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OKLAHOMA CITY, May 08, 2017 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport” or the “Company”) today reported financial and operational results for the quarter ended March 31, 2017 and provided an update on its 2017 activities.  Key information for the first quarter of 2017 includes the following:

  • Net production averaged 849.6 MMcfe per day, an 8% increase over the fourth quarter of 2016 and a 23% increase versus the first quarter of 2016.
  • Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $2.68 per Mcf, a $0.63 per Mcf differential to the average trade month NYMEX settled price.
  • Realized oil price, before the impact of derivatives and including transportation costs, averaged $47.52 per barrel, a $4.34 per barrel differential to the average WTI oil price.
  • Realized natural gas liquids price, before the impact of derivatives and including transportation costs, averaged $26.46 per barrel, or $0.63 per gallon.
  • Net income of $154.5 million, or $0.91 per diluted share.
  • Adjusted net income (as defined and reconciled below) of $53.9 million, or $0.32 per diluted share.
  • Adjusted EBITDA (as defined and reconciled below) of $143.6 million.
  • Reduced unit lease operating expense for the first quarter of 2017 by 9% to $0.25 per Mcfe from $0.28 per Mcfe for the fourth quarter of 2016.
  • Closed acquisition of core SCOOP assets from Vitruvian II Woodford, LLC ("Vitruvian") on February 17, 2017.
  • Increasing expected realized oil price and now estimate that the Company's 2017 realized oil price will be in the range of $3.75 to $4.75 per barrel below WTI.
  • Increasing expected realized natural gas liquids price and now estimate that the Company's  2017 realized natural gas liquids price will be approximately 45% of WTI.
  • Recent two-well wet gas pad in southern Grady County, OK turned-to-sales with the Vinson 2-22X27H averaging a 24-hour initial production rate of 14.6 MMcf per day and 57 barrels of oil per day and the Vinson 3R-22X27H averaging a 24-hour initial production rate of 16.9 MMcf per day and 48 barrels of oil per day.
  • Expect to spud both a Springer and Sycamore location in the SCOOP during the summer of 2017.

Chief Executive Officer and President, Michael G. Moore commented, "The first quarter was an eventful quarter for Gulfport, experiencing yet another solid quarter operationally, driven by our assets in the Utica Shale and closing of the acquisition of the SCOOP assets from Vitruvian, which provides Gulfport sizeable core positions in two of North America’s lowest cost natural gas basins. Subsequent to the quarter, we completed and turned-to-sales two gross SCOOP wells located in the wet gas window in Southern Grady County, marking Gulfport’s first completions in the play. We have witnessed several key indicators during the flowback of the wells that indicate these wells to be top performers relative to their offsets, outperforming the average of direct offset producers by approximately 30% and outperforming our current SCOOP wet gas type curve by as much as 35%. Bear in mind, we are still early in the flowback process and would expect these wells to continue to clean up and potentially improve further beyond the rates provided today. We are extremely pleased with the results from these new wells and would expect both of the wells to rank among the top wells completed in the play to date."

Financial Results 
For the first quarter of 2017, Gulfport reported net income of $154.5 million, or $0.91 per diluted share, on revenues of $333.0 million.  For the first quarter of 2017, EBITDA (as defined and reconciled below) was $244.2 million and cash flow from operating activities before changes in operating assets and liabilities (as defined and reconciled below) was $121.7 million.  Gulfport’s GAAP net income for the first quarter of 2017 includes the following items: 

  • Aggregate non-cash derivative gain of $106.8 million.
  • Aggregate expense of $1.3 million in connection with the acquisition of oil and natural gas assets from Vitruvian.
  • Aggregate loss of $4.9 million in connection with Gulfport's equity interests in certain equity investments.

Excluding the effect of these items, Gulfport’s financial results for the first quarter of 2017 would have been as follows:

  • Adjusted oil and gas revenues of $226.2 million.
  • Adjusted net income of $53.9 million, or $0.32 per diluted share.
  • Adjusted EBITDA of $143.6 million.

Production and Realized Prices 
Gulfport’s net daily production for the first quarter of 2017 averaged approximately 849.6 MMcfe per day. For the first quarter of 2017, Gulfport’s net daily production mix was comprised of approximately 87% natural gas, 9% natural gas liquids ("NGL") and 4% oil.

Gulfport’s realized prices for the first quarter of 2017 were $2.57 per Mcf of natural gas, $47.68 per barrel of oil and $0.63 per gallon of NGL, resulting in a total equivalent price of $2.96 per Mcfe. Gulfport's realized prices for the first quarter of 2017 include an aggregate cash-settled derivative loss of $7.2 million. Before the impact of derivatives, realized prices for the first quarter of 2017, including transportation costs, were $2.68 per Mcf of natural gas, $47.52 per barrel of oil and $0.63 per gallon of NGL, for a total equivalent price of $3.05 per Mcfe.

 
GULFPORT ENERGY CORPORATION
PRODUCTION SCHEDULE
(Unaudited)
  Three months ended
  March 31,
Production Volumes: 2017   2016
       
Natural gas (MMcf) 66,284     53,307  
Oil (MBbls) 514     602  
NGL (MGal) 49,667     42,527  
Gas equivalent (MMcfe) 76,461     62,993  
Gas equivalent (Mcfe per day) 849,569     692,230  
       
Average Realized Prices:      
(before the impact of derivatives):      
       
Natural gas (per Mcf) $ 2.68     $ 1.39  
Oil (per Bbl) $ 47.52     $ 26.32  
NGL (per Gal) $ 0.63     $ 0.22  
Gas equivalent (per Mcfe) $ 3.05     $ 1.58  
       
Average Realized Prices:      
(including cash-settlement of derivatives and excluding non-cash derivative gain or loss):
       
Natural gas (per Mcf) $ 2.57     $ 2.49  
Oil (per Bbl) $ 47.68     $ 36.86  
NGL (per Gal) $ 0.63     $ 0.23  
Gas equivalent (per Mcfe) $ 2.96     $ 2.61  
               

The table below summarizes Gulfport’s first quarter of 2017 production by asset area:

 
GULFPORT ENERGY CORPORATION
PRODUCTION BY AREA
(Unaudited)
 
  Three months ended
  March 31,
  2017
Utica Shale  
Natural gas (MMcf) 61,152  
Oil (MBbls) 132  
NGL (MGal) 39,311  
Gas equivalent (MMcfe) 67,559  
   
SCOOP(1)  
Natural gas (MMcf) 5,115  
Oil (MBbls) 135  
NGL (MGal) 10,322  
Gas equivalent (MMcfe) 7,398  
   
Southern Louisiana  
Natural gas (MMcf) 8  
Oil (MBbls) 235  
NGL (MGal)  
Gas equivalent (MMcfe) 1,416  
   
Other  
Natural gas (MMcf) 9  
Oil (MBbls) 12  
NGL (MGal) 35  
Gas equivalent (MMcfe) 88  
   
(1) SCOOP production included from closing date of February 17, 2017.
 

2017 Financial Position and Liquidity
For the three-month period ended March 31, 2017, Gulfport’s drilling and completion capital expenditures totaled $238.1 million, midstream capital expenditures totaled $10.0 million and leasehold capital expenditures totaled $12.1 million. Mr. Moore commented, "Gulfport began to increase completions during the second half of the first quarter, as planned in our budget provided in February, completing 637 stages during the quarter and setting up for an active turn-in-line schedule for the second quarter of 2017."

Gulfport recently completed its spring redetermination under its revolving credit facility which resulted in its borrowing base increasing from $700 million to $1 billion, effective May 4, 2017. In connection with this process, Gulfport is pleased to announce that JP Morgan, Commonwealth Bank of Australia, ABN Amro, Fifth Third and CIBC have joined as part of the Company's expanded lender group.

As of March 31, 2017, Gulfport had cash on hand of approximately $102.5 million. As of March 31, 2017, $40.0 million was outstanding under Gulfport’s revolving credit facility and $421.3 million was available for borrowing after giving effect to outstanding letters of credit totaling $238.7 million. Pro forma for the recent increase in the Company's borrowing base from $700 million to $1 billion, Gulfport would have had $721.3 million of available borrowing capacity after giving effect to outstanding letters of credit.

Operational Update

The table below summarizes Gulfport's first quarter of 2017 activity and the number of net wells expected to be drilled and turned-to-sales for the remainder of 2017:

 
GULFPORT ENERGY CORPORATION
ACTIVITY SUMMARY
(Unaudited)
       
  Three months ended    
  March 31, Remaining Wells   Guidance (1)
  2017 2017   2017
Net Wells Drilled      
Utica - Operated 23.5   47.0     70.5  
Utica - Non-Operated 2.0   8.5     10.5  
Total 25.5   55.5     81.0  
       
SCOOP - Operated 4.2   12.8     17.0  
SCOOP - Non-Operated 0.5   1.0     1.5  
Total 4.7   13.8     18.5  
       
Net Wells Turned-to-Sales      
Utica - Operated 4.7   59.3     64.0  
Utica - Non-Operated 0.6   8.9     9.5  
Total 5.3   68.2     73.5  
       
SCOOP - Operated   15.0     15.0  
SCOOP - Non-Operated 0.2   1.3     1.5  
Total 0.2   16.3     16.5  
       
(1) Utilizes mid-point of publicly provided 2017 guidance
 

Utica Shale
In the Utica Shale, during the first quarter of 2017, Gulfport spud 26 gross (23.5 net) wells. The wells drilled during the first quarter of 2017 had an average lateral length of approximately 8,145 feet and average drilling days from spud to rig release of approximately 20.9 days. In addition, Gulfport turned-to-sales five gross (4.7 net) operated wells with an average lateral length of approximately 9,341 feet and average of approximately 4.7 stages completed per day.  For the three-month period ended March 31, 2017, Gulfport's well costs averaged approximately $1,090 per foot of lateral in the Utica Shale.

During the first quarter of 2017, net production from Gulfport’s Utica acreage averaged approximately 750.7 MMcfe per day, a decrease of 2% over the fourth quarter of 2016 and an increase of 12% over the first quarter of 2016.

At present, Gulfport has six operated horizontal rigs drilling in the play.

SCOOP
In the SCOOP, during the first quarter of 2017, five gross (4.2 net) wells were spud on the acreage. The wells drilled during the first quarter of 2017 had an average lateral length of 7,856 and average drilling days from spud to rig release of approximately 62.4 days. During the period February 17, 2017 (the date Gulfport completed its acquisition of the acreage) through March 31, 2017, net production from the acreage averaged approximately 172.0 MMcfe per day.

Subsequent to the first quarter of 2017, Gulfport turned-to-sales two gross (1.2 net) wells located in the wet gas window in southern Grady County. The Vinson 2-22X27H has a lateral length of 8,539 feet and a 24-hour initial production rate of 14.6 MMcf per day and 57 barrels of oil per day. The Vinson 3R-22X27H has a lateral length of 8,475 feet and a 24-hour initial production rate of 16.9 MMcf per day and 48 barrels of oil per day.

In addition to approximately 46,400 net Woodford reservoir acres, Gulfport holds approximately 38,600 net Springer reservoir acres and approximately 40,000 net Sycamore reservoir acres.  Gulfport plans to spud both a Springer and Sycamore location on the acreage during the summer of 2017.

At present, Gulfport has four operated horizontal rigs drilling in the play.

Southern Louisiana
At its West Cote Blanche Bay and Hackberry fields, during the first quarter of 2017, Gulfport spud three wells and performed 39 recompletions at the fields. Net production during the first quarter of 2017 totaled approximately 15.7 MMcfe per day. 

2017 Capital Budget and Production Guidance 
Gulfport reaffirms its 2017 capital budget and production guidance. 

Gulfport increases its expected realized NGL price and realized oil price. Gulfport now expects that its 2017 realized NGL price, before the effect of hedges and including transportation expense, will be approximately 45% of WTI and its 2017 realized oil price will be in the range of $3.75 to $4.75 per barrel below WTI.

The table below summarizes the Company’s full year 2017 guidance:

 
GULFPORT ENERGY CORPORATION
COMPANY GUIDANCE
       
  Year Ending
  2017
  Low   High
Forecasted Production      
Average Daily Gas Equivalent (MMcfepd) 1,045     1,100  
% Gas ~88%
% Natural Gas Liquids ~8%
% Oil ~4%
       
Forecasted Realizations (before the effects of hedges) (1)      
Natural Gas (Differential to NYMEX Settled Price) - $/Mcf $ (0.56 )   $ (0.62 )
NGL (% of WTI) ~45%
Oil (Differential to NYMEX WTI) $/Bbl $ (3.75 )   $ (4.75 )
       
Projected Operating Costs      
Lease Operating Expense - $/Mcfe $ 0.18     $ 0.23  
Production Taxes - $/Mcfe $ 0.08     $ 0.09  
Midstream Gathering and Processing - $/Mcfe $ 0.55     $ 0.62  
General and Administrative - $/Mcfe $ 0.15     $ 0.17  
       
Depreciation, Depletion and Amortization - $/Mcfe $ 0.95     $ 1.05  
       
  Total
Budgeted D&C Expenditures - In Millions:      
Operated $ 720     $ 780  
Non-Operated $ 125     $ 135  
Total Budgeted E&P Capital Expenditures $ 845     $ 915  
       
Budgeted Midstream Expenditures - In Millions: $ 50     $ 60  
       
Budgeted Leasehold Expenditures - In Millions: $ 110     $ 120  
       
Total Capital Expenditures - In Millions: $ 1,005     $ 1,095  
       
Net Wells Drilled      
Utica - Operated 67     74  
Utica - Non-Operated 10     11  
Total 77     85  
       
SCOOP - Operated 16     18  
SCOOP - Non-Operated 1     2  
Total 17     20  
       
Net Wells Turned-to-Sales      
Utica - Operated 61     67  
Utica - Non-Operated 9     10  
Total 70     77  
       
SCOOP - Operated 14     16  
SCOOP - Non-Operated 1     2  
Total 15     18  
           

Derivatives 
Gulfport has hedged a portion of its expected production to lock in prices and returns that provide certainty of cash flow to execute on its capital plans. The table below sets forth the Company's hedging positions as of May 8, 2017.

 
GULFPORT ENERGY CORPORATION
COMMODITY DERIVATIVES - HEDGE POSITION
(Unaudited)
           
  2Q2017   3Q2017   4Q2017
Natural gas:          
Swap contracts (NYMEX)          
Volume (BBtupd) 527     568     635  
Price ($ per MMBtu) $ 3.22     $ 3.17     $ 3.17  
           
Swaption contracts (NYMEX)          
Volume (BBtupd) 65     65     65  
Price ($ per MMBtu) $ 3.11     $ 3.11     $ 3.11  
           
Basis Swap Contract  (Tetco M2)          
Volume (BBtupd)          
Differential ($ per MMBtu) $     $      
           
Basis Swap Contract  (NGPL MC)          
Volume (BBtupd) 50     50     50  
Differential ($ per MMBtu) $ (0.26 )   $ (0.26 )   $ (0.26 )
           
Oil:          
Swap contracts (LLS)          
Volume (Bblpd) 2,000     1,500     1,500  
Price ($ per Bbl) $ 51.10     $ 53.12     $ 53.12  
           
Swap contracts (WTI)          
Volume (Bblpd) 3,330     4,500     4,500  
Price ($ per Bbl) $ 55.18     $ 54.89     $ 54.89  
           
NGL:          
C3 Propane Swap Contracts          
Volume (Bblpd) 3,000     3,000     3,000  
Price ($ per Gal) $ 0.63     $ 0.63     $ 0.63  
           
C5+ Swap Contracts          
Volume (Bblpd) 250     250     250  
Price ($ per Gal) $ 1.17     $ 1.17     $ 1.17  
           
           
  2017   2018   2019
Natural gas:          
Swap contracts (NYMEX)          
Volume (BBtupd) 555     609     20  
Price ($ per MMBtu) $ 3.18     $ 3.09     $ 3.14  
           
Swaption contracts (NYMEX)          
Volume (BBtupd) 60     80     5  
Price ($ per MMBtu) $ 3.12     $ 3.29     $ 3.16  
           
Basis Swap Contract  (Tetco M2)          
Volume (BBtupd) 12          
Differential ($ per MMBtu) $ (0.59 )        
           
Basis Swap Contract  (NGPL MC)          
Volume (BBtupd) 38     12      
Differential ($ per MMBtu) $ (0.26 )   $ (0.26 )   $  
           
Oil:          
Swap contracts (LLS)          
Volume (Bblpd) 1,748          
Price ($ per Bbl) $ 51.97     $     $  
           
Swap contracts (WTI)          
Volume (Bblpd) 3,353     899      
Price ($ per Bbl) $ 54.98     $ 55.31     $  
           
NGL:          
C3 Propane Swap Contracts          
Volume (Bblpd) 2,545          
Price ($ per Gal) $ 0.64     $     $  
           
C5+ Swap Contracts          
Volume (Bblpd) 250          
Price ($ per Gal) $ 1.17          
                   

Presentation
An updated presentation has been posted to the Company’s website. The presentation can be found at www.gulfportenergy.com under the “Company Information” 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 hold a conference call on Tuesday, May 9, 2017 at 8:00 a.m. CDT to discuss its first quarter of 2017 financial and operational results and to provide an update on the Company’s recent activities.

