Gulfport Energy (GPOR) Update - Nov 16

[dan_s]

I sent an email to Gulfport this morning asking them to clarify what happens to the equity if their debt restructuring plan is approved. Below is the Company's response.
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Thank you for reaching out, Dan. Below please find a link to our website and Investor FAQs related to Gulfport’s chapter 11 filing. If you have additional questions, please contact our claims agent, Epiq, at (888) 905-0409 (toll free) or +1 (503) 597-7687 (international).

Gulfport website: https://www.gulfportenergy.com/restructuring

Additional information can also be found on our dedicated website: https://dm.epiq11.com/Gulfport.

Best,

Jessica
Jessica Antle

Director, Investor Relations

(o) 405-252-4525

jantle@gulfportenergy.com

[k1f]

Thanks for inquiring. No wonder the company is shy about stating what happens to common shares, brushing us off with a URL. It looks as if common investors are wiped out and used to pay down only half all the company’s debt. So much for the superficial health of the company. No dates suggested. Below is the forthright Seeking Alpha statement:

Current Gulfport Energy Shareholder Recovery (Class 7)
As often happens under Ch.11 reorganization plans, current GPOR shareholders are getting no recovery. Unlike some other energy companies where creditors are "gifting" token recoveries to shareholders, such as Oasis Petroleum (OTCPK:OTCPK:OASPQ), there is no gifting to GPOR shareholders. As stated in the reorganization plan: "On the Effective Date, all Existing Interests in Gulfport Parent shall be cancelled, released, and extinguished, and will be of no further force or effect." I expect the shares will continue to trade on the Pink Sheets until the plan effective date, when they will be cancelled.

[dan_s]

I sent an email back to Gulfport and told them that I could not believe they totally wiped out the common stockholders. The only hope now for the common stockholders is if someone with a large equity stake shows up and tells the bankruptcy judge to reject the deal since there is a good chance that the ngas and NGL prices spike and make it possible of GPOR to survive and eventually pay off the debt.

My take is that Gulfport engaged the "consultants" to do debt restructuring way before ngas and NGL prices rallied. They get caught up in the restructuring process and the consultants pushed them to accept the restructuring plan. Managements wanted to keep their high paying jobs and the jobs of their employees.

I expected the existing shareholders to end up with at least a 5% stake in the company.

I sold all of my GPOR and moved it to HMENF. Hemisphere Energy (HMENF) is going to report outstanding Q3 results; FCF of $3Cdn million. They are generating FCF from operations today and they have a low cost plan that could double production within a year.

[dan_s]

Note from Aegis Energy on Nov 18:
Gulfport Energy is asking a federal bankruptcy court to reject the Utica Shale gas producers’ firm gas transport agreements with Rockies Express Pipeline (REX), Rover Pipeline and several TC Energy units, and, to block FERC actions that might takeover the court’s role (Platts)
> If successful, Gulfport would save $18 million in net cost per year, or about $222 million over the remaining term of the firm agreements, according to the company
> Commitments to TC Energy make Gulfport liable for $700 million in aggregate gross costs for remaining firm transport terms
> Disputes on breaking these contracts are closely watched as multiple oil and gas companies that have filed bankruptcy challenged of their own