Gulfport Energy Corporation (Nasdaq:GPOR) today reported financial
and operating results for the first quarter of 2012 and provided an
update on its 2012 activities.
For the first quarter of 2012, Gulfport reported net income of
$26.9 million on oil and natural gas revenues of $65.4 million, or
$0.48 per diluted share. EBITDA (as defined below) for the first
quarter of 2012 was $48.6 million and cash flow from operating
activities before changes in working capital (as defined below) was
$49.8 million.
Financial Highlights
- Produced oil and natural gas sales volumes of 645,056 barrels
of oil equivalent ("BOE"), or 7,089 barrels of oil equivalent per
day ("BOEPD"), in the first quarter of 2012, a 24% year-over-year
increase from the first quarter of 2011
- Recorded net income of $26.9 million in the first quarter of
2012, a 27% year-over-year increase from the first quarter of
2011
- Generated $48.6 million of EBITDA in the first quarter of 2012,
a 42% year-over-year increase from the first quarter of 2011
Contribution
As previously announced, on May 7, 2012, Gulfport entered into a
contribution agreement with Diamondback Energy, Inc. ("Diamondback
Energy"), in which Gulfport agreed to contribute, prior to the
closing of Diamondback Energy's initial public offering, all of
Gulfport's oil and natural gas interests in the Permian Basin in
exchange for (i) common stock representing 35% of Diamondback
Energy's outstanding common stock immediately prior to the closing
of its initial public offering and (ii) approximately $63.6 million
to be paid to Gulfport upon closing of such offering, subject to
adjustment. Gulfport's obligation to complete the proposed
contribution is subject to various closing conditions, including
Gulfport's satisfaction with the terms of the Diamondback
offering.
Production
For the first quarter of 2012, net production was 595,060
barrels of oil, 210,731 thousand cubic feet ("MCF") of natural gas
and 624,745 gallons of natural gas liquids ("NGL"), or 645,056
BOE. Net production for the first quarter of 2012 by region
was 314,174 BOE at West Cote Blanche Bay ("WCBB"), 230,002 BOE at
Hackberry, 90,714 BOE in the Permian Basin and an aggregate of
10,166 BOE in the Bakken, Niobrara and other areas.
Realized price for the first quarter of 2012, which includes
transportation costs, was $107.56 per barrel of oil, $2.91 per MCF
of natural gas and $1.29 per gallon of NGL, for a total equivalent
price of $101.42 per BOE. Realized price for oil in the first
quarter of 2012 reflects the impact of fixed price contracts for
approximately 2,341 barrels of oil per day at a weighted average
price of $108.76 before transportation costs and
differentials. Gulfport currently has fixed price swaps in
place for 3,000 barrels of oil per day at a weighted average price
of $109.73 for the remainder of 2012.
Gulfport Energy
Corporation |
Production
Schedule |
(Unaudited) |
|
|
|
Production Volumes: |
1Q2012 |
1Q2011 |
|
|
|
Oil (MBbls) |
595.1 |
472.1 |
Gas (MMcf) |
210.7 |
164.9 |
NGL (MGal) |
624.7 |
608.6 |
Oil Equivalents (MBOE) |
645.1 |
514.1 |
|
|
|
Average Realized Price: |
|
|
|
|
|
Oil (per Bbl) |
$107.56 |
$95.73 |
Gas (per Mcf) |
$2.91 |
$4.37 |
NGL (per Gal) |
$1.29 |
$1.08 |
Oil Equivalents (BOE) |
$101.42 |
$90.60 |
Subsequent to the first quarter of 2012, net production for the
month of April averaged approximately 6,712 BOEPD.
Bank Redetermination
Gulfport recently completed its spring redetermination under its
revolving credit facility which resulted in its borrowing base
increasing from $125 million to $155 million, effective May 2,
2012. In connection with this process, Gulfport is pleased to
announce that Credit Suisse, Deutsche Bank Trust Company Americas,
and Iberiabank have joined The Bank of Nova Scotia, Amegy Bank
National Association, Key Bank National Association, and Texas
Capital Bank, N.A. as part of the Company's expanded lender
group.
