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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Gulfport Energy Corporation | NASDAQ:GPOR | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.1383 | 0.1396 | 0.14 | 0 | 01:00:00 |
|
|
☒
|
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934
|
|
|
Delaware
|
73-1521290
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(IRS Employer Identification Number)
|
|
3001 Quail Springs Parkway
|
|
|
Oklahoma City,
|
Oklahoma
|
73134
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common stock, par value $0.01 per share
|
|
GPOR
|
|
Nasdaq Global Select Market
|
|
|
Page
|
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|
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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||
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Item 6.
|
||
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|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Unaudited)
|
|
|
||||
|
(In thousands, except share data)
|
||||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,633
|
|
|
$
|
6,060
|
|
Accounts receivable—oil and natural gas sales
|
74,099
|
|
|
121,210
|
|
||
Accounts receivable—joint interest and other
|
42,547
|
|
|
47,975
|
|
||
Prepaid expenses and other current assets
|
11,848
|
|
|
4,431
|
|
||
Short-term derivative instruments
|
171,755
|
|
|
126,201
|
|
||
Total current assets
|
301,882
|
|
|
305,877
|
|
||
Property and equipment:
|
|
|
|
||||
Oil and natural gas properties, full-cost accounting, $1,608,640 and $1,686,666 excluded from amortization in 2020 and 2019, respectively
|
10,667,532
|
|
|
10,595,735
|
|
||
Other property and equipment
|
96,882
|
|
|
96,719
|
|
||
Accumulated depletion, depreciation, amortization and impairment
|
(7,859,873
|
)
|
|
(7,228,660
|
)
|
||
Property and equipment, net
|
2,904,541
|
|
|
3,463,794
|
|
||
Other assets:
|
|
|
|
||||
Equity investments
|
6,225
|
|
|
32,044
|
|
||
Long-term derivative instruments
|
—
|
|
|
563
|
|
||
Deferred tax asset
|
—
|
|
|
7,563
|
|
||
Operating lease assets
|
10,186
|
|
|
14,168
|
|
||
Operating lease assets—related parties
|
—
|
|
|
43,270
|
|
||
Other assets
|
41,453
|
|
|
15,540
|
|
||
Total other assets
|
57,864
|
|
|
113,148
|
|
||
Total assets
|
$
|
3,264,287
|
|
|
$
|
3,882,819
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
437,453
|
|
|
$
|
415,218
|
|
Short-term derivative instruments
|
67
|
|
|
303
|
|
||
Current portion of operating lease liabilities
|
9,873
|
|
|
13,826
|
|
||
Current portion of operating lease liabilities—related parties
|
—
|
|
|
21,220
|
|
||
Current maturities of long-term debt
|
688
|
|
|
631
|
|
||
Total current liabilities
|
448,081
|
|
|
451,198
|
|
||
Long-term derivative instruments
|
70,829
|
|
|
53,135
|
|
||
Asset retirement obligation
|
59,444
|
|
|
60,355
|
|
||
Uncertain tax position liability
|
3,209
|
|
|
3,127
|
|
||
Non-current operating lease liabilities
|
313
|
|
|
342
|
|
||
Non-current operating lease liabilities—related parties
|
—
|
|
|
22,050
|
|
||
Long-term debt, net of current maturities
|
1,898,362
|
|
|
1,978,020
|
|
||
Total liabilities
|
2,480,238
|
|
|
2,568,227
|
|
||
Commitments and contingencies (Note 9)
|
|
|
|
||||
Preferred stock, $0.01 par value; 5,000,000 shares authorized (30,000 authorized as redeemable 12% cumulative preferred stock, Series A), and none issued and outstanding
|
—
|
|
|
—
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Common stock - $.01 par value, 200,000,000 shares authorized, 159,841,930 issued and outstanding at March 31, 2020 and 159,710,955 at December 31, 2019
|
1,598
|
|
|
1,597
|
|
||
Paid-in capital
|
4,209,578
|
|
|
4,207,554
|
|
||
Accumulated other comprehensive loss
|
(61,863
|
)
|
|
(46,833
|
)
|
||
Accumulated deficit
|
(3,365,264
|
)
|
|
(2,847,726
|
)
|
||
Total stockholders’ equity
|
784,049
|
|
|
1,314,592
|
|
||
Total liabilities and stockholders’ equity
|
$
|
3,264,287
|
|
|
$
|
3,882,819
|
|
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands, except share data)
|
||||||
Revenues:
|
|
|
|
||||
Natural gas sales
|
$
|
108,547
|
|
|
$
|
276,016
|
|
Oil and condensate sales
|
23,151
|
|
|
32,482
|
|
||
Natural gas liquid sales
|
16,913
|
|
|
32,125
|
|
||
Net gain (loss) on natural gas, oil and NGL derivatives
|
98,266
|
|
|
(20,045
|
)
|
||
|
246,877
|
|
|
320,578
|
|
||
Costs and expenses:
|
|
|
|
||||
Lease operating expenses
|
15,986
|
|
|
19,807
|
|
||
Production taxes
|
4,799
|
|
|
7,921
|
|
||
Midstream gathering and processing expenses
|
57,896
|
|
|
70,282
|
|
||
Depreciation, depletion and amortization
|
78,028
|
|
|
118,433
|
|
||
Impairment of oil and natural gas properties
|
553,345
|
|
|
—
|
|
||
General and administrative expenses
|
16,169
|
|
|
10,057
|
|
||
Accretion expense
|
741
|
|
|
1,067
|
|
||
|
726,964
|
|
|
227,567
|
|
||
(LOSS) INCOME FROM OPERATIONS
|
(480,087
|
)
|
|
93,011
|
|
||
OTHER EXPENSE (INCOME):
|
|
|
|
||||
Interest expense
|
32,990
|
|
|
35,621
|
|
||
Interest income
|
(152
|
)
|
|
(152
|
)
|
||
Gain on debt extinguishment
|
(15,322
|
)
|
|
—
|
|
||
Loss (income) from equity method investments, net
|
10,789
|
|
|
(4,273
|
)
|
||
Other expense (income)
|
1,856
|
|
|
(427
|
)
|
||
|
30,161
|
|
|
30,769
|
|
||
(LOSS) INCOME BEFORE INCOME TAXES
|
(510,248
|
)
|
|
62,242
|
|
||
INCOME TAX EXPENSE
|
7,290
|
|
|
—
|
|
||
NET (LOSS) INCOME
|
$
|
(517,538
|
)
|
|
$
|
62,242
|
|
NET (LOSS) INCOME PER COMMON SHARE:
|
|
|
|
||||
Basic
|
$
|
(3.24
|
)
|
|
$
|
0.38
|
|
Diluted
|
$
|
(3.24
|
)
|
|
$
|
0.38
|
|
Weighted average common shares outstanding—Basic
|
159,760,222
|
|
|
162,823,997
|
|
||
Weighted average common shares outstanding—Diluted
|
159,760,222
|
|
|
163,099,409
|
|
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Net (loss) income
|
$
|
(517,538
|
)
|
|
$
|
62,242
|
|
Foreign currency translation adjustment
|
(15,030
|
)
|
|
3,801
|
|
||
Other comprehensive (loss) income
|
(15,030
|
)
|
|
3,801
|
|
||
Comprehensive (loss) income
|
$
|
(532,568
|
)
|
|
$
|
66,043
|
|
|
|
|
|
|
Paid-in
Capital
|
|
Accumulated
Other
Comprehensive Loss
|
|
Accumulated
Deficit
|
|
Total
Stockholders’
Equity
|
|||||||||||
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||
Balance at January 1, 2020
|
159,711
|
|
|
$
|
1,597
|
|
|
$
|
4,207,554
|
|
|
$
|
(46,833
|
)
|
|
$
|
(2,847,726
|
)
|
|
$
|
1,314,592
|
|
Net Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(517,538
|
)
|
|
(517,538
|
)
|
|||||
Other Comprehensive Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,030
|
)
|
|
—
|
|
|
(15,030
|
)
|
|||||
Stock Compensation
|
—
|
|
|
—
|
|
|
2,104
|
|
|
—
|
|
|
—
|
|
|
2,104
|
|
|||||
Shares Repurchased
|
(80
|
)
|
|
(1
|
)
|
|
(78
|
)
|
|
