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DERIVATIVE INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2022
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, 2022. 
IndexDaily VolumeWeighted
Average Price
Natural Gas(MMBtu/d)($/MMBtu)
Remaining 2022NYMEX Henry Hub190,145 $2.90 
2023NYMEX Henry Hub155,014 $3.54 
2024NYMEX Henry Hub24,973 $3.62 
Oil(Bbl/d)($/Bbl)
Remaining 2022NYMEX WTI2,335 $66.17 
2023NYMEX WTI2,000 $67.89 
NGL(Bbl/d)($/Bbl)
Remaining 2022Mont Belvieu C33,502 $35.62 
2023Mont Belvieu C32,000 $35.05 
The Company entered into costless collars based off the NYMEX WTI and Henry Hub oil and natural gas indices. Each two-way price collar has a set floor and ceiling price for the hedged production. If the applicable monthly price indices are outside of the ranges set by the floor and ceiling prices in the various collars, the Company will cash-settle the difference with the hedge counterparty. Below is a summary of the Company's costless collar positions as of March 31, 2022.
IndexDaily VolumeWeighted Average Floor PriceWeighted Average Ceiling Price
Natural Gas(MMBtu/d)($/MMBtu)($/MMBtu)
Remaining 2022NYMEX Henry Hub431,391 $2.56 $3.07 
2023NYMEX Henry Hub85,000 $2.75 $4.25 
Oil(Bbl/d)($/Bbl)($/Bbl)
Remaining 2022NYMEX WTI1,500 $55.00 $60.00 
Below is a summary of the Company's open sold call option positions as of March 31, 2022.
IndexDaily VolumeWeighted Average Price
Natural Gas(MMBtu/d)($/MMBtu)
Remaining 2022NYMEX Henry Hub152,675 $2.90 
2023NYMEX Henry Hub507,925 $2.90 
2024NYMEX Henry Hub162,000 $3.00 
Schedule of Natural Gas Basis Swap Positions
In addition, the Company entered into natural gas basis swap positions. As of March 31, 2022, the Company had the following natural gas swap positions open:
Gulfport PaysGulfport ReceivesDaily VolumeWeighted Average Fixed Spread
Natural Gas(MMBtu/d)($/MMBtu)
2023Rex Zone 3NYMEX Plus Fixed Spread20,000 $(0.21)
The Company entered into the following natural gas, oil and NGL derivative contracts subsequent to March 31, 2022 as of April 29, 2022:
Type of Derivative InstrumentIndexDaily VolumeWeighted
Average Price
Natural Gas(MMBtu/d)($/MMBtu)
January 2023 - December 2023Fixed price swapNYMEX Henry Hub10,000 $5.17
January 2023 - December 2023Costless collarNYMEX Henry Hub200,000 
$3.00 / $5.00
January 2023 - December 2023Call optionNYMEX Henry Hub(100,000)$2.90
January 2024 - December 2024Fixed price swapNYMEX Henry Hub10,000 $4.16
January 2024 - December 2024Call optionNYMEX Henry Hub40,000 $4.65
January 2025 - October 2025Call optionNYMEX Henry Hub40,000 $4.65
Oil(Bbl/d)($/Bbl)
January 2023 - December 2023Fixed price swapNYMEX WTI1,000 $87.62
NGL(Bbl/d)($/Bbl)
January 2023 - December 2023Fixed price swapMont Belvieu C31,000 $44.10
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):
Successor
March 31, 2022December 31, 2021
Short-term derivative asset$15,720 $4,695 
Long-term derivative asset20,696 18,664 
Short-term derivative liability(820,255)(240,735)
Long-term derivative liability(281,622)(184,580)
Total commodity derivative position$(1,065,461)$(401,956)
Schedule of Net Gain (Loss) on Derivatives
The following table presents the gain and loss recognized in net loss on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the Successor Quarter and Predecessor Quarter (in thousands):
Net loss on derivative instruments
SuccessorPredecessor
Three Months Ended March 31, 2022Three Months Ended March 31, 2021
Natural gas derivatives - fair value losses$(619,319)$(25,538)
Natural gas derivatives - settlement (losses) gains(111,157)125 
Total losses on natural gas derivatives(730,476)(25,413)
Oil derivatives - fair value losses(29,853)(1,731)
Oil derivatives - settlement losses(8,144)— 
Total losses on oil derivatives(37,997)(1,731)
NGL derivatives - fair value losses(14,333)(2,834)
NGL derivatives - settlement losses(5,745)— 
Total losses on NGL derivatives(20,078)(2,834)
Total losses on natural gas, oil and NGL derivatives$(788,551)$(29,978)
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):
Successor
As of March 31, 2022
Gross Assets (Liabilities)Gross Amounts
Presented in theSubject to MasterNet
Consolidated Balance SheetsNetting AgreementsAmount
Derivative assets$36,416 $(36,416)$— 
Derivative liabilities$(1,101,877)$36,416 $(1,065,461)
Successor
As of December 31, 2021
Gross Assets (Liabilities)Gross Amounts
Presented in theSubject to MasterNet
Consolidated Balance SheetsNetting AgreementsAmount
Derivative assets$23,359 $(20,265)$3,094 
Derivative liabilities$(425,315)$20,265 $(405,050)
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):
Successor
As of March 31, 2022
Gross Assets (Liabilities)Gross Amounts
Presented in theSubject to MasterNet
Consolidated Balance SheetsNetting AgreementsAmount
Derivative assets$36,416 $(36,416)$— 
Derivative liabilities$(1,101,877)$36,416 $(1,065,461)
Successor
As of December 31, 2021
Gross Assets (Liabilities)Gross Amounts
Presented in theSubject to MasterNet
Consolidated Balance SheetsNetting AgreementsAmount
Derivative assets$23,359 $(20,265)$3,094 
Derivative liabilities$(425,315)$20,265 $(405,050)