COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-19514 | |
Entity Registrant Name | Gulfport Energy Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-3684669 | |
Entity Address, Address Line One | 3001 Quail Springs Parkway | |
Entity Address, City or Town | Oklahoma City, | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73134 | |
City Area Code | 405 | |
Local Phone Number | 252-4600 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | GPOR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 20,585,964 | |
Amendment Flag | false | |
Entity Central Index Key | 0000874499 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | May 17, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | |||||||||
Cash and cash equivalents | $ 4,485 | $ 1,526 | $ 89,861 | ||||||
Accounts receivable—oil and natural gas sales | 185,941 | 180,711 | 119,879 | ||||||
Accounts receivable—joint interest and other | 9,669 | 15,431 | 12,200 | ||||||
Prepaid expenses and other current assets | 18,487 | 25,295 | 160,664 | ||||||
Short-term derivative instruments | 2,142 | 3,465 | 27,146 | ||||||
Total current assets | 220,724 | 284,319 | 409,750 | ||||||
Property and equipment: | |||||||||
Proved oil and natural gas properties | 1,831,762 | 1,697,408 | 9,359,866 | ||||||
Unproved properties | 216,357 | 230,174 | 1,457,043 | ||||||
Other property and equipment | 5,277 | 6,893 | 88,538 | ||||||
Total property and equipment | 2,053,396 | 1,934,475 | 10,905,447 | ||||||
Less: accumulated depletion, depreciation and amortization | (212,403) | 0 | (8,819,178) | ||||||
Total property and equipment, net | 1,840,993 | 1,934,475 | 2,086,269 | ||||||
Other assets: | |||||||||
Equity investments | 0 | 0 | 24,816 | ||||||
Long-term derivative instruments | 961 | 8,183 | 322 | ||||||
Operating lease assets | 34 | 47 | 342 | ||||||
Other assets | 25,496 | 25,966 | 18,372 | ||||||
Total other assets | 26,491 | 34,196 | 43,852 | ||||||
Total assets | 2,088,208 | 2,252,990 | 2,539,871 | ||||||
Current liabilities: | |||||||||
Accounts payable and accrued liabilities | 436,172 | 506,799 | 244,903 | ||||||
Short-term derivative instruments | 560,722 | 98,900 | 11,641 | ||||||
Current portion of operating lease liabilities | 34 | 38 | 0 | ||||||
Current maturities of long-term debt | 60,000 | 60,000 | 253,743 | ||||||
Total current liabilities | 1,056,928 | 665,737 | 510,287 | ||||||
Non-current liabilities: | |||||||||
Long-term derivative instruments | 272,935 | 80,742 | 36,604 | ||||||
Asset retirement obligation | 19,854 | 19,084 | 0 | ||||||
Long-term debt, net of current maturities | 689,502 | 792,751 | 0 | ||||||
Total non-current liabilities | 982,291 | 892,586 | 36,604 | ||||||
Liabilities subject to compromise | 0 | 2,224,449 | 2,293,480 | ||||||
Total liabilities | 2,039,219 | 1,558,323 | 2,840,371 | ||||||
Commitments and contingencies (Note 9) | |||||||||
Mezzanine Equity: | |||||||||
New Preferred Stock - $0.0001 par value, 110 thousand shares authorized, 57.9 thousand issued and outstanding at September 30, 2021 | 57,920 | 55,000 | |||||||
Stockholders’ equity (deficit): | |||||||||
Common stock | 2 | 2 | 1,607 | ||||||
Predecessor accumulated other comprehensive loss | 0 | (43,000) | |||||||
Additional paid-in capital | 692,182 | 693,774 | 4,213,752 | ||||||
New Common Stock held in reserve, 938 thousand shares | (30,216) | (54,109) | |||||||
Accumulated deficit | (670,899) | 0 | (4,472,859) | ||||||
Total stockholders’ deficit | (8,931) | $ 453,090 | 639,667 | $ (287,738) | (300,500) | $ (144,777) | $ 231,340 | $ 784,049 | $ 1,314,592 |
Total liabilities, mezzanine equity and stockholders’ deficit | $ 2,088,208 | $ 2,252,990 | $ 2,539,871 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) | Sep. 30, 2021$ / sharesshares |
Statement of Financial Position [Abstract] | |
Temporary equity, par or stated value (in usd per share) | $ / shares | $ 0.0001 |
Temporary equity, shares authorized (in shares) | 110,000 |
Temporary equity, shares outstanding (in shares) | 57,920 |
Temporary equity, shares issued (in shares) | 57,900 |
Common stock, par value (in usd per share) | $ / shares | $ 0.0001 |
Common stock, shares authorized (in shares) | 42,000,000 |
Common stock, shares, issued (in shares) | 20,600,000 |
Common stock, shares, outstanding (in shares) | 20,600,000 |
New Common Stock held in reserve (in shares) | 938,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
REVENUES: | |||||
Net (loss) gain on natural gas, oil and NGL derivatives | $ (622,476,000) | $ (53,823,000) | $ (762,134,000) | $ (137,239,000) | $ 71,414,000 |
Total Revenues | (242,528,000) | 136,176,000 | (236,804,000) | 273,037,000 | 621,815,000 |
OPERATING EXPENSES: | |||||
Lease operating expenses | 13,864,000 | 13,393,000 | 17,980,000 | 19,524,000 | 41,166,000 |
Taxes other than income | 11,844,000 | 6,102,000 | 16,900,000 | 12,349,000 | 19,039,000 |
Transportation, gathering, processing and compression | 84,435,000 | 110,567,000 | 125,811,000 | 161,086,000 | 334,789,000 |
Depreciation, depletion and amortization | 62,573,000 | 51,551,000 | 94,935,000 | 62,764,000 | 194,369,000 |
Impairment of oil and natural gas properties | 0 | 270,874,000 | 117,813,000 | 0 | 1,357,099,000 |
Impairment of other property and equipment | 0 | 14,568,000 | 0 | ||
General and administrative expenses | 16,691,000 | 20,331,000 | 23,209,000 | 19,175,000 | 45,719,000 |
Restructuring and liability management expenses | 2,858,000 | 8,984,000 | 2,858,000 | 0 | 9,601,000 |
Accretion expense | 488,000 | 774,000 | 714,000 | 1,229,000 | 2,270,000 |
Total Operating Expenses | 192,753,000 | 482,576,000 | 400,220,000 | 290,695,000 | 2,004,052,000 |
LOSS FROM OPERATIONS | (435,281,000) | (346,400,000) | (637,024,000) | (17,658,000) | (1,382,237,000) |
OTHER EXPENSE (INCOME): | |||||
Interest expense | 16,351,000 | 34,321,000 | 25,245,000 | 4,159,000 | 99,677,000 |
Gain on debt extinguishment | 0 | 0 | (49,579,000) | ||
Loss from equity method investments, net | 0 | 153,000 | 0 | 342,000 | 10,987,000 |
Reorganization items, net | 0 | (266,898,000) | 0 | ||
Other, net | 9,031,000 | 89,000 | 7,979,000 | 1,711,000 | 8,957,000 |
Total Other Expense (Income) | 25,382,000 | 34,563,000 | 33,224,000 | (260,686,000) | 70,042,000 |
(LOSS) INCOME BEFORE INCOME TAXES | (460,663,000) | (380,963,000) | (670,248,000) | 243,028,000 | (1,452,279,000) |
Income tax expense (benefit) | 650,000 | 0 | 650,000 | (7,968,000) | 7,290,000 |
NET (LOSS) INCOME | (461,313,000) | (380,963,000) | (670,898,000) | 250,996,000 | (1,459,569,000) |
Dividends on New Preferred Stock | (2,095,000) | 0 | (3,126,000) | 0 | 0 |
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (463,408,000) | $ (380,963,000) | $ (674,024,000) | $ 250,996,000 | $ (1,459,569,000) |
NET (LOSS) INCOME PER COMMON SHARE: | |||||
Basic (in usd per share) | $ (22.50) | $ (2.37) | $ (32.87) | $ 1.56 | $ (9.12) |
Diluted (in usd per share) | $ (22.50) | $ (2.37) | $ (32.87) | $ 1.56 | $ (9.12) |
Weighted average common shares outstanding - Basic (in shares) | 20,598 | 160,683 | 20,507 | 160,834 | 160,053 |
Weighted average common shares outstanding - Diluted (in shares) | 20,598 | 160,683 | 20,507 | 160,834 | 160,053 |
Natural gas sales | |||||
REVENUES: | |||||
Revenue from contract with customer | $ 301,516,000 | $ 155,163,000 | $ 413,234,000 | $ 344,390,000 | $ 456,859,000 |
Oil and condensate sales | |||||
REVENUES: | |||||
Revenue from contract with customer | 33,279,000 | 16,012,000 | 50,866,000 | 29,106,000 | 47,553,000 |
Natural gas liquid sales | |||||
REVENUES: | |||||
Revenue from contract with customer | $ 45,153,000 | $ 18,824,000 | $ 61,230,000 | $ 36,780,000 | $ 45,989,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||||
Net (loss) income | $ (461,313) | $ (380,963) | $ (670,898) | $ 250,996 | $ (1,459,569) |
Foreign currency translation adjustment | 0 | 3,661 | 0 | 0 | (4,497) |
Other Comprehensive Income (Loss) | 0 | 3,661 | 0 | 0 | (4,497) |
Comprehensive (loss) income | $ (461,313) | $ (377,302) | $ (670,898) | $ 250,996 | $ (1,464,066) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Common Stock Held in Reserve | Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings (Accumulated Deficit) |
Beginning balance (in shares) at Dec. 31, 2019 | 159,711,000 | 0 | ||||
Beginning balance at Dec. 31, 2019 | $ 1,314,592 | $ 1,597 | $ 0 | $ 4,207,554 | $ (46,833) | $ (2,847,726) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (517,538) | (517,538) | ||||
Other Comprehensive Income (Loss) | (15,030) | (15,030) | ||||
Stock Compensation | 2,104 | 2,104 | ||||
Shares Repurchased (in shares) | (80,000) | |||||
Shares Repurchased | (79) | $ (1) | (78) | |||
Issuance of Restricted Stock (in shares) | 211,000 | |||||
Issuance of Restricted Stock | 0 | $ 2 | (2) | |||
Ending balance (in shares) at Mar. 31, 2020 | 159,842,000 | 0 | ||||
Ending balance at Mar. 31, 2020 | 784,049 | $ 1,598 | $ 0 | 4,209,578 | (61,863) | (3,365,264) |
Beginning balance (in shares) at Dec. 31, 2019 | 159,711,000 | 0 | ||||
Beginning balance at Dec. 31, 2019 | 1,314,592 | $ 1,597 | $ 0 | 4,207,554 | (46,833) | (2,847,726) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (1,459,569) | |||||
Other Comprehensive Income (Loss) | (4,497) | |||||
Ending balance (in shares) at Sep. 30, 2020 | 160,762,000 | 0 | ||||
Ending balance at Sep. 30, 2020 | (144,777) | $ 1,607 | $ 0 | 4,212,241 | (51,330) | (4,307,295) |
Beginning balance (in shares) at Mar. 31, 2020 | 159,842,000 | 0 | ||||
Beginning balance at Mar. 31, 2020 | 784,049 | $ 1,598 | $ 0 | 4,209,578 | (61,863) | (3,365,264) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (561,068) | (561,068) | ||||
Other Comprehensive Income (Loss) | 6,872 | 6,872 | ||||
Stock Compensation | 1,515 | 1,515 | ||||
Shares Repurchased (in shares) | (27,000) | |||||
Shares Repurchased | (28) | (28) | ||||
Issuance of Restricted Stock (in shares) | 301,000 | |||||
Issuance of Restricted Stock | 0 | $ 3 | (3) | |||
Ending balance (in shares) at Jun. 30, 2020 | 160,116,000 | 0 | ||||
Ending balance at Jun. 30, 2020 | 231,340 | $ 1,601 | $ 0 | 4,211,062 | (54,991) | (3,926,332) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (380,963) | (380,963) | ||||
Other Comprehensive Income (Loss) | 3,661 | 3,661 | ||||
Stock Compensation | 1,314 | 1,314 | ||||
Shares Repurchased (in shares) | (136,000) | |||||
Shares Repurchased | (129) | $ (2) | (127) | |||
Issuance of Restricted Stock (in shares) | 782,000 | |||||
Issuance of Restricted Stock | 0 | $ 8 | (8) | |||
Ending balance (in shares) at Sep. 30, 2020 | 160,762,000 | 0 | ||||
Ending balance at Sep. 30, 2020 | $ (144,777) | $ 1,607 | $ 0 | 4,212,241 | (51,330) | (4,307,295) |
Beginning balance (in shares) at Dec. 31, 2020 | 160,800,000 | 160,762,000 | 0 | |||
Beginning balance at Dec. 31, 2020 | $ (300,500) | $ 1,607 | $ 0 | 4,213,752 | (43,000) | (4,472,859) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 8,780 | 8,780 | ||||
Other Comprehensive Income (Loss) | 2,570 | 2,570 | ||||
Stock Compensation | 1,419 | 1,419 | ||||
Shares Repurchased (in shares) | 203,000 | |||||
Shares Repurchased | (8) | $ (1) | (7) | |||
Issuance of Restricted Stock (in shares) | (86,000) | |||||
Issuance of Restricted Stock | 1 | $ 3 | (2) | |||
Ending balance (in shares) at Mar. 31, 2021 | 160,879,000 | 0 | ||||
Ending balance at Mar. 31, 2021 | $ (287,738) | $ 1,609 | $ 0 | 4,215,162 | (40,430) | (4,464,079) |
Beginning balance (in shares) at Dec. 31, 2020 | 160,800,000 | 160,762,000 | 0 | |||
Beginning balance at Dec. 31, 2020 | $ (300,500) | $ 1,607 | $ 0 | 4,213,752 | (43,000) | (4,472,859) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 250,996 | |||||
Other Comprehensive Income (Loss) | 0 | |||||
Ending balance (in shares) at May. 17, 2021 | 21,525,000 | (1,679,000) | ||||
Ending balance at May. 17, 2021 | 639,667 | $ 2 | $ (54,109) | 693,774 | 0 | 0 |
Beginning balance (in shares) at Mar. 31, 2021 | 160,879,000 | 0 | ||||
Beginning balance at Mar. 31, 2021 | (287,738) | $ 1,609 | $ 0 | 4,215,162 | (40,430) | (4,464,079) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 242,214 | 242,214 | ||||
Stock Compensation | 5,095 | 5,095 | ||||
Shares Repurchased (in shares) | (10,000) | |||||
Issuance of Restricted Stock (in shares) | 25,000 | |||||
Accumulated other comprehensive income extinguishment | 40,430 | 40,430 | ||||
Cancellation of Predecessor Equity (in shares) | (160,894,000) | |||||
Cancellation of Predecessor Equity | 0 | $ (1,609) | (4,220,256) | 4,221,865 | ||
Issuance of New Common Stock (in shares) | 21,525,000 | |||||
Issuance of New Common Stock | 693,775 | $ 2 | 693,773 | |||
Shares of New Common Stock Held in Reserve (in shares) | (1,679,000) | |||||
Shares of New Common Stock Held in Reserve | (54,109) | $ (54,109) | ||||
Ending balance (in shares) at May. 17, 2021 | 21,525,000 | (1,679,000) | ||||
Ending balance at May. 17, 2021 | 639,667 | $ 2 | $ (54,109) | 693,774 | 0 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (209,586) | (209,586) | ||||
Issuance of New Common Stock (in shares) | 741,000 | |||||
Issuance of New Common Stock | $ 23,893 | $ 23,893 | ||||
Conversion of New Preferred Stock (in shares) | 146 | 10,000 | ||||
Conversion of New Preferred Stock | $ 147 | 147 | ||||
Dividends on New Preferred Stock | (1,031) | (1,031) | ||||
Ending balance (in shares) at Jun. 30, 2021 | 21,535,000 | (938,000) | ||||
Ending balance at Jun. 30, 2021 | 453,090 | $ 2 | $ (30,216) | 692,890 | 0 | (209,586) |
Beginning balance (in shares) at May. 17, 2021 | 21,525,000 | (1,679,000) | ||||
Beginning balance at May. 17, 2021 | 639,667 | $ 2 | $ (54,109) | 693,774 | 0 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (670,898) | |||||
Other Comprehensive Income (Loss) | $ 0 | |||||
Ending balance (in shares) at Sep. 30, 2021 | 20,600,000 | 21,535,000 | (938,000) | |||
Ending balance at Sep. 30, 2021 | $ (8,931) | $ 2 | $ (30,216) | 692,182 | 0 | (670,899) |
Beginning balance (in shares) at Jun. 30, 2021 | 21,535,000 | (938,000) | ||||
Beginning balance at Jun. 30, 2021 | 453,090 | $ 2 | $ (30,216) | 692,890 | 0 | (209,586) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (461,313) | (461,313) | ||||
Other Comprehensive Income (Loss) | 0 | |||||
Stock Compensation | $ 1,387 | 1,387 | ||||
Conversion of New Preferred Stock (in shares) | 5 | |||||
Dividends on New Preferred Stock | $ (2,095) | (2,095) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 20,600,000 | 21,535,000 | (938,000) | |||
Ending balance at Sep. 30, 2021 | $ (8,931) | $ 2 | $ (30,216) | $ 692,182 | $ 0 | $ (670,899) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 4 Months Ended | 5 Months Ended | 9 Months Ended |
Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (670,898) | $ 250,996 | $ (1,459,569) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depletion, depreciation and amortization | 94,935 | 62,764 | 194,369 |
Impairment of oil and natural gas properties | 117,813 | 0 | 1,357,099 |
Impairment of other property and equipment | 0 | 14,568 | 0 |
Loss from equity investments | 0 | 342 | 10,987 |
Gain on debt extinguishment | 0 | 0 | (49,579) |
Net loss (gain) on derivative instruments | 762,134 | 137,239 | (71,414) |
Net cash (payments) receipts on settled derivative instruments | (99,574) | (3,361) | 225,364 |
Non-cash reorganization items, net | 0 | (446,012) | 0 |
Deferred income tax expense | 0 | 0 | 7,290 |
Other, net | 1,487 | 1,725 | 12,753 |
Changes in operating assets and liabilities, net | (41,260) | 153,894 | (27,299) |
Net cash provided by operating activities | 164,637 | 172,155 | 200,001 |
Cash flows from investing activities: | |||
Additions to oil and natural gas properties | (119,306) | (102,330) | (337,979) |
Proceeds from sale of oil and natural gas properties | 600 | 15 | 46,932 |
Other, net | 2,562 | 4,484 | 351 |
Net cash used in investing activities | (116,144) | (97,831) | (290,696) |
Cash flows from financing activities: | |||
Debt issuance costs and loan commitment fees | (1,225) | (7,100) | (633) |
Repurchase of senior notes | 0 | 0 | (22,827) |
Proceeds from issuance of New Preferred Stock | 0 | 50,000 | 0 |
Other, net | (55) | (8) | (719) |
Net cash (used in) provided by in financing activities | (103,425) | (104,768) | 135,678 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (54,932) | (30,444) | 44,983 |
Cash, cash equivalents and restricted cash at beginning of period | 59,417 | 89,861 | 6,060 |
Cash, cash equivalents and restricted cash at end of period | 4,485 | 59,417 | 51,043 |
Exit Facility | |||
Cash flows from financing activities: | |||
Payments on credit facility | (409,000) | 0 | 0 |
Borrowings on credit facility | 306,855 | 302,751 | 0 |
DIP Credit Facility | |||
Cash flows from financing activities: | |||
Payments on credit facility | 0 | (157,500) | 0 |
Revolving Credit Facility | |||
Cash flows from financing activities: | |||
Payments on credit facility | 0 | (318,961) | (372,000) |
Borrowings on credit facility | $ 0 | $ 26,050 | $ 531,857 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Description of Company Gulfport Energy Corporation (the "Company" or "Gulfport") is an independent natural gas-weighted exploration and production company with assets primarily located in the Appalachia and Anadarko basins. Gulfport filed for voluntary reorganization under Chapter 11 of the Bankruptcy Code on November 13, 2020, and subsequently operated as a debtor-in-possession, in accordance with applicable provisions of the Bankruptcy Code, until its emergence on May 17, 2021. The Company refers to the post-emergence reorganized organization in the condensed financial statements and footnotes as the "Successor" for periods subsequent to May 17, 2021, and the pre-emergence organization as "Predecessor" for periods on or prior to May 17, 2021. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Gulfport were prepared in accordance with GAAP and the rules and regulations of the SEC. This Quarterly Report on Form 10-Q (this “Form 10-Q”) relates to the financial position and periods as of and for the three months ended September 30, 2021 ("Current Successor Quarter"), May 18, 2021 through September 30, 2021 (“Current Successor YTD Period”), January 1, 2021 through May 17, 2021 (“Current Predecessor YTD Period”), the three months ended September 30, 2020 (“Prior Predecessor Quarter”) and the nine months ended September 30, 2020 ("Prior Predecessor YTD Period"). The Company's annual report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”) should be read in conjunction with this Form 10-Q. Except as disclosed herein, and with the exception of information in this report related to our emergence from Chapter 11 and the application of fresh start accounting, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the 2020 Form 10-K. The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of our condensed consolidated financial statements and accompanying notes and include the accounts of our wholly-owned subsidiaries. Intercompany accounts and balances have been eliminated. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. Certain reclassifications have been made to prior period financial statements and related disclosures to conform to current period presentation. These reclassifications have no impact on previous reported total assets, total liabilities, net loss, total stockholders' deficit or total operating cash flows. Voluntary Reorganization Under Chapter 11 of the Bankruptcy Code On the Petition Date, the Debtors filed voluntary petitions of relief under the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. The Chapter 11 Cases were administered jointly under the caption In re Gulfport Energy Corporation, et al., Case No. 20-35562 (DRJ). The Bankruptcy Court confirmed the Plan and entered the confirmation order on April 28, 2021. The Debtors emerged from the Chapter 11 Cases on the Emergence Date. The Company's bankruptcy proceedings and related matters have been summarized below. During the pendency of the Chapter 11 Cases, the Company continued to operate its business in the ordinary course as debtors-in-possession in accordance with the applicable provisions of the Bankruptcy Code. The Bankruptcy Court granted the first day relief requested by the Company that was designed primarily to mitigate the impact of the Chapter 11 Cases on its operations, vendors, suppliers, customers and employees. As a result, the Company was able to conduct normal business activities and satisfy all associated obligations for the period following the Petition Date and was also authorized to pay mineral interest owner royalties, employee wages and benefits, and certain vendors and suppliers in the ordinary course for goods and services provided prior to the Petition Date. During the pendency of the Chapter 11 Cases, all transactions outside the ordinary course of business required the prior approval of the Bankruptcy Court. Subject to certain specific exceptions under the Bankruptcy Code, the filing of the Chapter 11 Cases automatically stayed all judicial or administrative actions against the Company and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. Absent an order from the Bankruptcy Court, substantially all of the Debtors’ pre-petition liabilities were subject to compromise and discharge under the Bankruptcy Code. The automatic stay was lifted on the Emergence Date. The Company applied FASB ASC Topic 852 - Reorganizations ("ASC 852") in preparing the consolidated financial statements for the period ended May 17, 2021. ASC 852 specifies the accounting and financial reporting requirements for entities reorganizing through Chapter 11 bankruptcy proceedings. These requirements include distinguishing transactions associated with the reorganization separate from activities related to the ongoing operations of the business. Accordingly, pre-petition liabilities that may be impacted by the Chapter 11 proceedings were classified as liabilities subject to compromise on the consolidated balance sheet as of December 31, 2020. Additionally, certain expenses, realized gains and losses and provisions for losses that are realized or incurred during the Chapter 11 Cases are recorded as reorganization items, net. Refer to Note 3 for more information regarding reorganization items. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consisted of the following at September 30, 2021 and December 31, 2020: Successor Predecessor September 30, 2021 December 31, 2020 Accounts payable and other accrued liabilities $ 159,080 $ 120,275 Revenue payable and suspense 155,454 124,628 Accrued contract rejection damages and shares held in reserve 121,638 — Total accounts payable and accrued liabilities $ 436,172 $ 244,903 Recently Adopted Accounting Standards In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This new standard simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments. It eliminates the treasury stock method for convertible instruments and requires application of the “if-converted” method for certain agreements. In addition, the standard eliminates the beneficial conversion and cash conversion accounting models that require separate accounting for embedded conversion features and the recognition of a debt discount and related amortization to interest expense of those embedded features. The Company elected to early adopt this standard effective on the Emergence Date. The Company adopted the new standard using the modified retrospective approach transition method. No cumulative-effect adjustment to retained earnings was required upon adoption of the new standard. The consolidated financial statements for the Successor Period are presented under the new standard, while the predecessor periods and comparative periods are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. Supplemental Cash Flow and Non-Cash Information Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Supplemental disclosure of cash flow information: Cash paid for reorganization items, net $ 42,202 $ 87,199 $ — Interest payments 6,465 7,272 73,979 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable - oil and natural gas sales (5,230) (60,832) 28,767 (Increase) decrease in accounts receivable - joint interest and other 5,536 (3,005) 32,827 Increase (decrease) in accounts payable and accrued liabilities (48,903) 79,193 (40,552) (Increase) decrease in prepaid expenses 7,231 135,471 (45,620) (Increase) decrease in other assets 106 3,067 (2,721) Total changes in operating assets and liabilities $ (41,260) $ 153,894 $ (27,299) Supplemental disclosure of non-cash transactions: Capitalized stock-based compensation $ 484 $ 930 $ 2,189 Asset retirement obligation capitalized 55 546 2,343 Asset retirement obligation removed due to divestiture — — (2,033) Interest capitalized 117 — 907 Fair value of contingent consideration asset on date of divestiture — — 23,090 Release of New Common Stock Held in Reserve 23,893 — — Foreign currency translation gain (loss) on equity method investments — 2,570 (4,497) |
CHAPTER 11 EMERGENCE
CHAPTER 11 EMERGENCE | 9 Months Ended |
Sep. 30, 2021 | |
Reorganizations [Abstract] | |
CHAPTER 11 EMERGENCE | CHAPTER 11 EMERGENCE As described in Note 1 , on November 13, 2020, the Debtors filed the Chapter 11 Cases and the Plan, which was subsequently amended, and entered the confirmation order on April 28, 2021. The Debtors then emerged from bankruptcy upon effectiveness of the Plan on May 17, 2021. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Plan. Plan of Reorganization In accordance with the Plan confirmed by the Bankruptcy Court, the following significant transactions occurred upon the Company's emergence from bankruptcy on May 17, 2021: • Shares of the Predecessor's common stock outstanding immediately prior to the Emergence Date were cancelled, and on the Emergence Date, the Company issued 19,845,780 shares of New Common Stock and 55,000 shares of New Preferred Stock, which were the result of the transactions described below. The Company also entered into a registration rights agreement and amended its articles of incorporation and bylaws for the authorization of the New Common Stock and New Preferred Stock among other corporate governance actions. See Note 6 for further discussion of the Company's post-emergence equity; • All outstanding obligations under the Predecessor Senior Notes were cancelled; • The Predecessor effectuated certain restructuring transactions, including entering into a plan of Merger with Gulfport Merger Sub, Inc., a newly formed, wholly owned subsidiary of Gulfport ("Merger Sub"), pursuant to which Merger Sub was merged with and into Predecessor, resulting in the Predecessor becoming a wholly owned subsidiary of Gulfport; • The Debtors entered into a Second Amended and Restated Credit Agreement (the "Exit Credit Agreement") with the Bank of Nova Scotia as administrative agent, various lender parties and acknowledged and agreed to by certain of Gulfport's subsidiaries, as guarantors, providing for (i) a new money senior secured reserve-based revolving credit facility in an aggregate maximum principal amount of up to $1.5 billion (the "Exit Facility"); (ii) a senior secured term loan in an aggregate maximum principal amount of up to $180 million (the "First-Out Term Loan") and together with the Exit Facility (the "Exit Credit Facility"), collectively with an initial borrowing base and elected commitment amount of up to $580 million (less the amount of any term loan deemed funded by any RBL Lender that is not a Consenting RBL Lender); • The Company entered into an indenture to issue up to $550 million aggregate principal amount of its 8.000% senior notes due 2026, dated as of May 17, 2021, by and among the Issuer, UMB Bank, National Association, as trustee, and the guarantors party thereto (such indenture, the “1145 Indenture,” and such senior notes issued thereunder, the “1145 Notes”), under section 1145 of the Bankruptcy Code (“Section 1145”). Certain eligible holders have made an election (the “4(a)(2) Election”) entitling such holders to receive senior notes issued pursuant to an indenture, dated as of May 17, 2021, by and among the Issuer, UMB Bank, National Association, as trustee, and the guarantors party thereto (such indenture, the “4(a)(2) Indenture,” and such senior notes issued thereunder, the “4(a)(2) Notes”), under Section 4(a)(2) of the Securities Act of 1933, as amended as opposed to its share of the up to $550 million aggregate principal amount of 1145 Notes. The 4(a)(2) Indenture's terms are substantially similar to the terms of the 1145 Indenture. The 1145 Indenture and the 4(a)(2) Indenture are referred to together as the "Indentures". The 1145 Notes and the 4(a)(2) Notes are collectively referred to as the "Successor Senior Notes"; • The DIP Credit Facility indefeasibly converted into the Exit Facility, and all commitments under the DIP Credit Facility terminated. Each holder of an Allowed DIP Claim received, in full and final satisfaction, settlement, release, and discharge of, and in exchange for, each Allowed DIP Claim its Pro Rata share of participation in the Exit Credit Facility; • Each holder of an Allowed Notes Claim received its pro rata share of 19,714,204 shares of New Common Stock, 54,967 shares of New Preferred Stock and New Unsecured Senior Notes. • 1,678,755 shares of New Common Stock were issued to the Disputed Claims reserve; • Each holder of a Class 4A Claim greater than the Convenience Claim Threshold received its pro rata share of 119,679 shares of New Common Stock (which were issued to the Unsecured Claims Distribution Trust), $10 million in cash, subject to adjustment by the Unsecured Claims Distribution Trustee, and 100% of the Mammoth Shares; • Each holder of a Class 4B claim greater than the Convenience Claim Threshold received its pro rata share of 11,897 shares of New Common Stock, 33 shares of New Preferred Stock, the Rights Offering Subscription Rights and the Successor Senior Notes. • Each holder of a Convenience Class Claim will share in a $3 million cash distribution pool, which the Unsecured Claims Distribution Trustee may increase by an additional $2 million by reducing the Gulfport Parent Cash Pool; • Each intercompany claim was cancelled on the Emergence Date and holders of intercompany interests received no recovery or distribution; • The Company conducted a Rights Offering and issued 50,000 shares of New Preferred Stock at $1,000 per share to holders of claims against the Predecessor Subsidiaries, raising $50 million in proceeds. Additionally, 5,000 shares were issued to the Back Stop Commitment counterparties in lieu of cash consideration as per the Backstop Commitment Agreement. • The Company adopted the Gulfport Energy Corporation 2021 Stock Incentive Plan (the "Incentive Plan") effective on the Emergence Date and reserved 2,828,123 shares of New Common Stock for issuance to Gulfport's employees and non-employee directors pursuant to equity incentive awards to be granted under the Incentive Plan. Additionally, pursuant to the Plan confirmed by the Bankruptcy Court, the Company's post-emergence Board of Directors is comprised of five directors, including the Company's Chief Executive Officer, Timothy Cutt, and four non-employee directors, David Wolf, Guillermo Martinez, Jason Martinez and David Reganato. Executory Contracts Subject to certain exceptions, under the Bankruptcy Code the Debtors were entitled to assume, assign or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and fulfillment of certain other conditions. Generally, the rejection of an executory contract was treated as a pre-petition breach of such contract and, subject to certain exceptions, relieved the Debtors from performing future obligations under such contract but entitled the counterparty to a pre-petition general unsecured claim for damages caused by such deemed breach. Alternatively, the assumption of an executory contract or unexpired lease required the Debtors to cure existing monetary defaults under such executory contract or unexpired lease, if any, and provide adequate assurance of future performance. Accordingly, any description of an executory contract or unexpired lease with the Debtors in this document, including where applicable quantification of the Company’s obligations under such executory or unexpired lease of the Debtors, is qualified by any overriding rejection rights the Company has under the Bankruptcy Code. Further, nothing herein is or shall be deemed an admission with respect to any claim amounts or calculations arising from the rejection of any executory contract or unexpired lease and the Debtors expressly preserve all of their rights thereto. Refer to Note 9 for more information on potential future rejection damages related to general unsecured claims. In connection with the Company's emergence from bankruptcy and in accordance with ASC 852, the Company qualified for and applied fresh start accounting on the Emergence Date. The Company qualified for fresh start accounting because (1) the holders of existing voting shares of the Company prior to the Emergence Date received less than 50% of the voting shares of the Successor's equity following its emergence from bankruptcy and (2) the reorganization value of the Company's assets immediately prior to confirmation of the Plan of approximately $2.3 billion was less than the post-petition liabilities and allowed claims of $3.1 billion. In accordance with ASC 852, with the application of fresh start accounting, the Company allocated its reorganization value to its individual assets based on their estimated fair value in conformity with FASB ASC Topic 820 - Fair Value Measurements and FASB ASC Topic 805 - Business Combinations . Accordingly, the consolidated financial statements after May 17, 2021 are not comparable with the consolidated financial statements as of or prior to that date. The Emergence Date fair values of the Successor's assets and liabilities differ materially from their recorded values as reflected on the historical balance sheet of the Predecessor. Reorganization Value Reorganization value is derived from an estimate of enterprise value, or fair value of the Company's interest-bearing debt and stockholders' equity. Under ASC 852, reorganization value generally approximates fair value of the entity before considering liabilities and is intended to approximate the amount a willing buyer would pay for the assets immediately after the effects of a restructuring. As set forth in the disclosure statement, amended for updated pricing, and approved by the Bankruptcy Court, the enterprise value of the Successor was estimated to be between $1.3 billion and $1.9 billion. With the assistance of third-party valuation advisors, the Company determined the enterprise value and corresponding implied equity value of the Successor using various valuation approaches and methods, including: (i) income approach using a calculation of present value of future cash flows based on our financial projections, (ii) the market approach using selling prices of similar assets and (iii) the cost approach. Deferred income taxes were determined in accordance with FASB ASC Topic 740 - Income Taxes . For GAAP purposes, the Company valued the Successor's individual assets, liabilities and equity instruments and determined an estimate of the enterprise value within the estimated range. Management concluded that the best estimate of enterprise value was $1.6 billion. