Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport” or the
“Company”) today reported financial and operational results for the
quarter ended June 30, 2017 and provided an update on its 2017
activities. Key information for the second quarter of 2017
includes the following:
- Net production averaged 1,038.4 MMcfe per day, a 22% increase
over the first quarter of 2017 and a 56% increase versus the second
quarter of 2016.
- Net income of $105.9 million, or $0.58 per diluted share.
- Adjusted net income (as defined and reconciled below) of $60.4
million, or $0.33 per diluted share.
- Adjusted EBITDA (as defined and reconciled below) of $167.3
million.
- Reduced unit lease operating expense for the second quarter of
2017 by 13% to $0.22 per Mcfe from $0.25 per Mcfe for the first
quarter of 2017.
- Reduced unit general and administrative expense for the second
quarter of 2017 by 21% to $0.13 per Mcfe from $0.16 per Mcfe for
the first quarter of 2017.
- Increased 2017 full-year production guidance and now forecast
2017 average daily net production will be in the range of 1,065
MMcfe to 1,100 MMcfe per day.
- Reiterate budgeted 2017 total capital expenditures of $1.0
billion to $1.1 billion.
- Recently spud both a Springer and Sycamore location in the
SCOOP.
- Increased hedge position to approximately 629 MMcf per day of
natural gas fixed price swaps during 2017 at an average fixed price
of $3.19 per Mcf and a large base level of 775 MMcf per day of
natural gas fixed price swaps during 2018 at an average fixed price
of $3.06 per Mcf.
Second Quarter Financial
ResultsFor the second quarter of 2017, Gulfport reported
net income of $105.9 million, or $0.58 per diluted share, on
revenues of $324.0 million. For the second quarter of 2017,
EBITDA (as defined and reconciled below for each period presented)
was $212.8 million and cash flow from operating activities before
changes in operating assets and liabilities (as defined and
reconciled below for each period presented) was $145.0
million. Gulfport’s GAAP net income for the second quarter of
2017 includes the following items:
- Aggregate non-cash derivative gain of $59.9 million.
- Aggregate expense of $1.1 million in connection with the
acquisition of oil and natural gas assets from Vitruvian.
- Aggregate loss of $13.3 million in connection with Gulfport's
equity interests in certain equity investments.
Excluding the effect of these items, Gulfport’s
financial results for the second quarter of 2017 would have been as
follows:
- Adjusted oil and gas revenues of $264.1 million.
- Adjusted net income of $60.4 million, or $0.33 per diluted
share.
- Adjusted EBITDA of $167.3 million.
Year-To-Date 2017 Financial
ResultsFor the six-month period ended June 30, 2017,
Gulfport reported net income of $260.4 million, or $1.47 per
diluted share, on revenues of $657.0 million. For the
six-month period ended June 30, 2017, EBITDA was $457.0
million and cash flow from operating activities before changes in
operating assets and liabilities was $266.7 million.
Gulfport's GAAP net income for the six-month period ended
June 30, 2017 includes the following items:
- Aggregate non-cash derivative gain of $166.7 million.
- Aggregate expense of $2.4 million in connection with the
acquisition of oil and natural gas assets from Vitruvian.
- Aggregate loss of $18.2 million in connection with Gulfport's
equity interests in certain equity investments.
Excluding the effect of these items, Gulfport’s
financial results for the six-month period ended June 30, 2017
would have been as follows:
- Adjusted oil and gas revenues of $490.3 million.
- Adjusted net income of $114.3 million, or $0.65 per diluted
share.
- Adjusted EBITDA of $310.9 million.
Production and Realized
PricesGulfport’s net daily production for the second
quarter of 2017 averaged approximately 1,038.4 MMcfe per day. For
the second quarter of 2017, Gulfport’s net daily production mix was
comprised of approximately 88% natural gas, 8% natural gas liquids
("NGL") and 4% oil.
Gulfport’s realized prices for the second
quarter of 2017 were $3.16 per Mcf of natural gas, $57.86 per
barrel of oil and $0.45 per gallon of NGL, resulting in a total
equivalent price of $3.43 per Mcfe. Gulfport's realized prices for
the second quarter of 2017 include an aggregate non-cash derivative
gain of $59.9 million. Before the impact of derivatives, realized
prices for the second quarter of 2017, including transportation
costs, were $2.48 per Mcf of natural gas, $45.33 per barrel of oil
and $0.45 per gallon of NGL, for a total equivalent price of $2.74
per Mcfe.
