XML 18 R7.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended
--- | ---
Jun. 30, 2024
Accounting Policies [Abstract] |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 Marcellus and in central Oklahoma targeting the SCOOP Woodford and Springer formations. 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 six months ended June 30, 2024, and the six months ended June 30, 2023. The Company's annual report on Form 10-K for the year ended December 31, 2023, 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. Recently Issued Accounting Pronouncements and Disclosure Rules In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (Topic 280). The amendments require disclosure for each reportable segment, the significant expense categories and amounts that are regularly provided to the chief operating decision-maker (CODM) and included in each reported measure of a segment’s profit or loss. Additionally, this ASU enhances interim disclosure requirements and provides new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective retrospectively for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures (Topic 740). The amendment requires annual disclosure of additional categories of information about federal, state, and foreign income taxes in the rate reconciliation table and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. Additionally, the amendment requires disclosure of annual income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. ASU 2023-09 is effective for the Company’s annual reporting periods beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis, with a retrospective option. We are currently evaluating the effect that adoption of ASU 2023-09 will have on our disclosures. In March 2024, the Securities and Exchange Commission ("SEC") issued final climate-related disclosure rules that will require disclosure of material climate-related risks and material direct greenhouse gas emissions from operations owned or controlled (Scope 1) and/or material indirect greenhouse gas emissions from purchased energy consumed in owned or controlled operations (Scope 2). Additionally, the rules require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject to certain materiality thresholds. In April 2024, the SEC issued an order to stay the rules pending the completion of judicial review of multiple petitions challenging the rules. The SEC has indicated that it will publish a new effective date for the rules, if ultimately implemented, at the conclusion of the stay. We are in the process of analyzing the impact of the rules on our related disclosures. Reclassification Certain reclassifications have been made to prior period financial statements and related disclosures to conform to current period presentation. These reclassifications have no impact on previous reported total assets, total liabilities, net income or total operating cash flows. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consisted of the following (in thousands):
| June 30, 2024 |  | December 31, 2023
Revenue payable and suspense | $ | 119,769 |  |  | $ | 148,598 |
Accounts payable | 53,492 |  |  | 43,517 |
Accrued capital expenditures | 39,597 |  |  | 38,322 |
Accrued transportation, gathering, processing and compression | 36,138 |  |  | 32,849 |
Accrued contract rejection damages and shares held in reserve | — |  |  | 1,996 |
Other accrued liabilities | 41,982 |  |  | 44,250 |
Total accounts payable and accrued liabilities | $ | 290,978 |  |  | $ | 309,532 |
Other, net As part of its Chapter 11 Cases and restructuring efforts, the Company filed motions to reject certain firm transportation agreements between the Company and affiliates of TC Energy Corporation ("TC") and Rover Pipeline LLC ("Rover"). During the first quarter of 2023, Gulfport finalized a settlement agreement with Rover that was approved by the Bankruptcy Court on February 21, 2023. Pursuant to the settlement agreement, Gulfport and Rover agreed that the firm transportation contracts between them would be rejected. As part of the settlement, Gulfport paid a $1.0 million administrative claim, which is included in Other, net. Additionally, on February 24, 2023, Gulfport received an additional $17.8 million interim distribution for its TC claim, which is also included in Other, net. Other, net in the second quarter of 2023 included a $5.0 million recoupment of previously placed collateral for certain firm transportation commitments during our Chapter 11 Cases. Supplemental Cash Flow and Non-Cash Information (in thousands)
| Six Months Ended June 30, 2024 |  | Six Months Ended June 30, 2023
Supplemental disclosure of cash flow information: |  |  |
Interest payments, net of amounts capitalized | $ | 28,263 |  |  | $ | 26,122 |
Changes in operating assets and liabilities, net: |  |  |
Accounts receivable - oil, natural gas, and natural gas liquid sales | $ | 28,133 |  |  | $ | 186,300 |
Accounts receivable - joint interest and other | 1,011 |  |  | 3,595 |
Accounts payable and accrued liabilities | (37,017) |  |  | (140,832) |
Prepaid expenses | (649) |  |  | (973) |
Other assets | 31 |  |  | 69 |
Total changes in operating assets and liabilities, net | $ | (8,491) |  |  | $ | 48,159 |
Supplemental disclosure of non-cash transactions: |  |  |
Capitalized stock-based compensation | $ | 2,830 |  |  | $ | 1,861 |
Asset retirement obligation capitalized | $ | 375 |  |  | $ | 73 |
Asset retirement obligation removed due to divestiture and settlements | $ | — |  |  | $ | (919) |
Release of common stock held in reserve | $ | 1,996 |  |  | $ | — |

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

X
- 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 -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent + Details
Name: | us-gaap_BasisOfPresentationAndSignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration