http://brontecapital.blogspot.com/2012/ ... al_23.html
dan, what's your take on this?
GPOR being shorted
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prince_jake_33
- Posts: 242
- Joined: Mon Apr 26, 2010 2:21 pm
Re: GPOR being shorted
The information contained in this report is very complicated. We need our leader to figure this one out. Every company we own seems to going down about the same amount, not just GPOR.
Re: GPOR being shorted
The shorts will get hammered if Gulfport reports strong results from the first couple Utica Shale wells. The logs look very good and they should have first production by mid-summer.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GPOR being shorted
posted on seeking alpha--excerpt--
"Gulfport Energy (GPOR) would be one of our picks and yesterday the company hit a new 52-week low as shares fell $1.16 (5.76%) to close at $18.97/share on volume of 860 thousand. The company has really been taken to the woodshed in the past few weeks and it had to do with the earnings calls and a deal with their Permian assets, but there are brighter days ahead for this play as they continue drilling in the Utica and bring online their oil sands play."
complete article here--
http://seekingalpha.com/article/617761- ... urce=yahoo
the permian deal is thus---
Entry into a Material Definitive Agreement, Financial Statements and Exhibit
Item 1.01. Entry into a Material Definitive Agreement.
On May 7, 2012, Gulfport Energy Corporation ("Gulfport") entered into a Contribution Agreement (the "Contribution Agreement") with Diamondback Energy, Inc. ("Diamondback"). Diamondback was incorporated on December 30, 2011 for purposes of undertaking an initial public offering ("Diamondback IPO") of its common stock, par value $0.01 per share (the "Common Stock"), pursuant to a Registration Statement on Form S-1 (Registration No. 333-179502) initially filed with the Securities and Exchange Commission on February 13, 2012. Diamondback has not conducted and will not conduct any material operations prior to the transactions described below. Prior to the completion of the Diamondback IPO, Diamondback will acquire all the outstanding equity interests in Windsor Permian LLC ("Windsor Permian"), which as of March 31, 2012, owned and operated approximately 30,025 net acres of oil and gas interests in the Permian Basin in West Texas.
Under the terms of the Contribution Agreement, Gulfport agreed to contribute to Diamondback, prior to the closing of the Diamondback IPO, all of its oil and gas interests in the Permian Basin in exchange for (i) shares of Common Stock representing 35% of Diamondback's outstanding Common Stock immediately prior to the closing of the Diamondback IPO and (ii) $63,590,050.00 in the form of a non-interest bearing promissory note, which will be repaid in full upon the closing of the Diamondback IPO with a portion of the net proceeds from that offering. The aggregate consideration payable to Gulfport is subject to a post-closing cash adjustment based on changes in Windsor Permian's working capital, long-term debt and other items referred to in the Contribution Agreement as of the date of the contribution. Windsor Permian is the operator of the acreage to be contributed by Gulfport. Gulfport's obligation to make this contribution is contingent upon, among other things, the contribution to Diamondback of all the outstanding equity interests in Windsor Permian by DB Energy Holdings LLC ("DB Holdings"), Gulfport's satisfaction with the terms of the Diamondback IPO and customary closing conditions. Under the contribution agreement, Gulfport is generally responsible for all liabilities and obligations with respect to the contributed properties arising prior to the contribution and Diamondback is responsible for such liabilities and obligations arising after the contribution.
In connection with the contribution, Gulfport and Diamondback will enter into an Investor Rights Agreement in which Gulfport will have the right, for so long as Gulfport beneficially owns more than 10% of Diamondback's outstanding Common Stock, to designate one individual as a nominee to serve on Diamondback's board of directors. Such nominee, if elected to Diamondback's board, will also serve on each committee of the board so long as he or she satisfies the independence and other requirements for service on the applicable committee of the board. So long as Gulfport has the right to designate a nominee to Diamondback's board and there is no Gulfport nominee actually serving as a Diamondback director, Gulfport shall have the right to appoint one individual as an advisor to the board who shall be entitled to attend board and committee meetings. Gulfport will also be entitled to certain information rights and Diamondback will grant Gulfport certain demand and "piggyback" registration rights obligating Diamondback to register with the SEC any shares of Common Stock owned by Gulfport.
The preceding descriptions of the Contribution Agreement and the Investor Rights Agreement are qualified in their entirety by reference to the full text of such agreements, copies of which are attached as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.
