Gulfport Energy Corporation announced first quarter 2023 results.
The table below summarizes Gulfport's operated drilling and completion activity for the first quarter of 2023:
Quarter Ended March 31, 2023 |
|||
Gross |
Net |
Lateral Length |
|
Spud |
|||
Utica |
6 |
5.3 |
14,500 |
SCOOP |
2 |
1.5 |
8,600 |
Drilled |
|||
Utica |
7 |
6.6 |
13,500 |
SCOOP |
1 |
0.7 |
8,700 |
Completed |
|||
Utica |
5 |
4.8 |
15,800 |
SCOOP |
- |
- |
- |
Turned-to-Sales |
|||
Utica |
- |
- |
- |
SCOOP |
- |
- |
- |
Gulfport's net daily production for the first quarter of 2023 averaged 1,057.4 MMcfe per day, primarily consisting of 738.5 MMcfe per day in the Utica and 318.9 MMcfe per day in the SCOOP. For the first quarter of 2023, Gulfport's net daily production mix was comprised of approximately 89% natural gas, 8% natural gas liquids ("NGL") and 3% oil and condensate.
Capital investment was $147.0 million (on an incurred basis) for the first quarter of 2023, of which $127.2 million related to drilling and completion ("D&C") activity and $19.8 million related to leasehold and land investment.
Gulfport's board of directors previously authorized the Company to repurchase up to $400 million of its outstanding shares of common stock. Purchases under the repurchase program may be made from time to time in open market or privately negotiated transactions, and will be subject to available liquidity, market conditions, credit agreement restrictions, applicable legal requirements, contractual obligations and other factors. The repurchase program does not require the Company to acquire any specific number of shares. The Company intends to purchase shares under the repurchase program opportunistically with available funds while maintaining sufficient liquidity to fund its capital development program. The repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors at any time.
As of April 26, 2023, the Company had repurchased 3.4 million shares of common stock at a weighted-average share price of $84.38 since the program initiated in March 2022, totaling approximately $288.1 million in aggregate.
Gulfport recently completed its spring borrowing base redetermination and on May 1, 2023, the Company entered into the 3rd amendment to its credit agreement (the "Amendment") governing the Company's revolving credit facility. The Amendment, among other things, increased the borrowing base under the credit facility from $1 billion to $1.1 billion, with aggregate elected lender commitments increasing from $700 million to $900 million. The Company added two additional financial institutions to the bank group, bringing the total financial institutions participating in the Company's revolving credit facility to 16. In addition, the Amendment extended the maturity of the credit facility by more than 18 months to May 1, 2027. The Amendment increases Gulfport's financial flexibility to continue to execute its business plan and return capital to shareholders.
Michael Hodges, Gulfport's CFO, commented: "We are pleased to announce the results of our successful spring borrowing base redetermination, which was driven by the underlying value of our high-quality resource base despite the current natural gas price environment. We greatly appreciate the support of our bank group as we position the Company to opportunistically deliver value to our stakeholders."
As of March 31, 2023, Gulfport had approximately $3.5 million of cash and cash equivalents, no outstanding borrowings under its revolving credit facility, $74.4 million of letters of credit outstanding and $550 million of outstanding 2026 senior notes.
Gulfport's liquidity at March 31, 2023, totaled approximately $629.1 million, comprised of the $3.5 million of cash and cash equivalents and approximately $625.6 million of available borrowing capacity under its revolving credit facility. Pro forma for the Amendment, Gulfport's liquidity at March 31, 2023 increases by approximately $200 million.
Gulfport enters into commodity derivative contracts on a portion of its expected future production volumes to mitigate the Company's exposure to commodity price fluctuations. For details, please refer to the "Derivatives" section provided with the supplemental financial tables available on our website at ir.gulfportenergy.com.