—
|
|
|
—
|
|
|
(79
|
)
|
|||||
Issuance of Restricted Stock
|
211
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance at March 31, 2020
|
159,842
|
|
|
$
|
1,598
|
|
|
$
|
4,209,578
|
|
|
$
|
(61,863
|
)
|
|
$
|
(3,365,264
|
)
|
|
$
|
784,049
|
|
|
|
|
|
|
Paid-in
Capital
|
|
Accumulated
Other
Comprehensive (Loss) Income
|
|
Accumulated
Deficit
|
|
Total
Stockholders’
Equity
|
|||||||||||
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||
Balance at January 1, 2019
|
162,986
|
|
|
$
|
1,630
|
|
|
$
|
4,227,532
|
|
|
$
|
(56,026
|
)
|
|
$
|
(845,368
|
)
|
|
$
|
3,327,768
|
|
Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62,242
|
|
|
62,242
|
|
|||||
Other Comprehensive Income
|
—
|
|
|
—
|
|
|
—
|
|
|
3,801
|
|
|
—
|
|
|
3,801
|
|
|||||
Stock Compensation
|
—
|
|
|
—
|
|
|
2,785
|
|
|
—
|
|
|
—
|
|
|
2,785
|
|
|||||
Shares Repurchased
|
(3,619
|
)
|
|
(37
|
)
|
|
(28,293
|
)
|
|
—
|
|
|
—
|
|
|
(28,330
|
)
|
|||||
Issuance of Restricted Stock
|
55
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance at March 31, 2019
|
159,422
|
|
|
$
|
1,594
|
|
|
$
|
4,202,023
|
|
|
$
|
(52,225
|
)
|
|
$
|
(783,126
|
)
|
|
$
|
3,368,266
|
|
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net (loss) income
|
$
|
(517,538
|
)
|
|
$
|
62,242
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
||||
Depletion, depreciation and amortization
|
78,028
|
|
|
118,433
|
|
||
Impairment of oil and natural gas properties
|
553,345
|
|
|
—
|
|
||
Loss (income) from equity investments
|
10,789
|
|
|
(4,132
|
)
|
||
Gain on debt extinguishment
|
(15,322
|
)
|
|
—
|
|
||
Net (gain) loss on derivative instruments
|
(98,266
|
)
|
|
20,045
|
|
||
Cash receipts (payments) on settled derivative instruments
|
70,733
|
|
|
(24,836
|
)
|
||
Deferred income tax expense
|
7,290
|
|
|
—
|
|
||
Other, net
|
3,223
|
|
|
5,508
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Decrease in accounts receivable—oil and natural gas sales
|
47,111
|
|
|
65,204
|
|
||
Decrease (increase) in accounts receivable—joint interest and other
|
6,001
|
|
|
(2,083
|
)
|
||
(Decrease) increase in accounts payable and accrued liabilities
|
(7,637
|
)
|
|
1,366
|
|
||
Other, net
|
(6,919
|
)
|
|
(1,982
|
)
|
||
Net cash provided by operating activities
|
130,838
|
|
|
239,765
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Additions to oil and natural gas properties
|
(113,744
|
)
|
|
(241,391
|
)
|
||
Proceeds from sale of oil and natural gas properties
|
44,383
|
|
|
52
|
|
||
Additions to other property and equipment
|
(539
|
)
|
|
(3,848
|
)
|
||
Proceeds from sale of other property and equipment
|
91
|
|
|
56
|
|
||
Contributions to equity method investments
|
—
|
|
|
(432
|
)
|
||
Net cash used in investing activities
|
(69,809
|
)
|
|
(245,563
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Principal payments on borrowings
|
(180,106
|
)
|
|
(150,151
|
)
|
||
Borrowings on line of credit
|
125,000
|
|
|
150,000
|
|
||
Repurchases of senior notes
|
(10,204
|
)
|
|
—
|
|
||
Payments for repurchases of stock under approved stock repurchase program
|
—
|
|
|
(28,212
|
)
|
||
Other, net
|
(146
|
)
|
|
(140
|
)
|
||
Net cash used in financing activities
|
(65,456
|
)
|
|
(28,503
|
)
|
||
Net decrease in cash, cash equivalents and restricted cash
|
(4,427
|
)
|
|
(34,301
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
6,060
|
|
|
52,297
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
1,633
|
|
|
$
|
17,996
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Interest payments
|
$
|
14,034
|
|
|
$
|
15,266
|
|
Income tax receipts
|
$
|
—
|
|
|
$
|
(1,794
|
)
|
Supplemental disclosure of non-cash transactions:
|
|
|
|
||||
Capitalized stock-based compensation
|
$
|
934
|
|
|
$
|
1,114
|
|
Asset retirement obligation capitalized
|
$
|
381
|
|
|
$
|
1,952
|
|
Asset retirement obligation removed due to divestiture
|
$
|
(2,033
|
)
|
|
$
|
—
|
|
Interest capitalized
|
$
|
187
|
|
|
$
|
766
|
|
Fair value of contingent consideration asset on date of divestiture
|
$
|
23,090
|
|
|
$
|
—
|
|
Foreign currency translation (loss) gain on equity method investments
|
$
|
(15,030
|
)
|
|
$
|
3,801
|
|
1.
|
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
2.
|
PROPERTY AND EQUIPMENT
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(In thousands)
|
||||||
Oil and natural gas properties
|
$
|
10,667,532
|
|
|
$
|
10,595,735
|
|
Accumulated DD&A and impairment
|
(7,820,662
|
)
|
|
(7,191,957
|
)
|
||
Oil and natural gas properties, net
|
2,846,870
|
|
|
3,403,778
|
|
||
Other depreciable property and equipment
|
91,361
|
|
|
91,198
|
|
||
Land
|
5,521
|
|
|
5,521
|
|
||
Accumulated DD&A
|
(39,211
|
)
|
|
(36,703
|
)
|
||
Other property and equipment, net
|
57,671
|
|
|
60,016
|
|
||
Property and equipment, net
|
$
|
2,904,541
|
|
|
$
|
3,463,794
|
|
|
March 31, 2020
|
||
|
(In thousands)
|
||
Utica
|
$
|
908,481
|
|
MidContinent
|
697,909
|
|
|
Other
|
2,250
|
|
|
|
$
|
1,608,640
|
|
|
March 31, 2020
|
|
March 31, 2019
|
||||
|
(In thousands)
|
||||||
Asset retirement obligation, beginning of period
|
$
|
60,355
|
|
|
$
|
79,952
|
|
Liabilities incurred
|
381
|
|
|
969
|
|
||
Liabilities settled
|
—
|
|
|
(71
|
)
|
||
Liabilities removed due to divestitures
|
(2,033
|
)
|
|
—
|
|
||
Accretion expense
|
741
|
|
|
1,067
|
|
||
Revisions in estimated cash flows
|
—
|
|
|
983
|
|
||
Asset retirement obligation as of end of period
|
59,444
|
|
|
82,900
|
|
3.
|
DIVESTITURES
|
4.
|
EQUITY INVESTMENTS
|
|
|
|
Carrying value
|
|
(Loss) income from equity method investments
|
|||||||||||||
|
Approximate ownership %
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Three months ended March 31,
|
|||||||||||
|
|
|
|
2020
|
|
2019
|
||||||||||||
|
|
|
(In thousands)
|
|||||||||||||||
Investment in Grizzly Oil Sands ULC
|
24.9
|
%
|
|
$
|
6,186
|
|
|
$
|
21,000
|
|
|
$
|
(143
|
)
|
|
$
|
(393
|
)
|
Investment in Mammoth Energy Services, Inc.
|
21.5
|
%
|
|
—
|
|
|
11,005
|
|
|
(10,646
|
)
|
|
4,526
|
|
||||
Investment in Windsor Midstream LLC
|
22.5
|
%
|
|
39
|
|
|
39
|
|
|
—
|
|
|
—
|
|
||||
Investment in Tatex Thailand II, LLC
|
23.5
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
||||
|
|
|
$
|
6,225
|
|
|
$
|
32,044
|
|
|
$
|
(10,789
|
)
|
|
$
|
4,273
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
|
||||||
|
(In thousands)
|
||||||
Current assets
|
$
|
440,801
|
|
|
$
|
421,326
|
|
Noncurrent assets
|
$
|
1,104,297
|
|
|
$
|
1,260,075
|
|
Current liabilities
|
$
|
131,175
|
|
|
$
|
132,569
|
|
Noncurrent liabilities
|
$
|
171,132
|
|
|
$
|
163,241
|
|
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Gross revenue
|
$
|
97,383
|
|
|
$
|
264,844
|
|
Net (loss) income
|
$
|
(85,031
|
)
|
|
$
|
24,756
|
|
5.