GULFPORT ENERGY CORPORATION |
PRODUCTION SCHEDULE |
(Unaudited) |
|
Three months ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
Production
Volumes: |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Natural gas (MMcf) |
82,903 |
|
|
52,775 |
|
|
149,187 |
|
|
106,082 |
|
Oil (MBbls) |
650 |
|
|
551 |
|
|
1,164 |
|
|
1,153 |
|
NGL (MGal) |
53,808 |
|
|
30,853 |
|
|
103,475 |
|
|
73,380 |
|
Gas equivalent
(MMcfe) |
94,490 |
|
|
60,492 |
|
|
170,951 |
|
|
123,485 |
|
Gas equivalent (Mcfe
per day) |
1,038,351 |
|
|
664,743 |
|
|
944,481 |
|
|
678,487 |
|
|
|
|
|
|
|
|
|
Average
Realized Prices: |
|
|
|
|
|
|
|
(before the
impact of derivatives): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf) |
$ |
2.48 |
|
|
$ |
1.44 |
|
|
$ |
2.57 |
|
|
$ |
1.41 |
|
Oil (per Bbl) |
$ |
45.33 |
|
|
$ |
42.00 |
|
|
$ |
46.30 |
|
|
$ |
33.82 |
|
NGL (per Gal) |
$ |
0.45 |
|
|
$ |
0.33 |
|
|
$ |
0.54 |
|
|
$ |
0.27 |
|
Gas equivalent (per
Mcfe) |
$ |
2.74 |
|
|
$ |
1.81 |
|
|
$ |
2.88 |
|
|
$ |
1.69 |
|
|
|
|
|
|
|
|
|
Average
Realized Prices: |
|
|
|
|
|
|
|
(including cash-settlement of derivatives and excluding
non-cash derivative gain or loss):
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf) |
$ |
2.51 |
|
|
$ |
2.53 |
|
|
$ |
2.54 |
|
|
$ |
2.51 |
|
Oil (per Bbl) |
$ |
48.91 |
|
|
$ |
48.49 |
|
|
$ |
48.37 |
|
|
$ |
42.42 |
|
NGL (per Gal) |
$ |
0.45 |
|
|
$ |
0.33 |
|
|
$ |
0.54 |
|
|
$ |
0.27 |
|
Gas equivalent (per
Mcfe) |
$ |
2.79 |
|
|
$ |
2.82 |
|
|
$ |
2.87 |
|
|
$ |
2.71 |
|
|
|
|
|
|
|
|
|
Average
Realized Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf) |
$ |
3.16 |
|
|
$ |
(1.10 |
) |
|
$ |
3.53 |
|
|
$ |
0.69 |
|
Oil (per Bbl) |
$ |
57.86 |
|
|
$ |
37.23 |
|
|
$ |
62.67 |
|
|
$ |
32.65 |
|
NGL (per Gal) |
$ |
0.45 |
|
|
$ |
0.30 |
|
|
$ |
0.56 |
|
|
$ |
0.24 |
|
Gas equivalent (per
Mcfe) |
$ |
3.43 |
|
|
$ |
(0.47 |
) |
|
$ |
3.84 |
|
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
The table below summarizes Gulfport’s second
quarter of 2017 production by asset area:
GULFPORT ENERGY CORPORATION |
PRODUCTION BY AREA |
(Unaudited) |
|
Three months ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2017 |
|
2017 |
Utica
Shale |
|
|
|
Natural gas (MMcf) |
72,649 |
|
|
133,801 |
|
Oil (MBbls) |
122 |
|
|
253 |
|
NGL (MGal) |
32,372 |
|
|
71,683 |
|
Gas equivalent
(MMcfe) |
78,003 |
|
|
145,562 |
|
|
|
|
|
SCOOP(1) |
|
|
|
Natural gas (MMcf) |
10,233 |
|
|
15,348 |
|
Oil (MBbls) |
244 |
|
|
378 |
|
NGL (MGal) |
21,343 |
|
|
31,665 |
|
Gas equivalent
(MMcfe) |
14,744 |
|
|
22,142 |
|
|
|
|
|
Southern
Louisiana
|
|
|
|
Natural gas (MMcf) |
13 |
|
|
22 |
|
Oil (MBbls) |
273 |
|
|
507 |
|
NGL (MGal) |
— |
|
|
— |
|
Gas equivalent
(MMcfe) |
1,650 |
|
|
3,066 |
|
|
|
|
|
Other |
|
|
|
Natural gas (MMcf) |
8 |
|
|
16 |
|
Oil (MBbls) |
12 |
|
|
24 |
|
NGL (MGal) |
93 |
|
|
127 |
|
Gas equivalent
(MMcfe) |
93 |
|
|
181 |
|
|
|
|
|
(1)
SCOOP production included from closing date of February 17, 2017.
|
Operational UpdateThe table
below summarizes Gulfport's activity for the six-month period ended
June 30, 2017 and the number of net wells expected to be
drilled and turned-to-sales for the remainder of 2017:
GULFPORT ENERGY CORPORATION |
ACTIVITY SUMMARY |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Monthsended |
|
Three Monthsended |
|
|
|
|
|
|
March 31, |
|
June 30 |
|
Remaining Wells |
|
Guidance (1) |
|
|
2017 |
|
2017 |
|
2017 |
|
2017 |
Net Wells
Drilled |
|
|
|
|
|
|
|
|
Utica - Operated |
|
23.5 |
|
|
25.7 |
|
|
21.3 |
|
|
70.5 |
|
Utica -
Non-Operated |
|
2.0 |
|
|
2.2 |
|
|
6.3 |
|
|
10.5 |
|
Total |
|
25.5 |
|
|
27.9 |
|
|
27.6 |
|
|
81.0 |
|
|
|
|
|
|
|
|
|
|
SCOOP - Operated |
|
4.2 |
|
|
2.4 |
|
|
10.4 |
|
|
17.0 |
|
SCOOP -
Non-Operated |
|
0.5 |
|
|
0.3 |
|
|
0.7 |
|
|
1.5 |
|
Total |
|
4.7 |
|
|
2.7 |
|
|
11.1 |
|
|
18.5 |
|
|
|
|
|
|
|
|
|
|
Net Wells
Turned-to-Sales |
|
|
|
|
|
|
|
|
Utica - Operated |
|
4.7 |
|
|
26.7 |
|
|
32.6 |
|
|
64.0 |
|
Utica -
Non-Operated |
|
0.6 |
|
|
4.1 |
|
|
4.8 |
|
|
9.5 |
|
Total |
|
5.3 |
|
|
30.8 |
|
|
37.4 |
|
|
73.5 |
|
|
|
|
|
|
|
|
|
|
SCOOP - Operated |
|
— |
|
|
1.2 |
|
|
13.8 |
|
|
15.0 |
|
SCOOP -
Non-Operated |
|
0.2 |
|
|
0.1 |
|
|
1.2 |
|
|
1.5 |
|
Total |
|
0.2 |
|
|
1.3 |
|
|
15.0 |
|
|
16.5 |
|
|
|
|
|
|
|
|
|
|
(1)
Utilizes mid-point of publicly provided 2017 guidance |
|
|
|
|
Utica ShaleIn the Utica Shale,
during the second quarter of 2017, Gulfport spud 28 gross (25.7
net) operated wells. The wells drilled during the second quarter of
2017 had an average lateral length of approximately 8,408 feet, an
increase of 3% over the first quarter of 2017. Normalizing to an
8,000 foot lateral length, Gulfport's average drilling days during
the second quarter of 2017 from spud to rig release totaled
approximately 18.0 days. In addition, Gulfport turned-to-sales 29
gross (26.7 net) operated wells with an average lateral length of
approximately 7,802 feet. For the six-month period ended
June 30, 2017, Gulfport's well costs averaged approximately
$1,094 per foot of lateral in the Utica Shale.
