Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport” or the
“Company”) today reported financial and operational results for the
three-months and nine-months ended September 30, 2018 and
provided an update on its 2018 activities. Key information
includes the following:
- Net production averaged 1,427.5 MMcfe per day during the third
quarter of 2018.
- Net income of $95.2 million, or $0.55 per diluted share, for
the third quarter of 2018.
- Adjusted net income (as defined and reconciled below) of $84.6
million, or $0.49 per diluted share, for the third quarter of
2018.
- Adjusted EBITDA (as defined and reconciled below) of $238.8
million for the third quarter of 2018.
- Budgeted 2018 total capital expenditures to be approximately
$815 million.
- Increased estimated 2018 full year net production and now
forecast an average of 1,360 MMcfe to 1,370 MMcfe per day, an
increase of approximately 25% to 26% over the average daily net
production of 1,089.2 MMcfe per day during 2017.
- 2018 hedge position of approximately 948 BBtu per day of
natural gas fixed price swaps at an average fixed price of $3.05
per MMBtu and large base level of approximately 1,154 BBtu per day
of natural gas fixed price swaps during 2019 at an average fixed
price of $2.81 per MMBtu.
Third Quarter of 2018 Financial
ResultsFor the third quarter of 2018, Gulfport reported
net income of $95.2 million, or $0.55 per diluted share, on
revenues of $361.0 million. For the third quarter of 2018,
EBITDA (as defined and reconciled below for each period presented)
was $249.4 million and cash flow from operating activities before
changes in operating assets and liabilities (as defined and
reconciled below for each period presented) was $210.5
million. Gulfport’s GAAP net income for the third quarter of
2018 includes the following items:
- Aggregate non-cash derivative loss of $4.1 million.
- Aggregate loss of $0.9 million in connection with a litigation
settlement.
- Aggregate gain of $2.7 million in connection with the sale of
Gulfport's equity interests in certain equity investments.
- Aggregate gain of $12.9 million in connection with Gulfport's
equity interests in certain equity investments.
Excluding the effect of these items, Gulfport’s
financial results for the third quarter of 2018 would have been as
follows:
- Adjusted oil and gas revenues of $365.1 million.
- Adjusted net income of $84.6 million, or $0.49 per diluted
share.
- Adjusted EBITDA of $238.8 million.
Nine-Months Ended September 30,
2018 Financial ResultsFor the nine-month period ended
September 30, 2018, Gulfport reported net income of $296.6
million, or $1.68 per diluted share, on revenues of $939.1
million. For the nine-month period ended September 30,
2018, EBITDA (as defined and reconciled below for each period
presented) was $753.3 million and cash flow from operating
activities before changes in operating assets and liabilities (as
defined and reconciled below for each period presented) was $611.3
million. Gulfport’s GAAP net income for the nine-month period
ended September 30, 2018 includes the following items:
- Aggregate non-cash derivative loss of $106.4 million.
- Aggregate gain of $0.2 million attributable to net insurance
proceeds.
- Aggregate loss of $0.9 million in connection with a litigation
settlement.
- Aggregate gain of $124.8 million in connection with the sale of
Gulfport's equity interests in certain equity investments.
- Aggregate gain of $35.3 million in connection with Gulfport's
equity interests in certain equity investments.
Excluding the effect of these items, Gulfport’s
financial results for the nine-month period ended
September 30, 2018 would have been as follows:
- Adjusted oil and gas revenues of $1,045.5 million.
- Adjusted net income of $243.5 million, or $1.38 per diluted
share.
- Adjusted EBITDA of $700.3 million.
Production and Realized
PricesGulfport’s net daily production for the third
quarter of 2018 averaged approximately 1,427.5 MMcfe per day. For
the third quarter of 2018, Gulfport’s net daily production mix was
comprised of approximately 89% natural gas, 8% natural gas liquids
("NGL") and 3% oil.
Gulfport’s realized prices for the third quarter
of 2018 were $2.44 per Mcf of natural gas, $51.26 per barrel of oil
and $0.57 per gallon of NGL, resulting in a total equivalent price
of $2.75 per Mcfe. Gulfport's realized prices for the third quarter
of 2018 include an aggregate non-cash derivative loss of $4.1
million. Before the impact of derivatives, realized prices for the
third quarter of 2018, including transportation costs, were $2.32
per Mcf of natural gas, $68.73 per barrel of oil and $0.74 per
gallon of NGL, for a total equivalent price of $2.82 per Mcfe.
|
GULFPORT ENERGY CORPORATION |
PRODUCTION SCHEDULE |
(Unaudited) |
|
|
Three months ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
Production
Volumes: |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
Natural gas (MMcf) |
116,994 |
|
|
97,825 |
|
|
327,272 |
|
|
247,012 |
|
Oil (MBbls) |
665 |
|
|
685 |
|
|
2,166 |
|
|
1,849 |
|
NGL (MGal) |
72,427 |
|
|
59,008 |
|
|
196,695 |
|
|
162,483 |
|
Gas equivalent
(MMcfe) |
131,328 |
|
