917 |  |  | 2,603,501 |
Accumulated DD&A | (865,618) |  |  | (545,771) |
Property and equipment, net | $ | 2,252,299 |  |  | $ | 2,057,730 |
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. During 2023, the net book value of the Company's oil and gas properties was below the calculated ceiling for each quarter of 2023. As a result, the Company did not record an impairment of its oil and natural gas properties during 2023. Lower natural gas, oil and NGL prices can reduce the value of the Company’s assets. In addition to commodity prices, the Company’s production rates, levels of proved reserves, future development costs, transfers of unevaluated properties and other factors will determine its actual ceiling test calculation and impairment analysis in future periods. Given the decline of commodity prices in 2023 and early 2024, non-cash impairments in future periods could occur if the trailing 12-month commodity prices decrease as compared to the average used in prior periods. Additionally, the company did not record an impairment of its oil and natural gas properties during 2022 or the Prior Predecessor Period. During the Prior Successor Period, the Company incurred $117.8 million of impairments 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. 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 $22.8 million, $20.2 million, $11.9 million and $8.0 million for the years ended December 31, 2023, December 31, 2022, Prior Successor Period and Prior Predecessor Period, 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 $0.83, $0.74, $0.69 and $0.45 per Mcfe for the years ended December 31, 2023, December 31, 2022, Prior Successor Period and Prior Predecessor Period, respectively. The following is a summary of Gulfport’s oil and natural gas properties not subject to amortization as of December 31, 2023 (in thousands):
| Costs Incurred in
| Year Ended December 31, 2023 |  | Year Ended December 31, 2022 |  | Period from May 18, 2021 through December 31, 2021 |  |  | Fresh Start Adjustments (May 17, 2021)(1) |  | Total
Acquisition costs | $ | 58,002 |  |  | $ | 17,288 |  |  | $ | 8,687 |  |  |  | $ | 117,270 |  |  | $ | 201,247 |
Exploration costs | — |  |  | — |  |  | — |  |  |  | — |  |  | — |
Development costs | 535 |  |  | 6 |  |  | 15 |  |  |  | — |  |  | 556 |
Capitalized interest | 2,430 |  |  | — |  |  | — |  |  |  | — |  |  | 2,430 |
Total oil and natural gas properties not subject to amortization | $ | 60,967 |  |  | $ | 17,294 |  |  | $ | 8,702 |  |  |  | $ | 117,270 |  |  | $ | 204,233 |
_____________________ (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, 2023. The following table summarizes the Company’s non-producing properties excluded from amortization by area (in thousands):
| Successor
| December 31, 2023 |  | December 31, 2022
Utica & Marcellus | $ | 177,888 |  |  | $ | 147,370 |
SCOOP | 26,345 |  |  | 31,102 |
Total unproved properties | $ | 204,233 |  |  | $ | 178,472 |
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/Marcellus have five-year extension terms, which could extend this time frame beyond five years. Asset Retirement Obligation The following table provides a reconciliation of the Company's asset retirement obligation for the years ended December 31, 2023 and December 31, 2022 (in thousands):
| Successor
| Year Ended December 31, 2023 |  | Year Ended December 31, 2022
Asset retirement obligation, beginning of period | $ | 33,171 |  |  | $ | 28,264 |
Liabilities incurred | 588 |  |  | 96 |
Liabilities settled | (604) |  |  | — |
Liabilities removed due to divestitures | (919) |  |  | (7) |
Accretion expense | 2,782 |  |  | 2,746 |
Revisions in estimated cash flows(1) | (5,077) |  |  | 2,072 |
Asset retirement obligation, end of period | $ | 29,941 |  |  | $ | 33,171 |
_____________________ (1) Revisions represent changes in the present value of liabilities resulting from changes in estimated costs.

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