Energy Prospectus

Q2 Production 1,359M cfe/Day, Up 8% Quarter Over Quarter
"Gulfport's realized prices for the second quarter of 2019 were $3.38 per Mcf of natural gas, $75.14 per barrel of oil and $0.57 per gallon of NGL, resulting in a total equivalent price of $3.71 per Mcfe. Gulfport's realized prices for the second quarter of 2019 include an aggregate non-cash derivative gain of $147.8 million. Before the impact of derivatives, realized prices for the second quarter of 2019, including transportation costs, were $2.02 per Mcf of natural gas, $56.85 per barrel of oil and $0.45 per gallon of NGL, for a total equivalent price of $2.33 per Mcfe."

Gulfport's Q2 prices including just the cash settlements on their hedges in Q2 were $2.20/mcf for natural gas, $57.42/bbl of crude oil and $21.42/bbl of NGLs. Natural gas and oil prices were close to my forecast, but NGL price was much lower than my forecast of $24.00/bbl and $24.78/bbl in Q1.

Gulfport's Reported Net Income (GAAP) will include the BIG non-cash mark-to-market on their hedges. Ignore reported net income and focus on operating cash flow per share, which s/b over $1.00/share for the quarter.

Gulfport GAAP Earnings Per Share should be approximately $1.10/share in Q2. Shows how extremely misleading and confusing GAAP accounting rules for hedges are. The SEC really needs to take a look at those rules.

Gulfport's Adjusted Earnings Per Share s/b approximately $0.19/share.

GPOR is generating free cash flow from operations, but production will only be up slightly YOY. This compares to YOY production growth of 25% in 2018.