Interested parties may listen to the call via Gulfport’s website at www.gulfportenergy.com or by calling toll-free at 866-373-3408 or 412-902-1039 for international callers.  A replay of the call will be available for two weeks at 877-660-6853 or 201-612-7415 for international callers.  The replay passcode is 13622396.  The webcast will also be available for two weeks on the Company’s website and can be accessed on the Company’s “Investor Relations” page.

About Gulfport
Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America and is one of the largest producers of natural gas in the contiguous United States. Headquartered in Oklahoma City, Gulfport holds significant acreage positions in the Utica Shale of Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. In addition, Gulfport holds an acreage position along the Louisiana Gulf Coast, a position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC and has an approximately 24% equity interest in Mammoth Energy Services, Inc. (NASDAQ:TUSK). For more information, please visit www.gulfportenergy.com.

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, 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; Gulfport’s ability to identify, complete and integrate acquisitions of properties  (including the properties recently acquired from Vitruvian) and businesses; competitive actions by other oil and gas companies; changes in laws or regulations; 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 (loss), the most directly comparable GAAP financial measure, plus interest expense, income tax (benefit) expense, accretion expense, depreciation, depletion and amortization and impairment of oil and gas properties. Adjusted EBITDA is a non-GAAP financial measure equal to EBITDA less non-cash derivative (gain) loss, acquisition expense, impairment of Grizzly equity investment and (income) loss from equity method investments. Cash flow from operating activities before changes in operating assets and liabilities is a non-GAAP financial measure equal to cash provided by operating activity before changes in operating assets and liabilities. Adjusted net income is a non-GAAP financial measure equal to pre-tax net loss less non-cash derivative (gain) loss, impairment of oil and gas properties, acquisition expense, impairment of Grizzly equity investment and (income) loss from equity method investments plus tax benefit excluding adjustments. The Company has presented EBITDA and adjusted EBITDA because it uses these measures as an integral part of its internal reporting to evaluate its performance and the performance of its senior management. These measures are considered important indicators of the operational strength of the Company's business and eliminate the uneven effect of considerable amounts of non-cash depletion, depreciation of tangible assets and amortization of certain intangible assets. A limitation of these measures, however, is that they do 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 these measures provide useful information to its investors regarding its performance and overall results of operations. EBITDA, adjusted EBITDA, adjusted net income 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, adjusted EBITDA, adjusted net income 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, adjusted EBITDA, adjusted net income 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.

 
GULFPORT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
  Three months ended March 31,
  2017   2016
               
  (In thousands, except share data)
Revenues:      
Gas sales $ 177,837     $ 74,094  
Oil and condensate sales 24,411     15,839  
Natural gas liquid sales 31,179     9,293  
Net gain on gas, oil and NGL derivatives 99,577     57,735  
  333,004     156,961  
Costs and expenses:      
Lease operating expenses 19,303     16,657  
Production taxes 3,906     3,111  
Midstream gathering and processing 47,941     37,652  
Depreciation, depletion and amortization 65,991     65,477  
Impairment of oil and gas properties     218,991  
General and administrative 12,600     10,620  
Accretion expense 282     247  
Acquisition expense 1,298      
  151,321     352,755  
INCOME (LOSS) FROM OPERATIONS 181,683     (195,794 )
OTHER (INCOME) EXPENSE:      
Interest expense 23,479     16,023  
Interest income (842 )   (94 )
Loss from equity method investments, net 4,907     30,737  
Other income (316 )   (2 )
  27,228     46,664  
INCOME (LOSS) BEFORE INCOME TAXES 154,455     (242,458 )
INCOME TAX BENEFIT     (191 )
NET INCOME (LOSS) $ 154,455     $ (242,267 )
NET INCOME (LOSS) PER COMMON SHARE:      
Basic $ 0.91     $ (2.17 )
Diluted $ 0.91     $ (2.17 )
Weighted average common shares outstanding—Basic 170,272,685     111,509,585  
Weighted average common shares outstanding—Diluted 170,488,519     111,509,585  


GULFPORT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
  March 31, 2017   December 31, 2016
                       
  (In thousands, except share data)
Assets      
Current assets:      
Cash and cash equivalents $ 102,485     $ 1,275,875  
Restricted cash     185,000  
Accounts receivable—oil and gas 158,154     136,761  
Accounts receivable—related parties 39     16  
Prepaid expenses and other current assets 16,005     7,639  
Short-term derivative instruments 18,925     3,488  
Total current assets 295,608     1,608,779  
Property and equipment:      
Oil and natural gas properties, full-cost accounting, $3,073,448 and $1,580,305 excluded from amortization in 2017 and 2016, respectively 8,146,321     6,071,920  
Other property and equipment 75,107     68,986  
Accumulated depletion, depreciation, amortization and impairment (3,855,629 )   (3,789,780 )
Property and equipment, net 4,365,799     2,351,126  
Other assets:      
Equity investments 251,370     243,920  
Long-term derivative instruments 23,515     5,696  
Deferred tax asset 4,692     4,692  
Other assets 12,945     8,932  
Total other assets 292,522     263,240  
Total assets $ 4,953,929     $ 4,223,145  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable and accrued liabilities $ 406,139     $ 265,124  
Asset retirement obligation—current 195     195  
Short-term derivative instruments 67,179     119,219  
Current maturities of long-term debt 452     276  
Total current liabilities 473,965     384,814  
Long-term derivative instrument 5,259     26,759  
Asset retirement obligation—long-term 41,142     34,081  
Long-term debt, net of current maturities 1,631,809     1,593,599  
Total liabilities 2,152,175     2,039,253  
Commitments and contingencies      
Preferred stock, $.01 par value; 5,000,000 authorized, 30,000 authorized as redeemable 12% cumulative preferred stock, Series A; 0 issued and outstanding      
Stockholders’ equity:      
Common stock - $.01 par value, 200,000,000 authorized, 182,835,801 issued and outstanding at March 31, 2017 and 158,829,816 at December 31, 2016 1,828     1,588  
Paid-in capital 4,408,236     3,946,442  
Accumulated other comprehensive loss (51,685 )   (53,058 )
Retained deficit (1,556,625 )   (1,711,080 )
Total stockholders’ equity 2,801,754     2,183,892  
Total liabilities and stockholders’ equity $ 4,953,929     $ 4,223,145  
               


GULFPORT ENERGY CORPORATION
RECONCILIATION OF EBITDA AND CASH FLOW
(Unaudited)
           
  Three months ended March 31,
    2017     2016
               
   (In thousands)
           
Net income (loss) $ 154,455     $ (242,267 )
Interest expense   23,479       16,023  
Income tax benefit         (191 )
Accretion expense   282       247  
Depreciation, depletion and amortization   65,991       65,477  
Impairment of oil and gas properties         218,991  
EBITDA $ 244,207     $ 58,280  
           
           
           
  Three months ended March 31,
    2017     2016
               
   (In thousands)
           
Cash provided by operating activity $ 142,645     $ 83,774  
Adjustments:              
Changes in operating assets and liabilities   (20,943 )     (548 )
Operating Cash Flow $ 121,702     $ 83,226  
               

 

GULFPORT ENERGY CORPORATION
RECONCILIATION OF ADJUSTED EBITDA
(Unaudited)
           
  Three months ended   Three Months Ended
  March 31, 2017   March 31, 2016
               
   (In thousands)
           
EBITDA $ 244,207     $ 58,280  
               
Adjustments:              
Non-cash derivative (gain) loss   (106,796 )     7,685  
Acquisition expense   1,298        
Impairment of Grizzly equity investment         23,069  
Loss from equity method investments   4,907       7,668  
               
               
Adjusted EBITDA $ 143,616     $ 96,702  
           

 

GULFPORT ENERGY CORPORATION
RECONCILIATION OF ADJUSTED NET INCOME
(Unaudited)
             
    Three months ended   Three Months Ended
    March 31, 2017   March 31, 2016
                 
     (In thousands, except share data)
             
Pre-tax net loss excluding adjustments   $ 154,455     $ (242,458 )
Adjustments:                
Non-cash derivative (gain) loss     (106,796 )     7,685  
Impairment of oil and gas properties           218,991  
Acquisition expense     1,298        
Impairment of Grizzly equity investment           23,069  
Loss from equity method investments     4,907       7,668  
Pre-tax net income excluding adjustments   $ 53,864     $ 14,955  
                 
Tax benefit excluding adjustments           (191 )
                 
Adjusted net income   $ 53,864     $ 15,146  
                 
Adjusted net income per common share:                
                 
Basic   $ 0.32     $ 0.14  
                 
Diluted   $ 0.32     $ 0.14  
             
Basic weighted average shares outstanding     170,272,685       111,509,585  
             
Diluted weighted average shares outstanding     170,488,519       111,509,585  

 

Investor & Media Contact:
Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-252-4550

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Schedules First Quarter 2017 Financial and Operational Results Conference Call http://ir.gulfportenergy.com/news/detail/1307/gulfport-energy-corporation-schedules-first-quarter-2017-financial-and-operational-results-conference-call Wed, 26 Apr 2017 07:00:00 -0400 http://ir.gulfportenergy.com/news/detail/1307/gulfport-energy-corporation-schedules-first-quarter-2017-financial-and-operational-results-conference-call

OKLAHOMA CITY, April 26, 2017 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport” or the “Company”) today scheduled its first quarter 2017 financial and operational results conference call.

Gulfport will hold a conference call on Tuesday, May 9, 2017 at 8:00 a.m. CDT to discuss its first quarter of 2017 financial and operational results and to provide an update on the Company’s recent activities. Gulfport's first quarter of 2017 earnings are scheduled to be released after the market close on Monday, May 8, 2017.    

Interested parties may listen to the call via Gulfport’s website at www.gulfportenergy.com or by calling toll-free at 866-373-3408 or 412-902-1039 for international callers.  A replay of the call will be available for two weeks at 877-660-6853 or 201-612-7415 for international callers.  The replay passcode is 13622396.  The webcast will also be available for two weeks on the Company’s website and can be accessed on the Company’s “Investor Relations” page. 

About Gulfport
Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America and is one of the largest producers of natural gas in the contiguous United States. Headquartered in Oklahoma City, Gulfport holds significant acreage positions in the Utica Shale of Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. In addition, Gulfport holds an acreage position along the Louisiana Gulf Coast, a position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC and has an approximately 24% equity interest in Mammoth Energy Services, Inc. (NASDAQ:TUSK). For more information, please visit www.gulfportenergy.com.

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, 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; Gulfport’s ability to identify, complete and integrate acquisitions of properties and businesses; competitive actions by other oil and gas companies; changes in laws or regulations; 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.

Investor & Media Contact:
Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-252-4550

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Provides First Quarter 2017 Production and Pricing Update http://ir.gulfportenergy.com/news/detail/1306/gulfport-energy-corporation-provides-first-quarter-2017-production-and-pricing-update Wed, 19 Apr 2017 07:00:00 -0400 http://ir.gulfportenergy.com/news/detail/1306/gulfport-energy-corporation-provides-first-quarter-2017-production-and-pricing-update

OKLAHOMA CITY, April 19, 2017 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport” or the “Company”) today provided an update for the quarter ended March 31, 2017. Key information includes the following:

  • Net production during the first quarter of 2017 averaged 849.6 MMcfe per day, an 8% increase over the fourth quarter of 2016 and a 23% increase versus the first quarter of 2016.
  • Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $2.68 per Mcf during the first quarter of 2017, a $0.63 per Mcf differential to the average trade month NYMEX settled price.
  • Realized oil price, before the impact of derivatives and including transportation costs, averaged $47.52 per barrel during the first quarter of 2017, a $4.34 per barrel differential to the average WTI oil price.
  • Realized natural gas liquids price, before the impact of derivatives and including transportation costs, averaged $0.63 per gallon, equivalent to $26.46 per barrel, during the first quarter of 2017, or approximately 51% of the average WTI oil price.

Chief Executive Officer and President, Michael G. Moore commented, “Gulfport’s first quarter results reflect the team’s continued focus on execution and our ability to further increase efficiencies in the field and deliver on results ahead of expectations. Our first quarter production of 849.6 million cubic feet per day came in above expectations, driven by the continued strong performance of our Utica Shale assets and the team’s ability to track ahead of expectations for the scheduled turn-in-lines during the quarter. In addition, during the quarter we commissioned field level compression in an affected gathering area in the Utica Shale and the initial results performed above expectations. We closed the acquisition of the SCOOP assets from Vitruvian II Woodford, LLC on February 17, 2017, and since the closing have been running four operated rigs on the acreage and began Gulfport’s first operated completions in the play. The frac design on these wells includes an enhanced completion when compared to historical practices for the area and we recently began flowback on this pad and look forward to providing initial production results in the coming weeks. On the realization front, we posted strong first quarter results, illustrating the benefits of our existing marketing portfolio in the Utica Shale. To further complement this and secure the movement of Gulfport’s anticipated SCOOP production, during the first quarter we executed a firm transportation commitment with Midship Pipeline Company, a wholly owned subsidiary of Cheniere Energy, on the Midship Project, securing foundation shipper status and providing our molecules delivery to premium end-markets beginning in early 2019. Our first quarter production and pricing results were very encouraging and we are excited as we look forward to the remainder of the year, as we integrate a new core asset into the portfolio, providing the investment community with a diversified, high-growth opportunity in two of North America’s lowest cost natural gas basins.”

First Quarter 2017 Production and Realized Prices
Gulfport’s net daily production for the first quarter of 2017 averaged approximately 849.6 MMcfe per day. For the first quarter of 2017, Gulfport’s net daily production mix was comprised of approximately 87% natural gas, 9% natural gas liquids and 4% oil.

Gulfport’s realized prices for the first quarter of 2017 were $3.98 per Mcf of natural gas, $68.75 per barrel of oil and $0.68 per gallon of NGL, resulting in a total equivalent price of $4.36 per Mcfe. Gulfport's realized prices for the first quarter of 2017 include an aggregate non-cash derivative gain of $106.8 million. Before the impact of derivatives, realized prices for the first quarter of 2017, including transportation costs, were $2.68 per Mcf of natural gas, $47.52 per barrel of oil and $0.63 per gallon of NGL, for a total equivalent price of $3.05 per Mcfe.

GULFPORT ENERGY CORPORATION  
PRODUCTION SCHEDULE  
(Unaudited)  
               
      Three Months Ended     
       March 31,     
Production Volumes:      2017    2016    
               
Natural gas (MMcf)         66,284       53,307    
Oil (MBbls)         514       602    
NGL (MGal)         49,667       42,527    
Gas equivalent (MMcfe)         76,461       62,993    
Gas equivalent (Mcfe per day)       849,569       692,230    
               
Average Realized Prices              
(before the impact of derivatives):              
               
Natural gas (per Mcf)     $   2.68   $   1.39    
Oil (per Bbl)     $   47.52   $   26.32    
NGL (per Gal)     $   0.63   $   0.22    
Gas equivalent (per Mcfe)     $   3.05   $   1.58    
               
Average Realized Prices:              
(including cash-settlement of derivatives and excluding non-cash derivative gain or loss):
               
Natural gas (per Mcf)     $   2.57   $   2.49    
Oil (per Bbl)     $   47.68   $   36.86    
NGL (per Gal)     $   0.63   $   0.23    
Gas equivalent (per Mcfe)     $   2.96   $   2.61    
               
Average Realized Prices:              
               
Natural gas (per Mcf)     $   3.98   $   2.46    
Oil (per Bbl)     $   68.75   $   28.45    
NGL (per Gal)     $   0.68   $   0.21    
Gas equivalent (per Mcfe)     $   4.36   $   2.49    
               

The table below summarizes Gulfport’s first quarter of 2017 production by asset area:

GULFPORT ENERGY CORPORATION
PRODUCTION BY AREA
(Unaudited)
         
      Three Months Ended   
       March 31,   
      2017  
Utica Shale         
Natural gas (MMcf)       61,152  
Oil (MBbls)       132  
NGL (MGal)       39,311  
Gas equivalent (MMcfe)       67,559  
         
SCOOP(1)        
Natural gas (MMcf)       5,115  
Oil (MBbls)       135  
NGL (MGal)       10,322  
Gas equivalent (MMcfe)       7,398  
         
Southern Louisiana        
Natural gas (MMcf)       8  
Oil (MBbls)       235  
NGL (MGal)       -   
Gas equivalent (MMcfe)       1,416  
         
Other        
Natural gas (MMcf)       9  
Oil (MBbls)       12  
NGL (MGal)       35  
Gas equivalent (MMcfe)       88  
         
(1) SCOOP production adjusted for closing date of February 17, 2017. 
         

About Gulfport
Gulfport Energy an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America and is one of the largest producers of natural gas in the contiguous United States. Headquartered in Oklahoma City, Gulfport holds significant acreage positions in the Utica Shale of Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. In addition, Gulfport holds an acreage position along the Louisiana Gulf Coast, a position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC and has an approximately 24% equity interest in Mammoth Energy Services, Inc. (NASDAQ:TUSK). For more information, please visit www.gulfportenergy.com.

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, 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; Gulfport’s ability to identify, complete and integrate acquisitions of properties and businesses; competitive actions by other oil and gas companies; changes in laws or regulations; 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.