Recent Operational
Highlights
- Gulfport reached total depth on its first horizontal well in
the Utica Shale, encountering 123 feet of average vertical
thickness within the Point Pleasant interval throughout the 8,143
foot horizontal lateral.
- Grizzly Oil Sands ULC ("Grizzly"), in which Gulfport owns a
24.9% interest, completed the acquisition of 47,720 acres and 824
million barrels of contingent resources through its purchase of its
May River property.
- Grizzly believes it has delineated sufficient resource at
Thickwood Hills to support the commercial development of the
property and plans to file a project regulatory application in
2012.
- Gulfport acquired 3,110 net acres located in Crockett County,
Texas in an emerging horizontal play in the Permian and is
currently participating in the drilling of its first horizontal
well in the Permian, the Janey 16-H, located in Upton County,
Texas.
- Gulfport drilled a total of 15 wells in Southern Louisiana
during the first quarter, completing 13 of the wells as productive
and one well waiting on completion.
- Seven rigs are currently active in Gulfport's four core
operating areas, with two rigs drilling in the Utica, two rigs
drilling at Hackberry, two rigs drilling in the Permian and one rig
drilling at WCBB.
Operational Update
Utica Shale
In the Utica Shale, Gulfport has reached total depth and set
pipe on the Wagner 1-28H, its first horizontal well in the play.
The well encountered an average vertical thickness of 123 feet
within the Point Pleasant interval and was drilled to a total
vertical depth of 8,673 feet with a 8,143 foot horizontal lateral.
At present, Gulfport has two rigs active in the Utica drilling
ahead on the second and third horizontal wells of
2012. Gulfport currently plans to rest its wells in the Utica
Shale for a minimum of 60 days following completion prior to
putting them on production.
Permian
In the Permian, five gross (2.4 net) wells were drilled on
Gulfport's acreage during the first quarter of 2012. During
the first quarter of 2012, Gulfport acquired approximately 3,110
net acres in the emerging horizontal play in Crockett County,
Texas. At present, two rigs are active on Gulfport's acreage in the
Permian, drilling ahead on the seventh and eighth gross (2.9 and
3.4 net) wells of 2012, one of which is a horizontal well testing
the horizontal drilling potential underlying Gulfport's acreage in
the play. All of Gulfport's oil and gas interests in the
Permian Basin are subject to the contribution agreement discussed
above.
Canadian Oil Sands
In the Canadian Oil Sands, Grizzly's Algar Lake SAGD Project is
on budget and on schedule for commissioning in the fourth quarter
of 2012 with first production expected to come online by mid-year
2013. During the first quarter of 2012, Grizzly completed the
acquisition of 47,720 acres and 824 million barrels of contingent
resources through the purchase of its May River property. From
an exploratory standpoint, following the 2011/2012 winter drilling
program, Grizzly believes it has delineated sufficient resource at
Thickwood Hills to support the commercial development of the
property and plans to file a project regulatory application in
2012.
Hackberry
At Hackberry, Gulfport drilled seven wells, completing six wells
as productive during the first quarter of 2012. In addition,
Gulfport performed ten recompletions at the field. At present,
Gulfport has two rigs active at Hackberry drilling ahead on the
eleventh and twelfth wells of 2012 at the field.
WCBB
At WCBB, Gulfport drilled eight wells, completing seven wells as
productive during the first quarter of 2012 with one well waiting
on completion. In addition, Gulfport performed eleven recompletions
at the field. At present, Gulfport has one rig active at WCBB
drilling ahead on the twelfth well of 2012 at the field.
Niobrara
In the Niobrara, Gulfport has concluded the remediation process
on the first of the three gross (1.5 net) vertical wells drilled
during 2011. The Ellgen 11-10-1 averaged approximately 70 barrels
of oil per day during the first 30 days of production subsequent to
the remediation with relatively low production decline. Gulfport
has processed the data from its 3-D seismic survey and has
identified a number of drilling locations within its Craig Dome
prospect.
