Current GPOR Stock Info

Gulfport Energy Corporation (ticker: GPOR) has announced that:

  • 2018 CapEx budget will be funded within cash flow,
  • $100 million outstanding common stock will be repurchased this year,
  • 2018 operational outlook forecasts 1,250 MMcfe/d

2018 CapEx and production guidance

The 2018 budget includes approximately $630-$685 million for D&C activities and approximately $140-$150 million for non-D&C activities, including midstream capital expenditures associated with investment in Strike Force Midstream LLC and leasehold activities in 2018.

With this level of capital spending, Gulfport said it forecasts its 2018 average daily net production will be in the range of 1,250 MMcfe to 1,300 MMcfe per day, an increase of approximately 15% to 19% over 2017.

Gulfport CEO and President Michael G. Moore said, “In the current environment, we are dedicated to strict capital discipline and are in the position to be able to generate free cash flow for our shareholders while also providing strong production growth.

“Based on current strip pricing, Gulfport forecasts our full-year 2018 total capital program to be funded entirely within cash flow while growing production approximately 15% to 19% over 2017.

“Furthermore, our robust hedge portfolio underpins our 2018 capital program with approximately 80% of our expected 2018 natural gas production priced at over $3.05 per MMBtu, providing a high degree of certainty surrounding the cash flow profile of our 2018 program.

“In addition to our planned operational activity for 2018, we are pleased to announce our board has recently approved a stock repurchase program. We intend to opportunistically repurchase our stock during 2018 and will utilize our available liquidity, which will include forecasted free cash flow generated and, potentially, proceeds from the sale of certain investments. The plan authorizes up to $100 million of share repurchases, which at today’s share price represents approximately 5% of the company’s outstanding shares,” Moore said.

The table below summarizes the company’s full-year 2018 guidance:

 

 
GULFPORT ENERGY CORPORATION
COMPANY GUIDANCE
  Year Ending
  12/31/2018
  Low   High
Forecasted Production      
Average Daily Gas Equivalent (MMcfepd)   1,250       1,300
% 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)   $ (0.72)
NGL (% of WTI)   45%     50%
Oil (Differential to NYMEX WTI) $/Bbl $ (3.00)   $ (3.50)
       
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:      
Operated $ 490   $ 525
Non-Operated $ 140   $ 160
Total Budgeted D&C Capital Expenditures $ 630   $ 685
       
Budgeted Non-D&C Expenditures – In Millions: $ 140   $ 150
       
Total Capital Expenditures – In Millions: $ 770   $ 835
       
Net Wells Drilled      
Utica – Operated   26     29
Utica – Non-Operated   7     8
Total   33     37
       
SCOOP – Operated   10     11
SCOOP – Non-Operated   4     5
Total   14     16
       
Net Wells Turned-to-Sales      
Utica – Operated   33     37
Utica – Non-Operated   9     10
Total   42     47
       
SCOOP – Operated   16     18
SCOOP – Non-Operated   2     3
Total   18     21

 

2018 operational update

Utica Shale

During 2018, Gulfport plans to run on average 2.5 operated horizontal rigs in the Utica Shale. Gulfport has budgeted to drill approximately 36 to 40 gross (26 to 29 net) horizontal Utica wells with an average lateral length of 11,200 feet. In addition, Gulfport plans to turn-to-sales 33 to 37 gross and net horizontal Utica wells with an average lateral length of 8,000 feet.

Gulfport intends to participate in non-operated activities taking place on its acreage by other operators that plan to drill approximately 7 to 8 horizontal wells and turn-to-sales 9 to 10 horizontal wells, in each case net to Gulfport’s interest.

SCOOP

During 2018, Gulfport plans to run on average approximately 3 operated horizontal rigs in the SCOOP. Gulfport has budgeted to drill approximately 15 to 16 gross (10 to 11 net) horizontal SCOOP wells with an average lateral length of 8,900 feet. In addition, Gulfport plans to turn-to-sales 20 to 22 gross (16 to 18 net) horizontal SCOOP wells with an average lateral length of 8,600 feet.

Gulfport also intends to participate in non-operated activities taking place on its acreage by other operators that plan to drill approximately 4 to 5 horizontal wells and turn-to-sales 2 to 3 horizontal wells, in each case net to Gulfport’s interest.

Southern Louisiana

During 2018, Gulfport plans to run one recompletion rig at its West Cote Blanche Bay and Hackberry fields.

Stock repurchase program

The board of directors has approved a stock repurchase program to acquire up to $100 million of outstanding common stock during 2018. Purchases under the repurchase program may be made from time to time in open market or privately negotiated transactions, the company said.

