Gulfport Energy reports Q2 EPS 29c, consensus 1c » 16:3408/0408/04/20
As of June 30, 2020, the…
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...As a result of the current commodity price environment, during the second quarter of 2020 Gulfport made the strategic decision to defer near-term production to later periods in 2020 and early 2021, when natural gas prices are expected to be higher. 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.
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Gulfport Energy holder Firefly withdraws nomination of board candidates » 09:0906/0206/02/20
Firefly Value Partners,…
Firefly Value Partners, which manages funds that, together with affiliates, collectively beneficially own 13.1% of the outstanding common stock of Gulfport Energy, announced that it is withdrawing its nomination of director candidates for election at the Company's 2020 Annual Meeting of Stockholders. Firefly issued the following statement: "We believe that our public and private engagement with Gulfport over the past 18 months has been the catalyst for significant and positive changes at the Company. Based on the announcement yesterday that Gulfport would be including two additional new nominees on its slate of directors, effective following the 2020 Annual Meeting Gulfport will have added five new directors since the beginning of our engagement. For now, we are satisfied that the Company has heard our concerns and has modified its Board composition - including the retirement of four directors since the 2019 annual meeting - in response. On that basis, we are withdrawing our director nominations. We note, importantly, that this is the beginning of the hard work for the Gulfport Board, not the end. The past Board at Gulfport was a dilution machine. This refreshed Board has a chance to turn the page and create shareholder value from the exceptional assets and opportunities that Gulfport possesses. The Board must work to restore shareholder confidence by allocating capital well, holding management accountable and ensuring that accounting controls and governance are robust. As a result of low hydrocarbon prices, North American rigs and natural gas production have fallen and will continue to decline until prices rise substantially. At the same time, demand will recover from current coronavirus-driven shocks. The result of this supply-demand dynamic is an extraordinarily positive outlook for natural gas in 2021 and 2022, especially for low-cost producers such as Gulfport. The Company updated its production guidance this morning; we are cautiously optimistic that the Company finally appreciates these favorable tailwinds and is taking steps to maximize its advantage and cash flow. With significant free cash flow potential in a normalized natural gas price environment, no debt maturity until December 2021 and no maturity of an indenture until 2023, time is on the Company's side. There is certainly no reason for Gulfport to issue equity while the market fails to recognize the Company's value. The Gulfport Board has been recast and now must prove itself. Shareholders will not tolerate value-destructive mistakes, like the ones that put the Company's stock into a tailspin over the last four years, and will continue to demand accountability for Gulfport's performance. All eyes are on Gulfport and its Board."
Gulfport Energy to reduce 2020 recurring total G&A by $2M-4M » 07:0606/0206/02/20
Gulfport recently implemented several general and administrative expense cost saving initiatives, including tiered salary reductions for most employees, its senior management team and its Board of Directors beginning early June 2020. This includes a 10% salary reduction to Gulfport's senior management team and a 20% salary reduction for the Company's CEO The cash retainer paid to the Company's Board of Directors will also be reduced by 10%. In addition, select furloughs will be implemented to reduce costs and better align the Company with its updated operating plan. All health and related benefits will still be available to furloughed employees during their furlough time. The Company expects these cost saving items, combined with other non-payroll initiatives, to reduce its 2020 recurring total G&A by approximately $2M to $4M and now forecasts its 2020 total recurring G&A to be at the low end of its original guidance range. In addition, Gulfport has or expects to enter into agreements with third-parties to reduce midstream costs and obligations in both of its operating areas. Gulfport estimates these initiatives will reduce its midstream expenses, including transportation expenses, during the second half of 2020 and 2021 by more than $10M. As a result of these cost savings initiatives, Gulfport expects to be at or below the low end of its previously provided natural gas differential guidance range for 2020.
