DERIVATIVE INSTRUMENTS (Tables)
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3 Months Ended |
Mar. 31, 2022 |
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| General Discussion of Derivative Instruments and Hedging Activities [Abstract] |
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| 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, 2022.
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Index |
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Daily Volume |
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Weighted
Average Price |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
| Remaining 2022 |
NYMEX Henry Hub |
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190,145 |
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$ |
2.90 |
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| 2023 |
NYMEX Henry Hub |
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155,014 |
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$ |
3.54 |
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| 2024 |
NYMEX Henry Hub |
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24,973 |
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$ |
3.62 |
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| Oil |
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(Bbl/d) |
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($/Bbl) |
| Remaining 2022 |
NYMEX WTI |
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2,335 |
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$ |
66.17 |
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| 2023 |
NYMEX WTI |
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2,000 |
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$ |
67.89 |
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| NGL |
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(Bbl/d) |
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($/Bbl) |
| Remaining 2022 |
Mont Belvieu C3 |
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3,502 |
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$ |
35.62 |
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| 2023 |
Mont Belvieu C3 |
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2,000 |
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$ |
35.05 |
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The Company entered into costless collars based off the NYMEX WTI and Henry Hub oil and natural gas indices. Each two-way price collar has a set floor and ceiling price for the hedged production. If the applicable monthly price indices are outside of the ranges set by the floor and ceiling prices in the various collars, the Company will cash-settle the difference with the hedge counterparty. Below is a summary of the Company's costless collar positions as of March 31, 2022.
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Index |
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Daily Volume |
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Weighted Average Floor Price |
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Weighted Average Ceiling Price |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
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($/MMBtu) |
| Remaining 2022 |
NYMEX Henry Hub |
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431,391 |
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$ |
2.56 |
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$ |
3.07 |
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| 2023 |
NYMEX Henry Hub |
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85,000 |
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$ |
2.75 |
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$ |
4.25 |
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| Oil |
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(Bbl/d) |
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($/Bbl) |
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($/Bbl) |
| Remaining 2022 |
NYMEX WTI |
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1,500 |
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$ |
55.00 |
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$ |
60.00 |
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Index |
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Daily Volume |
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Weighted Average Price |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
| Remaining 2022 |
NYMEX Henry Hub |
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152,675 |
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$ |
2.90 |
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| 2023 |
NYMEX Henry Hub |
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507,925 |
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$ |
2.90 |
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| 2024 |
NYMEX Henry Hub |
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162,000 |
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$ |
3.00 |
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| Schedule of Natural Gas Basis Swap Positions |
In addition, the Company entered into natural gas basis swap positions. As of March 31, 2022, the Company had the following natural gas swap positions open:
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Gulfport Pays |
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Gulfport Receives |
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Daily Volume |
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Weighted Average Fixed Spread |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
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| 2023 |
Rex Zone 3 |
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NYMEX Plus Fixed Spread |
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20,000 |
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$ |
(0.21) |
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Type of Derivative Instrument |
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Index |
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Daily Volume |
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Weighted
Average Price |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
| January 2023 - December 2023 |
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Fixed price swap |
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NYMEX Henry Hub |
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10,000 |
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$5.17 |
| January 2023 - December 2023 |
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Costless collar |
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NYMEX Henry Hub |
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200,000 |
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$3.00 / $5.00 |
| January 2023 - December 2023 |
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Call option |
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NYMEX Henry Hub |
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(100,000) |
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$2.90 |
| January 2024 - December 2024 |
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Fixed price swap |
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NYMEX Henry Hub |
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10,000 |
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$4.16 |
| January 2024 - December 2024 |
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Call option |
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NYMEX Henry Hub |
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40,000 |
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$4.65 |
| January 2025 - October 2025 |
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Call option |
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NYMEX Henry Hub |
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40,000 |
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$4.65 |
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| Oil |
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(Bbl/d) |
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($/Bbl) |
| January 2023 - December 2023 |
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Fixed price swap |
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NYMEX WTI |
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1,000 |
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$87.62 |
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| NGL |
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(Bbl/d) |