|
110,367 |
|
|
368,366 |
|
|
281,318 |
|
Gas equivalent (Mcfe
per day) |
1,427,479 |
|
|
1,199,636 |
|
|
1,349,326 |
|
|
1,030,468 |
|
|
|
|
|
|
|
|
|
Average
Realized Prices: |
|
|
|
|
|
|
|
(before the
impact of derivatives): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf) |
$ |
2.32 |
|
|
$ |
2.28 |
|
|
$ |
2.30 |
|
|
$ |
2.46 |
|
Oil (per Bbl) |
$ |
68.73 |
|
|
$ |
45.90 |
|
|
$ |
64.96 |
|
|
$ |
46.15 |
|
NGL (per Gal) |
$ |
0.74 |
|
|
$ |
0.57 |
|
|
$ |
0.72 |
|
|
$ |
0.55 |
|
Gas equivalent (per
Mcfe) |
$ |
2.82 |
|
|
$ |
2.61 |
|
|
$ |
2.81 |
|
|
$ |
2.78 |
|
|
|
|
|
|
|
|
|
Average
Realized Prices: |
|
|
|
|
|
|
|
(including cash-settlement of derivatives and excluding
non-cash derivative gain or loss): |
|
|
|
|
|
|
|
|
Natural gas (per
Mcf) |
$ |
2.40 |
|
|
$ |
2.41 |
|
|
$ |
2.44 |
|
|
$ |
2.49 |
|
Oil (per Bbl) |
$ |
53.97 |
|
|
$ |
50.26 |
|
|
$ |
54.68 |
|
|
$ |
49.07 |
|
NGL (per Gal) |
$ |
0.67 |
|
|
$ |
0.54 |
|
|
$ |
0.66 |
|
|
$ |
0.54 |
|
Gas equivalent (per
Mcfe) |
$ |
2.78 |
|
|
$ |
2.74 |
|
|
$ |
2.84 |
|
|
$ |
2.82 |
|
|
|
|
|
|
|
|
|
Average
Realized Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf) |
$ |
2.44 |
|
|
$ |
2.21 |
|
|
$ |
2.22 |
|
|
$ |
3.01 |
|
Oil (per Bbl) |
$ |
51.26 |
|
|
$ |
36.32 |
|
|
$ |
44.10 |
|
|
$ |
52.90 |
|
NGL (per Gal) |
$ |
0.57 |
|
|
$ |
0.41 |
|
|
$ |
0.60 |
|
|
$ |
0.51 |
|
Gas equivalent (per
Mcfe) |
$ |
2.75 |
|
|
$ |
2.41 |
|
|
$ |
2.55 |
|
|
$ |
3.28 |
|
|
|
|
|
|
|
|
|
The table below summarizes Gulfport’s third
quarter of 2018 and nine-month period ended September 30, 2018
production by asset area:
|
GULFPORT ENERGY CORPORATION |
PRODUCTION BY AREA |
(Unaudited) |
|
|
Three months ended |
|
Nine months ended |
|
September 30, |
|
September 30, |
|
2018 |
2017 |
|
2018 |
2017 |
Utica
Shale |
|
|
|
|
|
Natural gas (MMcf) |
100,274 |
|
85,275 |
|
|
280,140 |
|
219,076 |
|
Oil (MBbls) |
74 |
|
113 |
|
|
234 |
|
367 |
|
NGL (MGal) |
29,806 |
|
34,076 |
|
|
92,389 |
|
105,759 |
|
Gas equivalent
(MMcfe) |
104,975 |
|
90,822 |
|
|
294,741 |
|
236,383 |
|
|
|
|
|
|
|
SCOOP(1) |
|
|
|
|
|
Natural gas (MMcf) |
16,704 |
|
12,505 |
|
|
47,071 |
|
27,852 |
|
Oil (MBbls) |
412 |
|
303 |
|
|
1,316 |
|
682 |
|
NGL (MGal) |
42,593 |
|
24,958 |
|
|
104,241 |
|
56,623 |
|
Gas equivalent
(MMcfe) |
25,259 |
|
17,888 |
|
|
69,862 |
|
40,030 |
|
|
|
|
|
|
|
Southern
Louisiana |
|
|
|
|
|
Natural gas (MMcf) |
6 |
|
35 |
|
|
17 |
|
57 |
|
Oil (MBbls) |
167 |
|
256 |
|
|
559 |
|
763 |
|
NGL (MGal) |
— |
|
— |
|
|
— |
|
— |
|
Gas equivalent
(MMcfe) |
1,009 |
|
1,571 |
|
|
3,370 |
|
4,637 |
|
|
|
|
|
|
|
Other |
|
|
|
|
|
Natural gas (MMcf) |
9 |
|
11 |
|
|
43 |
|
27 |
|
Oil (MBbls) |
12 |
|
13 |
|
|
57 |
|
38 |
|
NGL (MGal) |
29 |
|
(26 |
) |
|
65 |
|
101 |
|
Gas equivalent
(MMcfe) |
85 |
|
86 |
|
|
393 |
|
267 |
|
|
|
|
|
|
|
(1) SCOOP 2017 production adjusted for closing
date of February 17, 2017. |
|
2018 Financial Position and
LiquidityAs of September 30, 2018, Gulfport had cash
on hand of approximately $124.6 million. As of September 30,
2018, Gulfport’s $1.4 billion revolving credit facility, under
which Gulfport has an elected commitment of $1.0 billion, had
outstanding borrowings of $60.0 million and outstanding letters of
credit totaling $316.2 million.
As of September 30, 2018, Gulfport's
net debt-to-trailing twelve months EBITDA ratio was 2.1 times.
2018 Capital Budget and Production
Guidance UpdateFor the nine-month period ended
September 30, 2018, Gulfport’s drilling and completion
("D&C") capital expenditures totaled $638.1 million and
non-D&C capital expenditures totaled $96.3 million. For
2018, Gulfport forecasts that its 2018 total capital expenditures
will be at the high-end of the previously provided capital budget
and expects total capital expenditures to be approximately $815
million.
Gulfport remains committed to funding its 2018
capital budget from cash flow as well as dedicated to being within
the range of our previously provided capital budget. Capital spend
will decrease significantly during the fourth quarter of 2018, with
activity decreasing quarter over quarter and remaining nimble in
its operations to adhere to the commitment of capital discipline
and the 2018 capital budget.
Based on results during the nine-month period
ended September 30, 2018, Gulfport has increased its
production guidance and now forecasts its 2018 average daily net
production will be in the range of 1,360 MMcfe to 1,370 MMcfe per
day.
Utilizing current strip pricing at the various
regional pricing points at which the Company sells its natural gas,
Gulfport has improved its natural gas differential guidance and
forecasts that 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 $0.58 to $0.61 per Mcf below NYMEX
settlement prices in 2018. In addition, Gulfport has improved its
oil differential guidance and now forecasts that its 2018 realized
oil price will be in the range of $1.75 to $2.00 per barrel below
WTI. With respect to its expected realized NGL price, Gulfport
reiterates that its 2018 realized NGL price, before the effect of
hedges and including transportation expense, will be approximately
45% to 50% of WTI.