Investor & Media Contact:
Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-252-4550

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Reports Fourth Quarter and Year-End 2016 Results http://ir.gulfportenergy.com/news/detail/1305/gulfport-energy-corporation-reports-fourth-quarter-and-year-end-2016-results Mon, 13 Feb 2017 16:00:00 -0500 http://ir.gulfportenergy.com/news/detail/1305/gulfport-energy-corporation-reports-fourth-quarter-and-year-end-2016-results

OKLAHOMA CITY, Feb. 13, 2017 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport” or the “Company”) today reported financial and operational results for the quarter and year ended December 31, 2016 and provided an update on its 2017 activities.  Key information includes the following:

  • Year-end 2016 total proved reserves grew to 2.3 Tcfe, as compared to 1.7 Tcfe at year-end 2015, an increase of 36% year-over-year.
  • Net production during 2016 averaged 719.8 MMcfe per day.
  • Net loss of $979.7 million, or $7.97 per diluted share, for 2016.
  • Adjusted net income (as defined and reconciled below) of $109.8 million, or $0.89 per diluted share, for 2016.
  • Adjusted EBITDA (as defined and reconciled below) of $418.8 million for 2016.
  • Reduced unit lease operating expense for 2016 by 25% to $0.26 per Mcfe from $0.35 per Mcfe for 2015.
  • Reduced unit midstream gathering and processing expense for 2016 by 9% to $0.63 per Mcfe from $0.69 per Mcfe for 2015.
  • Reduced unit production tax expense for 2016 by 32% to $0.05 per Mcfe from $0.07 per Mcfe for 2015.
  • Reduced unit general and administrative expense for 2016 by 21% to $0.16 per Mcfe from $0.21 per Mcfe for 2015.
  • Budgeted 2017 drilling and completion expenditures are $845 million to $915 million.
  • Budgeted 2017 total capital expenditures are $1.0 billion to $1.1 billion.
  • Forecasted 2017 full year net production is estimated to average 1,045 MMcfe to 1,100 MMcfe per day, an increase of approximately 45% to 53% over the average daily net production of 719.8 MMcfe per day during 2016.
  • Expected per unit operating cost for 2017, including lease operating expense, midstream gathering and processing expense and production tax expense, is estimated to be $0.81 to $0.94.
  • Due to increased efficiencies in 2016, Gulfport has decreased its total expected well costs for 2017 by approximately $750,000 per well, relative to the previously provided estimates.
  • Increased hedge position to approximately 555 MMcf per day of natural gas fixed price swaps for 2017 at an average fixed price of $3.18 per Mcf, securing approximately 60% of its anticipated natural gas production at a favorable average price.

Financial Results
For the fourth quarter of 2016, Gulfport reported a net loss of $240.4 million, or $1.86 per diluted share, on oil and natural gas revenues of  $63.4 million.  For the fourth quarter of 2016, EBITDA (as defined and reconciled below) was negative $44.4 million and cash flow from operating activities before changes in operating assets and liabilities was $86.1 million.  Gulfport’s GAAP net loss for the fourth quarter of 2016 includes the following items: 

  • Aggregate non-cash unrealized hedge loss of $139.3 million. 
  • Aggregate loss of $113.7 million in connection with the impairment of oil and gas properties.
  • Aggregate gain of $2.0 million attributable to net insurance proceeds in connection with a 2014 legacy environmental litigation settlement. 
  • Aggregate loss of $23.8 million associated with the debt extinguishment of Gulfport's senior notes due 2020.
  • Aggregate loss of $8.4 million in connection with Gulfport's equity interests in certain equity investments.
  • Associated adjusted taxable benefit of $0.6 million.

Excluding the effect of these items, Gulfport’s financial results for the fourth quarter of 2016 would have been as follows:

  • Adjusted oil and natural gas revenues of $202.7 million.
  • Adjusted net income of $44.3 million, or $0.34 per diluted share.
  • Adjusted EBITDA of $125.1 million.

For the full year of 2016, Gulfport reported a net loss of $979.7 million, or $7.97 per diluted share, on oil and natural gas revenues of $385.9 million.  For the full year of 2016, EBITDA was $43.4 million and cash flow from operating activities before changes in operating assets and liabilities was $366.9 million. Gulfport’s GAAP net loss for the full year of 2016 includes the following items: 

  • Aggregate non-cash unrealized hedge loss of $323.3 million. 
  • Aggregate loss of $715.5 million in connection with the impairment of oil and gas properties.
  • Aggregate gain of $5.7 million attributable to net insurance proceeds in connection with a 2014 legacy environmental litigation settlement. 
  • Aggregate loss of $23.1 million in connection with the impairment associated with Gulfport’s equity interest in Grizzly Oil Sands. 
  • Aggregate loss of $23.8 million associated with the debt extinguishment of Gulfport's senior notes due 2020.
  • Aggregate loss of $10.9 million in connection with Gulfport's equity interests in certain equity investments.
  • Associated adjusted taxable benefit of $1.6 million.

Excluding the effect of these items, Gulfport’s financial results for the full year of 2016 would have been  as follows:

  • Adjusted oil and natural gas revenues of $709.2 million.
  • Adjusted net income of $109.8 million, or $0.89 per diluted share.
  • Adjusted EBITDA of $418.8 million.

Production and Realized Prices
Gulfport’s net daily production for the fourth quarter of 2016 averaged approximately 787.0 MMcfe per day. For the fourth quarter of 2016, Gulfport’s net daily production mix was comprised of approximately 87% natural gas, 9% natural gas liquids and 4% oil. Gulfport’s net daily production for the full year of 2016 averaged approximately 719.8 MMcfe per day. For the full year of 2016, Gulfport’s net daily production mix was comprised of approximately 86% natural gas, 9% natural gas liquids and 5% oil.

Gulfport’s realized prices for the fourth quarter of 2016 were $0.41 per Mcf of natural gas, $32.41 per barrel of oil and $0.52 per gallon of NGL, resulting in a total equivalent price of $0.88 per Mcfe. Gulfport's realized prices for the fourth quarter of 2016 include an aggregate non-cash derivative loss of $139.3 million. Before the impact of derivatives, realized prices for the fourth quarter of 2016, including transportation costs, were $2.34 per Mcf of natural gas, $45.15 per barrel of oil and $0.56 per gallon of NGL, for a total equivalent price of $2.67 per Mcfe.

Gulfport’s realized prices for the full year of 2016 were $1.12 per Mcf of natural gas, $35.65 per barrel of oil and $0.35 per gallon of NGL, resulting in a total equivalent price of $1.46 per Mcfe.  Gulfport's realized prices for the full year of 2016 include an aggregate non-cash derivative loss of $323.3 million. Before the impact of derivatives, realized prices for the full year of 2016, including transportation costs, were $1.85 per Mcf of natural gas, $38.18 per barrel of oil and $0.37 per gallon of NGL, for a total equivalent price of $2.13 per Mcfe.

GULFPORT ENERGY CORPORATION
PRODUCTION SCHEDULE
(Unaudited)
 
  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
Production Volumes: 2016   2015   2016   2015
               
Natural gas (MMcf) 63,362     48,942     227,594     156,151  
Oil (MBbls) 451     675     2,126     2,899  
NGL (MGal) 44,345     43,700     161,562     185,792  
Gas equivalent (MMcfe) 72,404     59,233     263,430     200,089  
Gas equivalent (Mcfe per day) 786,998     643,832     719,753     548,188  
               
Average Realized Prices              
(before the impact of derivatives):              
               
Natural gas (per Mcf) $ 2.34     $ 1.62     $ 1.85     $ 2.08  
Oil (per Bbl) $ 45.15     $ 36.38     $ 38.18     $ 42.29  
NGL (per Gal) $ 0.56     $ 0.34     $ 0.37     $ 0.31  
Gas equivalent (per Mcfe) $ 2.67     $ 2.00     $ 2.13     $ 2.53  
               
Average Realized Prices:              
(including cash-settlement of derivatives and excluding non-cash derivative gain or loss):
               
Natural gas (per Mcf) $ 2.49     $ 2.48     $ 2.45     $ 2.79  
Oil (per Bbl) $ 45.37     $ 43.00     $ 43.29     $ 45.41  
NGL (per Gal) $ 0.55     $ 0.34     $ 0.36     $ 0.31  
Gas equivalent (per Mcfe) $ 2.80     $ 2.79     $ 2.69     $ 3.13  
               
Average Realized Prices:              
               
Natural gas (per Mcf) $ 0.41     $ 2.94     $ 1.12     $ 3.25  
Oil (per Bbl) $ 32.41     $ 44.63     $ 35.65     $ 48.91  
NGL (per Gal) $ 0.52     $ 0.37     $ 0.35     $ 0.32  
Gas equivalent (per Mcfe) $ 0.88     $ 3.21     $ 1.46     $ 3.54  
                               

2016 Financial Position and Liquidity
For the year ended December 31, 2016, Gulfport’s drilling and completion capital expenditures totaled $518.4 million, midstream capital expenditures totaled $11.0 million and leasehold capital expenditures (net of proceeds from leasehold sales and excluding the previously announced December 2016 acquisition in the Utica Shale) totaled $20.1 million.

As of December 31, 2016, Gulfport had cash on hand of approximately $1.3 billion. In addition, as of  December 31, 2016, Gulfport’s revolving credit facility of $700 million was undrawn and had $490.3 million available for future borrowing after giving effect to outstanding letters of credit totaling $209.7 million.

2017 Capital Budget and Production Guidance
For 2017, Gulfport estimates total capital expenditures will be in the range of $1.0 billion to $1.1 billion. The 2017 budget includes approximately $845 million to $915 million for drilling and completion activities, $50 million to $60 million for midstream capital expenditures associated with its investment in Strike Force Midstream LLC with Rice Energy and $110 million to $120 million for leasehold activities during 2017, excluding its pending acquisition of oil and natural gas assets from Vitruvian II Woodford, LLC ("Vitruvian") discussed below.

Gulfport currently estimates that 2017 average daily net production will be in the range of 1,045 MMcfe to 1,100 MMcfe per day, an increase of 45% to 53% over its 2016 average daily net production of 719.8 MMcfe per day. Total production for 2017 is expected to be approximately 88% natural gas, 8% natural gas liquids and 4% oil.

Gulfport expects that its realized natural gas price, utilizing current strip pricing and before the effect of hedges and inclusive of the Company’s firm transportation expense, will average in the range of $0.56 to $0.62 per Mcf below NYMEX settlement prices in 2017. Before the effect of hedges, the Company estimates that its 2017 realized NGL price will be approximately 35% of WTI and its 2017 realized oil price will be in the range of $4.50 to $5.50 per barrel below WTI.

The table below summarizes the Company’s full year 2017 guidance:

GULFPORT ENERGY CORPORATION
COMPANY GUIDANCE
 
    Year Ending
    12/31/17
    Low   High
Forecasted Production      
  Average Daily Gas Equivalent (MMcfepd)   1,045     1,100
  % Gas  ~ 88%
  % Natural Gas Liquids ~8%
  % Oil ~4%
         
Forecasted Realizations (before the effects of hedges)      
  Natural Gas (Differential to NYMEX Settled Price) - $/Mcf $ (0.56 )   $ (0.62
  NGL (% of WTI) ~35%
  Oil (Differential to NYMEX WTI) $/Bbl $ (4.50 )   $ (5.50 )
         
Projected Operating Costs      
  Lease Operating Expense - $/Mcfe $ 0.18   $ 0.23
  Production Taxes - $/Mcfe $ 0.08   $ 0.09
  Midstream Gathering and Processing - $/Mcfe $ 0.55   $ 0.62
  General and Administrative - $/Mcfe $ 0.15   $ 0.17
         
Depreciation, Depletion and Amortization - $/Mcfe $ 0.95   $ 1.05
         
    Total
Budgeted D&C Expenditures - In Millions:      
  Operated $ 720   $ 780
  Non-Operated $ 125   $ 135
  Total Budgeted D&C Capital Expenditures $ 845   $ 915
         
Budgeted Midstream Expenditures - In Millions: $ 50   $ 60
         
Budgeted Leasehold Expenditures - In Millions: $ 110   $ 120
         
Total Capital Expenditures - In Millions: $ 1,005   $ 1,095
         
Net Wells Drilled      
  Utica - Operated   67     74
  Utica - Non-Operated   10     11
  Total   77     85
         
  SCOOP - Operated   16     18
  SCOOP - Non-Operated   1     2
  Total   17     20
         
Net Wells Turned-to-Sales      
  Utica - Operated   61     67
  Utica - Non-Operated   9     10
  Total   70     77
         
  SCOOP - Operated   14     16
  SCOOP - Non-Operated   1     2
  Total   15     18
         

Operational Update and 2017 Outlook
Utica Shale
In the Utica Shale, Gulfport spud 19 gross (15.6 net) wells and turned-to-sales 11 gross and net wells during the fourth quarter of 2016. Net production during the fourth quarter of 2016 from Gulfport’s Utica acreage averaged approximately 768.0 MMcfe per day, an increase of 8% over the third quarter of 2016 and an increase of 23% over the fourth quarter of 2015. At present, Gulfport has six operated horizontal rigs drilling in the play.

Gulfport continues to realize operational efficiency gains in the Utica Shale and, during 2016, Gulfport spud 50 gross wells with an average lateral length of approximately 8,340 feet and average drilling days from spud to rig release of approximately 23.5 days. In addition, Gulfport turned-to-sales 54 gross wells with an average lateral length of approximately 8,329 feet and an average of approximately 6.9 stages completed per day. For the full year 2016, Gulfport's well costs averaged approximately $1,075 per foot of lateral in the Utica Shale.

During 2017, Gulfport plans to run six operated horizontal rigs. Gulfport has budgeted to drill approximately 87 to 97 gross (67 to 74 net) horizontal wells and turn-to-sales 72 to 80 gross (61 to 67 net) horizontal wells in the Utica. In addition, Gulfport plans to participate in non-operated activities taking place on its acreage by other operators that plan to drill approximately 10 to 11 horizontal wells and turn-to-sales 9 to 10 horizontal wells, in each case net to Gulfport’s interest. Due to increased efficiencies in 2016, Gulfport has decreased its total expected well costs for 2017 by approximately $750,000 per well, relative to the previously provided estimates, for a standard 8,000 foot lateral.

SCOOP
As previously announced, on December 13, 2016, Gulfport entered into a definitive agreement with Vitruvian to acquire approximately 46,400 net surface acres with multiple producing zones, including the Woodford and Springer formations, in Grady, Stephens and Garvin Counties, Oklahoma. The properties to be acquired in this transaction are located primarily in the over-pressured liquids-rich to dry gas windows of the play and include approximately 48 producing horizontal wells and an additional interest in over 150 non-operated horizontal wells. The acquisition is expected to close in February 2017, subject to the satisfaction of certain closing conditions.

During 2017, and following the closing of the acquisition, Gulfport plans to run four operated horizontal rigs on this SCOOP acreage. Gulfport has budgeted to drill approximately 19 to 21 gross (16 to 18 net) horizontal wells and turn-to-sales 17 to 19 gross (14 to 16 net) horizontal wells in the SCOOP. In addition, Gulfport plans to participate in non-operated activities taking place on this acreage by other operators that plan to drill approximately 1 to 2 horizontal wells and turn-to-sales 1 to 2 horizontal wells, in each case net to Gulfport’s interest.

Southern Louisiana
At its West Cote Blanche Bay and Hackberry fields, Gulfport performed 77 recompletions during 2016. During the fourth quarter of 2016, net production at these fields totaled approximately 17.9 MMcfe per day. 

During 2017, Gulfport plans to run one drilling rig and one recompletion rig in these fields.

Derivatives
Gulfport has hedged a portion of its expected production to lock in prices and returns that provide certainty of cash flow to execute on its capital plans. The table below sets forth the Company's hedging positions as of February 13, 2017.