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($/Bbl) |
| January 2023 - December 2023 |
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Fixed price swap |
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Mont Belvieu C3 |
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1,000 |
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$44.10 |
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| 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, 2022 and December 31, 2021 (in thousands):
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Successor |
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March 31, 2022 |
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December 31, 2021 |
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| Short-term derivative asset |
$ |
15,720 |
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$ |
4,695 |
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| Long-term derivative asset |
20,696 |
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18,664 |
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| Short-term derivative liability |
(820,255) |
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(240,735) |
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| Long-term derivative liability |
(281,622) |
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(184,580) |
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| Total commodity derivative position |
$ |
(1,065,461) |
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$ |
(401,956) |
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| Schedule of Net Gain (Loss) on Derivatives |
The following table presents the gain and loss recognized in net loss on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the Successor Quarter and Predecessor Quarter (in thousands):
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Net loss on derivative instruments |
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Successor |
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Predecessor |
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Three Months Ended March 31, 2022 |
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Three Months Ended March 31, 2021 |
| Natural gas derivatives - fair value losses |
$ |
(619,319) |
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$ |
(25,538) |
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| Natural gas derivatives - settlement (losses) gains |
(111,157) |
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125 |
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| Total losses on natural gas derivatives |
(730,476) |
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(25,413) |
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| Oil derivatives - fair value losses |
(29,853) |
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(1,731) |
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| Oil derivatives - settlement losses |
(8,144) |
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— |
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| Total losses on oil derivatives |
(37,997) |
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(1,731) |
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| NGL derivatives - fair value losses |
(14,333) |
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(2,834) |
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| NGL derivatives - settlement losses |
(5,745) |
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— |
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| Total losses on NGL derivatives |
(20,078) |
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(2,834) |
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| Total losses on natural gas, oil and NGL derivatives |
$ |
(788,551) |
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$ |
(29,978) |
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| 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):
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Successor |
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As of March 31, 2022 |
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Gross Assets (Liabilities) |
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Gross Amounts |
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Presented in the |
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Subject to Master |
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Net |
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Consolidated Balance Sheets |
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Netting Agreements |
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Amount |
| Derivative assets |
$ |
36,416 |
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$ |
(36,416) |
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$ |
— |
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| Derivative liabilities |
$ |
(1,101,877) |
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$ |
36,416 |
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$ |
(1,065,461) |
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Successor |
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As of December 31, 2021 |
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Gross Assets (Liabilities) |
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Gross Amounts |
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Presented in the |
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Subject to Master |
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Net |
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Consolidated Balance Sheets |
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Netting Agreements |
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Amount |
| Derivative assets |
$ |
23,359 |
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$ |
(20,265) |
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$ |
3,094 |
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| Derivative liabilities |
$ |
(425,315) |
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$ |
20,265 |
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$ |
(405,050) |
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| 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):
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Successor |
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As of March 31, 2022 |
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Gross Assets (Liabilities) |
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Gross Amounts |
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Presented in the |
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Subject to Master |
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Net |
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Consolidated Balance Sheets |
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Netting Agreements |
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Amount |
| Derivative assets |
$ |
36,416 |
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$ |
(36,416) |
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$ |
— |
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| Derivative liabilities |
$ |
(1,101,877) |
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$ |
36,416 |
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$ |
(1,065,461) |
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Successor |
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As of December 31, 2021 |
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Gross Assets (Liabilities) |
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Gross Amounts |
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Presented in the |
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Subject to Master |
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Net |
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Consolidated Balance Sheets |
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Netting Agreements |
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Amount |
| Derivative assets |
$ |
23,359 |
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$ |
(20,265) |
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$ |
3,094 |
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| Derivative liabilities |
$ |
(425,315) |
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$ |
20,265 |
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$ |
(405,050) |
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