The table below summarizes the Company’s updated
full year 2018 guidance:
|
GULFPORT ENERGY CORPORATION |
COMPANY GUIDANCE |
|
|
Year Ending |
|
|
2018 |
|
Low |
|
High |
Forecasted
Production |
|
|
|
Average Daily Gas
Equivalent (MMcfepd) |
|
1,360 |
|
|
|
1,370 |
|
%
Gas |
~89% |
% Natural
Gas Liquids |
~7% |
%
Oil |
~4% |
|
|
|
|
Forecasted
Realizations (before the effects of hedges) |
|
|
|
Natural
Gas (Differential to NYMEX Settled Price) - $/Mcf |
$ |
(0.58 |
) |
|
$ |
(0.61 |
) |
NGL (% of
WTI) |
|
45 |
% |
|
|
50 |
% |
Oil
(Differential to NYMEX WTI) $/Bbl |
$ |
(1.75 |
) |
|
$ |
(2.00 |
) |
|
|
|
|
|
|
Projected
Operating Costs |
|
|
|
|
|
Lease
Operating Expense - $/Mcfe |
$ |
0.17 |
|
|
$ |
0.19 |
|
Production Taxes - $/Mcfe |
$ |
0.06 |
|
|
$ |
0.08 |
|
Midstream
Gathering and Processing - $/Mcfe |
$ |
0.57 |
|
|
$ |
0.63 |
|
General
and Administrative - $/Mcfe |
$ |
0.12 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
Depreciation,
Depletion and Amortization - $/Mcfe |
$ |
0.95 |
|
|
$ |
1.05 |
|
|
|
|
|
|
Total |
Budgeted
D&C Expenditures - In Millions: |
$ |
685 |
Budgeted
Non-D&C Expenditures - In Millions: |
$ |
130 |
Total Capital
Expenditures - In Millions: |
$ |
815 |
|
|
Net Wells
Drilled |
|
Utica -
Operated |
|
20 |
Utica -
Non-Operated |
|
7 |
Total |
|
27 |
|
|
SCOOP -
Operated |
|
13 |
SCOOP -
Non-Operated |
|
3 |
Total |
|
16 |
|
|
Net Wells
Turned-to-Sales |
|
Utica -
Operated |
|
35 |
Utica -
Non-Operated |
|
10 |
Total |
|
45 |
|
|
SCOOP -
Operated |
|
12 |
SCOOP -
Non-Operated |
|
4 |
Total |
|
16 |
|
|
|
Operational UpdateThe table
below summarizes Gulfport's activity for the nine-month period
ended September 30, 2018 and the number of net wells expected
to be drilled and turned-to-sales for the remainder of 2018:
|
GULFPORT ENERGY CORPORATION |
ACTIVITY SUMMARY |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended |
|
Three Months ended |
|
Three Months ended |
|
|
|
|
|
|
March 31, |
|
June 30, |
|
September 30, |
|
Remaining Wells |
|
Guidance |
|
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Net Wells
Drilled |
|
|
|
|
|
|
|
|
|
|
Utica - Operated |
|
10.0 |
|
|
6.8 |
|
|
2.8 |
|
|
— |
|
|
20.0 |
|
Utica -
Non-Operated |
|
1.8 |
|
|
2.5 |
|
|
2.6 |
|
|
0.1 |
|
|
7.0 |
|
Total |
|
11.8 |
|
|
9.3 |
|
|
5.4 |
|
|
0.1 |
|
|
27.0 |
|
|
|
|
|
|
|
|
|
|
|
|
SCOOP - Operated |
|
3.8 |
|
|
3.7 |
|
|
3.5 |
|
|
2.0 |
|
|
13.0 |
|
SCOOP -
Non-Operated |
|
2.6 |
|
|
0.3 |
|
|
0.1 |
|
|
— |
|
|
3.0 |
|
Total |
|
6.4 |
|
|
4.0 |
|
|
3.6 |
|
|
2.0 |
|
|
16.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Wells
Turned-to-Sales |
|
|
|
|
|
|
|
|
|
|
Utica - Operated |
|
3.0 |
|
|
14.0 |
|
|
11.0 |
|
|
7.0 |
|
|
35.0 |
|
Utica -
Non-Operated |
|
3.1 |
|
|
1.5 |
|
|
4.5 |
|
|
0.9 |
|
|
10.0 |
|
Total |
|
6.1 |
|
|
15.5 |
|
|
15.5 |
|
|
7.9 |
|
|
45.0 |
|
|
|
|
|
|
|
|
|
|
|
|
SCOOP - Operated |
|
6.3 |
|
|
0.5 |
|
|
5.8 |
|
|
— |
|
|
12.0 |
|
SCOOP -
Non-Operated |
|
0.4 |
|
|
0.4 |
|
|
0.1 |
|
|
3.1 |
|
|
4.0 |
|
Total |
|
6.7 |
|
|
0.9 |
|
|
5.9 |
|
|
2.5 |
|
|
16.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Utica ShaleIn the Utica Shale,
during the third quarter of 2018, Gulfport spud 2.8 net operated
wells. In addition, Gulfport turned-to-sales 11 net operated wells
during the third quarter of 2018.
During the third quarter of 2018, net production
from Gulfport’s Utica acreage averaged approximately 1,141.0 MMcfe
per day, an increase of 7% over the second quarter of 2018
and an increase of 16% over the third quarter of 2017.
For the nine-month period ended
September 30, 2018, Gulfport spud 19.6 net operated wells. The
wells drilled during this period had an average lateral length of
approximately 10,350 feet. Normalizing to an 8,000 foot lateral
length, Gulfport's average drilling days from spud to rig release
totaled approximately 19.5 days, in line with the Company's full
year 2017 results. In addition, Gulfport turned-to-sales 28 net
operated wells with an average stimulated lateral length of
approximately 7,700 feet during the nine-month period ended
September 30, 2018.
At present, Gulfport does not have any operated
horizontal drilling rigs running in the play.
SCOOPIn the SCOOP, during the
third quarter of 2018, Gulfport spud 3.5 net operated wells. In
addition, Gulfport turned-to-sales 5.8 net operated wells during
the third quarter of 2018.
During the third quarter of 2018, net production
from Gulfport's SCOOP acreage averaged approximately 274.6 MMcfe
per day, an increase of 11% over the second quarter of 2018 and an
increase of 41% over the third quarter of 2017.
For the nine-month period ended
September 30, 2018, Gulfport spud 11.0 net operated wells. The
wells drilled during this period had an average lateral length of
approximately 8,100 feet. Normalizing to a 7,500 foot lateral
length, Gulfport's average drilling days from spud to rig release
totaled approximately 64.9 days, a 10% improvement from the
Company's full year 2017 results. In addition, Gulfport
turned-to-sales 12.6 net operated wells with an average stimulated
lateral length of approximately 7,750 feet during the nine-month
period ended September 30, 2018.
At present, Gulfport has two operated horizontal drilling rigs
active in the play.
Southern LouisianaAt its West
Cote Blanche Bay and Hackberry fields, during the third quarter of
2018, Gulfport performed zero recompletions at the fields. Net
production during the third quarter of 2018 totaled approximately
11.0 MMcfe per day.
SCOOP Production ResultsDuring
the third quarter of 2018, Gulfport turned-to-sales six gross
Woodford wet gas wells, including the previously announced EJ
Craddock 1R-28X21H and EJ Craddock 2-28X21H wells, and one gross
Sycamore well.