The table below summarizes notable recent well
results across Gulfport's acreage position:
GULFPORT ENERGY CORPORATION |
NOTABLE WELL RESULTS SUMMARY |
(Unaudited) |
|
|
Wells |
Phase |
Average |
Average Production Rates (MMcfe per
day) |
|
County |
On Pad |
Window |
Lateral (ft) |
30-Day |
60-Day |
90-Day |
Charlie Pad |
SE Belmont |
6 |
Dry
Gas East |
7,672 |
16.9 |
16.9 |
16.9 |
Jacobs Pad |
SW
Monroe |
1 |
Dry
Gas Central |
8,414 |
14.7 |
16.3 |
16.7 |
Schubert Pad
|
S
Jefferson |
1 |
Dry
Gas Central |
8,035 |
16.3 |
16.3 |
16.3 |
Valerie Pad |
SE
Belmont |
3 |
Dry
Gas East |
7,072 |
18.1 |
18.1 |
18.1 |
Ward Pad |
SW
Belmont |
2 |
Dry
Gas West |
8,174 |
18.7 |
18.7 |
18.7 |
|
|
|
|
|
|
|
|
Note: Data
provided is three-stream production data. |
During the second quarter of 2017, net
production from Gulfport’s Utica acreage averaged approximately
857.2 MMcfe per day, an increase of 14% over the first quarter of
2017 and an increase of 33% over the second quarter of 2016.
During the six-month period ended June 30,
2017, Gulfport acquired approximately 5,500 net acres within its
core dry gas operating area. In addition, the Company completed an
acquisition of mineral interests, increasing its net revenue
interest (NRI) on over 5,000 acres by approximately 8%. Gulfport
holds approximately 211,000 net acres under lease today in the
Utica Shale.
At present, Gulfport has six operated horizontal
drilling rigs active in the play.
SCOOPIn the SCOOP, during the
second quarter of 2017, Gulfport spud three gross (2.4 net)
operated Woodford wells. The wells drilled during the second
quarter of 2017 had an average lateral length of 8,804 feet, an
increase of 12% over the first quarter of 2017. Normalizing
to a 7,500 foot lateral length, Gulfport's average drilling days
during the second quarter of 2017 from spud to rig release totaled
approximately 64.8 days.
During the second quarter of 2017, net
production from the acreage averaged approximately 162.0 MMcfe per
day.
During the six-month period ended June 30,
2017, Gulfport acquired approximately 2,600 net acres within
its core operating area, bringing the Company's holdings to a total
of approximately 49,200 net surface acres under lease today in the
SCOOP.
At present, Gulfport temporarily has six
operated horizontal drilling rigs active in the play. The Company
is in the process of high-grading its rig equipment and expects to
return to four horizontal rigs in the coming weeks as contracts
expire. Subsequent to the second quarter of 2017, Gulfport spud
both a Springer and Sycamore well in the SCOOP.
As previously announced, during the second
quarter of 2017 Gulfport turned-to-sales two gross (1.2 net)
Woodford wells, the Vinson 2-22X27H and Vinson 3R-22X27H, located
in the wet gas window in southern Grady County. Following 60 days
of production, the Vinson 2-22X27H has cumulatively produced 769.6
MMcf of natural gas and 2,138 barrels of oil and the Vinson
3R-22X27H has cumulatively produced 927.5 MMcf of natural gas and
2,468 barrels of oil. Based upon the composition analysis, the gas
being produced from the Vinson pad is 1,118 BTU gas and yielding
35.7 barrels of NGLs per MMcf of natural gas and results in a
natural gas shrink of 11%. On a three-stream basis, the Vinson
2-22X27H produced at an average 60-day peak rate of 14.4 MMcfe per
day, which is comprised of approximately 79% natural gas, 19%
natural gas liquids and 2% oil. The Vinson 3R-22X27H produced at an
average 60-day peak rate of 17.3 MMcfe per day, which is comprised
of approximately 79% natural gas, 19% natural gas liquids and 2%
oil. In addition to these results, Gulfport recently began flowback
on two gross operated Woodford wells and is in various stages of
completion on an incremental five gross operated Woodford
wells.
Southern LouisianaAt its West
Cote Blanche Bay and Hackberry fields, during the second quarter of
2017, Gulfport spud six wells and performed 29 recompletions at the
fields. Net production during the second quarter of 2017 totaled
approximately 18.1 MMcfe per day.
2017 Capital Budget and Production
Guidance UpdateFor the six-month period ended
June 30, 2017, Gulfport’s drilling and completion capital
expenditures totaled $536.1 million, midstream capital expenditures
totaled $23.0 million and leasehold capital expenditures totaled
$55.2 million. Michael Moore, Gulfport's Chief Executive Officer
and President commented, "As planned, the second quarter of 2017
marks our most active quarter from both an activity and capital
spending standpoint for 2017. We currently forecast a similar to
slightly lower drilling and completion spend during the third
quarter of 2017, decreasing significantly in the fourth quarter of
2017 and reaffirm our capital budget for 2017 of approximately $1.0
to $1.1 billion."
As previously announced, based on actual results
during the six-month period ended June 30, 2017, Gulfport
increases its 2017 production guidance and currently forecasts that
2017 average daily net production will be in the range of 1,065
MMcfe to 1,100 MMcfe per day, an increase of 48% to 53% over its
2016 average daily net production of 719.8 MMcfe per day.
In addition, as previously announced, based on
actual results during the six-month period ended June 30, 2017
and utilizing current strip pricing at the various regional pricing
points at which the Company sells its natural gas, Gulfport now
forecasts its realized natural gas price, before the effect of
hedges and inclusive of the Company’s firm transportation expense,
will average in the range of $0.62 to $0.68 per Mcf below NYMEX
settlement prices in 2017. Gulfport reiterated its expected
realized NGL price and realized oil price and expects that its 2017
realized NGL price, before the effect of hedges and including
transportation expense, will be approximately 45% of WTI and its
2017 realized oil price will be in the range of $3.75 to $4.75 per
barrel below WTI.
The table below summarizes the Company’s full
year 2017 guidance:
GULFPORT ENERGY CORPORATION |
COMPANY GUIDANCE |
|
Year Ending |
|
2017 |
|
Low |
|
High |
Forecasted
Production |
|
|
|
Average
Daily Gas Equivalent (MMcfepd) |
1,065 |
|
|
1,100 |
|
%
Gas |
~88% |
% Natural
Gas Liquids |
~8% |
%
Oil |
~4% |
|
|
|
|
Forecasted
Realizations (before the effects of hedges) (1)
|
|
|
|
Natural
Gas (Differential to NYMEX Settled Price) - $/Mcf |
$ |
(0.62 |
) |
|
$ |
(0.68 |
) |
NGL (% of
WTI) |
~45% |
Oil
(Differential to NYMEX WTI) $/Bbl |
$ |
(3.75 |
) |
|
$ |
(4.75 |
) |
|
|
|
|
Projected
Operating Costs |
|
|
|
Lease
Operating Expense - $/Mcfe |
$ |
0.18 |
|
|
$ |
0.23 |
|
Production Taxes - $/Mcfe |
$ |
0.08 |
|
|
$ |
0.09 |
|
Midstream
Gathering and Processing - $/Mcfe |
$ |
0.55 |
|
|
$ |
0.62 |
|
General
and Administrative - $/Mcfe |
$ |
0.15 |
|
|
$ |
0.17 |
|
|
|
|
|
Depreciation,
Depletion and Amortization - $/Mcfe |
$ |
0.85 |
|
|
$ |
0.90 |
|
|
|
|
|
|
Total |
Budgeted
D&C Expenditures - In Millions: |
|
|
|
Operated |
$ |
720 |
|
|
$ |
780 |
|
Non-Operated |
$ |
125 |
|
|
$ |
135 |
|
Total
Budgeted E&P Capital Expenditures |
$ |
845 |
|
|
$ |
915 |
|
|
|
|
|
Budgeted
Midstream Expenditures - In Millions: |
$ |
50 |
|
|
$ |
60 |
|
|
|
|
|
Budgeted
Leasehold Expenditures - In Millions: |
$ |
110 |
|
|
$ |
120 |
|
|
|
|
|
Total Capital
Expenditures - In Millions: |
$ |
1,005 |
|
|
$ |
1,095 |
|
|
|
|
|
Net Wells
Drilled |
|
|
|
Utica -
Operated |
67 |
|
|
74 |
|
Utica -
Non-Operated |
10 |
|
|
11 |
|
Total |
77 |
|
|
85 |
|
|
|
|
|
SCOOP -
Operated |
16 |
|
|
18 |
|
SCOOP -
Non-Operated |
1 |
|
|
2 |
|
Total |
17 |
|
|
20 |
|
|
|
|
|
Net Wells
Turned-to-Sales |
|
|
|
Utica -
Operated |
61 |
|
|
67 |
|
Utica -
Non-Operated |
9 |
|
|
10 |
|
Total |
70 |
|
|
77 |
|
|
|
|
|
SCOOP -
Operated |
14 |
|
|
16 |
|
SCOOP -
Non-Operated |
1 |
|
|
2 |
|
Total |
15 |
|
|
18 |
|
2017 Financial Position and
LiquidityAs of June 30, 2017, Gulfport had cash on
hand of approximately $117.6 million. As of June 30, 2017,
$210.0 million was outstanding under Gulfport’s revolving credit
facility with outstanding letters of credit totaling $237.5
million.