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of fresh start accounting, are described below in greater detail within the valuation process. The enterprise value and corresponding implied equity value are dependent upon achieving the future financial results set forth in our valuation using an asset-based methodology of estimated proved reserves, undeveloped properties, and other financial information, considerations and projections, applying a combination of the income, cost and market approaches as of the fresh start reporting date of May 17, 2021. As estimates, assumptions, valuations and financial projections, including the fair value adjustments, the financial projections, the enterprise value and equity value projections, are inherently subject to significant uncertainties, the resolution of contingencies is beyond our control. Accordingly, there is no assurance that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially. The following table reconciles the enterprise value to the implied fair value of the Successor's equity as of the Emergence Date: Enterprise Value $ 1,600,000 Plus: Cash and cash equivalents (1) 1,526 Less: Fair value of debt (852,751) Successor equity value (2) $ 748,775 (1) Restricted cash is not included in the above table. (2) Inclusive of $55 million of mezzanine equity. The following table reconciles the enterprise value to the reorganization value as of the Emergence Date: Enterprise Value $ 1,600,000 Plus: Cash and cash equivalents (1) 1,526 Plus: Current and other liabilities 686,489 Plus: Asset retirement obligations 19,084 Less: Common stock reserved for settlement of claims post Emergence Date (54,109) Reorganization value of Successor assets $ 2,252,990 (1) Restricted cash is not included in the above table. The fair values of our oil and natural gas properties, other property and equipment, derivative instruments, equity investments and asset retirement obligations were estimated as of the Emergence Date. Oil and natural gas properties . The Company's principal assets are its oil and natural gas properties, which are accounted for under the full cost method of accounting. The Company determined the fair value of its oil and natural gas properties based on the discounted future net cash flows expected to be generated from these assets. Discounted cash flow models by operating area were prepared using the estimated future revenues and operating costs for all developed wells and undeveloped properties comprising the proved and unproved reserves. Significant inputs associated with the calculation of discounted future net cash flows include estimates of (i) recoverable reserves, (ii) production rates, (iii) future operating and development costs, (iv) future commodity prices escalated by an inflationary rate after seven years, adjusted for differentials and (v) a market-based weighted average cost of capital by operating area. The Company utilized NYMEX strip pricing, adjusted for differentials, to value the reserves. The NYMEX strip pricing inputs used are classified as Level 1 fair value assumptions and all other inputs are classified as Level 3 fair value assumptions. The discount rates utilized were derived using a weighted average cost of capital computation, which included an estimated cost of debt and equity for market participants with similar geographies and asset development type by operating area. Other property and equipmen t. The fair value of other property and equipment, such as land, buildings, vehicles, computer equipment and other equipment, was maintained at net book value as the carrying value reasonably approximated the fair value of the assets. Asset retirement obligation s. In accordance with FASB ASC Topic 410 - Asset Retirement and Environmental Obligations ("ASC 410"), the asset retirement obligations associated with the Company's oil and gas assets was valued using the income approach. The fair value of the Company’s asset retirement obligations was revalued based upon estimated current reclamation costs for our assets with reclamation obligations, updated estimates of timing of reclamation obligations, an appropriate long-term inflation adjustment, and the Company's revised credit adjusted risk-free rate. The credit adjusted risk-free rate was based on an evaluation of an interest rate that equates to a risk-free interest rate adjusted for the effect of the Company's credit standing. Derivative Instruments. The fair value of derivative instruments was adjusted based on the change in the Company’s credit rating reflecting the Company’s credit standing at the Emergence Date. Equity Investments . The fair value of the Company's investment in Grizzly Sands ULC was reduced by $27 million. The reduction in valuation was based upon the assessment of the investment by the Company's new management and its priority for future funding in its portfolio. In particular, Grizzly’s operations remained suspended, even with improvements in the pricing environment since its initial suspension in 2015. Additionally, the Company does not anticipate funding future capital calls which will lead to further dilution of its equity ownership interest. Consolidated Balance Sheet The following consolidated balance sheet is as of May 17, 2021. This consolidated balance sheet includes adjustments that reflect the consummation of the transactions contemplated by the Plan (reflected in the column “Reorganization Adjustments”) as well as fair value adjustments as a result of the adoption of fresh start accounting (reflected in the column “Fresh Start Adjustments”) as of the Emergence Date. The explanatory notes following the table below provide further details on the adjustments, including the assumptions and methods used to determine fair value for its assets and liabilities. As of May 17, 2021 Predecessor Reorganization Adjustments Fresh Start Adjustments Successor (In thousands) Assets Current assets: Cash and cash equivalents $ 146,545 $ (145,019) (a) $ — $ 1,526 Restricted cash — 57,891 (b) — 57,891 Accounts receivable—oil and natural gas sales 180,711 — — 180,711 Accounts receivable—joint interest and other 15,431 — — 15,431 Prepaid expenses and other current assets 86,189 (60,894) (c) — 25,295 Short-term derivative instruments 3,324 — 141 (r) 3,465 Total current assets 432,200 (148,022) 141 284,319 Property and equipment: Oil and natural gas properties, full-cost method Proved oil and natural gas properties 9,558,121 — (7,860,713) (s) 1,697,408 Unproved properties 1,375,681 — (1,145,507) (s) 230,174 Other property and equipment 38,026 — (31,133) (t) 6,893 Total property and equipment 10,971,828 — (9,037,353) 1,934,475 Accumulated depletion, depreciation and amortization (8,870,723) — 8,870,723 (u) — Total property and equipment, net 2,101,105 — (166,630) 1,934,475 Other assets: Equity investments 27,044 — (27,044) (v) — Long-term derivative instruments 7,468 — 715 (w) 8,183 Operating lease assets 47 — — 47 Other assets 18,866 7,100 (d) — 25,966 Total other assets 53,425 7,100 (26,329) 34,196 Total assets $ 2,586,730 $ (140,922) $ (192,818) $ 2,252,990 Predecessor Reorganization Adjustments Fresh Start Adjustments Successor (In thousands) Liabilities and Stockholders’ Equity (Deficit) Current liabilities: Accounts payable and accrued liabilities $ 384,200 $ 122,599 (e) $ — $ 506,799 Short-term derivative instruments 96,116 — 2,784 (x) 98,900 Current portion of operating lease liabilities — 38 (f) — 38 Current maturities of long-term debt 280,251 (220,251) (g) — 60,000 Total current liabilities 760,567 (97,614) 2,784 665,737 Non-current liabilities: Long-term derivative instruments 69,331 — 11,411 (y) 80,742 Asset retirement obligation — 65,341 (h) (46,257) (z) 19,084 Non-current operating lease liabilities — 9 (i) — 9 Long-term debt, net of current maturities — 792,751 (j) — 792,751 Total non-current liabilities 69,331 858,101 (34,846) 892,586 Liabilities subject to compromise 2,224,449 (2,224,449) (k) — — Total liabilities $ 3,054,347 $ (1,463,962) $ (32,062) $ 1,558,323 Commitments and contingencies ( Note 9 ) Mezzanine Equity: New Preferred Stock $ — $ 55,000 (l) $ — $ 55,000 Stockholders’ equity (deficit): Predecessor common stock 1,609 (1,609) (m) — — New Common Stock — 2 (n) — 2 Additional paid-in capital 4,215,838 (3,522,064) (o) — 693,774 New Common Stock held in reserve — (54,109) (p) — (54,109) Accumulated other comprehensive loss (40,430) 40,430 (q) — — Retained earnings (accumulated deficit) (4,644,634) 4,805,390 (q) (160,756) (aa) — Total stockholders’ equity (deficit) $ (467,617) $ 1,268,040 $ (160,756) $ 639,667 Total liabilities, mezzanine equity and stockholders’ equity (deficit) $ 2,586,730 $ (140,922) $ (192,818) $ 2,252,990 Reorganization Adjustments (a) The table below reflects changes in cash and cash equivalents on the Emergence Date from implementation of the Plan: Release of escrow funds by counterparties as a result of the Plan $ 63,068 New Preferred Stock rights offering proceeds 50,000 Funds required to rollover the DIP Credit Facility and Pre-Petition Revolving Credit Facility into the Exit Facility (175,000) Payment of accrued Pre-Petition Revolving Credit Facility and DIP Credit Facility interest (1,022) Payment of issuance costs related to the Exit Credit Facility (10,250) Funding of the Professional Fee Escrow (43,891) Payment of professional fees at Emergence Date (7,964) Transfer to restricted cash for the Unsecured Claims Distribution Trust (1,000) Transfer to restricted cash for the Convenience Claims Cash Pool (3,000) Transfer to restricted cash for the Parent Cash Pool (10,000) Payment of severance costs at Emergence Date (5,960) Net change in cash and cash equivalents $ (145,019) (b) Changes in restricted cash reflect the net effect of transfers from cash and cash equivalents for the Professional Fee Escrow and various claims class cash pools. (c) Changes in prepaid expenses and other current assets include the following: Release of escrow funds as a result of the Plan $ (63,068) Recognition of counterparty credits due to settlements effectuated at Emergence 4,247 Prepaid compensation earned at Emergence (2,073) Net change in prepaid expenses and other current assets $ (60,894) (d) Changes in other assets were due to capitalization of debt issuance costs related to the Exit Credit Facility. (e) Changes in accounts payable and accrued liabilities included the following: Payment of accrued Pre-Petition Revolving Credit Facility and DIP Credit Facility interest $ (1,022) Payment of professional fees at emergence (7,964) Accrued payable for claims to be settled via Unsecured Claims Distribution Trust 1,000 Accrued payable for claims to be settled via Convenience Claims Cash Pool 3,000 Accrued payable for claims to be settled via Parent Cash Pool 10,000 Professional fees payable at Emergence 18,047 Accrued payable for General Unsecured Claims against Gulfport Parent to be settled via 4A Claims distribution from common shares held in reserve 23,894 Accrued payable for General Unsecured Claims against Gulfport Subsidiary to be settled via 4B Claims distribution from common shares held in reserve 30,216 Reinstatement of payables due to Plan effects 45,428 Net change in accounts payable and accrued liabilities $ 122,599 (f) Changes to current operating lease liabilities reflect the reinstatement of lease liabilities due to contract assumptions. (g) Changes in the current maturities of long-term debt include the following: Current portion of Term Notes issued under the Exit Facility $ 60,000 Payment of DIP Facility to effectuate Exit Facility (157,500) Transfer of post-petition RBL borrowings to Exit Facility (122,751) Net changes to current maturities of long-term debt $ (220,251) (h) Reflects the reclassification of asset retirement obligations from liabilities subject to compromise. (i) Changes to non-current operating lease liabilities reflect the reinstatement of lease liabilities due to contract assumptions. (j) Changes in long-term debt include the following: Emergence Date draw on Exit Facility $ 122,751 Noncurrent portion of First-Out Term Loan issued under the Exit Credit Facility 120,000 Issuance of Successor Senior Notes 550,000 Net impact to long-term debt, net of current maturities $ 792,751 (k) On the Emergence Date, liabilities subject to compromise were settled in accordance with the Plan as follows: General Unsecured Claims settled via Class 4A, 4B, and 5B distributions $ 74,098 Predecessor Senior Notes and associated interest 1,842,035 Pre-Petition Revolving Credit Facility 197,500 Reinstatement of Predecessor Claims as Successor liabilities 45,475 Reinstatement of Predecessor asset retirement obligations 65,341 Total liabilities subject to compromise settled in accordance with the Plan $ 2,224,449 The resulting gain on liabilities subject to compromise was determined as follows: Pre-petition General Unsecured Claims Settled at Emergence $ 74,098 Predecessor Senior Notes Claims settled at Emergence 1,842,035 Pre-Petition Revolving Credit Facility 197,500 Rollover of Pre-Petition Revolving Credit Facility into Exit RBL Facility (197,500) Accrued payable for claims to be settled via Unsecured Claims Distribution Trust (1,000) Accrued payable for claims to be settled via Convenience Claims Cash Pool (3,000) Accrued payable for claims to be settled via Parent Cash Pool (10,000) Accrued payable for shares to be transferred to trust (54,109) Issuance of New Common Stock to settle Predecessor liabilities (639,666) Issuance of Successor Senior Notes in settlement of Class 4B and 5B claims (550,000) Gain on settlement of liabilities subject to compromise $ 658,358 (l) Changes to New Preferred Stock reflect the fair value of preferred shares issued in the Rights Offering. (m) Changes in Predecessor common stock reflect the extinguishment of Predecessor equity as per the Plan. (n) Changes in New Common Stock included the following: Issuance of common stock to settle General Unsecured Claims against Gulfport Parent (par value) $ — Issuance of common stock to settle General Unsecured Claims against Gulfport Subsidiaries (par value) 2 Common stock reserved for settlement of claims post Emergence Date (par value) — Net change to New Common Stock $ 2 (o) Changes to paid in capital included the following: Issuance of common stock to settle General Unsecured Claims against Gulfport Parent $ 27,751 Issuance of common stock to settle General Unsecured Claims against Gulfport Subsidiaries 666,022 Extinguishment of Predecessor stock-based compensation 4,419 Extinguishment of Predecessor paid in capital (4,220,256) Net change to paid in capital $ (3,522,064) (p) New Common Stock held in reserve to settle Allowed General Unsecured Claims include: Shares held in reserve to settle Allowed Claims against Gulfport Parent (23,894) Shares held in reserve to settle Allowed Claims against Gulfport Subsidiary (30,215) Total New Common Stock held in reserve $ (54,109) (q) Change to retained earnings (accumulated deficit) included the following Gain on settlement of liabilities subject to compromise $ 658,358 Extinguishment of Predecessor common stock and paid in capital 4,221,864 Recognition of counterparty credits due to settlements effectuated at Emergence 4,247 Deferred compensation earned at Emergence (2,073) Extinguishment of Predecessor accumulated other comprehensive income (40,430) Write-off of debt issuance costs related to First-Out Term Loan (3,150) Severance costs incurred as a result of the Plan (5,961) Professional fees earned at Emergence (18,047) Rights offering backstop commitment fee (5,000) Extinguishment of Predecessor stock-based compensation (4,418) Net change to retained earnings (accumulated deficit) $ 4,805,390 Fresh Start Adjustments (r) The change in fair value of short-term derivative instruments is due to the change in the Company's post-emergence credit rating. (s) The change in oil and natural gas properties represents the fair value adjustment to the Company's properties due to the adoption of fresh start accounting. (t) Predecessor accumulated depreciation and amortization for other property and equipment was net against the gross value of the assets with the adoption of fresh start accounting. (u) Predecessor accumulated depreciation and amortization was eliminated with the adoption of fresh start accounting. (v) The change in equity investments is due to the fair value adjustment to the Company's Grizzly investment. (w) The change in fair value of long-term derivative instruments is due to the change in the Company's post-emergence credit rating. (x) The change in fair value of liabilities related to short-term derivative instruments is due to the change in the Company's post-emergence credit rating. (y) The change in fair value of liabilities related to long-term derivative instruments is due to the change in the Company's post-emergence credit rating. (z) The fair value of asset retirement obligations were reduced due to the change in the Company's credit adjusted risk-free rate and expected economic life estimates. (aa) Changes to retained earnings represent the total impact of fresh start adjustments to the post-reorganization balance sheet. Reorganization Items, Net The Company has incurred significant expenses, gains and losses associated with the reorganization, primarily the gain on settlement of liabilities subject to compromise, provision for allowed claims and legal and professional fees incurred subsequent to the Chapter 11 filings for the restructuring process. The accrual for allowed claims primarily represents damages from contract rejections and settlements attributable to the midstream savings requirement as stipulated in the Plan. While the claims reconciliation process is ongoing, the estimate of liabilities related to the rejection of certain midstream contracts reflects the best estimate of the most probable outcomes of ongoing litigation and settlement negotiations. The amount of these items, which were incurred in reorganization items, net within the accompanying unaudited condensed consolidated statements of operations, have significantly affected the Company's statements of operations. The following table summarizes the components in reorganization items, net included in the Company's unaudited consolidated statements of operations: Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Legal and professional advisory fees $ — $ (81,565) Net gain on liabilities subject to compromise — 575,182 Fresh start adjustments, net — (160,756) Elimination of predecessor accumulated other comprehensive income — (40,430) Debt issuance costs — (3,150) Other items, net — (22,383) Total reorganization items, net $ — $ 266,898 |
FRESH START ACCOUNTING
FRESH START ACCOUNTING | 9 Months Ended |
Sep. 30, 2021 | |
Reorganizations [Abstract] | |
FRESH START ACCOUNTING | CHAPTER 11 EMERGENCE As described in Note 1 , on November 13, 2020, the Debtors filed the Chapter 11 Cases and the Plan, which was subsequently amended, and entered the confirmation order on April 28, 2021. The Debtors then emerged from bankruptcy upon effectiveness of the Plan on May 17, 2021. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Plan. Plan of Reorganization In accordance with the Plan confirmed by the Bankruptcy Court, the following significant transactions occurred upon the Company's emergence from bankruptcy on May 17, 2021: • Shares of the Predecessor's common stock outstanding immediately prior to the Emergence Date were cancelled, and on the Emergence Date, the Company issued 19,845,780 shares of New Common Stock and 55,000 shares of New Preferred Stock, which were the result of the transactions described below. The Company also entered into a registration rights agreement and amended its articles of incorporation and bylaws for the authorization of the New Common Stock and New Preferred Stock among other corporate governance actions. See Note 6 for further discussion of the Company's post-emergence equity; • All outstanding obligations under the Predecessor Senior Notes were cancelled; • The Predecessor effectuated certain restructuring transactions, including entering into a plan of Merger with Gulfport Merger Sub, Inc., a newly formed, wholly owned subsidiary of Gulfport ("Merger Sub"), pursuant to which Merger Sub was merged with and into Predecessor, resulting in the Predecessor becoming a wholly owned subsidiary of Gulfport; • The Debtors entered into a Second Amended and Restated Credit Agreement (the "Exit Credit Agreement") with the Bank of Nova Scotia as administrative agent, various lender parties and acknowledged and agreed to by certain of Gulfport's subsidiaries, as guarantors, providing for (i) a new money senior secured reserve-based revolving credit facility in an aggregate maximum principal amount of up to $1.5 billion (the "Exit Facility"); (ii) a senior secured term loan in an aggregate maximum principal amount of up to $180 million (the "First-Out Term Loan") and together with the Exit Facility (the "Exit Credit Facility"), collectively with an initial borrowing base and elected commitment amount of up to $580 million (less the amount of any term loan deemed funded by any RBL Lender that is not a Consenting RBL Lender); • The Company entered into an indenture to issue up to $550 million aggregate principal amount of its 8.000% senior notes due 2026, dated as of May 17, 2021, by and among the Issuer, UMB Bank, National Association, as trustee, and the guarantors party thereto (such indenture, the “1145 Indenture,” and such senior notes issued thereunder, the “1145 Notes”), under section 1145 of the Bankruptcy Code (“Section 1145”). Certain eligible holders have made an election (the “4(a)(2) Election”) entitling such holders to receive senior notes issued pursuant to an indenture, dated as of May 17, 2021, by and among the Issuer, UMB Bank, National Association, as trustee, and the guarantors party thereto (such indenture, the “4(a)(2) Indenture,” and such senior notes issued thereunder, the “4(a)(2) Notes”), under Section 4(a)(2) of the Securities Act of 1933, as amended as opposed to its share of the up to $550 million aggregate principal amount of 1145 Notes. The 4(a)(2) Indenture's terms are substantially similar to the terms of the 1145 Indenture. The 1145 Indenture and the 4(a)(2) Indenture are referred to together as the "Indentures". The 1145 Notes and the 4(a)(2) Notes are collectively referred to as the "Successor Senior Notes"; • The DIP Credit Facility indefeasibly converted into the Exit Facility, and all commitments under the DIP Credit Facility terminated. Each holder of an Allowed DIP Claim received, in full and final satisfaction, settlement, release, and discharge of, and in exchange for, each Allowed DIP Claim its Pro Rata share of participation in the Exit Credit Facility; • Each holder of an Allowed Notes Claim received its pro rata share of 19,714,204 shares of New Common Stock, 54,967 shares of New Preferred Stock and New Unsecured Senior Notes. • 1,678,755 shares of New Common Stock were issued to the Disputed Claims reserve; • Each holder of a Class 4A Claim greater than the Convenience Claim Threshold received its pro rata share of 119,679 shares of New Common Stock (which were issued to the Unsecured Claims Distribution Trust), $10 million in cash, subject to adjustment by the Unsecured Claims Distribution Trustee, and 100% of the Mammoth Shares; • Each holder of a Class 4B claim greater than the Convenience Claim Threshold received its pro rata share of 11,897 shares of New Common Stock, 33 shares of New Preferred Stock, the Rights Offering Subscription Rights and the Successor Senior Notes. • Each holder of a Convenience Class Claim will share in a $3 million cash distribution pool, which the Unsecured Claims Distribution Trustee may increase by an additional $2 million by reducing the Gulfport Parent Cash Pool; • Each intercompany claim was cancelled on the Emergence Date and holders of intercompany interests received no recovery or distribution; • The Company conducted a Rights Offering and issued 50,000 shares of New Preferred Stock at $1,000 per share to holders of claims against the Predecessor Subsidiaries, raising $50 million in proceeds. Additionally, 5,000 shares were issued to the Back Stop Commitment counterparties in lieu of cash consideration as per the Backstop Commitment Agreement. • The Company adopted the Gulfport Energy Corporation 2021 Stock Incentive Plan (the "Incentive Plan") effective on the Emergence Date and reserved 2,828,123 shares of New Common Stock for issuance to Gulfport's employees and non-employee directors pursuant to equity incentive awards to be granted under the Incentive Plan. Additionally, pursuant to the Plan confirmed by the Bankruptcy Court, the Company's post-emergence Board of Directors is comprised of five directors, including the Company's Chief Executive Officer, Timothy Cutt, and four non-employee directors, David Wolf, Guillermo Martinez, Jason Martinez and David Reganato. Executory Contracts Subject to certain exceptions, under the Bankruptcy Code the Debtors were entitled to assume, assign or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and fulfillment of certain other conditions. Generally, the rejection of an executory contract was treated as a pre-petition breach of such contract and, subject to certain exceptions, relieved the Debtors from performing future obligations under such contract but entitled the counterparty to a pre-petition general unsecured claim for damages caused by such deemed breach. Alternatively, the assumption of an executory contract or unexpired lease required the Debtors to cure existing monetary defaults under such executory contract or unexpired lease, if any, and provide adequate assurance of future performance. Accordingly, any description of an executory contract or unexpired lease with the Debtors in this document, including where applicable quantification of the Company’s obligations under such executory or unexpired lease of the Debtors, is qualified by any overriding rejection rights the Company has under the Bankruptcy Code. Further, nothing herein is or shall be deemed an admission with respect to any claim amounts or calculations arising from the rejection of any executory contract or unexpired lease and the Debtors expressly preserve all of their rights thereto. Refer to Note 9 for more information on potential future rejection damages related to general unsecured claims. In connection with the Company's emergence from bankruptcy and in accordance with ASC 852, the Company qualified for and applied fresh start accounting on the Emergence Date. The Company qualified for fresh start accounting because (1) the holders of existing voting shares of the Company prior to the Emergence Date received less than 50% of the voting shares of the Successor's equity following its emergence from bankruptcy and (2) the reorganization value of the Company's assets immediately prior to confirmation of the Plan of approximately $2.3 billion was less than the post-petition liabilities and allowed claims of $3.1 billion. In accordance with ASC 852, with the application of fresh start accounting, the Company allocated its reorganization value to its individual assets based on their estimated fair value in conformity with FASB ASC Topic 820 - Fair Value Measurements and FASB ASC Topic 805 - Business Combinations . Accordingly, the consolidated financial statements after May 17, 2021 are not comparable with the consolidated financial statements as of or prior to that date. The Emergence Date fair values of the Successor's assets and liabilities differ materially from their recorded values as reflected on the historical balance sheet of the Predecessor. Reorganization Value Reorganization value is derived from an estimate of enterprise value, or fair value of the Company's interest-bearing debt and stockholders' equity. Under ASC 852, reorganization value generally approximates fair value of the entity before considering liabilities and is intended to approximate the amount a willing buyer would pay for the assets immediately after the effects of a restructuring. As set forth in the disclosure statement, amended for updated pricing, and approved by the Bankruptcy Court, the enterprise value of the Successor was estimated to be between $1.3 billion and $1.9 billion. With the assistance of third-party valuation advisors, the Company determined the enterprise value and corresponding implied equity value of the Successor using various valuation approaches and methods, including: (i) income approach using a calculation of present value of future cash flows based on our financial projections, (ii) the market approach using selling prices of similar assets and (iii) the cost approach. Deferred income taxes were determined in accordance with FASB ASC Topic 740 - Income Taxes . For GAAP purposes, the Company valued the Successor's individual assets, liabilities and equity instruments and determined an estimate of the enterprise value within the estimated range. Management concluded that the best estimate of enterprise value was $1.6 billion. