Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport” or the
“Company”) today reported financial and operational results for the
quarter and year ended December 31, 2019 and announced its
2020 operational and financial guidance.
Full Year 2019 Highlights:
- Net production averaged 1,374.6 MMcfe per day
- Net loss of $2,002.4 million, or $(12.49) per diluted share,
reflecting a non-cash impairment charge of $2,039.8 million
- Adjusted net income (non-GAAP) of $118.6 million, or $0.72 per
diluted share
- Adjusted EBITDA (non-GAAP) of $814.4 million
- Cash provided by operating activity of $724.0 million
- Generated Free Cash Flow (non-GAAP), excluding working capital
changes as defined and reconciled below, of $37.8 million
- Year end total proved reserves of 4.5 Tcfe
- Completed certain non-core asset divestitures
- Reduced debt by approximately $50 million through discounted
bond repurchases
- Total liquidity pro forma for recent water infrastructure asset
sale of $693 million at year-end 2019
See the supplemental tables at the end of this
press release for a reconciliation of non-GAAP measures including
adjusted net income, EBITDA, adjusted EBITDA and free cash
flow.
2020 Plan Highlights:
- 2020 total planned capital expenditures of $285 million to $310
million, approximately 50% less than 2019
- Plan results in forecasted positive free cash flow in 2020 at
current strip prices
- Forecasted 2020 full year net production is estimated to
average 1,100 MMcfe to 1,150 MMcfe per day
- Plan to maintain or reduce per unit lease operating expense and
midstream gathering and processing expense during 2020 despite
declining year-over-year production
- Approximately 50% of 2020 gas production is hedged at an
average fixed price of $2.86 per MMBtu
David M. Wood, President and Chief Executive
Officer, commented, “Gulfport took many positive steps in 2019 to
address the challenges facing our industry and better position the
Company. We successfully completed our 2019 drilling program within
budget and on target with production estimates. We also completed
several non-core divestitures which improved our liquidity and
continued our efforts to reduce leverage and absolute debt levels
through discounted bond repurchases. We have also strengthened our
board and management team, adding two additional independent
directors in the past two months, and assembled a talented new
management team that we believe will serve the organization well in
the future.”
Mr. Wood continued, “As we enter 2020, remain
committed to allocating capital in a disciplined manner, focusing
on returns and maintaining strong liquidity. Gulfport’s 2020 plan
announced today significantly reduces total capital expenditures as
compared to 2019 levels to account for the current low gas price
environment. At current strip pricing, our 2020 drilling
program will be funded within cash flow ensuring a very strong
liquidity position through 2020 with a relatively low amount of
revolver draw. The large decline in spending during 2020 also
allows us to retain our high value inventory for a better gas price
environment in the future. We continue to focus on cost and
efficiency improvements in every aspect of our business to ensure
we maximize returns during this downturn.”
Balance Sheet and LiquidityAs
of December 31, 2019, Gulfport had a commitment under its
revolving credit facility of $1.0 billion with $120.0 million
drawn. After accounting for cash on hand of approximately $6.1
million and outstanding letters of credit totaling $243.6 million,
the Company’s liquidity as of December 31, 2019 was
approximately $642.5 million. Pro forma for the $50 million
divestiture of water infrastructure assets across Gulfport’s SCOOP
position, the Company’s total liquidity was estimated to be $692.5
million at December 31, 2019.
Bond RepurchasesDuring the
fourth quarter of 2019, Gulfport repurchased $85.6 million
aggregate principal amount of unsecured senior notes for $59.3
million in cash. For the full year 2019, Gulfport repurchased
$190.1 million aggregate principal amount of unsecured senior notes
for $138.8 million cash representing a total discount capture of
$48.6 million. As of February 27, 2020, the Company has
repurchased an additional $10.2 million aggregate principal amount
of unsecured senior notes for $6.9 million in cash during 2020.
Subject to market conditions and Gulfport’s
anticipated 2020 liquidity position, the Company may decide to
opportunistically repurchase its outstanding debt going forward but
is under no obligation to do so.
Production and Realized Prices
The table below summarizes Gulfport’s fourth
quarter of 2019 and full year 2019 production and realized prices
by product:
|
GULFPORT ENERGY CORPORATION |
PRODUCTION SCHEDULE |
(Unaudited) |
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
Production
Volumes: |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Natural gas (MMcf) |
114,425 |
|
116,470 |
|
458,178 |
|
443,742 |
Oil (MBbls) |
451 |
|
635 |
|
2,186 |
|
2,801 |
NGL (MGal) |
47,159 |
|
55,025 |
|
213,129 |
|
251,720 |
Gas equivalent (MMcfe) |
123,866 |
|
128,139 |
|
501,742 |
|
496,505 |
Gas equivalent (Mcfe per
day) |
1,346,374 |
|
1,392,820 |
|
1,374,635 |
|
1,360,289 |
|
|
|
|
|
|
|
|
Average Realized
Prices |
|
|
|
|
|
|
|
(before the impact of