The EJ Craddock 3-28X21H, targeting the Woodford
formation in the SCOOP, has a stimulated lateral length of 9,065
feet and a 24-hour initial production peak rate of 9.9 MMcf per day
and 351 barrels of oil per day. Based upon the composition
analysis, the gas being produced is 1,176 BTU gas and yielding 48.5
barrels of NGL per MMcf of natural gas and results in a natural gas
shrink of 16%. On a three-stream basis, the EJ Craddock
3-28X21H produced at a 24-hour initial production peak rate of
13.3 MMcfe per day, or 1,465 Mcfe per 1,000 foot of lateral, which
is comprised of approximately 62% natural gas, 22% NGL and 16% oil.
During its initial 30 days of production, the EJ Craddock 3-28X21H
cumulatively produced 272.1 MMcf of natural gas and 8.8 thousand
barrels of oil or, on a three-stream basis, at an average 30-day
production rate of 12.0 MMcfe per day, or 1,325 Mcfe per 1,000 foot
of lateral, which is comprised of approximately 63% natural gas,
22% NGL and 15% oil.
The EJ Craddock 4-28X21H, targeting the Woodford
formation in the SCOOP, has a stimulated lateral length of 9,532
feet and a 24-hour initial production peak rate of 9.8 MMcf per day
and 304 barrels of oil per day. Based upon the composition
analysis, the gas being produced is 1,176 BTU gas and yielding 48.5
barrels of NGL per MMcf of natural gas and results in a natural gas
shrink of 16%. On a three-stream basis, the EJ Craddock 4-28X21H
produced at a 24-hour initial production peak rate of 12.9 MMcfe
per day, or 1,352 Mcfe per 1,000 foot of lateral, which is
comprised of approximately 64% natural gas, 22% NGL and 14% oil.
During its initial 30 days of production, the EJ Craddock 4-28X21H
cumulatively produced 264.6 MMcf of natural gas and 8.0 thousand
barrels of oil or, on a three-stream basis, at an average 30-day
production rate of 11.6 MMcfe per day, or 1,214 Mcfe per 1,000 foot
of lateral, which is comprised of approximately 64% natural gas,
22% NGL and 14% oil.
The Lilly 1-15X10H, targeting the Woodford
formation in the SCOOP, has a stimulated lateral length of 7,166
feet and a 24-hour initial production peak rate of 15.3 MMcf per
day and 319 barrels of oil per day. Based upon the composition
analysis, the gas being produced is 1,173 BTU gas and yielding 46.4
barrels of NGL per MMcf of natural gas and results in a natural gas
shrink of 15%. On a three-stream basis, the Lilly 1-15X10H
produced at a 24-hour initial production peak rate of 19.2 MMcfe
per day, or 2,683 Mcfe per 1,000 foot of lateral, which is
comprised of approximately 68% natural gas, 22% NGL and 10% oil.
During its initial 30 days of production, the Lilly 1-15X10H
cumulatively produced 446.3 MMcf of natural gas and 8.3 thousand
barrels of oil or, on a three-stream basis, at an average 30-day
production rate of 18.5 MMcfe per day, or 2,576 Mcfe per 1,000 foot
of lateral, which is comprised of approximately 69% natural gas,
22% NGL and 9% oil.
The Lilly 2-15X10H, targeting the Woodford
formation in the SCOOP, has a stimulated lateral length of
7,110 feet and a 24-hour initial production peak rate of 13.6 MMcf
per day and 404 barrels of oil per day. Based upon the composition
analysis, the gas being produced is 1,173 BTU gas and yielding 46.4
barrels of NGL per MMcf of natural gas and results in a natural gas
shrink of 15%. On a three-stream basis, the Lilly 2-15X10H produced
at a 24-hour initial production peak rate of 17.8 MMcfe per day, or
2,506 Mcfe per 1,000 foot of lateral, which is comprised of
approximately 65% natural gas, 21% NGL and 14% oil. During its
initial 30 days of production, the Lilly 2-15X10H cumulatively
produced 391.4 MMcf of natural gas and 9.2 thousand barrels of oil
or, on a three-stream basis, at an average 30-day production rate
of 16.6 MMcfe per day, or 2,328 Mcfe per 1,000 foot of lateral,
which is comprised of approximately 67% natural gas, 22% NGL and
11% oil.
The Miller 8-13X12H targeting the Sycamore Shale
formation in the SCOOP, has a stimulated lateral length of 9,670
feet and a 24-hour initial production peak rate of 531 barrels of
oil per day and 3.8 MMcf per day. Based upon the composition
analysis, the gas being produced is 1,273 BTU gas and yielding 77.3
barrels of NGL per MMcf of natural gas and results in a natural gas
shrink of 23%. On a three-stream basis, the Miller 8-13X12H
produced at a 24-hour initial production peak rate of 1,303 Boe per
day, which is comprised of approximately 41% oil, 37% natural gas
and 22% NGL.
During its initial 30 days of production, the EJ
Craddock 1R-28X21H cumulatively produced 509.7 MMcf of natural gas
and 10.7 thousand barrels of oil or, on a three-stream basis, at an
average 30-day production rate of 20.9 MMcfe per day, or 2,315 Mcfe
per 1,000 foot of lateral, which is comprised of approximately 72%
natural gas, 18% NGL and 10% oil. During the initial 60 days of
production, the EJ Craddock 1R-28X21H cumulatively produced 984.7
MMcf of natural gas and 19.0 thousand barrels of oil or, on a
three-stream basis, at an average 60-day production rate of 20.0
MMcfe per day, or 2,217 Mcfe per 1,000 foot of lateral, which is
comprised of approximately 72% natural gas, 18% NGL and 10%
oil.
During its initial 30 days of production, the EJ
Craddock 2-28X21H cumulatively produced 514.9 MMcf of natural gas
and 11.9 thousand barrels of oil or, on a three-stream basis, at an
average 30-day production rate of 21.3 MMcfe per day, or 2,142 Mcfe
per 1,000 foot of lateral, which is comprised of approximately 71%
natural gas, 18% NGL and 11% oil. During its initial 60 days of
production, the EJ Craddock 2-28X21H cumulatively produced 980.8
MMcf of natural gas and 22.8 thousand barrels of oil or, on a
three-stream basis, or at an average 60-day production rate of 20.3
MMcfe per day, or 2,040 Mcfe per 1,000 foot of lateral, which is
comprised of approximately 71% natural gas, 18% NGL and 11%
oil.