DerivativesGulfport has hedged
a portion of its expected production to lock in prices and returns
that provide certainty of cash flow to execute on its capital
plans. Since May 8, 2017, the Company has added approximately 75
BBtupd of natural gas fixed price swaps for the remainder of 2017,
166 BBtupd of natural gas fixed price swaps for 2018 and 37 BBtupd
of natural gas fixed price swaps for 2019.
The table below sets forth the Company's hedging
positions as of August 8, 2017.
GULFPORT ENERGY CORPORATION |
COMMODITY DERIVATIVES - HEDGE
POSITION |
(Unaudited) |
|
3Q2017 |
|
4Q2017 |
|
|
Natural
gas: |
|
|
|
|
|
Swap contracts
(NYMEX) |
|
|
|
|
|
Volume (BBtupd) |
708 |
|
|
765 |
|
|
|
Price ($ per
MMBtu) |
$ |
3.19 |
|
|
$ |
3.19 |
|
|
|
|
|
|
|
|
|
Swaption contracts
(NYMEX) |
|
|
|
|
|
Volume (BBtupd) |
65 |
|
|
65 |
|
|
|
Price ($ per
MMBtu) |
$ |
3.11 |
|
|
$ |
3.11 |
|
|
|
|
|
|
|
|
|
Basis Swap
Contract (Tetco M2) |
|
|
|
|
|
Volume (BBtupd) |
— |
|
|
— |
|
|
|
Differential ($ per
MMBtu) |
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Basis Swap
Contract (NGPL MC)
|
|
|
|
|
|
Volume (BBtupd) |
50 |
|
|
50 |
|
|
|
Differential ($ per
MMBtu) |
$ |
(0.26 |
) |
|
$ |
(0.26 |
) |
|
|
|
|
|
|
|
|
Oil: |
|
|
|
|
|
Swap contracts
(LLS) |
|
|
|
|
|
Volume (Bblpd) |
1,500 |
|
|
1,500 |
|
|
|
Price ($ per Bbl) |
$ |
53.12 |
|
|
$ |
53.12 |
|
|
|
|
|
|
|
|
|
Swap contracts
(WTI) |
|
|
|
|
|
Volume (Bblpd) |
4,500 |
|
|
4,500 |
|
|
|
Price ($ per Bbl) |
$ |
54.89 |
|
|
$ |
54.89 |
|
|
|
|
|
|
|
|
|
NGL: |
|
|
|
|
|
C3 Propane Swap
Contracts |
|
|
|
|
|
Volume (Bblpd) |
3,000 |
|
|
3,000 |
|
|
|
Price ($ per Gal) |
$ |
0.63 |
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
C5+ Swap Contracts |
|
|
|
|
|
Volume (Bblpd) |
250 |
|
|
250 |
|
|
|
Price ($ per Gal) |
$ |
1.17 |
|
|
$ |
1.17 |
|
|
|
|
|
|
|
|
|
|
2017 |
|
2018 |
|
2019 |
Natural
gas: |
|
|
|
|
|
Swap contracts
(NYMEX) |
|
|
|
|
|
Volume (BBtupd) |
629 |
|
|
775 |
|
|
57 |
|
Price ($ per
MMBtu) |
$ |
3.19 |
|
|
$ |
3.06 |
|
|
$ |
3.10 |
|
|
|
|
|
|
|
Swaption contracts
(NYMEX) |
|
|
|
|
|
Volume (BBtupd) |
60 |
|
|
103 |
|
|
85 |
|
Price ($ per
MMBtu) |
$ |
3.12 |
|
|
$ |
3.25 |
|
|
$ |
3.07 |
|
|
|
|
|
|
|
Basis Swap
Contract (Tetco M2) |
|
|
|
|
|
Volume (BBtupd) |
12 |
|
|
— |
|
|
— |
|
Differential ($ per
MMBtu) |
$ |
(0.59 |
) |
|
— |
|
|
— |
|
|
|
|
|
|
|
Basis Swap
Contract (NGPL MC) |
|
|
|
|
|
Volume (BBtupd) |
38 |
|
|
12 |
|
|
— |
|
Differential ($ per
MMBtu) |
$ |
(0.26 |
) |
|
$ |
(0.26 |
) |
|
$ |
— |
|
|
|
|
|
|
|
Oil: |
|
|
|
|
|
Swap contracts
(LLS) |
|
|
|
|
|
Volume (Bblpd) |
1,748 |
|
|
— |
|
|
— |
|
Price ($ per Bbl) |
$ |
51.97 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
Swap contracts
(WTI) |
|
|
|
|
|
Volume (Bblpd) |
3,353 |
|
|
899 |
|
|
— |
|
Price ($ per Bbl) |
$ |
54.98 |
|
|
$ |
55.31 |
|
|
$ |
— |
|
|
|
|
|
|
|
NGL: |
|
|
|
|
|
C3 Propane Swap
Contracts |
|
|
|
|
|
Volume (Bblpd) |
2,545 |
|
|
— |
|
|
— |
|
Price ($ per Gal) |
$ |
0.64 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
C5+ Swap Contracts |
|
|
|
|
|
Volume (Bblpd) |
250 |
|
|
— |
|
|
— |
|
Price ($ per Gal) |
$ |
1.17 |
|
|
— |
|
|
— |
|
PresentationAn updated
presentation has been posted to the Company’s website. The
presentation can be found at www.gulfportenergy.com under the
“Company Information” section on the “Investor Relations”
page. Information on the Company’s website does not
constitute a portion of this press release.
