GPOR = Fantastic 3rd Quarter Results

[dan_s]

OKLAHOMA CITY, Nov. 5, 2014 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (GPOR) today reported financial and operational results for the third quarter of 2014 and provided an update on its 2014 activities.

Financial and Operational Highlights
• Achieved oil and natural gas sales volumes of 3,894,511 barrels of oil equivalent ("BOE"), or 42,332 barrels of oil equivalent per day ("BOEPD"), in the third quarter of 2014, as compared to 1,193,808 BOE, or 12,976 BOEPD, in the third quarter of 2013.

• Production for the month of October averaged 55,900 BOEPD and for the period of November 1, 2014 through November 4, 2014 production averaged approximately 59,300 BOEPD.

• Recorded net income of $6.9 million, or $0.08 per diluted share, in the third quarter of 2014.

• Reported adjusted net income of $11.0 million, or $0.13 per diluted share, in the third quarter of 2014.

• Generated $90.1 million of EBITDA in the third quarter of 2014.

• In the Utica Shale, the Company brought online 19 wells during the third quarter of 2014.

• Ten rigs are currently active in Gulfport's core operating areas, with eight horizontal rigs in the Utica Shale and two rigs in Southern Louisiana.

Michael G. Moore, Chief Executive Officer, commented, "We are pleased to report a solid third quarter as we continue to execute on our 2014 program. Production increased 60% over the second quarter of 2014, largely driven by the strong well performance from new Utica wells placed on production during the quarter. Our managed pressure program continues to yield positive results and we look forward to seeing additional production from these wells. In addition, overall cash operating costs per unit decreased approximately 25% from the second quarter as the incremental production coming online is driving per unit costs down. During the fourth quarter of 2014, we have continued to realize strong production growth and anticipate bringing online 14 to 20 wells, which includes nine wells that have been brought online to date. Our strong performance in the second half of 2014 has set up the Company for meaningful growth in 2015."

"With regard to 2015 activities, Gulfport anticipates providing its 2015 guidance and budgeted activity levels in early 2015 to allow additional time to gain clarity surrounding the current commodity price environment. We will remain thoughtful as we plan our capital spending and believe our strong balance sheet, superior transportation portfolio, and active hedging strategy will help position Gulfport to successfully navigate the current commodity price environment. We currently anticipate 2015 activity to be funded through operational cash flow, the Company's undrawn credit facility and other available sources of liquidity. "

[dan_s]

The outlook for Gulfport has improved SIGNIFICANTLY since they announced rather disappointing results for the 2nd quarter three months ago. They are back on a path to rapid growth and should exit 2014 with production around 65,000 boepd. This company now has a clear path to 100,000 by 2016.

Note that the production above does not include their stake in Diamondback (FANG) or Grizzly (a Canadian Oil Sands company).

An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.

My Fair Value Estimate has been raised $4.45 to $70.00/share. Compare to First Call's Price Target of $68.83.

It is also important to note that GPOR has very little exposure to oil prices. This is now a "gasser" and most of their gas is high btu with a lot of NGLs.
GPOR's production mix in 2015 should be approximately 73% natural gas, 14% NGL's and 13% crude oil. Most of their oil is in Louisiana and sells at a premium to WTI. For example, during the 3rd quarter their realized oil price was $101.84/bbl. [See the actual production mix at the bottom of my forecast model.]

The have ~24% of their Q4 oil production hedged at $101.50/bbl. Today, they are getting about $48/bbl for their NGLs.

If gas prices spike this winter, GPOR should draw a lot of attention.