Gulfport Energy Corporation did better in the third quarter than analysts predicted, recording $608.4 million in net income and $160 million of adjusted EBITDA.
The Oklahoma City company reported financial and operating results for the three months ended September 30, 2023 and provided an update on its 2023 development plan and financial guidance.
It had $156.3 million of net cash provided by operating activities and $48.9 million of adjusted free cash flow. During the quarter, Gulfport also xxpanded common stock repurchase authorization by 63 percent to $650 million and repurchased 3.9 million shares of common stock for approximately $334.6 million since the inception of the repurchase program.
Gulfport stated it also reaffirmed a borrowing base of $1.1 billion with elected commitments to remain at $900 million.
During the quarter, the company had net production of 1,056.9 MMcfe per day and also completed a Marcellus two-well pad in Belmont County, Ohio and recently began flowback operations in October 2023.
As a result, Gulfport stated it was raising full year 2023 net production guidance to 1,045 MMcfe – 1,055 MMcfe per day and reducing guidance for total base capital expenditures to $435 million – $455 million, consisting of drilling and completion expenditures of $385 million – $395 million and maintenance leasehold and land investment of $50 million – $60 million, excluding discretionary acreage acquisitions.
“Gulfport continued to make steady progress in the third quarter, demonstrated by our strong production profile, robust margins, improvement in operational efficiencies and cycle times and the continued return of capital to shareholders through our common share repurchase program,” stated John Reinhart, President and CEO.
He said the company realized more than $35 million in capital savings on its full year 2023 drilling and completion budget. The money will be reinvested into what the firm detailed as “high-quality assets” and increase operated working interests and adding incremental activity in both the Utica and SCOOP.
“We plan to accelerate drilling on seven additional wells, two of which will complete drilling during the fourth quarter, as well as initiate completion operations on a three-well Utica pad,” he added.
While lowering the company’s 2023 capital budget, the firm plans to increase 2023 production guidance, expecting to deliver total net production nearly 3% above the initial l2023 guidance provided in February.
Gulfport also plans to return capital to shareholders through more common stock repurchases. The company will also search for more acreage acquisitions
“Through September 30, we have invested roughly $25 million in discretionary acreage acquisition opportunities during 2023 and remain on target to allocate $40 million of our robust 2023 adjusted free cash flow to be invested in extending our high-quality inventory by approximately 1.5 years and provide optionality for near term development,” said Reinhart.