derivatives): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per Mcf) |
$ |
1.78 |
|
$ |
3.16 |
|
$ |
2.00 |
|
$ |
2.53 |
Oil (per Bbl) |
$ |
53.23 |
|
$ |
58.45 |
|
$ |
53.95 |
|
$ |
63.48 |
NGL (per Gal) |
$ |
0.49 |
|
$ |
0.67 |
|
$ |
0.48 |
|
$ |
0.71 |
Gas equivalent (per Mcfe) |
$ |
2.03 |
|
$ |
3.45 |
|
$ |
2.27 |
|
$ |
2.98 |
|
|
|
|
|
|
|
|
Average Realized
Prices: |
|
|
|
|
|
|
|
(including
cash-settlement of derivatives and excluding non-cash derivative
gain or loss): |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per Mcf) |
$ |
2.10 |
|
$ |
2.63 |
|
$ |
2.23 |
|
$ |
2.49 |
Oil (per Bbl) |
$ |
56.53 |
|
$ |
51.57 |
|
$ |
55.81 |
|
$ |
53.97 |
NGL (per Gal) |
$ |
0.59 |
|
$ |
0.64 |
|
$ |
0.54 |
|
$ |
0.66 |
Gas equivalent (per Mcfe) |
$ |
2.37 |
|
$ |
2.92 |
|
$ |
2.51 |
|
$ |
2.86 |
|
|
|
|
|
|
|
|
|
|
|
|
The table below summarizes Gulfport’s fourth
quarter of 2019 and full year 2019 production by asset area:
|
GULFPORT ENERGY CORPORATION |
PRODUCTION BY AREA |
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2019 |
2018 |
|
2019 |
2018 |
Utica
Shale |
|
|
|
|
|
Natural gas (MMcf) |
97,836 |
99,277 |
|
|
387,473 |
379,417 |
Oil (MBbls) |
64 |
65 |
|
|
247 |
299 |
NGL (MGal) |
14,724 |
20,990 |
|
|
76,112 |
113,379 |
Gas equivalent (MMcfe) |
100,324 |
102,665 |
|
|
399,828 |
397,406 |
|
|
|
|
|
|
SCOOP |
|
|
|
|
|
Natural gas (MMcf) |
16,585 |
17,187 |
|
|
70,669 |
64,258 |
Oil (MBbls) |
373 |
393 |
|
|
1,610 |
1,710 |
NGL (MGal) |
32,411 |
34,020 |
|
|
136,948 |
138,261 |
Gas equivalent (MMcfe) |
23,451 |
24,406 |
|
|
99,891 |
94,268 |
|
|
|
|
|
|
Southern
Louisiana |
|
|
|
|
|
Natural gas (MMcf) |
— |
(2 |
) |
|
— |
15 |
Oil (MBbls) |
— |
162 |
|
|
274 |
721 |
NGL (MGal) |
— |
— |
|
|
— |
— |
Gas equivalent (MMcfe) |
— |
968 |
|
|
1,644 |
4,338 |
|
|
|
|
|
|
Other |
|
|
|
|
|
Natural gas (MMcf) |
3 |
9 |
|
|
36 |
51 |
Oil (MBbls) |
14 |
15 |
|
|
56 |
72 |
NGL (MGal) |
24 |
15 |
|
|
69 |
80 |
Gas equivalent (MMcfe) |
91 |
100 |
|
|
380 |
493 |
|
|
|
|
|
|
|
2019 Capital ExpendituresFor
the year ended December 31, 2019, Gulfport’s incurred total
capital expenditures were $602.5 million. Net of the previously
announced divestiture of certain non-operated interests in the
Utica Shale for approximately $29.0 million, Gulfport’s incurred
total capital expenditures were approximately $573.5 million.
Gulfport’s incurred total capital expenditures includes
approximately $488.0 million of operated drilling and completion
(“D&C”) capital expenditures, $76.9 million of non-operated
D&C expenditures and $37.6 million of land capital expenditures
for the year ended December 31, 2019.
2019 Operational Update and 2020 Outlook
The table below summarizes Gulfport’s drilling
and completion activity for full year 2019:
|
GULFPORT ENERGY CORPORATION |
ACTIVITY SUMMARY |
(Unaudited) |
|
|
|
Twelve Months Ended |
|
December 31, |
|
2019 |
Net Wells
Spud |
|
Utica - Operated |
14.6 |
Utica -
Non-Operated |
0.9 |
Total |
15.5 |
|
|
SCOOP - Operated |
8.6 |
SCOOP -
Non-Operated |
1.6 |
Total |
10.2 |
|
|
Net Wells
Turned-to-Sales |
|
Utica - Operated |
41.6 |
Utica -
Non-Operated |
3.3 |
Total |
44.9 |
|
|
SCOOP - Operated |
12.6 |
SCOOP -
Non-Operated |
1.2 |
Total |
13.8 |
|
|
Utica ShaleIn the Utica Shale,
during the twelve months ended December 31, 2019, Gulfport
spud 16 gross (14.6 net) operated wells. The wells drilled during
2019 had an average lateral length of approximately 12,200 feet.
Normalizing to an 8,000 foot lateral length, Gulfport’s average
drilling days during the fourth quarter of 2019 from spud to rig
release totaled approximately 18.6 days, an improvement of 12% from
the 2018 average. In addition, Gulfport turned-to-sales 47 gross
(41.6 net) operated wells with an average stimulated lateral length
of approximately 9,800 feet.
Net production for the full year of 2019 from
Gulfport’s Utica acreage averaged approximately 1,095 MMcfe per
day.
During 2020, Gulfport plans to run on average
approximately one operated rig in the Utica Shale. Gulfport has
budgeted to spud approximately 16 gross (15 net) horizontal Utica
wells with an average lateral length of 10,100 feet. In addition,
Gulfport plans to turn-to-sales 18 gross and net horizontal Utica
wells with an average lateral length of 11,300 feet.
SCOOPIn the SCOOP, during the
twelve months ended December 31, 2019, Gulfport spud 10 gross
(8.6 net) operated wells. The wells drilled during 2019 had an
average lateral length of approximately 8,100 feet. Normalizing to
a 7,500 foot lateral length, Gulfport’s average drilling days
during the fourth quarter of 2019 from spud to rig release totaled
approximately 40.7 days, an improvement of 36% from the 2018
average. In addition, Gulfport turned-to-sales 14 gross (12.6 net)
operated wells with an average stimulated lateral length of
approximately 7,900 feet.
Net production for the full year of 2019 from
Gulfport’s SCOOP acreage averaged approximately 274 MMcfe per
day.
During 2020, Gulfport plans to run on average
approximately 1.5 operated rigs in the SCOOP. Gulfport has budgeted
to spud approximately 10 gross (8 net) horizontal SCOOP wells with
an average lateral length of 9,500 feet. In addition, Gulfport
plans to turn-to-sales 4 gross and net horizontal SCOOP wells with
an average lateral length of 6,500 feet.