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of fresh start accounting, are described below in greater detail within the valuation process. The enterprise value and corresponding implied equity value are dependent upon achieving the future financial results set forth in our valuation using an asset-based methodology of estimated proved reserves, undeveloped properties, and other financial information, considerations and projections, applying a combination of the income, cost and market approaches as of the fresh start reporting date of May 17, 2021. As estimates, assumptions, valuations and financial projections, including the fair value adjustments, the financial projections, the enterprise value and equity value projections, are inherently subject to significant uncertainties, the resolution of contingencies is beyond our control. Accordingly, there is no assurance that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially. The following table reconciles the enterprise value to the implied fair value of the Successor's equity as of the Emergence Date: Enterprise Value $ 1,600,000 Plus: Cash and cash equivalents (1) 1,526 Less: Fair value of debt (852,751) Successor equity value (2) $ 748,775 (1) Restricted cash is not included in the above table. (2) Inclusive of $55 million of mezzanine equity. The following table reconciles the enterprise value to the reorganization value as of the Emergence Date: Enterprise Value $ 1,600,000 Plus: Cash and cash equivalents (1) 1,526 Plus: Current and other liabilities 686,489 Plus: Asset retirement obligations 19,084 Less: Common stock reserved for settlement of claims post Emergence Date (54,109) Reorganization value of Successor assets $ 2,252,990 (1) Restricted cash is not included in the above table. The fair values of our oil and natural gas properties, other property and equipment, derivative instruments, equity investments and asset retirement obligations were estimated as of the Emergence Date. Oil and natural gas properties . The Company's principal assets are its oil and natural gas properties, which are accounted for under the full cost method of accounting. The Company determined the fair value of its oil and natural gas properties based on the discounted future net cash flows expected to be generated from these assets. Discounted cash flow models by operating area were prepared using the estimated future revenues and operating costs for all developed wells and undeveloped properties comprising the proved and unproved reserves. Significant inputs associated with the calculation of discounted future net cash flows include estimates of (i) recoverable reserves, (ii) production rates, (iii) future operating and development costs, (iv) future commodity prices escalated by an inflationary rate after seven years, adjusted for differentials and (v) a market-based weighted average cost of capital by operating area. The Company utilized NYMEX strip pricing, adjusted for differentials, to value the reserves. The NYMEX strip pricing inputs used are classified as Level 1 fair value assumptions and all other inputs are classified as Level 3 fair value assumptions. The discount rates utilized were derived using a weighted average cost of capital computation, which included an estimated cost of debt and equity for market participants with similar geographies and asset development type by operating area. Other property and equipmen t. The fair value of other property and equipment, such as land, buildings, vehicles, computer equipment and other equipment, was maintained at net book value as the carrying value reasonably approximated the fair value of the assets. Asset retirement obligation s. In accordance with FASB ASC Topic 410 - Asset Retirement and Environmental Obligations ("ASC 410"), the asset retirement obligations associated with the Company's oil and gas assets was valued using the income approach. The fair value of the Company’s asset retirement obligations was revalued based upon estimated current reclamation costs for our assets with reclamation obligations, updated estimates of timing of reclamation obligations, an appropriate long-term inflation adjustment, and the Company's revised credit adjusted risk-free rate. The credit adjusted risk-free rate was based on an evaluation of an interest rate that equates to a risk-free interest rate adjusted for the effect of the Company's credit standing. Derivative Instruments. The fair value of derivative instruments was adjusted based on the change in the Company’s credit rating reflecting the Company’s credit standing at the Emergence Date. Equity Investments . The fair value of the Company's investment in Grizzly Sands ULC was reduced by $27 million. The reduction in valuation was based upon the assessment of the investment by the Company's new management and its priority for future funding in its portfolio. In particular, Grizzly’s operations remained suspended, even with improvements in the pricing environment since its initial suspension in 2015. Additionally, the Company does not anticipate funding future capital calls which will lead to further dilution of its equity ownership interest. Consolidated Balance Sheet The following consolidated balance sheet is as of May 17, 2021. This consolidated balance sheet includes adjustments that reflect the consummation of the transactions contemplated by the Plan (reflected in the column “Reorganization Adjustments”) as well as fair value adjustments as a result of the adoption of fresh start accounting (reflected in the column “Fresh Start Adjustments”) as of the Emergence Date. The explanatory notes following the table below provide further details on the adjustments, including the assumptions and methods used to determine fair value for its assets and liabilities. As of May 17, 2021 Predecessor Reorganization Adjustments Fresh Start Adjustments Successor (In thousands) Assets Current assets: Cash and cash equivalents $ 146,545 $ (145,019) (a) $ — $ 1,526 Restricted cash — 57,891 (b) — 57,891 Accounts receivable—oil and natural gas sales 180,711 — — 180,711 Accounts receivable—joint interest and other 15,431 — — 15,431 Prepaid expenses and other current assets 86,189 (60,894) (c) — 25,295 Short-term derivative instruments 3,324 — 141 (r) 3,465 Total current assets 432,200 (148,022) 141 284,319 Property and equipment: Oil and natural gas properties, full-cost method Proved oil and natural gas properties 9,558,121 — (7,860,713) (s) 1,697,408 Unproved properties 1,375,681 — (1,145,507) (s) 230,174 Other property and equipment 38,026 — (31,133) (t) 6,893 Total property and equipment 10,971,828 — (9,037,353) 1,934,475 Accumulated depletion, depreciation and amortization (8,870,723) — 8,870,723 (u) — Total property and equipment, net 2,101,105 — (166,630) 1,934,475 Other assets: Equity investments 27,044 — (27,044) (v) — Long-term derivative instruments 7,468 — 715 (w) 8,183 Operating lease assets 47 — — 47 Other assets 18,866 7,100 (d) — 25,966 Total other assets 53,425 7,100 (26,329) 34,196 Total assets $ 2,586,730 $ (140,922) $ (192,818) $ 2,252,990 Predecessor Reorganization Adjustments Fresh Start Adjustments Successor (In thousands) Liabilities and Stockholders’ Equity (Deficit) Current liabilities: Accounts payable and accrued liabilities $ 384,200 $ 122,599 (e) $ — $ 506,799 Short-term derivative instruments 96,116 — 2,784 (x) 98,900 Current portion of operating lease liabilities — 38 (f) — 38 Current maturities of long-term debt 280,251 (220,251) (g) — 60,000 Total current liabilities 760,567 (97,614) 2,784 665,737 Non-current liabilities: Long-term derivative instruments 69,331 — 11,411 (y) 80,742 Asset retirement obligation — 65,341 (h) (46,257) (z) 19,084 Non-current operating lease liabilities — 9 (i) — 9 Long-term debt, net of current maturities — 792,751 (j) — 792,751 Total non-current liabilities 69,331 858,101 (34,846) 892,586 Liabilities subject to compromise 2,224,449 (2,224,449) (k) — — Total liabilities $ 3,054,347 $ (1,463,962) $ (32,062) $ 1,558,323 Commitments and contingencies ( Note 9 ) Mezzanine Equity: New Preferred Stock $ — $ 55,000 (l) $ — $ 55,000 Stockholders’ equity (deficit): Predecessor common stock 1,609 (1,609) (m) — — New Common Stock — 2 (n) — 2 Additional paid-in capital 4,215,838 (3,522,064) (o) — 693,774 New Common Stock held in reserve — (54,109) (p) — (54,109) Accumulated other comprehensive loss (40,430) 40,430 (q) — — Retained earnings (accumulated deficit) (4,644,634) 4,805,390 (q) (160,756) (aa) — Total stockholders’ equity (deficit) $ (467,617) $ 1,268,040 $ (160,756) $ 639,667 Total liabilities, mezzanine equity and stockholders’ equity (deficit) $ 2,586,730 $ (140,922) $ (192,818) $ 2,252,990 Reorganization Adjustments (a) The table below reflects changes in cash and cash equivalents on the Emergence Date from implementation of the Plan: Release of escrow funds by counterparties as a result of the Plan $ 63,068 New Preferred Stock rights offering proceeds 50,000 Funds required to rollover the DIP Credit Facility and Pre-Petition Revolving Credit Facility into the Exit Facility (175,000) Payment of accrued Pre-Petition Revolving Credit Facility and DIP Credit Facility interest (1,022) Payment of issuance costs related to the Exit Credit Facility (10,250) Funding of the Professional Fee Escrow (43,891) Payment of professional fees at Emergence Date (7,964) Transfer to restricted cash for the Unsecured Claims Distribution Trust (1,000) Transfer to restricted cash for the Convenience Claims Cash Pool (3,000) Transfer to restricted cash for the Parent Cash Pool (10,000) Payment of severance costs at Emergence Date (5,960) Net change in cash and cash equivalents $ (145,019) (b) Changes in restricted cash reflect the net effect of transfers from cash and cash equivalents for the Professional Fee Escrow and various claims class cash pools. (c) Changes in prepaid expenses and other current assets include the following: Release of escrow funds as a result of the Plan $ (63,068) Recognition of counterparty credits due to settlements effectuated at Emergence 4,247 Prepaid compensation earned at Emergence (2,073) Net change in prepaid expenses and other current assets $ (60,894) (d) Changes in other assets were due to capitalization of debt issuance costs related to the Exit Credit Facility. (e) Changes in accounts payable and accrued liabilities included the following: Payment of accrued Pre-Petition Revolving Credit Facility and DIP Credit Facility interest $ (1,022) Payment of professional fees at emergence (7,964) Accrued payable for claims to be settled via Unsecured Claims Distribution Trust 1,000 Accrued payable for claims to be settled via Convenience Claims Cash Pool 3,000 Accrued payable for claims to be settled via Parent Cash Pool 10,000 Professional fees payable at Emergence 18,047 Accrued payable for General Unsecured Claims against Gulfport Parent to be settled via 4A Claims distribution from common shares held in reserve 23,894 Accrued payable for General Unsecured Claims against Gulfport Subsidiary to be settled via 4B Claims distribution from common shares held in reserve 30,216 Reinstatement of payables due to Plan effects 45,428 Net change in accounts payable and accrued liabilities $ 122,599 (f) Changes to current operating lease liabilities reflect the reinstatement of lease liabilities due to contract assumptions. (g) Changes in the current maturities of long-term debt include the following: Current portion of Term Notes issued under the Exit Facility $ 60,000 Payment of DIP Facility to effectuate Exit Facility (157,500) Transfer of post-petition RBL borrowings to Exit Facility (122,751) Net changes to current maturities of long-term debt $ (220,251) (h) Reflects the reclassification of asset retirement obligations from liabilities subject to compromise. (i) Changes to non-current operating lease liabilities reflect the reinstatement of lease liabilities due to contract assumptions. (j) Changes in long-term debt include the following: Emergence Date draw on Exit Facility $ 122,751 Noncurrent portion of First-Out Term Loan issued under the Exit Credit Facility 120,000 Issuance of Successor Senior Notes 550,000 Net impact to long-term debt, net of current maturities $ 792,751 (k) On the Emergence Date, liabilities subject to compromise were settled in accordance with the Plan as follows: General Unsecured Claims settled via Class 4A, 4B, and 5B distributions $ 74,098 Predecessor Senior Notes and associated interest 1,842,035 Pre-Petition Revolving Credit Facility 197,500 Reinstatement of Predecessor Claims as Successor liabilities 45,475 Reinstatement of Predecessor asset retirement obligations 65,341 Total liabilities subject to compromise settled in accordance with the Plan $ 2,224,449 The resulting gain on liabilities subject to compromise was determined as follows: Pre-petition General Unsecured Claims Settled at Emergence $ 74,098 Predecessor Senior Notes Claims settled at Emergence 1,842,035 Pre-Petition Revolving Credit Facility 197,500 Rollover of Pre-Petition Revolving Credit Facility into Exit RBL Facility (197,500) Accrued payable for claims to be settled via Unsecured Claims Distribution Trust (1,000) Accrued payable for claims to be settled via Convenience Claims Cash Pool (3,000) Accrued payable for claims to be settled via Parent Cash Pool (10,000) Accrued payable for shares to be transferred to trust (54,109) Issuance of New Common Stock to settle Predecessor liabilities (639,666) Issuance of Successor Senior Notes in settlement of Class 4B and 5B claims (550,000) Gain on settlement of liabilities subject to compromise $ 658,358 (l) Changes to New Preferred Stock reflect the fair value of preferred shares issued in the Rights Offering. (m) Changes in Predecessor common stock reflect the extinguishment of Predecessor equity as per the Plan. (n) Changes in New Common Stock included the following: Issuance of common stock to settle General Unsecured Claims against Gulfport Parent (par value) $ — Issuance of common stock to settle General Unsecured Claims against Gulfport Subsidiaries (par value) 2 Common stock reserved for settlement of claims post Emergence Date (par value) — Net change to New Common Stock $ 2 (o) Changes to paid in capital included the following: Issuance of common stock to settle General Unsecured Claims against Gulfport Parent $ 27,751 Issuance of common stock to settle General Unsecured Claims against Gulfport Subsidiaries 666,022 Extinguishment of Predecessor stock-based compensation 4,419 Extinguishment of Predecessor paid in capital (4,220,256) Net change to paid in capital $ (3,522,064) (p) New Common Stock held in reserve to settle Allowed General Unsecured Claims include: Shares held in reserve to settle Allowed Claims against Gulfport Parent (23,894) Shares held in reserve to settle Allowed Claims against Gulfport Subsidiary (30,215) Total New Common Stock held in reserve $ (54,109) (q) Change to retained earnings (accumulated deficit) included the following Gain on settlement of liabilities subject to compromise $ 658,358 Extinguishment of Predecessor common stock and paid in capital 4,221,864 Recognition of counterparty credits due to settlements effectuated at Emergence 4,247 Deferred compensation earned at Emergence (2,073) Extinguishment of Predecessor accumulated other comprehensive income (40,430) Write-off of debt issuance costs related to First-Out Term Loan (3,150) Severance costs incurred as a result of the Plan (5,961) Professional fees earned at Emergence (18,047) Rights offering backstop commitment fee (5,000) Extinguishment of Predecessor stock-based compensation (4,418) Net change to retained earnings (accumulated deficit) $ 4,805,390 Fresh Start Adjustments (r) The change in fair value of short-term derivative instruments is due to the change in the Company's post-emergence credit rating. (s) The change in oil and natural gas properties represents the fair value adjustment to the Company's properties due to the adoption of fresh start accounting. (t) Predecessor accumulated depreciation and amortization for other property and equipment was net against the gross value of the assets with the adoption of fresh start accounting. (u) Predecessor accumulated depreciation and amortization was eliminated with the adoption of fresh start accounting. (v) The change in equity investments is due to the fair value adjustment to the Company's Grizzly investment. (w) The change in fair value of long-term derivative instruments is due to the change in the Company's post-emergence credit rating. (x) The change in fair value of liabilities related to short-term derivative instruments is due to the change in the Company's post-emergence credit rating. (y) The change in fair value of liabilities related to long-term derivative instruments is due to the change in the Company's post-emergence credit rating. (z) The fair value of asset retirement obligations were reduced due to the change in the Company's credit adjusted risk-free rate and expected economic life estimates. (aa) Changes to retained earnings represent the total impact of fresh start adjustments to the post-reorganization balance sheet. Reorganization Items, Net The Company has incurred significant expenses, gains and losses associated with the reorganization, primarily the gain on settlement of liabilities subject to compromise, provision for allowed claims and legal and professional fees incurred subsequent to the Chapter 11 filings for the restructuring process. The accrual for allowed claims primarily represents damages from contract rejections and settlements attributable to the midstream savings requirement as stipulated in the Plan. While the claims reconciliation process is ongoing, the estimate of liabilities related to the rejection of certain midstream contracts reflects the best estimate of the most probable outcomes of ongoing litigation and settlement negotiations. The amount of these items, which were incurred in reorganization items, net within the accompanying unaudited condensed consolidated statements of operations, have significantly affected the Company's statements of operations. The following table summarizes the components in reorganization items, net included in the Company's unaudited consolidated statements of operations: Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Legal and professional advisory fees $ — $ (81,565) Net gain on liabilities subject to compromise — 575,182 Fresh start adjustments, net — (160,756) Elimination of predecessor accumulated other comprehensive income — (40,430) Debt issuance costs — (3,150) Other items, net — (22,383) Total reorganization items, net $ — $ 266,898 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The major categories of property and equipment and related accumulated DD&A and impairment as of September 30, 2021 and December 31, 2020 are as follows: Successor Predecessor September 30, 2021 December 31, 2020 Proved oil and natural gas properties $ 1,831,762 $ 9,359,866 Unproved properties 216,357 1,457,043 Other depreciable property and equipment 4,891 85,530 Land 386 3,008 Total property and equipment 2,053,396 10,905,447 Accumulated DD&A and impairment (212,403) (8,819,178) Property and equipment, net $ 1,840,993 $ 2,086,269 Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the Company's oil and natural gas properties. At September 30, 2021, the net book value of the Company's oil and gas properties was below the calculated ceiling for the period leading up to September 30, 2021. As a result, the Company did not record an impairment of its oil and natural gas properties during the third quarter of 2021. The Company recorded impairment charges of $117.8 million for the Current Combined YTD Period. The Company recorded impairments of its oil and natural gas properties of $270.9 million and $1.4 billion for the Prior Predecessor Quarter and the Prior Predecessor YTD Period, respectively, as a result of the significant decrease in commodity prices. Certain general and administrative costs are capitalized to the full cost pool and represent management’s estimate of costs incurred directly related to exploration and development activities. All general and administrative costs not capitalized are charged to expense as they are incurred. Capitalized general and administrative costs were approximately $5.1 million for the Current Successor Quarter, $7.3 million for the Current Successor YTD Period, and $8.0 million for the Current Predecessor YTD Period. Capitalized general and administrative costs were approximately $6.2 million and $19.8 million for the Prior Predecessor Quarter and the Prior Predecessor YTD Period, respectively. The Company evaluates the costs excluded from its amortization calculation at least annually. Individually insignificant unevaluated properties are grouped for evaluation and periodically transferred to evaluated properties over a timeframe consistent with their expected development schedule. The following table summarizes the Company’s unevaluated properties excluded from amortization by area at September 30, 2021: Successor September 30, 2021 (In thousands) Utica $ 179,449 SCOOP 36,905 Other 3 Total unproved properties $ 216,357 Impairment of Other Property and Equipment During the Current Predecessor YTD Period, the Company recorded an impairment of $14.6 million related to its corporate headquarters as a result of changes in the expected future use. Asset Retirement Obligation The following table provides a reconciliation of the Company’s asset retirement obligation for the periods presented: Asset retirement obligation at January 1, 2021 (Predecessor) $ 63,566 Liabilities incurred 546 Accretion expense 1,229 Ending balance as of May 17, 2021 (Predecessor) $ 65,341 Fresh start adjustments (1) (46,257) Asset retirement obligation at May 18, 2021 (Successor) $ 19,084 Liabilities incurred 37 Accretion expense 226 Asset retirement obligation at June 30, 2021 $ 19,347 Liabilities incurred 19 Accretion expense 488 Asset retirement obligation at September 30, 2021 $ 19,854 (1) See Note 3 for additional discussion of fresh start adjustments. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following items as of September 30, 2021 and December 31, 2020: Successor Predecessor September 30, 2021 December 31, 2020 Exit Facility $ 35,606 $ — First-Out Term Loan 165,000 — 8.000% senior unsecured notes due 2026 550,000 — DIP Credit Facility — 157,500 Pre-Petition Revolving Credit Facility — 292,910 6.625% senior unsecured notes due 2023 — 324,583 6.000% senior unsecured notes due 2024 — 579,568 6.375% senior unsecured notes due 2025 — 507,870 6.375% senior unsecured notes due 2026 — 374,617 Building Loan — 21,914 Debt issuance costs (1,104) — Total Debt $ 749,502 $ 2,258,962 Less: current maturities of long-term debt (60,000) (253,743) Less: amounts reclassified to liabilities subject to compromise — (2,005,219) Total Debt reflected as long term $ 689,502 $ — Successor Debt Our post-emergence debt consisted of the Exit Credit Facility and the Successor Senior Notes. Subsequent to the end of the third quarter of 2021, the Company amended and refinanced the Exit Credit Facility with the New Credit Facility. New Credit Facility On October 14, 2021, the Company entered into the New Credit Facility for an aggregate maximum principal amount of up to $1.5 billion, an initial borrowing base of $850.0 million and an initial aggregate elected commitment amount of $700.0 million. See Note 17 for additional discussion of the New Credit Facility. Exit Credit Facility As discussed in Note 2 , on the Emergence Date, pursuant to the terms of the Plan, the Company entered into the Exit Credit Agreement, which provided for (i) the Exit Facility in an aggregate principal amount of up to $1.5 billion and (ii) the First-Out Term Loan in an aggregate maximum amount of up to $180.0 million. The Exit Facility had an initial borrowing base and elected commitment amount of up to $580.0 million. Loans drawn under the Exit Facility were not subject to amortization, while loans drawn under the First-Out Term Loan amortized with $15.0 million quarterly installments, commencing on the closing date and occurring every three months after the closing date. The Exit Credit Facility was schedule to mature on May 17, 2024. The Exit Facility provided for a $150.0 million sublimit of the aggregate commitments that is available for the issuance of letters of credit. The Exit Facility also included a $40 million availability blocker that was to remain in place until Successful Midstream Resolution (as defined in the Exit Credit Agreement), as discussed in Note 9 . As of September 30, 2021, the Exit Facility and the First-Out Term Loan bore interest at weighted average rates of 4.50% and 5.50%, respectively. As of September 30, 2021, the Company had $35.6 million outstanding borrowings under the Exit Facility, $165 million outstanding borrowings under the First-Out Term Loan and $115.5 million in letters of credit outstanding. At September 30, 2021, the Company was in compliance with all covenants under its Exit Credit Facility. Successor Senior Notes As discussed in Note 2 , on the Emergence Date, pursuant to the terms of the Plan, the Company issued $550 million aggregate principal amount of its 8.000% senior notes due 2026. The notes are guaranteed on a senior unsecured basis by each of the Company's subsidiaries that guarantee the Exit Credit Facility and the New Credit Facility as discussed in Note 17 . Interest on the Successor Senior Notes will be payable semi-annually, on June 1 and December 1 of each year, commencing on December 1, 2021. The Successor Senior Notes were issued under the Indentures, dated as of May 17, 2021, by and among the Issuer, UMB Bank, National Association, as trustee, and the Guarantors. The covenants of the 1145 Indenture (other than the payment covenant) require that the Company comply with the covenants of the 4(a)(2) Indenture, as amended. The 4(a)(2) Indenture contains covenants limiting the Issuer’s and its restricted subsidiaries’ ability to (i) incur additional debt, (ii) pay dividends or distributions in respect of certain equity interests or redeem, repurchase or retire certain equity interests or subordinated indebtedness, (iii) make certain investments, (iv) create restrictions on distributions from restricted subsidiaries, (v) engage in specified sales of assets, (vi) enter into certain transactions among affiliates, (vii) engage in certain lines of business, (viii) engage in consolidations, mergers and acquisitions, (ix) create unrestricted subsidiaries and (x) incur or create liens. These covenants contain important exceptions, limitations and qualifications. At any time that the Successor Senior Notes are rated investment grade, certain covenants will be terminated and cease to apply. Chapter 11 Proceedings - Predecessor Debt Filing of the Chapter 11 Cases constituted an event of default with respect to certain of our secured and unsecured debt obligations. As a result of the Chapter 11 Cases, the principal and interest due under these debt instruments became immediately due and payable. However, Section 362 of the Bankruptcy Code stayed the creditors from taking any action as a result of the default. The principal amounts from the Predecessor Senior Notes, Building Loan and Pre-Petition Revolving Credit Facility, other than letters of credit drawn on the Pre-Petition Revolving Credit Facility after the Petition Date, have been classified as liabilities subject to compromise on the accompanying consolidated balance sheet as of December 31, 2020. Debtor-in-Possession Credit Agreement Pursuant to the RSA, the Consenting RBL Lenders agreed to provide the Company with a senior secured superpriority debtor-in-possession revolving credit facility in an aggregate principal amount of $262.5 million consisting of (a) $105 million of new money and (b) $157.5 million to roll up a portion of the existing outstanding obligations under the Pre-Petition Revolving Credit Facility. The terms and conditions of the DIP Credit Facility are set forth in that certain form of credit agreement governing the DIP Credit Facility. The proceeds of the DIP Credit Facility were used for, among other things, post-petition working capital, permitted capital investments, general corporate purposes, letters of credit, administrative costs, premiums, expenses and fees for the transactions contemplated by the Chapter 11 Cases and payment of court approved adequate protection obligations. On the Emergence Date, the DIP Facility was terminated and the lenders indefeasibly converted into the Exit Facility. Each holder of an allowed DIP Claim received, in full and final satisfaction, settlement, release, and discharge of, and in exchange for, each Allowed DIP Claim its Pro Rata share of participation in the Exit Credit Facility. Pre-Petition Revolving Credit Facility Prior to the Emergence Date, the Company had entered into a senior secured revolving credit facility agreement, as amended, with The Bank of Nova Scotia, as the lead arranger and administrative agent and certain lenders from time to time party thereto. The Pre-Petition Revolving Credit Facility had a borrowing base of $580 million. On the Emergence Date, the Pre-Petition Revolving Credit Facility was terminated and the lenders indefeasibly converted into the Exit Credit Facility. Each holder of an allowed claim under the Pre-Petition Revolving Credit Facility received, in full and final satisfaction, settlement, release, and discharge of, and in exchange for, each Allowed DIP Claim its Pro Rata share of participation in the Exit Credit Facility. Predecessor Senior Notes On the Emergence Date, all outstanding obligations under the Predecessor Senior Notes were cancelled in accordance with the Plan and each holder of an allowed unsecured notes claim received their pro-rata share of 19.7 million shares of New Common Stock and $550 million of the Successor Senior Notes. Predecessor Building Loan In June 2015, the Company entered into a loan for the construction of the Company's corporate headquarters in Oklahoma City, which was substantially completed in December 2016. On the Emergence Date, ownership of the Company's corporate headquarters reverted to the Building Loan lender and the Company entered into a short-term lease agreement for the headquarters with the lender. As a result, the building loan liability was discharged as of the Emergence Date. Capitalization of Interest The Company capitalized approximately $0.1 million of interest expense for the Current Successor YTD Period related to its unevaluated oil and natural gas properties. The Company did not capitalize interest expense for the Current Predecessor YTD Period. The Company capitalized approximately $0.2 million and $0.9 million in interest expense during the Prior Predecessor Quarter and the Prior Predecessor YTD Period, respectively. Fair Value of Debt At September 30, 2021, the carrying value of the outstanding debt represented by the Successor Senior Notes was $548.9 million. Based on the quoted market prices (Level 1), the fair value of the Successor Senior Notes was determined to be $601.4 million at September 30, 2021. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