|
LONG-TERM DEBT
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(In thousands)
|
||||||
Revolving credit agreement(1)
|
$
|
65,000
|
|
|
$
|
120,000
|
|
6.625% senior unsecured notes due 2023
|
329,467
|
|
|
329,467
|
|
||
6.000% senior unsecured notes due 2024
|
595,903
|
|
|
603,428
|
|
||
6.375% senior unsecured notes due 2025
|
521,360
|
|
|
529,525
|
|
||
6.375% senior unsecured notes due 2026
|
387,367
|
|
|
397,529
|
|
||
Net unamortized debt issuance costs(2)
|
(22,395
|
)
|
|
(23,751
|
)
|
||
Construction loan
|
22,348
|
|
|
22,453
|
|
||
Less: current maturities of long term debt
|
(688
|
)
|
|
(631
|
)
|
||
Debt reflected as long term
|
$
|
1,898,362
|
|
|
$
|
1,978,020
|
|
6.
|
CHANGES IN CAPITALIZATION
|
7.
|
STOCK-BASED COMPENSATION
|
|
Number of
Unvested
Restricted Stock Units
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Number of
Unvested
Performance Vesting Restricted Stock Units
|
|
Weighted
Average
Grant Date
Fair Value
|
||||||
Unvested shares as of January 1, 2020
|
4,098,318
|
|
|
$
|
4.73
|
|
|
1,783,660
|
|
|
$
|
2.96
|
|
Granted
|
1,985,452
|
|
|
0.67
|
|
|
—
|
|
|
—
|
|
||
Vested
|
(211,090
|
)
|
|
8.65
|
|
|
—
|
|
|
—
|
|
||
Forfeited
|
(344,112
|
)
|
|
5.00
|
|
|
(225,484
|
)
|
|
1.98
|
|
||
Unvested shares as of March 31, 2020
|
5,528,568
|
|
|
$
|
3.17
|
|
|
1,558,176
|
|
|
$
|
3.11
|
|
8.
|
EARNINGS PER SHARE
|
|
Three months ended March 31,
|
||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||
|
Loss
|
|
Shares
|
|
Per
Share
|
|
Income
|
|
Shares
|
|
Per
Share
|
||||||||||
|
(In thousands, except share data)
|
||||||||||||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income
|
$
|
(517,538
|
)
|
|
159,760,222
|
|
|
$
|
(3.24
|
)
|
|
$
|
62,242
|
|
|
162,823,997
|
|
|
$
|
0.38
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock awards
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
275,412
|
|
|
|
||||||
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income
|
$
|
(517,538
|
)
|
|
159,760,222
|
|
|
$
|
(3.24
|
)
|
|
$
|
62,242
|
|
|
163,099,409
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.
|
COMMITMENTS AND CONTINGENCIES
|
|
Total MMBtu
|
|
(In thousands)
|
|||
Remaining 2020
|
395,625,000
|
|
|
$
|
206,292
|
|
2021
|
531,075,000
|
|
|
285,789
|
|
|
2022
|
531,075,000
|
|
|
286,626
|
|
|
2023
|
515,867,000
|
|
|
282,945
|
|
|
2024
|
489,525,000
|
|
|
265,568
|
|
|
Thereafter
|
3,769,092,000
|
|
|
2,160,732
|
|
|
Total
|
6,232,259,000
|
|
|
$
|
3,487,952
|
|
10.
|
DERIVATIVE INSTRUMENTS
|
|
Location
|
Daily Volume (MMBtu/day)
|
|
Weighted
Average Price |
|||
Remaining 2020
|
NYMEX Henry Hub
|
432,000
|
|
|
$
|
2.92
|
|
|
Location
|
Daily Volume
(Bbls/day) |
|
Weighted
Average Price |
|||
Remaining 2020
|
NYMEX WTI
|
6,000
|
|
|
$
|
59.83
|
|
|
Location
|
Daily Volume
(Bbls/day) |
|
Weighted
Average Price |
|||
Remaining 2020
|
Mont Belvieu C3
|
500
|
|
|
$
|
21.63
|
|
|
Location
|
Daily Volume (MMBtu/day)
|
|
Weighted Average Price
|
|||
2022
|
NYMEX Henry Hub
|
628,000
|
|
|
$
|
2.90
|
|
2023
|
NYMEX Henry Hub
|
628,000
|
|
|
$
|
2.90
|
|
|
Gulfport Pays
|
Gulfport Receives
|
Daily Volume (MMBtu/day)
|
|
Weighted Average Fixed Spread
|
|||
Remaining 2020
|
Transco Zone 4
|
NYMEX Plus Fixed Spread
|
60,000
|
|
|
$
|
(0.05
|
)
|
Remaining 2020
|
Fixed Spread
|
ONEOK Minus NYMEX
|
10,000
|
|
|
$
|
(0.54
|
)
|
Period
|
Threshold(1)
|
Payment to be received(2)
|
||
July 2020 - June 2021
|
Greater than or equal to $60.65
|
$
|
150,000
|
|
|
Between $52.62 - $60.65
|
Calculated Value(3)
|
|
|
|
Less than or equal to $52.62
|
$
|
—
|
|
(1)
|
Based on the "WTI NYMEX + Argus LLS Differential," as published by Argus Media.
|
|||
(2)
|
Payment will be assessed monthly from July 2020 through June 2021. If threshold is met, payment shall be received within five business days after the end of each calendar month.
|
|||
(3)
|
If average daily price, as defined in (1), is greater than $52.62 but less than $60.65, payment received will be $150,000 multiplied by a fraction, the numerator of which is the amount determined by subtracting $52.62 from such average daily price, and the denominator of which is $8.03.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(In thousands)
|
||||||
Commodity derivative instruments
|
$
|
171,755
|
|
|
$
|
125,383
|
|
Contingent consideration arrangement
|
—
|
|
|
818
|
|
||
Total short-term derivative instruments - asset
|
$
|
171,755
|
|
|
$
|
126,201
|
|
|
|
|
|
||||
Contingent consideration arrangement
|
—
|
|
|
563
|
|
||
Total long-term derivative instruments - asset
|
$
|
—
|
|
|
$
|
563
|
|
|
|
|
|
||||
Total short-term derivative instruments - liability
|
$
|
67
|
|
|
$
|
303
|
|
|
|
|
|
||||
Total long-term derivative instruments - liability
|
$
|
70,829
|
|
|
$
|
53,135
|
|
Total net asset derivative position
|
$
|
100,859
|
|
|
$
|
73,326
|
|
|
Net gain (loss) on derivative instruments
|
||||||
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Natural gas derivatives
|
$
|
45,853
|
|
|
$
|
(16,431
|
)
|
Oil derivatives
|
52,874
|
|
|
(454
|
)
|
||
NGL derivatives
|
920
|
|
|
(3,160
|
)
|
||
Contingent consideration arrangement
|
(1,381
|
)
|
|
—
|
|
||
Total
|
$
|
98,266
|
|
|
$
|
(20,045
|
)
|
|
As of March 31, 2020
|
||||||||||
|
Gross Assets (Liabilities)
|
|
Gross Amounts
|
|
|
||||||
|
Presented in the
|
|
Subject to Master
|
|
Net
|
||||||
|
Consolidated Balance Sheets
|
|
Netting Agreements
|
|
Amount
|
||||||
|
(In thousands)
|
||||||||||
Derivative assets
|
$
|
171,755
|
|
|
$
|
(70,896
|
)
|
|
$
|
100,859
|
|
Derivative liabilities
|
$
|
(70,896
|
)
|
|
$
|
70,896
|
|
|
$
|
—
|
|
|
As of December 31, 2019
|
||||||||||
|
Gross Assets (Liabilities)
|
|
Gross Amounts
|
|
|
||||||
|
Presented in the
|
|
Subject to Master
|
|
Net
|
||||||
|
Consolidated Balance Sheets
|
|
Netting Agreements
|
|
Amount
|
||||||
|
(In thousands)
|
||||||||||
Derivative assets
|
$
|
126,764
|
|
|
$
|
(53,438
|
)
|
|
$
|
73,326
|
|
Derivative liabilities
|
$
|
(53,438
|
)
|
|
$
|
53,438
|
|
|
$
|
—
|
|
11.