Diamondback, Windsor Permian and DB Holdings are entities controlled by Wexford Capital LP ("Wexford"). Charles E. Davidson, the Chairman and Chief Investment Officer of Wexford, beneficially owned approximately 9.5% of Gulfport's outstanding common stock as of March 13, 2012. Mike Liddell, Gulfport's Chairman of the Board and a director of Gulfport, currently serves as the operating member and chairman of Windsor Permian and has an interest in DB Holdings. A special committee of the Board of Directors consisting solely of independent directors negotiated and approved this transaction on behalf of Gulfport.
"Gulfport Energy (GPOR) would be one of our picks and yesterday the company hit a new 52-week low as shares fell $1.16 (5.76%) to close at $18.97/share on volume of 860 thousand. The company has really been taken to the woodshed in the past few weeks and it had to do with the earnings calls and a deal with their Permian assets, but there are brighter days ahead for this play as they continue drilling in the Utica and bring online their oil sands play."
complete article here--
http://seekingalpha.com/article/617761- ... urce=yahoo
the permian deal is thus---
Entry into a Material Definitive Agreement, Financial Statements and Exhibit
Item 1.01. Entry into a Material Definitive Agreement.
On May 7, 2012, Gulfport Energy Corporation ("Gulfport") entered into a Contribution Agreement (the "Contribution Agreement") with Diamondback Energy, Inc. ("Diamondback"). Diamondback was incorporated on December 30, 2011 for purposes of undertaking an initial public offering ("Diamondback IPO") of its common stock, par value $0.01 per share (the "Common Stock"), pursuant to a Registration Statement on Form S-1 (Registration No. 333-179502) initially filed with the Securities and Exchange Commission on February 13, 2012. Diamondback has not conducted and will not conduct any material operations prior to the transactions described below. Prior to the completion of the Diamondback IPO, Diamondback will acquire all the outstanding equity interests in Windsor Permian LLC ("Windsor Permian"), which as of March 31, 2012, owned and operated approximately 30,025 net acres of oil and gas interests in the Permian Basin in West Texas.
Under the terms of the Contribution Agreement, Gulfport agreed to contribute to Diamondback, prior to the closing of the Diamondback IPO, all of its oil and gas interests in the Permian Basin in exchange for (i) shares of Common Stock representing 35% of Diamondback's outstanding Common Stock immediately prior to the closing of the Diamondback IPO and (ii) $63,590,050.00 in the form of a non-interest bearing promissory note, which will be repaid in full upon the closing of the Diamondback IPO with a portion of the net proceeds from that offering. The aggregate consideration payable to Gulfport is subject to a post-closing cash adjustment based on changes in Windsor Permian's working capital, long-term debt and other items referred to in the Contribution Agreement as of the date of the contribution. Windsor Permian is the operator of the acreage to be contributed by Gulfport. Gulfport's obligation to make this contribution is contingent upon, among other things, the contribution to Diamondback of all the outstanding equity interests in Windsor Permian by DB Energy Holdings LLC ("DB Holdings"), Gulfport's satisfaction with the terms of the Diamondback IPO and customary closing conditions. Under the contribution agreement, Gulfport is generally responsible for all liabilities and obligations with respect to the contributed properties arising prior to the contribution and Diamondback is responsible for such liabilities and obligations arising after the contribution.
In connection with the contribution, Gulfport and Diamondback will enter into an Investor Rights Agreement in which Gulfport will have the right, for so long as Gulfport beneficially owns more than 10% of Diamondback's outstanding Common Stock, to designate one individual as a nominee to serve on Diamondback's board of directors. Such nominee, if elected to Diamondback's board, will also serve on each committee of the board so long as he or she satisfies the independence and other requirements for service on the applicable committee of the board. So long as Gulfport has the right to designate a nominee to Diamondback's board and there is no Gulfport nominee actually serving as a Diamondback director, Gulfport shall have the right to appoint one individual as an advisor to the board who shall be entitled to attend board and committee meetings. Gulfport will also be entitled to certain information rights and Diamondback will grant Gulfport certain demand and "piggyback" registration rights obligating Diamondback to register with the SEC any shares of Common Stock owned by Gulfport.
The preceding descriptions of the Contribution Agreement and the Investor Rights Agreement are qualified in their entirety by reference to the full text of such agreements, copies of which are attached as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.
Diamondback, Windsor Permian and DB Holdings are entities controlled by Wexford Capital LP ("Wexford"). Charles E. Davidson, the Chairman and Chief Investment Officer of Wexford, beneficially owned approximately 9.5% of Gulfport's outstanding common stock as of March 13, 2012. Mike Liddell, Gulfport's Chairman of the Board and a director of Gulfport, currently serves as the operating member and chairman of Windsor Permian and has an interest in DB Holdings. A special committee of the Board of Directors consisting solely of independent directors negotiated and approved this transaction on behalf of Gulfport.