During its initial 60 days of production, the
Cleburne 7R-12X13H cumulatively produced 732.5 MMcf of natural gas
or at an average 60-day production rate of 12.2 MMcf per day, or
1,301 Mcfe per 1,000 foot of lateral, comprised of approximately
100% natural gas. During its initial 90 days of production, the
Cleburne 7R-12X13H cumulatively produced 1.0 Bcf of natural gas, or
at an average 90-day production rate of 11.5 MMcf per day, or 1,224
Mcfe per 1,000 foot of lateral, comprised of approximately 100%
natural gas.
During its initial 90 days of production, the
Lilly 3-15X10H cumulatively produced 1.1 Bcf of natural gas and
21.3 thousand barrels of oil, or on a three-stream basis, at an
average 90-day production rate of 14.5 MMcfe per day, or 2,130 Mcfe
per 1,000 foot of lateral, which is comprised of approximately 69%
natural gas, 21% NGL and 10% oil.
During its initial 90 days of production, the
Lilly 4-15X10H cumulatively produced 863.1 MMcf of natural gas and
20.2 thousand barrels of oil or, on a three-stream basis, at an
average 90-day production rate of 12.1 MMcfe per day, or 1,651 Mcfe
per 1,000 foot of lateral, which is comprised of approximately 68%
natural gas, 21% NGL and 11% oil.
The table below summarizes the Company’s recent
SCOOP well results:
|
GULFPORT ENERGY CORPORATION |
SCOOP WELL RESULTS SUMMARY |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phase |
Stimulated |
Wellhead |
NGLs |
|
Product Mix(1) |
Average Prod. Rates (MMcfepd) |
|
County |
Window |
Lateral |
BTU |
Per MMcf |
% Shrink |
Gas |
NGLs |
Oil |
24-Hr |
30-Day |
60-Day |
90-Day |
EJ Craddock
1R-28X21H |
Central Grady |
Woodford Wet Gas |
9,008 |
1,133 |
36.9 |
12% |
|
70% |
|
18% |
|
12% |
|
20.9 |
|
20.9 |
|
20.0 |
|
— |
EJ Craddock
2-28X21H |
Central Grady |
Woodford Wet Gas |
9,939 |
1,133 |
36.9 |
12% |
|
69% |
|
17% |
|
14% |
|
21.0 |
|
21.3 |
|
20.3 |
|
— |
EJ Craddock
3-28X21H |
Central Grady |
Woodford Wet Gas |
9,065 |
1,176 |
48.5 |
16% |
|
62% |
|
22% |
|
16% |
|
13.3 |
|
12.0 |
|
— |
|
— |
EJ Craddock
4-28X21H |
Central Grady |
Woodford Wet Gas |
9,532 |
1,176 |
48.5 |
16% |
|
64% |
|
22% |
|
14% |
|
12.9 |
|
11.6 |
|
— |
|
— |
EJ Craddock
8-28X21H |
Central Grady |
Woodford Wet Gas |
7,961 |
1,171 |
47.0 |
16% |
|
55% |
|
19% |
|
26% |
|
19.7 |
|
17.3 |
|
16.1 |
|
15.2 |
Lilly 1-15X10H |
Central Grady |
Woodford Wet Gas |
7,166 |
1,173 |
46.4 |
15% |
|
68% |
|
22% |
|
10% |
|
19.2 |
|
18.5 |
|
— |
|
— |
Lilly 2-15X10H |
Central Grady |
Woodford Wet Gas |
7,110 |
1,173 |
46.4 |
15% |
|
65% |
|
21% |
|
14% |
|
17.8 |
|
16.6 |
|
— |
|
— |
Lilly 3-15X10H |
Central Grady |
Woodford Wet Gas |
6,816 |
1,157 |
43.3 |
14% |
|
66% |
|
20% |
|
14% |
|
18.4 |
|
16.7 |
|
15.7 |
|
14.5 |
Lilly 4-15X10H |
Central Grady |
Woodford Wet Gas |
7,323 |
1,157 |
43.3 |
14% |
|
63% |
|
19% |
|
18% |
|
14.5 |
|
13.1 |
|
12.4 |
|
12.1 |
North Cheyenne
3-10X3H |
Central Grady |
Woodford Wet Gas |
7,218 |
1,162 |
44.1 |
15% |
|
64% |
|
20% |
|
16% |
|
13.2 |
|
12.1 |
|
11.3 |
|
10.6 |
North Cheyenne
4-10X3H |
Central Grady |
Woodford Wet Gas |
6,867 |
1,162 |
44.1 |
15% |
|
62% |
|
19% |
|
19% |
|
14.6 |
|
13.4 |
|
12.6 |
|
11.9 |
North Cheyenne
5-10X3H |
Central Grady |
Woodford Wet Gas |
5,782 |
1,152 |
41.7 |
14% |
|
64% |
|
19% |
|
17% |
|
20.6 |
|
18.4 |
|
16.9 |
|
15.9 |
North Cheyenne
6-10X3H |
Central Grady |
Woodford Wet Gas |
6,002 |
1,152 |
41.7 |
14% |
|
64% |
|
19% |
|
17% |
|
19.4 |
|
16.8 |
|
15.3 |
|
14.1 |
North Cheyenne
7-10X3H |
Central Grady |
Woodford Wet Gas |
6,379 |
1,162 |
43.9 |
15% |
|
63% |
|
20% |
|
17% |
|
12.3 |
|
12.7 |
|
12.1 |
|
11.5 |
North Cheyenne
8-10X3H |
Central Grady |
Woodford Wet Gas |
6,413 |
1,162 |
43.9 |
15% |
|
62% |
|
19% |
|
18% |
|
17.2 |
|
16.1 |
|
15.2 |
|
14.2 |
Pauline 3-27X22H |
Central Grady |
Woodford Wet Gas |
4,322 |
1,212 |
57.3 |
18% |
|
49% |
|
21% |
|
30% |
|
8.8 |
|
8.0 |
|
7.4 |
|
6.8 |
Pauline 4-27X22H |
Central Grady |
Woodford Wet Gas |
7,978 |
1,212 |
57.3 |
18% |
|
52% |
|
22% |
|
26% |
|
17.3 |
|
16.1 |
|
15.0 |
|
14.1 |
Pauline 5-27X22H |
Central Grady |
Woodford Wet Gas |
7,929 |
1,216 |
57.4 |
22% |
|
50% |
|
22% |
|
27% |
|
22.2 |
|
19.1 |
|
17.4 |
|
16.0 |
Pauline 6-27X22H |
Central Grady |
Woodford Wet Gas |
7,273 |
1,216 |
57.4 |
22% |
|
50% |
|
22% |
|
28% |
|
22.9 |