GULFPORT ENERGY CORPORATION
COMMODITY DERIVATIVES - HEDGE POSITION
(Unaudited)
               
  1Q2017   2Q2017   3Q2017   4Q2017
Natural gas:              
Swap contracts (NYMEX)              
Volume (BBtupd)   487       527       568       635  
Price ($ per MMBtu) $ 3.16     $ 3.22     $ 3.17     $ 3.17  
               
Swaption contracts (NYMEX)              
Volume (BBtupd)   45       65       65       65  
Price ($ per MMBtu) $ 3.19   $ 3.11   $ 3.11   $ 3.11
               
Basis Swap Contract  (Tetco M2)              
Volume (BBtupd)   50                    
Differential ($ per MMBtu) $ (0.59 )   $     $     $  
               
Basis Swap Contract  (NGPL MC)              
Volume (BBtupd)         50       50       50  
Differential ($ per MMBtu)       $ (0.26 )   $ (0.26 )   $ (0.26 )
               
Oil:              
Swap contracts (LLS)              
Volume (Bblpd)   2,000       2,000       1,500       1,500  
Price ($ per Bbl) $ 51.10   $ 51.10   $ 53.12   $ 53.12
               
Swap contracts (WTI)              
Volume (Bblpd)   1,033       3,330       4,500       4,500  
Price ($ per Bbl) $ 55.15     $ 55.18       54.89       54.89  
               
NGL:              
C3 Propane Swap Contracts              
Volume (Bblpd)   1,156       3,000       3,000       3,000  
Price ($ per Gal) $ 0.66     $ 0.63     $ 0.63     $ 0.63  
               
C5+ Swap Contracts              
Volume (Bblpd)   250       250       250       250  
Price ($ per Gal) $ 1.17     $ 1.17     $ 1.17     $ 1.17  
               
               
    2017     2018     2019    
Natural gas:              
Swap contracts (NYMEX)              
Volume (BBtupd)   555       384       5      
Price ($ per MMBtu) $ 3.18     $ 3.12     $ 3.37      
               
Swaption contracts (NYMEX)              
Volume (BBtupd)   60       65            
Price ($ per MMBtu) $ 3.12     $ 3.33     $      
               
Basis Swap Contract  (Tetco M2)              
Volume (BBtupd)   12                  
Differential ($ per MMBtu) $ (0.59 )   $            
               
Basis Swap Contract  (NGPL MC)              
Volume (BBtupd)   38       12            
Differential ($ per MMBtu) $ (0.26 )   $ (0.26 )          
               
Oil:              
Swap contracts (LLS)              
Volume (Bblpd)   1,748                  
Price ($ per Bbl) $ 51.97                  
               
Swap contracts (WTI)              
Volume (Bblpd)   3,353       899            
Price ($ per Bbl) $ 54.98       55.31            
               
NGL:              
C3 Propane Swap Contracts              
Volume (Bblpd)   2,545                  
Price ($ per Gal) $ 0.64                  
               
C5+ Swap Contracts              
Volume (Bblpd)   250                  
Price ($ per Gal) $ 1.17                  
                           

Year-End 2016 Reserves
Gulfport reported year-end 2016 total proved reserves of 2.3 Tcfe, consisting of 2.2 Tcf of natural gas, 5.5 MMBbls of oil and 20.1 MMBbls of natural gas liquids.  Gulfport's year-end total proved reserves increased 36% over year-end 2015. The table below provides information regarding the components driving the 2016 net proved reserve increase:

GULFPORT ENERGY CORPORATION
DECEMBER 31, 2016 NET PROVED RESERVE RECONCILIATION
(Unaudited)
     
    Gas Equivalent
    BCFE
     
Proved Reserve balance at December 31, 2015   1,705.3  
Purchases in oil and gas reserves in place    
Extensions and discoveries   1,135.6  
Revisions of prior reserve estimates:    
Reclassification of PUD to unproved under SEC 5-year rule and price revisions   (245.3 )
Performance revisions   (11.1 )
Current production   (263.4 )
     
Proved Reserve balance at December 31, 2016   2,321.1  
       

Proved developed reserves increased by 12% over 2015 to approximately 859.9 Bcfe as of December 31, 2016. At year-end 2016, approximately 37% of Gulfport’s proved reserves were classified as proved developed reserves. Proved undeveloped reserves increased by 56% from December 31, 2015 to approximately 1,461.2 Bcfe as of December 31, 2016.  The table below summarize the Company’s 2016 net proved reserves:

GULFPORT ENERGY CORPORATION
DECEMBER 31, 2016 NET PROVED RESERVES
(Unaudited)
               
  Natural Gas   Oil   Natural Gas
Liquids
  Gas
Equivalent
  BCF   MMBBL   MMBBL   BCFE
               
Proved Developed Producing 678.3     3.8     13.5     781.8  
Proved Developed Non-Producing 66.5     1.1     0.8     78.1  
Proved Undeveloped 1,422.3     0.6     5.8     1,461.2  
               
Total Proved Reserves 2,167.1     5.5     20.1     2,321.1  
                       

The following table presents Gulfport’s 2016 net proved reserves by major operating areas:

GULFPORT ENERGY CORPORATION  
DECEMBER 31, 2016 NET PROVED RESERVES BY ASSET AREA
(Unaudited)  
       
    2016  
    BCFE  
       
Utica   2,303.3    
Southern Louisiana   15.9    
Other   1.9    
       
Total Proved Reserves   2,321.1    
       

In accordance with Securities and Exchange Commission guidelines, at year-end 2016, reserve calculations were based on the average first day of the month price for the prior 12 months.  The prices utilized for Gulfport’s year-end 2016 reserve report were $42.75 per barrel of oil and $2.48 per MMBtu of natural gas, in each case as adjusted by lease for transportation fees and regional price differentials.  Utilizing these prices, the present value of Gulfport’s total proved reserves discounted at 10% (referred to as “PV-10”) was $696 million at December 31, 2016. PV-10 is a non-GAAP measure because it excludes income tax effects. Management believes that the presentation of the non-GAAP financial measure of PV-10 provides useful information to investors because it is widely used by professional analysts and sophisticated investors in evaluating oil and gas companies. PV-10 is not a measure of financial or operating performance under GAAP. PV-10 should not be considered as an alternative to the standardized measure as defined under GAAP. We have included a reconciliation of PV-10 of proved reserves to the standardized measure of discounted future net cash flows, the most directly comparable GAAP measure.

GULFPORT ENERGY CORPORATION
DECEMBER 31, 2016 PV-10
(Unaudited)
       
    SEC Case  
    ($MM)  
       
Proved Developed Producing   501    
Proved Developed Non-Producing   72    
Proved Undeveloped   123    
       
Total Proved Reserves   $ 696    
           

The following table reconciles the standardized measure of future net cash flows to the PV-10 value of Gulfport’s proved reserves:

GULFPORT ENERGY CORPORATION  
DECEMBER 31, 2016 PV-10 RECONCILIATION  
(Unaudited)  
         
    SEC Case    
    ($MM)    
         
Standardized measure of discounted future net cash flows (1)   $ 688      
Add: Present value of future income tax discounted at 10%   8      
         
PV-10 value   $ 696      
             
¹ The standardized measure represents the present value of estimated future cash inflows from proved oil and natural gas reserves, less future development, abandonment, production, and income tax expenses, discounted at 10% per annum to reflect timing of  future cash flows and using the same pricing assumptions as were used to calculate PV-10. Standardized measure differs from PV-10 because standardized measure includes the effect of future income taxes.    
     

Presentation
An updated presentation has been posted to the Company’s website. The presentation can be found at www.gulfportenergy.com under the “Company Information” 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 hold a conference call on Tuesday, February 14, 2017 at 8:00 a.m. CST to discuss its fourth quarter and full year of 2016 financial and operational results and to provide an update on the Company’s recent activities.

Interested parties may listen to the call via Gulfport’s website at www.gulfportenergy.com or by calling toll-free at 866-373-3408 or 412-902-1039 for international callers.  A replay of the call will be available for two weeks at 877-660-6853 or 201-612-7415 for international callers.  The replay passcode is 13622396.  The webcast will also be available for two weeks 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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.

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 but not limited to the pending acquisition from Vitruvian, 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; Gulfport’s ability to identify, complete and integrate acquisitions of properties and businesses; competitive actions by other oil and gas companies; changes in laws or regulations; 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 (loss) income, the most directly comparable GAAP financial measure, plus interest expense, income tax (benefit) expense, accretion expense, depreciation, depletion and amortization and impairment of oil and gas properties. Adjusted EBITDA is a non-GAAP financial measure equal to EBITDA less non-cash derivative loss, gain from insurance proceeds, loss from impairment of Grizzly equity investment, loss on debt extinguishment and loss from equity method investments. Cash flow from operating activities before changes in operating assets and liabilities is a non-GAAP financial measure equal to cash provided by operating activity before changes in operating assets and liabilities. Adjusted net income is a non-GAAP financial measure equal to pre-tax net loss less non-cash derivative loss, loss from impairment of oil and gas properties, gain from insurance proceeds, impairment of Grizzly equity investment, loss on debt extinguishment and loss from equity method investments. The Company has presented EBITDA and adjusted EBITDA because it uses these measures as an integral part of its internal reporting to evaluate its performance and the performance of its senior management. These measures are considered important indicators of the operational strength of the Company's business and eliminate the uneven effect of considerable amounts of non-cash depletion, depreciation of tangible assets and amortization of certain intangible assets. A limitation of these measures, however, is that they do 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 these measures provide useful information to its investors regarding its performance and overall results of operations. EBITDA, adjusted EBITDA, adjusted net income 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, adjusted EBITDA, adjusted net income 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, adjusted EBITDA, adjusted net income 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.

General Reserve Information Notes:
Gulfport's estimated proved reserves as of December 31, 2016 were prepared by Netherland, Sewell & Associates, Inc. ("NSAI") with respect to Gulfport's assets in the Utica Shale of Eastern Ohio and Gulfport's WCBB and Hackberry fields and by Gulfport's personnel with respect to its Niobrara field, overriding royalty and non-operated interests (less than 1% of its proved reserves at December 31, 2016), and comply with definitions promulgated by the SEC. NSAI is an independent petroleum engineering firm.

GULFPORT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
  December 31,
 2016
  December 31,
 2015
  (In thousands, except share data)
Assets      
Current assets:      
Cash and cash equivalents $ 1,275,875     $ 112,974  
Restricted cash 185,000      
Accounts receivable—oil and gas 136,761     71,872  
Accounts receivable—related parties 16     16  
Prepaid expenses and other current assets 7,639     3,905  
Derivative instruments 3,488     142,794  
Total current assets 1,608,779     331,561  
Property and equipment:      
Oil and natural gas properties, full-cost accounting, $1,580,305 and $1,817,701 excluded from amortization in 2016 and 2015, respectively 6,071,920     5,424,342  
Other property and equipment 68,986     33,171  
Accumulated depletion, depreciation, amortization and impairment (3,789,780 )   (2,829,110 )
Property and equipment, net 2,351,126     2,628,403  
Other assets:      
Equity investments 243,920     242,393  
Derivative instruments 5,696     51,088  
Deferred tax asset 4,692     74,925  
Other assets 8,932     6,364  
Total other assets 263,240     374,770  
Total assets $ 4,223,145     $ 3,334,734  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable and accrued liabilities $ 265,124     $ 265,128  
Asset retirement obligation 195     75  
Derivative instruments 119,219     437  
Deferred tax liability     50,697  
Current maturities of long-term debt 276     179  
Total current liabilities 384,814     316,516  
Long-term derivative instrument 26,759     6,935  
Asset retirement obligation 34,081     26,362  
Long-term debt, net of current maturities 1,593,599     946,084  
Total liabilities 2,039,253     1,295,897  
Commitments and contingencies      
Preferred stock, $.01 par value; 5,000,000 authorized, 30,000 authorized as redeemable 12% cumulative preferred stock, Series A; 0 issued and outstanding      
Stockholders’ equity:      
Common stock, $.01 par value; 200,000,000 authorized, 158,829,816 issued and outstanding in 2016 and 108,322,250 in 2015 1,588     1,082  
Paid-in capital 3,946,442     2,824,303  
Accumulated other comprehensive loss (53,058 )   (55,177 )
Retained deficit (1,711,080 )   (731,371 )
Total stockholders’ equity 2,183,892     2,038,837  
Total liabilities and stockholders’ equity $ 4,223,145     $ 3,334,734  


GULFPORT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
  Three Months Ended December 31,   Twelve Months Ended December 31,
  2016   2015   2016   2015
  (In thousands, except share data)   (In thousands, except share data)
Revenues:              
Gas sales $ 148,255     $ 79,214     $ 420,128     $ 324,733  
Oil and condensate sales 20,374     24,545     81,173     122,615  
Natural gas liquid sales 24,917     14,733     59,115     58,129  
Net (loss) gain on gas, oil, and NGL derivatives (130,130 )   71,734     (174,506 )   203,513  
  63,416     190,226     385,910     708,990  
Costs and expenses:              
Lease operating expenses 20,088     18,064     68,877     69,475  
Production taxes 3,784     3,577     13,276     14,740  
Midstream gathering and processing 43,496     38,139     165,972     138,590  
Depreciation, depletion and amortization 62,560     86,301     245,974     337,694  
Impairment of oil and gas properties 113,689     845,642     715,495     1,440,418  
General and administrative 10,468     10,652     43,409     41,967  
Accretion expense 280     226     1,057     820  
  254,365     1,002,601     1,254,060     2,043,704  
LOSS FROM OPERATIONS (190,949 )   (812,375 )   (868,150 )   (1,334,714 )
OTHER (INCOME) EXPENSE:              
Interest expense 18,638     16,315     63,530     51,221  
Interest income (408 )   (107 )   (1,230 )   (643 )
Insurance proceeds (1,968 )   (10,015 )   (5,718 )   (10,015 )
Loss on debt extinguishment 23,776         23,776      
Loss from equity method investments 8,409     49,057     33,985     106,093  
Other expense (income) 132     (93 )   129     (485 )
  48,579     55,157     114,472     146,171  
LOSS BEFORE INCOME TAXES (239,528 )   (867,532 )   (982,622 )   (1,480,885 )
INCOME TAX EXPENSE (BENEFIT) 842     (36,663 )   (2,913 )   (256,001 )
NET LOSS $ (240,370 )   $ (830,869 )   $ (979,709 )   $ (1,224,884 )
NET LOSS PER COMMON SHARE:              
Basic $ (1.86 )   $ (7.67 )   $ (7.97 )   $ (12.27 )
Diluted $ (1.86 )   $ (7.67 )   $ (7.97 )   $ (12.27 )
Weighted average common shares outstanding—Basic 129,450,895     108,269,639     122,952,866     99,792,401  
Weighted average common shares outstanding—Diluted 129,450,895     108,269,639     122,952,866     99,792,401  


GULFPORT ENERGY CORPORATION
RECONCILIATION OF EBITDA AND CASH FLOW
(Unaudited)
               
   Three Months Ended December 31,    Twelve Months Ended December 31,
  2016   2015   2016   2015
   (In thousands)    (In thousands)
               
Net loss $ (240,370 )   $ (830,869 )   $ (979,709 )   $ (1,224,884 )
Interest expense 18,638     16,315     63,530     51,221  
Income tax expense (benefit) 842     (36,663 )   (2,913 )   (256,001 )
Accretion expense 280     226     1,057     820  
Depreciation, depletion and amortization 62,560     86,301     245,974     337,694  
Impairment of oil and gas properties 113,689     845,642     715,495     1,440,418  
EBITDA $ (44,361 )   $ 80,952     $ 43,434     $ 349,268  
               
               
   Three Months Ended December 31,    Twelve Months Ended December 31,
  2016   2015   2016   2015
   (In thousands)    (In thousands)
               
Cash provided by operating activity $ 92,568     $ 87,088     $ 337,843     $ 322,179  
Adjustments:              
Changes in operating assets and liabilities (6,472 )   5,977     29,049     16,495  
Operating Cash Flow $ 86,096     $ 93,065     $ 366,892     $ 338,674  


GULFPORT ENERGY CORPORATION
RECONCILIATION OF ADJUSTED EBITDA
(Unaudited)
       
   Three Months Ended    Twelve Months Ended
  December 31, 2016   December 31, 2016
   (In thousands)
       
EBITDA $ (44,361 )   $ 43,434
       
Adjustments:      
Non-cash derivative loss   139,290       323,303  
Insurance proceeds   (1,968 )     (5,718 )
Impairment of Grizzly equity investment         23,069  
Loss on debt extinguishment   23,776       23,776  
Loss from equity method investments   8,409       10,916  
       
Adjusted EBITDA $ 125,146     $ 418,780  


GULFPORT ENERGY CORPORATION
RECONCILIATION OF ADJUSTED NET LOSS
(Unaudited)
         
     Three Months Ended    Twelve Months Ended
    December 31, 2016   December 31, 2016
     (In thousands, except share data)
         
Pre-tax net loss excluding adjustments   $ (239,528 )   $ (982,622 )
Adjustments:        
Non-cash derivative loss     139,290       323,303  
Impairment of oil and gas properties     113,689       715,495  
Insurance proceeds     (1,968 )     (5,718 )
Impairment of Grizzly equity investment           23,069  
Loss on debt extinguishment     23,776       23,776  
Loss from equity method investments     8,409       10,916  
Pre-tax net income excluding adjustments     43,668       108,219  
         
Tax benefit excluding adjustments     (585 )     (1,564 )
         
Adjusted net income   $ 44,253     $ 109,783  
                     
Adjusted net income per common share:                    
                     
Basic   $ 0.34     $ 0.89  
                     
Diluted   $ 0.34     $ 0.89  
         
Basic weighted average shares outstanding     129,450,895       122,952,866  
         
Diluted weighted average shares outstanding     129,450,895       122,952,866  

 

Investor & Media Contact:
Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-252-4550

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Schedules Fourth Quarter and Full-Year 2016 Financial and Operational Results Conference Call http://ir.gulfportenergy.com/news/detail/1304/gulfport-energy-corporation-schedules-fourth-quarter-and-full-year-2016-financial-and-operational-results-conference-call Tue, 07 Feb 2017 08:00:00 -0500 http://ir.gulfportenergy.com/news/detail/1304/gulfport-energy-corporation-schedules-fourth-quarter-and-full-year-2016-financial-and-operational-results-conference-call

OKLAHOMA CITY, Feb. 07, 2017 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport” or the “Company”) today scheduled its fourth quarter and full-year 2016 financial and operational results conference call.

Gulfport will hold a conference call on Tuesday, February 14, 2017 at 8:00 a.m. CST to discuss its fourth quarter and full-year of 2016 financial and operational results and to provide an update on the Company’s recent activities. Gulfport's fourth quarter and full-year of 2016 earnings are scheduled to be released after the market close on Monday, February 13, 2017.    