EQUITY | EQUITY As discussed in Note 2 , the Company filed an amended and restated certificate of incorporation with the Delaware Secretary of State on the Emergence Date to provide for, among other things, (i) the authority to issue 42 million shares of New Common Stock with a par value of $0.0001 per share and (ii) the designation of 110,000 shares of New Preferred Stock, with a par value of $0.0001 per share and a liquidation preference of $1,000 per share. New Common Stock On the Emergence Date, all existing shares of the Predecessor's common stock were cancelled. The Successor issued approximately 19.8 million shares of New Common Stock and 1.7 million shares of New Common Stock were issued to the Disputed Claims reserve. New Preferred Stock On the Emergence Date, the Successor issued 55,000 shares of New Preferred Stock. Holders of New Preferred Stock are entitled to receive cumulative quarterly dividends at a rate of 10% per annum of the Liquidation Preference (as defined below) with respect to cash dividends and 15% per annum of the Liquidation Preference with respect to dividends paid in kind as additional shares of New Preferred Stock (“PIK Dividends”). Gulfport must pay PIK Dividends for so long as the quotient obtained by dividing (i) Total Net Funded Debt (as defined in the Exit Credit Facility) by (ii) the last twelve (12) months of EBITDAX (as defined in the Exit Credit Facility) calculated as at the applicable record date is equal to or greater than 1.50. If such ratio is less than 1.50 such dividend may be paid in either cash or as PIK Dividends, subject to certain conditions under the Company's credit agreement. This requirement with respect to PIK Dividends is no longer applicable upon the effective date of the New Credit Facility. Each holder of shares of New Preferred Stock has the right (the “Conversion Right”), at its option and at any time, to convert all or a portion of the shares of New Preferred Stock that it holds into a number of shares of Common Stock equal to the quotient obtained by dividing (x) the product obtained by multiplying (i) the Liquidation Preference times (ii) an amount equal to one (1) plus the Per Share Makewhole Amount (as defined in the Preferred Terms) on the date of conversion, by (y) $14.00 per share (as may be adjusted under the Preferred Terms) (the “Conversion Price”). The shares of New Preferred Stock outstanding at September 30, 2021 would convert to 4.1 million shares of New Common Stock if all holders of New Preferred Stock exercised their Conversion Right. Gulfport shall have the right, but not the obligation, to redeem all, but not less than all, of the outstanding shares of New Preferred Stock by notice to the holders of New Preferred Stock, at the greater of (i) the aggregate value of the New Preferred Stock, calculated by the Current Market Price (as defined in the Preferred Terms) of the number of shares of Common Stock into which, subject to redemption, such New Preferred Stock would have been converted if such shares were converted pursuant to the Conversion Right at the time of such redemption and (ii) (y) if the date of such redemption is on or prior to the three year anniversary of the Emergence Date, the sum of the Liquidation Preference plus the sum of all unpaid PIK Dividends through the three year anniversary of the Emergence Date, or (x) if the date of such redemption is after the three year anniversary of the Emergence Date, the Liquidation Preference (the “Redemption Price”). Following the Emergence Date, if there is a Fundamental Change (as defined in the Preferred Terms), Gulfport is required to redeem all, but not less than all, of the outstanding shares of New Preferred Stock by cash payment of the Redemption Price per share of New Preferred Stock within three (3) business days of the occurrence of such Fundamental Change. Notwithstanding the foregoing, in the event of a redemption pursuant to the preceding sentence, if Gulfport lacks sufficient cash to redeem all outstanding shares of New Preferred Stock, the Company is required to redeem a pro rata portion of each holder’s shares of New Preferred Stock. The New Preferred Stock has no stated maturity and will remain outstanding indefinitely unless repurchased or redeemed by Gulfport or converted into Common Stock. The New Preferred Stock has been classified as mezzanine equity in the accompanying consolidated balance sheets due to the redemption features noted above. Dividends On September 30, 2021, the company paid dividends on its New Preferred Stock, which included 2,065 shares of New Preferred Stock paid in kind and approximately $30 thousand of cash-in-lieu of fractional shares. The following table summarizes PIK dividends and conversions of the Company’s New Preferred Stock subsequent to the Emergence Date: New Preferred Stock at May 18, 2021 (Successor) 55,000 Issuance of New Preferred Stock 1,006 Conversion of New Preferred Stock (146) New Preferred Stock at June 30, 2021 55,860 Issuance of New Preferred Stock 2,065 Conversion of New Preferred Stock (5) New Preferred Stock at September 30, 2021 57,920 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION As discussed in Note 2 , on the Emergence Date, the Company's Predecessor common stock was cancelled and New Common Stock was issued. Accordingly, the Company's then existing stock-based compensation awards were also cancelled, which resulted in the recognition of previously unamortized expense of $4.4 million related to the cancelled awards on the date of cancellation, which was included in reorganization items, net on the accompanying consolidated statements of operations. Stock-based compensation for the Predecessor and Successor periods are not comparable. Successor Stock-Based Compensation As of the Emergence Date, the board of directors adopted the Incentive Plan with a share reserve equal to 2,828,123 shares of New Common Stock. The Incentive Plan provides for the grant of incentive stock options, nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, dividend equivalents and performance awards or any combination of the foregoing. The Company has granted restricted stock units to employees and directors pursuant to the Incentive Plan, as discussed below. During the Current Successor Quarter and the Current Successor YTD Period, the Company's stock-based compensation expense was $1.4 million, of which the Company capitalized $0.5 million relating to its exploration and development efforts. Stock compensation expense, net of the amounts capitalized, is included in general and administrative expenses in the accompanying consolidated statements of operations. The following table summarizes restricted stock unit activity for the Current Successor YTD Period: Number of Weighted Number of Weighted Unvested shares as of May 18, 2021 — $ — — $ — Granted 198,755 65.92 141,697 47.67 Vested — — — — Forfeited/canceled — — — — Unvested shares as of September 30, 2021 198,755 $ 65.92 141,697 $ 47.67 Successor Restricted Stock Units Restricted stock units awarded under the Incentive Plan generally vest over a period of 1 to 4 years in the case of employees and 4 years in the case of directors upon the recipient meeting applicable service requirements. Stock-based compensation expense is recorded ratably over the service period. The grant date fair value of restricted stock units represents the closing market price of the Company's common stock on the date of the grant. Unrecognized compensation expense as of September 30, 2021 was $12.2 million. The expense is expected to be recognized over a weighted average period of 3.05 years. Successor Performance Vesting Restricted Stock Units The Company has awarded performance vesting restricted stock units to certain of its executive officers under the Incentive Plan. The number of shares of common stock issued pursuant to the award will be based on a combination of (i) the Company's total shareholder return ("TSR") and (ii) the Company's relative total shareholder return ("RTSR") for the performance period. Participants will earn from 0% to 200% of the target award based on the Company's TSR and RTSR ranking compared to the TSR of the companies in the Company's designated peer group at the end of the performance period. Awards will be earned and vested over a performance period from May 17, 2021 to May 17, 2024, subject to earlier termination of the performance period in the event of a change in control. The grant date fair value was determined using the Monte Carlo simulation method and is being recorded ratably over the performance period. Expected volatilities utilized in the Monte Carlo model were estimated using a historical period consistent with the remaining performance period of approximately 3 years. The risk-free interest rate was based on the U.S. Treasury rate for a term commensurate with the expected life of the grant. The Company assumed a risk-free interest rate of 0.35% and expected volatility of 87.0% to estimate the fair value. Unrecognized compensation expense as of September 30, 2021, related to performance vesting restricted shares was $6.3 million. The expense is expected to be recognized over a weighted average period of 2.8 years. Predecessor Stock-Based Compensation The Company granted restricted stock units to employees and directors pursuant to the 2019 Amended and Restated Incentive Stock Plan ("2019 Plan"). During the Current Predecessor YTD Period, the Company’s stock-based compensation cost was $4.4 million, of which the Company capitalized $0.9 million, relating to its exploration and development efforts. During the Prior Predecessor Quarter and the Prior Predecessor YTD Period, the Company’s stock-based compensation cost was $8.9 million and $13.2 million, respectively, of which the Company capitalized $0.3 million and $2.2 million, respectively, relating to its exploration and development efforts. Stock compensation costs, net of the amounts capitalized, are included in general and administrative expenses in the accompanying consolidated statements of operations. The following table summarizes restricted stock unit activity for the Current Predecessor YTD Period: Number of Weighted Number of Weighted Unvested shares as of January 1, 2021 1,702,513 $ 4.74 840,595 $ 4.07 Granted — — — — Vested (227,132) 8.45 — — Forfeited/canceled (1,475,381) 4.16 (840,595) 4.07 Unvested shares as of May 17, 2021 — $ — — $ — Predecessor Restricted Stock Units Restricted stock units awarded under the 2019 Plan generally vested over a period of one year in the case of directors and three years in the case of employees and vesting was dependent upon the recipient meeting applicable service requirements. Stock-based compensation costs are recorded ratably over the service period. The grant date fair value of restricted stock units represents the closing market price of the Company's common stock on the date of grant. All unrecognized compensation expense was recognized as of the Emergence Date. Predecessor Performance Vesting Restricted Stock Units The Company previously awarded performance vesting restricted stock units to certain of its executive officers under the 2019 Plan. The number of shares of common stock issued pursuant to the award was based on RTSR. RTSR is an incentive measure whereby participants will earn from 0% to 200% of the target award based on the Company’s TSR ranking compared to the TSR of the companies in the Company’s designated peer group at the end of the performance period. Awards were to be earned and vested over a performance period measured from January 1, 2019 to December 31, 2021, subject to earlier termination of the performance period in the event of a change in control. All unrecognized compensation expense was recognized as of the Emergence Date. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE Basic income or loss per share attributable to common stockholders is computed as (i) net income or loss less (ii) dividends paid to holders of New Preferred Stock less (iii) net income or loss attributable to participating securities divided by (iv) weighted average basic shares outstanding. Diluted net income or loss per share attributable to common stockholders is computed as (i) basic net income or loss attributable to common stockholders plus (ii) diluted adjustments to income allocable to participating securities divided by (iii) weighted average diluted shares outstanding. The "if-converted" method is used to determine the dilutive impact for the Company's convertible New Preferred Stock and the treasury stock method is used to determine the dilutive impact of unvested restricted stock. There were no potential shares of common stock that were considered dilutive for the Current Successor YTD Period, Current Successor Quarter, Current Predecessor Quarter or the Current Predecessor YTD Period. There were 4.1 million shares of potential common shares issuable due to the Company's convertible New Preferred Stock that were considered anti-dilutive for the Current Successor YTD Period due to the Company's net loss. There were 0.1 million shares of restricted stock that were considered anti-dilutive during the Current Successor Quarter and Current Successor YTD Period due to the Company's net loss. Reconciliations of the components of basic and diluted net (loss) income per common share are presented in the tables below: Successor Predecessor Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Net loss $ (461,313) $ (380,963) Dividends on New Preferred Stock (2,095) — Participating securities - New Preferred Stock (1) — — Net loss attributable to common stockholders $ (463,408) $ (380,963) Basic Shares 20,598 160,683 Basic and Dilutive EPS $ (22.50) $ (2.37) Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Net (loss) income attributable to Gulfport $ (670,898) $ 250,996 $ (1,459,569) Dividends on New Preferred Stock (3,126) — — Participating securities - New Preferred Stock (1) — — — Net (loss) income attributable to common stockholders $ (674,024) $ 250,996 $ (1,459,569) Basic Shares 20,507 160,834 160,053 Basic and Dilutive EPS $ (32.87) $ 1.56 $ (9.12) (1) New Preferred Stock represents participating securities because they participate in any dividends on shares of common stock on a pari passu , pro rata basis. However, New Preferred Stock does not participate in undistributed net losses. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments Future Firm Transportation and Gathering Agreements The Company has contractual commitments with midstream and pipeline companies 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 the cost of these commitments. Working interest owners and royalty interest owners, where appropriate, will be responsible for their proportionate share of these costs. Commitments related to future firm transportation and gathering agreements are not recorded as obligations in the accompanying consolidated balance sheets; however, costs associated with utilized future firm transportation and gathering agreements are reflected in the Company's estimates of proved reserves. A summary of these commitments at September 30, 2021 are set forth in the table below, excluding contracts recently rejected or in the process of being rejected as discussed in the Litigation and Regulatory Proceedings section below: (In thousands) Remaining 2021 $ 61,609 2022 224,537 2023 222,730 2024 215,865 2025 137,116 Thereafter 977,616 Total $ 1,839,473 Future Firm Sales Commitments The Company has entered into various firm sales contracts to deliver and sell natural gas. The Company expects to fulfill its delivery commitments primarily with production from proved developed reserves. The Company's operated production has generally been sufficient to satisfy its delivery commitments during the periods presented, and it expects its operated production will continue to be the primary means of fulfilling its future commitments. However, where the Company's operated production is not sufficient to satisfy its delivery commitments, it can and may use spot market purchases to satisfy the commitments. A summary of these volume commitments at September 30, 2021 are set forth in the table below: (MMBtu per day) Remaining 2021 16,000 2022 4,000 Contingencies The Company is involved in a number of litigation and regulatory proceedings including those described below. Many of these proceedings are in early stages, and many of them seek or may seek damages and penalties, the amount of which is indeterminate. The Company's total accrued liabilities in respect of litigation and regulatory proceedings is determined on a case-by-case basis and represents an estimate of probable losses after considering, among other factors, the progress of each case or proceeding, its experience and the experience of others in similar cases or proceedings, and the opinions and views of legal counsel. Significant judgment is required in making these estimates and their final liabilities may ultimately be materially different. In accordance with ASC Topic 450, Contingencies , an accrual is recorded for a material loss contingency when its occurrence is probable and damages are reasonably estimable based on the anticipated most likely outcome or the minimum amount within a range of possible outcomes. Litigation and Regulatory Proceedings Commencement of the Chapter 11 Cases automatically stayed the proceedings and actions against us that are described below, in addition to actions seeking to collect pre-petition indebtedness or to exercise control over the property of the Company's bankruptcy estates. The Plan in the Chapter 11 Cases, which became effective on May 17, 2021, provided for the treatment of claims against the Company's bankruptcy estates, including pre-petition liabilities that had not been satisfied or addressed during the Chapter 11 Cases. As part of its Chapter 11 Cases and restructuring efforts as discussed in Note 2 , the Company filed motions to reject certain firm transportation agreements between the Company and affiliates of TC Energy Corporation ("TC") and Rover Pipeline LLC ("Rover") or jointly as the “Pending Motions to Reject”. The Pending Motions to Reject were removed to the United States District Court for the Southern District of Texas. While the Pending Motions to Reject are litigated, the Company isn’t required to perform under these firm transportation agreements. During the third quarter of 2021, Gulfport finalized a settlement agreement with TC that was approved by the Bankruptcy Court on September 21, 2021. Pursuant to the settlement agreement, Gulfport and TC agreed that the firm transportation contracts between Gulfport and TC would be rejected without any further payment or obligation by Gulfport or TC, and TC assigned its damages claims from such rejection to Gulfport. In exchange, Gulfport agreed to make a payment of $43.8 million in cash to TC. The $43.8 million was paid to TC on October 7, 2021 and as of September 30, 2021 is presented in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheet. Gulfport expects to receive distributions for substantially all of the $43.8 million payment based on the assigned claims pursuant to Gulfport’s Chapter 11 plan of reorganization that became effective in May 2021. Any future distributions will be recognized once received by Gulfport. The Company believes that the remaining Pending Motion to Reject will be ultimately granted, and that the Company does not have any ongoing obligation pursuant to the contract; however, in the event that the Company is not permitted to reject the Rover firm transportation contract, it could be liable for demand charges, attorneys' fees and interest in excess of approximately $40 million. The Company, along with a number of other oil and gas companies, has been named as a defendant in two separate complaints, one filed by the State of Louisiana and the Parish of Cameron in the 38th Judicial District Court for the Parish of Cameron on February 9, 2016, and the other filed by the State of Louisiana and the District Attorney for the 15th Judicial District of the State of Louisiana in the 15th Judicial District Court for the Parish of Vermilion on July 29, 2016 (together, the "Complaints"). The Complaints allege that certain of the defendants’ operations violated the State and Local Coastal Resources Management Act of 1978, as amended, and the rules, regulations, orders and ordinances adopted thereunder (the "CZM Laws") by causing substantial damage to land and waterbodies located in the coastal zone of the relevant Parish. The plaintiffs seek damages and other appropriate relief under the CZM Laws, including the payment of costs necessary to clear, re-vegetate, detoxify and otherwise restore the affected coastal zone of the relevant Parish to its original condition, actual restoration of such coastal zone to its original condition, and the payment of reasonable attorney fees and legal expenses and interest. The United States District Court for the Western District of Louisiana issued orders remanding the cases to their respective state court, and the defendants have appealed the remand orders to the 5th Circuit Court of Appeals. On September 9, 2021, the State of Louisiana and Cameron Parish dismissed all claims against Gulfport without prejudice. In September 2019, a stockholder of Mammoth Energy filed a derivative action on behalf of Mammoth Energy against members of Mammoth Energy’s Board of Directors, including a director designated by the Company, and its significant stockholders, including the Company, in the United States District Court for the Western District of Oklahoma. The complaint alleges, among other things, that the members of Mammoth Energy’s Board of Directors breached their fiduciary duties and violated the Securities Exchange Act of 1934, as amended, in connection with Mammoth Energy’s activities in Puerto Rico following Hurricane Maria. The complaint seeks unspecified damages, the payment of reasonable attorney fees and legal expenses and interest and to force Mammoth Energy and its Board of Directors to make specified corporate governance reforms. On October 4, 2021, plaintiffs filed a stipulation and agreement of settlement to dismiss all claims against Gulfport that is pending approval by the trial court. In March 2020, Robert F. Woodley, individually and on behalf of all others similarly situated, filed a federal securities class action against the Company, David M. Wood, Keri Crowell and Quentin R. Hicks in the United States District Court for the Southern District of New York. The complaint alleges that the Company made materially false and misleading statements regarding the Company’s business and operations in violation of the federal securities laws and seeks unspecified damages, the payment of reasonable attorneys’ fees, expert fees and other costs, pre-judgment and post-judgment interest, and such other and further relief that may be deemed just and proper. On October 16, 2021, Gulfport filed a motion to dismiss that is currently pending before the trial court. In December 2019, the Company filed a lawsuit against Stingray Pressure Pumping LLC, a subsidiary of Mammoth Energy (“Stingray”), for breach of contract and to terminate the Master Services Agreement for pressure pumping services, effective as of October 1, 2014, as amended (the “Master Services Agreement”), between Stingray and the Company. In March 2020, Stingray filed a counterclaim against the Company in the Superior Court of the State of Delaware. The counterclaim alleges that the Company has breached the Master Services Agreement. The counterclaim seeks actual damages, and Stingray filed claims in the Chapter 11 proceedings exceeding $80 million related to breach of contract damages, attorneys' fees and interest. In September 2021, Gulfport reached an agreement in principle with Stingray that fully resolves the litigation between the parties. Pursuant to the settlement, Stingray and Gulfport have agreed to drop all of the claims brought against each other in Delaware Court and Bankruptcy Court. On September 22, 2021, the parties announced to the bankruptcy court that all Stingray claims would be withdrawn. The parties are finalizing settlement documents. In August 2020, Muskie filed an action against the Company in the Superior Court of the State of Delaware for breach of contract. The complaint alleges that the Company breached its obligation to purchase a certain amount of proppant sand each month or make designated shortfall payments under the Sand Supply Agreement, effective October 1, 2014, as amended (the “Sand Supply Agreement”), between Muskie and the Company, and seeks payment of unpaid shortfall payments, and Muskie filed a claim in the Chapter 11 proceedings for $3.4 million. On September 22, 2021, the parties announced to the bankruptcy court that an agreed claim for $3.1 million would resolve the matter. The parties are finalizing settlement documents. In April 2020, Bryon Lefort, individually and on behalf of similarly situated individuals, filed an action against the Company in the United States District Court for the Southern District of Ohio Eastern Division. The complaint alleges that the Company violated the Fair Labor Standards Act (“FLSA”), the Ohio Wage Act and the Ohio Prompt Pay Act by classifying the plaintiffs as independent contractors and paying them a daily rate with no overtime compensation for hours worked in excess of 40 hours per week. The complaint seeks to recover unpaid regular and overtime wages, liquidated damages in an amount equal to six percent of all unpaid overtime compensation, the payment of reasonable attorney fees and legal expenses and pre-judgment and post-judgment interest, and such other damages that may be owed to the workers, and claims were filed in the Chapter 11 proceedings totaling $5.8 million. On October 1, 2021, the bankruptcy court approved the parties' settlement resolving all claims for a bankruptcy claim of approximately $0.7 million. Final dismissal is currently pending before the United States District Court for the Southern District of Ohio Eastern Division. The Company, along with other oil and gas companies, have been named as a defendant in J&R Passmore, LLC, individually and on behalf of all others similarly situated, in the United States District Court for the Southern District of Ohio on December 6, 2018. Plaintiffs assert their respective leases are limited to the Marcellus and Utica Shale geological formations and allege that Defendants have willfully trespassed and illegally produced oil, natural gas, and other hydrocarbon products beyond these respective formations. Plaintiffs seek the full value of any production from below the Marcellus and Utica shale formations, unspecified damages from the diminution of value to their mineral estate, unspecified punitive damages, and the payment of reasonable attorney fees, legal expenses, and interest. Business Operations The Company is involved in various lawsuits and disputes incidental to its business operations, including commercial disputes, personal injury claims, royalty claims, property damage claims and contract actions. Environmental Contingencies The nature of the oil and gas business carries with it certain environmental risks for Gulfport and its subsidiaries. Gulfport and its subsidiaries have implemented various policies, programs, procedures, training and audits to reduce and mitigate environmental risks. The Company conducts periodic reviews, on a company-wide basis, to assess changes in their environmental risk profile. Environmental reserves are established for environmental liabilities for which economic losses are probable and reasonably estimable. The Company manages its exposure to environmental liabilities in acquisitions by using an evaluation process that seeks to identify pre-existing contamination or compliance concerns and address the potential liability. Depending on the extent of an identified environmental concern, they may, among other things, exclude a property from the transaction, require the seller to remediate the property to their satisfaction in an acquisition or agree to assume liability for the remediation of the property. Other Matters Based on management’s current assessment, they are of the opinion that no pending or threatened lawsuit or dispute relating to its business operations is likely to have a material adverse effect on their future consolidated financial position, results of operations or cash flows. The final resolution of such matters could exceed amounts accrued, however, and actual results could differ materially from management’s estimates. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Natural Gas, Oil and Natural Gas Liquids Derivative Instruments Gulfport has established policies and procedures for managing commodity price volatility through the use of derivative instruments. The Company seeks to mitigate risks related to unfavorable changes in natural gas, oil and NGL prices, which are subject to significant and often volatile fluctuation, by entering into over-the-counter fixed price swaps, basis swaps, collars and various types of option contracts. The derivative instruments allow the Company to mitigate the impact of declines in future commodity prices by effectively locking in a floor price for a certain level of the Company’s production. However, these instruments also limit future gains from favorable price movements. The volume of commodity derivative instruments utilized by the Company may vary from year to year based on forecasted production. Fixed price swaps are settled monthly based on differences between the fixed price specified in the contract and the referenced settlement price. When the referenced settlement price is less than the price specified in the contract, the Company receives an amount from the counterparty based on the price difference multiplied by the volume. Similarly, when the referenced settlement price exceeds the price specified in the contract, the Company pays the counterparty an amount based on the price difference multiplied by the volume. The prices contained in these fixed price swaps are based on the NYMEX Henry Hub for natural gas, the NYMEX WTI for oil and Mont Belvieu for propane. Below is a summary of the Company’s open fixed price swap positions as of September 30, 2021. Location Daily Volume Weighted Natural Gas (MMBtu/d) ($/MMBtu) Remaining 2021 NYMEX Henry Hub 198,000 $ 2.85 2022 NYMEX Henry Hub 140,740 $ 2.88 2023 NYMEX Henry Hub 34,932 $ 3.24 Oil (Bbl/d) ($/Bbl) Remaining 2021 NYMEX WTI 3,000 $ 57.67 2022 NYMEX WTI 2,104 $ 66.23 NGL (Bbl/d) ($/Bbl) Remaining 2021 Mont Belvieu C3 3,100 $ 27.80 2022 Mont Belvieu C3 3,378 $ 35.09 In the second half of 2019, the Company sold 2022 and 2023 natural gas call options in exchange for a premium and used the associated premiums to enhance the fixed price on certain natural gas swaps that settled in 2020. Each call option has an established ceiling price of $2.90/MMBtu. If monthly NYMEX natural gas prices settle above the $2.90/MMBtu ceiling price, the Company is required to pay the option counterparty an amount equal to the difference between the referenced NYMEX natural gas settlement price and $2.90/MMBtu multiplied by the hedged contract volumes. Below is a summary of the Company's sold natural gas call option positions as of September 30, 2021. Location Daily Volume Weighted Average Price Natural Gas (MMBtu/d) ($/MMBtu) 2022 NYMEX Henry Hub 152,675 $ 2.90 2023 NYMEX Henry Hub 627,675 $ 2.90 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 September 30, 2021. Location Daily Volume Weighted Average Floor Price Weighted Average Ceiling Price Natural Gas (MMBtu/d) ($/MMBtu) ($/MMBtu) Remaining 2021 NYMEX Henry Hub 610,000 $ 2.59 $ 3.02 2022 NYMEX Henry Hub 406,747 $ 2.58 $ 2.91 Oil (Bbl/d) ($/Bbl) ($/Bbl) 2022 NYMEX WTI 1,500 $ 55.00 $ 60.00 In addition, the Company entered into natural gas basis swap hedge contracts. If the applicable monthly price indices are outside of the ranges set forth in the various natural gas basis swap contracts, the Company will cash-settle the difference with the hedge counterparty. Below is a summary of the Company's natural gas basis swap positions as of September 30, 2021. Gulfport Pays Gulfport Receives Daily Volume Weighted Average Fixed Spread Natural Gas (MMBtu/d) ($/MMBtu) Remaining 2021 Rex Zone 3 NYMEX Plus Fixed Spread 83,152 $ (0.12) 2022 Rex Zone 3 NYMEX Plus Fixed Spread 24,658 $ (0.10) Balance Sheet Presentation The Company reports the fair value of derivative instruments on the consolidated balance sheets as derivative instruments under current assets, noncurrent assets, current liabilities and noncurrent liabilities on a gross basis. The Company determines the current and noncurrent classification based on the timing of expected future cash flows of individual trades. The following table presents the fair value of the Company’s derivative instruments on a gross basis at September 30, 2021 and December 31, 2020: Successor Predecessor September 30, 2021 December 31, 2020 Short-term derivative asset $ 2,142 $ 27,146 Long-term derivative asset 961 322 Short-term derivative liability (560,722) (11,641) Long-term derivative liability (272,935) (36,604) Total commodity derivative position $ (830,554) $ (20,777) Gains and Losses The following tables present the gain and loss recognized in net (loss) gain on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations: Net loss on derivative instruments Successor Predecessor Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Natural gas derivatives - fair value losses $ (517,799) $ (84,390) Natural gas derivatives - settlement (losses) gains (82,566) 31,742 Total losses on natural gas derivatives (600,365) (52,648) Oil and condensate derivatives - fair value (losses) gains (1,590) 723 Oil and condensate derivatives - settlement losses (4,336) (1,505) Total losses on oil and condensate derivatives (5,926) (782) NGL derivatives - fair value losses (10,201) (288) NGL derivatives - settlement losses (5,984) (105) Total losses on NGL derivatives (16,185) (393) Total losses on natural gas, oil and NGL derivatives $ (622,476) $ (53,823) Net (loss) gain on derivative instruments Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Natural gas derivatives - fair value losses $ (638,063) $ (123,080) $ (147,661) Natural gas derivatives - settlement (losses) gains (89,255) (3,362) 176,555 Total (losses) gains on natural gas derivatives (727,318) (126,442) 28,894 Oil and condensate derivatives - fair value losses (6,947) (6,126) (4,289) Oil and condensate derivatives - settlement (losses) gains (4,336) — 48,444 Total (losses) gains on oil and condensate derivatives (11,283) (6,126) 44,155 NGL derivatives - fair value losses (17,549) (4,671) (620) NGL derivatives - settlement (losses) gains (5,984) — 366 Total losses on NGL derivatives (23,533) (4,671) (254) Contingent consideration arrangement - fair value losses — — (1,381) Total (losses) gains on natural gas, oil and NGL derivatives $ (762,134) $ (137,239) $ 71,414 Offsetting of Derivative Assets and Liabilities As noted above, the Company records the fair value of derivative instruments on a gross basis. The following table presents 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. Successor As of September 30, 2021 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount Derivative assets $ 3,103 $ (3,103) $ — Derivative liabilities $ (833,657) $ 3,103 $ (830,554) Predecessor As of December 31, 2020 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount Derivative assets $ 27,468 $ (25,730) $ 1,738 Derivative liabilities $ (48,245) $ 25,730 $ (22,515) Concentration of Credit Risk By using derivative instruments that are not traded on an exchange, the Company is exposed to the credit risk of its counterparties. Credit risk is the risk of loss from counterparties not performing under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty is expected to owe the Company, which creates credit risk. To minimize the credit risk in derivative instruments, it is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial institutions deemed by management as competent and competitive market makers. The Company’s derivative contracts are spread between multiple counterparties to lessen its exposure to any individual counterparty. Additionally, the Company uses master netting agreements to minimize credit risk exposure. The creditworthiness of the Company’s counterparties is subject to periodic review. None of the Company’s derivative instrument contracts contain credit-risk related contingent features. Other than as provided by the Company’s revolving credit facility, the Company is not required to provide credit support or collateral to any of its counterparties under its derivative instruments, nor are the counterparties required to provide credit support to the Company. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company measures and discloses certain financial and non-financial assets and liabilities on the balance sheet at fair value in accordance with the provisions of ASC Topic 820, Fair Value Measurements and Disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. Market or observable inputs are the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. Fair value measurements are classified and disclosed in one of the following categories: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Significant inputs to the valuation model are unobservable. Valuation techniques that maximize the use of observable inputs are favored. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy. Reclassifications of fair value between Level 1, Level 2 and Level 3 of the fair value hierarchy, if applicable, are made at the end of each quarter. Financial assets and liabilities The following tables summarize the Company’s financial and non-financial assets and liabilities by valuation level as of September 30, 2021 and December 31, 2020: Successor September 30, 2021 Level 1 Level 2 Level 3 Assets: Derivative Instruments $ — $ 3,103 $ — Contingent consideration arrangement — — 5,300 Total assets $ — $ 3,103 $ 5,300 Liabilities: Derivative Instruments $ — $ 833,657 $ — Predecessor December 31, 2020 Level 1 Level 2 Level 3 Assets: Derivative Instruments $ — $ 27,468 $ — Contingent consideration arrangement — — 6,200 Total assets $ — $ 27,468 $ 6,200 Liabilities: Derivative Instruments $ — $ 48,245 $ — The Company estimates the fair value of all derivative instruments using industry-standard models that consider various assumptions, including current market and contractual prices for the underlying instruments, implied volatility, time value, nonperformance risk, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument and can be supported by observable data. As discussed in Note 3 , the Company adjusted the fair value of its derivative instruments as a fresh start adjustment at the Emergence Date as a result of changes in the Company's credit adjustment to reflect its new credit standing at emergence. The Company's SCOOP water infrastructure sale, which closed in the first quarter of 2020, included a contingent consideration arrangement. As of September 30, 2021, the fair value of the contingent consideration was $5.3 million, of which $0.8 million is included in prepaid expenses and other assets and $4.5 million is included in other assets in the accompanying consolidated balance sheets. The fair value of the contingent consideration arrangement is calculated using discounted cash flow techniques and is based on internal estimates of the Company's future development program and water production levels. Given the unobservable nature of the inputs, the fair value measurement of the contingent consideration arrangement is deemed to use Level 3 inputs. The Company has elected the fair value option for this contingent consideration arrangement and, therefore, records changes in fair value in earnings. The Company recognized a $1.2 million loss for the Current Successor Quarter, a $0.1 million loss for the Current Successor YTD Period, and a nominal gain for the Current Predecessor YTD Period, respectively, which is included in other expense (income) in the accompanying consolidated statements of operations. The Company recognized losses of $0.2 million and $3.1 million on changes in fair value of the contingent consideration during the Prior Predecessor Quarter and Prior Predecessor YTD Period, respectively. Settlements under the contingent consideration arrangement totaled $0.6 million during the Current Successor YTD Period, $0.2 million during the Current Predecessor YTD Period, and $0.3 million during the Prior Predecessor YTD Period, respectively. Non-financial assets and liabilities The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs. See Note 4 for further discussion of the Company’s asset retirement obligations. As discussed in Note 4 , the Company recorded an impairment during the Current Predecessor YTD Period on its corporate headquarters. The estimated fair value of the building was primarily based on third party estimates and, therefore, is deemed to use Level 3 inputs. Fair value of other financial instruments The carrying amounts on the accompanying consolidated balance sheet for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and current debt are carried at cost, which approximates market value due to their short-term nature. Long-term debt related to the Company's building loan is carried at cost, which approximates market value based on the borrowing rates currently available to the Company with similar terms and maturities. Chapter 11 Emergence and Fresh Start Accounting On the Emergence Date, the Company adopted fresh start accounting, which resulted in the Company becoming a new entity for financial reporting purposes. Upon the adoption of fresh start accounting, the Company’s assets and liabilities were recorded at their fair values as of May 17, 2021. The inputs utilized in the valuation of the Company’s most significant asset, its oil and natural gas properties and related assets, included mostly unobservable inputs which fall within Level 3 of the fair value hierarchy. Such inputs included estimates of future oil and gas production from the Company’s reserve reports, commodity prices based on forward strip price curves (adjusted for basis differentials) as of May 17, 2021, operating and development costs, expected future development plans for the properties and discount rates based on a weighted-average cost of capital computation. The Company also recorded its asset retirement obligations at fair value as a result of fresh start accounting. The inputs utilized in valuing the asset retirement obligations were mostly Level 3 unobservable inputs, including estimated economic lives of oil and natural gas wells as of the Emergence Date, anticipated future plugging and abandonment costs and an appropriate credit-adjusted risk free rate to discount such costs. Refer to Note 3 for a detailed discussion of the fair value approaches used by the Company. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition The Company’s revenues are primarily derived from the sale of natural gas, oil and condensate and NGL. Sales of natural gas, oil and condensate and NGL are recognized in the period that the performance obligations are satisfied. The Company generally considers the delivery of each unit (MMBtu or Bbl) to be separately identifiable and represents a distinct performance obligation that is satisfied at the time control of the product is transferred to the customer. Revenue is measured based on consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. These contracts typically include variable consideration that is based on pricing tied to market indices and volumes delivered in the current month. As such, this market pricing may be constrained (i.e., not estimable) at the inception of the contract but will be recognized based on the applicable market pricing, which will be known upon transfer of the goods to the customer. The payment date is usually within 30 days of the end of the calendar month in which the commodity is delivered. Gathering, processing and compression fees attributable to gas processing, as well as any transportation fees, including firm transportation fees, incurred to deliver the product to the purchaser, are presented as transportation, gathering, processing and compression expense in the accompanying consolidated statements of operations. Transaction Price Allocated to Remaining Performance Obligations A significant number of the Company's product sales are short-term in nature generally through evergreen contracts with contract terms of one year or less. These contracts typically automatically renew under the same provisions. For those contracts, the Company has utilized the practical expedient allowed in the new revenue accounting standard that exempts the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For product sales that have a contract term greater than one year, the Company has utilized the practical expedient that exempts the Company from disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these sales contracts, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. Currently, the Company's product sales that have a contractual term greater than one year have no long-term fixed consideration. Contract Balances Receivables from contracts with customers are recorded when the right to consideration becomes unconditional, generally when control of the product has been transferred to the customer. Receivables from contracts with customers were $185.9 million and $119.9 million as of September 30, 2021 and December 31, 2020, respectively, and are reported in accounts receivable - oil and natural gas sales on the consolidated balance sheets. The Company currently has no assets or liabilities related to its revenue contracts, including no upfront or rights to deficiency payments. Prior-Period Performance Obligations The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain sales may be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production that was delivered to the purchaser and the price that will be received for the sale of the product. The differences between the estimates and the actual amounts for product sales is recorded in the month that payment is received from the purchaser. For the Current Predecessor YTD Period and the Current Successor YTD Period, revenue recognized in the reporting periods related to performance obligations satisfied in prior reporting periods was not material. |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY INVESTMENTS | EQUITY INVESTMENTS Investments accounted for by the equity method during the periods presented consisted of the following: Carrying value Loss from equity method investments Predecessor Predecessor December 31, 2020 Three Months Ended September 30, 2020 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Investment in Grizzly Oil Sands ULC $ 24,816 $ (153) $ (342) $ (341) Investment in Mammoth Energy — — — (10,646) $ 24,816 $ (153) $ (342) $ (10,987) Grizzly Oil Sands ULC The Company, through its wholly owned subsidiary Grizzly Holdings, owns an approximate 24.5% interest in Grizzly, a Canadian unlimited liability company. As of September 30, 2021, Grizzly had approximately 830,000 acres under lease in the Athabasca, Peace River and Cold Lake oil sands regions of Alberta, Canada. The Company has not paid any cash calls since its decision to cease funding further capital calls in 2019. Grizzly’s functional currency is the Canadian dollar. For the Prior Predecessor Quarter and the Prior Predecessor YTD Period, the Company's investment in Grizzly increased by $3.7 million and decreased by $4.1 million, respectively, as a result of foreign currency translation gains and losses. Effective as of the Emergence Date, the Company evaluated its investment in Grizzly and determined that the Company no longer has the ability to exercise significant influence over operating and financial policies of Grizzly. As such, the equity method of accounting for its investment was no longer applicable. As a result, the Company will use its previous carrying value of zero (as discussed below) as its initial basis and will subsequently measure at fair value while recording any changes in fair value in earnings. As discussed in Note 3 , the Company reduced the carrying value of its investment in Grizzly to zero upon the Emergence Date. The reduction in valuation was based upon the Company's new management's assessment of the investment and its priority for future funding in its portfolio. In particular, Grizzly’s operations remained suspended, even with improvements in the pricing environment since its initial suspension in 2015. Additionally, the Company does not anticipate funding future capital calls, which will lead to further dilution of its equity ownership interest. As discussed in Note 2 |
RESTRUCTURING AND LIABILITY MAN
RESTRUCTURING AND LIABILITY MANAGEMENT | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND LIABILITY MANAGEMENT | RESTRUCTURING AND LIABILITY MANAGEMENT In the third quarter of 2021, the Company announced and completed a workforce reduction representing approximately 3% of its headcount. Charges related to the reduction in workforce primarily consisted of one-time employee-related termination benefits. Additionally, the Company incurred charges related to financial and legal advisors engaged to assist with the evaluation of a range of liability management alternatives during the Prior Predecessor Quarter and Prior Predecessor YTD Period. The following table summarizes the restructuring and liability management charges incurred: Successor Predecessor Three months ended September 30, 2021 Three months ended September 30, 2020 Reduction in workforce $ 2,858 $ 1,460 Liability management — 7,524 Total restructuring and liability management $ 2,858 $ 8,984 Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine months ended September 30, 2020 Reduction in workforce $ 2,858 $ — $ 1,460 Liability management — — 8,141 Total restructuring and liability management $ 2,858 $ — $ 9,601 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Nature of Leases The Company has operating leases on certain equipment and field offices with remaining lease durations in excess of one year. The Company recognizes a right-of-use asset and lease liability on the balance sheet for all leases with lease terms of greater than one year. Short-term leases that have an initial term of one year or less are not capitalized. The Company has entered into contracts with varying terms for drilling rigs. The Comp any has concluded its drilling rig contracts are operating leases as the assets are identifiable and the Company has the right to control the identified assets. However, at September 30, 2021, the Company did not have any active long-term drilling rig contracts in place. The Company rents office space for its corporate headquarters and field locations and certain other equipment from third parties, which expire at various dates through 2022. These agreements are typically structured with non-cancelable terms of one Discount Rate As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company's incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Maturities of operating lease liabilities as of September 30, 2021 were as follows: (In thousands) Remaining 2021 $ 10 2022 25 Total lease payments $ 35 Less: Imputed interest (1) Total $ 34 The table below summarizes lease cost for the periods presented: Successor Predecessor Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Operating lease cost $ 10 $ 1,692 Variable lease cost — 245 Short-term lease cost 2,873 2,259 Total lease cost (1) $ 2,883 $ 4,196 Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Operating lease cost $ 18 $ 41 $ 7,970 Variable lease cost — — 705 Short-term lease cost 5,033 4,496 7,698 Total lease cost (1) $ 5,051 $ 4,537 $ 16,373 (1) The majority of the Company's total lease cost was capitalized to the full cost pool, and the remainder was included in either lease operating expenses or general and administrative expenses in the accompanying consolidated statements of operations. Supplemental cash flow information related to leases was as follows: Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 46 $ 48 $ 109 Investing cash flow from operating leases — — 9,786 Investing cash flow from operating leases—related party — — 6,800 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES As discussed in Note 2 , elements of the Plan provided that the Company’s indebtedness related to Predecessor Senior Notes and certain general unsecured claims were exchanged for New Common Stock in settlement of those claims. Absent an exception, a debtor recognizes CODI upon discharge of its outstanding indebtedness for an amount of consideration that is less than its adjusted issue price. The IRC provides that a debtor in a Chapter 11 bankruptcy case may exclude CODI from taxable income, but must reduce certain of its tax attributes by the amount of any CODI realized as a result of the consummation of a plan of reorganization. The amount of CODI realized by a taxpayer is determined based on the fair market value of the consideration received by the creditors in settlement of outstanding indebtedness. As a result of the market value of equity upon emergence from Chapter 11 bankruptcy proceedings, the estimated amount of CODI is approximately $708.8 million, which will reduce the value of the Company’s net operating losses. The actual reduction in tax attributes does not occur until the first day of the Company’s tax year subsequent to the date of emergence, or January 1, 2022. The reduction of net operating losses is expected to be fully offset by a corresponding decrease in valuation allowance. As of September 30, 2021, the Company had an estimated federal net operating loss carryforward of approximately $1.2 billion after giving effect to the estimated reduction in tax attributes as discussed above. Emergence from Chapter 11 bankruptcy proceedings resulted in a change in ownership for purposes of IRC Section 382. The Company currently expects to apply rules under IRC Section 382(l)(5) that would allow the Company to mitigate the limitations imposed under the regulations with respect to the Company’s remaining tax attributes. The Company’s deferred tax assets and liabilities, prior to the valuation allowance, have been computed on such basis. Taxpayers who qualify for this provision may, at their option, elect not to apply the election. If the provision does not apply, the Company’s ability to realize the value of its tax attributes would be subject to limitation and the amount of deferred tax assets and liabilities, prior to the valuation allowance, may differ. Additionally, under IRC Section 382(l)(5), an ownership change subsequent to the Company’s emergence could severely limit or effectively eliminate its ability to realize the value of its tax attributes. At each reporting period, the Company weighs all available positive and negative evidence to determine whether its deferred tax assets are more likely than not to be realized. A valuation allowance for deferred tax assets, including net operating losses, is recognized when it is more likely than not that some or all of the benefit from the deferred tax assets will not be realized. To assess that likelihood, the Company uses estimates and judgment regarding future taxable income and considers the tax laws in the jurisdiction where such taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include current financial position, results of operations, both actual and forecasted, the reversal of deferred tax liabilities and tax planning strategies as well as the current and forecasted business economics of the oil and gas industry. Based upon the Company’s analysis, the Company determined a full valuation allowance was necessary against its net deferred tax assets as of both May 17, 2021 and September 30, 2021. The Company will continue to evaluate whether the valuation allowance is needed in future reporting periods. The valuation allowance will remain until it is determined that the net deferred tax assets are more likely than not to be realized. Future events or new evidence which may lead us to conclude that it is more likely than not that its net deferred tax assets will be realized include, but are not limited to, cumulative historical pre-tax earnings, improvements in oil prices, and taxable events that could result from one or more transactions. The valuation allowance does not prevent future utilization of the tax attributes if the Company recognizes taxable income. As long as the Company concludes that the valuation allowance against its net deferred tax assets is necessary, the Company likely will not have any additional deferred income tax expense or benefit. For the Current Predecessor YTD Period, the Company has an effective tax rate of (3.4)% and an income tax benefit of $8.0 million. The tax benefit is entirely attributable to an Oklahoma refund claim associated with an examination relating to historical tax returns. The effective tax rate differs from the statutory tax rate due to the Company’s valuation allowance position and the permanent adjustments relating to the Chapter 11 Emergence. For the Current Successor YTD Period, the Company has an effective tax rate of (0.01)% and tax expense of $0.7 million. The tax expense is entirely attributable to the Oklahoma refund claim that was filed during the third quarter of 2021, resulting in an adjustment to the benefit recorded during the Current Predecessor YTD Period. We did not record any additional income tax expense for the Current Successor YTD Period as a result of maintaining a full valuation allowance against our net deferred tax asset. For the Prior Predecessor Quarter, the Company had an effective tax rate of 0% and tax expense of zero due to the Company’s valuation allowance position. For the Prior Predecessor YTD Period, the Company had an effective tax rate of (0.5)% and tax expense of $7.3 million as a result of the sale of assets and a corresponding adjustment to the valuation allowance on remaining state net operating loss carryforwards. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS New Credit Facility On October 14, 2021, the Company entered into the Third Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and various lender parties ("New Credit Facility"). The New Credit Facility provides for an aggregate maximum principal amount of up to $1.5 billion, an initial borrowing base of $850.0 million and an initial aggregate elected commitment amount of $700.0 million. The credit agreement also provides for a $175.0 million sublimit of the aggregate commitments that is available for the issuance of letters of credit. The New Credit Facility amended and refinanced the Exit Credit Facility. The borrowing base will be redetermined semiannually on or around May 1 and November 1 of each year, with the first scheduled redetermination to be on or around May 1, 2022. The New Credit Facility matures in October 2025. The New Credit Facility bears interest at a rate equal to, at the Company’s election, either (a) LIBOR plus an applicable margin that varies from 2.75% to 3.75% per annum or (b) a base rate plus an applicable margin that varies from 1.75% to 2.75% per annum, based on borrowing base utilization. The New Credit Facility will mature on October 14, 2025. The Company is required to pay a commitment fee of 0.50% per annum on the average daily unused portion of the current aggregate commitments under the New Credit Facility. The Company is also required to pay customary letter of credit and fronting fees. The credit agreement requires the Company to maintain as of the last day of each fiscal quarter (i) a net funded leverage ratio of less than or equal to 3.25 to 1.00, and (ii) a current ratio of greater than or equal to 1.00 to 1.00. The obligations under the New Credit Facility, certain swap obligations and certain cash management obligations, are guaranteed by the Company and the wholly-owned domestic material subsidiaries of the Borrower (collectively, the “Guarantors” and, together with the Borrower, the “Loan Parties”) and secured by substantially all of the Loan Parties’ assets (subject to customary exceptions). The credit agreement also contains customary affirmative and negative covenants, including, among other things, as to compliance with laws (including environmental laws and anti-corruption laws), delivery of quarterly and annual financial statements and borrowing base certificates, conduct of business, maintenance of property, maintenance of insurance, entry into certain derivatives contracts, restrictions on the incurrence of liens, indebtedness, asset dispositions, restricted payments, and other customary covenants. These covenants are subject to a number of limitations and exceptions. Share Repurchase Program On November 1, 2021, the Company's Board of Directors approved a stock repurchase program to acquire up to $100.0 million of its New Common Stock ("Repurchase Program"). Purchases under the Repurchase Program may be made from time to time in open market or privately negotiated transactions, and will be subject to available liquidity, market conditions, credit agreement restrictions, applicable legal requirements, contractual obligations and other factors. The Repurchase Program does not require the Company to acquire any specific number of shares of New Common Stock. The Company intends to purchase shares under the Repurchase Program opportunistically with available funds while maintaining sufficient liquidity to fund its capital development program. The Repurchase Program is authorized to extend through December 31, 2022 and may be suspended from time to time, modified, extended or discontinued by the board of directors at any time. Any shares of New Common Stock repurchased are expected to be cancelled. Natural Gas and Oil Derivative Instruments Subsequent to September 30, 2021 and as of October 28, 2021, the Company entered into the following natural gas derivative contracts: Type of Derivative Instrument Index Daily Volume Weighted Natural Gas (MMBtu/d) ($/MMBtu) November 2021 - December 2021 Basis Swap ONG Minus Inside FERC 20,000 $0.50 January 2022 - March 2022 Basis Swap ONG Minus Inside FERC 20,000 $0.50 January 2023 - December 2023 Fixed price swap NYMEX Henry Hub 30,000 $3.58 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Gulfport were prepared in accordance with GAAP and the rules and regulations of the SEC. This Quarterly Report on Form 10-Q (this “Form 10-Q”) relates to the financial position and periods as of and for the three months ended September 30, 2021 ("Current Successor Quarter"), May 18, 2021 through September 30, 2021 (“Current Successor YTD Period”), January 1, 2021 through May 17, 2021 (“Current Predecessor YTD Period”), the three months ended September 30, 2020 (“Prior Predecessor Quarter”) and the nine months ended September 30, 2020 ("Prior Predecessor YTD Period"). The Company's annual report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”) should be read in conjunction with this Form 10-Q. Except as disclosed herein, and with the exception of information in this report related to our emergence from Chapter 11 and the application of fresh start accounting, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the 2020 Form 10-K. The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of our condensed consolidated financial statements and accompanying notes and include the accounts of our wholly-owned subsidiaries. Intercompany accounts and balances have been eliminated. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. |