|
19.6 |
|
17.7 |
|
16.2 |
Pauline 8-27X22H |
Central Grady |
Woodford Wet Gas |
7,658 |
1,210 |
58.8 |
19% |
|
51% |
|
22% |
|
27% |
|
18.4 |
|
18.6 |
|
17.6 |
|
16.6 |
Vinson 2-22X27H |
SE
Grady |
Woodford Wet Gas |
8,539 |
1,118 |
35.7 |
11% |
|
79% |
|
19% |
|
2% |
|
16.5 |
|
15.7 |
|
14.4 |
|
13.4 |
Vinson 3R-22X27H |
SE
Grady |
Woodford Wet Gas |
8,475 |
1,118 |
35.7 |
11% |
|
79% |
|
19% |
|
2% |
|
19.0 |
|
18.7 |
|
17.3 |
|
16.3 |
Winham 7-22H |
S
Grady |
Woodford Wet Gas |
4,898 |
1,146 |
40.0 |
13% |
|
64% |
|
18% |
|
18% |
|
23.4 |
|
19.9 |
|
19.0 |
|
17.9 |
Cleburne 7R-12X13H |
W
Grady |
Woodford Dry Gas |
9,386 |
— |
— |
— |
|
100% |
|
— |
|
— |
|
14.5 |
|
13.1 |
|
12.2 |
|
11.5 |
Miller 8-13X12H |
Central Grady |
Upper
Sycamore |
9,670 |
1,273 |
77.3 |
23% |
|
37% |
|
22% |
|
41% |
|
7.8 |
|
— |
|
— |
|
— |
Serenity 5-22H |
S
Grady |
Lower
Sycamore |
5,980 |
1,143 |
39.2 |
13% |
|
70% |
|
19% |
|
11% |
|
15.7 |
|
15.8 |
|
15.4 |
|
15.0 |
Lauper 4-26H |
SE
Grady |
Springer Oil |
4,527 |
1,418 |
120.8 |
34% |
|
10% |
|
11% |
|
79% |
|
4.7 |
|
3.2 |
|
2.9 |
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: All
well results presented are based upon three-stream production data
and assume contractual ethane recovery. |
1. Product
mix calculated utilizing 24-hr initial production rate. |
|
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. The table below sets forth the Company's hedging positions
as of October 31, 2018.
|
GULFPORT ENERGY CORPORATION |
COMMODITY DERIVATIVES - HEDGE
POSITION |
(Unaudited) |
|
|
4Q2018 |
|
|
|
|
Natural
gas: |
|
|
|
|
|
Swap contracts
(NYMEX) |
|
|
|
|
|
Volume (BBtupd) |
1,010 |
|
|
|
|
|
Price ($ per
MMBtu) |
$ |
3.01 |
|
|
|
|
|
|
|
|
|
|
|
Swaption
contracts (NYMEX) |
|
|
|
|
|
Volume (BBtupd) |
50 |
|
|
|
|
|
Price ($ per
MMBtu) |
$ |
3.13 |
|
|
|
|
|
|
|
|
|
|
|
Basis Swap
contracts (Transco Zone 4) |
|
|
|
|
|
Volume (BBtupd) |
40 |
|
|
|
|
|
Price ($ per
MMBtu) |
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
Oil: |
|
|
|
|
|
Swap contracts
(LLS) |
|
|
|
|
|
Volume (Bblpd) |
2,000 |
|
|
|
|
|
Price ($ per Bbl) |
$ |
56.22 |
|
|
|
|
|
|
|
|
|
|
|
Swap contracts
(WTI) |
|
|
|
|
|
Volume (Bblpd) |
4,500 |
|
|
|
|
|
Price ($ per Bbl) |
$ |
53.72 |
|
|
|
|
|
|
|
|
|
|
|
NGL: |
|
|
|
|
|
C3 Propane Swap
contracts |
|
|
|
|
|
Volume (Bblpd) |
4,250 |
|
|
|
|
|
Price ($ per Gal) |
$ |
0.70 |
|
|
|
|
|
|
|
|
|
|
|
C5+ Swap
contracts |
|
|
|
|
|
Volume (Bblpd) |
500 |
|
|
|
|
|
Price ($ per Gal) |
$ |
1.11 |
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
2019 |
|
|
Natural
gas: |
|
|
|
|
|
Swap contracts
(NYMEX) |
|
|
|
|
|
Volume (BBtupd) |
948 |
|
|
1,154 |
|
|
|
Price ($ per MMBtu) |
$ |
3.05 |
|
|
$ |
2.81 |
|
|
|
|
|
|
|
|
|
Swaption
contracts (NYMEX) |
|
|
|
|
|
Volume (BBtupd) |
43 |
|
|
135 |
|
|
|
Price ($ per
MMBtu) |
$ |
3.10 |
|
|
$ |
3.07 |
|
|
|
|
|
|
|
|
|
Basis Swap
contracts (NGPL MC) |
|
|
|
|
|
Volume (BBtupd) |
12 |
|
|
— |
|
|
|
Differential ($ per
MMBtu) |
$ |
(0.26 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
Basis Swap
contracts (Transco Zone 4) |
|
|
|
|
|
Volume (BBtupd) |
10 |
|
|
60 |
|
|
|
Differential ($ per
MMBtu) |
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
Oil: |
|
|
|
|
|
Swap contracts
(LLS) |
|
|
|
|
|
Volume (Bblpd) |
1,507 |
|
|
1,000 |
|
|
|
Price ($ per Bbl) |
$ |
56.22 |
|
|
$ |
59.55 |
|
|
|
|
|
|
|
|
|
Swap contracts
(WTI) |
|
|
|
|
|
Volume (Bblpd) |
4,779 |
|
|
4,000 |
|
|
|
Price ($ per Bbl) |
$ |
54.29 |
|
|
$ |
58.28 |
|
|
|
|
|
|
|
|
|
NGL: |
|
|
|
|
|
C2 Ethane Swap
contracts |
|
|
|
|
|
Volume (Bblpd) |
— |
|
|
1,000 |
|
|
|
Price ($ per Gal) |
— |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
C3 Propane Swap
contracts |
|
|
|
|
|
Volume (Bblpd) |
4,063 |
|
|
3,815 |
|
|
|
Price ($ per Gal) |
$ |
0.69 |
|
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
C5 Pentane Swap
contracts |
|
|
|
|
|
Volume (Bblpd) |
500 |
|
|
500 |
|
|
|
Price ($ per Gal) |
$ |
1.11 |
|
|
1.29 |
|
|
|
|
|
|
|
|
|
|
|
|
Stock Repurchase ProgramAs of
October 31, 2018, the Company has repurchased 10.5 million shares
at a weighted-average share price of $10.47 during 2018. Since
initiating the share repurchase program in February 2018, Gulfport
has reduced its shares outstanding by over five percent.