|
FAIR VALUE MEASUREMENTS
|
|
March 31, 2020
|
||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
|
(In thousands)
|
||||||||||
Assets:
|
|
|
|
|
|
||||||
Derivative Instruments
|
$
|
—
|
|
|
$
|
171,755
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
||||||
Derivative Instruments
|
$
|
—
|
|
|
$
|
70,896
|
|
|
$
|
—
|
|
|
December 31, 2019
|
||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
|
(In thousands)
|
||||||||||
Assets:
|
|
|
|
|
|
||||||
Derivative Instruments
|
$
|
—
|
|
|
$
|
126,764
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
||||||
Derivative Instruments
|
$
|
—
|
|
|
$
|
53,438
|
|
|
$
|
—
|
|
12.
|
REVENUE FROM CONTRACTS WITH CUSTOMERS
|
13.
|
LEASES
|
|
|
(In thousands)
|
||
Remaining 2020
|
|
$
|
9,920
|
|
2021
|
|
129
|
|
|
2022
|
|
115
|
|
|
2023
|
|
90
|
|
|
2024
|
|
30
|
|
|
Total lease payments
|
|
$
|
10,284
|
|
Less: Imputed interest
|
|
(98
|
)
|
|
Total
|
|
$
|
10,186
|
|
|
Three months ended March 31,
|
|
||||||
|
2020
|
|
2019
|
|
||||
|
(In thousands)
|
|
||||||
Operating lease cost
|
$
|
4,082
|
|
|
$
|
8,536
|
|
|
Operating lease cost—related party
|
—
|
|
|
5,610
|
|
|
||
Variable lease cost
|
224
|
|
|
429
|
|
|
||
Variable lease cost—related party
|
—
|
|
|
31,453
|
|
|
||
Short-term lease cost
|
2,810
|
|
|
—
|
|
|
||
Total lease cost(1)
|
$
|
7,116
|
|
|
$
|
46,028
|
|
|
(1)
|
The majority of the Company's total lease cost was capitalized to the full cost pool, and the remainder was included in general and administrative expenses in the accompanying consolidated statements of operations.
|
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash paid for amounts included in the measurement of lease liabilities
|
(In thousands)
|
||||||
Operating cash flows from operating leases
|
$
|
36
|
|
|
$
|
52
|
|
Investing cash flow from operating leases
|
$
|
3,997
|
|
|
$
|
4,858
|
|
Investing cash flow from operating leases—related party
|
$
|
6,800
|
|
|
$
|
6,545
|
|
14.
|
INCOME TAXES
|
15.
|
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
|
|
March 31, 2020
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
897
|
|
|
$
|
541
|
|
|
$
|
195
|
|
|
$
|
—
|
|
|
$
|
1,633
|
|
Accounts receivable - oil and natural gas sales
|
860
|
|
|
73,239
|
|
|
—
|
|
|
—
|
|
|
74,099
|
|
|||||
Accounts receivable - joint interest and other
|
8,521
|
|
|
34,026
|
|
|
—
|
|
|
—
|
|
|
42,547
|
|
|||||
Accounts receivable - intercompany
|
1,277,124
|
|
|
1,052,317
|
|
|
—
|
|
|
(2,329,441
|
)
|
|
—
|
|
|||||
Prepaid expenses and other current assets
|
11,452
|
|
|
320
|
|
|
76
|
|
|
—
|
|
|
11,848
|
|
|||||
Short-term derivative instruments
|
171,755
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
171,755
|
|
|||||
Total current assets
|
1,470,609
|
|
|
1,160,443
|
|
|
271
|
|
|
(2,329,441
|
)
|
|
301,882
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Property and equipment:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and natural gas properties, full-cost accounting
|
1,247,661
|
|
|
9,414,738
|
|
|
5,862
|
|
|
(729
|
)
|
|
10,667,532
|
|
|||||
Other property and equipment
|
92,812
|
|
|
51
|
|
|
4,019
|
|
|
—
|
|
|
96,882
|
|
|||||
Accumulated depletion, depreciation, amortization and impairment
|
(1,421,230
|
)
|
|
(6,436,959
|
)
|
|
(1,684
|
)
|
|
—
|
|
|
(7,859,873
|
)
|
|||||
Property and equipment, net
|
(80,757
|
)
|
|
2,977,830
|
|
|
8,197
|
|
|
(729
|
)
|
|
2,904,541
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity investments and investments in subsidiaries
|
2,486,108
|
|
|
6,332
|
|
|
6,186
|
|
|
(2,492,401
|
)
|
|
6,225
|
|
|||||
Operating lease assets
|
10,186
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,186
|
|
|||||
Other assets
|
32,591
|
|
|
8,863
|
|
|
(1
|
)
|
|
—
|
|
|
41,453
|
|
|||||
Total other assets
|
2,528,885
|
|
|
15,195
|
|
|
6,185
|
|
|
(2,492,401
|
)
|
|
57,864
|
|
|||||
Total assets
|
$
|
3,918,737
|
|
|
$
|
4,153,468
|
|
|
$
|
14,653
|
|
|
$
|
(4,822,571
|
)
|
|
$
|
3,264,287
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and accrued liabilities
|
$
|
63,863
|
|
|
$
|
373,554
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
437,453
|
|
Accounts payable - intercompany
|
1,087,484
|
|
|
1,237,368
|
|
|
4,589
|
|
|
(2,329,441
|
)
|
|
—
|
|
|||||
Short-term derivative instruments
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|||||
Current portion of operating lease liabilities
|
9,873
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,873
|
|
|||||
Current maturities of long-term debt
|
688
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
688
|
|
|||||
Total current liabilities
|
1,161,975
|
|
|
1,610,922
|
|
|
4,625
|
|
|
(2,329,441
|
)
|
|
448,081
|
|
|||||
Long-term derivative instruments
|
70,829
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70,829
|
|
|||||
Asset retirement obligation - long-term
|
—
|
|
|
59,444
|
|
|
—
|
|
|
—
|
|
|
59,444
|
|
|||||
Uncertain tax position liability
|
3,209
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,209
|
|
|||||
Non-current operating lease liabilities
|
313
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
313
|
|
|||||
Long-term debt, net of current maturities
|
1,898,362
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,898,362
|
|
|||||
Total liabilities
|
3,134,688
|
|
|
1,670,366
|
|
|
4,625
|
|
|
(2,329,441
|
)
|
|
2,480,238
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
1,598
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,598
|
|
|||||
Paid-in capital
|
4,209,578
|
|
|
4,171,409
|
|
|
267,558
|
|
|
(4,438,967
|
)
|
|
4,209,578
|
|
|||||
Accumulated other comprehensive loss
|
(61,863
|
)
|
|
—
|
|
|
(59,434
|
)
|
|
59,434
|
|
|
(61,863
|
)
|
|||||
Accumulated deficit
|
(3,365,264
|
)
|
|
(1,688,307
|
)
|
|
(198,096
|
)
|
|
1,886,403
|
|
|
(3,365,264
|
)
|
|||||
Total stockholders’ equity
|
784,049
|
|
|
2,483,102
|
|
|
10,028
|
|
|
(2,493,130
|
)
|
|
784,049
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
3,918,737
|
|
|
$
|
4,153,468
|
|
|
$
|
14,653
|
|
|
$
|
(4,822,571
|
)
|
|
$
|
3,264,287
|
|
|
December 31, 2019
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
2,768
|
|
|
$
|
3,097
|
|
|
$
|
195
|
|
|
$
|
—
|
|
|
$
|
6,060
|
|
Accounts receivable - oil and natural gas sales
|
859
|
|
|
120,351
|
|
|
—
|
|
|
—
|
|
|
121,210
|
|
|||||
Accounts receivable - joint interest and other
|
5,279
|
|
|
42,696
|
|
|
—
|
|
|
—
|
|
|
47,975
|
|
|||||
Accounts receivable - intercompany
|
1,065,593
|
|
|
843,223
|
|
|
—
|
|
|
(1,908,816
|
)
|
|
—
|
|
|||||
Prepaid expenses and other current assets
|
4,047
|
|
|
308
|
|
|
76
|
|
|
—
|
|
|
4,431
|
|
|||||
Short-term derivative instruments
|
126,201
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
126,201
|
|
|||||
Total current assets
|
