GPOR

[dan_s]

I can't explain why the market had a negative reaction to this press release, maybe the low realized prices. Production for the quarter came in above my forecast and operating cash flow should exceed $0.70/share, which compares to First Call's forecast of $0.63/share. Production and realized commodity prices should ramp up into year-end and continue moving higher in Q1 2017. My valuation of GPOR remains at $45.00, compared to First Call's price target of $35.07. - Dan

Gulfport Energy Corporation (GPOR) (“Gulfport” or the “Company”) today provided an operational update for the quarter ended September 30, 2016 and scheduled its third quarter financial and operational results conference call. Key information for the third quarter of 2016 includes the following:

Net production averaged 734.1 MMcfe per day, a 13% increase over the third quarter of 2015 and a 10% increase versus the second quarter of 2016, exceeding Gulfport’s previously provided third quarter of 2016 guidance of 685 MMcfe per day to 705 MMcfe per day.

Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $2.10 per Mcf, a $0.71 per Mcf differential to the average trade month NYMEX settled price.
Realized oil price, before the impact of derivatives and including transportation costs, averaged $41.81 per barrel, a $3.13 per barrel differential to the average WTI oil price.
Realized natural gas liquids price, before the impact of derivatives and including transportation costs, averaged $13.98 per barrel, or $0.33 per gallon.

Third Quarter Production and Realized Prices

Gulfport’s net daily production for the third quarter of 2016 averaged approximately 734.1 MMcfe per day. For the third quarter of 2016, Gulfport’s net daily production mix was comprised of approximately 86% natural gas, 9% natural gas liquids and 5% oil.

Gulfport’s realized prices including the impact of hedges for the third quarter of 2016 were $2.67 per Mcf of natural gas, $45.09 per barrel of oil and $0.34 per gallon of NGL, resulting in a total equivalent price of $2.87 per Mcfe. Gulfport's realized prices for the third quarter of 2016 include an aggregate non-cash derivative gain of $22.4 million.

[setliff]

i've read the ne has been suffering from lower prices because of lack of distribution capability.

[dan_s]

Yes, there is a significant transportation cost to get gas out of the Marcellus/Utica area. See the most recent RRC presentation on their website for details. RRC has the best marketing team and they have firm transportation agreements for most of their gas and NGLs.

As winter demand grows in the Great Lakes area it should help reduce the bottlenecks.