Tuesday, January 22, 2019

Gulfport Energy Provides 2018 Operational Update as Well as 2019 Capital Budget

From a Gulfport Energy press release (emphasis ours):
Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport” or the “Company”) today provided an update for the quarter and year ended December 31, 2018. Key information includes the following: 
  • Completed previously announced and expanded stock repurchase program of $200 million during 2018, including deploying $90 million during the fourth quarter of 2018, acquiring 20.7 million shares and reducing shares outstanding by over 10% in 2018.
  • Net production for the full year of 2018 averaged approximately 1,360.3 MMcfe per day.
  • Realized natural gas price for the full year of 2018, before the impact of derivatives and including transportation costs, averaged $2.53 per Mcf, a $0.55 per Mcf differential to the average trade month NYMEX settled price.
  • Realized oil price for the full year of 2018, before the impact of derivatives and including transportation costs, averaged $63.48 per barrel, a $1.30 per barrel differential to the average WTI oil price.
  • Realized natural gas liquids price for the full year of 2018, before the impact of derivatives and including transportation costs, averaged $0.71 per gallon, equivalent to $29.85 per barrel, or approximately 46% of the average WTI oil price.
  • Capital expenditures for the full year of 2018 are estimated to total approximately $813.9 million.
  • Gulfport drilled 23 gross (19.5 net) operated wells in the Utica Shale and 13 gross (12.1 net) operated wells in the SCOOP.
  • Gulfport turned-to-sales 35 gross and net operated wells in the Utica Shale and 15 gross (12.6 net) operated wells in the SCOOP during 2018.
Read that whole release by clicking here.

And then, from a separate press release:
For 2019, Gulfport estimates its total capital expenditures will be approximately $565 million to $600 million, which will be funded entirely within cash flow at current strip pricing. The 2019 budget includes approximately $525 million to $550 million for drilling and completion (“D&C”) activities and approximately $40 million to $50 million for land activities. With this level of capital spend, Gulfport forecasts its 2019 average daily net production will be in the range of 1,360 MMcfe to 1,400 MMcfe per day, consistent with the Company’s fourth quarter of 2018 average net production of 1,392.8 Bcfe per day. 
Utilizing current strip pricing at the various regional pricing points at which the Company sells its natural gas, Gulfport forecasts its realized natural gas price differential, before the effect of hedges and inclusive of the Company’s firm transportation expense, will average in the range of $0.49 to $0.66 per Mcf below NYMEX settlement prices in 2019. Gulfport expects its 2019 realized NGL price, before the effect of hedges and including transportation expense, will be approximately 45% to 50% of WTI and its 2019 realized oil price will be in the range of $3.00 to $3.50 per barrel below WTI.
And specifically about the Utica shale:
During 2019, Gulfport plans to run on average approximately 1.0 operated horizontal rig in the Utica Shale. Gulfport has budgeted to drill approximately 13 to 15 gross (10 to 11 net) horizontal Utica wells with an average lateral length of 11,700 feet. In addition, Gulfport plans to turn-to-sales 47 to 51 gross and (40 to 45 net) horizontal Utica wells with an average lateral length of 10,000 feet. 
Gulfport intends to participate in non-operated activities taking place on its acreage by other operators that plan to drill approximately 2 to 3 horizontal wells and turn-to-sales 2 to 3 horizontal wells, in each case net to Gulfport’s interest.
Read that whole release by clicking here. 

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