1,204,747
|
|
|
1,009,675
|
|
|
271
|
|
|
(1,908,816
|
)
|
|
305,877
|
|
|||||
Property and equipment:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and natural gas properties, full-cost accounting,
|
1,314,933
|
|
|
9,273,681
|
|
|
7,850
|
|
|
(729
|
)
|
|
10,595,735
|
|
|||||
Other property and equipment
|
92,650
|
|
|
50
|
|
|
4,019
|
|
|
—
|
|
|
96,719
|
|
|||||
Accumulated depletion, depreciation, amortization and impairment
|
(1,418,888
|
)
|
|
(5,808,254
|
)
|
|
(1,518
|
)
|
|
—
|
|
|
(7,228,660
|
)
|
|||||
Property and equipment, net
|
(11,305
|
)
|
|
3,465,477
|
|
|
10,351
|
|
|
(729
|
)
|
|
3,463,794
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity investments and investments in subsidiaries
|
3,064,503
|
|
|
6,332
|
|
|
21,000
|
|
|
(3,059,791
|
)
|
|
32,044
|
|
|||||
Long-term derivative instruments
|
563
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
563
|
|
|||||
Deferred tax asset
|
7,563
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,563
|
|
|||||
Operating lease assets
|
14,168
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,168
|
|
|||||
Operating lease assets - related parties
|
43,270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,270
|
|
|||||
Other assets
|
10,026
|
|
|
5,514
|
|
|
—
|
|
|
—
|
|
|
15,540
|
|
|||||
Total other assets
|
3,140,093
|
|
|
11,846
|
|
|
21,000
|
|
|
(3,059,791
|
)
|
|
113,148
|
|
|||||
Total assets
|
$
|
4,333,535
|
|
|
$
|
4,486,998
|
|
|
$
|
31,622
|
|
|
$
|
(4,969,336
|
)
|
|
$
|
3,882,819
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and accrued liabilities
|
$
|
48,006
|
|
|
$
|
367,088
|
|
|
$
|
124
|
|
|
$
|
—
|
|
|
$
|
415,218
|
|
Accounts payable - intercompany
|
878,283
|
|
|
1,026,249
|
|
|
4,285
|
|
|
(1,908,817
|
)
|
|
—
|
|
|||||
Short-term derivative instruments
|
303
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
303
|
|
|||||
Current portion of operating lease liabilities
|
13,826
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,826
|
|
|||||
Current portion of operating lease liabilities - related parties
|
21,220
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,220
|
|
|||||
Current maturities of long-term debt
|
631
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
631
|
|
|||||
Total current liabilities
|
962,269
|
|
|
1,393,337
|
|
|
4,409
|
|
|
(1,908,817
|
)
|
|
451,198
|
|
|||||
Long-term derivative instruments
|
53,135
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,135
|
|
|||||
Asset retirement obligation - long-term
|
—
|
|
|
58,322
|
|
|
2,033
|
|
|
—
|
|
|
60,355
|
|
|||||
Uncertain tax position liability
|
3,127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,127
|
|
|||||
Non-current operating lease liabilities
|
342
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
342
|
|
|||||
Non-current operating lease liabilities - related parties
|
22,050
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,050
|
|
|||||
Long-term debt, net of current maturities
|
1,978,020
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,978,020
|
|
|||||
Total liabilities
|
3,018,943
|
|
|
1,451,659
|
|
|
6,442
|
|
|
(1,908,817
|
)
|
|
2,568,227
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
1,597
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,597
|
|
|||||
Paid-in capital
|
4,207,554
|
|
|
4,171,408
|
|
|
267,557
|
|
|
(4,438,965
|
)
|
|
4,207,554
|
|
|||||
Accumulated other comprehensive loss
|
(46,833
|
)
|
|
—
|
|
|
(44,763
|
)
|
|
44,763
|
|
|
(46,833
|
)
|
|||||
Accumulated deficit retained earnings
|
(2,847,726
|
)
|
|
(1,136,069
|
)
|
|
(197,614
|
)
|
|
1,333,683
|
|
|
(2,847,726
|
)
|
|||||
Total stockholders’ equity
|
1,314,592
|
|
|
3,035,339
|
|
|
25,180
|
|
|
(3,060,519
|
)
|
|
1,314,592
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
4,333,535
|
|
|
$
|
4,486,998
|
|
|
$
|
31,622
|
|
|
$
|
(4,969,336
|
)
|
|
$
|
3,882,819
|
|
|
Three months ended March 31, 2020
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues
|
$
|
98,268
|
|
|
$
|
148,609
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
246,877
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
—
|
|
|
15,986
|
|
|
—
|
|
|
—
|
|
|
15,986
|
|
|||||
Production taxes
|
—
|
|
|
4,799
|
|
|
—
|
|
|
—
|
|
|
4,799
|
|
|||||
Midstream gathering and processing expenses
|
—
|
|
|
57,896
|
|
|
—
|
|
|
—
|
|
|
57,896
|
|
|||||
Depreciation, depletion and amortization
|
2,502
|
|
|
75,360
|
|
|
166
|
|
|
—
|
|
|
78,028
|
|
|||||
Impairment of oil and natural gas properties
|
—
|
|
|
553,345
|
|
|
—
|
|
|
—
|
|
|
553,345
|
|
|||||
General and administrative expenses
|
24,646
|
|
|
(8,650
|
)
|
|
173
|
|
|
—
|
|
|
16,169
|
|
|||||
Accretion expense
|
—
|
|
|
741
|
|
|
—
|
|
|
—
|
|
|
741
|
|
|||||
|
27,148
|
|
|
699,477
|
|
|
339
|
|
|
—
|
|
|
726,964
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME (LOSS) FROM OPERATIONS
|
71,120
|
|
|
(550,868
|
)
|
|
(339
|
)
|
|
—
|
|
|
(480,087
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
OTHER EXPENSE (INCOME):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
33,177
|
|
|
(187
|
)
|
|
—
|
|
|
—
|
|
|
32,990
|
|
|||||
Interest income
|
(59
|
)
|
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
(152
|
)
|
|||||
Gain on debt extinguishment
|
(15,322
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,322
|
)
|
|||||
Loss from equity method investments and investments in subsidiaries
|
563,366
|
|
|
—
|
|
|
143
|
|
|
(552,720
|
)
|
|
10,789
|
|
|||||
Other expense
|
206
|
|
|
1,650
|
|
|
—
|
|
|
—
|
|
|
1,856
|
|
|||||
|
581,368
|
|
|
1,370
|
|
|
143
|
|
|
(552,720
|
)
|
|
30,161
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LOSS BEFORE INCOME TAXES
|
(510,248
|
)
|
|
(552,238
|
)
|
|
(482
|
)
|
|
552,720
|
|
|
(510,248
|
)
|
|||||
INCOME TAX EXPENSE
|
7,290
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,290
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
NET LOSS
|
$
|
(517,538
|
)
|
|
$
|
(552,238
|
)
|
|
$
|
(482
|
)
|
|
$
|
552,720
|
|
|
$
|
(517,538
|
)
|
|
Three months ended March 31, 2019
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues
|
$
|
186,246
|
|
|
$
|
134,332
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
320,578
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
14,893
|
|
|
4,914
|
|
|
—
|
|
|
—
|
|
|
19,807
|
|
|||||
Production taxes
|
3,261
|
|
|
4,660
|
|
|
—
|
|
|
—
|
|
|
7,921
|
|
|||||
Midstream gathering and processing expenses
|
43,299
|
|
|
26,983
|
|
|
—
|
|
|
—
|
|
|
70,282
|
|
|||||
Depreciation, depletion and amortization
|
118,432
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
118,433
|
|
|||||
General and administrative expenses
|
10,731
|
|
|
(675
|
)
|
|
1
|
|
|
—
|
|
|
10,057
|
|
|||||
Accretion expense
|
951
|
|
|
116
|
|
|
—
|
|
|
—
|
|
|
1,067