Interested parties may listen to the call via Gulfport’s website at www.gulfportenergy.com or by calling toll-free at 866-373-3408 or 412-902-1039 for international callers.  A replay of the call will be available for two weeks at 877-660-6853 or 201-612-7415 for international callers.  The replay passcode is 13622396.  The webcast will also be available for two weeks 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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.

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, 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; Gulfport’s ability to identify, complete and integrate acquisitions of properties and businesses; competitive actions by other oil and gas companies; changes in laws or regulations; 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.

Investor & Media Contact:
Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-252-4550

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Provides Fourth Quarter and Full-Year 2016 Operational Update http://ir.gulfportenergy.com/news/detail/1303/gulfport-energy-corporation-provides-fourth-quarter-and-full-year-2016-operational-update Tue, 17 Jan 2017 16:03:00 -0500 http://ir.gulfportenergy.com/news/detail/1303/gulfport-energy-corporation-provides-fourth-quarter-and-full-year-2016-operational-update

OKLAHOMA CITY, Jan. 17, 2017 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport” or the “Company”) today provided an operational update for the quarter and year ended December 31, 2016. Key information includes the following:

  • Net production during the fourth quarter of 2016 averaged 787.0 MMcfe per day, a 7% increase over the third quarter of 2016 and a 22% increase versus the fourth quarter of 2015, averaging at the high-end of Gulfport’s previously provided fourth quarter 2016 guidance of 765 MMcfe per day to 790 MMcfe per day.
  • Net production during the full-year of 2016 averaged 719.8 MMcfe per day, a 31% increase over the full-year of 2015.
  • Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $1.85 per Mcf during 2016, a $0.61 per Mcf differential to the average trade month NYMEX settled price, compared to Gulfport’s previously provided full-year of 2016 differential guidance of $0.61 to $0.66 per Mcf below NYMEX settlement prices.
  • Realized oil price, before the impact of derivatives and including transportation costs, averaged $38.18 per barrel during 2016, a $5.18 per barrel differential to the average WTI oil price, compared to Gulfport’s previously provided full-year of 2016 differential guidance of $5.50 to $6.50 per barrel below WTI.
  • Realized natural gas liquids price, before the impact of derivatives and including transportation costs, averaged $15.37 per barrel during 2016, or $0.37 per gallon, compared to Gulfport’s previously provided full-year of 2016 realization guidance of $0.25 to $0.29 per gallon.
  • Increased hedge position to approximately 555 MMcf per day of natural gas fixed price swaps during 2017 at an average price of $3.18 per Mcf and 346 MMcf per day of natural gas fixed price swaps during 2018 at an average price of $3.10 per Mcf.

Fourth Quarter and Full-Year 2016 Production and Realized Prices
Gulfport’s net daily production for the fourth quarter of 2016 averaged approximately 787.0 MMcfe per day. For the fourth quarter of 2016, Gulfport’s net daily production mix was comprised of approximately 87% natural gas, 9% natural gas liquids and 4% oil. Gulfport’s net daily production for the full-year of 2016 averaged approximately 719.8 MMcfe per day. For the full-year of 2016, Gulfport’s net daily production mix was comprised of approximately 86% natural gas, 9% natural gas liquids and 5% oil.

Gulfport’s realized prices for the fourth quarter of 2016 were $0.41 per Mcf of natural gas, $32.41 per barrel of oil and $0.52 per gallon of NGL, resulting in a total equivalent price of $0.88 per Mcfe. Gulfport's realized prices for the fourth quarter of 2016 include an aggregate non-cash derivative loss of $139.3 million. Before the impact of derivatives, realized prices for the fourth quarter of 2016, including transportation costs, were $2.34 per Mcf of natural gas, $45.15 per barrel of oil and $0.56 per gallon of NGL, for a total equivalent price of $2.67 per Mcfe.

Gulfport’s realized prices for the full-year of 2016 were $1.12 per Mcf of natural gas, $35.65 per barrel of oil and $0.35 per gallon of NGL, resulting in a total equivalent price of $1.46 per Mcfe. Gulfport's realized prices for the full-year of 2016 include an aggregate non-cash derivative loss of $323.3 million. Before the impact of derivatives, realized prices for the full-year of 2016, including transportation costs, were $1.85 per Mcf of natural gas, $38.18 per barrel of oil and $0.37 per gallon of NGL, for a total equivalent price of $2.13 per Mcfe.

GULFPORT ENERGY CORPORATION
PRODUCTION SCHEDULE
(Unaudited)
                   
      Three Months Ended   Twelve Months Ended
       December 31,    December 31,
Production Volumes:       2016     2015     2016     2015
                   
Natural gas (MMcf)         63,362       48,942       227,594       156,151
Oil (MBbls)         451       675       2,126       2,899
NGL (MGal)         44,345       43,700       161,562       185,792
Gas equivalent (MMcfe)         72,404       59,233       263,430       200,089
Gas equivalent (Mcfe per day)       786,998       643,832       719,753       548,188
                   
Average Realized Prices                  
(before the impact of derivatives):              
                   
Natural gas (per Mcf)     $   2.34   $   1.62   $   1.85   $   2.08
Oil (per Bbl)     $   45.15   $   36.38   $   38.18   $   42.29
NGL (per Gal)     $   0.56   $   0.34   $   0.37   $   0.31
Gas equivalent (per Mcfe)     $   2.67   $   2.00   $   2.13   $   2.53
                   
Average Realized Prices:                  
(including cash-settlement of derivatives and excluding non-cash derivative gain or loss):    
                   
Natural gas (per Mcf)     $   2.49   $   2.48   $   2.45   $   2.79
Oil (per Bbl)     $   45.37   $   43.00   $   43.29   $   45.41
NGL (per Gal)     $   0.55   $   0.34   $   0.36   $   0.31
Gas equivalent (per Mcfe)     $   2.80   $   2.79   $   2.69   $   3.13
                   
Average Realized Prices:                  
                   
Natural gas (per Mcf)     $   0.41   $   2.94   $   1.12   $   3.25
Oil (per Bbl)     $   32.41   $   44.63   $   35.65   $   48.91
NGL (per Gal)     $   0.52   $   0.37   $   0.35   $   0.32
Gas equivalent (per Mcfe)     $   0.88   $   3.21   $   1.46   $   3.54

Derivatives
Gulfport has hedged a portion of its expected production to lock in prices and returns that provide certainty of cash flow to execute on its capital plans. The table below sets forth the Company's hedging positions as of January 17, 2017.

  GULFPORT ENERGY CORPORATION
  COMMODITY DERIVATIVES - HEDGE POSITION
  (Unaudited)
                       
         
          1Q2017   2Q2017   3Q2017   4Q2017
  Natural gas:                  
    Swap contracts (NYMEX)                
    Volume (BBtupd)       487         527       568       635
    Price ($ per MMBtu)   $   3.16     $   3.22   $   3.17   $   3.17
                       
    Swaption contracts (NYMEX)                
    Volume (BBtupd)       45         65       65       65
    Price ($ per MMBtu)   $   3.19     $   3.11   $   3.11   $   3.11
                       
    Basis Swap Contract  (Tetco M2)                
    Volume (BBtupd)       50       -     -     -
    Differential ($ per MMBtu)   $   (0.59 )   $ -   $ -   $ -
  Oil:                    
    Swap contracts (LLS)                
    Volume (Bblpd)         2,000         2,000       1,500       1,500
    Price ($ per Bbl)   $   51.10     $   51.10   $   53.12   $   53.12
                       
    Swap contracts (WTI)                
    Volume (Bblpd)         1,033         3,330       4,500       4,500
    Price ($ per Bbl)   $   55.15     $   55.18   $   54.89   $   54.89
                       
  NGL:                    
    C3 Propane Swap Contracts                
    Volume (Bblpd)         500         2,000       2,000       2,000
    Price ($ per Gal)     $   0.63     $   0.61   $   0.61   $   0.61
                       
    C5 Pentane Swap Contracts                
    Volume (Bblpd)         250         250       250       250
    Price ($ per Gal)     $   1.17     $   1.17   $   1.17   $   1.17
                       
                       
                       
            2017       2018     2019    
  Natural gas:                  
    Swap contracts (NYMEX)                
    Volume (BBtupd)       555         346       5    
    Price ($ per MMBtu)   $   3.18     $   3.10   $   3.37    
                       
    Swaption contracts (NYMEX)                
    Volume (BBtupd)       60       65     -    
    Price ($ per MMBtu)   $   3.12     $ 3.33   $ -    
                       
    Basis Swap Contract  (Tetco M2)                
    Volume (BBtupd)       12       -     -    
    Differential ($ per MMBtu)   $   (0.59 )   $ -   $ -    
  Oil:                    
    Swap contracts (LLS)                
    Volume (Bblpd)         1,748       -     -    
    Price ($ per Bbl)   $   51.97     $ -   $ -    
                       
    Swap contracts (WTI)                
    Volume (Bblpd)         3,353       899     -    
    Price ($ per Bbl)   $   54.98     $ 55.31   $ -    
                       
  NGL:                    
    C3 Propane Swap Contracts                
    Volume (Bblpd)         1,630       -     -    
    Price ($ per Gal)     $   0.61     $ -   $ -    
                       
    C5 Pentane Swap Contracts                
    Volume (Bblpd)         250       -     -    
    Price ($ per Gal)     $   1.17     $ -   $ -    

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.

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, 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; Gulfport’s ability to identify, complete and integrate acquisitions of properties and businesses; competitive actions by other oil and gas companies; changes in laws or regulations; 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.

Investor & Media Contact:
Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-252-4550

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Announces Changes in Senior Management http://ir.gulfportenergy.com/news/detail/1302/gulfport-energy-corporation-announces-changes-in-senior-management Thu, 29 Dec 2016 17:19:00 -0500 http://ir.gulfportenergy.com/news/detail/1302/gulfport-energy-corporation-announces-changes-in-senior-management

OKLAHOMA CITY, Dec. 29, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR) (“Gulfport” or the “Company”) today announced that Aaron Gaydosik, the Company’s Chief Financial Officer, has informed Gulfport of his decision to resign from the Company, effective January 4, 2017, to pursue an external opportunity.

In connection with Mr. Gaydosik’s resignation, the Gulfport Board of Directors has appointed Keri Crowell to the position of Chief Financial Officer. Ms. Crowell joined the Company in 2005 and she has served as Gulfport’s Chief Accounting Officer since September 2015, and will continue to serve as Gulfport’s principal accounting officer. Prior to her appointment as Chief Accounting Officer, Ms. Crowell served as a Vice President of the Company since April 2014 and Controller since March 2006. Ms. Crowell joined the Company in October 2005 as Assistant Controller. Prior to joining the Company, Ms. Crowell served in various accounting and/or audit roles at Ernst and Young LLP, Arthur Andersen LLP and an Oklahoma City-based accounting firm. Ms. Crowell holds a Bachelor of Science in Business Administration and Accounting and Masters of Business Administration degrees from Oklahoma State University, and also holds a Certified Public Accountant license from the State of Oklahoma. Ms. Crowell is a member of Oklahoma Society of Certified Public Accountants and Financial Executives International, or FEI, and served as a board member and the treasurer of the FEI Oklahoma City chapter from 2012 until 2014.

Michael G. Moore, Chief Executive Officer and President commented, “Keri has been a key contributor to Gulfport’s success during her 11 year tenure and has established herself as an impactful leader among our team. Her extensive financial and accounting experience makes her exceptionally suited for this expanded role and I am confident she will continue to be instrumental in the future growth and success of Gulfport in her new position.” Mr Moore further stated, “On behalf of the Gulfport team I would like to thank Aaron for his contributions to our Company and wish him the very best in his new endeavors.”

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 24.9% interest in Grizzly Oil Sands ULC.

Investor & Media Contact:
Jessica R. Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4421

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Prices $600 Million Offering of 6.375% Senior Notes http://ir.gulfportenergy.com/news/detail/1301/gulfport-energy-corporation-prices-600-million-offering-of-6-375-senior-notes Thu, 15 Dec 2016 21:30:00 -0500 http://ir.gulfportenergy.com/news/detail/1301/gulfport-energy-corporation-prices-600-million-offering-of-6-375-senior-notes

OKLAHOMA CITY, Dec. 15, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport”) today announced that it has priced at par an offering of $600 million aggregate principal amount of its 6.375% Senior Notes due 2025 (the “Notes”).  The Notes are being sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be issued under a new indenture and will rank equally with Gulfport’s previously issued senior notes and other senior indebtedness. The Notes offering is expected to close on December 21, 2016, subject to customary closing conditions. Net proceeds to Gulfport from the sale of the Notes will be approximately $591 million.  Gulfport expects to use the net proceeds of the Notes offering, together with the net proceeds from its concurrent equity offering, (i) primarily to fund the cash portion of the purchase price for its previously announced pending acquisition of certain assets of Vitruvian II Woodford, LLC and (ii) for general corporate purposes, which may include the funding of a portion of its capital development plans. If the pending acquisition is not consummated, or to the extent that the purchase price is reduced due to a purchase price adjustment under the related purchase agreement, Gulfport intends to use any such proceeds for general corporate purposes, including the funding of a portion of its capital development plans.

The Notes will be general unsecured senior obligations of Gulfport, will be guaranteed on a senior unsecured basis by certain of Gulfport’s subsidiaries and will pay interest semi-annually.

The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 24.9% interest in Grizzly Oil Sands ULC.

Forward Looking Statements
Certain statements included in this press release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the consummation of the transactions described above. Gulfport cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Gulfport cannot assure you that the proposed transactions described above will be consummated on the terms Gulfport currently contemplates, if at all. Information concerning these and other factors can be found in Gulfport’s filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.

Any forward-looking statements made in this press release speak only as of the date of this release and, except as required by law, Gulfport undertakes no obligation to update any forward-looking statement contained in this press release, even if Gulfport’s expectations or any related events, conditions or circumstances change. Gulfport is not responsible for any changes made to this release by wire or Internet services.

 

Investor & Media Contacts:
Paul K. Heerwagen IV – Vice President, Corporate Development
pheerwagen@gulfportenergy.com
405-242-4888

Jessica R. Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4421

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Announces Pricing of Its Common Stock Offering http://ir.gulfportenergy.com/news/detail/1300/gulfport-energy-corporation-announces-pricing-of-its-common-stock-offering Thu, 15 Dec 2016 21:29:00 -0500 http://ir.gulfportenergy.com/news/detail/1300/gulfport-energy-corporation-announces-pricing-of-its-common-stock-offering

OKLAHOMA CITY, Dec. 15, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport”) announced today the pricing of an underwritten public offering of 29,000,000 shares of its common stock at a price to the public of $21.50 per share. The underwriters have a 30-day option to purchase up to an additional 4,350,000 shares from Gulfport at the public offering price per share (less the underwriting discount). The offering is expected to close on December 21, 2016, subject to customary closing conditions. Net proceeds to Gulfport from the sale of the 29,000,000 shares will be approximately $608 million, after deducting underwriting discounts, commissions and estimated offering expenses. Gulfport intends to use the net proceeds from this offering, together with the net proceeds from its concurrent debt offering, (i) primarily to fund the cash portion of the purchase price for its previously announced pending acquisition of certain assets of Vitruvian II Woodford, LLC and (ii) for general corporate purposes, which may include the funding of a portion of its capital development plans.  If the pending acquisition is not consummated, or to the extent that the purchase price is reduced due to a purchase price adjustment under the related purchase agreement, Gulfport intends to use any such proceeds for general corporate purposes, including the funding of a portion of its capital development plans.

Credit Suisse Securities (USA) LLC and BofA Merrill Lynch are acting as joint book-running managers in the offering. Copies of the preliminary prospectus supplement for the offering may be obtained on the website of the Securities and Exchange Commission, www.sec.gov, or by contacting (i) Credit Suisse Securities (USA) LLC, Prospectus Department, at One Madison Avenue, New York, New York 10010, or by telephone at (800) 221-1037, or (ii) BofA Merrill Lynch at NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, North Carolina 28255-0001, Attn: Prospectus Department, or by email at dg.prospectus_requests@baml.com

The common stock will be issued and sold pursuant to an effective automatic shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 24.9% interest in Grizzly Oil Sands ULC.

Forward Looking Statements
Certain statements included in this press release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the consummation of the transactions described above. Gulfport cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Gulfport cannot assure you that the proposed transaction described above will be consummated on the terms Gulfport currently contemplates, if at all. Information concerning these and other factors can be found in Gulfport’s filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov

Any forward-looking statements made in this press release speak only as of the date of this release and, except as required by law, Gulfport undertakes no obligation to update any forward-looking statement contained in this press release, even if Gulfport’s expectations or any related events, conditions or circumstances change. Gulfport is not responsible for any changes made to this release by wire or Internet services.

