Gulfport Energy Corporation Announces Divestiture of Non-Core Assets for a Total Value in Excess of $100 Million and Provides...
December 19 2019 - 4:07PM
Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport” or the
“Company”) announced today that the Company has entered into
agreements to divest certain non-core assets and provided an update
on the continuation of discounted debt repurchases.
Non-Core Asset Divestitures
Gulfport recently entered into a definitive agreement to divest its
water infrastructure assets across its SCOOP position to a
third-party water service provider. Gulfport expects to receive $50
million in cash upon closing and has an opportunity to earn
potential additional incentive payments in excess of $50 million
over the next 15 years, subject to Gulfport’s ability to meet
certain thresholds which will be driven by, among other things, the
Company’s future development program and future water production
levels. The agreement contains no minimum volume commitments. The
Company anticipates closing the transaction during January 2020.
Scotiabank served as financial advisor to Gulfport on the
divestiture of its water infrastructure assets.
Separately, Gulfport also recently entered into
an agreement to divest certain non-operated interests in the Utica
Shale for approximately $29.0 million in cash. The Company
anticipates closing the transaction prior to year-end 2019.
In addition, the previously announced sale of
certain overriding royalty interests associated with assets
Gulfport held in the Bakken closed on December 11, 2019 and, net of
purchase price adjustments, Gulfport received approximately $7
million of total proceeds.
Bond RepurchasesGulfport
announced that during the fourth quarter of 2019, it has
repurchased $85.6 million aggregate principal amount of unsecured
senior notes for $60.1 million in cash. Year-to-date, Gulfport has
repurchased $190.1 million aggregate principal amount of unsecured
senior notes for $140.4 million cash representing a total
discount capture of $49.6 million. These repurchases will result in
cash interest savings to Gulfport of more than $7 million annually.
Gulfport plans to continue to pursue discounted repurchases of its
unsecured senior notes, which allow the Company to reduce its
overall debt burden, improve cash flow through reduced interest
expense and capture discounts that result in value accretion to
shareholders.
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 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, future capital expenditures (including the amount
and nature thereof), business strategy and measures to implement
strategy, repurchases of our outstanding debt or equity, the timing
and completion of asset sales and the proceeds thereof, 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, including the potential divestiture
of certain water infrastructure assets Gulfport holds across its
SCOOP position; 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.
Investor Contact:Jessica Antle
– Director, Investor
Relationsjantle@gulfportenergy.com405-252-4550
Media Contact:ReevemarkPaul
Caminiti / Hugh Burns / Nicholas Leasure212-433-4600
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