Gulfport Energy Corporation reported financial and operational results for the three months ended June 30, 2020 showing a net loss of $561.1 million or $3.51 per diluted share.
The Oklahoma City company’s reported adjusted net income was $47.1 million or 29 cents a share for the quarter. Its generated adjusted EBITDA was $145 million while reported cash provided by operating activities was $116.4 million for the quarter.
Excluding working capital changes, Gulfport’s generated operating cash flow was $97.9 million.
As of June 30, 2020, the Company’s liquidity totaled approximately $255.7 million, comprised of the $700 million borrowing base plus approximately $2.8 million in cash on hand less $324.1 million outstanding letters of credit and $123.0 million of revolver draw.
The Company’s incurred capital expenditures during the second quarter of 2020 benefited from continued improvement in drilling and completions operations, efficiency gains and lower service costs. During the second quarter of 2020, Gulfport’s incurred total capital expenditures were $54.0 million. Gulfport’s incurred total capital expenditures includes approximately $51.7 million of drilling and completion capital expenditures and $2.3 million of land capital expenditures.
For the six-month period ended June 30, 2020, Gulfport’s incurred total capital expenditures were $189.3 million. Gulfport’s incurred total capital expenditures includes approximately $182.5 million of D&C capital expenditures and $6.8 million of land capital expenditures.
Gulfport leadership decided in the second quarter to defer near-term production to later periods of 2020 and early 2021 because of the current commodity price environment. The company anticipates higher natural gas prices during those periods.
In addition, Gulfport now plans to complete an additional 7 gross wells in the Utica Shale in the second half of 2020. This additional activity provides incremental production late this year and into early 2021 in the anticipation of higher prices during the winter months.
Gulfport expects minimal impact to full year 2020 production levels from this activity and reaffirms its 2020 full year net production to average 1,000 MMcfe to 1,075 MMcfe per day. In addition, based on current pricing levels, Gulfport forecasts its third quarter of 2020 production to average approximately 980 MMcfe to 1,030 MMcfe per day.
As a result of its cost-savings moves and improvements in costs of drilling and completions, Gulfport expects capital expenditures to be at the low-end of the previously provided range of $285 million to $310 million.
Gulfport’s net daily production for the second quarter of 2020 averaged approximately 1,027 MMcfe per day. For the second quarter of 2020, Gulfport’s net daily production mix was comprised of approximately 91% natural gas, 6% natural gas liquids (“NGL”) and 3% oil.
Click here to view entire report.