2020 Capital Budget and Production
GuidanceThe table below summarizes the Company’s full year
2020 guidance:
|
|
|
|
GULFPORT ENERGY CORPORATION |
COMPANY GUIDANCE |
|
Year Ending |
|
12/31/20 |
|
Low |
|
High |
Forecasted
Production |
|
|
|
Average Daily Gas Equivalent
(MMcfepd) |
1,100 |
|
1,150 |
% Gas |
|
~ 90% |
|
% Liquids |
|
~ 10% |
|
|
|
|
|
Forecasted
Realizations (before the effects of hedges and including
transportation) |
|
|
|
Natural Gas (Differential to
NYMEX Settled Price) - $/Mcf |
($0.70) |
|
($0.80) |
NGL (% of WTI) |
30% |
|
35% |
Oil (Differential to NYMEX
WTI) $/Bbl |
($4.50) |
|
($5.00) |
|
|
|
|
Projected Operating
Costs |
|
|
|
Lease Operating Expense -
$/Mcfe |
$0.14 |
|
$0.16 |
Production Taxes - $/Mcfe |
$0.05 |
|
$0.07 |
Midstream Gathering and
Processing Expense - $/Mcfe |
$0.55 |
|
$0.60 |
Recurring General and
Administrative Expense - $MM(1) |
$69.0 |
|
$74.0 |
(1) This is a
non-GAAP measure. Represents total recurring G&A before
capitalization and compares to 2019 full year total of $74.1
million. Capitalized G&A is expected to be 30% to 35% of total
G&A. |
|
|
|
|
|
Total |
Budgeted Incurred
Operated D&C Expenditures - In Millions: |
$255 |
|
$270 |
Budgeted Incurred
Non-Operated D&C Expenditures - In Millions: |
$10 |
|
$15 |
Budgeted Incurred Land
Expenditures - In Millions: |
$20 |
|
$25 |
Total Incurred Capital
Expenditures - In Millions: |
$285 |
|
$310 |
|
|
|
|
|
Well Count |
|
EstimatedAvg. LateralLength |
Net Operated Wells
Spud |
|
|
|
Utica |
15 |
|
10,100 |
SCOOP |
8 |
|
9,500 |
Total |
23 |
|
9,900 |
|
|
|
|
Net Operated Wells
Turned-to-Sales |
|
|
|
Utica |
18 |
|
11,300 |
SCOOP |
4 |
|
6,500 |
Total |
22 |
|
10,500 |
|
|
|
|
Due to the Company’s low-level of activity during the fourth
quarter of 2019 and previously announced asset sales, Gulfport
forecasts production to average approximately 1,100 MMcfe per day
during the first quarter of 2020.
DerivativesThe table below sets forth the
Company’s hedging positions as of February 26, 2020.
|
GULFPORT ENERGY CORPORATION |
COMMODITY DERIVATIVES - HEDGE POSITION |
(Unaudited) |
|
|
|
|
|
|
|
|
|
1Q2020 |
|
2Q2020 |
|
3Q2020 |
|
4Q2020 |
Natural
gas: |
|
|
|
|
|
|
|
Swap contracts
(NYMEX) |
|
|
|
|
|
|
|
Volume (BBtupd) |
820 |
|
|
774 |
|
|
325 |
|
|
200 |
|
Price ($ per MMBtu) |
$ |
2.77 |
|
|
$ |
2.91 |
|
|
$ |
2.94 |
|
|
$ |
2.94 |
|
|
|
|
|
|
|
|
|
Basis Swap
Contract (OGT) |
|
|
|
|
|
|
|
Volume (BBtupd) |
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
Differential ($ per
MMBtu) |
$ |
(0.54 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.54 |
) |
|
|
|
|
|
|
|
|
Basis Swap
Contract (Transco Zone 4) |
|
|
|
|
|
|
|
Volume (BBtupd) |
60 |
|
|
60 |
|
|
60 |
|
|
60 |
|
Differential ($ per
MMBtu) |
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
Oil: |
|
|
|
|
|
|
|
Swap Contracts
(WTI) |
|
|
|
|
|
|
|
Volume (Bblpd) |
6,000 |
|
|
6,000 |
|
|
6,000 |
|
|
6,000 |
|
Price ($ per Bbl) |
$ |
59.82 |
|
|
$ |
59.82 |
|
|
$ |
59.82 |
|
|
$ |
59.82 |
|
|
|
|
|
|
|
|
|
NGL: |
|
|
|
|
|
|
|
C3 Propane Swap
Contracts |
|
|
|
|
|
|
|
Volume (Bblpd) |
500 |
|
|
500 |
|
|
500 |
|
|
500 |
|
Price ($ per Gal) |
$ |
0.52 |
|
|
$ |
0.52 |
|
|
$ |
0.52 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
2020 |
|
2021 |
|
2022 |
|
2023 |
Natural
gas: |
|
|
|
|
|
|
|
Swap contracts
(NYMEX) |
|
|
|
|
|
|
|
Volume (BBtupd) |
528 |
|
|
— |
|
|
— |
|
|
— |
|
Price ($ per MMBtu) |
$ |
2.86 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Call option contracts
(NYMEX) |
|
|
|
|
|
|
|
Volume (BBtupd) |
— |
|
|
— |
|
|
628 |
|
|
628 |
|
Price ($ per MMBtu) |
$ |
— |
|
|
$ |
— |
|
|
$ |
2.90 |
|
|
$ |
2.90 |
|
|
|
|
|
|
|
|
|
Basis Swap
Contract (OGT) |
|
|
|
|
|
|
|
Volume (BBtupd) |
10 |
|
|
— |
|
|
— |
|
|
— |
|
Differential ($ per
MMBtu) |
$ |
(0.54 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Basis Swap
Contract (Transco Zone 4) |
|
|
|
|
|
|
|
Volume (BBtupd) |
60 |
|
|
— |
|
|
— |
|
|
— |
|
Differential ($ per
MMBtu) |
$ |
(0.05 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Oil: |
|
|
|
|
|
|
|
Swap Contracts
(WTI) |
|
|
|
|
|
|
|
Volume (Bblpd) |
6,000 |
|
|
— |
|
|
— |
|
|
— |
|
Price ($ per Bbl) |
$ |
59.82 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
NGL: |
|
|
|
|
|
|
|
C3 Propane Swap
Contracts |
|
|
|
|
|
|
|
Volume (Bblpd) |
500 |
|
|
— |
|
|
— |
|
|
— |
|
Price ($ per Gal) |
$ |
0.52 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year End 2019 ReservesGulfport
reported year end 2019 total proved reserves of 4.5 Tcfe,
consisting of 4.0 Tcf of natural gas, 18.4 MMBbls of oil and 61.5
MMBbls of natural gas liquids. Due to the current commodity
environment and Gulfport’s commitment to capital discipline and
funding future activities within cash flow, adjustments in the
Company’s long-term development plan resulted in a decrease in year
end 2019 reserves when compared to year end 2018. Gulfport’s year
end 2019 total proved reserves decreased approximately 5% when
compared to its 2018 total proved reserves or, excluding the
previously announced asset sales completed during 2019, Gulfport
estimates 2019 reserves declined 3% versus 2018 total proved
reserves. Approximately 90% of the Gulfport’s proved reserve
revisions during 2019 were associated with our revised development
plan and the decrease in SEC pricing year over year.
