Gulfport Energy (GPOR) Q1 Results - May 3
Posted: Fri May 03, 2019 10:22 am
OKLAHOMA CITY, May 02, 2019 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport” or the “Company”) today reported financial and operational results for the three-months ended March 31, 2019 and provided an update on its 2019 activities. Key information includes the following:
Net production averaged 1,263.6 MMcfe per day during the first quarter of 2019. < Agrees with my forecast.
Net income of $62.2 million, or $0.38 per diluted share, for the first quarter of 2019.
Adjusted net income of $53.2 million, or $0.33 per diluted share, for the first quarter of 2019. < Compares to my net income forecast of $40.7 million, $0.28/share.
Adjusted EBITDA of $206.8 million for the first quarter of 2019. < Compares to my forecast of $207.2 million.
Gulfport drilled six gross (5.6 net) operated wells in the Utica Shale and four gross (3.1 net) operated wells in the SCOOP and had three 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 seven gross (6.7 net) operated wells in the SCOOP during the first quarter of 2019 and had eight gross wells in various stages of completion at the end of the first quarter of 2019.
Gulfport turned-to-sales six gross and net operated wells in the Utica Shale and three gross (2.8 net) operated wells in the SCOOP during the first quarter of 2019, which includes six gross and net wells turned-to-sales after March 25, 2019.
Repurchased 3.8 million shares of the Company's common stock through May 1, 2019.
Reaffirmed 2019 total capital expenditures to be in the range of $565 to $600 million and funded entirely within cash flow.
Reiterated 2019 full year net production to average 1,360 MMcfe to 1,400 MMcfe per day.
Forecasted 2019 full year free cash flow in excess of $100 million.
Maintained large 2019 hedge position of approximately 1,254 BBtu per day of natural gas fixed price swaps at an average fixed price of $2.83 per MMBtu.
Increased oil hedge position to approximately 4,104 barrels per day of oil fixed price swaps at an average fixed price of $60.72 per barrel in 2019 and 6,000 barrels per day at an average fixed price of $59.82 per barrel in 2020.
Chief Executive Officer and President, David M. Wood, commented, "Gulfport is off to a strong start in 2019, beginning the year active in our core asset areas and remaining on track to deliver on our previously announced 2019 capital budget, operational outlook and commitment to free cash flow generation. Capitalizing on our drilled uncompleted well inventory, we began the year active on the ground and as previously mentioned, we forecast this robust level of activity will lead to a heavy turn in line schedule during the second quarter of 2019. We plan to progressively turn to sales in excess of 30 gross wells during the quarter, leading to solid production growth and positioning us well as we continue to execute on our 2019 program."
Mr. Wood continued, "In addition, we continue to simplify the portfolio through non-core asset monetizations and recently entered into an agreement to monetize a small footprint of Marcellus formation rights overlying a portion of our acreage in the Utica Shale of Eastern Ohio. Consistent with our previous comments on our ongoing stock repurchase program, the anticipated proceeds of this transaction allowed Gulfport to repurchase approximately $30 million of Gulfport common stock during the first quarter of 2019, reducing our shares outstanding by approximately 2%. In addition, we expect to launch a process to divest certain water infrastructure assets Gulfport holds across our SCOOP position in the coming weeks, including water handling and water recycling facilities, and we plan to provide further details on the monetization process when appropriate. All in all, our 2019 program is off to a strong start and we remain focused on disciplined capital allocation, cash flow generation and enhancing shareholder returns going forward."
Stock Repurchase Program
As of May 1, 2019, the Company has repurchased 3.8 million shares totaling approximately $30 million during 2019.
In January 2019, Gulfport's board of directors authorized the Company to acquire up to $400 million of its outstanding common stock within a 24 month period and approximately $370 million remains available under the current authorization. Purchases under the repurchase program may be made from time to time in open market or privately negotiated transactions, and will be subject to market conditions, applicable legal requirements, contractual obligations and other factors. The repurchase program does not require the Company to acquire any specific number of shares. The Company intends to purchase shares under the repurchase program opportunistically with available funds while maintaining sufficient liquidity to fund its 2019 capital development program. This repurchase program may be suspended from time to time, accelerated, modified, extended or discontinued by the board of directors at any time.