2012 Guidance
As a result of revised timing assumptions surrounding completion
procedures in the Utica Shale, Gulfport currently estimates 2012
production to be in the range 2.9 million to 3.1 million
BOE. Second quarter 2012 production is currently estimated to
be in the range of 627,900 to 646,100 BOE. 2012 budgeted
exploration and production capital expenditures for 2012, excluding
acquisitions, are estimated to be in the range of $206 million to
$221 million. For 2012, Gulfport projects lease operating expense
to be in the range of $8.00 to $9.50 per BOE, general and
administrative expense to be between $3.50 to $4.25 per BOE,
production taxes to be between 10.0% to 10.5% of revenues and
depreciation, depletion and amortization expense to be in the range
of $32.00 to $34.00 per BOE. These estimates do not give
effect to our recently announced proposed contribution of our
Permian assets to Diamondback Energy.
GULFPORT ENERGY
CORPORATION |
2012
GUIDANCE |
|
|
|
Year Ending
12/31/2012 |
Forecasted Production |
|
Oil Equivalent - BOE |
2,900,000 - 3,100,000 |
Average Daily Oil Equivalent -
BOEPD |
7,923 - 8,470 |
|
|
Projected Year-Over-Year
Production Increase¹ |
24% - 33% |
|
|
Projected Cash Operating Costs per
BOE |
|
Lease Operating Expense -
$/BOE |
$8.00 - $9.50 |
Production Taxes - % of
Revenue |
10.0% - 10.5% |
General and Administrative --
$/BOE |
$3.50 - $4.25 |
|
|
Depreciation, Depletion and
Amortization per BOE |
$32.00 - $34.00 |
|
|
Budgeted Capital Expenditures - In
Millions:² |
|
West Cote Blanche
Bay |
$42 - $45 |
Hackberry |
$24 - $26 |
Permian |
$23 - $25 |
Niobrara |
$5 - $6 |
Grizzly |
$40 - $43 |
Utica |
$72 - $76 |
Total Budgeted Capital
Expenditures |
$206 - $221 |
|
|
|
|
¹ Based upon 2011 actual
production of 2.33 million BOE and the 2012 forecasted
production |
|
² Excludes amounts for
infrastructure, vertical integration projects and acquisitions |
|
In addition to its 2012 budgeted exploration and production
capital expenditures, Gulfport plans to spend approximately $30
million to $35 million on infrastructure and vertical integration
projects primarily related to its position in the Utica Shale.
Presentation
An updated presentation has been posted to the Company's
website. The presentation can be found at
www.gulfportenergy.com under the "Webcasts & Presentations"
section on the "Investor Relations" page. Information on the
Company's website does not constitute a portion of this press
release.
Conference Call
Gulfport will host a conference call on May 9, 2012 at 12:00 PM
Central Time to discuss its first quarter 2012 financial and
operational results. Interested parties may listen to the call
via Gulfport's website at www.gulfportenergy.com or by calling
toll-free at 877-291-1287 or 973-409-9250 for international
callers. The passcode for the call is 66860365. A replay
of the call will be available for two weeks at 855-859-2056 or
404-537-3406 for international callers. The replay passcode is
66860365. The webcast will be archived on the Company's
website and can be accessed on the Company's "Investor Relations"
page.
About Gulfport
Gulfport Energy Corporation is an Oklahoma City-based
independent oil and natural gas exploration and production company
with its principal producing properties located along the Louisiana
Gulf Coast and in the Permian Basin in West Texas. Gulfport has
also acquired acreage positions in the Niobrara Formation of
Western Colorado and the Utica Shale of Eastern Ohio. In addition,
Gulfport holds a sizeable acreage position in the Alberta Oil Sands
in Canada through its interest in Grizzly Oil Sands ULC and has
interests in entities that operate in Southeast Asia, including the
Phu Horm gas field in Thailand.