According to Gulfport, 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, modified, extended or discontinued by the board of directors at any time, the company said.

Q4 2017

Fourth quarter 2017 capital expenditures

For the quarter ended December 31, 2017, Gulfport estimates total capital expenditures to be approximately $262 million, including approximately $220 million on drilling and completion capital expenditures, $7 million on midstream capital expenditures and $35 million on leasehold capital expenditures. Higher than expected capital expenditures were driven by spending associated with prior activity during the year and spending related to preparation for our 2018 development activities.

Q4 production

Gulfport’s net production for the fourth quarter of 2017 averaged 1,263.3 MMcfe per day, a 5% increase over the third quarter of 2017 and 61% increase versus the fourth quarter of 2016. Gulfport’s net daily production mix was comprised of approximately 89% natural gas, 7% natural gas liquids and 4% oil.

 

Q4 2017 production and realized prices chart

 

GULFPORT ENERGY CORPORATION
PRODUCTION SCHEDULE
(Unaudited)
                 
    Three Months Ended    Twelve Months Ended 
     December 31,     December 31, 
Production Volumes:   2017   2016   2017   2016
                 
Natural gas (MMcf)     103,049     63,362     350,061     227,594
Oil (MBbls)     730     451     2,579     2,126
NGL (MGal)     61,555     44,345     224,038     161,562
Gas equivalent (MMcfe)     116,225     72,404     397,543     263,430
Gas equivalent (Mcfe per day)     1,263,319     786,998     1,089,159     719,753
                 
Average Realized Prices                
(before the impact of derivatives):              
                 
Natural gas (per Mcf)   $ 2.32   $ 2.34   $ 2.42   $ 1.85
Oil (per Bbl)   $ 53.71   $ 45.15   $ 48.29   $ 38.18
NGL (per Gal)   $ 0.76   $ 0.56   $ 0.61   $ 0.37
Gas equivalent (per Mcfe)   $ 2.80   $ 2.67   $ 2.78   $ 2.13
                 
Average Realized Prices:                
(including cash-settlement of derivatives and excluding non-cash derivative gain or loss):    
                 
Natural gas (per Mcf)   $ 2.50   $ 2.49   $ 2.49   $ 2.45
Oil (per Bbl)   $ 51.93   $ 45.37   $ 49.88   $ 43.29
NGL (per Gal)   $ 0.70   $ 0.55   $ 0.58   $ 0.36
Gas equivalent (per Mcfe)   $ 2.91   $ 2.80   $ 2.85   $ 2.69
                 
Average Realized Prices:                
                 
Natural gas (per Mcf)   $ 3.26   $ 0.41   $ 3.08   $ 1.12
Oil (per Bbl)   $ 32.04   $ 32.41   $ 46.99   $ 35.65
NGL (per Gal)   $ 0.63   $ 0.52   $ 0.54   $ 0.35
Gas equivalent (per Mcfe)   $ 3.42   $ 0.88   $ 3.32   $ 1.46
                 

 

The table below summarizes Gulfport’s 2017 production by asset area:

 

 
GULFPORT ENERGY CORPORATION
PRODUCTION BY AREA
(Unaudited)
           
      Three Months Ended    Twelve Months Ended 
       December 31,     December 31, 
      2017   2017
Utica Shale           
Natural gas (MMcf)     90,374   309,450
Oil (MBbls)     107   473
NGL (MGal)     33,875   139,634
Gas equivalent (MMcfe)     95,854   332,238
           
SCOOP(1)          
Natural gas (MMcf)     12,648   40,501
Oil (MBbls)     401   1,083
NGL (MGal)     27,660   84,283
Gas equivalent (MMcfe)     19,008   59,038
           
Southern Lousiana           
Natural gas (MMcf)     19   75
Oil (MBbls)     210   974
NGL (MGal)      
Gas equivalent (MMcfe)     1,280   5,917
           
Other          
Natural gas (MMcf)     8   35
Oil (MBbls)     12   50
NGL (MGal)     20   121
Gas equivalent (MMcfe)     84   351
           
(1) SCOOP production adjusted for closing date of February 17, 2017. 

 

Recent well results chart

 

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
Lauper 4-26H SE Grady Springer Oil 4,527 1,418 120.8 34 % 10 % 11 % 79 % 4.7
Serenity 5-22H S Grady Sycamore 5,980 1,143 39.2 13 % 70 % 19 % 11 % 15.7
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
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 % 28 % 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
                           
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.

 


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