|
|
|||||
|
191,567
|
|
|
35,999
|
|
|
1
|
|
|
—
|
|
|
227,567
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(LOSS) INCOME FROM OPERATIONS
|
(5,321
|
)
|
|
98,333
|
|
|
(1
|
)
|
|
—
|
|
|
93,011
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
OTHER (INCOME) EXPENSE:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
35,925
|
|
|
(304
|
)
|
|
—
|
|
|
—
|
|
|
35,621
|
|
|||||
Interest income
|
(147
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(152
|
)
|
|||||
(Income) loss from equity method investments and investments in subsidiaries
|
(102,914
|
)
|
|
—
|
|
|
393
|
|
|
98,248
|
|
|
(4,273
|
)
|
|||||
Other income
|
(427
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(427
|
)
|
|||||
|
(67,563
|
)
|
|
(309
|
)
|
|
393
|
|
|
98,248
|
|
|
30,769
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME (LOSS) BEFORE INCOME TAXES
|
62,242
|
|
|
98,642
|
|
|
(394
|
)
|
|
(98,248
|
)
|
|
62,242
|
|
|||||
INCOME TAX BENEFIT
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME (LOSS)
|
$
|
62,242
|
|
|
$
|
98,642
|
|
|
$
|
(394
|
)
|
|
$
|
(98,248
|
)
|
|
$
|
62,242
|
|
|
Three months ended March 31, 2020
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss
|
$
|
(517,538
|
)
|
|
$
|
(552,238
|
)
|
|
$
|
(482
|
)
|
|
$
|
552,720
|
|
|
$
|
(517,538
|
)
|
Foreign currency translation adjustment
|
(15,030
|
)
|
|
(360
|
)
|
|
(14,670
|
)
|
|
15,030
|
|
|
(15,030
|
)
|
|||||
Other comprehensive loss
|
(15,030
|
)
|
|
(360
|
)
|
|
(14,670
|
)
|
|
15,030
|
|
|
(15,030
|
)
|
|||||
Comprehensive loss
|
$
|
(532,568
|
)
|
|
$
|
(552,598
|
)
|
|
$
|
(15,152
|
)
|
|
$
|
567,750
|
|
|
$
|
(532,568
|
)
|
|
Three months ended March 31, 2019
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
$
|
62,242
|
|
|
$
|
98,642
|
|
|
$
|
(394
|
)
|
|
$
|
(98,248
|
)
|
|
$
|
62,242
|
|
Foreign currency translation adjustment
|
3,801
|
|
|
94
|
|
|
3,707
|
|
|
(3,801
|
)
|
|
3,801
|
|
|||||
Other comprehensive income
|
3,801
|
|
|
94
|
|
|
3,707
|
|
|
(3,801
|
)
|
|
3,801
|
|
|||||
Comprehensive income (loss)
|
$
|
66,043
|
|
|
$
|
98,736
|
|
|
$
|
3,313
|
|
|
$
|
(102,049
|
)
|
|
$
|
66,043
|
|
|
Three months ended March 31, 2020
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
64,033
|
|
|
$
|
66,805
|
|
|
$
|
(435
|
)
|
|
$
|
435
|
|
|
$
|
130,838
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash used in investing activities
|
(448
|
)
|
|
(69,361
|
)
|
|
—
|
|
|
—
|
|
|
(69,809
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by financing activities
|
(65,456
|
)
|
|
—
|
|
|
435
|
|
|
(435
|
)
|
|
(65,456
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net decrease in cash, cash equivalents and restricted cash
|
(1,871
|
)
|
|
(2,556
|
)
|
|
—
|
|
|
—
|
|
|
(4,427
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, cash equivalents and restricted cash at beginning of period
|
2,768
|
|
|
3,097
|
|
|
195
|
|
|
—
|
|
|
6,060
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
897
|
|
|
$
|
541
|
|
|
$
|
195
|
|
|
$
|
—
|
|
|
$
|
1,633
|
|
|
Three months ended March 31, 2019
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
210,928
|
|
|
$
|
28,837
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
239,765
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash used in investing activities
|
(200,970
|
)
|
|
(44,593
|
)
|
|
(432
|
)
|
|
432
|
|
|
(245,563
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by financing activities
|
(28,503
|
)
|
|
—
|
|
|
433
|
|
|
(433
|
)
|
|
(28,503
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net decrease in cash, cash equivalents and restricted cash
|
(18,545
|
)
|
|
(15,756
|
)
|
|
—
|
|
|
—
|
|
|
(34,301
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, cash equivalents and restricted cash at beginning of period
|
25,585
|
|
|
26,711
|
|
|
1
|
|
|
—
|
|
|
52,297
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
7,040
|
|
|
$
|
10,955
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
17,996
|
|
16.
|
SUBSEQUENT EVENTS
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Continued our efforts to improve our balance sheet by reducing long-term debt by $79.6 million as of March 31, 2020 as compared to December 31, 2019 primarily through discounted bond repurchases.
|
•
|
Continued to improve operational efficiencies and reduce drilling and completion costs in both our SCOOP and Utica operating areas. In the Utica, our average spud to rig release time was 17.7 days in the first quarter, which was an 11% improvement from full year 2019 levels. In the SCOOP, our average spud to rig release time was 37.4 days, representing a 32% improvement compared to full year 2019 levels.
|
•
|
Closed on the sale of our SCOOP water infrastructure assets on January 2, 2020. We received $50.0 million in cash upon closing and have an opportunity to earn additional incentive payments over the next 15 years, subject to our ability to meet certain thresholds which will be driven by, among other things, our future development program and future water production levels. Proceeds from the divestiture were used to reduce our outstanding revolver balance.
|
|
Three months ended March 31,
|
|||||||
|
2020
|
|
% of Total
|
|
2019
|
|||
Natural gas (Mcf/day)
|
|
|
|
|
|
|||
Utica Shale
|
785,781
|
|
|
83
|
%
|
|
952,227
|
|
SCOOP
|
159,886
|
|
|
17
|
%
|
|
181,846
|
|
Other
|
39
|
|
|
—
|
%
|
|
140
|
|
Total
|
945,706
|
|
|
|
|
1,134,213
|
|
|
Oil and condensate (Bbls/day)
|
|
|
|
|
|
|||
Utica Shale
|
592
|
|
|
10
|
%
|
|
729
|
|
SCOOP
|
5,174
|
|
|
89
|
%
|
|
4,421
|
|
Other
|
78
|
|
|
1
|
%
|
|
1,647
|
|
Total
|
5,844
|
|
|
|
|
6,797
|
|
|
NGL (Gal/day)
|
|
|
|
|
|
|||
Utica Shale
|
134,293
|
|
|
26
|
%
|
|
259,286
|
|
SCOOP
|
376,890
|
|
|
74
|
%
|
|
360,888
|
|
Other
|
—
|
|
|
—
|
%
|
|
163
|
|
Total
|
511,183
|
|
|
|
|
620,337
|
|
|
Combined (Mcfe/day)
|
|
|
|
|
|
|||
Utica Shale
|
808,520
|
|
|
77
|
%
|
|
993,643
|
|
SCOOP
|
244,771
|
|
|
23
|
%
|
|
259,930
|
|
Other
|
508
|
|
|
—
|
%
|
|
10,044
|
|
Total
|
1,053,799
|
|
|
|
|
1,263,617
|
|
|
Three months ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
change
|
|||||
|
($ In thousands)
|
|||||||||
Natural gas
|
108,547
|
|
|
276,016
|
|
|
(61
|
)%
|
||
Oil and condensate
|
23,151
|
|
|
32,482
|
|
|
(29
|
)%
|
||
NGL
|
16,913
|
|
|
32,125
|
|
|
(47
|
)%
|
||
Natural gas, oil and NGL revenues
|
$
|
148,611
|
|
|
$
|
340,623
|
|
|
(56
|
)%
|
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
($ In thousands)
|
||||||
Natural gas derivatives - fair value (losses) gains
|
$
|
(15,125
|
)
|
|
$
|
9,338
|
|
Natural gas derivatives - settlement gains (losses)
|
60,978
|
|
|
(25,769
|
)
|
||
Total gains (losses) on natural gas derivatives
|
45,853
|
|
|
(16,431
|
)
|
||
|
|
|
|
||||