Forward Looking Statements
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). All
statements, other than statements of historical facts, included in
this press release that address activities, events or developments
that Gulfport expects or anticipates will or may occur in the
future, including such things as Gulfport's pending contribution of
all of its oil and gas interests in the Permian Basin to
Diamondback Energy discussed above, future capital expenditures
(including the amount and nature thereof), business strategy and
measures to implement strategy, competitive strength, goals,
expansion and growth of Gulfport's business and operations, plans,
market conditions, references to future success, reference to
intentions as to future matters and other such matters are
forward-looking statements. These statements are based on certain
assumptions and analyses made by Gulfport in light of its
experience and its perception of historical trends, current
conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances. However,
whether actual results and developments will conform with
Gulfport's expectations and predictions is subject to a number of
risks and uncertainties, general economic, market, credit or
business conditions; the opportunities (or lack thereof) that may
be presented to and pursued by Gulfport; competitive actions by
other oil and gas companies; changes in laws or regulations;
completion of Gulfport's pending contribution discussed above and
other factors, many of which are beyond the control of Gulfport.
Information concerning these and other factors can be found in the
Company's filings with the Securities and Exchange Commission,
including its Forms 10-K, 10-Q and 8-K. Consequently, all of the
forward-looking statements made in this news release are qualified
by these cautionary statements and there can be no assurances that
the actual results or developments anticipated by Gulfport will be
realized, or even if realized, that they will have the expected
consequences to or effects on Gulfport, its business or operations.
Gulfport has no intention, and disclaims any obligation, to update
or revise any forward-looking statements, whether as a result of
new information, future results or otherwise.
Non-GAAP Financial Measures
EBITDA is a non-GAAP financial measure equal to net income, the
most directly comparable GAAP financial measure, plus interest
expense, income tax expense, accretion expense and depreciation,
depletion and amortization. Cash flow from operating activities
before changes in operating assets and liabilities is a non-GAAP
financial measure equal to cash provided by operating activities
before changes in operating assets and liabilities. The Company has
presented EBITDA because it uses EBITDA as an integral part of its
internal reporting to measure its performance and to evaluate the
performance of its senior management. EBITDA is considered an
important indicator of the operational strength of the Company's
business. EBITDA eliminates the uneven effect of considerable
amounts of non-cash depletion, depreciation of tangible assets and
amortization of certain intangible assets. A limitation of this
measure, however, is that it does not reflect the periodic costs of
certain capitalized tangible and intangible assets used in
generating revenues in the Company's business. Management evaluates
the costs of such tangible and intangible assets and the impact of
related impairments through other financial measures, such as
capital expenditures, investment spending and return on capital.
Therefore, the Company believes that EBITDA provides useful
information to its investors regarding its performance and overall
results of operations. EBITDA and cash flow from operating
activities before changes in operating assets and liabilities are
not intended to be performance measures that should be regarded as
an alternative to, or more meaningful than, either net income as an
indicator of operating performance or to cash flows from operating
activities as a measure of liquidity. In addition, EBITDA and cash
flow from operating activities before changes in operating assets
and liabilities are not intended to represent funds available for
dividends, reinvestment or other discretionary uses, and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The EBITDA and cash
flow from operating activities before changes in operating assets
and liabilities presented in this press release may not be
comparable to similarly titled measures presented by other
companies, and may not be identical to corresponding measures used
in the Company's various agreements.
Oil Sands Reserves and Resource Notes:
(1) Proved reserves are defined in the Canadian Oil and Gas
Evaluation Handbook (the "COGE Handbook") as those reserves that
can be estimated with a high degree of certainty to be recoverable.
It is likely that the actual remaining quantities recovered will
exceed the estimated Proved reserves.
(2) Probable reserves are defined in the COGE Handbook as those
additional reserves that are less certain to be recovered than
proved reserves. It is equally likely that the actual remaining
quantities recovered will be greater or less than the sum of the
estimated proved plus probable reserves.
(3) Contingent Resources are defined in the COGE Handbook as
those quantities of petroleum estimated, as of a given date, to be
potentially recoverable from known accumulations using established
technology or technology under development, but which are not
currently considered to be commercially recoverable due to one or
more contingencies.
(4) Prospective Resources are defined in the COGE Handbook as
those quantities of petroleum estimated, as of a given date, to be
potentially recoverable from undiscovered accumulations by
application of future development projects.