Investor & Media Contacts:
Paul K. Heerwagen IV – Vice President, Corporate Development
pheerwagen@gulfportenergy.com
405-242-4888

Jessica R. Wills – Vice President, Corporate Development
jwills@gulfportenergy.com
405-242-4421

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Launches Proposed $600 Million Offering of Senior Notes http://ir.gulfportenergy.com/news/detail/1299/gulfport-energy-corporation-launches-proposed-600-million-offering-of-senior-notes Wed, 14 Dec 2016 16:43:00 -0500 http://ir.gulfportenergy.com/news/detail/1299/gulfport-energy-corporation-launches-proposed-600-million-offering-of-senior-notes

OKLAHOMA CITY, Dec. 14, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport”) today announced that it proposes to offer, subject to market conditions and other factors, $600 million aggregate principal amount of its senior notes due 2025 (the “Notes”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be issued under a new indenture and will rank equally with Gulfport’s previously issued senior notes and other senior indebtedness. Gulfport expects to use the net proceeds of the Notes offering, together with the net proceeds from its concurrent equity offering, (i) primarily to fund the cash portion of the purchase price for its previously announced pending acquisition of certain assets of Vitruvian II Woodford, LLC and (ii) for general corporate purposes, which may include the funding of a portion of its capital development plans. If the pending acquisition is not consummated, or to the extent that the purchase price is reduced due to a purchase price adjustment under the related purchase agreement, Gulfport intends to use any such proceeds for general corporate purposes, including the funding of a portion of its capital development plans.

The Notes will be general unsecured senior obligations of Gulfport, will be guaranteed on a senior unsecured basis by certain of Gulfport’s subsidiaries and will pay interest semi-annually.

The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 24.9% interest in Grizzly Oil Sands ULC.

Forward Looking Statements
Certain statements included in this press release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the consummation of the transaction described above. Gulfport cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Gulfport cannot assure you that the proposed transactions described above will be consummated on the terms Gulfport currently contemplates, if at all. Information concerning these and other factors can be found in Gulfport’s filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.

Any forward-looking statements made in this press release speak only as of the date of this release and, except as required by law, Gulfport undertakes no obligation to update any forward-looking statement contained in this press release, even if Gulfport’s expectations or any related events, conditions or circumstances change. Gulfport is not responsible for any changes made to this release by wire or Internet services.

Investor & Media Contacts:
Paul K. Heerwagen IV – Vice President, Corporate Development
pheerwagen@gulfportenergy.com
405-242-4888

Jessica R. Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4421

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Launches Common Stock Offering http://ir.gulfportenergy.com/news/detail/1298/gulfport-energy-corporation-launches-common-stock-offering Wed, 14 Dec 2016 16:42:00 -0500 http://ir.gulfportenergy.com/news/detail/1298/gulfport-energy-corporation-launches-common-stock-offering

OKLAHOMA CITY, Dec. 14, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport”) today announced the commencement of an underwritten public offering of 29,000,000 shares of its common stock, subject to market and other conditions. The underwriters will have a 30-day option to purchase up to an additional 4,350,000 shares from Gulfport. Gulfport intends to use the net proceeds from this offering, together with the net proceeds from its concurrent debt offering, (i) primarily to fund the cash portion of the purchase price for its previously announced pending acquisition of certain assets of Vitruvian II Woodford, LLC and (ii) for general corporate purposes, which may include the funding of a portion of its capital development plans.  If the pending acquisition is not consummated, or to the extent that the purchase price is reduced due to a purchase price adjustment under the related purchase agreement, Gulfport intends to use any such proceeds for general corporate purposes, including the funding of a portion of its capital development plans.

Credit Suisse Securities (USA) LLC and BofA Merrill Lynch are acting as joint book-running managers in the offering. Copies of the preliminary prospectus supplement for the offering may be obtained on the website of the Securities and Exchange Commission, www.sec.gov, or by contacting (i) Credit Suisse Securities (USA) LLC, Prospectus Department, at One Madison Avenue, New York, New York 10010, or by telephone at (800) 221-1037, or (ii) BofA Merrill Lynch at NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, North Carolina 28255-0001, Attn: Prospectus Department, or by email at dg.prospectus_requests@baml.com.

The common stock will be issued and sold pursuant to an effective automatic shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 24.9% interest in Grizzly Oil Sands ULC.

Forward Looking Statements
Certain statements included in this press release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the consummation of the transactions described above. Gulfport cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Gulfport cannot assure you that the proposed transaction described above will be consummated on the terms Gulfport currently contemplates, if at all. Information concerning these and other factors can be found in Gulfport’s filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.

Any forward-looking statements made in this press release speak only as of the date of this release and, except as required by law, Gulfport undertakes no obligation to update any forward-looking statement contained in this press release, even if Gulfport’s expectations or any related events, conditions or circumstances change. Gulfport is not responsible for any changes made to this release by wire or Internet services.

 

Investor & Media Contacts:
Paul K. Heerwagen IV – Vice President, Corporate Development
pheerwagen@gulfportenergy.com
405-242-4888

Jessica R. Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4421

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Announces Entry into the SCOOP Play with Complimentary Acquisition of Approximately 85,000 Net Effective Acres http://ir.gulfportenergy.com/news/detail/1297/gulfport-energy-corporation-announces-entry-into-the-scoop-play-with-complimentary-acquisition-of-approximately-85000-net-effective-acres Wed, 14 Dec 2016 16:40:00 -0500 http://ir.gulfportenergy.com/news/detail/1297/gulfport-energy-corporation-announces-entry-into-the-scoop-play-with-complimentary-acquisition-of-approximately-85000-net-effective-acres

OKLAHOMA CITY, Dec. 14, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR) (“Gulfport” or the “Company”) today announced that the Company has entered into a definitive agreement with Vitruvian II Woodford, LLC (“Vitruvian”), a portfolio company of Quantum Energy Partners, to acquire approximately 46,400 net surface acres in the core of the SCOOP, including approximately 183 MMcfe per day of net production for October 2016 for a total purchase price of $1.85 billion.

Acquisition Highlights

  • Substantially contiguous acreage position totaling approximately 85,000 net effective acres, which includes rights to 46,400 Woodford acres and 38,600 Springer acres, in Grady, Stephens and Garvin Counties, Oklahoma, with approximately 80% held by production.   
  • Stacked-pay potential with approximately 1,750 gross drilling locations, including over 775 gross locations with internal rates of return of approximately 75%, targeting the Woodford and Springer intervals with significant upside potential through infill drilling and additional prospective zones.
  • Existing production of approximately 183 MMcfe per day in the month of October 2016.
  • Total estimated proved reserves at September 30, 2016 were 1.1 Tcfe.

As of December 13, 2016, Gulfport entered into a definitive agreement with Vitruvian to acquire approximately 46,400 net surface acres with multiple producing zones, including the Woodford and Springer formations, in Grady, Stephens and Garvin Counties, Oklahoma. Given the potential for numerous producing intervals across this high-quality position, Gulfport has identified approximately 1,750 gross drilling locations, composed of only Woodford and Springer zones with significant upside potential through infill drilling and additional prospective zones present on the acreage. The acquired properties are located primarily in the over-pressured liquids-rich to dry gas windows of the play and include approximately 183 Mmcfepd of net production for October 2016. The transaction also includes 48 producing horizontal wells and an additional interest in over 150 non-operated horizontal wells. Four rigs are currently operating on the acreage and Gulfport currently intends to maintain a four rig cadence in the play during 2017 and add an additional two rigs at the beginning of 2018. Based on the estimated internal reserve report prepared by Vitruvian as of September 30, 2016 and audited by Netherland, Sewell & Associates, Inc., the estimated proved reserves attributable to the acreage are approximately 1.1 Tcfe.  The acquisition is expected to close in February 2017, subject to the satisfaction of certain closing conditions.

Consideration in the transaction includes a total purchase price of approximately $1.85 billion, consisting of $1.35 billion in cash and approximately 18.8 million in shares of Gulfport common stock privately placed to the sellers, subject to adjustment.  The Company intends to fund the cash portion of the acquisition through potential debt and equity financings prior to closing. 

Chief Executive Officer and President, Michael G. Moore commented, “Today is a defining day for Gulfport Energy. Combining Vitruvian’s high-quality SCOOP position with our prolific Utica assets will transform our company and solidify Gulfport with core positions in two of North America’s high-return natural gas basins. In Vitruvian, we believe we have found a prolific stacked pay resource with strong production history, a multi-year, high-return drilling inventory – an opportunity with significant upside from both a resource and operational perspective.  The asset consists of a low-risk, substantially contiguous acreage position in the core of the SCOOP. This acquisition is not only additive to our Company but in our opinion truly one-of-a-kind. The transaction is expected to be accretive to cash flow and net asset value per share and provides us with a blocky, sizeable and scalable footprint in a new operating area.”

Vitruvian CEO and President, Richard F. Lane commented, “We are pleased to be part of this significant transaction, both for the complimentary asset it represents for Gulfport and for the achievement it represents for Vitruvian’s employees and stakeholders. We plan to work closely with the Gulfport team to ensure a seamless transition of the asset to Gulfport.”

President of Quantum Energy Partners, Dheeraj Verma commented, “We are excited about this transaction and believe that the combination of these assets will provide Mike and his team with more opportunities for margin expansion and cash flow growth immediately. We are quite optimistic about the value creation potential here and look forward to participating in this upside as a shareholder of the combined company.”

BofA Merrill Lynch acted as exclusive financial advisor to Gulfport in connection with the transaction and Akin Gump Strauss Hauer & Feld LLP served as Gulfport’s legal counsel. Jefferies acted as financial advisor to Vitruvian in connection with the transaction and Vinson & Elkins served as Vitruvian’s legal counsel.

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 24.9% interest in Grizzly Oil Sands ULC.

Forward Looking Statements
Certain statements included in this press release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the consummation of the pending transaction described above. Gulfport cautions that actual future events and results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Gulfport cannot assure you that the proposed transaction described above will be consummated on the terms Gulfport currently contemplates, if at all. Information concerning these and other factors can be found in Gulfport’s filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.

Any forward-looking statements made in this press release speak only as of the date of this release and, except as required by law, Gulfport undertakes no obligation to update any forward-looking statement contained in this press release, even if Gulfport’s expectations or any related events, conditions or circumstances change. Gulfport is not responsible for any changes made to this release by wire or Internet services.

Investor & Media Contact:
Paul K. Heerwagen IV – Vice President, Corporate Development
pheerwagen@gulfportenergy.com
405-242-4888

Jessica R. Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4888

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Announces Agreement to Acquire 12,600 Net Undeveloped Dry Gas Utica Acres Located in Northern Monroe County, Ohio http://ir.gulfportenergy.com/news/detail/1296/gulfport-energy-corporation-announces-agreement-to-acquire-12600-net-undeveloped-dry-gas-utica-acres-located-in-northern-monroe-county-ohio Wed, 07 Dec 2016 07:30:00 -0500 http://ir.gulfportenergy.com/news/detail/1296/gulfport-energy-corporation-announces-agreement-to-acquire-12600-net-undeveloped-dry-gas-utica-acres-located-in-northern-monroe-county-ohio

OKLAHOMA CITY, Dec. 07, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR) (“Gulfport” or the “Company”) today announced that the Company has entered into a definitive agreement with a third-party to acquire approximately 12,600 net undeveloped acres located in northern Monroe County, Ohio in the core of the dry gas window of the Utica Shale for an aggregate purchase price of approximately $87 million, subject to customary post-closing adjustments. Gulfport plans to fund the acquisition with available cash-on-hand.

This acreage is located near or adjacent to Gulfport’s existing acreage position and development plan, and is approximately 50% held by production.  The transaction is expected to close in December 2016.

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 24.9% interest in Grizzly Oil Sands ULC.

Forward Looking Statements
Certain statements included in this press release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the consummation of the transaction described above. Gulfport cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Gulfport cannot assure you that the proposed transaction described above will be consummated on the terms Gulfport currently contemplates, if at all. Information concerning these and other factors can be found in Gulfport’s filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.

Any forward-looking statements made in this press release speak only as of the date of this release and, except as required by law, Gulfport undertakes no obligation to update any forward-looking statement contained in this press release, even if Gulfport’s expectations or any related events, conditions or circumstances change. Gulfport is not responsible for any changes made to this release by wire or Internet services.

Investor & Media Contact:
Paul K. Heerwagen IV
pheerwagen@gulfportenergy.com
405-242-4888

Jessica R. Wills
jwills@gulfportenergy.com
405-242-4888

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Reports Third Quarter 2016 Results http://ir.gulfportenergy.com/news/detail/1295/gulfport-energy-corporation-reports-third-quarter-2016-results Wed, 02 Nov 2016 16:01:00 -0400 http://ir.gulfportenergy.com/news/detail/1295/gulfport-energy-corporation-reports-third-quarter-2016-results

OKLAHOMA CITY, Nov. 02, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport” or the “Company”) today reported financial and operational results for the quarter ended September 30, 2016 and provided an update on its 2016 activities.  Key information for the third quarter of 2016 includes the following:

  • Net production averaged 734.1 MMcfe per day.
  • Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $2.10 per Mcf, a $0.71 per Mcf differential to the average trade month NYMEX settled price.
  • Realized oil price, before the impact of derivatives and including transportation costs, averaged $41.81 per barrel, a $3.13 per barrel differential to the average WTI oil price.
  • Realized natural gas liquids price, before the impact of derivatives and including transportation costs, averaged $13.98 per barrel, or $0.33 per gallon.
  • Net loss of $157.3 million, or $1.25 per diluted share.
  • Adjusted net income (as defined and reconciled below) of $20.0 million, or $0.16 per diluted share.
  • Adjusted EBITDA (as defined and reconciled below) of $94.7 million.
  • Reduced unit lease operating expense for the third quarter of 2016 by 12% to $0.26 per Mcfe from $0.30 per Mcfe for the third quarter of 2015.
  • Reduced unit midstream gathering and processing expense for the third quarter of 2016 by 5% to $0.67 per Mcfe from $0.71 per Mcfe for the third quarter of 2015.
  • Reduced unit general and administrative expense for the third quarter of 2016 by 16% to $0.15 per Mcfe from $0.18 per Mcfe for the third quarter of 2015.
  • Net production for the fourth quarter of 2016 is expected to average approximately 765 MMcfe per day to 790 MMcfe per day, compared to 643.8 MMcfe per day in the fourth quarter of 2015, an increase of 19% to 23%.

Michael G. Moore, Chief Executive Officer, commented, "Gulfport had a solid third quarter across the board, demonstrating our commitment to deliver on expectations. I am very proud of the continued hard work and commitment of all teams across the organization who came together to deliver these strong results and am encouraged by our momentum as we head into 2017."

“With regard to our 2017 capital outlook and production growth, while we have not yet finalized the specifics of our anticipated full-year 2017 program, we continue to refine our thoughts surrounding the potential six and eight-rig scenarios provided on our second quarter call. Given our hedge position and where commodity prices are currently trading, we feel confident in establishing a six-rig program as a base level of activity for 2017, with the potential to add additional rigs during the year.  We currently are utilizing four rigs and have already contracted two additional rigs, one of which is currently moving to location and the other rig is scheduled to begin operations in December. ”

Third Quarter Financial Results
For the third quarter of 2016, Gulfport reported a net loss of $157.3 million, or $1.25 per diluted share, on oil and natural gas revenues of $193.7 million.  For the third quarter of 2016, EBITDA (as defined and reconciled below) was $126.8 million and cash flow from operating activities before changes in operating assets and liabilities (as defined and reconciled below) was $109.1 million.  Gulfport’s GAAP net loss for the third quarter of 2016 includes the following items: 

  • Aggregate non-cash derivative gain of $22.4 million. 
  • Aggregate loss of $212.2 million in connection with the impairment of oil and natural gas properties. 
  • Aggregate gain of $3.8 million attributable to net insurance proceeds in connection with a 2014 legacy environmental litigation settlement.
  • Aggregate gain of $6.0 million in connection with Gulfport's equity interests in certain equity investments.
  • Associated adjusted taxable benefit of $0.6 million.

Excluding the effect of these items, Gulfport’s financial results for the third quarter of 2016 would have been as follows:

  • Adjusted oil and natural gas revenues of $171.3 million.
  • Adjusted net income of $20.0 million, or $0.16 per diluted share.
  • Adjusted EBITDA of $94.7 million.

Year-To-Date 2016 Financial Results
For the nine-month period ended September 30, 2016, Gulfport reported a net loss of  $739.3 million, or $6.12 per diluted share, on oil and natural gas revenues of $322.5 million. For the nine-month period ended September 30, 2016, EBITDA (as defined and reconciled below) was $87.8 million and cash flow from operating activities before changes in operating assets and liabilities (as defined and reconciled below) was $280.8 million. Gulfport’s GAAP net loss for the nine-month period ended September 30, 2016 includes the following items: 

  • Aggregate non-cash derivative loss of $184.0 million. 
  • Aggregate loss of $601.8 million in connection with the impairment of oil and natural gas properties.
  • Aggregate loss of $23.1 million in connection with the impairment associated with Gulfport’s equity interest in Grizzly Oil Sands. 
  • Aggregate gain of $3.8 million attributable to net insurance proceeds in connection with a 2014 legacy environmental litigation settlement.
  • Aggregate loss of $2.5 million in connection with Gulfport's equity interests in certain equity investments.
  • Associated adjusted taxable benefit of $1.0 million.

Excluding the effect of these items, Gulfport’s financial results for the nine-month period ended September 30, 2016 would have been as follows:

  • Adjusted oil and natural gas revenues of $506.5 million.
  • Adjusted net income of $65.5 million, or $0.54 per diluted share.
  • Adjusted EBITDA of $293.6 million.