The table below provides information regarding
the components driving the 2019 net proved reserve adjustments:
|
GULFPORT ENERGY CORPORATION |
DECEMBER 31, 2019 NET PROVED RESERVE
RECONCILIATION |
(Unaudited) |
|
|
|
Gas Equivalent |
|
BCFE |
|
|
Proved reserve balance at December 31, 2018 |
4,743.3 |
|
Sales of oil and gas reserves
in place |
(76.8 |
) |
Extensions and
discoveries |
1,096.6 |
|
Revisions of prior reserve
estimates: |
|
Reclassification of PUD to unproved under SEC 5-year rule |
(347.2 |
) |
Price revisions |
(296.4 |
) |
Performance revisions |
(90.2 |
) |
Current production |
(501.7 |
) |
|
|
Proved reserve balance
at December 31, 2019 |
4,527.6 |
|
|
|
|
Proved developed reserves totaled approximately
1,984 Bcfe as of December 31, 2019 or approximately 44% of
Gulfport’s proved reserves. Proved undeveloped reserves totaled
approximately 2,544 Bcfe as of December 31, 2019. The
table below summarizes the Company’s 2019 net proved reserves:
|
GULFPORT ENERGY CORPORATION |
DECEMBER 31, 2019 NET PROVED RESERVES |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Natural Gas |
|
Oil |
|
Natural Gas Liquids |
|
GasEquivalent |
|
BCF |
|
MMBBL |
|
MMBBL |
|
BCFE |
|
|
|
|
|
|
|
|
Proved Developed
Producing |
1,739.5 |
|
7.4 |
|
29.1 |
|
1,958.2 |
Proved Developed
Non-Producing |
17.8 |
|
0.5 |
|
0.8 |
|
25.8 |
Proved Undeveloped |
2,291.0 |
|
10.5 |
|
31.6 |
|
2,543.6 |
|
|
|
|
|
|
|
|
Total Proved
Reserves |
4,048.3 |
|
18.4 |
|
61.5 |
|
4,527.6 |
|
|
|
|
|
|
|
|
The following table presents Gulfport’s 2019 net
proved reserves by major operating areas:
|
GULFPORT ENERGY CORPORATION |
DECEMBER 31, 2019 NET PROVED RESERVES BY ASSET
AREA |
(Unaudited) |
|
|
|
2019 |
|
BCFE |
|
|
Utica |
3,221.4 |
SCOOP |
1,304.6 |
Other |
1.6 |
|
|
Total Proved
Reserves |
4,527.6 |
|
|
In accordance with Securities and Exchange
Commission guidelines, at year end 2019, reserve calculations were
based on the average first day of the month price for the prior 12
months. The prices utilized for Gulfport’s year end 2019
reserve report were $55.85 per barrel of oil and $2.58 per MMBtu of
natural gas, in each case as adjusted for transportation fees and
regional price differentials. Utilizing these prices, the
standardized measure of discounted future net cash flows of
Gulfport’s total proved reserves was $1.7 billion and the present
value, discounted at 10% (referred to as “PV-10”), was $1.7 billion
at December 31, 2019. PV-10 is a non-GAAP measure because it
excludes income tax effects. Management believes that the
presentation of the non-GAAP financial measure of PV-10 provides
useful information to investors because it is widely used by
professional analysts and sophisticated investors in evaluating oil
and gas companies. PV-10 is not a measure of financial or operating
performance under GAAP. PV-10 should not be considered as an
alternative to the standardized measure as defined under GAAP. We
have included a reconciliation of PV-10 of proved reserves to the
standardized measure of discounted future net cash flows, the most
directly comparable GAAP measure.
|
GULFPORT ENERGY CORPORATION |
DECEMBER 31, 2019 PV-10 |
(Unaudited) |
|
|
|
SEC Case |
|
($MM) |
|
|
Proved Developed Producing |
$ |
1,360.1 |
Proved Developed
Non-Producing |
23.2 |
Proved Undeveloped |
320.3 |
|
|
Total Proved
Reserves |
$ |
1,703.6 |
|
|
|
The following table reconciles the standardized measure of
future net cash flows to the PV-10 value of Gulfport’s proved
reserves:
|
GULFPORT ENERGY CORPORATION |
DECEMBER 31, 2019 PV-10 RECONCILITATION |
(Unaudited) |
|
|
SEC
Case |
|
($MM) |
|
|
|
Standardized measure of
discounted future net cash flows (1) |
$ |
1,703.6 |
Add: Present value of future
income tax discounted at 10% |
|
— |
|
|
|
PV-10
value |
$ |
1,703.6 |
|
|
|
¹ The standardized
measure represents the present value of estimated future cash
inflows from proved oil and natural gas reserves, less future
development, abandonment, production, and income tax expenses,
discounted at 10% per annum to reflect timing of future cash
flows and using the same pricing assumptions as were used to
calculate PV-10. Standardized measure differs from PV-10 because
standardized measure includes the effect of future income
taxes. |
|
Prior Period Accounting
RestatementGulfport’s new management team, most of which
joined the Company during 2019, conducted a routine year-end
financial review and identified an error related to the transfer of
certain unevaluated leasehold costs to the amortization base. Based
upon the evaluation of the error, Gulfport concluded that the error
resulted from a material weakness in our internal controls over
financial reporting and has developed a plan to remediate the
deficiency which is discussed further in our 2019 form 10-K filed
with Securities and Exchange Commission (“SEC”).
