Gulfport Energy (GPOR) Update - April 18
Posted: Thu Apr 18, 2019 10:16 am
OKLAHOMA CITY, April 17, 2019 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (GPOR) (“Gulfport” or the “Company”) today provided an update for the quarter ended March 31, 2019.
Key information includes the following:
> Net production during the first quarter of 2019 averaged 1,263.6 MMcfe per day. < Compares to my forecast of 1,358.4 MMcfe per day in Q1.
> Realized natural gas price for the first quarter of 2019, before the impact of derivatives and including transportation costs, averaged $2.70 per Mcf, a $0.46 per Mcf differential to the average trade month NYMEX settled price.
> Realized oil price for the first quarter of 2019, before the impact of derivatives and including transportation costs, averaged $53.10 per barrel, a $1.80 per barrel differential to the average WTI oil price.
> Realized natural gas liquids price for the first quarter of 2019, before the impact of derivatives and including transportation costs, averaged $0.58 per gallon, equivalent to $24.36 per barrel, or approximately 44% of the average WTI oil price.
Realized prices including the cash settlements on their hedges during the first quarter were $2.45/mcf for natural gas, $53.13/bbl for crude oil and $24.78/bbl for NGLs. Slightly higher natural gas price and much higher crude oil price than what I was using in my forecast. Higher oil price because of the big premium for oil (~$6/bbl) in the LLS market.
> Gulfport drilled 6 gross (5.6 net) operated wells in the Utica Shale and 4 gross (3.1 net) operated wells in the SCOOP and had 3 gross wells in various stages of drilling at the end of the first quarter of 2019.
> Gulfport completed 25 gross and net operated wells in the Utica Shale and 7 gross (6.7 net) operated wells in the SCOOP during the first quarter of 2019 and had 8 gross wells in various stages of completion at the end of the first quarter of 2019.
> Gulfport turned-to-sales 6 gross and net operated wells in the Utica Shale and 3 gross (2.8 net) operated wells in the SCOOP during the first quarter of 2019, which includes 6 gross and net wells turned-to-sales after March 25, 2019.
Chief Executive Officer and President, David M. Wood, commented, “Gulfport’s first quarter of 2019 production came in as expected following a muted level of activity during the fourth quarter of 2018 and we remain on track to deliver on our previously announced 2019 production guidance of 1,360 MMcfe to 1,400 MMcfe per day. We began 2019 very active in both our core basins, running on average approximately 3.4 horizontal drilling rigs and 4.4 completion crews in total across our Utica Shale and SCOOP assets during the first quarter of 2019. We forecast this robust level of activity will lead to an active turn-in-line schedule in the coming months as we expect to turn-to-sales in excess of 30 wells during the second quarter of 2019, leading to strong quarter over quarter production growth in both the second quarter and third quarter of 2019.”
First Quarter 2019 Production and Realized Prices
Gulfport’s net daily production for the first quarter of 2019 averaged approximately 1,263.6 MMcfe per day. For the first quarter of 2019, Gulfport’s net daily production mix was comprised of approximately 90% natural gas, 7% NGL and 3% oil.
Gulfport’s realized prices for the first quarter of 2019 were $2.54 per Mcf of natural gas, $52.35 per barrel of oil and $0.52 per gallon of NGL, resulting in a total equivalent price of $2.82 per Mcfe. Gulfport's realized prices for the first quarter of 2019 include an aggregate non-cash derivative gain of $4.8 million. Before the impact of derivatives, realized prices for the first quarter of 2019, including transportation costs, were $2.70 per Mcf of natural gas, $53.10 per barrel of oil and $0.58 per gallon of NGL, for a total equivalent price of $3.00 per Mcfe.
Key information includes the following:
> Net production during the first quarter of 2019 averaged 1,263.6 MMcfe per day. < Compares to my forecast of 1,358.4 MMcfe per day in Q1.
> Realized natural gas price for the first quarter of 2019, before the impact of derivatives and including transportation costs, averaged $2.70 per Mcf, a $0.46 per Mcf differential to the average trade month NYMEX settled price.
> Realized oil price for the first quarter of 2019, before the impact of derivatives and including transportation costs, averaged $53.10 per barrel, a $1.80 per barrel differential to the average WTI oil price.
> Realized natural gas liquids price for the first quarter of 2019, before the impact of derivatives and including transportation costs, averaged $0.58 per gallon, equivalent to $24.36 per barrel, or approximately 44% of the average WTI oil price.
Realized prices including the cash settlements on their hedges during the first quarter were $2.45/mcf for natural gas, $53.13/bbl for crude oil and $24.78/bbl for NGLs. Slightly higher natural gas price and much higher crude oil price than what I was using in my forecast. Higher oil price because of the big premium for oil (~$6/bbl) in the LLS market.
> Gulfport drilled 6 gross (5.6 net) operated wells in the Utica Shale and 4 gross (3.1 net) operated wells in the SCOOP and had 3 gross wells in various stages of drilling at the end of the first quarter of 2019.
> Gulfport completed 25 gross and net operated wells in the Utica Shale and 7 gross (6.7 net) operated wells in the SCOOP during the first quarter of 2019 and had 8 gross wells in various stages of completion at the end of the first quarter of 2019.
> Gulfport turned-to-sales 6 gross and net operated wells in the Utica Shale and 3 gross (2.8 net) operated wells in the SCOOP during the first quarter of 2019, which includes 6 gross and net wells turned-to-sales after March 25, 2019.
Chief Executive Officer and President, David M. Wood, commented, “Gulfport’s first quarter of 2019 production came in as expected following a muted level of activity during the fourth quarter of 2018 and we remain on track to deliver on our previously announced 2019 production guidance of 1,360 MMcfe to 1,400 MMcfe per day. We began 2019 very active in both our core basins, running on average approximately 3.4 horizontal drilling rigs and 4.4 completion crews in total across our Utica Shale and SCOOP assets during the first quarter of 2019. We forecast this robust level of activity will lead to an active turn-in-line schedule in the coming months as we expect to turn-to-sales in excess of 30 wells during the second quarter of 2019, leading to strong quarter over quarter production growth in both the second quarter and third quarter of 2019.”
First Quarter 2019 Production and Realized Prices
Gulfport’s net daily production for the first quarter of 2019 averaged approximately 1,263.6 MMcfe per day. For the first quarter of 2019, Gulfport’s net daily production mix was comprised of approximately 90% natural gas, 7% NGL and 3% oil.
Gulfport’s realized prices for the first quarter of 2019 were $2.54 per Mcf of natural gas, $52.35 per barrel of oil and $0.52 per gallon of NGL, resulting in a total equivalent price of $2.82 per Mcfe. Gulfport's realized prices for the first quarter of 2019 include an aggregate non-cash derivative gain of $4.8 million. Before the impact of derivatives, realized prices for the first quarter of 2019, including transportation costs, were $2.70 per Mcf of natural gas, $53.10 per barrel of oil and $0.58 per gallon of NGL, for a total equivalent price of $3.00 per Mcfe.