Production and Realized Prices
Gulfport’s net daily production for the third quarter of 2016 averaged approximately 734.1 MMcfe per day. For the third quarter of 2016, Gulfport’s net daily production mix was comprised of approximately 86% natural gas, 9% natural gas liquids ("NGL") and 5% oil.

Gulfport’s realized prices for the third quarter of 2016 were $2.67 per Mcf of natural gas, $45.09 per barrel of oil and $0.34 per gallon of NGL, resulting in a total equivalent price of $2.87 per Mcfe. Gulfport's realized prices for the third quarter of 2016 include an aggregate non-cash derivative gain of $22.4 million. Before the impact of derivatives, realized prices for the third quarter of 2016, including transportation costs, were $2.10 per Mcf of natural gas, $41.81 per barrel of oil and $0.33 per gallon of NGL, for a total equivalent price of $2.35 per Mcfe.

GULFPORT ENERGY CORPORATION
PRODUCTION SCHEDULE
(Unaudited)
 
  Three Months Ended   Nine Months Ended
  September 30,   September 30,
Production Volumes: 2016   2015   2016   2015
               
Natural gas (MMcf) 58,151     48,124     164,233     107,208  
Oil (MBbls) 521     732     1,675     2,225  
NGL (MGal) 43,837     49,094     117,217     142,093  
Gas equivalent (MMcfe) 67,541     59,530     191,026     140,856  
Gas equivalent (Mcfe per day) 734,144     647,062     697,174     515,956  
               
Average Realized Prices              
(before the impact of derivatives):              
               
Natural gas (per Mcf) $ 2.10     $ 2.07     $ 1.66     $ 2.29  
Oil (per Bbl) $ 41.81     $ 40.53     $ 36.31     $ 44.08  
NGL (per Gal) $ 0.33     $ 0.19     $ 0.29     $ 0.31  
Gas equivalent (per Mcfe) $ 2.35     $ 2.33     $ 1.92     $ 2.75  
               
Average Realized Prices:              
(including cash-settlement of derivatives and excluding non-cash derivative gain or loss):
               
Natural gas (per Mcf) $ 2.31     $ 2.62     $ 2.44     $ 2.93  
Oil (per Bbl) $ 43.43     $ 44.84     $ 42.73     $ 46.14  
NGL (per Gal) $ 0.33     $ 0.19     $ 0.29     $ 0.31  
Gas equivalent (per Mcfe) $ 2.54     $ 2.83     $ 2.65     $ 3.26  
               
Average Realized Prices:              
               
Natural gas (per Mcf) $ 2.67     $ 3.72     $ 1.39     $ 3.39  
Oil (per Bbl) $ 45.09     $ 57.02     $ 36.52     $ 50.21  
NGL (per Gal) $ 0.34     $ 0.19     $ 0.28     $ 0.31  
Gas equivalent (per Mcfe) $ 2.87     $ 3.87     $ 1.69     $ 3.68  
                               

For the fourth quarter of 2016, Gulfport currently estimates that its net production will range from 765 MMcfe per day to 790 MMcfe per day and full-year 2016 net production guidance remains unchanged at 695 MMcfe per day to 730 MMcfe per day.

2016 Financial Position and Liquidity
For the nine-month period ended September 30, 2016, Gulfport’s drilling and completion capital expenditures totaled $369.2 million, midstream capital expenditures totaled $4.0 million and leasehold capital expenditures (net of proceeds from leasehold sales) totaled $9.8 million.

Mr. Moore commented, "With regard to our leasehold position, we continue to high-grade our acreage within our portfolio and focus our efforts on consolidating our premium, core position in the wet gas and dry gas windows of the play. With this in mind, during the third quarter of 2016 we sold a non-core exploratory acreage position in West Virginia and have already started to reinvest the net proceeds from this sale just across the border in the dry gas window in Ohio. We believe a significant organic leasing opportunity is unfolding in an area where infrastructure build out is underway and where we experience favorable economic returns."

As of September 30, 2016, Gulfport had cash on hand of approximately $364.3 million. In addition, as of September 30, 2016, Gulfport’s revolving credit facility of $700 million was undrawn and had $493.0 million available for future borrowing after giving effect to outstanding letters of credit totaling $207.0 million.

Operational Update
Utica Shale
In the Utica Shale, during the third quarter of 2016, Gulfport spud 9 gross (8.8 net) wells and turned-to-sales 21 gross (15.8 net) operated wells and 13 gross (3.9 net) non-operated wells. During the third quarter of 2016, net production from Gulfport’s Utica acreage averaged approximately 713.0 MMcfe per day, an increase of 11% over the second quarter of 2016 and an increase of 14% over the third quarter of 2015. Field level compression remains on schedule to begin phasing-in across Gulfport's dry gas position around year-end 2016.

Gulfport continues to realize operational efficiency gains in the Utica Shale and for the nine-month period ended September 30, 2016, Gulfport spud 31 gross wells with an average lateral length of approximately 8,520 feet and average drilling days from spud to rig release of approximately 25 days. In addition, Gulfport turned-to-sales 43 gross wells with an average lateral length of approximately 8,485 feet and average of approximately 9 stages completed per day. For the nine-month period ended September 30, 2016, Gulfport's well costs averaged approximately $1,085 per foot of lateral in the Utica Shale.

At present, Gulfport has four operated horizontal rigs drilling in the play and has contracted its fifth and sixth horizontal drilling rigs to begin operations in November 2016 and December 2016, respectively.

Southern Louisiana
At its West Cote Blanche Bay and Hackberry fields, during the third quarter of 2016, Gulfport performed 24 recompletions and net production totaled approximately 20.2 MMcfe per day. 

2016 Capital Budget and Production Guidance
Gulfport reaffirms its 2016 capital budget and production guidance.  The table below summarizes the Company’s full year 2016 guidance:

GULFPORT ENERGY CORPORATION
COMPANY GUIDANCE
       
  Year Ending
  12/31/2016
  Low   High
Forecasted Production      
Average Daily Gas Equivalent (MMcfepd) 695     730  
% Gas 87 %   91 %
% Liquids 13 %   9 %
       
Forecasted Realizations (before the effects of hedges) (1)      
Natural Gas (Differential to NYMEX Settled Price) - $/Mcf $ (0.61 )   $ (0.66 )
NGL ($ per gallon) $ 0.25     $ 0.29  
Oil (Differential to NYMEX WTI) $/Bbl $ (5.50 )   $ (6.50 )
       
Projected Operating Costs      
Lease Operating Expense - $/Mcfe $ 0.27     $ 0.30  
Production Taxes - $/Mcfe $ 0.06     $ 0.07  
Midstream Gathering and Processing - $/Mcfe $ 0.54     $ 0.64  
General and Administrative - $MM $ 50     $ 55  
       
Depreciation, Depletion and Amortization - $/Mcfe $ 0.95     $ 1.05  
       
  Total
Budgeted D&C Expenditures - In Millions:      
Operated $ 325     $ 375  
Non-Operated $ 90     $ 100  
Total Budgeted E&P Capital Expenditures $ 415     $ 475  
       
Budgeted Midstream Expenditures - In Millions: $ 20     $ 25  
       
Budgeted Leasehold Expenditures(2) - In Millions: $ 40     $ 50  
       
Total Capital Expenditures - In Millions: $ 475     $ 550  
       
Net Wells Drilled      
Utica - Operated 36     39  
Utica - Non-Operated 3     4  
Total 39     43  
       
Net Wells Turned-to-Sales      
Utica - Operated 37     41  
Utica - Non-Operated 6     7  
Total 43     48  
       
(1)  Differential forecasts assume strip pricing as of 10/27/2016. 
(2)  Net of proceeds from leasehold sales. 
       

Derivatives
Gulfport has hedged a portion of its expected production to lock in prices and returns that provide certainty of cash flow to execute on its capital plans. The table below sets forth the Company's hedging positions as of November 2, 2016.

GULFPORT ENERGY CORPORATION
COMMODITY DERIVATIVES - HEDGE POSITION AS OF NOVEMBER 2, 2016
(Unaudited)
               
  4Q2016            
Natural gas:              
Swap contracts (NYMEX)              
Volume (BBtupd) 540              
Price ($ per MMBtu) $ 3.14              
               
Basis Swap Contract  (Michcon)              
Volume (BBtupd) 40              
Differential ($ per MMBtu) $ 0.02              
               
Basis Swap Contract  (Tetco M2)              
Volume (BBtupd) 33              
Differential ($ per MMBtu) $ (0.59 )            
               
Swap contracts (LLS)              
Volume (Bblpd) 2,000              
Price ($ per Bbl) $ 51.10              
               
C3 Propane:              
Swap contracts (TET)              
Volume (Bblpd) 1,500              
Price ($ per Gal) $ 0.48              
               
               
               
  2016   2017   2018   2019
Natural gas:              
Swap contracts (NYMEX)              
Volume (BBtupd) 523     410     224     5  
Price ($ per MMBtu) $ 3.19     $ 3.09     $ 3.05     $ 3.37  
               
Swaption contracts (NYMEX)              
Volume (BBtupd) 6     120     5      
Price ($ per MMBtu) $ 3.25     $ 3.23     $ 2.91      
               
Basis Swap Contract  (Michcon)              
Volume (BBtupd) 47              
Differential ($ per MMBtu) $ 0.05              
               
               
Basis Swap Contract  (Tetco M2)              
Volume (BBtupd) 8     12          
Differential ($ per MMBtu) $ (0.59 )   $ (0.59 )        
               
Oil:              
Swap contracts (LLS)              
Volume (Bblpd) 1,751     992          
Price ($ per Bbl) $ 56.18     $ 51.10          
               
Swap contracts (WTI)              
Volume (Bblpd) 497              
Price ($ per Bbl) $ 61.40              
               
C3 Propane:              
Swap contracts (TET)              
Volume (Bblpd) 1,397              
Price ($ per Gal) $ 0.48              
                         

Presentation
An updated presentation has been posted to the Company’s website. The presentation can be found at www.gulfportenergy.com under the “Company Information” 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 hold a conference call on Thursday, November 3, 2016 at 8:00 a.m. CDT to discuss its third quarter of 2016 financial and operational results and to provide an update on the Company’s recent activities.

Interested parties may listen to the call via Gulfport’s website at www.gulfportenergy.com or by calling toll-free at 866-373-3408 or 412-902-1039 for international callers.  A replay of the call will be available for two weeks at 877-660-6853 or 201-612-7415 for international callers.  The replay passcode is 13622396.  The webcast will also be available for two weeks 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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.

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, 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; Gulfport’s ability to identify, complete and integrate acquisitions of properties and businesses; competitive actions by other oil and gas companies; changes in laws or regulations; 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 (loss) income, the most directly comparable GAAP financial measure, plus interest expense, income tax (benefit) expense, accretion expense, depreciation, depletion and amortization and impairment of oil and gas properties. Adjusted EBITDA is a non-GAAP financial measure equal to EBITDA less non-cash derivative (gain) loss, impairment of Grizzly equity investment, insurance proceeds and (income) loss from equity method investments. Cash flow from operating activities before changes in operating assets and liabilities is a non-GAAP financial measure equal to cash provided by operating activity before changes in operating assets and liabilities. Adjusted net income is a non-GAAP financial measure equal to pre-tax net loss less non-cash derivative (gain) loss, impairment of oil and gas properties, impairment of Grizzly equity investment, insurance proceeds and (income) loss from equity method investments plus tax benefit excluding adjustments. The Company has presented EBITDA and adjusted EBITDA because it uses these measures as an integral part of its internal reporting to evaluate its performance and the performance of its senior management. These measures are considered important indicators of the operational strength of the Company's business and eliminate the uneven effect of considerable amounts of non-cash depletion, depreciation of tangible assets and amortization of certain intangible assets. A limitation of these measures, however, is that they do 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 these measures provide useful information to its investors regarding its performance and overall results of operations. EBITDA, adjusted EBITDA, adjusted net income 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, adjusted EBITDA, adjusted net income 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, adjusted EBITDA, adjusted net income 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.

GULFPORT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
  Three months ended
September 30,
  Nine months ended
September 30,
  2016   2015   2016   2015
  (In thousands, except share data)
Revenues:              
Gas sales $ 155,185     $ 179,215     $ 228,419     $ 363,656  
Oil and condensate sales 23,507     41,747     61,161     111,712  
Natural gas liquid sales 15,000     9,431     32,914     43,396  
Other (expense) income (6 )   176     3     392  
  193,686     230,569     322,497     519,156  
Costs and expenses:              
Lease operating expenses 17,471     17,568     48,789     51,411  
Production taxes 3,525     3,593     9,492     11,163  
Midstream gathering and processing 45,475     42,166     122,476     100,451  
Depreciation, depletion and amortization 62,285     90,329     183,414     251,393  
Impairment of oil and gas properties 212,194     594,776     601,806     594,776  
General and administrative 10,467     11,001     32,941     31,315  
Accretion expense 269     212     777     594  
  351,686     759,645     999,695     1,041,103  
LOSS FROM OPERATIONS (158,000 )   (529,076 )   (677,198 )   (521,947 )
OTHER (INCOME) EXPENSE:              
Interest expense 12,787     14,124     44,892     34,906  
Interest income (337 )   (279 )   (822 )   (536 )
Insurance proceeds (3,750 )       (3,750 )    
(Income) loss from equity method investments (5,997 )   61,891     25,576     57,036  
  2,703     75,736     65,896     91,406  
LOSS BEFORE INCOME TAXES (160,703 )   (604,812 )   (743,094 )   (613,353 )
INCOME TAX BENEFIT (3,407 )   (216,603 )   (3,755 )   (219,338 )
NET LOSS $ (157,296 )   $ (388,209 )   $ (739,339 )   $ (394,015 )
NET LOSS PER COMMON SHARE:              
Basic $ (1.25 )   $ (3.59 )   $ (6.12 )   $ (4.06 )
Diluted $ (1.25 )   $ (3.59 )   $ (6.12 )   $ (4.06 )
Weighted average common shares outstanding—Basic 125,408,866     108,217,062     120,771,046     96,935,897  
Weighted average common shares outstanding—Diluted 125,408,866     108,217,062     120,771,046     96,935,897  


GULFPORT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
  September 30, 2016   December 31, 2015
  (In thousands, except share data)
Assets      
Current assets:      
Cash and cash equivalents $ 364,276     $ 112,974  
Accounts receivable—oil and gas 127,788     71,872  
Accounts receivable—related parties 96     16  
Prepaid expenses and other current assets 10,740     3,905  
Short-term derivative instruments 39,363     142,794  
Deferred tax asset 38      
Total current assets 542,301     331,561  
Property and equipment:      
Oil and natural gas properties, full-cost accounting, $1,723,821 and $1,817,701 excluded from amortization in 2016 and 2015, respectively 5,816,458     5,424,342  
Other property and equipment 54,460     33,171  
Accumulated depletion, depreciation, amortization and impairment (3,613,662 )   (2,829,110 )
Property and equipment, net 2,257,256     2,628,403  
Other assets:      
Equity investments 251,309     242,393  
Long-term derivative instruments 15,262     51,088  
Deferred tax asset 4,203     74,925  
Other assets 5,512     6,364  
Total other assets 276,286     374,770  
Total assets $ 3,075,843     $ 3,334,734  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable and accrued liabilities $ 304,341     $ 265,128  
Asset retirement obligation—current 75     75  
Short-term derivative instruments 37,220     437  
Deferred tax liability     50,697  
Current maturities of long-term debt 220     179  
Total current liabilities 341,856     316,516  
Long-term derivative instrument 14,907     6,935  
Asset retirement obligation—long-term 32,910     26,362  
Long-term debt, net of current maturities 961,050     946,084  
Total liabilities 1,350,723     1,295,897  
Commitments and contingencies      
Preferred stock, $.01 par value; 5,000,000 authorized, 30,000 authorized as redeemable 12% cumulative preferred stock, Series A; 0 issued and outstanding      
Stockholders’ equity:      
Common stock - $.01 par value, 200,000,000 authorized, 125,453,533 issued and outstanding at September 30, 2016 and 108,322,250 at December 31, 2015 1,253     1,082  
Paid-in capital 3,245,393     2,824,303  
Accumulated other comprehensive loss (50,816 )   (55,177 )
Retained deficit (1,470,710 )   (731,371 )
Total stockholders’ equity 1,725,120     2,038,837  
Total liabilities and stockholders’ equity $ 3,075,843     $ 3,334,734  


GULFPORT ENERGY CORPORATION
RECONCILIATION OF EBITDA AND CASH FLOW
(Unaudited)
               
  Three Months Ended September 30,   Nine Months Ended September 30,
  2016   2015   2016   2015
   (In thousands)    (In thousands)
               
Net loss $ (157,296 )   $ (388,209 )   $ (739,339 )   $ (394,015 )
Interest expense 12,787     14,124     44,892     34,906  
Income tax benefit (3,407 )   (216,603 )   (3,755 )   (219,338 )
Accretion expense 269     212     777     594  
Depreciation, depletion and amortization 62,285     90,329     183,414     251,393  
Impairment of oil and gas properties 212,194     594,776     601,806     594,776  
EBITDA $ 126,832     $ 94,629     $ 87,795     $ 268,316  
               