An amended form 10-Q will be filed with the SEC
for the third quarter of 2019 to correct the impact of the error.
The error impacts oil and natural gas properties excluded from
amortization, depreciation, depletion and amortization, impairment
of oil and natural gas properties and deferred income taxes related
to the previously mentioned items. It does not impact the Company's
liquidity and the following key non-GAAP measures: operating cash
flows and adjusted EBITDA.
Inaugural 2019 Corporate Sustainability
ReportGulfport today released its inaugural 2019 Corporate
Sustainability Report. The report highlights Gulfport’s responsible
business practices and dedication to safety, compliance and
continuous improvement.
Mr. Wood, commented, “Gulfport is committed to
promoting and ensuring sound environmental, social and governance
(ESG) practices. We conduct our business in a manner that
respects the health and safety of our personnel and that of the
communities in which we operate. We also invest our time and
money into improving local communities and are committed to the
highest standards of corporate governance. 2019 was a year of
continuous improvement at Gulfport and our recently published
Corporate Sustainability Report highlights the success we had last
year in improving our company as we responsibly developed our
assets.”
The Corporate Sustainability Report outlines
Gulfport’s commitment to environmental excellence, managing and
reducing risks, and our commitment to the well-being of our
employees and the communities in which we operate. The report is
available at gulfportenergy.com/sustainability.
In addition, Gulfport continues to be committed
to having in place the processes and procedures essential to ensure
best practices in corporate governance and the Company recently
adopted Corporate Governance Guidelines as well as a Board
Diversity Policy. The guidelines and policy can be found on
Gulfport’s corporate website at
ir.gulfportenergy.com/corporate-governance.
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
host its fourth quarter and year-end 2019 earnings conference call
on Friday, February 28, 2020 at 9:00 a.m. Central
Time.
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 13695468. 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 non-core assets that include
an approximately 22% equity interest in Mammoth Energy Services,
Inc. (NASDAQ: TUSK) and has a position in the Alberta Oil Sands in
Canada through its 25% interest in Grizzly Oil Sands ULC. For more
information, please visit www.gulfportenergy.com.
Forward Looking StatementsThis
press release includes “forward-looking statements” for purposes of
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934.
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, production and financial guidance, future capital
expenditures (including the amount and nature thereof), business
strategy and measures to implement strategy, repurchases of our
outstanding debt, the timing and completion of asset sales,
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 that might affect the timing and amount of the
repurchase program; 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 and
businesses; Gulfport’s ability to achieve the anticipated benefits
of its strategic initiatives; 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 press 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.
Investors should note that Gulfport announces
financial information in SEC filings, press releases and public
conference calls. Gulfport may use the Investors section of
its website (www.gulfportenergy.com) to communicate with
investors. It is possible that the financial and other
information posted there could be deemed to be material
information. The information on Gulfport’s website is not
part of this filing.
General Reserve Information
Notes:Gulfport’s estimated proved reserves as of
December 31, 2019 were prepared by Netherland, Sewell &
Associates, Inc. (“NSAI”) and NSAI is an independent petroleum
engineering firm.
Investor Contact:Jessica Antle
– Director, Investor
Relationsjantle@gulfportenergy.com405-252-4550
Media ContactReevemarkPaul
Caminiti / Hugh Burns / Nicholas Leasure212-433-4600
|
GULFPORT ENERGY CORPORATION |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
December 31, 2019 |
|
December 31, 2018 |
|
|
|
(In thousands, except share data) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
6,060 |
|
|
$ |
52,297 |
|
Accounts receivable—oil and natural gas sales |
121,210 |
|
|
210,200 |
|
Accounts receivable—joint interest and other |
47,975 |
|
|
22,497 |
|
Prepaid expenses and other current assets |
4,431 |
|
|
10,017 |
|
Short-term derivative instruments |
126,201 |
|
|
21,352 |
|
Total current assets |
305,877 |
|
|
316,363 |
|
Property and equipment: |
|
|
|
Oil and natural gas properties, full-cost accounting, $1,686,666
and $2,873,037 excluded from amortization in 2019 and 2018,