(5) Best Estimate as defined in the COGE Handbook is
considered to be the best estimate of the quantity that will
actually be recovered from the accumulation. If probabilistic
methods are used, this term is a measure of central tendency of the
uncertainty distribution (P50).
(6) It should be noted that reserves, Contingent Resources and
Prospective Resources involve different risks associated with
achieving commerciality. There is no certainty that it will be
commercially viable for Grizzly to produce any portion of the
Contingent Resources. There is no certainty that any portion of
Grizzly's Prospective Resources will be discovered. If discovered,
there is no certainty that it will be commercially viable to
produce any portion of the Prospective Resources. Grizzly's
Prospective Resource estimates discussed in this press release have
been risked for the chance of discovery but not for the chance of
development and hence are considered by Grizzly as partially risked
estimates.
GULFPORT ENERGY
CORPORATION |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(Unaudited) |
|
|
Three
Months Ended March 31, |
|
2012 |
2011 |
Revenues: |
|
|
Oil and condensate sales |
$ 64,004,000 |
$ 45,196,000 |
Gas sales |
613,000 |
720,000 |
Natural gas liquids sales |
806,000 |
659,000 |
Other income (expense) |
38,000 |
63,000 |
|
|
|
|
65,461,000 |
46,638,000 |
|
|
|
Costs and expenses: |
|
|
Lease operating
expenses |
5,849,000 |
4,653,000 |
Production taxes |
7,769,000 |
5,507,000 |
Depreciation, depletion, and
amortization |
21,395,000 |
12,158,000 |
General and administrative |
3,009,000 |
2,056,000 |
Accretion expense |
176,000 |
159,000 |
|
|
|
|
38,198,000 |
24,533,000 |
|
|
|
INCOME FROM OPERATIONS: |
27,263,000 |
22,105,000 |
|
|
|
OTHER (INCOME) EXPENSE: |
|
|
Interest expense |
153,000 |
653,000 |
Interest income |
(27,000) |
(38,000) |
Loss from equity method
investments |
268,000 |
316,000 |
|
|
|
|
394,000 |
931,000 |
INCOME BEFORE INCOME TAXES |
26,869,000 |
21,174,000 |
|
|
|
INCOME TAX EXPENSE: |
-- |
-- |
|
|
|
|
|
|
NET INCOME |
$ 26,869,000 |
$ 21,174,000 |
|
|
|
NET INCOME PER COMMON
SHARE: |
|
|
|
|
|
Basic |
$ 0.48 |
$ 0.47 |
|
|
|
Diluted |
$ 0.48 |
$ 0.47 |
|
|
|
|
|
|
Basic weighted average shares
outstanding |
55,626,208 |
44,724,976 |
|
|
|
Diluted weighted average shares
outstanding |
56,247,609 |
45,125,019 |
|
GULFPORT ENERGY
CORPORATION |
RECONCILIATION OF
EBITDA AND CASH FLOW |
(Unaudited) |
|
|
|
|
Three Months
Ended |
|
March 31, 2012 |
March 31, 2011 |
|
|
|
Net Income |
$ 26,869,000 |
$ 21,174,000 |
Interest expense |
153,000 |
653,000 |
Income tax expense |
-- |
-- |
Accretion expense |
176,000 |
159,000 |
Depreciation, depletion, and
amortization |
21,395,000 |
12,158,000 |
EBITDA |
$ 48,593,000 |
$ 34,144,000 |
|
|
|
|
Three Months
Ended |
|
March 31, 2012 |
March 31, 2011 |
|
|
|
Cash provided by operating activities |
$ 69,429,000 |
$ 28,288,000 |
Adjustments: |
|
|
Changes in operating assets and
liabilities |
(19,662,000) |
5,670,000 |
Operating Cash Flow |
$ 49,767,000 |
$ 33,958,000 |
CONTACT: Investor & Media Contact:
Paul K. Heerwagen
Director, Investor Relations
pheerwagen@gulfportenergy.com
(405) 242-4888
Gulfport Energy (NASDAQ:GPOR)
Historical Stock Chart
From Apr 2024 to May 2024
Gulfport Energy (NASDAQ:GPOR)
Historical Stock Chart
From May 2023 to May 2024