|12 Months Ended|
Dec. 31, 2015
|Loss Contingency [Abstract]|
Due to the nature of the Company's business, it is, from time to time, involved in routine litigation or subject to disputes or claims related to its business activities, including workers' compensation claims and employment related disputes. In the opinion of the Company's management, none of the pending litigation, disputes or claims against the Company, if decided adversely, will have a material adverse effect on its financial condition, cash flows or results of operations.
In September 2014, the Company settled its legacy surface contamination lawsuit with Reeds et al. Under the terms of the settlement agreement, Gulfport paid $18.0 million, which is included in litigation settlement in the accompanying consolidated statements of operations for the year ended December 31, 2014. In October 2015, the Company was reimbursed $10.0 million, net of related legal fees, by its insurance provider which is included in insurance proceeds in the accompanying consolidated statements of operations for the year ended December 31, 2015.
Concentration of Credit Risk
Gulfport operates in the oil and natural gas industry principally in the states of Ohio and Louisiana with sales to refineries, re-sellers such as pipeline companies, and local distribution companies. While certain of these customers are affected by periodic downturns in the economy in general or in their specific segment of the oil and gas industry, Gulfport believes that its level of credit-related losses due to such economic fluctuations has been immaterial and will continue to be immaterial to the Company’s results of operations in the long term.
The Company maintains cash balances at several banks. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. At December 31, 2015, Gulfport held cash in excess of insured limits in these banks totaling $112.0 million.
During the year ended December 31, 2015, Gulfport sold approximately 90% and 10% of its oil production to Shell Trading Company (“Shell”) and Marathon Oil Corporation, respectively, 76% and 24% of its natural gas liquids production to MarkWest Utica EMG ("Mark West") and Antero Resources, respectively, and 79%, 14% and 5% of its natural gas production to BP Energy Company ("BP"), DTE Energy Trading Inc. and Hess, respectively. During the year ended December 31, 2014, Gulfport sold approximately 99% of its oil production to Shell, 100% of its natural gas liquids production to MarkWest and 40%, 32% and 19% of its natural gas production to BP, DTE Energy Trading Inc. and Hess, respectively. During the year ended December 31, 2013, Gulfport sold approximately 99% of its oil production to Shell, 100% of its natural gas liquids production to MarkWest and 32%, 31%, and 17% of its natural gas production to Sequent Energy Management, L.P., Hess and Interstate Gas Supply Inc., respectively.
The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.
Reference 1: http://www.xbrl.org/2003/role/presentationRef