Oil and condensate derivatives - fair value gains (losses)
|
43,374
|
|
|
(474
|
)
|
||
Oil and condensate derivatives - settlement gains
|
9,500
|
|
|
20
|
|
||
Total gains (losses) on oil and condensate derivatives
|
52,874
|
|
|
(454
|
)
|
||
|
|
|
|
||||
NGL derivatives - fair value gains (losses)
|
665
|
|
|
(4,074
|
)
|
||
NGL derivatives - settlement gains
|
255
|
|
|
914
|
|
||
Total gains (losses) on NGL derivatives
|
920
|
|
|
(3,160
|
)
|
||
|
|
|
|
||||
Contingent consideration arrangement - fair value losses
|
(1,381
|
)
|
|
—
|
|
||
Total gains (losses) on natural gas, oil and NGL derivatives
|
$
|
98,266
|
|
|
$
|
(20,045
|
)
|
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
($ In thousands)
|
||||||
Natural gas sales
|
|
|
|
||||
Natural gas production volumes (MMcf)
|
86,059
|
|
|
102,079
|
|
||
|
|
|
|
||||
Total natural gas sales
|
$
|
108,547
|
|
|
$
|
276,016
|
|
|
|
|
|
||||
Natural gas sales without the impact of derivatives ($/Mcf)
|
$
|
1.26
|
|
|
$
|
2.70
|
|
Impact from settled derivatives ($/Mcf)
|
$
|
0.71
|
|
|
$
|
(0.25
|
)
|
Average natural gas sales price, including settled derivatives ($/Mcf)
|
$
|
1.97
|
|
|
$
|
2.45
|
|
|
|
|
|
Oil and condensate sales
|
|
|
|
||||
Oil and condensate production volumes (MBbls)
|
532
|
|
|
612
|
|
||
|
|
|
|
||||
Total oil and condensate sales
|
$
|
23,151
|
|
|
$
|
32,482
|
|
|
|
|
|
||||
Oil and condensate sales without the impact of derivatives ($/Bbl)
|
$
|
43.53
|
|
|
$
|
53.10
|
|
Impact from settled derivatives ($/Bbl)
|
$
|
17.86
|
|
|
$
|
0.03
|
|
Average oil and condensate sales price, including settled derivatives ($/Bbl)
|
$
|
61.39
|
|
|
$
|
53.13
|
|
|
|
|
|
||||
NGL sales
|
|
|
|
||||
NGL production volumes (MGal)
|
46,518
|
|
|
55,830
|
|
||
|
|
|
|
||||
Total NGL sales
|
$
|
16,913
|
|
|
$
|
32,125
|
|
|
|
|
|
||||
NGL sales without the impact of derivatives ($/Gal)
|
$
|
0.36
|
|
|
$
|
0.58
|
|
Impact from settled derivatives ($/Gal)
|
$
|
0.01
|
|
|
$
|
0.01
|
|
Average NGL sales price, including settled derivatives ($/Gal)
|
$
|
0.37
|
|
|
$
|
0.59
|
|
|
|
|
|
||||
Natural gas, oil and condensate and NGL sales
|
|
|
|
||||
Natural gas equivalents (MMcfe)
|
95,896
|
|
|
113,726
|
|
||
|
|
|
|
||||
Total natural gas, oil and condensate and NGL sales
|
$
|
148,611
|
|
|
$
|
340,623
|
|
|
|
|
|
||||
Natural gas, oil and condensate and NGL sales without the impact of derivatives ($/Mcfe)
|
$
|
1.55
|
|
|
$
|
3.00
|
|
Impact from settled derivatives ($/Mcfe)
|
$
|
0.74
|
|
|
$
|
(0.22
|
)
|
Average natural gas, oil and condensate and NGL sales price, including settled derivatives ($/Mcfe)
|
$
|
2.29
|
|
|
$
|
2.78
|
|
|
|
|
|
||||
Production Costs:
|
|
|
|
||||
Average production costs ($/Mcfe)
|
$
|
0.17
|
|
|
$
|
0.17
|
|
Average production taxes ($/Mcfe)
|
$
|
0.05
|
|
|
$
|
0.07
|
|
Average midstream gathering and processing ($/Mcfe)
|
$
|
0.60
|
|
|
$
|
0.62
|
|
Total production costs, midstream costs and production taxes ($/Mcfe)
|
$
|
0.82
|
|
|
$
|
0.86
|
|
|
Three months ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
change
|
|||||
|
($ In thousands, except per unit)
|
|||||||||
Lease operating expenses
|
|
|
|
|
|
|||||
Utica
|
$
|
11,185
|
|
|
$
|
11,827
|
|
|
(5
|
)%
|
SCOOP
|
4,769
|
|
|
3,614
|
|
|
32
|
%
|
||
Other(1)
|
32
|
|
|
4,366
|
|
|
(99
|
)%
|
||
Total lease operating expenses
|
$
|
15,986
|
|
|
$
|
19,807
|
|
|
(19
|
)%
|
|
|
|
|
|
|
|||||
Lease operating expenses per Mcfe
|
|
|
|
|
|
|||||
Utica
|
$
|
0.15
|
|
|
$
|
0.13
|
|
|
15
|
%
|
SCOOP
|
0.21
|
|
|
0.15
|
|
|
39
|
%
|
||
Other(1)
|
0.71
|
|
|
4.83
|
|
|
(85
|
)%
|
||
Total lease operating expenses per Mcfe
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
(4
|
)%
|
(1)
|
Includes WCBB, Hackberry, Niobrara and Bakken.
|
|
Three months ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
change
|
|||||
|
($ In thousands, except per unit)
|
|||||||||
Production taxes
|
$
|
4,799
|
|
|
$
|
7,921
|
|
|
(39
|
)%
|
Production taxes per Mcfe
|
$
|
0.05
|
|
|
$
|
0.07
|
|
|
(28
|
)%
|
|
Three months ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
change
|
|||||
|
($ In thousands, except per unit)
|
|||||||||
Midstream gathering and processing expenses
|
$
|
57,896
|
|
|
$
|
70,282
|
|
|
(18
|
)%
|
Midstream gathering and processing expenses per Mcfe
|
$
|
0.60
|
|
|
$
|
0.62
|
|
|
(2
|
)%
|
|
Three months ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
change
|
|||||
|
($ In thousands, except per unit)
|
|||||||||
Depreciation, depletion and amortization
|
$
|
78,028
|
|
|
$
|
118,433
|
|
|
(34
|
)%
|
Depreciation, depletion and amortization per Mcfe
|
$
|
0.81
|
|
|
$
|
1.04
|
|
|
(22
|
)%
|
|
Three months ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
change
|
|||||
|
($ In thousands, except per unit)
|
|||||||||
Loss (income) from equity method investments, net
|
$
|
10,789
|
|
|
$
|
(4,273
|
)
|
|
(352
|
)%
|
|
Three months ended March 31,
|
|||||||||
|
2020
|
|
2019
|
|
change
|
|||||
|
($ In thousands, except per unit)
|
|||||||||
General and administrative expenses, gross
|
$
|
24,652
|
|
|
$
|
20,441
|
|
|
21
|
%
|
Reimbursed from third parties
|
$
|
(3,052
|
)
|
|
$
|
(2,689
|
)
|
|
13
|
%
|
Capitalized general and administrative expenses
|
$
|
(5,431
|
)
|
|
$
|
(7,695
|
)
|
|
(29
|
)%
|
General and administrative expenses, net
|
$
|
16,169
|
|
|
$
|
10,057
|
|
|
61
|
%
|
|
|
|
|
|
|
|||||
General and administrative expenses, net per Mcfe
|
$
|
0.17
|
|
|
$
|
0.09
|
|
|
89
|
%
|
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
($ In thousands, except per unit)
|
||||||
Interest expense on senior notes
|
29,119
|
|
|
32,281
|
|
||
Interest expense on revolving credit agreement
|
2,165
|
|
|
2,255
|
|
||
Interest expense on construction loan and other
|
340
|
|
|
266
|
|
||
Capitalized interest
|
(187
|
)
|
|
(766
|
)
|
||
Amortization of loan costs
|
1,553
|
|
|
1,585
|
|
||
Total interest expense
|
$
|
32,990
|
|
|
$
|
35,621
|
|
|
|
|
|
||||
Interest expense per Mcfe
|
$
|
0.34
|
|
|
$
|
0.31
|
|
|
|
|
|
||||
Weighted average debt outstanding under revolving credit facility
|
$
|
81,978
|
|
|
$
|
77,278
|
|
Natural Gas Derivatives
|
|||||||||||
Year
|
|
Type of Derivative Instrument
|
|
Index
|
|
Daily Volume (MMBtu/day)
|
|
Weighted
Average Price
|
|||
2020
|
|
Swaps
|
|
NYMEX Henry Hub
|
|
432,000
|
|
|
$
|
2.92
|
|
2020
|
|
Basis Swaps
|
|
Various
|
|
70,000
|
|
|
$
|
(0.12
|
)
|
2022
|
|
Sold Call Options
|
|
NYMEX Henry Hub
|
|
628,000
|
|
|
$
|
2.90
|
|
2023
|
|
Sold Call Options
|
|
NYMEX Henry Hub
|
|
628,000
|
|
|
$
|
2.90
|
|
Oil Derivatives
|
|||||||||||
Year
|
|
Type of Derivative Instrument
|
|
Index
|
|
Daily Volume (Bbls/day)
|
|
Weighted
Average Price
|
|||
2020
|
|
Swaps
|
|
NYMEX WTI
|
|
6,000
|
|
|