Reclassifications | Certain reclassifications have been made to prior period financial statements and related disclosures to conform to current period presentation. These reclassifications have no impact on previous reported total assets, total liabilities, net loss, total stockholders' deficit or total operating cash flows. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This new standard simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments. It eliminates the treasury stock method for convertible instruments and requires application of the “if-converted” method for certain agreements. In addition, the standard eliminates the beneficial conversion and cash conversion accounting models that require separate accounting for embedded conversion features and the recognition of a debt discount and related amortization to interest expense of those embedded features. The Company elected to early adopt this standard effective on the Emergence Date. The Company adopted the new standard using the modified retrospective approach transition method. No cumulative-effect adjustment to retained earnings was required upon adoption of the new standard. The consolidated financial statements for the Successor Period are presented under the new standard, while the predecessor periods and comparative periods are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consisted of the following at September 30, 2021 and December 31, 2020: Successor Predecessor September 30, 2021 December 31, 2020 Accounts payable and other accrued liabilities $ 159,080 $ 120,275 Revenue payable and suspense 155,454 124,628 Accrued contract rejection damages and shares held in reserve 121,638 — Total accounts payable and accrued liabilities $ 436,172 $ 244,903 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow and Non-Cash Information Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Supplemental disclosure of cash flow information: Cash paid for reorganization items, net $ 42,202 $ 87,199 $ — Interest payments 6,465 7,272 73,979 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable - oil and natural gas sales (5,230) (60,832) 28,767 (Increase) decrease in accounts receivable - joint interest and other 5,536 (3,005) 32,827 Increase (decrease) in accounts payable and accrued liabilities (48,903) 79,193 (40,552) (Increase) decrease in prepaid expenses 7,231 135,471 (45,620) (Increase) decrease in other assets 106 3,067 (2,721) Total changes in operating assets and liabilities $ (41,260) $ 153,894 $ (27,299) Supplemental disclosure of non-cash transactions: Capitalized stock-based compensation $ 484 $ 930 $ 2,189 Asset retirement obligation capitalized 55 546 2,343 Asset retirement obligation removed due to divestiture — — (2,033) Interest capitalized 117 — 907 Fair value of contingent consideration asset on date of divestiture — — 23,090 Release of New Common Stock Held in Reserve 23,893 — — Foreign currency translation gain (loss) on equity method investments — 2,570 (4,497) |
FRESH START ACCOUNTING (Tables)
FRESH START ACCOUNTING (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Reorganizations [Abstract] | |
Reconciliation of Enterprise Value and Reorganization Value | The following table reconciles the enterprise value to the implied fair value of the Successor's equity as of the Emergence Date: Enterprise Value $ 1,600,000 Plus: Cash and cash equivalents (1) 1,526 Less: Fair value of debt (852,751) Successor equity value (2) $ 748,775 (1) Restricted cash is not included in the above table. (2) Inclusive of $55 million of mezzanine equity. The following table reconciles the enterprise value to the reorganization value as of the Emergence Date: Enterprise Value $ 1,600,000 Plus: Cash and cash equivalents (1) 1,526 Plus: Current and other liabilities 686,489 Plus: Asset retirement obligations 19,084 Less: Common stock reserved for settlement of claims post Emergence Date (54,109) Reorganization value of Successor assets $ 2,252,990 (1) Restricted cash is not included in the above table. |
Fresh Start Adjustments | The explanatory notes following the table below provide further details on the adjustments, including the assumptions and methods used to determine fair value for its assets and liabilities. As of May 17, 2021 Predecessor Reorganization Adjustments Fresh Start Adjustments Successor (In thousands) Assets Current assets: Cash and cash equivalents $ 146,545 $ (145,019) (a) $ — $ 1,526 Restricted cash — 57,891 (b) — 57,891 Accounts receivable—oil and natural gas sales 180,711 — — 180,711 Accounts receivable—joint interest and other 15,431 — — 15,431 Prepaid expenses and other current assets 86,189 (60,894) (c) — 25,295 Short-term derivative instruments 3,324 — 141 (r) 3,465 Total current assets 432,200 (148,022) 141 284,319 Property and equipment: Oil and natural gas properties, full-cost method Proved oil and natural gas properties 9,558,121 — (7,860,713) (s) 1,697,408 Unproved properties 1,375,681 — (1,145,507) (s) 230,174 Other property and equipment 38,026 — (31,133) (t) 6,893 Total property and equipment 10,971,828 — (9,037,353) 1,934,475 Accumulated depletion, depreciation and amortization (8,870,723) — 8,870,723 (u) — Total property and equipment, net 2,101,105 — (166,630) 1,934,475 Other assets: Equity investments 27,044 — (27,044) (v) — Long-term derivative instruments 7,468 — 715 (w) 8,183 Operating lease assets 47 — — 47 Other assets 18,866 7,100 (d) — 25,966 Total other assets 53,425 7,100 (26,329) 34,196 Total assets $ 2,586,730 $ (140,922) $ (192,818) $ 2,252,990 Predecessor Reorganization Adjustments Fresh Start Adjustments Successor (In thousands) Liabilities and Stockholders’ Equity (Deficit) Current liabilities: Accounts payable and accrued liabilities $ 384,200 $ 122,599 (e) $ — $ 506,799 Short-term derivative instruments 96,116 — 2,784 (x) 98,900 Current portion of operating lease liabilities — 38 (f) — 38 Current maturities of long-term debt 280,251 (220,251) (g) — 60,000 Total current liabilities 760,567 (97,614) 2,784 665,737 Non-current liabilities: Long-term derivative instruments 69,331 — 11,411 (y) 80,742 Asset retirement obligation — 65,341 (h) (46,257) (z) 19,084 Non-current operating lease liabilities — 9 (i) — 9 Long-term debt, net of current maturities — 792,751 (j) — 792,751 Total non-current liabilities 69,331 858,101 (34,846) 892,586 Liabilities subject to compromise 2,224,449 (2,224,449) (k) — — Total liabilities $ 3,054,347 $ (1,463,962) $ (32,062) $ 1,558,323 Commitments and contingencies ( Note 9 ) Mezzanine Equity: New Preferred Stock $ — $ 55,000 (l) $ — $ 55,000 Stockholders’ equity (deficit): Predecessor common stock 1,609 (1,609) (m) — — New Common Stock — 2 (n) — 2 Additional paid-in capital 4,215,838 (3,522,064) (o) — 693,774 New Common Stock held in reserve — (54,109) (p) — (54,109) Accumulated other comprehensive loss (40,430) 40,430 (q) — — Retained earnings (accumulated deficit) (4,644,634) 4,805,390 (q) (160,756) (aa) — Total stockholders’ equity (deficit) $ (467,617) $ 1,268,040 $ (160,756) $ 639,667 Total liabilities, mezzanine equity and stockholders’ equity (deficit) $ 2,586,730 $ (140,922) $ (192,818) $ 2,252,990 Reorganization Adjustments (a) The table below reflects changes in cash and cash equivalents on the Emergence Date from implementation of the Plan: Release of escrow funds by counterparties as a result of the Plan $ 63,068 New Preferred Stock rights offering proceeds 50,000 Funds required to rollover the DIP Credit Facility and Pre-Petition Revolving Credit Facility into the Exit Facility (175,000) Payment of accrued Pre-Petition Revolving Credit Facility and DIP Credit Facility interest (1,022) Payment of issuance costs related to the Exit Credit Facility (10,250) Funding of the Professional Fee Escrow (43,891) Payment of professional fees at Emergence Date (7,964) Transfer to restricted cash for the Unsecured Claims Distribution Trust (1,000) Transfer to restricted cash for the Convenience Claims Cash Pool (3,000) Transfer to restricted cash for the Parent Cash Pool (10,000) Payment of severance costs at Emergence Date (5,960) Net change in cash and cash equivalents $ (145,019) (b) Changes in restricted cash reflect the net effect of transfers from cash and cash equivalents for the Professional Fee Escrow and various claims class cash pools. (c) Changes in prepaid expenses and other current assets include the following: Release of escrow funds as a result of the Plan $ (63,068) Recognition of counterparty credits due to settlements effectuated at Emergence 4,247 Prepaid compensation earned at Emergence (2,073) Net change in prepaid expenses and other current assets $ (60,894) (d) Changes in other assets were due to capitalization of debt issuance costs related to the Exit Credit Facility. (e) Changes in accounts payable and accrued liabilities included the following: Payment of accrued Pre-Petition Revolving Credit Facility and DIP Credit Facility interest $ (1,022) Payment of professional fees at emergence (7,964) Accrued payable for claims to be settled via Unsecured Claims Distribution Trust 1,000 Accrued payable for claims to be settled via Convenience Claims Cash Pool 3,000 Accrued payable for claims to be settled via Parent Cash Pool 10,000 Professional fees payable at Emergence 18,047 Accrued payable for General Unsecured Claims against Gulfport Parent to be settled via 4A Claims distribution from common shares held in reserve 23,894 Accrued payable for General Unsecured Claims against Gulfport Subsidiary to be settled via 4B Claims distribution from common shares held in reserve 30,216 Reinstatement of payables due to Plan effects 45,428 Net change in accounts payable and accrued liabilities $ 122,599 (f) Changes to current operating lease liabilities reflect the reinstatement of lease liabilities due to contract assumptions. (g) Changes in the current maturities of long-term debt include the following: Current portion of Term Notes issued under the Exit Facility $ 60,000 Payment of DIP Facility to effectuate Exit Facility (157,500) Transfer of post-petition RBL borrowings to Exit Facility (122,751) Net changes to current maturities of long-term debt $ (220,251) (h) Reflects the reclassification of asset retirement obligations from liabilities subject to compromise. (i) Changes to non-current operating lease liabilities reflect the reinstatement of lease liabilities due to contract assumptions. (j) Changes in long-term debt include the following: Emergence Date draw on Exit Facility $ 122,751 Noncurrent portion of First-Out Term Loan issued under the Exit Credit Facility 120,000 Issuance of Successor Senior Notes 550,000 Net impact to long-term debt, net of current maturities $ 792,751 (k) On the Emergence Date, liabilities subject to compromise were settled in accordance with the Plan as follows: General Unsecured Claims settled via Class 4A, 4B, and 5B distributions $ 74,098 Predecessor Senior Notes and associated interest 1,842,035 Pre-Petition Revolving Credit Facility 197,500 Reinstatement of Predecessor Claims as Successor liabilities 45,475 Reinstatement of Predecessor asset retirement obligations 65,341 Total liabilities subject to compromise settled in accordance with the Plan $ 2,224,449 The resulting gain on liabilities subject to compromise was determined as follows: Pre-petition General Unsecured Claims Settled at Emergence $ 74,098 Predecessor Senior Notes Claims settled at Emergence 1,842,035 Pre-Petition Revolving Credit Facility 197,500 Rollover of Pre-Petition Revolving Credit Facility into Exit RBL Facility (197,500) Accrued payable for claims to be settled via Unsecured Claims Distribution Trust (1,000) Accrued payable for claims to be settled via Convenience Claims Cash Pool (3,000) Accrued payable for claims to be settled via Parent Cash Pool (10,000) Accrued payable for shares to be transferred to trust (54,109) Issuance of New Common Stock to settle Predecessor liabilities (639,666) Issuance of Successor Senior Notes in settlement of Class 4B and 5B claims (550,000) Gain on settlement of liabilities subject to compromise $ 658,358 (l) Changes to New Preferred Stock reflect the fair value of preferred shares issued in the Rights Offering. (m) Changes in Predecessor common stock reflect the extinguishment of Predecessor equity as per the Plan. (n) Changes in New Common Stock included the following: Issuance of common stock to settle General Unsecured Claims against Gulfport Parent (par value) $ — Issuance of common stock to settle General Unsecured Claims against Gulfport Subsidiaries (par value) 2 Common stock reserved for settlement of claims post Emergence Date (par value) — Net change to New Common Stock $ 2 (o) Changes to paid in capital included the following: Issuance of common stock to settle General Unsecured Claims against Gulfport Parent $ 27,751 Issuance of common stock to settle General Unsecured Claims against Gulfport Subsidiaries 666,022 Extinguishment of Predecessor stock-based compensation 4,419 Extinguishment of Predecessor paid in capital (4,220,256) Net change to paid in capital $ (3,522,064) (p) New Common Stock held in reserve to settle Allowed General Unsecured Claims include: Shares held in reserve to settle Allowed Claims against Gulfport Parent (23,894) Shares held in reserve to settle Allowed Claims against Gulfport Subsidiary (30,215) Total New Common Stock held in reserve $ (54,109) (q) Change to retained earnings (accumulated deficit) included the following Gain on settlement of liabilities subject to compromise $ 658,358 Extinguishment of Predecessor common stock and paid in capital 4,221,864 Recognition of counterparty credits due to settlements effectuated at Emergence 4,247 Deferred compensation earned at Emergence (2,073) Extinguishment of Predecessor accumulated other comprehensive income (40,430) Write-off of debt issuance costs related to First-Out Term Loan (3,150) Severance costs incurred as a result of the Plan (5,961) Professional fees earned at Emergence (18,047) Rights offering backstop commitment fee (5,000) Extinguishment of Predecessor stock-based compensation (4,418) Net change to retained earnings (accumulated deficit) $ 4,805,390 Fresh Start Adjustments (r) The change in fair value of short-term derivative instruments is due to the change in the Company's post-emergence credit rating. (s) The change in oil and natural gas properties represents the fair value adjustment to the Company's properties due to the adoption of fresh start accounting. (t) Predecessor accumulated depreciation and amortization for other property and equipment was net against the gross value of the assets with the adoption of fresh start accounting. (u) Predecessor accumulated depreciation and amortization was eliminated with the adoption of fresh start accounting. (v) The change in equity investments is due to the fair value adjustment to the Company's Grizzly investment. (w) The change in fair value of long-term derivative instruments is due to the change in the Company's post-emergence credit rating. (x) The change in fair value of liabilities related to short-term derivative instruments is due to the change in the Company's post-emergence credit rating. (y) The change in fair value of liabilities related to long-term derivative instruments is due to the change in the Company's post-emergence credit rating. (z) The fair value of asset retirement obligations were reduced due to the change in the Company's credit adjusted risk-free rate and expected economic life estimates. (aa) Changes to retained earnings represent the total impact of fresh start adjustments to the post-reorganization balance sheet. The following table summarizes the components in reorganization items, net included in the Company's unaudited consolidated statements of operations: Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Legal and professional advisory fees $ — $ (81,565) Net gain on liabilities subject to compromise — 575,182 Fresh start adjustments, net — (160,756) Elimination of predecessor accumulated other comprehensive income — (40,430) Debt issuance costs — (3,150) Other items, net — (22,383) Total reorganization items, net $ — $ 266,898 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The major categories of property and equipment and related accumulated DD&A and impairment as of September 30, 2021 and December 31, 2020 are as follows: Successor Predecessor September 30, 2021 December 31, 2020 Proved oil and natural gas properties $ 1,831,762 $ 9,359,866 Unproved properties 216,357 1,457,043 Other depreciable property and equipment 4,891 85,530 Land 386 3,008 Total property and equipment 2,053,396 10,905,447 Accumulated DD&A and impairment (212,403) (8,819,178) Property and equipment, net $ 1,840,993 $ 2,086,269 |
Schedule of Non-Producing Properties Excluded from Amortization by Area | The following table summarizes the Company’s unevaluated properties excluded from amortization by area at September 30, 2021: Successor September 30, 2021 (In thousands) Utica $ 179,449 SCOOP 36,905 Other 3 Total unproved properties $ 216,357 |
Schedule of Asset Retirement Obligation | The following table provides a reconciliation of the Company’s asset retirement obligation for the periods presented: Asset retirement obligation at January 1, 2021 (Predecessor) $ 63,566 Liabilities incurred 546 Accretion expense 1,229 Ending balance as of May 17, 2021 (Predecessor) $ 65,341 Fresh start adjustments (1) (46,257) Asset retirement obligation at May 18, 2021 (Successor) $ 19,084 Liabilities incurred 37 Accretion expense 226 Asset retirement obligation at June 30, 2021 $ 19,347 Liabilities incurred 19 Accretion expense 488 Asset retirement obligation at September 30, 2021 $ 19,854 (1) See Note 3 for additional discussion of fresh start adjustments. |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following items as of September 30, 2021 and December 31, 2020: Successor Predecessor September 30, 2021 December 31, 2020 Exit Facility $ 35,606 $ — First-Out Term Loan 165,000 — 8.000% senior unsecured notes due 2026 550,000 — DIP Credit Facility — 157,500 Pre-Petition Revolving Credit Facility — 292,910 6.625% senior unsecured notes due 2023 — 324,583 6.000% senior unsecured notes due 2024 — 579,568 6.375% senior unsecured notes due 2025 — 507,870 6.375% senior unsecured notes due 2026 — 374,617 Building Loan — 21,914 Debt issuance costs (1,104) — Total Debt $ 749,502 $ 2,258,962 Less: current maturities of long-term debt (60,000) (253,743) Less: amounts reclassified to liabilities subject to compromise — (2,005,219) Total Debt reflected as long term $ 689,502 $ — |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Movement on Temporary Equity | The following table summarizes PIK dividends and conversions of the Company’s New Preferred Stock subsequent to the Emergence Date: New Preferred Stock at May 18, 2021 (Successor) 55,000 Issuance of New Preferred Stock 1,006 Conversion of New Preferred Stock (146) New Preferred Stock at June 30, 2021 55,860 Issuance of New Preferred Stock 2,065 Conversion of New Preferred Stock (5) New Preferred Stock at September 30, 2021 57,920 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Restricted Stock Activity | The following table summarizes restricted stock unit activity for the Current Successor YTD Period: Number of Weighted Number of Weighted Unvested shares as of May 18, 2021 — $ — — $ — Granted 198,755 65.92 141,697 47.67 Vested — — — — Forfeited/canceled — — — — Unvested shares as of September 30, 2021 198,755 $ 65.92 141,697 $ 47.67 The following table summarizes restricted stock unit activity for the Current Predecessor YTD Period: Number of Weighted Number of Weighted Unvested shares as of January 1, 2021 1,702,513 $ 4.74 840,595 $ 4.07 Granted — — — — Vested (227,132) 8.45 — — Forfeited/canceled (1,475,381) 4.16 (840,595) 4.07 Unvested shares as of May 17, 2021 — $ — — $ — |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Reconciliations of the components of basic and diluted net (loss) income per common share are presented in the tables below: Successor Predecessor Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Net loss $ (461,313) $ (380,963) Dividends on New Preferred Stock (2,095) — Participating securities - New Preferred Stock (1) — — Net loss attributable to common stockholders $ (463,408) $ (380,963) Basic Shares 20,598 160,683 Basic and Dilutive EPS $ (22.50) $ (2.37) Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Net (loss) income attributable to Gulfport $ (670,898) $ 250,996 $ (1,459,569) Dividends on New Preferred Stock (3,126) — — Participating securities - New Preferred Stock (1) — — — Net (loss) income attributable to common stockholders $ (674,024) $ 250,996 $ (1,459,569) Basic Shares 20,507 160,834 160,053 Basic and Dilutive EPS $ (32.87) $ 1.56 $ (9.12) (1) New Preferred Stock represents participating securities because they participate in any dividends on shares of common stock on a pari passu , pro rata basis. However, New Preferred Stock does not participate in undistributed net losses. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Service Commitments | A summary of these commitments at September 30, 2021 are set forth in the table below, excluding contracts recently rejected or in the process of being rejected as discussed in the Litigation and Regulatory Proceedings section below: (In thousands) Remaining 2021 $ 61,609 2022 224,537 2023 222,730 2024 215,865 2025 137,116 Thereafter 977,616 Total $ 1,839,473 |
Schedule of Long-Term Purchase Commitments | A summary of these volume commitments at September 30, 2021 are set forth in the table below: (MMBtu per day) Remaining 2021 16,000 2022 4,000 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021. Location Daily Volume Weighted Natural Gas (MMBtu/d) ($/MMBtu) Remaining 2021 NYMEX Henry Hub 198,000 $ 2.85 2022 NYMEX Henry Hub 140,740 $ 2.88 2023 NYMEX Henry Hub 34,932 $ 3.24 Oil (Bbl/d) ($/Bbl) Remaining 2021 NYMEX WTI 3,000 $ 57.67 2022 NYMEX WTI 2,104 $ 66.23 NGL (Bbl/d) ($/Bbl) Remaining 2021 Mont Belvieu C3 3,100 $ 27.80 2022 Mont Belvieu C3 3,378 $ 35.09 Below is a summary of the Company's sold natural gas call option positions as of September 30, 2021. Location Daily Volume Weighted Average Price Natural Gas (MMBtu/d) ($/MMBtu) 2022 NYMEX Henry Hub 152,675 $ 2.90 2023 NYMEX Henry Hub 627,675 $ 2.90 Below is a summary of the Company's costless collar positions as of September 30, 2021. Location Daily Volume Weighted Average Floor Price Weighted Average Ceiling Price Natural Gas (MMBtu/d) ($/MMBtu) ($/MMBtu) Remaining 2021 NYMEX Henry Hub 610,000 $ 2.59 $ 3.02 2022 NYMEX Henry Hub 406,747 $ 2.58 $ 2.91 Oil (Bbl/d) ($/Bbl) ($/Bbl) 2022 NYMEX WTI 1,500 $ 55.00 $ 60.00 |
Schedule of Natural Gas Basis Swap Positions | Below is a summary of the Company's natural gas basis swap positions as of September 30, 2021. Gulfport Pays Gulfport Receives Daily Volume Weighted Average Fixed Spread Natural Gas (MMBtu/d) ($/MMBtu) Remaining 2021 Rex Zone 3 NYMEX Plus Fixed Spread 83,152 $ (0.12) 2022 Rex Zone 3 NYMEX Plus Fixed Spread 24,658 $ (0.10) Subsequent to September 30, 2021 and as of October 28, 2021, the Company entered into the following natural gas derivative contracts: Type of Derivative Instrument Index Daily Volume Weighted Natural Gas (MMBtu/d) ($/MMBtu) November 2021 - December 2021 Basis Swap ONG Minus Inside FERC 20,000 $0.50 January 2022 - March 2022 Basis Swap ONG Minus Inside FERC 20,000 $0.50 January 2023 - December 2023 Fixed price swap NYMEX Henry Hub 30,000 $3.58 |
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 September 30, 2021 and December 31, 2020: Successor Predecessor September 30, 2021 December 31, 2020 Short-term derivative asset $ 2,142 $ 27,146 Long-term derivative asset 961 322 Short-term derivative liability (560,722) (11,641) Long-term derivative liability (272,935) (36,604) Total commodity derivative position $ (830,554) $ (20,777) |
Schedule of Net Gain (Loss) on Derivatives | The following tables present the gain and loss recognized in net (loss) gain on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations: Net loss on derivative instruments Successor Predecessor Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Natural gas derivatives - fair value losses $ (517,799) $ (84,390) Natural gas derivatives - settlement (losses) gains (82,566) 31,742 Total losses on natural gas derivatives (600,365) (52,648) Oil and condensate derivatives - fair value (losses) gains (1,590) 723 Oil and condensate derivatives - settlement losses (4,336) (1,505) Total losses on oil and condensate derivatives (5,926) (782) NGL derivatives - fair value losses (10,201) (288) NGL derivatives - settlement losses (5,984) (105) Total losses on NGL derivatives (16,185) (393) Total losses on natural gas, oil and NGL derivatives $ (622,476) $ (53,823) Net (loss) gain on derivative instruments Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Natural gas derivatives - fair value losses $ (638,063) $ (123,080) $ (147,661) Natural gas derivatives - settlement (losses) gains (89,255) (3,362) 176,555 Total (losses) gains on natural gas derivatives (727,318) (126,442) 28,894 Oil and condensate derivatives - fair value losses (6,947) (6,126) (4,289) Oil and condensate derivatives - settlement (losses) gains (4,336) — 48,444 Total (losses) gains on oil and condensate derivatives (11,283) (6,126) 44,155 NGL derivatives - fair value losses (17,549) (4,671) (620) NGL derivatives - settlement (losses) gains (5,984) — 366 Total losses on NGL derivatives (23,533) (4,671) (254) Contingent consideration arrangement - fair value losses — — (1,381) Total (losses) gains on natural gas, oil and NGL derivatives $ (762,134) $ (137,239) $ 71,414 |
Schedule of Recognized Derivative Assets | The following table presents 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. Successor As of September 30, 2021 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount Derivative assets $ 3,103 $ (3,103) $ — Derivative liabilities $ (833,657) $ 3,103 $ (830,554) Predecessor As of December 31, 2020 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount Derivative assets $ 27,468 $ (25,730) $ 1,738 Derivative liabilities $ (48,245) $ 25,730 $ (22,515) |