Gulfport's board of directors has authorized the
Company to acquire up to $200 million of its outstanding common
stock during 2018 and approximately $90 million remains under the
current authorization. Purchases under the repurchase program
may be made from time to time in open market or privately
negotiated transactions, and will be subject to market conditions,
applicable legal requirements, contractual obligations and other
factors. The repurchase program does not require the Company to
acquire any specific number of shares. The Company intends to
purchase shares under the repurchase program opportunistically with
available funds while maintaining sufficient liquidity to fund its
2018 capital development program. This repurchase program is
authorized to extend through December 31, 2018 and may be suspended
from time to time, modified, extended or discontinued by the board
of directors at any time.
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 Friday, November 2, 2018 at 8:00
a.m. CDT to discuss its third quarter of 2018 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, has 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 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 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; 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.
Non-GAAP Financial
MeasuresEBITDA is a non-GAAP financial measure equal to
net income, the most directly comparable GAAP financial measure,
plus interest expense, income tax (benefit) expense, accretion
expense and depreciation, depletion and amortization. Adjusted
EBITDA is a non-GAAP financial measure equal to EBITDA less
non-cash derivative loss (gain), litigation settlement, insurance
proceeds, gain on sale of equity method investments 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 income less non-cash derivative loss (gain), litigation
settlement, insurance proceeds, gain on sale of equity method
investments 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.
Investor & Media
Contact:Jessica Wills – Director, Investor
Relationsjwills@gulfportenergy.com405-252-4550
Media Contact:Adam Weiner /
Cameron NjaaKekst CNCadam.weiner@kekstcnc.com /
cameron.njaa@kekstcnc.com212-521-4800
GULFPORT ENERGY
CORPORATIONCONSOLIDATED BALANCE
SHEETS (Unaudited)
|
|
|
|
|
September 30, 2018 |
|
December 31, 2017 |
|
(In thousands, except share data) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
$ |
124,571 |
|
|
$ |
99,557 |
|
Accounts
receivable—oil and natural gas sales |
157,391 |
|
|
146,773 |
|
Accounts
receivable—joint interest and other |
39,511 |
|
|
35,440 |
|
Accounts
receivable—related parties |
79 |
|
|
— |
|
Prepaid
expenses and other current assets |
9,742 |
|
|
4,912 |
|
Short-term derivative instruments |
19,809 |
|
|
78,847 |
|
Total
current assets |
351,103 |
|
|
365,529 |
|
Property and
equipment: |
|
|
|
Oil and
natural gas properties, full-cost accounting, $2,925,145 and
$2,912,974 excluded from amortization in 2018 and 2017,
respectively |
9,936,714 |
|
|
9,169,156 |
|
Other
property and equipment |
92,388 |
|
|
86,754 |
|
Accumulated depletion, depreciation, amortization and
impairment |
(4,506,306 |
) |
|
(4,153,733 |
) |
Property
and equipment, net |
5,522,796 |
|
|
5,102,177 |
|
Other assets: |
|
|
|
Equity
investments |
232,529 |
|
|
302,112 |
|
Long-term
derivative instruments |
3,530 |
|
|
8,685 |
|
Deferred
tax asset |
— |
|
|
1,208 |
|
Inventories |
8,234 |
|
|
8,227 |
|
Other
assets |
17,038 |
|
|
19,814 |
|
Total
other assets |
261,331 |
|
|
340,046 |
|
Total assets |
$ |
6,135,230 |
|
|
$ |
5,807,752 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable and accrued liabilities |
$ |
582,464 |
|
|
$ |
553,609 |
|
Asset
retirement obligation—current |
120 |
|
|
120 |
|
Short-term derivative instruments |
62,601 |
|
|
32,534 |
|
Current
maturities of long-term debt |
647 |
|
|
622 |
|
Total
current liabilities |
645,832 |
|
|
586,885 |
|
Long-term derivative
instruments |
15,101 |
|
|
2,989 |
|
Asset retirement
obligation—long-term |
78,411 |
|
|
74,980 |
|
Deferred tax
liability |
3,046 |
|
|
— |
|
Other non-current
liabilities |
— |
|
|
2,963 |
|
Long-term debt, net of
current maturities |
2,100,825 |
|
|
2,038,321 |
|
Total liabilities |
2,843,215 |
|
|
2,706,138 |
|
Commitments and
contingencies |
|
|
|
Preferred stock, $.01
par value; 5,000,000 authorized, 30,000 authorized as redeemable
12% cumulative preferred stock, Series A; 0 issued and
outstanding |
— |
|
|
— |
|
Stockholders’
equity: |
|
|
|
Common
stock - $.01 par value, 200,000,000 authorized, 173,218,643 issued
and outstanding at September 30, 2018 and 183,105,910 at December
31, 2017 |
1,732 |
|
|
1,831 |
|
Paid-in
capital |
4,316,006 |
|
|
4,416,250 |
|
Accumulated other comprehensive loss |
(46,354 |
) |
|
(40,539 |
) |
Retained
deficit |
(979,369 |
) |
|
(1,275,928 |
) |
Total
stockholders’ equity |
3,292,015 |
|
|
3,101,614 |
|
Total liabilities and stockholders’ equity |
$ |
6,135,230 |
|
|
$ |
5,807,752 |
|
|
|
|
|
|
|
|
|
GULFPORT ENERGY
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
|
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
(In thousands, except share
data) |
Revenues: |
|
|
|
|
|
|
|
