Earnings improve for Gulfport Energy after emerging from bankruptcy

Oklahoma Natgas producer Gulfport Energy files for bankruptcy with $2.5bn  in debts

 

A year after filing Chapter 11 bankruptcy and emerging in May 2021, Oklahoma City’s Gulfport Energy Corporation reported improved earnings for the third quarter of the year.

The company stated its net cash from operating activities grew to $126.3 million and delivered $69.7 million of free cash flow. As a result, Gulfport increased its 2021 full year Free Cash Flow guidance $55 million to a range of $345 million to $365 million.

Its amended credit facility also increased the company liquidity by more than $160 million and the company authorized a stock repurchase program to acquire up to $100 million of outstanding common stock.

“Gulfport delivered strong third quarter 2021 results, driven by reservoir outperformance and operational execution,” said Tim Cutt, CEO of Gulfport.

For the third quarter of 2021, the Company spud two gross operated wells in the Utica with a planned average lateral length of approximately 15,920 feet and two gross operated wells in the SCOOP with a planned average lateral length of approximately 9,880 feet. In addition, Gulfport turned-to-sales two gross operated wells in the Utica with an average lateral length of approximately 13,700 feet.

Gulfport’s net daily production for the third quarter of 2021 averaged 973.3 MMcfe per day, primarily consisting of 699.0 MMcfe per day in the Utica and 273.8 MMcfe per day in the SCOOP. For the third quarter of 2021, Gulfport’s net daily production mix was comprised of approximately 89% natural gas, 8% natural gas liquids and 3% oil.

Capital investment was $80.9 million for the third quarter of 2021, of which $77.8 million related to drilling and completion activity and $3.1 million related to leasehold and land investment.

For the nine-month period ended September 30, 2021, capital investment was $221.5 million, of which $214.0 million related to D&C activity and $7.5 million to leasehold and land investment.

 

Gulfport increased guidance for its expected realized natural gas liquids price, before hedges, as a percent of WTI to 55% to 60% from a range of 45% to 50% previously. The increase was driven by strong realizations reported during the nine-month period ended September 30, 2021 and expectations for continued strong fundamentals to result in higher prices during the fourth quarter of 2021.

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