Schedule of Recognized Derivative Liabilities | The following table presents 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. Successor As of September 30, 2021 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount Derivative assets $ 3,103 $ (3,103) $ — Derivative liabilities $ (833,657) $ 3,103 $ (830,554) Predecessor As of December 31, 2020 Gross Assets (Liabilities) Gross Amounts Presented in the Subject to Master Net Consolidated Balance Sheets Netting Agreements Amount Derivative assets $ 27,468 $ (25,730) $ 1,738 Derivative liabilities $ (48,245) $ 25,730 $ (22,515) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial and Non-Financial Assets and Liabilities by Valuation Level | The following tables summarize the Company’s financial and non-financial assets and liabilities by valuation level as of September 30, 2021 and December 31, 2020: Successor September 30, 2021 Level 1 Level 2 Level 3 Assets: Derivative Instruments $ — $ 3,103 $ — Contingent consideration arrangement — — 5,300 Total assets $ — $ 3,103 $ 5,300 Liabilities: Derivative Instruments $ — $ 833,657 $ — Predecessor December 31, 2020 Level 1 Level 2 Level 3 Assets: Derivative Instruments $ — $ 27,468 $ — Contingent consideration arrangement — — 6,200 Total assets $ — $ 27,468 $ 6,200 Liabilities: Derivative Instruments $ — $ 48,245 $ — |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Investments accounted for by the equity method during the periods presented consisted of the following: Carrying value Loss from equity method investments Predecessor Predecessor December 31, 2020 Three Months Ended September 30, 2020 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Investment in Grizzly Oil Sands ULC $ 24,816 $ (153) $ (342) $ (341) Investment in Mammoth Energy — — — (10,646) $ 24,816 $ (153) $ (342) $ (10,987) |
RESTRUCTURING AND LIABILITY M_2
RESTRUCTURING AND LIABILITY MANAGEMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Cost Incurred | The following table summarizes the restructuring and liability management charges incurred: Successor Predecessor Three months ended September 30, 2021 Three months ended September 30, 2020 Reduction in workforce $ 2,858 $ 1,460 Liability management — 7,524 Total restructuring and liability management $ 2,858 $ 8,984 Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine months ended September 30, 2020 Reduction in workforce $ 2,858 $ — $ 1,460 Liability management — — 8,141 Total restructuring and liability management $ 2,858 $ — $ 9,601 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Liability | Maturities of operating lease liabilities as of September 30, 2021 were as follows: (In thousands) Remaining 2021 $ 10 2022 25 Total lease payments $ 35 Less: Imputed interest (1) Total $ 34 |
Schedule of Lease Cost | The table below summarizes lease cost for the periods presented: Successor Predecessor Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Operating lease cost $ 10 $ 1,692 Variable lease cost — 245 Short-term lease cost 2,873 2,259 Total lease cost (1) $ 2,883 $ 4,196 Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Operating lease cost $ 18 $ 41 $ 7,970 Variable lease cost — — 705 Short-term lease cost 5,033 4,496 7,698 Total lease cost (1) $ 5,051 $ 4,537 $ 16,373 (1) The majority of the Company's total lease cost was capitalized to the full cost pool, and the remainder was included in either lease operating expenses or general and administrative expenses in the accompanying consolidated statements of operations. Supplemental cash flow information related to leases was as follows: Successor Predecessor Period from May 18, 2021 through September 30, 2021 Period from January 1, 2021 through May 17, 2021 Nine Months Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 46 $ 48 $ 109 Investing cash flow from operating leases — — 9,786 Investing cash flow from operating leases—related party — — 6,800 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Schedule of Natural Gas Basis Swap Positions | Below is a summary of the Company's natural gas basis swap positions as of September 30, 2021. Gulfport Pays Gulfport Receives Daily Volume Weighted Average Fixed Spread Natural Gas (MMBtu/d) ($/MMBtu) Remaining 2021 Rex Zone 3 NYMEX Plus Fixed Spread 83,152 $ (0.12) 2022 Rex Zone 3 NYMEX Plus Fixed Spread 24,658 $ (0.10) Subsequent to September 30, 2021 and as of October 28, 2021, the Company entered into the following natural gas derivative contracts: Type of Derivative Instrument Index Daily Volume Weighted Natural Gas (MMBtu/d) ($/MMBtu) November 2021 - December 2021 Basis Swap ONG Minus Inside FERC 20,000 $0.50 January 2022 - March 2022 Basis Swap ONG Minus Inside FERC 20,000 $0.50 January 2023 - December 2023 Fixed price swap NYMEX Henry Hub 30,000 $3.58 |
BASIS OF PRESENTATION (Schedule
BASIS OF PRESENTATION (Schedule of Accounts Payable and Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | |||
Accounts payable and other accrued liabilities | $ 159,080 | $ 120,275 | |
Revenue payable and suspense | 155,454 | 124,628 | |
Accrued contract rejection damages and shares held in reserve | 121,638 | 0 | |
Accounts Payable and Accrued Liabilities, Current, Total | $ 436,172 | $ 506,799 | $ 244,903 |
BASIS OF PRESENTATION (Suppleme
BASIS OF PRESENTATION (Supplemental Cash and Non Cash Information) (Details) - USD ($) $ in Thousands | 4 Months Ended | 5 Months Ended | 9 Months Ended |
Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for reorganization items, net | $ 42,202 | $ 87,199 | $ 0 |
Interest payments | 6,465 | 7,272 | 73,979 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable - oil and natural gas sales | (5,230) | (60,832) | 28,767 |
(Increase) decrease in accounts receivable - joint interest and other | 5,536 | (3,005) | 32,827 |
Increase (decrease) in accounts payable and accrued liabilities | (48,903) | 79,193 | (40,552) |
(Increase) decrease in prepaid expenses | 7,231 | 135,471 | (45,620) |
(Increase) decrease in other assets | 106 | 3,067 | (2,721) |
Total changes in operating assets and liabilities | (41,260) | 153,894 | (27,299) |
Supplemental disclosure of non-cash transactions: | |||
Capitalized stock-based compensation | 484 | 930 | 2,189 |
Asset retirement obligation capitalized | 55 | 546 | 2,343 |
Asset retirement obligation removed due to divestiture | 0 | 0 | (2,033) |
Interest capitalized | 117 | 0 | 907 |
Fair value of contingent consideration asset on date of divestiture | 0 | 0 | 23,090 |
Release of New Common Stock Held in Reserve | 23,893 | 0 | 0 |
Foreign currency translation gain (loss) on equity method investments | $ 0 | $ 2,570 | $ (4,497) |
CHAPTER 11 EMERGENCE (Details)
CHAPTER 11 EMERGENCE (Details) - USD ($) | May 17, 2021 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Debtor-in-possession financing, amount arranged | $ 105,000,000 | |
Holder Of A Class 4A Claim greater Than The Convenience Claim Threshold | ||
Debt Instrument [Line Items] | ||
Cash received by holders of an allowed general unsecured claim | $ 10,000,000 | |
Percentage of the equity method investment received | 100.00% | |
Hold Of A Convenience Class Claim | ||
Debt Instrument [Line Items] | ||
Cash distribution pool | $ 3,000,000 | |
Increase in additional cash distribution pool | 2,000,000 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debtor-in-possession financing, amount arranged | 580,000,000 | |
Exit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debtor-in-possession financing, amount arranged | 1,500,000,000 | |
First-Out Term Loan | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debtor-in-possession financing, amount arranged | 180,000,000 | |
8.000% senior unsecured notes due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debtor-in-possession financing, amount arranged | $ 550,000,000 | |
Interest rate | 8.00% | |
Common Stock | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 19,845,780 | |
Common Stock | Holder Of An Allowed Notes Claim | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 19,714,204 | |
Common Stock | Disputed Claims Reserve | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 1,678,755 | |
Common Stock | Holder Of A Class 4A Claim greater Than The Convenience Claim Threshold | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 119,679 | |
Common Stock | Holder Of A Class 4B Claim Greater Than The Convenience Claim Threshold | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 11,897 | |
Common Stock | Gulfport Employees And Non-Employee Directors | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 2,828,123 | |
Preferred Stock | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 55,000 | |
Preferred Stock | Holder Of An Allowed Notes Claim | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 54,967 | |
Preferred Stock | Holder Of A Class 4B Claim Greater Than The Convenience Claim Threshold | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 33 | |
Preferred Stock | Holders Of Claims Against Predecessor Subsidiaries | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 50,000 | |
Plan of reorganization, price (in USD per share) | $ 1,000 | |
Plan of reorganization, proceeds from issuance of shares | $ 50,000,000 | |
Preferred Stock | Back Stop Commitment Counterparties | ||
Debt Instrument [Line Items] | ||
Plan of reorganization, number of shares issued (in shares) | 5,000 |
FRESH START ACCOUNTING (Narrati
FRESH START ACCOUNTING (Narrative) (Details) - USD ($) $ in Thousands | May 17, 2021 | May 16, 2021 |
Reorganization, Chapter 11 [Line Items] | ||
Reorganization value of Successor assets | $ 2,252,990 | $ 2,300,000 |
Liabilities subject to compromise allowed claims | $ 3,100,000 | |
Enterprise Value | 1,600,000 | |
Minimum | ||
Reorganization, Chapter 11 [Line Items] | ||
Enterprise Value | 1,300,000 | |
Maximum | ||
Reorganization, Chapter 11 [Line Items] | ||
Enterprise Value | 1,900,000 | |
Fresh Start Adjustments | Investment in Grizzly Oil Sands ULC | ||
Reorganization, Chapter 11 [Line Items] | ||
Reduction in equity method investment | $ 27,000 |
FRESH START ACCOUNTING (Reconci
FRESH START ACCOUNTING (Reconciliation of Enterprise Value and Reorganization Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | May 17, 2021 | May 16, 2021 | Dec. 31, 2020 |
Reorganizations [Abstract] | ||||
Enterprise Value | $ 1,600,000 | |||
Plus: Cash and cash equivalents | $ 4,485 | 1,526 | $ 89,861 | |
Less: Fair value of debt | (852,751) | |||
Successor equity value | 748,775 | |||
Enterprise Value | 1,600,000 | |||
Mezzanine equity | 57,920 | 55,000 | ||
Plus: Current and other liabilities | 686,489 | |||
Plus: Asset retirement obligations | $ 19,854 | 19,084 | $ 0 | |
Less: Common stock reserved for settlement of claims post Emergence Date | (54,109) | |||
Reorganization value of Successor assets | $ 2,252,990 | $ 2,300,000 |
FRESH START ACCOUNTING (Fresh S
FRESH START ACCOUNTING (Fresh Start Adjustments) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | May 17, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | |||||||||
Cash and cash equivalents | $ 4,485 | $ 1,526 | $ 89,861 | ||||||
Restricted cash | 57,891 | ||||||||
Accounts receivable—oil and natural gas sales | 185,941 | 180,711 | 119,879 | ||||||
Accounts receivable—joint interest and other | 9,669 | 15,431 | 12,200 | ||||||
Prepaid expenses and other current assets | 18,487 | 25,295 | 160,664 | ||||||
Short-term derivative instruments | 2,142 | 3,465 | 27,146 | ||||||
Total current assets | 220,724 | 284,319 | 409,750 | ||||||
Property and equipment: | |||||||||
Proved oil and natural gas properties | 1,831,762 | 1,697,408 | 9,359,866 | ||||||
Unproved properties | 216,357 | 230,174 | 1,457,043 | ||||||
Other property and equipment | 5,277 | 6,893 | 88,538 | ||||||
Total property and equipment | 2,053,396 | 1,934,475 | 10,905,447 | ||||||
Accumulated DD&A and impairment | (212,403) | 0 | (8,819,178) | ||||||
Total property and equipment, net | 1,840,993 | 1,934,475 | 2,086,269 | ||||||
Other assets: | |||||||||
Equity investments | 0 | 0 | 24,816 | ||||||
Long-term derivative instruments | 961 | 8,183 | 322 | ||||||
Operating lease assets | 34 | 47 | 342 | ||||||
Other assets | 25,496 | 25,966 | 18,372 | ||||||
Total other assets | 26,491 | 34,196 | 43,852 | ||||||
Total assets | 2,088,208 | 2,252,990 | 2,539,871 | ||||||
Current liabilities: | |||||||||
Accounts payable and accrued liabilities | 436,172 | 506,799 | 244,903 | ||||||
Short-term derivative instruments | 560,722 | 98,900 | 11,641 | ||||||
Current portion of operating lease liabilities | 34 | 38 | 0 | ||||||
Current maturities of long-term debt | 60,000 | 60,000 | 253,743 | ||||||
Total current liabilities | 1,056,928 | 665,737 | 510,287 | ||||||
Non-current liabilities: | |||||||||
Long-term derivative instruments | 272,935 | 80,742 | 36,604 | ||||||
Asset retirement obligation | 19,854 | 19,084 | 0 | ||||||
Non-current operating lease liabilities | 9 | ||||||||
Long-term debt, net of current maturities | 689,502 | 792,751 | 0 | ||||||
Total non-current liabilities | 982,291 | 892,586 | 36,604 | ||||||
Liabilities subject to compromise | 0 | 2,224,449 | 2,293,480 | ||||||
Total liabilities | 2,039,219 | 1,558,323 | 2,840,371 | ||||||
Commitments and contingencies (Note 9) | |||||||||
Mezzanine Equity: | |||||||||
New Preferred Stock | 57,920 | 55,000 | |||||||
Stockholders’ equity (deficit): | |||||||||
Common stock | 2 | 2 | 1,607 | ||||||
Additional paid-in capital | 692,182 | 693,774 | 4,213,752 | ||||||
New Common Stock held in reserve | (30,216) | (54,109) | |||||||
Accumulated other comprehensive loss | 0 | (43,000) | |||||||
Retained earnings (accumulated deficit) | (670,899) | 0 | (4,472,859) | ||||||
Total stockholders’ deficit | (8,931) | $ 453,090 | 639,667 | $ (287,738) | (300,500) | $ (144,777) | $ 231,340 | $ 784,049 | $ 1,314,592 |
Total liabilities, mezzanine equity and stockholders’ deficit | $ 2,088,208 | 2,252,990 | $ 2,539,871 | ||||||
Predecessor | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 146,545 | ||||||||
Restricted cash | 0 | ||||||||
Accounts receivable—oil and natural gas sales | 180,711 | ||||||||
Accounts receivable—joint interest and other | 15,431 | ||||||||
Prepaid expenses and other current assets | 86,189 | ||||||||
Short-term derivative instruments | 3,324 | ||||||||
Total current assets | 432,200 | ||||||||
Property and equipment: | |||||||||
Proved oil and natural gas properties | 9,558,121 | ||||||||
Unproved properties | 1,375,681 | ||||||||
Other property and equipment | 38,026 | ||||||||
Total property and equipment | 10,971,828 | ||||||||
Accumulated DD&A and impairment | (8,870,723) | ||||||||
Total property and equipment, net | 2,101,105 | ||||||||
Other assets: | |||||||||
Equity investments | 27,044 | ||||||||
Long-term derivative instruments | 7,468 | ||||||||
Operating lease assets | 47 | ||||||||
Other assets | 18,866 | ||||||||
Total other assets | 53,425 | ||||||||
Total assets | 2,586,730 | ||||||||
Current liabilities: | |||||||||
Accounts payable and accrued liabilities | 384,200 | ||||||||
Short-term derivative instruments | 96,116 | ||||||||
Current portion of operating lease liabilities | 0 | ||||||||
Current maturities of long-term debt | 280,251 | ||||||||
Total current liabilities | 760,567 | ||||||||
Non-current liabilities: | |||||||||
Long-term derivative instruments | 69,331 | ||||||||
Asset retirement obligation | 0 | ||||||||
Non-current operating lease liabilities | 0 | ||||||||
Long-term debt, net of current maturities | 0 | ||||||||
Total non-current liabilities | 69,331 | ||||||||
Liabilities subject to compromise | 2,224,449 | ||||||||
Total liabilities | 3,054,347 | ||||||||
Commitments and contingencies (Note 9) | |||||||||
Stockholders’ equity (deficit): | |||||||||
Common stock | 1,609 | ||||||||
Additional paid-in capital | 4,215,838 | ||||||||
New Common Stock held in reserve | 0 | ||||||||
Accumulated other comprehensive loss | (40,430) | ||||||||
Retained earnings (accumulated deficit) | (4,644,634) | ||||||||
Total stockholders’ deficit | (467,617) | ||||||||
Total liabilities, mezzanine equity and stockholders’ deficit | 2,586,730 | ||||||||
Reorganization Adjustments | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | (145,019) | ||||||||
Restricted cash | 57,891 | ||||||||
Accounts receivable—oil and natural gas sales | 0 | ||||||||
Accounts receivable—joint interest and other | 0 | ||||||||
Prepaid expenses and other current assets | (60,894) | ||||||||
Total current assets | (148,022) | ||||||||
Property and equipment: | |||||||||
Proved oil and natural gas properties | 0 | ||||||||
Unproved properties | 0 | ||||||||
Other property and equipment | 0 | ||||||||
Total property and equipment | 0 | ||||||||
Accumulated DD&A and impairment | 0 | ||||||||
Total property and equipment, net | 0 | ||||||||
Other assets: | |||||||||
Equity investments | 0 | ||||||||
Long-term derivative instruments | 0 | ||||||||
Operating lease assets | 0 | ||||||||
Other assets | 7,100 | ||||||||
Total other assets | 7,100 | ||||||||
Total assets | (140,922) | ||||||||
Current liabilities: | |||||||||
Accounts payable and accrued liabilities | 122,599 | ||||||||
Short-term derivative instruments | 0 | ||||||||
Current portion of operating lease liabilities | 38 | ||||||||
Current maturities of long-term debt | (220,251) | ||||||||
Total current liabilities | (97,614) | ||||||||
Non-current liabilities: | |||||||||
Long-term derivative instruments | 0 | ||||||||
Asset retirement obligation | 65,341 | ||||||||
Non-current operating lease liabilities | 9 | ||||||||
Long-term debt, net of current maturities | 792,751 | ||||||||
Total non-current liabilities | 858,101 | ||||||||
Liabilities subject to compromise | (2,224,449) | ||||||||
Total liabilities | (1,463,962) | ||||||||
Commitments and contingencies (Note 9) | |||||||||
Mezzanine Equity: | |||||||||
New Preferred Stock | 55,000 | ||||||||
Stockholders’ equity (deficit): | |||||||||
Common stock | (1,609) | ||||||||
Additional paid-in capital | (3,522,064) | ||||||||
New Common Stock held in reserve | (54,109) | ||||||||
Accumulated other comprehensive loss | 40,430 | ||||||||
Retained earnings (accumulated deficit) | 4,805,390 | ||||||||
Total stockholders’ deficit | 1,268,040 | ||||||||
Total liabilities, mezzanine equity and stockholders’ deficit | (140,922) | ||||||||
Fresh Start Adjustments | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 0 | ||||||||
Restricted cash | 0 | ||||||||
Accounts receivable—oil and natural gas sales | 0 | ||||||||
Accounts receivable—joint interest and other | 0 | ||||||||
Prepaid expenses and other current assets | 0 | ||||||||
Short-term derivative instruments | 141 | ||||||||
Total current assets | 141 | ||||||||
Property and equipment: | |||||||||
Proved oil and natural gas properties | (7,860,713) | ||||||||
Unproved properties | (1,145,507) | ||||||||
Other property and equipment | (31,133) | ||||||||
Total property and equipment | (9,037,353) | ||||||||
Accumulated DD&A and impairment | 8,870,723 | ||||||||
Total property and equipment, net | (166,630) | ||||||||
Other assets: | |||||||||
Equity investments | (27,044) | ||||||||
Long-term derivative instruments | 715 | ||||||||
Operating lease assets | 0 | ||||||||
Other assets | 0 | ||||||||
Total other assets | (26,329) | ||||||||
Total assets | (192,818) | ||||||||
Current liabilities: | |||||||||
Accounts payable and accrued liabilities | 0 | ||||||||
Short-term derivative instruments | 2,784 | ||||||||
Current portion of operating lease liabilities | 0 | ||||||||
Current maturities of long-term debt | 0 | ||||||||
Total current liabilities | 2,784 | ||||||||
Non-current liabilities: | |||||||||
Long-term derivative instruments | 11,411 | ||||||||
Asset retirement obligation | (46,257) | ||||||||
Non-current operating lease liabilities | 0 | ||||||||
Long-term debt, net of current maturities | 0 | ||||||||
Total non-current liabilities | (34,846) | ||||||||
Total liabilities | (32,062) | ||||||||
Commitments and contingencies (Note 9) | |||||||||
Stockholders’ equity (deficit): | |||||||||
Additional paid-in capital | 0 | ||||||||
New Common Stock held in reserve | 0 | ||||||||
Accumulated other comprehensive loss | 0 | ||||||||
Retained earnings (accumulated deficit) | (160,756) | ||||||||
Total stockholders’ deficit | (160,756) | ||||||||
Total liabilities, mezzanine equity and stockholders’ deficit | $ (192,818) |
FRESH START ACCOUNTING (Reorgan
FRESH START ACCOUNTING (Reorganization Adjustment to Cash and Cash Equivalents) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 |
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | $ 4,485 | $ 1,526 | $ 89,861 |
Release of escrow funds by counterparties as a result of the Plan | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | 63,068 | ||
New Preferred Stock rights offering proceeds | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | 50,000 | ||
Funds required to rollover the DIP Credit Facility and Pre-Petition Revolving Credit Facility into the Exit Facility | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | (175,000) | ||
Payment of accrued Pre-Petition Revolving Credit Facility and DIP Credit Facility interest | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | (1,022) | ||
Payment of issuance costs related to the Exit Credit Facility | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | (10,250) | ||
Funding of the Professional Fee Escrow | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | (43,891) | ||
Payment of professional fees at Emergence Date | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | (7,964) | ||
Transfer to restricted cash for the Unsecured Claims Distribution Trust | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | (1,000) | ||
Transfer to restricted cash for the Convenience Claims Cash Pool | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | (3,000) | ||
Transfer to restricted cash for the Parent Cash Pool | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | (10,000) | ||
Payment of severance costs at Emergence Date | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | (5,960) | ||
Reorganization Adjustments | |||
Reorganization, Chapter 11 [Line Items] | |||
Cash and cash equivalents | $ (145,019) |
FRESH START ACCOUNTING (Reorg_2
FRESH START ACCOUNTING (Reorganization Adjustment to Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 |
Reorganization, Chapter 11 [Line Items] | |||
Prepaid expenses and other current assets | $ 18,487 | $ 25,295 | $ 160,664 |
Release of escrow funds as a result of the Plan | |||
Reorganization, Chapter 11 [Line Items] | |||
Prepaid expenses and other current assets | (63,068) | ||
Recognition of counterparty credits due to settlements effectuated at Emergence | |||
Reorganization, Chapter 11 [Line Items] | |||
Prepaid expenses and other current assets | 4,247 | ||
Prepaid compensation earned at Emergence | |||
Reorganization, Chapter 11 [Line Items] | |||
Prepaid expenses and other current assets | (2,073) | ||
Reorganization Adjustments | |||
Reorganization, Chapter 11 [Line Items] | |||
Prepaid expenses and other current assets | $ (60,894) |
FRESH START ACCOUNTING (Reorg_3
FRESH START ACCOUNTING (Reorganization Adjustment to Accounts Payable and Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 |
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | $ 436,172 | $ 506,799 | $ 244,903 |
Payment of accrued Pre-Petition Revolving Credit Facility and DIP Credit Facility interest | |||
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | (1,022) | ||
Payment of professional fees at emergence | |||
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | (7,964) | ||
Accrued payable for claims to be settled via Unsecured Claims Distribution Trust | |||
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | 1,000 | ||
Accrued payable for claims to be settled via Convenience Claims Cash Pool | |||
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | 3,000 | ||
Accrued payable for claims to be settled via Parent Cash Pool | |||
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | 10,000 | ||
Professional fees payable at Emergence | |||
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | 18,047 | ||
Accrued payable for General Unsecured Claims against Gulfport Parent to be settled via 4A Claims distribution from common shares held in reserve | |||
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | 23,894 | ||
Accrued payable for General Unsecured Claims against Gulfport Subsidiary to be settled via 4B Claims distribution from common shares held in reserve | |||
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | 30,216 | ||
Reinstatement of payables due to Plan effects | |||
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | 45,428 | ||
Reorganization Adjustments | |||
Reorganization, Chapter 11 [Line Items] | |||
Accounts payable and accrued liabilities | $ 122,599 |
FRESH START ACCOUNTING (Reorg_4
FRESH START ACCOUNTING (Reorganization Adjustment to Long-term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 |
Reorganization, Chapter 11 [Line Items] | |||
Current maturities of long-term debt | $ 60,000 | $ 60,000 | $ 253,743 |
Long-term debt, net of current maturities | $ 689,502 | 792,751 | $ 0 |
Current portion of Term Notes issued under the Exit Facility | |||
Reorganization, Chapter 11 [Line Items] | |||
Current maturities of long-term debt | 60,000 | ||
Payment of DIP Facility to effectuate Exit Facility | |||
Reorganization, Chapter 11 [Line Items] | |||
Current maturities of long-term debt | (157,500) | ||
Transfer of post-petition RBL borrowings to Exit Facility | |||
Reorganization, Chapter 11 [Line Items] | |||
Current maturities of long-term debt | (122,751) | ||
Emergence Date draw on Exit Facility | |||
Reorganization, Chapter 11 [Line Items] | |||
Long-term debt, net of current maturities | 122,751 | ||
Noncurrent portion of First-Out Term Loan issued under the Exit Credit Facility | |||
Reorganization, Chapter 11 [Line Items] | |||
Long-term debt, net of current maturities | 120,000 | ||
Issuance of Successor Senior Notes | |||
Reorganization, Chapter 11 [Line Items] | |||
Long-term debt, net of current maturities | 550,000 | ||
Reorganization Adjustments | |||
Reorganization, Chapter 11 [Line Items] | |||
Current maturities of long-term debt | (220,251) | ||
Long-term debt, net of current maturities | $ 792,751 |
FRESH START ACCOUNTING (Reorg_5
FRESH START ACCOUNTING (Reorganization Adjustment to Liabilities Subject to Compromise and Gain on Liabilities Subject to Compromise) (Details) - USD ($) $ in Thousands | 5 Months Ended | ||
May 17, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Reorganization, Chapter 11 [Line Items] | |||
Liabilities subject to compromise | $ 2,224,449 | $ 0 | $ 2,293,480 |
General Unsecured Claims settled via Class 4A, 4B, and 5B distributions | |||
Reorganization, Chapter 11 [Line Items] | |||
Liabilities subject to compromise | 74,098 | ||
Predecessor Senior Notes and associated interest | |||
Reorganization, Chapter 11 [Line Items] | |||
Liabilities subject to compromise | 1,842,035 | ||
Pre-Petition Revolving Credit Facility | |||
Reorganization, Chapter 11 [Line Items] | |||
Liabilities subject to compromise | 197,500 | ||
Reinstatement of Predecessor Claims as Successor liabilities | |||
Reorganization, Chapter 11 [Line Items] | |||
Liabilities subject to compromise | 45,475 | ||
Reinstatement of Predecessor asset retirement obligations | |||
Reorganization, Chapter 11 [Line Items] | |||
Liabilities subject to compromise | 65,341 | ||
Reorganization Adjustments | |||
Reorganization, Chapter 11 [Line Items] | |||
Liabilities subject to compromise | (2,224,449) | ||
Pre-petition General Unsecured Claims Settled at Emergence | 74,098 | ||
Predecessor Senior Notes Claims settled at Emergence | 1,842,035 | ||
Pre-Petition Revolving Credit Facility | 197,500 | ||
Rollover of Pre-Petition Revolving Credit Facility into Exit RBL Facility | (197,500) | ||
Accrued payable for claims to be settled via Unsecured Claims Distribution Trust | (1,000) | ||
Accrued payable for claims to be settled via Convenience Claims Cash Pool | (3,000) | ||
Accrued payable for claims to be settled via Parent Cash Pool | (10,000) | ||
Accrued payable for shares to be transferred to trust | (54,109) | ||
Issuance of New Common Stock to settle Predecessor liabilities | (639,666) | ||
Issuance of Successor Senior Notes in settlement of Class 4B and 5B claims | (550,000) | ||
Gain on settlement of liabilities subject to compromise | $ 658,358 |
FRESH START ACCOUNTING (Reorg_6
FRESH START ACCOUNTING (Reorganization Adjustment to Common Stock, Additional Paid in Capital and Common Stock Held in Reserve) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 |
Reorganization, Chapter 11 [Line Items] | |||
Common stock | $ 2 | $ 2 | $ 1,607 |
Additional paid-in capital | 692,182 | 693,774 | $ 4,213,752 |
New Common Stock held in reserve | $ (30,216) | (54,109) | |
Issuance of common stock to settle General Unsecured Claims against Gulfport Parent | |||
Reorganization, Chapter 11 [Line Items] | |||
Common stock | 0 | ||
Additional paid-in capital | 27,751 | ||
Issuance of common stock to settle General Unsecured Claims against Gulfport Subsidiaries | |||
Reorganization, Chapter 11 [Line Items] | |||
Common stock | 2 | ||
Additional paid-in capital | 666,022 | ||
Common stock reserved for settlement of claims post Emergence Date (par value) | |||
Reorganization, Chapter 11 [Line Items] | |||
Common stock | 0 | ||
Net change to New Common Stock | |||
Reorganization, Chapter 11 [Line Items] | |||
Common stock | 2 | ||
Extinguishment of Predecessor stock-based compensation | |||
Reorganization, Chapter 11 [Line Items] | |||
Additional paid-in capital | 4,419 | ||
Extinguishment of Predecessor paid in capital | |||
Reorganization, Chapter 11 [Line Items] | |||
Additional paid-in capital | (4,220,256) | ||
Shares held in reserve to settle Allowed Claims against Gulfport Parent | |||
Reorganization, Chapter 11 [Line Items] | |||
New Common Stock held in reserve | (23,894) | ||
Shares held in reserve to settle Allowed Claims against Gulfport Subsidiary | |||
Reorganization, Chapter 11 [Line Items] | |||
New Common Stock held in reserve | (30,215) | ||
Reorganization Adjustments | |||
Reorganization, Chapter 11 [Line Items] | |||
Common stock | (1,609) | ||
Additional paid-in capital | (3,522,064) | ||
New Common Stock held in reserve | $ (54,109) |
FRESH START ACCOUNTING (Reorg_7
FRESH START ACCOUNTING (Reorganization Adjustment to Retained Earnings (Accumulated Deficit)) (Details) - USD ($) $ in Thousands | 4 Months Ended | 5 Months Ended | |
Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 | |
Reorganization, Chapter 11 [Line Items] | |||
Professional fees earned at Emergence | $ 0 | $ (81,565) | |
Retained earnings (accumulated deficit) | $ (670,899) | 0 | $ (4,472,859) |
Extinguishment of Predecessor common stock and paid in capital | |||
Reorganization, Chapter 11 [Line Items] | |||
Retained earnings (accumulated deficit) | 4,221,864 | ||
Recognition of counterparty credits due to settlements effectuated at Emergence | |||
Reorganization, Chapter 11 [Line Items] | |||
Retained earnings (accumulated deficit) | 4,247 | ||
Deferred compensation earned at Emergence | |||
Reorganization, Chapter 11 [Line Items] | |||
Retained earnings (accumulated deficit) | (2,073) | ||
Extinguishment of Predecessor accumulated other comprehensive income | |||
Reorganization, Chapter 11 [Line Items] | |||
Retained earnings (accumulated deficit) | (40,430) | ||
Write-off of debt issuance costs related to First-Out Term Loan | |||
Reorganization, Chapter 11 [Line Items] | |||