$
|
59.83
|
|
NGL Derivatives
|
|||||||||||
Year
|
|
Type of Derivative Instrument
|
|
Index
|
|
Daily Volume (Bbls/day)
|
|
Weighted
Average Price
|
|||
2020
|
|
Swaps
|
|
Mont Belvieu C3
|
|
500
|
|
|
$
|
21.63
|
|
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In thousands)
|
||||||
Oil and Natural Gas Property Expenditures:
|
|
|
|
||||
Drilling and completion costs
|
97,538
|
|
|
194,526
|
|
||
Leasehold acquisitions
|
7,346
|
|
|
22,709
|
|
||
Other
|
8,860
|
|
|
24,156
|
|
||
Total oil and natural gas property expenditures
|
$
|
113,744
|
|
|
$
|
241,391
|
|
Other Uses of Cash and Cash Equivalents
|
|
|
|
||||
Cash paid to repurchase senior notes
|
10,204
|
|
|
—
|
|
||
Principal payments on borrowings, net
|
55,106
|
|
|
151
|
|
||
Cash paid to repurchase common stock under approved stock repurchase program
|
—
|
|
|
28,212
|
|
||
Other
|
685
|
|
|
4,420
|
|
||
Total other uses of cash and cash equivalents
|
$
|
65,995
|
|
|
$
|
32,783
|
|
Total uses of cash and cash equivalents
|
$
|
179,739
|
|
|
$
|
274,174
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
•
|
Swaps: We receive a fixed price and pay a floating market price to the counterparty for the hedged commodity. In exchange for higher fixed prices on certain of our swap trades, we may sell call options.
|
•
|
Basis Swaps: These instruments are arrangements that guarantee a fixed price differential to NYMEX from a specified delivery point. We receive the fixed price differential and pay the floating market price differential to the counterparty for the hedged commodity.
|
•
|
Options: We sell, and occasionally buy, call options in exchange for a premium. At the time of settlement, if the market price exceeds the fixed price of the call option, we pay the counterparty the excess on sold call options, and we receive the excess on bought call options. If the market price settles below the fixed price of the call option, no payment is due from either party.
|
|
Location
|
Daily Volume (MMBtu/day)
|
|
Weighted
Average Price |
|||
Remaining 2020
|
NYMEX Henry Hub
|
432,000
|
|
|
$
|
2.92
|
|
|
Location
|
Daily Volume
(Bbls/day) |
|
Weighted
Average Price |
|||
Remaining 2020
|
NYMEX WTI
|
6,000
|
|
|
$
|
59.83
|
|
|
Location
|
Daily Volume
(Bbls/day) |
|
Weighted
Average Price |
|||
Remaining 2020
|
Mont Belvieu C3
|
500
|
|
|
$
|
21.63
|
|
|
Location
|
Daily Volume (MMBtu/day)
|
|
Weighted Average Price
|
|||
2022
|
NYMEX Henry Hub
|
628,000
|
|
|
$
|
2.90
|
|
2023
|
NYMEX Henry Hub
|
628,000
|
|
|
$
|
2.90
|
|
|
Gulfport Pays
|
Gulfport Receives
|
Daily Volume (MMBtu/day)
|
|
Weighted Average Fixed Spread
|
|||
Remaining 2020
|
Transco Zone 4
|
NYMEX Plus Fixed Spread
|
60,000
|
|
|
$
|
(0.05
|
)
|
Remaining 2020
|
Fixed Spread
|
ONEOK Minus NYMEX
|
10,000
|
|
|
$
|
(0.54
|
)
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
•
|
our revenue may be reduced if the outbreak results in an economic downturn or recession, as many experts predict, to the extent it leads to a prolonged decrease in the demand for natural gas and, to a lesser extent, NGL and oil;
|
•
|
our operations may be disrupted or impaired, thus lowering our production level, if a significant portion of our employees or contractors are unable to work due to illness or if our field operations are suspended or temporarily shut-down or restricted due to control measures designed to contain the outbreak;
|
•
|
the operations of our midstream service providers, on whom we rely for the transmission, gathering and processing of a significant portion of our produced natural gas, NGL and oil, may be disrupted or suspended in response to containing the outbreak, and/or the difficult economic environment may lead to the bankruptcy or closing of the facilities and infrastructure of our midstream service providers, which may result in substantial discounts in the prices we receive for our produced natural gas, NGL and oil or result in the shut-in of producing wells or the delay or discontinuance of development plans for our properties; and
|
•
|
the disruption and instability in the financial markets and the uncertainty in the general business environment may affect our ability to execute on our business strategy, including our focus on reducing our leverage profile. If we are not able to successfully execute our plan to reduce our leverage profile, our high level of indebtedness could make it more difficult for us to satisfy our obligations with respect to our indebtedness, and any failure to comply with the obligations under any of our debt instruments, including their restrictive covenants, could result in a default under our revolving credit facility or the indentures governing our senior notes. Additionally, our credit ratings may be lowered, we may reduce or delay our planned capital expenditures or investments, and we may revise or delay our strategic plans.
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
Total number of shares purchased (1)
|
|
Average price paid per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
|
|
Approximate maximum dollar value of shares that may yet be purchased under the plans or programs (2)
|
||||||
January 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
370,000,000
|
|
February 2020
|
|
80,155
|
|
|
$
|
0.98
|
|
|
—
|
|
|
$
|
370,000,000
|
|
March 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
370,000,000
|
|
Total
|
|
80,155
|
|
|
$
|
0.98
|
|
|
—
|
|
|
|
(1)
|
In February 2020, we repurchased and canceled 80,115 shares of our common stock at a weighted average price of $0.98 to satisfy tax withholding requirements incurred upon the vesting of restricted stock unit awards.
|
||||||||
(2)
|
In January 2019, our board of directors approved a new stock repurchase program to acquire up to $400.0 million of our outstanding common stock within a 24 month period. The program was suspended in the fourth quarter of 2019, and the May 1, 2020 amendment to our revolving credit facility prohibits further repurchases.
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
Named Executive Officer
|
|
Restricted Stock Units
|
|
David M. Wood
|
|
809,644
|
|
Donnie Moore
|
|
352,981
|
|
Quentin R. Hicks
|
|
191,441
|
|
Patrick K. Craine
|
|
195,945
|
|
Michael Sluiter
|
|
145,386
|
|
ITEM 6.
|
EXHIBITS
|
31.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
104
|
|
Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
|
|
|
|
|
|
X
|
+
|
Management contract, compensation plan or arrangement.
|
GULFPORT ENERGY CORPORATION
|
||
|
|
|
By:
|
|
/s/ Quentin Hicks
|
|
|
Quentin Hicks
Executive Vice President & Chief Financial Officer
|
1 Year Gulfport Energy Chart |
1 Month Gulfport Energy Chart |
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