Conference CallGulfport will
hold a conference call on Wednesday, August 9, 2017 at 8:00
a.m. CDT to discuss its second quarter of 2017 financial and
operational results and to provide an update on the Company’s
recent activities.
Interested parties may listen to the call via
Gulfport’s website at www.gulfportenergy.com or by calling
toll-free at 866-373-3408 or 412-902-1039 for international
callers. A replay of the call will be available for two weeks
at 877-660-6853 or 201-612-7415 for international callers.
The replay passcode is 13622396. The webcast will also be
available for two weeks on the Company’s website and can be
accessed on the Company’s “Investor Relations” page.
About GulfportGulfport Energy
is an independent natural gas and oil company focused on the
exploration and development of natural gas and oil properties in
North America and is one of the largest producers of natural gas in
the contiguous United States. Headquartered in Oklahoma City,
Gulfport holds significant acreage positions in the Utica Shale of
Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in
Oklahoma. In addition, Gulfport holds an acreage position along the
Louisiana Gulf Coast, a position in the Alberta Oil Sands in Canada
through its approximately 25% interest in Grizzly Oil Sands ULC and
has an approximately 25% equity interest in Mammoth Energy
Services, Inc. (NASDAQ:TUSK). For more information, please visit
www.gulfportenergy.com.
Forward Looking StatementsThis
press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the "Securities Act"), and Section 21E of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"). All statements, other
than statements of historical facts, included in this press release
that address activities, events or developments that Gulfport
expects or anticipates will or may occur in the future, future
capital expenditures (including the amount and nature thereof),
business strategy and measures to implement strategy, competitive
strength, goals, expansion and growth of Gulfport's business and
operations, plans, market conditions, references to future success,
reference to intentions as to future matters and other such matters
are forward-looking statements. These statements are based on
certain assumptions and analyses made by Gulfport in light of its
experience and its perception of historical trends, current
conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances. However,
whether actual results and developments will conform with
Gulfport's expectations and predictions is subject to a number of
risks and uncertainties, general economic, market, credit or
business conditions; the opportunities (or lack thereof) that may
be presented to and pursued by Gulfport; Gulfport’s ability to
identify, complete and integrate acquisitions of properties
(including the properties recently acquired from Vitruvian II
Woodford, LLC) and businesses; competitive actions by other oil and
gas companies; changes in laws or regulations; and other factors,
many of which are beyond the control of Gulfport. Information
concerning these and other factors can be found in the Company's
filings with the Securities and Exchange Commission, including its
Forms 10-K, 10-Q and 8-K. Consequently, all of the forward-looking
statements made in this news release are qualified by these
cautionary statements and there can be no assurances that the
actual results or developments anticipated by Gulfport will be
realized, or even if realized, that they will have the expected
consequences to or effects on Gulfport, its business or operations.
Gulfport has no intention, and disclaims any obligation, to update
or revise any forward-looking statements, whether as a result of
new information, future results or otherwise.
Non-GAAP Financial
MeasuresEBITDA is a non-GAAP financial measure equal to
net income (loss), the most directly comparable GAAP financial
measure, plus interest expense, income tax (benefit) expense,
accretion expense, depreciation, depletion and amortization and
impairment of oil and gas properties. Adjusted EBITDA is a non-GAAP
financial measure equal to EBITDA less non-cash derivative (gain)
loss, acquisition expense and (income) loss from equity method
investments. Cash flow from operating activities before changes in
operating assets and liabilities is a non-GAAP financial measure
equal to cash provided by operating activity before changes in
operating assets and liabilities. Adjusted net income is a non-GAAP
financial measure equal to pre-tax net loss less non-cash
derivative (gain) loss, acquisition expense and (income) loss from
equity method investments. The Company has presented EBITDA and
adjusted EBITDA because it uses these measures as an integral part
of its internal reporting to evaluate its performance and the
performance of its senior management. These measures are considered
important indicators of the operational strength of the Company's
business and eliminate the uneven effect of considerable amounts of
non-cash depletion, depreciation of tangible assets and
amortization of certain intangible assets. A limitation of these
measures, however, is that they do not reflect the periodic costs
of certain capitalized tangible and intangible assets used in
generating revenues in the Company's business. Management evaluates
the costs of such tangible and intangible assets and the impact of
related impairments through other financial measures, such as
capital expenditures, investment spending and return on capital.
Therefore, the Company believes that these measures provide useful
information to its investors regarding its performance and overall
results of operations. EBITDA, adjusted EBITDA, adjusted net income
and cash flow from operating activities before changes in operating
assets and liabilities are not intended to be performance measures
that should be regarded as an alternative to, or more meaningful
than, either net income as an indicator of operating performance or
to cash flows from operating activities as a measure of liquidity.
In addition, EBITDA, adjusted EBITDA, adjusted net income and cash
flow from operating activities before changes in operating assets
and liabilities are not intended to represent funds available for
dividends, reinvestment or other discretionary uses, and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The EBITDA, adjusted
EBITDA, adjusted net income and cash flow from operating activities
before changes in operating assets and liabilities presented in
this press release may not be comparable to similarly titled
measures presented by other companies, and may not be identical to
corresponding measures used in the Company's various
agreements.