Gulfport Energy expects 2020 total capex at midpoint of $285M-$310M 07:0506/0206/02/20
Gulfport Energy sees Q2 net production averaging 1,000 MMCfe-1,050 MMcfe/day 07:0506/0206/02/20
Gulfport Energy sees 2020 net production to average 1,000 MMCfe-1,075 MMcfe/day » 07:0406/0206/02/20
As a result of the…
As a result of the current commodity price environment, Gulfport recently made the strategic decision to defer near-term production to later periods in 2020 and early 2021, when natural gas prices are expected to be materially higher when compared to mid-year strip pricing. In addition, Gulfport plans to complete an additional 3 gross wells in the Utica Shale during in the second half of 2020, providing incremental production late this year and into early 2021 in the anticipation of higher prices during the winter months. Lastly, Gulfport's updated production guidance reflects the recent production impacts due to shut ins from both the Company and its non-operated partners due to low prices. Considering all these factors, Gulfport now expects 2020 full year net production to average 1,000 MMcfe to 1,075 MMcfe per day. In addition, Gulfport forecasts its second quarter of 2020 production to average approximately 1,000 MMcfe to 1,050 MMcfe per day. With the addition of this activity in late 2020, Gulfport is currently projecting 2020 total capital expenditures to be at the midpoint of the previously provided range of $285M million to $310M.
Gulfport Energy expects to invest $300M of capital spend in 2021 » 07:0306/0206/02/20
David Wood, President and…
David Wood, President and CEO, commented, "As stated on our recent earnings call, we are updating Gulfport's 2020 plan, which now defers production from mid-year when prices are low to late 2020 and into 2021 when prices are expected to be higher. We are also now planning on more completion activity late this year in the Utica to take advantage of potentially strong prices in the winter. The savings we are seeing in drilling and completion activities allows us to add this activity and still be at the midpoint of our previously provided capex guidance range. We believe these efforts will better position the Company as we enter 2021, adding meaningful value and allowing for higher production in a better forward commodity price environment to maximize returns and cash flow." As it relates to our outlook for 2021, under a maintenance level program, we would expect to invest approximately $300M of capital spend to maintain a similar level of year over year production. Assuming strip pricing of $2.75 per MMBtu for natural gas in 2021, we would expect to be cash flow neutral under this program. Should gas prices be between $2.75 per MMBtu and $3.00 per MMBtu, we would remain disciplined to this maintenance program, generating incremental free cash flow and highlighting our focus on exercising capital discipline and maximizing cash flow generation."
Gulfport Energy expects to generate positive FCF in 2020 » 07:0106/0206/02/20
Gulfport Energy Corporation announced an update to its 2020 operational and financial guidance and provided an update on the Company's ongoing cost savings initiatives. Key highlights are as follows: Optimized production profile to take advantage of higher commodity price environment in late 2020 and 2021; New forecasted 2020 full year net production to average 1,000 MMcfe to 1,075 MMcfe per day; Plan continues to generate positive free cash flow in 2020 at current strip prices; Initiated plan to further reduce annual G&A expenses by approximately $2M to $4M and targeting low end of previously provided guidance for 2020: Optimization efforts expect to reduce near-term firm transportation expenses by more than $10M through 2021 and targeting low end of previously provided natural gas differential guidance for 2020.
Gulfport Energy price target raised to $4 from $2 at Imperial Capital » 05:0005/1105/11/20
Imperial Capital analyst…
Imperial Capital analyst Jason Wangler raised the firm's price target on Gulfport Energy to $4 from $2 and keeps an Outperform rating on the shares. The company is shaping its production curve to align with the improving natural gas forward curve while focusing on debt reduction, Wangler tells investors in a research note.
Gulfport Energy withdraws FY20 production guidance » 16:1605/0705/07/20
Based on continued…
Based on continued efficiencies, service cost deflation and actual results to date, Gulfport currently forecasts 2020 total capital expenditures to be at or below the low end of the previously provided range of $285M-$310M. Because of the sharp decline in oil prices since early March 2020, as well as the current outlook for low oil prices throughout the second quarter of 2020, Gulfport plans to shut in a minimal amount production over the next few months, including a large number of vertical wells in the SCOOP. The company expects these shut ins to impact its production by less than 20 MMcfe per day. Gulfport also anticipates some of its non-operated production may be negatively impacted by voluntary shut-ins due to low prices. In addition, the COVID-19 pandemic creates risks of delays in new drilling and completion activities that could negatively impact Gulfport, its non-operated partners or its service providers. Finally, Gulfport is actively exploring opportunities to potentially defer near-term production to later periods in 2020 or early 2021 when gas prices are materially higher in an effort to maximize returns and cash flow. Considering all of these factors, Gulfport's previously provided production guidance for FY20 should no longer be relied upon. Gulfport reaffirms its previously provided 2020 forecasted realizations and projected operating costs guidance.