respectively |
10,595,735 |
|
|
10,026,836 |
|
Other property and equipment |
96,719 |
|
|
92,667 |
|
Accumulated depletion, depreciation, amortization and
impairment |
(7,228,660 |
) |
|
(4,640,098 |
) |
Property and equipment, net |
3,463,794 |
|
|
5,479,405 |
|
Other assets: |
|
|
|
Equity investments |
32,044 |
|
|
236,121 |
|
Long-term derivative instruments |
563 |
|
|
— |
|
Deferred tax asset |
7,563 |
|
|
— |
|
Inventories |
5,182 |
|
|
5,344 |
|
Operating lease assets |
14,168 |
|
|
— |
|
Operating lease assets - related parties |
43,270 |
|
|
— |
|
Other assets |
10,358 |
|
|
13,803 |
|
Total other assets |
113,148 |
|
|
255,268 |
|
Total assets |
$ |
3,882,819 |
|
|
$ |
6,051,036 |
|
Liabilities and stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ |
415,218 |
|
|
$ |
518,380 |
|
Short-term derivative instruments |
303 |
|
|
20,401 |
|
Current portion of operating lease liabilities |
13,826 |
|
|
— |
|
Current portion of operating lease liabilities - related
parties |
21,220 |
|
|
— |
|
Current maturities of long-term debt |
631 |
|
|
651 |
|
Total current liabilities |
451,198 |
|
|
539,432 |
|
Long-term derivative
instruments |
53,135 |
|
|
13,992 |
|
Asset retirement
obligation—long-term |
60,355 |
|
|
79,952 |
|
Uncertain tax position
liability |
3,127 |
|
|
3,127 |
|
Non-current operating lease
liabilities |
342 |
|
|
— |
|
Non-current operating lease
liabilities - related parties |
22,050 |
|
|
— |
|
Long-term debt, net of current
maturities |
1,978,020 |
|
|
2,086,765 |
|
Total liabilities |
2,568,227 |
|
|
2,723,268 |
|
Commitments and
contingencies |
|
|
|
Preferred stock, $.01 par value;
5,000,000 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, 159,710,955 issued and outstanding
in 2019 and 162,986,045 in 2018 |
1,597 |
|
|
1,630 |
|
Paid-in capital |
4,207,554 |
|
|
4,227,532 |
|
Accumulated other comprehensive loss |
(46,833 |
) |
|
(56,026 |
) |
Accumulated deficit |
(2,847,726 |
) |
|
(845,368 |
) |
Total stockholders’ equity |
1,314,592 |
|
|
3,327,768 |
|
Total liabilities and stockholders’ equity |
$ |
3,882,819 |
|
|
$ |
6,051,036 |
|
|
GULFPORT ENERGY CORPORATION |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
(In thousands, except share data) |
|
(In thousands, except share data) |
Revenues: |
|
|
|
|
|
|
|
Natural gas sales |
$ |
203,763 |
|
|
$ |
368,554 |
|
|
$ |
918,263 |
|
|
$ |
1,121,815 |
|
Oil and condensate sales |
23,995 |
|
|
37,106 |
|
|
117,937 |
|
|
177,793 |
|
Natural gas liquid sales |
23,312 |
|
|
37,032 |
|
|
101,448 |
|
|
178,915 |
|
Net gain (loss) on natural gas, oil, and NGL derivatives |
30,191 |
|
|
(26,742 |
) |
|
208,360 |
|
|
(123,479 |
) |
|
281,261 |
|
|
415,950 |
|
|
1,346,008 |
|
|
1,355,044 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
Lease operating expenses |
18,330 |
|
|
27,497 |
|
|
82,998 |
|
|
91,640 |
|
Production taxes |
5,987 |
|
|
9,619 |
|
|
28,571 |
|
|
33,480 |
|
Midstream gathering and processing expenses |
70,993 |
|
|
75,642 |
|
|
291,725 |
|
|
290,188 |
|
Depreciation, depletion and amortization |
143,454 |
|
|
133,816 |
|
|
550,108 |
|
|
486,664 |
|
Impairment of oil and natural gas properties |
1,468,328 |
|
|
— |
|
|
2,039,770 |
|
|
— |
|
General and administrative expenses |
12,997 |
|
|
11,833 |
|
|
47,979 |
|
|
49,994 |
|
Restructuring costs |
4,611 |
|
|
— |
|
|
4,611 |
|
|
— |
|
Accretion expense |
766 |
|
|
1,063 |
|
|
3,939 |
|
|
4,119 |
|
|
1,725,466 |
|
|
259,470 |
|
|
3,049,701 |
|
|
956,085 |
|
(LOSS) INCOME FROM
OPERATIONS |
(1,444,205 |
) |
|
156,480 |
|
|
(1,703,693 |
) |
|
398,959 |
|
OTHER EXPENSE (INCOME): |
|
|
|
|
|
|
|
Interest expense |
34,191 |
|
|
36,196 |
|
|
141,786 |
|
|
141,912 |
|
Interest income |
(152 |
) |
|
(152 |
) |
|
(801 |
) |
|
(314 |
) |
Gain on debt extinguishment |
(25,030 |
) |
|
— |
|
|
(48,630 |
) |
|
— |
|
Gain on sale of equity method investments |
— |
|
|
— |
|
|
— |
|
|
(124,768 |
) |
Loss (income) from equity method investments, net |
45,757 |
|
|
(14,622 |
) |
|
210,148 |
|
|
(49,904 |
) |
Other (income) expense, net |
(32 |
) |
|
1,057 |
|
|
3,725 |
|
|
1,542 |
|
|
54,734 |
|
|
22,479 |
|
|
306,228 |
|
|
(31,532 |
) |
(LOSS) INCOME BEFORE INCOME
TAXES |
(1,498,939 |
) |
|
134,001 |
|
|
(2,009,921 |
) |
|
430,491 |
|
INCOME TAX EXPENSE (BENEFIT) |
315,815 |
|
|
— |
|
|
(7,563 |
) |
|
(69 |
) |
NET (LOSS)
INCOME |
$ |
(1,814,754 |
) |
|
$ |
134,001 |
|
|
$ |
(2,002,358 |
) |
|
$ |
430,560 |
|
NET (LOSS) INCOME PER
COMMON SHARE: |
|
|
|
|
|
|
|
Basic |
$ |
(11.36 |
) |
|
$ |
0.78 |
|
|
$ |
(12.49 |
) |
|
$ |
2.46 |
|
Diluted |
$ |
(11.36 |
) |
|
$ |
0.78 |
|
|
$ |
(12.49 |
) |
|
$ |
2.45 |
|
Weighted average common shares
outstanding—Basic |
159,710,049 |
|
|
171,410,309 |
|
|
160,341,125 |
|
|
174,675,840 |
|
Weighted average common shares
outstanding—Diluted |
159,710,049 |
|
|
171,612,471 |
|
|
160,341,125 |
|
|
175,398,706 |
|
|
GULFPORT ENERGY CORPORATION |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
