Gulfport Energy Corporation reported $129.5million in net cash provided by its operating activities and $80.3 million of free cash flow in the second quarter of the year.
Total net income was $256.6 million and $204.5 million of adjusted EBITDA. As a result, the Oklahoma City company increased its borrowing base to $1 billion from $850 million. It also repurchased nearly 2.2 million shares of common stock for a total of $189.3 million as of July 28, 2022.
Gulfport also expanded its common stock repurchase program from $200 million to $300 million.
“Gulfport delivered another strong quarter, driven by the continued outperformance of our historical development program and the robust productivity from our 2022 SCOOP turn in lines,” stated Tim Cutt, CEO of Gulfport.
“As we enter our period of peak activity in the third quarter, the inflationary effects impacting the industry have led us to increase our capital outlook for the year. In addition, the required casing remediation we discussed in the previous quarter caused us to release our Utica frac unit and delay the completion program in 2022. After an approximately 45-day delay, we returned to executing the Utica completion program and plan to bring the next pad online in mid-August.”
Gulfport’s net daily production for the second quarter of 2022 averaged 959.1 MMcfe per day, primarily consisting of 654.8 MMcfe per day in the Utica and 304.3 MMcfe per day in the SCOOP. For the second quarter of 2022, Gulfport’s net daily production mix was comprised of approximately 90% natural gas, 7% natural gas liquids (“NGL”) and 3% oil and condensate.
Capital investment was $105.2 million (on an incurred basis) for the second quarter of 2022, of which $95.2 million related to drilling and completion (“D&C”) activity and $10.0 million related to leasehold and land investment.
For the six-month period ended June 30, 2022, capital investment was $205.6 million (on an incurred basis), of which $189.5 million related to D&C activity and $16.0 million to leasehold and land investment.
As of June 30, 2022, Gulfport had approximately $6.6 million of cash and cash equivalents, $124.0 million of borrowings under its credit facility, $113.2 million of letters of credit outstanding and $550 million of outstanding 2026 Senior Notes.
Gulfport’s liquidity at June 30, 2022, totaled approximately $469 million, comprised of the $6.6 million of cash and cash equivalents and approximately $462.8 million of available borrowing capacity under its credit facility.
In June 2022, the company paid approximately $1.4 million in cash dividends on its preferred stock.
Driven by inflationary effects, Gulfport has updated its forecasted capital expenditures for D&C activity and expects to invest in a range of $375 million to $405 million during 2022. In addition, based on activity to date and planned activity, Gulfport has increased its forecasted leasehold and land investment by approximately $10 million during 2022.
Delays associated with the casing remediation in the Utica has deferred the expected turn-in-line dates for several wells and Gulfport has narrowed its expected full year net production to a range of 975 MMcfe per day to 1,000 MMcfe per day.
Taking into account the previously mentioned updates, Gulfport has also updated its transportation, gathering, processing and compression expense per Mcfe for 2022.
Despite these changes, Gulfport maintained its free cash flow guidance for the year.
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