GULFPORT ENERGY
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited) |
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(In thousands, except share
data) |
Revenues: |
|
|
|
|
|
|
|
Natural
gas sales |
$ |
205,367 |
|
|
$ |
75,761 |
|
|
$ |
383,204 |
|
|
$ |
149,855 |
|
Oil and
condensate sales |
29,468 |
|
|
23,161 |
|
|
53,879 |
|
|
39,000 |
|
Natural
gas liquid sales |
24,247 |
|
|
10,311 |
|
|
55,426 |
|
|
19,604 |
|
Net gain
(loss) on gas, oil and NGL derivatives |
64,871 |
|
|
(137,392 |
) |
|
164,448 |
|
|
(79,657 |
) |
|
323,953 |
|
|
(28,159 |
) |
|
656,957 |
|
|
128,802 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
Lease
operating expenses |
20,721 |
|
|
14,661 |
|
|
40,024 |
|
|
31,318 |
|
Production taxes |
5,139 |
|
|
2,856 |
|
|
9,045 |
|
|
5,967 |
|
Midstream
gathering and processing |
58,945 |
|
|
39,349 |
|
|
106,886 |
|
|
77,001 |
|
Depreciation, depletion and amortization |
82,246 |
|
|
55,652 |
|
|
148,237 |
|
|
121,129 |
|
Impairment of oil and natural gas properties |
— |
|
|
170,621 |
|
|
— |
|
|
389,612 |
|
General
and administrative |
12,257 |
|
|
11,854 |
|
|
24,857 |
|
|
22,474 |
|
Accretion
expense |
410 |
|
|
261 |
|
|
692 |
|
|
508 |
|
Acquisition expense |
1,060 |
|
|
— |
|
|
2,358 |
|
|
— |
|
|
180,778 |
|
|
295,254 |
|
|
332,099 |
|
|
648,009 |
|
INCOME (LOSS)
FROM OPERATIONS |
143,175 |
|
|
(323,413 |
) |
|
324,858 |
|
|
(519,207 |
) |
OTHER (INCOME)
EXPENSE: |
|
|
|
|
|
|
|
Interest
expense |
24,188 |
|
|
16,082 |
|
|
47,667 |
|
|
32,105 |
|
Interest
income |
(48 |
) |
|
(391 |
) |
|
(890 |
) |
|
(485 |
) |
Loss from
equity method investments, net |
13,301 |
|
|
836 |
|
|
18,208 |
|
|
31,573 |
|
Other
income |
(202 |
) |
|
(7 |
) |
|
(518 |
) |
|
(9 |
) |
|
37,239 |
|
|
16,520 |
|
|
64,467 |
|
|
63,184 |
|
INCOME (LOSS) BEFORE
INCOME TAXES |
105,936 |
|
|
(339,933 |
) |
|
260,391 |
|
|
(582,391 |
) |
INCOME TAX BENEFIT |
— |
|
|
(157 |
) |
|
— |
|
|
(348 |
) |
NET INCOME
(LOSS) |
$ |
105,936 |
|
|
$ |
(339,776 |
) |
|
$ |
260,391 |
|
|
$ |
(582,043 |
) |
NET INCOME
(LOSS) PER COMMON SHARE: |
|
|
|
|
|
|
|
Basic |
$ |
0.58 |
|
|
$ |
(2.71 |
) |
|
$ |
1.47 |
|
|
$ |
(4.91 |
) |
Diluted |
$ |
0.58 |
|
|
$ |
(2.71 |
) |
|
$ |
1.47 |
|
|
$ |
(4.91 |
) |
Weighted average common
shares outstanding—Basic |
182,840,213 |
|
|
125,343,723 |
|
|
176,591,166 |
|
|
118,426,654 |
|
Weighted average common
shares outstanding—Diluted |
182,841,730 |
|
|
125,343,723 |
|
|
176,842,239 |
|
|
118,426,654 |
|
GULFPORT ENERGY
CORPORATIONCONSOLIDATED BALANCE
SHEETS(Unaudited) |
|
|
June 30, 2017
|
|
December 31, 2016 |
|
(In thousands, except share data) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
117,555 |
|
|
$ |
1,275,875 |
|
Restricted cash |
— |
|
|
185,000 |
|
Accounts
receivable—oil and natural gas |
164,154 |
|
|
136,761 |
|
Accounts
receivable—related parties |
185 |
|
|
16 |
|
Prepaid
expenses and other current assets |
4,279 |
|
|
3,135 |
|
Short-term derivative instruments |
46,416 |
|
|
3,488 |
|
Total
current assets |
332,589 |
|
|
1,604,275 |
|
Property and
equipment: |
|
|
|
Oil and
natural gas properties, full-cost accounting, $3,109,143
and$1,580,305 excluded from amortization in 2017 and 2016,
respectively |
8,500,790 |
|
|
6,071,920 |
|
Other
property and equipment |
79,521 |
|
|
68,986 |
|
Accumulated depletion, depreciation, amortization and
impairment |
(3,937,656 |
) |
|
(3,789,780 |
) |
Property
and equipment, net |
4,642,655 |
|
|
2,351,126 |
|
Other assets: |
|
|
|
Equity
investments |
256,265 |
|
|
243,920 |
|
Long-term
derivative instruments |
19,761 |
|
|
5,696 |
|
Deferred
tax asset |
4,692 |
|
|
4,692 |
|
Inventories |
19,303 |
|
|
4,504 |
|
Other
assets |
18,890 |
|
|
8,932 |
|
Total
other assets |
318,911 |
|
|
267,744 |
|
Total assets |
$ |
5,294,155 |
|
|
$ |
4,223,145 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable and accrued liabilities |
$ |
495,734 |
|
|
$ |
265,124 |
|
Asset
retirement obligation—current |
