GPOR--another big disappointment

[setliff]

down >$1 after mkt.

mkt was expecting 60c---act 48c
rev's also light.

complete report here----
http://finance.yahoo.com/news/gulfport- ... 37308.html


Gulfport Energy Corporation Reports First Quarter 2012 Results

Press Release: Gulfport Energy Corporation – 6 hours ago

OKLAHOMA CITY, May 8, 2012 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR - News) today reported financial and operating results for the first quarter of 2012 and provided an update on its 2012 activities.

For the first quarter of 2012, Gulfport reported net income of $26.9 million on oil and natural gas revenues of $65.4 million, or $0.48 per diluted share. EBITDA (as defined below) for the first quarter of 2012 was $48.6 million and cash flow from operating activities before changes in working capital (as defined below) was $49.8 million.

Financial Highlights

•Produced oil and natural gas sales volumes of 645,056 barrels of oil equivalent ("BOE"), or 7,089 barrels of oil equivalent per day ("BOEPD"), in the first quarter of 2012, a 24% year-over-year increase from the first quarter of 2011
•Recorded net income of $26.9 million in the first quarter of 2012, a 27% year-over-year increase from the first quarter of 2011
•Generated $48.6 million of EBITDA in the first quarter of 2012, a 42% year-over-year increase from the first quarter of 2011

[dan_s]

Production came in below forecast but it wasn't that bad to justify a big selloff. I will listen to their CC and have a revised forecast model posted this afternoon.

Looks like Q2 production will be flat to Q1 then ramp up in the 2nd half.

Permian assets going to Diamondback Energy for 35% equity and $63 Million in cash. Gives them all the cash they need to be aggressive in the Utica Shale.

Utica Shale and Grizzly are big upside for Gulfport.

[dan_s]

Keep this in mind before you give up on Gulfport:
> Even if 2012 production comes in at the low end of guidance (2.9 million boe), that will be a 24% year-over-year increase in production.
> CFPS was $0.86 in Q1 and they are still on-track to generate $4/share in cash flow this year.
> Cash flow from operations exceeds their capital budget, so company is increasing production and proven reserves AND generating free cash flow. This does not count the $60+ million in cash they will get from Diamond Energy for the Permian assets.
> Gulfport's 25% equity stake in Grizzly is worth a whole lot of money and I don't see that reflected at all in the share price. There is nothing in my forecast model for Grizzly.

[prince_jake_33]

Thanks Dan for the support here on GPOR. I hate selling without knowing the facts.

[setliff]

dan, i am holdong for now. did sell some based on techncals, but will probably buy back in after i see a solid bottom (is there such a thing? )

question re this statement--"Gulfport currently plans to rest its wells in the Utica Shale for a minimum of 60 days following completion prior to putting them on production. "

how do you interpret that?

i assume they have not fracked the first utica well yet--do you agree?

[dan_s]

I will be on the CC in about ten minutes.

I think what they are talking about on the Utica wells is that they will frac the wells and let the frac fluid stay in the well for 60 days before flowback. Theory is that this will allow the proppant to set better.

[dan_s]

Very bullish CC. First well in Utica Shale beat their expectations with good oil shows and better than expected perm. They expect to have 10 gross wells completed by year-end (5 net wells). Utica could easily add 5,000 boepd by year-end.
First 20 wells will be spread out to test all of their acreage. Development drilling in 2013 will quickly ramp up production and should lower well costs.

Markwest (one of my top picks on our MLP Watch List) is ahead of schedule on pipelines and facilities for the Utica. They are working well with GPOR and wells should be connected to sales quickly.

GPOR to get $64 million cash when Diamondback Energy IPO is closed. 180 day lockup on the equity shares.

GPOR said their share of Grizzly 2P reserves is over 20 million bbls., none of which is booked. First production mid-2013 and Grizzly will be self-funding by end of 2013. < IMO GPOR's stake in Grizzly is not reflected in the share price.

Five new wells in Niobrara this year, all based on newly processed 3D seismic. Should add 500 to 1,000 bopd by year-end.

Lots of high profile analysts on the CC, which means GPOR will get a lot of exposure on their Utica drilling program.