Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Firm Transportation and Gathering Agreements
    The Company has contractual commitments with pipeline carriers for future gathering and transportation of natural gas from the Company's producing wells to downstream markets. Under certain of these agreements, the Company has minimum daily volume commitments. The Company is also obligated under certain of these arrangements to pay a demand charge for firm capacity rights on pipeline systems regardless of the amount of pipeline capacity utilized by the Company. If the Company does not utilize the capacity, it often can release it to other counterparties, thus reducing its potential liability. Commitments related to future firm transportation and gathering agreements are not recorded as obligations in the accompanying consolidated balance sheets; however, they are reflected in the Company's estimates of proved reserves.
Additionally, one of the requirements provided for in the RSA is that the Company must permanently reduce its future demand reservation fees owed over the life of all of its firm transportation agreements, taken as a whole, by at least 50% of the amount of all such fees owed on October 31, 2020, as calculated on a PV-10 basis. Additionally, the Company must reduce the future firm transportation demand reservation volumes over the life of all of its firm transportation agreements, taken as a whole, by at least 35%. The below table reflects the Company's obligations as of December 31, 2020 excluding contemplation of contracts to be rejected throughout the Chapter 11 Cases.
A summary of these commitments at December 31, 2020 are set forth in the table below:
(In thousands)
2021 $ 370,343 
2022 380,979 
2023 379,171 
2024 358,990 
2025 272,123 
Thereafter 2,013,119 
Total $ 3,774,725 
Future Sales Commitments
The Company has entered into various firm sales contracts with third parties to deliver and sell natural gas. The Company expects to fulfill its delivery commitments primarily with production from proved developed reserves. The Company's proved reserves have generally been sufficient to satisfy its delivery commitments during the three most recent years, and it expects such reserves will continue to be the primary means of fulfilling its future commitments. However, where the Company's proved reserves are not sufficient to satisfy its delivery commitments, it can and may use spot market purchases of third party production to satisfy these commitments.
A summary of these commitments at December 31, 2020 are set forth in the table below:
(MMBtu per day)
2021 88,000 
2022 58,000 
2023 17,000 
2024 — 
2025 — 
Thereafter — 
Total 163,000
Contributions to 401(k) Plan
Gulfport sponsors a 401(k) plan under which eligible employees may contribute a portion of their total compensation up to the maximum pre-tax threshold through salary deferrals. The plan is considered a Safe Harbor 401(k) and provides a company match on 100% of salary deferrals that do not exceed 4% of compensation in addition to a match of 50% of salary deferrals that exceed 4% but do not exceed 6% of compensation. The Company may also make discretionary elective contributions to the plan. During the years ended December 31, 2020, 2019 and 2018, Gulfport incurred $2.6 million, $2.9 million, and $2.6 million, respectively, in contributions expense related to this plan.