Re: GPOR being shorted
that deal takes them essentially out of the permian except for their holdings of diamondback. now they must think their 35% of diamondback is worth it, i would hope.
seems like the haircut sure has been overdone, imo.
anyother opinions on this deal?? dan?
jim
seems like the haircut sure has been overdone, imo.
anyother opinions on this deal?? dan?
jim
Re: GPOR being shorted
IPO FILING: Diamondback Energy (FANG)
Posted: February 14, 2012 at 9:35 am
Print Email inShare.1
Diamondback Energy, Inc. has filed its paperwork with the SEC to conduct an initial public offering. While the company intends to apply for listing on The NASDAQ Global Market under the symbol “FANG,” no price range has been set and there is not even an underwriter selected. The filing is for up to $50 million in common stock, but that can change before the IPO prices.
The shares are also being sold by DB Holdings (under Wexford). Here is the company’s self description:
We are an independent oil and natural gas company currently focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. This basin, which is one of the major producing basins in the United States, is characterized by an extensive production history, a favorable operating environment, mature infrastructure, long reserve life, multiple producing horizons, enhanced recovery potential and a large number of operators.
We began operations in December 2007 with our acquisition of 4,174 net acres with production at the time of acquisition of approximately 800 net barrels of oil equivalent, or BOE, a day from 32 gross (16 net) wells in the Permian Basin. Subsequently, we acquired approximately 23,972 additional net acres, which brought our total net acreage position in the Permian Basin to 28,146 net acres at December 31, 2011. We are the operator of approximately 97% of our Permian Basin acreage. Since our initial acquisition in the Permian Basin through December 31, 2011, we have participated in the drilling of 142 gross (86 net) wells in the Permian Basin, of which we operate 132 gross (81 net) wells. Of the 142 gross wells drilled, 130 were completed as producing wells and 12 are in various stages of completion.
Our activities are primarily focused on the Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations, which we refer to collectively as the Wolfberry play. The Wolfberry play is characterized by high oil and liquids rich natural gas, multiple vertical and horizontal target horizons, extensive production history, long-lived reserves and high drilling success rates.
As of December 31, 2011, our estimated proved oil and natural gas reserves were 24,750 million BOE, or MBOE…
Read more: IPO FILING: Diamondback Energy (FANG) - 24/7 Wall St. http://247wallst.com/2012/02/14/ipo-fil ... z1vu0qyn3k
Posted: February 14, 2012 at 9:35 am
Print Email inShare.1
Diamondback Energy, Inc. has filed its paperwork with the SEC to conduct an initial public offering. While the company intends to apply for listing on The NASDAQ Global Market under the symbol “FANG,” no price range has been set and there is not even an underwriter selected. The filing is for up to $50 million in common stock, but that can change before the IPO prices.
The shares are also being sold by DB Holdings (under Wexford). Here is the company’s self description:
We are an independent oil and natural gas company currently focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. This basin, which is one of the major producing basins in the United States, is characterized by an extensive production history, a favorable operating environment, mature infrastructure, long reserve life, multiple producing horizons, enhanced recovery potential and a large number of operators.
We began operations in December 2007 with our acquisition of 4,174 net acres with production at the time of acquisition of approximately 800 net barrels of oil equivalent, or BOE, a day from 32 gross (16 net) wells in the Permian Basin. Subsequently, we acquired approximately 23,972 additional net acres, which brought our total net acreage position in the Permian Basin to 28,146 net acres at December 31, 2011. We are the operator of approximately 97% of our Permian Basin acreage. Since our initial acquisition in the Permian Basin through December 31, 2011, we have participated in the drilling of 142 gross (86 net) wells in the Permian Basin, of which we operate 132 gross (81 net) wells. Of the 142 gross wells drilled, 130 were completed as producing wells and 12 are in various stages of completion.
Our activities are primarily focused on the Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations, which we refer to collectively as the Wolfberry play. The Wolfberry play is characterized by high oil and liquids rich natural gas, multiple vertical and horizontal target horizons, extensive production history, long-lived reserves and high drilling success rates.
As of December 31, 2011, our estimated proved oil and natural gas reserves were 24,750 million BOE, or MBOE…
Read more: IPO FILING: Diamondback Energy (FANG) - 24/7 Wall St. http://247wallst.com/2012/02/14/ipo-fil ... z1vu0qyn3k