Gulfport Energy Corporation Launches Common Stock Offering
Press Release: Gulfport Energy Corporation – 2 hours 24 minutes ago
GPOR 31.72 0.00
OKLAHOMA CITY, Nov. 29, 2011 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR - News) today announced the commencement of an underwritten public offering of 5,000,000 shares of its common stock, subject to market and other conditions, of which 4,000,000 shares will be sold by Gulfport and 1,000,000 shares will be sold by one of its stockholders. The underwriters will have an option to purchase a maximum of 600,000 additional shares from Gulfport and a maximum of 150,000 additional shares from the selling stockholder solely to cover over-allotments. Gulfport intends to use its net proceeds from this offering to repay the current outstanding balance under its secured revolving credit facility, to fund capital expenditures associated with drilling, development and infrastructure, principally in the Utica Shale in Ohio, and for general corporate purposes. Gulfport will not receive any proceeds from the sale of shares of common stock by the selling stockholder.
Credit Suisse Securities (USA) LLC is acting as sole book-running manager in the offering. Copies of the preliminary prospectus supplement for the offering may be obtained on the website of the Securities and Exchange Commission, www.sec.gov, or by contacting Credit Suisse Securities (USA) LLC, Prospectus Department, at One Madison Avenue, New York, New York 10010, or by telephone at (800) 221-1037.
The common stock will be issued and sold pursuant to an effective automatic shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.
GPOR offers 5m shs
Re: GPOR offers 5m shs
Sorry it has taken this long to respond. My computer has been causing me problems all day (user errors).
I have updated the GPOR forecast model and posted it under the Sweet 16 tab.
IMO the dip in GPOR's share price today, caused by the announced equity offering, is a great buying opportunity. GPOR has a rock solid Balance Sheet and will be virtually debt free after this equity offering. Jim Palm, the CEO, just hates bank debt and he wants to be fully funded so they can aggressively drill up their Utica Shale acreage.
I have adjusted my forecast (attached) to include the increase in common stock.
Important notes:
> GPOR sells more than 85% of their oil into the Gulf Coast market at a large premium to WTI. Their realized oil price was $103.50/bbl in the 3rd quarter, so the $100/bbl being used in my forecast is very conservative.
> Their natural gas is unhedged but they get a premium price because it is high btu gas
> GPOR has significant upside to my 2012 forecast in both the Niobrara and Utica Shale.
> IMO there is nothing in the share price for the HUGE upside they have in Thailand and the Canadian Oil Sands (Grizzly)
I have updated the GPOR forecast model and posted it under the Sweet 16 tab.
IMO the dip in GPOR's share price today, caused by the announced equity offering, is a great buying opportunity. GPOR has a rock solid Balance Sheet and will be virtually debt free after this equity offering. Jim Palm, the CEO, just hates bank debt and he wants to be fully funded so they can aggressively drill up their Utica Shale acreage.
I have adjusted my forecast (attached) to include the increase in common stock.
Important notes:
> GPOR sells more than 85% of their oil into the Gulf Coast market at a large premium to WTI. Their realized oil price was $103.50/bbl in the 3rd quarter, so the $100/bbl being used in my forecast is very conservative.
> Their natural gas is unhedged but they get a premium price because it is high btu gas
> GPOR has significant upside to my 2012 forecast in both the Niobrara and Utica Shale.
> IMO there is nothing in the share price for the HUGE upside they have in Thailand and the Canadian Oil Sands (Grizzly)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GPOR offers 5m shs
OKLAHOMA CITY, Nov. 30, 2011 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR - News) today announced that it has priced its previously-announced underwritten public offering of 5,000,000 shares of its common stock at a public offering price of $29.00 per share, of which 4,000,000 shares will be sold by Gulfport and 1,000,000 shares will be sold by one of its stockholders.
GPOR will stay in the Sweet 16
My updated forecast model for GPOR assumes that all 4.6 million shares will be sold at $29.
> Take a look at the 9/30/11 balance sheet. This equity offering wipes out all debt and gives GPOR $100 million in cash + strong cash flows from existing fields to aggressively expand its drilling program in 2012. Growth of production and proven reserves is what we want in our E&P stocks.
> It often takes a bold step like this to move a company to the next level.
> GPOR has a solid base of production in So. Louisiana + incredible near-term upside in the Permian Basin (West Texas), Niobrara, and Utica Shale.
> They have HUGE international projects underway in Thailand and the Canadian Oil Sands.
Dan
OKLAHOMA CITY, Nov. 30, 2011 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR - News) today announced that it has priced its previously-announced underwritten public offering of 5,000,000 shares of its common stock at a public offering price of $29.00 per share, of which 4,000,000 shares will be sold by Gulfport and 1,000,000 shares will be sold by one of its stockholders. The underwriters have an option to purchase a maximum of 600,000 additional shares from Gulfport and a maximum of 150,000 additional shares from the selling stockholder, in each case at the public offering price (less the underwriting discount) solely to cover over-allotments. Net proceeds to Gulfport from the sale of the 4,000,000 shares, after underwriting discounts and estimated expenses, will be approximately $110.9 million. Gulfport intends to use its net proceeds from this offering to repay the current outstanding balance under its secured revolving credit facility, to fund capital expenditures associated with drilling, development and infrastructure, principally in the Utica Shale in Ohio, and for general corporate purposes. Gulfport will not receive any proceeds from the sale of shares of common stock by the selling stockholder. The offering is expected to close on December 5, 2011, subject to customary closing conditions.
> Take a look at the 9/30/11 balance sheet. This equity offering wipes out all debt and gives GPOR $100 million in cash + strong cash flows from existing fields to aggressively expand its drilling program in 2012. Growth of production and proven reserves is what we want in our E&P stocks.
> It often takes a bold step like this to move a company to the next level.
> GPOR has a solid base of production in So. Louisiana + incredible near-term upside in the Permian Basin (West Texas), Niobrara, and Utica Shale.
> They have HUGE international projects underway in Thailand and the Canadian Oil Sands.
Dan
OKLAHOMA CITY, Nov. 30, 2011 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR - News) today announced that it has priced its previously-announced underwritten public offering of 5,000,000 shares of its common stock at a public offering price of $29.00 per share, of which 4,000,000 shares will be sold by Gulfport and 1,000,000 shares will be sold by one of its stockholders. The underwriters have an option to purchase a maximum of 600,000 additional shares from Gulfport and a maximum of 150,000 additional shares from the selling stockholder, in each case at the public offering price (less the underwriting discount) solely to cover over-allotments. Net proceeds to Gulfport from the sale of the 4,000,000 shares, after underwriting discounts and estimated expenses, will be approximately $110.9 million. Gulfport intends to use its net proceeds from this offering to repay the current outstanding balance under its secured revolving credit facility, to fund capital expenditures associated with drilling, development and infrastructure, principally in the Utica Shale in Ohio, and for general corporate purposes. Gulfport will not receive any proceeds from the sale of shares of common stock by the selling stockholder. The offering is expected to close on December 5, 2011, subject to customary closing conditions.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group