Natural gas sales |
$ |
271,167 |
|
|
$ |
223,340 |
|
|
$ |
753,261 |
|
|
$ |
606,544 |
|
Oil and
condensate sales |
45,682 |
|
|
31,459 |
|
|
140,687 |
|
|
85,338 |
|
Natural
gas liquid sales |
53,776 |
|
|
33,559 |
|
|
141,883 |
|
|
88,985 |
|
Net
(loss) gain on gas, oil and NGL derivatives |
(9,663 |
) |
|
(22,860 |
) |
|
(96,737 |
) |
|
141,588 |
|
|
360,962 |
|
|
265,498 |
|
|
939,094 |
|
|
922,455 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
Lease
operating expenses |
22,325 |
|
|
20,020 |
|
|
64,143 |
|
|
60,044 |
|
Production taxes |
9,348 |
|
|
5,419 |
|
|
23,861 |
|
|
14,464 |
|
Midstream
gathering and processing |
78,913 |
|
|
69,372 |
|
|
214,546 |
|
|
176,258 |
|
Depreciation, depletion and amortization |
119,915 |
|
|
106,650 |
|
|
352,848 |
|
|
254,887 |
|
General
and administrative |
15,848 |
|
|
13,065 |
|
|
42,955 |
|
|
37,922 |
|
Accretion
expense |
1,037 |
|
|
456 |
|
|
3,056 |
|
|
1,148 |
|
Acquisition expense |
— |
|
|
33 |
|
|
— |
|
|
2,391 |
|
|
247,386 |
|
|
215,015 |
|
|
701,409 |
|
|
547,114 |
|
INCOME FROM
OPERATIONS |
113,576 |
|
|
50,483 |
|
|
237,685 |
|
|
375,341 |
|
OTHER (INCOME)
EXPENSE: |
|
|
|
|
|
|
|
Interest
expense |
33,253 |
|
|
27,130 |
|
|
100,922 |
|
|
74,797 |
|
Interest
income |
(92 |
) |
|
(37 |
) |
|
(162 |
) |
|
(927 |
) |
Litigation settlement |
917 |
|
|
— |
|
|
917 |
|
|
|
Insurance
proceeds |
— |
|
|
— |
|
|
(231 |
) |
|
— |
|
Gain on
sale of equity method investments |
(2,733 |
) |
|
— |
|
|
(124,768 |
) |
|
(12,523 |
) |
(Income)
loss from equity method investments, net |
(12,858 |
) |
|
2,737 |
|
|
(35,282 |
) |
|
33,468 |
|
Other
income |
(61 |
) |
|
(345 |
) |
|
(201 |
) |
|
(863 |
) |
|
18,426 |
|
|
29,485 |
|
|
(58,805 |
) |
|
93,952 |
|
INCOME BEFORE INCOME
TAXES |
95,150 |
|
|
20,998 |
|
|
296,490 |
|
|
281,389 |
|
INCOME TAX EXPENSE
(BENEFIT) |
— |
|
|
2,763 |
|
|
(69 |
) |
|
2,763 |
|
NET
INCOME |
$ |
95,150 |
|
|
$ |
18,235 |
|
|
$ |
296,559 |
|
|
$ |
278,626 |
|
NET INCOME PER
COMMON SHARE: |
|
|
|
|
|
|
|
Basic |
$ |
0.55 |
|
|
$ |
0.10 |
|
|
$ |
1.69 |
|
|
$ |
1.56 |
|
Diluted |
$ |
0.55 |
|
|
$ |
0.10 |
|
|
$ |
1.68 |
|
|
$ |
1.56 |
|
Weighted average common
shares outstanding—Basic |
173,057,538 |
|
|
182,957,416 |
|
|
175,776,312 |
|
|
178,736,569 |
|
Weighted average common
shares outstanding—Diluted |
173,304,914 |
|
|
183,008,436 |
|
|
176,440,461 |
|
|
179,130,570 |
|
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF EBITDA AND CASH
FLOW |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
Net income |
$ |
95,150 |
|
|
$ |
18,235 |
|
|
$ |
296,559 |
|
|
$ |
278,626 |
|
Interest expense |
33,253 |
|
|
27,130 |
|
|
100,922 |
|
|
74,797 |
|
Income tax expense
(benefit) |
— |
|
|
2,763 |
|
|
(69 |
) |
|
2,763 |
|
Accretion expense |
1,037 |
|
|
456 |
|
|
3,056 |
|
|
1,148 |
|
Depreciation, depletion
and amortization |
119,915 |
|
|
106,650 |
|
|
352,848 |
|
|
254,887 |
|
EBITDA |
$ |
249,355 |
|
|
$ |
155,234 |
|
|
$ |
753,316 |
|
|
$ |
612,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
Cash provided by
operating activity |
$ |
197,912 |
|
|
$ |
205,080 |
|
|
$ |
608,956 |
|
|
$ |
491,733 |
|
Adjustments: |
|
|
|
|
|
|
|
Changes
in operating assets and liabilities |
12,558 |
|
|
(37,018 |
) |
|
2,327 |
|
|
(56,928 |
) |
Operating Cash
Flow |
$ |
210,470 |
|
|
$ |
168,062 |
|
|
$ |
611,283 |
|
|
$ |
434,805 |
|
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF ADJUSTED EBITDA |
(Unaudited) |
|
|
|
|
|
Three Months ended |
|
Nine Months Ended |
|
September 30, 2018 |
|
September 30, 2018 |
|
(In thousands) |
|
|
|
|
EBITDA |
$ |
249,355 |
|
|
$ |
753,316 |
|
|
|
|
|
Adjustments: |
|
|
|
Non-cash derivative
loss |
4,125 |
|
|
106,373 |
|
Litigation
settlement |
917 |
|
|
917 |
|
Insurance proceeds |
— |
|
|
(231 |
) |
Gain on sale of equity
method investments |
(2,733 |
) |
|
(124,768 |
) |
Income from equity
method investments |
(12,858 |
) |
|
(35,282 |
) |
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
238,806 |
|
|
$ |
700,325 |
|
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF ADJUSTED NET
INCOME |
(Unaudited) |
|
|
|
|
|
|
|
Three Months ended |
|
Nine Months Ended |
|
|
September 30, 2018 |
|
September 30, 2018 |
|
|
(In thousands, except share
data) |
|
|
|
|
|
Pre-tax net income
excluding adjustments |
|
$ |
95,150 |
|
|
$ |
296,490 |
|
Adjustments: |
|
|
|
|
Non-cash derivative
loss |
|
4,125 |
|
|
106,373 |
|
Litigation
settlement |
|
917 |
|
|
917 |
|
Insurance proceeds |
|
— |
|
|
(231 |
) |
Gain on sale of equity
method investments |
|
(2,733 |
) |
|
(124,768 |
) |
Income from equity
method investments |
|
(12,858 |
) |
|
(35,282 |
) |
Pre-tax net income
excluding adjustments |
|
$ |
84,601 |
|
|
$ |
243,499 |
|
|
|
|
|
|
Adjusted net
income |
|
$ |
84,601 |
|
|
$ |
243,499 |
|
|
|
|
|
|
Adjusted net income per
common share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.49 |
|
|
$ |
1.39 |
|
|
|
|
|
|
Diluted |
|
$ |
0.49 |
|
|
$ |
1.38 |
|
|
|
|
|
|
Basic weighted average
shares outstanding |
|
173,057,538 |
|
|
175,776,312 |
|
|
|
|
|
|
Diluted weighted
average shares outstanding |
|
173,304,914 |
|
|
176,440,461 |
|
|
|
|
|
|
|
|
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