Retained earnings (accumulated deficit) | (3,150) | ||
Severance costs incurred as a result of the Plan | |||
Reorganization, Chapter 11 [Line Items] | |||
Retained earnings (accumulated deficit) | (5,961) | ||
Rights offering backstop commitment fee | |||
Reorganization, Chapter 11 [Line Items] | |||
Retained earnings (accumulated deficit) | (5,000) | ||
Extinguishment of Predecessor stock-based compensation | |||
Reorganization, Chapter 11 [Line Items] | |||
Retained earnings (accumulated deficit) | (4,418) | ||
Reorganization Adjustments | |||
Reorganization, Chapter 11 [Line Items] | |||
Gain on settlement of liabilities subject to compromise | 658,358 | ||
Professional fees earned at Emergence | (18,047) | ||
Retained earnings (accumulated deficit) | $ 4,805,390 |
FRESH START ACCOUNTING (Schedul
FRESH START ACCOUNTING (Schedule of Components of Reorganization Items, Net) (Details) - USD ($) $ in Thousands | 4 Months Ended | 5 Months Ended | 9 Months Ended |
Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Reorganization, Chapter 11 [Line Items] | |||
Professional fees earned at Emergence | $ 0 | $ (81,565) | |
Net gain on liabilities subject to compromise | 0 | 575,182 | |
Elimination of predecessor accumulated other comprehensive income | (40,430) | ||
Debt issuance costs | 0 | (3,150) | |
Other items, net | 0 | (22,383) | |
Reorganization items, net | 0 | 266,898 | $ 0 |
Fresh Start Adjustments | |||
Reorganization, Chapter 11 [Line Items] | |||
Reorganization items, net | $ 0 | $ (160,756) |
PROPERTY AND EQUIPMENT (Schedul
PROPERTY AND EQUIPMENT (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | |||
Proved oil and natural gas properties | $ 1,831,762 | $ 1,697,408 | $ 9,359,866 |
Unproved properties | 216,357 | 230,174 | 1,457,043 |
Other depreciable property and equipment | 4,891 | 85,530 | |
Land | 386 | 3,008 | |
Total property and equipment | 2,053,396 | 1,934,475 | 10,905,447 |
Accumulated DD&A and impairment | (212,403) | 0 | (8,819,178) |
Total property and equipment, net | $ 1,840,993 | $ 1,934,475 | $ 2,086,269 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |||||
Impairment of oil and natural gas properties | $ 0 | $ 270,874 | $ 117,813 | $ 0 | $ 1,357,099 |
Capitalized general and administrative costs | $ 5,100 | $ 6,200 | $ 7,300 | 8,000 | $ 19,800 |
Impairment of corporate headquarters | $ 14,600 |
PROPERTY AND EQUIPMENT (Summary
PROPERTY AND EQUIPMENT (Summary of Non-producing Properties Excluded from Amortization by Area) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Property, Plant and Equipment [Line Items] | |
Total unproved properties | $ 216,357 |
Utica | |
Property, Plant and Equipment [Line Items] | |
Total unproved properties | 179,449 |
SCOOP | |
Property, Plant and Equipment [Line Items] | |
Total unproved properties | 36,905 |
Other | |
Property, Plant and Equipment [Line Items] | |
Total unproved properties | $ 3 |
PROPERTY AND EQUIPMENT (Sched_2
PROPERTY AND EQUIPMENT (Schedule of Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Beginning balance | $ 65,341 | $ 19,347 | $ 65,341 | $ 63,566 | ||
Beginning balance | 19,084 | 19,084 | ||||
Liabilities incurred | 37 | 19 | 546 | |||
Accretion expense | 226 | 488 | $ 774 | 714 | 1,229 | $ 2,270 |
Ending balance | 19,347 | $ 19,854 | 19,854 | 65,341 | ||
Ending balance | 19,084 | |||||
Fresh Start Adjustments | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Beginning balance | $ (46,257) | $ (46,257) | ||||
Ending balance | $ (46,257) |
LONG-TERM DEBT (Summary of Long
LONG-TERM DEBT (Summary of Long-Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ (1,104) | $ 0 | |
Total Debt | 749,502 | 2,258,962 | |
Less: current maturities of long-term debt | (60,000) | $ (60,000) | (253,743) |
Less: amounts reclassified to liabilities subject to compromise | 0 | (2,005,219) | |
Total Debt reflected as long term | 689,502 | $ 792,751 | 0 |
Exit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 35,606 | 0 | |
First-Out Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | 165,000 | 0 | |
8.000% senior unsecured notes due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 550,000 | 0 | |
Stated interest rate | 8.00% | ||
6.625% senior unsecured notes due 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 324,583 | |
Stated interest rate | 6.625% | ||
6.000% senior unsecured notes due 2024 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | $ 579,568 | |
Stated interest rate | 6.00% | ||
6.375% senior unsecured notes due 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | $ 507,870 | |
Stated interest rate | 6.375% | ||
6.375% senior unsecured notes due 2026 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | $ 374,617 | |
Stated interest rate | 6.375% | ||
Building Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | $ 21,914 | |
Revolving Credit Agreement | DIP Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 157,500 | |
Revolving Credit Agreement | Pre-Petition Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 292,910 |
LONG-TERM DEBT (Narrative) (Det
LONG-TERM DEBT (Narrative) (Details) - USD ($) shares in Millions | Oct. 14, 2021 | May 17, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | May 16, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||||||
Debtor-in-possession financing, letters of credit outstanding | $ 262,500,000 | $ 262,500,000 | |||||||
Debtor-in-possession financing, amount arranged | 105,000,000 | 105,000,000 | |||||||
Debtor-in-possession financing, borrowings outstanding | 157,500,000 | 157,500,000 | |||||||
Interest capitalized | 117,000 | $ 0 | $ 907,000 | ||||||
Oil and Gas Properties | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest capitalized | $ 200,000 | 100,000 | 0 | $ 900,000 | |||||
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Consideration received on transaction | 550,000,000 | ||||||||
Number of shares issued in transaction (in shares) | 19.7 | ||||||||
Senior Notes | Carry Value | |||||||||
Debt Instrument [Line Items] | |||||||||
Carrying value of notes | 548,900,000 | 548,900,000 | |||||||
Senior Notes | Fair Value | Level 1 | |||||||||
Debt Instrument [Line Items] | |||||||||
Carrying value of notes | 601,400,000 | 601,400,000 | |||||||
Exit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, commitment fee amount | $ 150,000,000 | ||||||||
Remaining borrowing capacity | 40,000,000 | 40,000,000 | |||||||
Long-term debt | 35,606,000 | $ 35,606,000 | $ 0 | ||||||
Exit Facility | Revolving Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Weight average interest rate | 4.50% | ||||||||
First-Out Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 165,000,000 | $ 165,000,000 | 0 | ||||||
First-Out Term Loan | Revolving Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Weight average interest rate | 5.50% | ||||||||
8.000% senior unsecured notes due 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 8.00% | 8.00% | |||||||
Long-term debt | $ 550,000,000 | $ 550,000,000 | $ 0 | ||||||
8.000% senior unsecured notes due 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debtor-in-possession financing, amount arranged | 550,000,000 | 550,000,000 | |||||||
8.000% senior unsecured notes due 2026 | Senior Notes | Fresh Start Adjustments | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, amount | $ 550,000,000 | $ 550,000,000 | |||||||
Stated interest rate | 8.00% | 8.00% | |||||||
6.625% senior unsecured notes due 2023 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 6.625% | ||||||||
Long-term debt | 0 | 0 | $ 324,583,000 | ||||||
6.000% senior unsecured notes due 2024 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 6.00% | ||||||||
Long-term debt | 0 | 0 | $ 579,568,000 | ||||||
6.375% senior unsecured notes due 2025 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 6.375% | ||||||||
Long-term debt | 0 | 0 | $ 507,870,000 | ||||||
6.375% senior unsecured notes due 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 6.375% | ||||||||
Long-term debt | 0 | 0 | $ 374,617,000 | ||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debtor-in-possession financing, amount arranged | $ 580,000,000 | $ 580,000,000 | |||||||
Revolving Credit Facility | New Credit Facility | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate maximum principal amount | $ 1,500,000,000 | ||||||||
Initial borrowing base amount | 850,000,000 | ||||||||
Line of credit facility, commitment fee amount | 700,000,000 | ||||||||
Revolving Credit Facility | Exit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debtor-in-possession financing, amount arranged | 1,500,000,000 | 1,500,000,000 | |||||||
Revolving Credit Facility | Exit Facility | Fresh Start Adjustments | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, amount | 1,500,000,000 | 1,500,000,000 | |||||||
Line of credit facility, commitment fee amount | 580,000,000 | ||||||||
Revolving Credit Facility | First-Out Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility outstanding | 15,000,000 | 15,000,000 | |||||||
Debtor-in-possession financing, amount arranged | 180,000,000 | 180,000,000 | |||||||
Revolving Credit Facility | First-Out Term Loan | Fresh Start Adjustments | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, amount | $ 180,000,000 | $ 180,000,000 | |||||||
Revolving Credit Facility | Pre-Petition Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Initial borrowing base amount | $ 580,000,000 | ||||||||
Revolving Credit Agreement | Pre-Petition Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 0 | 0 | 292,910,000 | ||||||
Revolving Credit Agreement | DIP Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 0 | 0 | $ 157,500,000 | ||||||
Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 115,500,000 | $ 115,500,000 | |||||||
Letter of Credit | New Credit Facility | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate maximum principal amount | $ 175,000,000 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | May 17, 2021 | Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||||
Common stock, shares authorized (in shares) | 42,000,000 | 200,000,000 | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.01 | ||
Temporary equity, shares authorized (in shares) | 110,000 | |||
Temporary equity, par or stated value (in usd per share) | $ 0.0001 | |||
Temporary equity, liquidation preference (in usd per share) | $ 1,000 | $ 1,000 | ||
Common stock, shares, issued (in shares) | 19,800,000 | 20,600,000 | 19,800,000 | 160,800,000 |
Preferred stock issued (in shares) | 55,000 | 55,000 | ||
Preferred stock, dividend rate | 10.00% | |||
Preferred stock, dividend rate, percentage, pain-in-kind | 15.00% | |||
Dividends, paid-in-kind, ratio | 150.00% | 150.00% | ||
Preferred stock, convertible, conversion price (in usd per share) | $ 14 | $ 14 | ||
Preferred stock, value, outstanding, payment period | 3 days | |||
Preferred stock dividends (in shares) | 2,065 | |||
Dividends, preferred stock, paid-in-kind | $ 30 |
EQUITY (Schedule of Dividends)
EQUITY (Schedule of Dividends) (Details) - shares | 1 Months Ended | 3 Months Ended |
Jun. 30, 2021 | Sep. 30, 2021 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning value | 55,000 | 55,860 |
Issuance of New Preferred Stock | 1,006 | 2,065 |
Conversion of New Preferred Stock | (146) | (5) |
Ending value | 55,860 | 57,920 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Millions | May 17, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation cost | $ 4.4 | |||||
2021 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, capital shares reserved for future issuance (in shares) | 2,828,123 | 2,828,123 | ||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation cost | $ 1.4 | $ 8.9 | $ 1.4 | $ 4.4 | $ 13.2 | |
Capitalized stock-based compensation cost | 0.5 | $ 0.3 | $ 0.5 | $ 0.9 | $ 2.2 | |
Restricted Stock Units | Employee | 2021 Stock Incentive Plan | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Restricted Stock Units | Employee | 2021 Stock Incentive Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Restricted Stock Units | Employee | 2019 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Restricted Stock Units | Director | 2021 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Unrecognized compensation expense to be expected | 12.2 | $ 12.2 | ||||
Unrecognized compensation expense expected to be recognized | 3 years 18 days | |||||
Restricted Stock Units | Director | 2019 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of target based award, minimum | 0.00% | |||||
Percent of target based award, maximum | 200.00% | |||||
Performance Stock Units | 2021 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of target based award, minimum | 0.00% | |||||
Percent of target based award, maximum | 200.00% | |||||
Unrecognized compensation expense to be expected | $ 6.3 | $ 6.3 | ||||
Unrecognized compensation expense expected to be recognized | 2 years 9 months 18 days | |||||
Fair value assumptions, expected term | 3 years | |||||
Fair value assumptions, risk free interest rate | 0.35% | |||||
Fair value assumptions, volatility rate, minimum | 87.00% |
STOCK-BASED COMPENSATION (Restr
STOCK-BASED COMPENSATION (Restricted Stock Award and Unit Activity) (Details) - $ / shares | 4 Months Ended | 5 Months Ended |
Sep. 30, 2021 | May 17, 2021 | |
Restricted Stock Units | ||
Number of Unvested Restricted Shares | ||
Beginning balance (in shares) | 0 | 1,702,513 |
Granted (in shares) | 198,755 | 0 |
Vested (in shares) | 0 | (227,132) |
Forfeited/canceled (in shares) | 0 | (1,475,381) |
Ending balance (in shares) | 198,755 | 0 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in usd per share) | $ 0 | $ 4.74 |
Granted (in usd per share) | 65.92 | 0 |
Vested (in usd per share) | 0 | 8.45 |
Forfeited/canceled (in usd per share) | 0 | 4.16 |
Ending balance (in usd per share) | $ 65.92 | $ 0 |
Performance Stock Units | ||
Number of Unvested Restricted Shares | ||
Beginning balance (in shares) | 0 | 840,595 |
Granted (in shares) | 141,697 | 0 |
Vested (in shares) | 0 | 0 |
Forfeited/canceled (in shares) | 0 | (840,595) |
Ending balance (in shares) | 141,697 | 0 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in usd per share) | $ 0 | $ 4.07 |
Granted (in usd per share) | 47.67 | 0 |
Vested (in usd per share) | 0 | 0 |
Forfeited/canceled (in usd per share) | 0 | 4.07 |
Ending balance (in usd per share) | $ 47.67 | $ 0 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | ||||
Jun. 30, 2021 | May 17, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Basic | ||||||||||
Net (loss) income | $ (209,586) | $ 242,214 | $ (461,313) | $ 8,780 | $ (380,963) | $ (561,068) | $ (517,538) | $ (670,898) | $ 250,996 | $ (1,459,569) |
Dividends on New Preferred Stock | (2,095) | 0 | (3,126) | 0 | 0 | |||||
Participating securities - New Preferred Stock | 0 | 0 | 0 | 0 | 0 | |||||
Net (loss) income attributable to common stockholders, basic | (463,408) | (380,963) | (674,024) | 250,996 | (1,459,569) | |||||
Net (loss) income attributable to common stockholders, diluted | $ (463,408) | $ (380,963) | $ (674,024) | $ 250,996 | $ (1,459,569) | |||||
Basic Shares (in shares) | 20,598,000 | 160,683,000 | 20,507,000 | 160,834,000 | 160,053,000 | |||||
Basic EPS (in usd per share) | $ (22.50) | $ (2.37) | $ (32.87) | $ 1.56 | $ (9.12) | |||||
Dilutive EPS (in usd per share) | $ (22.50) | $ (2.37) | $ (32.87) | $ 1.56 | $ (9.12) | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Anti-dilutive shares (in shares) | 0 | 0 | 0 | |||||||
Series A Convertible Preferred Stock | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Anti-dilutive shares (in shares) | 4,100,000 | |||||||||
Restricted Stock | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Anti-dilutive shares (in shares) | 100,000 | 100,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Schedule of Firm Transportation Contracts) (Details) - Transportation Commitment $ in Thousands | Sep. 30, 2021USD ($) |
Other Commitments [Line Items] | |
Remaining 2021 | $ 61,609 |
2022 | 224,537 |
2023 | 222,730 |
2024 | 215,865 |
2025 | 137,116 |
Thereafter | 977,616 |
Total | $ 1,839,473 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Schedule of Firm Sales Contracted with Third Parties) (Details) MMBTU in Thousands | Sep. 30, 2021MMBTU |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2021 (MMBtu per day) | 16 |
2022 (MMBtu per day) | 4 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) $ in Thousands | Oct. 01, 2021USD ($) | Sep. 22, 2021USD ($) | May 17, 2021USD ($) | Aug. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021claim |
Commitments And Contingencies [Line Items] | ||||||||
Loss contingency, damages sought | $ 5,800 | |||||||
Number of claims filed | claim | 2 | |||||||
Loss contingency, damages sought, percentages of unpaid overtime compensation | 6.00% | |||||||
Subsequent Event | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Damages awarded | $ 700 | |||||||
Stingray Pressure Pumping LLC v. Gulfport Energy Corporation | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Loss contingency, damages sought | $ 80,000 | |||||||
Muskie v. Company | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Loss contingency, damages sought | $ 3,400 | |||||||
Damages awarded | $ 3,100 | |||||||
TC Energy Corporation and Rover Pipeline LLC v. Gulfport Energy Corporation | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Litigation amount settlement | $ 43,800 | |||||||
Loss contingency, damages sought | $ 40,000 |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of Derivative Instruments) (Details) | 9 Months Ended |
Sep. 30, 2021MMBTU$ / bbl$ / MMBTUbbl | |
NYMEX Henry Hub - Remaining 2021 | |
Derivative [Line Items] | |
Daily volume (in MMBtu) | 198,000 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 2.85 |
NYMEX Henry Hub - 2022 | |
Derivative [Line Items] | |
Daily volume (in MMBtu) | 140,740 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 2.88 |
NYMEX Henry Hub - 2022 | Short | Call Option | |
Derivative [Line Items] | |
Daily volume (in MMBtu) | 152,675 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 2.90 |
NYMEX Henry Hub - 2023 | |
Derivative [Line Items] | |
Daily volume (in MMBtu) | 34,932 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 3.24 |
NYMEX Henry Hub - 2023 | Short | Call Option | |
Derivative [Line Items] | |
Daily volume (in MMBtu) | 627,675 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 2.90 |
NYMEX WTI - Remaining 2021 | |
Derivative [Line Items] | |
Daily Volume (Bbl/d) | bbl | 3,000 |
Weighted average price (in usd per MMBtu or Bbl) | $ / bbl | 57.67 |
NYMEX WTI - 2022 | |
Derivative [Line Items] | |
Daily Volume (Bbl/d) | bbl | 2,104 |
Weighted average price (in usd per MMBtu or Bbl) | $ / bbl | 66.23 |
Mont Belvieu C3 - Remaining 2021 | |
Derivative [Line Items] | |
Daily Volume (Bbl/d) | bbl | 3,100 |
Weighted average price (in usd per MMBtu or Bbl) | $ / bbl | 27.80 |
Mont Belvieu C3 - 2022 | |
Derivative [Line Items] | |
Daily Volume (Bbl/d) | bbl | 3,378 |
Weighted average price (in usd per MMBtu or Bbl) | $ / bbl | 35.09 |
NYMEX Henry Hub - Remaining 2021 Index1 | |
Derivative [Line Items] | |
Daily volume (in MMBtu) | 610,000 |
Weighted average floor price (in usd per MMBtu) | $ / MMBTU | 2.59 |
Weighted average ceiling price (in usd per MMBtu) | $ / bbl | 3.02 |
NYMEX Henry Hub Index 1 | |
Derivative [Line Items] | |
Daily volume (in MMBtu) | 406,747 |
Weighted average floor price (in usd per MMBtu) | $ / MMBTU | 2.58 |
Weighted average ceiling price (in usd per MMBtu) | $ / bbl | 2.91 |
NYMEX WTI 2022 Index 1 | |
Derivative [Line Items] | |
Daily volume (in MMBtu) | 1,500 |
Weighted average floor price (in usd per MMBtu) | $ / MMBTU | 55 |
Weighted average ceiling price (in usd per MMBtu) | $ / bbl | 60 |
Basis Swap, Rex Zone 3 - Remaining 2021 | |
Derivative [Line Items] | |
Daily volume (in MMBtu) | 83,152 |
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | (0.12) |
Basis Swap, Rex Zone 3 - 2022 | |
Derivative [Line Items] | |
Daily volume (in MMBtu) | 24,658 |
Weighted average price (in usd per MMBtu or Bbl) | $ / bbl | (0.10) |
DERIVATIVE INSTRUMENTS (Narrati
DERIVATIVE INSTRUMENTS (Narrative) (Details) | Sep. 30, 2021$ / MMBTU |
NYMEX | |
Derivative [Line Items] | |
Weighted average price (in usd per MMBtu or Bbl) | 2.90 |
DERIVATIVE INSTRUMENTS (Derivat
DERIVATIVE INSTRUMENTS (Derivative Instruments in Financial Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | |||
Short-term derivative asset | $ 2,142 | $ 3,465 | $ 27,146 |
Long-term derivative asset | 961 | 8,183 | 322 |
Short-term derivative liability | (560,722) | (98,900) | (11,641) |
Long-term derivative liability | (272,935) | $ (80,742) | (36,604) |
Commodity Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Short-term derivative asset | 2,142 | 27,146 | |
Long-term derivative asset | 961 | 322 | |
Short-term derivative liability | (560,722) | (11,641) | |
Long-term derivative liability | (272,935) | (36,604) | |
Total net (liability) asset derivative position | $ (830,554) | $ (20,777) |
DERIVATIVE INSTRUMENTS (Gain an
DERIVATIVE INSTRUMENTS (Gain and Loss on Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | |||||
Net (loss) gain on derivative instruments | $ (622,476) | $ (53,823) | $ (762,134) | $ (137,239) | $ 71,414 |
Total losses on natural gas derivatives | |||||
Derivative [Line Items] | |||||
Fair value (losses) gains | (517,799) | (84,390) | (638,063) | (123,080) | (147,661) |
Settlement (losses) gains | (82,566) | 31,742 | (89,255) | (3,362) | 176,555 |
Net (loss) gain on derivative instruments | (600,365) | (52,648) | (727,318) | (126,442) | 28,894 |
Total losses on oil and condensate derivatives | |||||
Derivative [Line Items] | |||||
Fair value (losses) gains | (1,590) | 723 | (6,947) | (6,126) | (4,289) |
Settlement (losses) gains | (4,336) | (1,505) | (4,336) | 0 | 48,444 |
Net (loss) gain on derivative instruments | (5,926) | (782) | (11,283) | (6,126) | 44,155 |
Total losses on NGL derivatives | |||||
Derivative [Line Items] | |||||
Fair value (losses) gains | (10,201) | (288) | (17,549) | (4,671) | (620) |
Settlement (losses) gains | (5,984) | (105) | (5,984) | 0 | 366 |
Net (loss) gain on derivative instruments | $ (16,185) | $ (393) | (23,533) | (4,671) | (254) |
Contingent consideration arrangement - fair value losses | |||||
Derivative [Line Items] | |||||
Net (loss) gain on derivative instruments | $ 0 | $ 0 | $ (1,381) |
DERIVATIVE INSTRUMENTS (Sched_2
DERIVATIVE INSTRUMENTS (Schedule of Offsetting) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||
Derivative asset, gross asset | $ 3,103 | $ 27,468 |
Derivative asset, netting adjustment | (3,103) | (25,730) |
Derivative asset, net | 0 | 1,738 |
Derivative liability, gross liability | (833,657) | (48,245) |
Derivative liability, netting adjustment | 3,103 | 25,730 |
Derivative liability, net | $ (830,554) | $ (22,515) |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets and Liabilities Valuation Level) (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Assets: | |||||
Contingent consideration arrangement | $ 5,300 | $ 5,300 | |||
Liabilities: | |||||
Contingent consideration, gain (loss) due to change in value | 1,200 | $ 200 | 100 | $ 3,100 | |
Level 1 | |||||
Assets: | |||||
Derivative Instruments | 0 | 0 | $ 0 | ||
Contingent consideration arrangement | 0 | 0 | 0 | ||
Total assets | 0 | 0 | 0 | ||
Liabilities: | |||||
Derivative Instruments | 0 | 0 | 0 | ||
Level 2 | |||||
Assets: | |||||
Derivative Instruments | 3,103 | 3,103 | 27,468 | ||
Contingent consideration arrangement | 0 | 0 | 0 | ||
Total assets | 3,103 | 3,103 | 27,468 | ||
Liabilities: | |||||
Derivative Instruments | 833,657 | 833,657 | 48,245 | ||
Level 3 | |||||
Assets: | |||||
Derivative Instruments | 0 | 0 | 0 | ||
Contingent consideration arrangement | 5,300 | 5,300 | 6,200 | ||
Total assets | 5,300 | 5,300 | 6,200 | ||
Liabilities: | |||||
Derivative Instruments | $ 0 | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration arrangement | $ 5,300 | $ 5,300 | ||||
Contingent consideration, gain (loss) due to change in value | (1,200) | $ (200) | (100) | $ (3,100) | ||
Contingent consideration, settlements | 600 | $ 200 | $ 300 | |||
Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration arrangement | 5,300 | 5,300 | $ 6,200 | |||
Prepaid Expenses and Other Current Assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration arrangement | 800 | 800 | ||||
Other Noncurrent Assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration arrangement | $ 4,500 | $ 4,500 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | May 17, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Performance obligation period | However, settlement statements for certain sales may be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production that was delivered to the purchaser and the price that will be received for the sale of the product | ||
Receivables from customers | $ 185,941 | $ 180,711 | $ 119,879 |
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Performance obligation period | The payment date is usually within 30 days of the end of the calendar month in which the commodity is delivered |
EQUITY INVESTMENTS (Investments
EQUITY INVESTMENTS (Investments Accounted for by the Equity Method) (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Carrying value | $ 0 | $ 0 | $ 0 | $ 24,816,000 | |||
Loss from equity method investments | $ 0 | $ (153,000) | $ 0 | (342,000) | $ (10,987,000) | ||
Investment in Grizzly Oil Sands ULC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Carrying value | 0 | 24,816,000 | |||||
Loss from equity method investments | (153,000) | (342,000) | (341,000) | ||||
Investment in Mammoth Energy | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Carrying value | $ 0 | $ 0 | |||||
Loss from equity method investments | $ 0 | $ 0 | $ (10,646,000) |
EQUITY INVESTMENTS (Narrative)
EQUITY INVESTMENTS (Narrative) (Details) a in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)a | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | May 17, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity investments | $ 0 | $ 0 | $ 24,816,000 | ||||
Investment in Grizzly Oil Sands ULC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity investment, ownership interest | 24.50% | ||||||
Amount of cash paid for equity investments | $ 0 | ||||||
Increase (decrease) due to foreign currency translation adjustment | $ 3,700,000 | $ (4,100,000) | |||||
Equity investments | $ 0 | 24,816,000 | |||||
Investment in Mammoth Energy | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity investments | $ 0 | $ 0 | |||||
Athabasca, Peace River And Cold Lake Oil Sands Regions | Investment in Grizzly Oil Sands ULC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Gas and oil area, reserve (in acres) | a | 830 |
RESTRUCTURING AND LIABILITY M_3
RESTRUCTURING AND LIABILITY MANAGEMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |||||
Workforce reduction | 3.00% | 3.00% | |||
Reduction in workforce | $ 2,858 | $ 1,460 | $ 2,858 | $ 0 | $ 1,460 |
Liability management | 0 | 7,524 | 0 | 0 | 8,141 |
Total restructuring and liability management | $ 2,858 | $ 8,984 | $ 2,858 | $ 0 | $ 9,601 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | Sep. 30, 2021 |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 10 months 20 days |
Weighted-average discount rate - operating leases | 3.98% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 5 years |
LEASES (Maturities of Lease Lia
LEASES (Maturities of Lease Liabilities) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
Remaining 2021 | $ 10 |
2022 | 25 |
Total lease payments | 35 |
Less: Imputed interest | (1) |
Total | $ 34 |
LEASES (Lease Cost) (Details)
LEASES (Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | |||||
Operating lease cost | $ 10 | $ 1,692 | $ 18 | $ 41 | $ 7,970 |
Variable lease cost | 0 | 245 | 0 | 0 | 705 |
Short-term lease cost | 2,873 | 2,259 | 5,033 | 4,496 | 7,698 |
Total lease cost | $ 2,883 | $ 4,196 | $ 5,051 | $ 4,537 | $ 16,373 |
LEASES (Other Information) (Det
LEASES (Other Information) (Details) - USD ($) $ in Thousands | 4 Months Ended | 5 Months Ended | 9 Months Ended |
Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 46 | $ 48 | $ 109 |
Investing cash flow from operating leases | 0 | 0 | 9,786 |
Investing cash flow from operating leases—related party | $ 0 | $ 0 | $ 6,800 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | May 17, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||||
Reorganization, chapter 11 bankruptcy proceedings, the estimated in equity values of CODI | $ 708,800,000 | |||||
Effective tax rate | 0.00% | (3.40%) | 0.01% | 0.50% | ||
Income tax expense (benefit) | $ 650,000 | $ 0 | $ 650,000 | $ (7,968,000) | $ 700,000 | $ 7,290,000 |
Federal | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Net operating loss carryforward | $ 1,200,000,000 | $ 1,200,000,000 | $ 1,200,000,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Oct. 25, 2021MMBTU$ / MMBTU | Oct. 14, 2021USD ($) | Sep. 30, 2021MMBTU | Nov. 01, 2021USD ($) |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Authorized stock repurchase amount | $ 100,000,000 | |||
Revolving Credit Facility | New Credit Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Aggregate maximum principal amount | $ 1,500,000,000 | |||
Initial borrowing base amount | 850,000,000 | |||
Line of credit facility, commitment fee amount | $ 700,000,000 | |||
Debt instrument net funded leverage ratio | 325.00% | |||
Debt instrument current ratio | 100.00% | |||
Unused capacity, commitment fee percentage | 0.50% | |||
Revolving Credit Facility | New Credit Facility | Subsequent Event | LIBOR | Minimum | ||||
Subsequent Event [Line Items] | ||||
Variable interest rate | 2.75% | |||
Revolving Credit Facility | New Credit Facility | Subsequent Event | LIBOR | Maximum | ||||
Subsequent Event [Line Items] | ||||
Variable interest rate | 3.75% | |||
Revolving Credit Facility | New Credit Facility | Subsequent Event | Base Rate | Minimum | ||||
Subsequent Event [Line Items] | ||||
Variable interest rate | 1.75% | |||
Revolving Credit Facility | New Credit Facility | Subsequent Event | Base Rate | Maximum | ||||
Subsequent Event [Line Items] | ||||
Variable interest rate | 2.75% | |||
Letter of Credit | New Credit Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Aggregate maximum principal amount | $ 175,000,000 | |||
ONG Minus Inside FERC 1 | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Daily volume (in MMBtu) | MMBTU | 20,000 | |||
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 0.50 | |||
ONG Minus Inside FERC 2 | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Daily volume (in MMBtu) | MMBTU | 20,000 | |||
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 0.50 | |||
NYMEX Henry Hub Index 1 | ||||
Subsequent Event [Line Items] | ||||
Daily volume (in MMBtu) | MMBTU | 406,747 | |||
NYMEX Henry Hub Index 1 | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Daily volume (in MMBtu) | MMBTU | 30,000 | |||
Weighted average price (in usd per MMBtu or Bbl) | $ / MMBTU | 3.58 |