Net production averaged 1,263.6 MMcfe per day during the first quarter of 2019. < Agrees with my forecast.
Net income of $62.2 million, or $0.38 per diluted share, for the first quarter of 2019.
Adjusted net income of $53.2 million, or $0.33 per diluted share, for the first quarter of 2019. < Compares to my net income forecast of $40.7 million, $0.28/share.
Adjusted EBITDA of $206.8 million for the first quarter of 2019. < Compares to my forecast of $207.2 million.
Gulfport drilled six gross (5.6 net) operated wells in the Utica Shale and four gross (3.1 net) operated wells in the SCOOP and had three 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 seven gross (6.7 net) operated wells in the SCOOP during the first quarter of 2019 and had eight gross wells in various stages of completion at the end of the first quarter of 2019.
Gulfport turned-to-sales six gross and net operated wells in the Utica Shale and three gross (2.8 net) operated wells in the SCOOP during the first quarter of 2019, which includes six gross and net wells turned-to-sales after March 25, 2019.
Repurchased 3.8 million shares of the Company's common stock through May 1, 2019.
Reaffirmed 2019 total capital expenditures to be in the range of $565 to $600 million and funded entirely within cash flow.
Reiterated 2019 full year net production to average 1,360 MMcfe to 1,400 MMcfe per day.
Forecasted 2019 full year free cash flow in excess of $100 million.
Maintained large 2019 hedge position of approximately 1,254 BBtu per day of natural gas fixed price swaps at an average fixed price of $2.83 per MMBtu.
Increased oil hedge position to approximately 4,104 barrels per day of oil fixed price swaps at an average fixed price of $60.72 per barrel in 2019 and 6,000 barrels per day at an average fixed price of $59.82 per barrel in 2020.
Chief Executive Officer and President, David M. Wood, commented, "Gulfport is off to a strong start in 2019, beginning the year active in our core asset areas and remaining on track to deliver on our previously announced 2019 capital budget, operational outlook and commitment to free cash flow generation. Capitalizing on our drilled uncompleted well inventory, we began the year active on the ground and as previously mentioned, we forecast this robust level of activity will lead to a heavy turn in line schedule during the second quarter of 2019. We plan to progressively turn to sales in excess of 30 gross wells during the quarter, leading to solid production growth and positioning us well as we continue to execute on our 2019 program."
Mr. Wood continued, "In addition, we continue to simplify the portfolio through non-core asset monetizations and recently entered into an agreement to monetize a small footprint of Marcellus formation rights overlying a portion of our acreage in the Utica Shale of Eastern Ohio. Consistent with our previous comments on our ongoing stock repurchase program, the anticipated proceeds of this transaction allowed Gulfport to repurchase approximately $30 million of Gulfport common stock during the first quarter of 2019, reducing our shares outstanding by approximately 2%. In addition, we expect to launch a process to divest certain water infrastructure assets Gulfport holds across our SCOOP position in the coming weeks, including water handling and water recycling facilities, and we plan to provide further details on the monetization process when appropriate. All in all, our 2019 program is off to a strong start and we remain focused on disciplined capital allocation, cash flow generation and enhancing shareholder returns going forward."
Stock Repurchase Program
As of May 1, 2019, the Company has repurchased 3.8 million shares totaling approximately $30 million during 2019.
In January 2019, Gulfport's board of directors authorized the Company to acquire up to $400 million of its outstanding common stock within a 24 month period and approximately $370 million remains available under the current authorization. Purchases under the repurchase program may be made from time to time in open market or privately negotiated transactions, and will be subject to market conditions, applicable legal requirements, contractual obligations and other factors. The repurchase program does not require the Company to acquire any specific number of shares. The Company intends to purchase shares under the repurchase program opportunistically with available funds while maintaining sufficient liquidity to fund its 2019 capital development program. This repurchase program may be suspended from time to time, accelerated, modified, extended or discontinued by the board of directors at any time.