DERIVATIVE INSTRUMENTS (Tables)
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3 Months Ended |
Mar. 31, 2025 |
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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 |
The Company has entered into natural gas, crude oil and NGL fixed price swap contracts based off the NYMEX Henry Hub, NYMEX WTI and Mont Belvieu C3 indices. Below is a summary of the Company’s open fixed price swap positions as of March 31, 2025:
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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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($/MMBtu) |
| Remaining 2025 |
NYMEX Henry Hub |
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270,000 |
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$ |
3.82 |
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| 2026 |
NYMEX Henry Hub |
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200,000 |
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$ |
3.64 |
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| Oil |
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(Bbl/d) |
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($/Bbl) |
| Remaining 2025 |
NYMEX WTI |
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3,000 |
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$ |
73.29 |
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| NGL |
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(Bbl/d) |
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($/Bbl) |
| Remaining 2025 |
Mont Belvieu C3 |
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2,669 |
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$ |
29.94 |
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| 2026 |
Mont Belvieu C3 |
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1,496 |
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$ |
30.33 |
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The Company has entered into natural gas costless collars based off the NYMEX Henry Hub index. Below is a summary of the Company's costless collar positions as of March 31, 2025:
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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 2025 |
NYMEX Henry Hub |
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220,000 |
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$ |
3.37 |
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$ |
4.23 |
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| 2026 |
NYMEX Henry Hub |
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150,000 |
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$ |
3.58 |
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$ |
4.48 |
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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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($/MMBtu) |
| Remaining 2025 |
NYMEX Henry Hub |
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191,127 |
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$ |
5.81 |
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Subsequent to March 31, 2025, as of April 30, 2025, the Company entered into the following derivative contracts:
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| Period |
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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) |
2025 |
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Costless Collars |
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NYMEX Henry Hub |
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17,818 |
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$4.00 / $4.66 |
2026 |
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Costless Collars |
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NYMEX Henry Hub |
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20,000 |
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$4.00 / $4.52 |
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| Schedule of Natural Gas Basis Swap Positions |
In addition, the Company has entered into natural gas basis swap positions. These instruments are arrangements that guarantee a fixed price differential to NYMEX Henry Hub from a specified delivery point. The Company receives the fixed price differential and pays the floating market price differential to the counterparty for the hedged commodity. As of March 31, 2025, the Company had the following natural gas basis swap positions open:
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Gulfport Pays |
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Gulfport Receives |
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Daily Volume |
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Weighted Average Fixed Spread |
| Natural Gas |
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(MMBtu/d) |
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($/MMBtu) |
| Remaining 2025 |
Rex Zone 3 |
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NYMEX Plus Fixed Spread |
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110,000 |
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$ |
(0.20) |
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| Remaining 2025 |
NGPL TXOK |
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NYMEX Plus Fixed Spread |
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40,000 |
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$ |
(0.29) |
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| Remaining 2025 |
TETCO M2 |
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NYMEX Plus Fixed Spread |
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230,000 |
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$ |
(0.96) |
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| Remaining 2025 |
Transco Station 85 |
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NYMEX Plus Fixed Spread |
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5,000 |
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$ |
0.38 |
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| Remaining 2025 |
TGP 500 |
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NYMEX Plus Fixed Spread |
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10,000 |
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$ |
0.31 |
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| 2026 |
Rex Zone 3 |
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NYMEX Plus Fixed Spread |
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80,000 |
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$ |
(0.18) |
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| 2026 |
NGPL TXOK |
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NYMEX Plus Fixed Spread |
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30,000 |
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$ |
(0.30) |
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| 2026 |
TETCO M2 |
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NYMEX Plus Fixed Spread |
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130,000 |
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$ |
(0.98) |
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| 2026 |
Transco Station 85 |
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NYMEX Plus Fixed Spread |
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5,000 |
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$ |
0.52 |
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| 2026 |
TGP 500 |
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NYMEX Plus Fixed Spread |
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10,000 |
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$ |
0.54 |
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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, 2025 and December 31, 2024 (in thousands):
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March 31, 2025 |
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December 31, 2024 |
| Short-term derivative asset |
$ |
24,151 |
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$ |
58,085 |
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| Long-term derivative asset |
17,296 |
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6,003 |
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| Short-term derivative liability |
(142,393) |
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(41,889) |
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| Long-term derivative liability |
(48,595) |
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(35,081) |
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| Total commodity derivative position |
$ |
(149,541) |
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$ |
(12,882) |
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| Schedule of Net Gain (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 months ended March 31, 2025 and 2024 (in thousands):
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Net gain (loss) on derivative instruments |
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Three Months Ended March 31, 2025 |
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Three Months Ended March 31, 2024 |
| Natural gas derivatives - fair value losses |
$ |
(133,664) |
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$ |
(11,479) |
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| Natural gas derivatives - settlement (losses) gains |
(9,025) |
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66,451 |
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| Total (losses) gains on natural gas derivatives |
(142,689) |
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54,972 |
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| Oil and condensate derivatives - fair value losses |
(6) |
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(2,460) |
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| Oil and condensate derivatives - settlement gains |
504 |
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12 |
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| Total gains (losses) on oil and condensate derivatives |
498 |
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(2,448) |
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| NGL derivatives - fair value losses |
(2,988) |
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(6,247) |
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| NGL derivatives - settlement losses |
(1,369) |
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(1,141) |
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| Total losses on NGL derivatives |
(4,357) |
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(7,388) |
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| Total (losses) gains on natural gas, oil and NGL derivatives |
$ |
(146,548) |
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$ |
45,136 |
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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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As of March 31, 2025 |
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Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |
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Gross Amounts Subject to Master Netting Agreements |
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Net Amount |
| Derivative assets |
$ |
41,447 |
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$ |
(41,447) |
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$ |
— |
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| Derivative liabilities |
$ |
(190,988) |
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$ |
41,447 |
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$ |
(149,541) |
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As of December 31, 2024 |
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Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |
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Gross Amounts Subject to Master Netting Agreements |
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Net Amount |
| Derivative assets |
$ |
64,088 |
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$ |
(49,343) |
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$ |
14,745 |
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| Derivative liabilities |
$ |
(76,970) |
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$ |
49,343 |
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$ |
(27,627) |
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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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As of March 31, 2025 |
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Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |
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Gross Amounts Subject to Master Netting Agreements |
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Net Amount |
| Derivative assets |
$ |
41,447 |
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$ |
(41,447) |
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$ |
— |
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| Derivative liabilities |
$ |
(190,988) |
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$ |
41,447 |
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$ |
(149,541) |
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As of December 31, 2024 |
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Gross Assets (Liabilities) Presented in the Consolidated Balance Sheets |
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Gross Amounts Subject to Master Netting Agreements |
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Net Amount |
| Derivative assets |
$ |
64,088 |
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$ |
(49,343) |
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$ |
14,745 |
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| Derivative liabilities |
$ |
(76,970) |
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$ |
49,343 |
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$ |
(27,627) |
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