A restructuring at Oklahoma City-based Gulfport Energy led to $558.1 million in fourth quarter 2021 net income and $224.9 million of adjusted EBITDA.
The company said its operations during the quarter generated $128.3 million net cash and $133.9 million of free cash flow. It compares to $126.3 million of net cash flow and $69.7 million free cash flow in the third quarter of 2021.
Gulfport said it also delivered net production 2% above and capital expenditures 2% below the midpoint of its original 2021 guidance for the full year.
For all of 2021, Gulfport reported $138.2 million of net income and $716.8 million of adjusted EBITDA. The company also managed to reduce total per unit expense by nearly 20% over 2020 costs.
Gulfport leadership indicated that it intends to invest nearly $360 million of capital supporting a more continuous drilling program in the Utica in 2022, a move it expects to result in more than 5% production growth in 2023.
Gulfport stated in its quarterly report it expects to deliver full year net production of nearly 1 Bcfe a day.
“Our 2022 development program is centered around more consistent drilling operations in the Utica, allowing for increased operational efficiencies and opportunities for incremental cost reductions,” said Tim Cutt, CEO of Gulfport.
He believes the focused drilling operations in the Utica will result in production growth of more than 5% in 2023 and modest growth through 2025.
As of December 31, 2021, Gulfport had approximately $3.3 million of cash and cash equivalents, $164.0 million of borrowings under its revolving credit facility, $122.1 million of letters of credit outstanding and $550 million of outstanding 2026 senior notes.
Gulfport’s liquidity at December 31, 2021, totaled approximately $417.2 million, comprised of the $3.3 million of cash and cash equivalents and approximately $413.9 million of available borrowing capacity under its new revolving credit facility.
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