|
|
(In thousands) |
Cash flows from operating activities: |
|
|
|
Net (loss) income |
$ |
(2,002,358 |
) |
|
$ |
430,560 |
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
Accretion expense |
3,939 |
|
|
4,119 |
|
Depletion, depreciation and amortization |
550,108 |
|
|
486,664 |
|
Impairment of oil and natural gas properties |
2,039,770 |
|
|
— |
|
Stock-based compensation expense |
4,911 |
|
|
6,799 |
|
Loss (income) from equity investments, net |
210,289 |
|
|
(49,625 |
) |
Gain on debt extinguishment |
(48,630 |
) |
|
— |
|
Change in fair value of derivative instruments |
(85,230 |
) |
|
65,051 |
|
Deferred income tax (benefit) expense |
(7,563 |
) |
|
1,208 |
|
Amortization of loan costs |
6,328 |
|
|
6,121 |
|
Gain on sale of equity method investments and other assets |
(220 |
) |
|
(124,768 |
) |
Distributions from equity method investments |
2,457 |
|
|
3,206 |
|
Changes in operating assets and liabilities: |
|
|
|
Decrease (increase) in accounts receivable—oil and natural gas
sales |
88,990 |
|
|
(63,427 |
) |
(Increase) decrease in accounts receivable—joint interest and
other |
(25,478 |
) |
|
12,943 |
|
Decrease (increase) in prepaid expenses and other current
assets |
5,586 |
|
|
(5,695 |
) |
Decrease (increase) in other assets |
915 |
|
|
4,066 |
|
(Decrease) increase in accounts payable, accrued liabilities and
other |
(19,548 |
) |
|
9,768 |
|
Settlement of asset retirement obligation |
(273 |
) |
|
(719 |
) |
Net cash
provided by operating activities |
723,993 |
|
|
786,271 |
|
Cash flows from investing activities: |
|
|
|
Additions to other property and equipment |
(5,021 |
) |
|
(7,870 |
) |
Additions to oil and natural gas properties |
(720,057 |
) |
|
(899,083 |
) |
Proceeds from sale of oil and gas properties |
48,527 |
|
|
5,114 |
|
Proceeds from sale of other property and equipment |
267 |
|
|
351 |
|
Proceeds from sale of equity method investments |
— |
|
|
226,487 |
|
Contributions to equity method investments |
(432 |
) |
|
(2,319 |
) |
Distributions from equity method investments |
1,945 |
|
|
446 |
|
Net cash
used in investing activities |
(674,771 |
) |
|
(676,874 |
) |
Cash flows from financing activities: |
|
|
|
Principal payments on borrowings |
(877,697 |
) |
|
(220,575 |
) |
Borrowings on line of credit |
952,000 |
|
|
265,000 |
|
Repurchase of senior notes |
(138,786 |
) |
|
— |
|
Debt issuance costs and loan commitment fees |
(288 |
) |
|
(831 |
) |
Payments on repurchase of stock |
(30,688 |
) |
|
(200,251 |
) |
Net cash
used in financing activities |
(95,459 |
) |
|
(156,657 |
) |
Net
decrease in cash, cash equivalents and restricted cash |
(46,237 |
) |
|
(47,260 |
) |
Cash,
cash equivalents and restricted cash at beginning of period |
52,297 |
|
|
99,557 |
|
Cash,
cash equivalents and restricted cash at end of period |
$ |
6,060 |
|
|
$ |
52,297 |
|
Supplemental
disclosure of cash flow information: |
|
|
|
Interest payments |
$ |
142,664 |
|
|
$ |
132,995 |
|
Income tax receipts |
$ |
(1,794 |
) |
|
$ |
— |
|
Supplemental
disclosure of non-cash transactions: |
|
|
|
Capitalized stock-based compensation |
$ |
5,766 |
|
|
$ |
4,533 |
|
Asset retirement obligation capitalized |
$ |
6,883 |
|
|
$ |
1,452 |
|
Asset retirement obligation removed due to divestiture |
$ |
(30,146 |
) |
|
$ |
— |
|
Interest capitalized |
$ |
3,372 |
|
|
$ |
4,470 |
|
Fair value of contingent consideration asset on date of
divestiture |
$ |
(1,137 |
) |
|
$ |
— |
|
Foreign currency translation gain (loss) on equity method
investments |
$ |
9,193 |
|
|
$ |
(15,487 |
) |
|
|
|
|
|
|
|
|
Explanation and Reconciliation of
Non-GAAP Financial MeasuresEBITDA is a non-GAAP financial
measure equal to net (loss) income, 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 loss (gain), litigation settlement,
insurance proceeds, rig terminations fees, restructuring costs,
gain on debt extinguishment, non-recurring general and
administrative expenses 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 and inclusive of capitalized
expenses incurred during the given period. Free cash flow is a
non-GAAP measure defined as cash flow from operating activities
before changes in operating assets and liabilities (as defined
above) less capital expenditures incurred. Adjusted net income is a
non-GAAP financial measure equal to pre-tax net (loss) income less
non-cash derivative loss (gain), impairment of oil and gas
properties, insurance proceeds, litigation settlement, rig
terminations fees, gain on debt extinguishment and (income) loss
from equity method investments. The Company has presented EBITDA,
adjusted EBITDA, adjusted net income, cash flow from operating
activities before changes in operating assets and liabilities and
free cash flow 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, cash flow from operating activities before changes in
operating assets and liabilities and free cash flow 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, cash
