Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS (Tables)

v3.21.1
DERIVATIVE INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2021
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 March 31, 2021. 
Location Daily Volume
(MMBtu/day)		 Weighted
Average Price
Remaining 2021 NYMEX Henry Hub 351,316  $ 2.73 
Location Daily Volume
(Bbl/day)		 Weighted
Average Price
Remaining 2021 NYMEX WTI 1,505  $ 53.07 
Location Daily Volume
(Bbl/day)		 Weighted
Average Price
Remaining 2021 Mont Belvieu C3 2,074  $ 27.80 
2022 Mont Belvieu C3 496  $ 27.30 
Below is a summary of the Company's sold call option positions as of March 31, 2021.
Location Daily Volume
(MMBtu/day)		 Weighted Average Price
2022 NYMEX Henry Hub 152,675  $ 2.90 
2023 NYMEX Henry Hub 627,675  $ 2.90 
Below is a summary of the Company's costless collar positions as of March 31, 2021.
Location Daily Volume (MMBtu/day) Weighted Average Floor Price Weighted Average Ceiling Price
Remaining 2021 NYMEX Henry Hub 390,509  $ 2.54  $ 2.93 
2022 NYMEX Henry Hub 186,438  $ 2.63  $ 3.04 
Schedule of Natural Gas Basis Swap Positions Below is a summary of the Company's basis swap positions as of March 31, 2021.
Gulfport Pays Gulfport Receives Daily Volume
(MMBtu/day)		 Weighted Average Fixed Spread
Remaining 2021 Rex Zone 3 NYMEX Plus Fixed Spread 85,309  $ (0.22)
Remaining 2021 Tetco M2 NYMEX Plus Fixed Spread 32,384  $ (0.63)
2022 Rex Zone 3 NYMEX Plus Fixed Spread 14,795  $ (0.10)
Subsequent to March 31, 2021 and as of April 30, 2021, the Company entered into the following natural gas and oil derivative contracts as it completed minimum hedging requirements as provided for in the RSA:
Period Type of Derivative Instrument Index
Daily Volume(1)
Weighted
Average Price
November 2021 - March 2022 Basis Swaps Rex Zone 3 40,000  $ (0.10)
April 2022 - December 2022 Costless Collars NYMEX Henry Hub 139,773 
$2.40/$2.60
January 2022 - December 2022 Costless Collars NYMEX WTI 1,500 
$55.00/$60.00
(1)    Volume units for gas instruments are presented as MMBtu/day and oil is presented in Bbls/day.
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 March 31, 2021 and December 31, 2020:
March 31, 2021 December 31, 2020
(In thousands)
Short-term derivative asset $ 12,422  $ 27,146 
Long-term derivative asset 652  322 
Short-term derivative liability (20,687) (11,641)
Long-term derivative liability (43,267) (36,604)
Total commodity derivative position $ (50,880) $ (20,777)
Schedule of Net Gain (Loss) on Derivatives
The following table presents the gain and loss recognized in net (loss) gain on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the three months ended March 31, 2021 and 2020.
Net (loss) gain on derivative instruments
Three months ended March 31,
2021 2020
(In thousands)
Natural gas derivatives $ (25,413) $ 45,853 
Oil derivatives (1,731) 52,874 
NGL derivatives (2,834) 920 
Contingent consideration arrangement —  (1,381)
Total $ (29,978) $ 98,266 
Schedule of Recognized Derivative Assets The following table presents 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.
As of March 31, 2021
Gross Assets (Liabilities) Gross Amounts
Presented in the Subject to Master Net
Consolidated Balance Sheets Netting Agreements Amount
(In thousands)
Derivative assets $ 13,074  $ (13,074) $ — 
Derivative liabilities $ (63,954) $ 13,074  $ (50,880)
As of December 31, 2020
Gross Assets (Liabilities) Gross Amounts
Presented in the Subject to Master Net
Consolidated Balance Sheets Netting Agreements Amount
(In thousands)
Derivative assets $ 27,468  $ (25,730) $ 1,738 
Derivative liabilities $ (48,245) $ 25,730  $ (22,515)
Schedule of Recognized Derivative Liabilities The following table presents 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.
As of March 31, 2021
Gross Assets (Liabilities) Gross Amounts
Presented in the Subject to Master Net
Consolidated Balance Sheets Netting Agreements Amount
(In thousands)
Derivative assets $ 13,074  $ (13,074) $ — 
Derivative liabilities $ (63,954) $ 13,074  $ (50,880)
As of December 31, 2020
Gross Assets (Liabilities) Gross Amounts
Presented in the Subject to Master Net
Consolidated Balance Sheets Netting Agreements Amount
(In thousands)
Derivative assets $ 27,468  $ (25,730) $ 1,738 
Derivative liabilities $ (48,245) $ 25,730  $ (22,515)