195 |
|
|
195 |
|
Short-term derivative instruments |
28,106 |
|
|
119,219 |
|
Current
maturities of long-term debt |
595 |
|
|
276 |
|
Total
current liabilities |
524,630 |
|
|
384,814 |
|
Long-term derivative
instrument |
8,198 |
|
|
26,759 |
|
Asset retirement
obligation—long-term |
43,934 |
|
|
34,081 |
|
Long-term debt, net of
current maturities |
1,802,554 |
|
|
1,593,599 |
|
Total liabilities |
2,379,316 |
|
|
2,039,253 |
|
Commitments and
contingencies |
|
|
|
Preferred stock, $.01
par value; 5,000,000 authorized, 30,000 authorized asredeemable 12%
cumulative preferred stock, Series A; 0 issued and outstanding |
— |
|
|
— |
|
Stockholders’
equity: |
|
|
|
Common
stock - $.01 par value, 200,000,000 authorized, 182,854,921 issued
and outstanding at June 30, 2017 and
158,829,816 at December 31, 2016 |
1,828 |
|
|
1,588 |
|
Paid-in
capital |
4,410,871 |
|
|
3,946,442 |
|
Accumulated other comprehensive loss |
(47,171 |
) |
|
(53,058 |
) |
Retained
deficit |
(1,450,689 |
) |
|
(1,711,080 |
) |
Total
stockholders’ equity |
2,914,839 |
|
|
2,183,892 |
|
Total liabilities and stockholders’ equity |
$ |
5,294,155 |
|
|
$ |
4,223,145 |
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF EBITDA AND CASH
FLOW |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
105,936 |
|
|
$ |
(339,776 |
) |
|
$ |
260,391 |
|
|
$ |
(582,043 |
) |
Interest expense |
24,188 |
|
|
16,082 |
|
|
47,667 |
|
|
32,105 |
|
Income tax benefit |
— |
|
|
(157 |
) |
|
— |
|
|
(348 |
) |
Accretion expense |
410 |
|
|
261 |
|
|
692 |
|
|
508 |
|
Depreciation, depletion
and amortization |
82,246 |
|
|
55,652 |
|
|
148,237 |
|
|
121,129 |
|
Impairment of oil and
gas properties |
— |
|
|
170,621 |
|
|
— |
|
|
389,612 |
|
EBITDA |
$ |
212,780 |
|
|
$ |
(97,317 |
) |
|
$ |
456,987 |
|
|
$ |
(39,037 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
Cash provided by
operating activity |
$ |
144,008 |
|
|
$ |
58,950 |
|
|
$ |
286,653 |
|
|
$ |
142,724 |
|
Adjustments: |
|
|
|
|
|
|
|
Changes in
operating assets and liabilities |
1,033 |
|
|
29,506 |
|
|
(19,910 |
) |
|
28,958 |
|
Operating Cash
Flow |
$ |
145,041 |
|
|
$ |
88,456 |
|
|
$ |
266,743 |
|
|
$ |
171,682 |
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF ADJUSTED EBITDA |
(Unaudited) |
|
|
|
|
|
Three Months ended |
|
Six Months Ended |
|
June 30, 2017 |
|
June 30, 2017 |
|
(In thousands) |
|
|
|
|
EBITDA |
$ |
212,780 |
|
|
$ |
456,987 |
|
|
|
|
|
Adjustments: |
|
|
|
Non-cash derivative
gain |
(59,871 |
) |
|
(166,667 |
) |
Acquisition
expense |
1,060 |
|
|
2,358 |
|
Loss from equity method
investments
|
13,301 |
|
|
18,208 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
167,270 |
|
|
$ |
310,886 |
|
|
|
|
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF ADJUSTED NET
INCOME |
(Unaudited) |
|
|
|
|
|
|
|
Three Months ended |
|
Six Months Ended |
|
|
June 30, 2017 |
|
June 30, 2017 |
|
|
(In thousands, except share data) |
|
|
|
|
|
Pre-tax net loss
excluding adjustments |
|
$ |
105,936 |
|
|
$ |
260,391 |
|
Adjustments: |
|
|
|
|
Non-cash derivative
gain |
|
(59,871 |
) |
|
(166,667 |
) |
Acquisition
expense |
|
1,060 |
|
|
2,358 |
|
Loss from equity method
investments |
|
13,301 |
|
|
18,208 |
|
Pre-tax net income
excluding adjustments |
|
$ |
60,426 |
|
|
$ |
114,290 |
|
|
|
|
|
|
Adjusted net
income |
|
$ |
60,426 |
|
|
$ |
114,290 |
|
|
|
|
|
|
Adjusted net income per
common share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.33 |
|
|
$ |
0.65 |
|
|
|
|
|
|
Diluted |
|
$ |
0.33 |
|
|
$ |
0.65 |
|
|
|
|
|
|
Basic weighted average
shares outstanding |
|
182,840,213 |
|
|
176,591,166 |
|
|
|
|
|
|
Diluted weighted
average shares outstanding |
|
182,841,730 |
|
|
176,842,239 |
|
Investor & Media Contact:
Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-252-4550
Gulfport Energy (NASDAQ:GPOR)
Historical Stock Chart
From Apr 2024 to May 2024
Gulfport Energy (NASDAQ:GPOR)
Historical Stock Chart
From May 2023 to May 2024