flow from operating activities before changes in operating assets
and liabilities and free cash flow 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 CORPORATION |
RECONCILIATION OF EBITDA |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(1,814,754 |
) |
|
$ |
134,001 |
|
|
$ |
(2,002,358 |
) |
|
$ |
430,560 |
|
Interest expense |
34,191 |
|
|
36,196 |
|
|
141,786 |
|
|
141,912 |
|
Income tax expense
(benefit) |
315,815 |
|
|
— |
|
|
(7,563 |
) |
|
(69 |
) |
Accretion expense |
766 |
|
|
1,063 |
|
|
3,939 |
|
|
4,119 |
|
Depreciation, depletion and
amortization |
143,454 |
|
|
133,816 |
|
|
550,108 |
|
|
486,664 |
|
Impairment of oil and gas
properties |
1,468,328 |
|
|
— |
|
|
2,039,770 |
|
|
— |
|
EBITDA |
$ |
147,800 |
|
|
$ |
305,076 |
|
|
$ |
725,682 |
|
|
$ |
1,063,186 |
|
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF ADJUSTED EBITDA |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
EBITDA |
$ |
147,800 |
|
|
$ |
305,076 |
|
|
$ |
725,682 |
|
|
$ |
1,063,186 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Non-cash derivative loss
(gain) |
13,471 |
|
|
(41,322 |
) |
|
(84,987 |
) |
|
65,051 |
|
Non-cash derivative gain on
contingent payments |
(1,277 |
) |
|
— |
|
|
(243 |
) |
|
— |
|
Litigation settlement |
— |
|
|
158 |
|
|
(158 |
) |
|
1,075 |
|
Insurance proceeds |
— |
|
|
— |
|
|
(83 |
) |
|
(231 |
) |
Rig termination fees |
— |
|
|
— |
|
|
4,176 |
|
|
— |
|
Restructuring costs |
4,611 |
|
|
— |
|
|
4,611 |
|
|
— |
|
Gain on debt
extinguishment |
(25,030 |
) |
|
— |
|
|
(48,630 |
) |
|
— |
|
Gain on sale of equity method
investments |
— |
|
|
— |
|
|
— |
|
|
(124,768 |
) |
Non-recurring general and
administrative expenses |
1,740 |
|
|
3,262 |
|
|
3,922 |
|
|
3,527 |
|
Loss (income) from equity
method investments |
45,757 |
|
|
(14,622 |
) |
|
210,148 |
|
|
(49,904 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
187,072 |
|
|
$ |
252,552 |
|
|
$ |
814,438 |
|
|
$ |
957,936 |
|
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF CASH FLOW |
(Unaudited) |
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
(In thousands) |
|
(In thousands) |
Cash provided by operating activities |
$ |
106,638 |
|
|
$ |
155,474 |
|
|
$ |
723,993 |
|
|
$ |
786,271 |
|
Adjustments: |
|
|
|
|
|
|
|
Changes in operating assets and liabilities |
41,300 |
|
|
62,578 |
|
|
(50,192 |
) |
|
43,064 |
|
Capitalized expenses incurred(1) |
(4,438 |
) |
|
(9,439 |
) |
|
(33,511 |
) |
|
(42,182 |
) |
Operating cash flow |
$ |
143,500 |
|
|
$ |
208,613 |
|
|
$ |
640,290 |
|
|
$ |
787,153 |
|
Capital expenditures
incurred(2) |
(73,063 |
) |
|
(80,324 |
) |
|
(602,478 |
) |
|
(814,747 |
) |
Free cash
flow |
$ |
70,437 |
|
|
$ |
128,289 |
|
|
$ |
37,812 |
|
|
$ |
(27,594 |
) |
|
|
|
|
|
|
|
|
(1) Includes
capitalized general and administrative expense incurred and
capitalized interest expenses incurred |
(2) Incurred
capital expenditures and cash capital expenditures may vary from
period to period due to the cash payment cycle |
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF ADJUSTED NET INCOME |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
(In thousands, except share data) |
|
|
|
|
|
|
|
|
Pre-tax net (loss) income excluding adjustments |
$ |
(1,498,939 |
) |
|
$ |
134,001 |
|
|
$ |
(2,009,921 |
) |
|
$ |
430,491 |
|
Adjustments: |
|
|
|
|
|
|
|
Non-cash derivative loss (gain) |
13,471 |
|
|
(41,322 |
) |
|
(84,987 |
) |
|
65,051 |
|
Non-cash derivative gain on contingent payments |
(1,277 |
) |
|
— |
|
|
(243 |
) |
|
— |
|
Impairment of oil and gas properties |
1,468,328 |
|
|
— |
|
|
2,039,770 |
|
|
— |
|
Litigation settlement |
— |
|
|
158 |
|
|
(158 |
) |
|
1,075 |
|
Insurance proceeds |
— |
|
|
— |
|
|
(83 |
) |
|
(231 |
) |
Rig termination fees |
— |
|
|
— |
|
|
4,176 |
|
|
— |
|
Restructuring costs |
4,611 |
|
|
— |
|
|
4,611 |
|
|
— |
|
Gain on debt extinguishment |
(25,030 |
) |
|
— |
|
|
(48,630 |
) |
|
— |
|
Gain on sale of equity method investments |
— |
|
|
— |
|
|
— |
|
|
(124,768 |
) |
Non-recurring general and administrative expenses |
1,740 |
|
|
3,262 |
|
|
3,922 |
|
|
3,527 |
|
Loss (income) from equity method investments |
45,757 |
|
|
(14,622 |
) |
|
210,148 |
|
|
(49,904 |
) |
Pre-tax net income excluding
adjustments |
$ |
8,661 |
|
|
$ |
81,477 |
|
|
$ |
118,605 |
|
|
$ |
325,241 |
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
8,661 |
|
|
$ |
81,477 |
|
|
$ |
118,605 |
|
|
$ |
325,241 |
|
|
|
|
|
|
|
|
|
Adjusted net income per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.05 |
|
|
$ |
0.48 |
|
|
$ |
0.74 |
|
|
$ |
1.86 |
|
Diluted |
$ |
0.05 |
|
|
$ |
0.47 |
|
|
$ |
0.72 |
|
|
$ |
1.85 |
|
|
|
|
|
|
|
|
|
Basic weighted average shares
outstanding |
159,710,049 |
|
|
171,410,309 |
|
|
160,341,125 |
|
|
174,675,840 |
|
Diluted weighted average
shares outstanding |
159,710,049 |
|
|
171,612,471 |
|
|
164,208,209 |
|
|
175,398,706 |
|
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