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Gulfport Energy First Quarter 2020 Results

Share Print Bookmark    |    Thursday,May 07,2020

Gulfport Energy Corp. reported its Q1 2020 results.

Key highlights are as follows:

• Reduced total long-term debt by approximately $79.6 million as of March 31, 2020 when compared to December 31, 2019 primarily through discounted bond repurchases
• Improved drilling efficiencies as measured by spud to total depth drilling days on a normalized basis in the Utica Shale and SCOOP by 11% and 32%, respectively, versus full year 2019 levels
• Reported net loss of $517.5 million, or $3.24 per diluted share
• Reported adjusted net income (non-GAAP) of $16.6 million, or $0.10 per diluted share
• Generated adjusted EBITDA (non-GAAP) of $128.3 million
• Reported cash provided by operating activities of $130.8 million
• Generated operating cash flow (non-GAAP), excluding working capital changes, of $86.7 million
• Improved 2020 and 2021 gas hedge portfolio with 495 BBtu per day of remaining 2020 natural gas production hedged at an average swap price of $2.88 per MMBtu and 250 BBtu per day of 2021 natural gas production hedged with costless collars at an average floor price of $2.46 per MMBtu and an average ceiling price of $2.81 per MMBtu
• Completed semi-annual borrowing base redetermination and revolving credit facility redetermined at $700 million, providing adequate liquidity to fund our 2020 capital plan at current strip pricing

Chief Executive Officer and President, David M. Wood, commented, "During these unprecedented times, our focus is on the health and safety of our employees while continuing to execute on our 2020 capital budget we laid out in February. We remain committed to exercising capital discipline, maximizing cash flow generation, reducing costs and ensuring strong liquidity through the remainder of 2020."

Mr. Wood continued, "Our continued focus on increasing efficiencies and reducing costs led to solid progress during the first quarter of 2020. As planned, Gulfport's 2020 capital program is heavily weighted to the first half of 2020 and as a result, we are well positioned to generate positive free cash flow during the second half of the year."

Continued Debt Reduction

As of May 1, 2020, the Company had repurchased $73.3 million aggregate principal amount of unsecured senior notes for $22.8 million in cash during 2020. Since initiating the debt repurchase program in mid-2019, Gulfport had repurchased $263.4 million aggregate principal amount of unsecured senior notes for $161.6 million cash representing a total discount capture of $101.8 million and an annual cash interest reduction of approximately $11 million.

Balance Sheet and Liquidity

Gulfport completed its spring borrowing base redetermination effective May 1, 2020 and the borrowing base was redetermined at $700 million. Pro forma for the revised borrowing base,
the Company's liquidity at May 1, 2020 totaled approximately $269.0 million, comprised of the $700 million borrowing base plus approximately $3.8 million in cash on hand less $326.8 million outstanding letters of credit and $108.0 million of revolver draw as of May 1, 2020.

The revised $700 million borrowing base provides adequate liquidity to finance the Company's projected 2020 capital plan.

Production and Realized Prices

Gulfport's net daily production for the first quarter of 2020 averaged approximately 1,054 MMcfe per day. For the first quarter of 2020, Gulfport's net daily production mix was comprised of approximately 90% natural gas, 7% natural gas liquids ("NGL") and 3% oil.