Earnings call:
https://seekingalpha.com/article/419405 ... transcript
Another brilliant Q from Gulfport
Re: Another brilliant Q from Gulfport
Gulfport is one of the most profitable companies in the Sweet 16. Adjusted net income of $57.0 million compares to my forecast of $49.9 million.
OKLAHOMA CITY, Aug. 01, 2018 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ: GPOR)
(“Gulfport” or the “Company”) today reported financial and operational results for the quarter and six
months ended June 30, 2018 and provided an update on its 2018 activities. Key information includes the
following:
> Net production averaged 1,330.3 MMcfe per day during the second quarter of 2018.
> Net income of $111.3 million, or $0.64 per diluted share, for the second quarter of 2018.
> Adjusted net income (as defined and reconciled below) of $57.0 million, or $0.33 per diluted share, for the second quarter of 2018.
> Adjusted EBITDA (as defined and reconciled below) of $213.6 million for the second quarter of 2018.
> Repurchased 10.5 million shares of the Company's common stock at a weighted-average share price of $10.47 during 2018 through August 1, 2018.
> Reiterated 2018 total capital expenditures to be in the range of $750 million to $815 million and funded within cash flow.
> Increased estimated 2018 full year net production and now forecast an average of 1,320 MMcfe to 1,340 MMcfe per day, an increase of approximately 21% to 23% over the average daily net
production of 1,089.2 MMcfe per day during 2017.
> Currently estimate net production for the third quarter of 2018 to average approximately 1,360 MMcfe per day.
> Large 2018 hedge position of approximately 948 BBtu per day of natural gas fixed price swaps at an average fixed price of $3.05 per MMBtu.
> Increased 2019 hedge position to approximately 1,154 BBtu per day of natural gas fixed price swaps at an average fixed price of $2.81 per MMBtu.
Chief Executive Officer and President, Michael G. Moore, commented, "Gulfport had a solid second quarter
and we continue to show consistency in our ability to execute by exceeding our production estimates and
increasing the narrow-end of our 2018 production guidance while strictly adhering to our 2018 capital
budget. During the quarter, we hedged a large portion of our anticipated 2019 natural gas production,
mitigating the volatility in the commodity price and giving us a high degree of certainty in our anticipated
cash flow.
Gulfport's activities year-to-date have positioned us well as we continue to execute on our commitment to
capital discipline and achieve free cash flow generation in the back half of the year. As we weigh the
opportunities for uses of free cash flow, we will continue to consider all options, including additional share
repurchases and debt reduction, remaining disciplined as we allocate capital and demonstrating our
commitment to the Gulfport stockholders with every dollar invested."
OKLAHOMA CITY, Aug. 01, 2018 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ: GPOR)
(“Gulfport” or the “Company”) today reported financial and operational results for the quarter and six
months ended June 30, 2018 and provided an update on its 2018 activities. Key information includes the
following:
> Net production averaged 1,330.3 MMcfe per day during the second quarter of 2018.
> Net income of $111.3 million, or $0.64 per diluted share, for the second quarter of 2018.
> Adjusted net income (as defined and reconciled below) of $57.0 million, or $0.33 per diluted share, for the second quarter of 2018.
> Adjusted EBITDA (as defined and reconciled below) of $213.6 million for the second quarter of 2018.
> Repurchased 10.5 million shares of the Company's common stock at a weighted-average share price of $10.47 during 2018 through August 1, 2018.
> Reiterated 2018 total capital expenditures to be in the range of $750 million to $815 million and funded within cash flow.
> Increased estimated 2018 full year net production and now forecast an average of 1,320 MMcfe to 1,340 MMcfe per day, an increase of approximately 21% to 23% over the average daily net
production of 1,089.2 MMcfe per day during 2017.
> Currently estimate net production for the third quarter of 2018 to average approximately 1,360 MMcfe per day.
> Large 2018 hedge position of approximately 948 BBtu per day of natural gas fixed price swaps at an average fixed price of $3.05 per MMBtu.
> Increased 2019 hedge position to approximately 1,154 BBtu per day of natural gas fixed price swaps at an average fixed price of $2.81 per MMBtu.
Chief Executive Officer and President, Michael G. Moore, commented, "Gulfport had a solid second quarter
and we continue to show consistency in our ability to execute by exceeding our production estimates and
increasing the narrow-end of our 2018 production guidance while strictly adhering to our 2018 capital
budget. During the quarter, we hedged a large portion of our anticipated 2019 natural gas production,
mitigating the volatility in the commodity price and giving us a high degree of certainty in our anticipated
cash flow.
Gulfport's activities year-to-date have positioned us well as we continue to execute on our commitment to
capital discipline and achieve free cash flow generation in the back half of the year. As we weigh the
opportunities for uses of free cash flow, we will continue to consider all options, including additional share
repurchases and debt reduction, remaining disciplined as we allocate capital and demonstrating our
commitment to the Gulfport stockholders with every dollar invested."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Another brilliant Q from Gulfport
I have updated my forecast/valuation model for GPOR and I am increasing my valuation by $0.50 to $28.50/share.
Other than being a "gasser", I can't think of any reason not to value it higher. All they do is keep increasing production & proven reserves and putting up quarter after quarter of solid earnings and cash flow from operations. Production will be up ~23% YOY in 2018.
Operating cash flow per share:
2016A = $2.98
2017A = $3.45
2018E = $4.64 (compares to First Call's estimate of $4.57)
2019E = $5.06 (compares to First Call's estimate of $4.72)
Growth is completely funded by operating cash flow.
Balance sheet is in good shape.
Lots of liquidity.
Lots of running room.
Unless natural gas goes to $2.00/MMBtu and stays there, this company will survive and thrive, but the Wall Street Gang isn't interested in "gassers". Just remember that "The Herd" can change directions quickly and the next winter heating season begin in about four months.
Other than being a "gasser", I can't think of any reason not to value it higher. All they do is keep increasing production & proven reserves and putting up quarter after quarter of solid earnings and cash flow from operations. Production will be up ~23% YOY in 2018.
Operating cash flow per share:
2016A = $2.98
2017A = $3.45
2018E = $4.64 (compares to First Call's estimate of $4.57)
2019E = $5.06 (compares to First Call's estimate of $4.72)
Growth is completely funded by operating cash flow.
Balance sheet is in good shape.
Lots of liquidity.
Lots of running room.
Unless natural gas goes to $2.00/MMBtu and stays there, this company will survive and thrive, but the Wall Street Gang isn't interested in "gassers". Just remember that "The Herd" can change directions quickly and the next winter heating season begin in about four months.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group