Gulfport reported Q3 results that included a 10.4 increase in production from Q2. Realized prices, including cash settlements on their hedges were better than I thought.
$2.67/mcf for Ngas
$45.08/bbl for crude oil
$14.37/bbl for NGLs
Cash flow from operations was over $109 million, which was about $20 million above my forecast.
GAAP income included a big non-cash impairment charge.
Per the company: Net production for the fourth quarter of 2016 is expected to average approximately 765 MMcfe per day to 790 MMcfe per day, compared to 743.1 MMcfe per day in the third quarter. My forecast assumes that GPOR increases production to 900 MMcfe per day in 2017.
Gulfport Energy (GPOR) Q3 Results
Gulfport Energy (GPOR) Q3 Results
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Gulfport Energy (GPOR) Q3 Results
As of September 30, 2016, Gulfport had cash on hand of approximately $364.3 million. In addition, as of September 30, 2016, Gulfport’s revolving credit facility of $700 million was undrawn and had $493.0 million available for future borrowing after giving effect to outstanding letters of credit totaling $207.0 million.
Michael G. Moore, Chief Executive Officer, commented, "Gulfport had a solid third quarter across the board, demonstrating our commitment to deliver on expectations. I am very proud of the continued hard work and commitment of all teams across the organization who came together to deliver these strong results and am encouraged by our momentum as we head into 2017."
“With regard to our 2017 capital outlook and production growth, while we have not yet finalized the specifics of our anticipated full-year 2017 program, we continue to refine our thoughts surrounding the potential six and eight-rig scenarios provided on our second quarter call. Given our hedge position and where commodity prices are currently trading, we feel confident in establishing a six-rig program as a base level of activity for 2017, with the potential to add additional rigs during the year. We currently are utilizing four rigs and have already contracted two additional rigs, one of which is currently moving to location and the other rig is scheduled to begin operations in December.”
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GPOR already has ~50% of their 2017 gas hedged at more than $3.00/MMBtu. If gas prices firm up over $3.00, I expect the company to ramp to an eight rig program, which could push their production to over a Bcfe per day. In 2014, Gulfport's production was less than 0.240 Bcfe per day.
Michael G. Moore, Chief Executive Officer, commented, "Gulfport had a solid third quarter across the board, demonstrating our commitment to deliver on expectations. I am very proud of the continued hard work and commitment of all teams across the organization who came together to deliver these strong results and am encouraged by our momentum as we head into 2017."
“With regard to our 2017 capital outlook and production growth, while we have not yet finalized the specifics of our anticipated full-year 2017 program, we continue to refine our thoughts surrounding the potential six and eight-rig scenarios provided on our second quarter call. Given our hedge position and where commodity prices are currently trading, we feel confident in establishing a six-rig program as a base level of activity for 2017, with the potential to add additional rigs during the year. We currently are utilizing four rigs and have already contracted two additional rigs, one of which is currently moving to location and the other rig is scheduled to begin operations in December.”
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GPOR already has ~50% of their 2017 gas hedged at more than $3.00/MMBtu. If gas prices firm up over $3.00, I expect the company to ramp to an eight rig program, which could push their production to over a Bcfe per day. In 2014, Gulfport's production was less than 0.240 Bcfe per day.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Gulfport Energy (GPOR) Q3 Results
I have updated my forecast/valuation model for GPOR. It will be posted to the EPG website later today.
My valuation remains at $45/share, compared to First Call's price target of $35.00.
GPOR is a "gasser". Less than 5% of their production is crude oil. If NGL prices improve, there is upside to my valuation. In 2014, GPOR sold their NGL's for $46/bbl. In Q3 they only got $14.37/Bbl. A cold winter would really help propane prices.
My valuation remains at $45/share, compared to First Call's price target of $35.00.
GPOR is a "gasser". Less than 5% of their production is crude oil. If NGL prices improve, there is upside to my valuation. In 2014, GPOR sold their NGL's for $46/bbl. In Q3 they only got $14.37/Bbl. A cold winter would really help propane prices.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group