               
  Three Months Ended September 30,   Nine Months Ended September 30,
  2016   2015   2016   2015
   (In thousands)    (In thousands)
               
Cash provided by operating activity $ 102,551     $ 96,217     $ 245,275     $ 235,091  
Adjustments:              
  Changes in operating assets and liabilities 6,563     (13,385 )   35,521     10,518  
Operating Cash Flow $ 109,114     $ 82,832     $ 280,796     $ 245,609  


GULFPORT ENERGY CORPORATION
RECONCILIATION OF ADJUSTED EBITDA
(Unaudited)
       
   Three Months Ended   Nine Months Ended
  September 30, 2016   September 30, 2016
   (In thousands)
       
EBITDA $ 126,832     $ 87,795  
       
Adjustments:      
Non-cash derivative (gain) loss (22,357 )   184,013  
Impairment of Grizzly equity investment     23,069  
Insurance proceeds (3,750 )   (3,750 )
(Income) loss from equity method investments (5,997 )   2,507  
       
       
Adjusted EBITDA $ 94,728     $ 293,634  


GULFPORT ENERGY CORPORATION
RECONCILIATION OF ADJUSTED NET INCOME
(Unaudited)
       
   Three Months Ended   Nine Months Ended
  September 30, 2016   September 30, 2016
   (In thousands, except share data)
       
Pre-tax net loss excluding adjustments $ (160,703 )   $ (743,094 )
Adjustments:      
Non-cash derivative (gain) loss (22,357 )   184,013  
Impairment of oil and gas properties 212,194     601,806  
Impairment of Grizzly equity investment     23,069  
Insurance proceeds (3,750 )   (3,750 )
(Income) loss from equity method investments (5,997 )   2,507  
Pre-tax net income excluding adjustments $ 19,387     $ 64,551  
       
Tax benefit excluding adjustments (631 )   (979 )
       
Adjusted net income $ 20,018     $ 65,530  
       
Adjusted net income per common share:      
       
Basic $ 0.16     $ 0.54  
       
Diluted $ 0.16     $ 0.54  
       
Basic weighted average shares outstanding 125,408,866     120,771,046  
       
Diluted weighted average shares outstanding 125,408,866     120,771,046  

 

Investor & Media Contact:
Paul Heerwagen – Vice President, Corporate Development
pheerwagen@gulfportenergy.com
405-242-4888

Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4421

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Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Provides Third Quarter 2016 Operational Update and Schedules Third Quarter 2016 Financial and Operational Results Conference Call http://ir.gulfportenergy.com/news/detail/1294/gulfport-energy-corporation-provides-third-quarter-2016-operational-update-and-schedules-third-quarter-2016-financial-and-operational-results-conference-call Mon, 17 Oct 2016 08:00:00 -0400 http://ir.gulfportenergy.com/news/detail/1294/gulfport-energy-corporation-provides-third-quarter-2016-operational-update-and-schedules-third-quarter-2016-financial-and-operational-results-conference-call

OKLAHOMA CITY, Oct. 17, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport” or the “Company”) today provided an operational update for the quarter ended September 30, 2016 and scheduled its third quarter financial and operational results conference call.  Key information for the third quarter of 2016 includes the following:

  • Net production averaged 734.1 MMcfe per day, a 13% increase over the third quarter of 2015 and a 10% increase versus the second quarter of 2016, exceeding Gulfport’s previously provided third quarter of 2016 guidance of 685 MMcfe per day to 705 MMcfe per day.
  • Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $2.10 per Mcf, a $0.71 per Mcf differential to the average trade month NYMEX settled price.
  • Realized oil price, before the impact of derivatives and including transportation costs, averaged $41.81 per barrel, a $3.13 per barrel differential to the average WTI oil price.
  • Realized natural gas liquids price, before the impact of derivatives and including transportation costs, averaged $13.98 per barrel, or $0.33 per gallon.

Third Quarter Production and Realized Prices

Gulfport’s net daily production for the third quarter of 2016 averaged approximately 734.1 MMcfe per day. For the third quarter of 2016, Gulfport’s net daily production mix was comprised of approximately 86% natural gas, 9% natural gas liquids and 5% oil.

Gulfport’s realized prices for the third quarter of 2016 were $2.67 per Mcf of natural gas, $45.09 per barrel of oil and $0.34 per gallon of NGL, resulting in a total equivalent price of $2.87 per Mcfe. Gulfport's realized prices for the third quarter of 2016 include an aggregate non-cash derivative gain of $22.4 million. Before the impact of derivatives, realized prices for the third quarter of 2016, including transportation costs, were $2.10 per Mcf of natural gas, $41.81 per barrel of oil and $0.33 per gallon of NGL, for a total equivalent price of $2.35 per Mcfe.

GULFPORT ENERGY CORPORATION
PRODUCTION SCHEDULE
(Unaudited)
                   
      Three Months Ended    Nine Months Ended 
       September 30,     September 30, 
Production Volumes:       2016       2015       2016       2015  
                   
Natural gas (MMcf)         58,151         48,124         164,233         107,208  
Oil (MBbls)         521         732         1,675         2,225  
NGL (MGal)         43,837         49,094         117,217         142,093  
Gas equivalent (MMcfe)         67,541         59,530         191,026         140,856  
Gas equivalent (Mcfe per day)       734,144         647,062         697,174         515,956  
                   
Average Realized Prices                  
(before the impact of derivatives):              
                   
Natural gas (per Mcf)     $   2.10     $   2.07     $   1.66     $   2.29  
Oil (per Bbl)     $   41.81     $   40.53     $   36.31     $   44.08  
NGL (per Gal)     $   0.33     $   0.19     $   0.29     $   0.31  
Gas equivalent (per Mcfe)     $   2.35     $   2.33     $   1.92     $   2.75  
                   
Average Realized Prices:                  
(including cash-settlement of derivatives and excluding non-cash derivative gain or loss):    
                   
Natural gas (per Mcf)     $   2.31     $   2.62     $   2.44     $   2.93  
Oil (per Bbl)     $   43.43     $   44.84     $   42.73     $   46.14  
NGL (per Gal)     $   0.33     $   0.19     $   0.29     $   0.31  
Gas equivalent (per Mcfe)     $   2.54     $   2.83     $   2.65     $   3.26  
                   
Average Realized Prices:                  
                   
Natural gas (per Mcf)     $   2.67     $   3.72     $   1.39     $   3.39  
Oil (per Bbl)     $   45.09     $   57.02     $   36.52     $   50.21  
NGL (per Gal)     $   0.34     $   0.19     $   0.28     $   0.31  
Gas equivalent (per Mcfe)     $   2.87     $   3.87     $   1.69     $   3.68  
                   

Conference Call 

Gulfport will hold a conference call on Thursday, November 3, 2016 at 8:00 a.m. CDT to discuss its third quarter of 2016 financial and operational results and to provide an update on the Company’s recent activities. Gulfport's third quarter of 2016 earnings are scheduled to be released after the market close on Wednesday, November 2, 2016.    

Interested parties may listen to the call via Gulfport’s website at www.gulfportenergy.com or by calling toll-free at 866-373-3408 or 412-902-1039 for international callers.  A replay of the call will be available for two weeks at 877-660-6853 or 201-612-7415 for international callers.  The replay passcode is 13622396.  The webcast will also be available for two weeks 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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.

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 the construction of gas gathering and water service facilities pursuant to the JV with Rice), 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, including its JV with Rice; Gulfport’s ability to identify, complete and integrate acquisitions of properties and businesses; competitive actions by other oil and gas companies; changes in laws or regulations; 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.

Investor & Media Contact:
Paul Heerwagen – Vice President, Corporate Development 
pheerwagen@gulfportenergy.com
405-242-4888

Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4421

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Announces the Expiration of the Tender Offer for Any and All of its 7.750% Senior Notes Due 2020 http://ir.gulfportenergy.com/news/detail/1293/gulfport-energy-corporation-announces-the-expiration-of-the-tender-offer-for-any-and-all-of-its-7-750-senior-notes-due-2020 Thu, 13 Oct 2016 18:45:00 -0400 http://ir.gulfportenergy.com/news/detail/1293/gulfport-energy-corporation-announces-the-expiration-of-the-tender-offer-for-any-and-all-of-its-7-750-senior-notes-due-2020

OKLAHOMA CITY, Oct. 13, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport”) today announced that its previously announced cash tender offer to purchase any and all of the outstanding aggregate principal amount of its 7.750% Senior Notes due 2020 (the “Notes”) expired at 5:00 p.m., New York City time, on October 13, 2016 (the “Expiration Time”). As of the Expiration Time, $391,036,000 aggregate principal amount of the Notes (65.17%) were validly tendered, which excludes $17,712,000 aggregate principal amount of the Notes that remain subject to guaranteed delivery procedures. Gulfport expects to accept for payment all Notes validly tendered and not validly withdrawn in the tender offer and expects to make payment for the Notes on October 14, 2016. Pursuant to the terms of the tender offer, Notes not tendered in the tender offer will remain outstanding. Gulfport previously delivered a conditional redemption notice, dated October 6, 2016, for any and all outstanding Notes pursuant to the terms of the indenture, as amended and supplemented, governing the Notes, and all remaining outstanding Notes will be redeemed (subject to the terms thereof) on November 5, 2016.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.

This document contains forward-looking statements that involve risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include: adverse conditions in the capital markets and the failure of holders to participate in the tender offer; changes in federal or state securities laws; and changes in our business and financial condition. Gulfport assumes no obligation to update forward-looking information contained in this press release.

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.

Forward Looking Statements
Certain statements included in this press release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the consummation of the proposed transactions described above. Gulfport cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Gulfport cannot assure you that the proposed transactions (including the proposed debt financing transaction) described above will be consummated on the terms Gulfport currently contemplates, if at all. Information concerning these and other factors can be found in Gulfport’s filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.

Any forward-looking statements made in this press release speak only as of the date of this release and, except as required by law, Gulfport undertakes no obligation to update any forward-looking statement contained in this press release, even if Gulfport’s expectations or any related events, conditions or circumstances change. Gulfport is not responsible for any changes made to this release by wire or Internet services.

 

Investor & Media Contact:
Paul Heerwagen – Vice President, Corporate Development 
pheerwagen@gulfportenergy.com
405-242-4888

Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4421

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Prices $650 Million Offering of 6.000% Senior Notes to Repurchase its Outstanding 7.750% Senior Notes Due 2020 http://ir.gulfportenergy.com/news/detail/1292/gulfport-energy-corporation-prices-650-million-offering-of-6-000-senior-notes-to-repurchase-its-outstanding-7-750-senior-notes-due-2020 Thu, 06 Oct 2016 15:41:00 -0400 http://ir.gulfportenergy.com/news/detail/1292/gulfport-energy-corporation-prices-650-million-offering-of-6-000-senior-notes-to-repurchase-its-outstanding-7-750-senior-notes-due-2020

OKLAHOMA CITY, Oct. 06, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport”) today announced that it has priced at par an offering of $650 million aggregate principal amount of its 6.000% Senior Notes due 2024 (the “Notes”). The Notes are being sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be issued under a new indenture and will rank equally with Gulfport’s previously issued senior notes and other senior indebtedness. The Notes offering is expected to close on October 14, 2016, subject to customary closing conditions. Net proceeds to Gulfport from the sale of the Notes will be approximately $640 million. Gulfport expects to use the net proceeds of the Notes offering (i) to repurchase all of its outstanding 7.750% Senior Notes due 2020 pursuant to a tender offer, to pay fees and expenses thereof and to redeem any of the 7.750% Senior Notes due 2020 that remain outstanding thereafter and (ii) for general corporate purposes, which may include the funding of a portion of its capital development plans.

The Notes will be general unsecured senior obligations of Gulfport, will be guaranteed on a senior unsecured basis by certain of Gulfport’s subsidiaries and will pay interest semi-annually.

The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.

Forward Looking Statements
Certain statements included in this press release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the consummation of the transaction described above. Gulfport cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Gulfport cannot assure you that the proposed transaction described above will be consummated on the terms Gulfport currently contemplates, if at all. Information concerning these and other factors can be found in Gulfport’s filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.

Any forward-looking statements made in this press release speak only as of the date of this release and, except as required by law, Gulfport undertakes no obligation to update any forward-looking statement contained in this press release, even if Gulfport’s expectations or any related events, conditions or circumstances change. Gulfport is not responsible for any changes made to this release by wire or Internet services.

Investor & Media Contact:
Paul Heerwagen – Vice President, Corporate Development 
pheerwagen@gulfportenergy.com
405-242-4888

Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4421

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Launches Tender Offer for Any and All of its 7.750% Senior Notes Due 2020 http://ir.gulfportenergy.com/news/detail/1291/gulfport-energy-corporation-launches-tender-offer-for-any-and-all-of-its-7-750-senior-notes-due-2020 Thu, 06 Oct 2016 08:31:00 -0400 http://ir.gulfportenergy.com/news/detail/1291/gulfport-energy-corporation-launches-tender-offer-for-any-and-all-of-its-7-750-senior-notes-due-2020

OKLAHOMA CITY, Oct. 06, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport”) today announced that it has commenced a cash tender offer to purchase any and all of its 7.750% Senior Notes due 2020. As of October 5, 2016, Gulfport had $600 million aggregate principal amount of the notes outstanding. The tender offer is being made pursuant to an offer to purchase and a related letter of transmittal, each dated as of October 6, 2016, and a notice of guaranteed delivery. The tender offer will expire at 5:00 p.m., New York City time, on October 13, 2016, unless extended (the “Expiration Time”). Tendered notes may be withdrawn at any time before the Expiration Time unless extended.

Holders of notes that are validly tendered and accepted at or prior to the Expiration Time, or who deliver to the depositary and information agent a properly completed and duly executed Notice of Guaranteed Delivery and subsequently deliver such notes, each in accordance with the instructions described in the Offer to Purchase, will receive total cash consideration of $1,042.00 per $1,000 principal amount of notes, plus any accrued and unpaid interest up to, but not including, the settlement date, which is expected to occur on October 14, 2016.

The tender offer is contingent upon, among other things, Gulfport’s successful completion of a proposed debt financing transaction, the proceeds of which will be sufficient to fund the purchase of all outstanding notes and to pay all fees and expenses associated with such financing and the tender offer. The tender offer is not conditioned on any minimum amount of notes being tendered. Gulfport may amend, extend or terminate the tender offer, in its sole discretion. The Company currently intends to redeem any and all notes that are not validly tendered and purchased by the Company in the tender offer and that remain outstanding.

The tender offer is being made pursuant to the terms and conditions contained in the Offer to Purchase, related Letter of Transmittal and Notice of Guaranteed Delivery, copies of which may be obtained from D.F. King & Co., Inc., the information agent for the offer, by telephone at (800) 864-1460 (toll-free) or for banks and brokers, at (212) 269-5550 (Banks and Brokers only), at the following web address: www.dfking.com/gpor.

Persons with questions regarding the tender offer should contact the following dealer manager: Credit Suisse Securities (USA) LLC, by telephone at (800) 820-1653 (U.S. toll free) or (212) 538-2147 (call collect).

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.

Forward Looking Statements
Certain statements included in this press release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the consummation of the proposed transactions described above. Gulfport cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Gulfport cannot assure you that the proposed transactions (including the proposed debt financing transaction) described above will be consummated on the terms Gulfport currently contemplates, if at all. Information concerning these and other factors can be found in Gulfport’s filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.

Any forward-looking statements made in this press release speak only as of the date of this release and, except as required by law, Gulfport undertakes no obligation to update any forward-looking statement contained in this press release, even if Gulfport’s expectations or any related events, conditions or circumstances change. Gulfport is not responsible for any changes made to this release by wire or Internet services.

Investor & Media Contact:
Paul Heerwagen – Vice President, Corporate Development
pheerwagen@gulfportenergy.com
405-242-4888

Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4421

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Launches Proposed $650 Million Offering of Senior Notes to Repurchase its Outstanding 7.750% Senior Notes Due 2020 http://ir.gulfportenergy.com/news/detail/1290/gulfport-energy-corporation-launches-proposed-650-million-offering-of-senior-notes-to-repurchase-its-outstanding-7-750-senior-notes-due-2020 Thu, 06 Oct 2016 07:23:00 -0400 http://ir.gulfportenergy.com/news/detail/1290/gulfport-energy-corporation-launches-proposed-650-million-offering-of-senior-notes-to-repurchase-its-outstanding-7-750-senior-notes-due-2020

OKLAHOMA CITY, Oct. 06, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport”) today announced that it proposes to offer, subject to market conditions and other factors, $650 million aggregate principal amount of its senior notes due 2024 (the “Notes”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be issued under a new indenture and will rank equally with Gulfport’s previously issued senior notes and other senior indebtedness. Gulfport expects to use the net proceeds of the Notes offering (i) to repurchase all of its outstanding 7.750% Senior Notes due 2020 pursuant to a tender offer, to pay fees and expenses thereof and to redeem any of the 7.750% Senior Notes due 2020 that remain outstanding thereafter and (ii) for general corporate purposes, which may include the funding of a portion of its capital development plans.

The Notes will be general unsecured senior obligations of Gulfport, will be guaranteed on a senior unsecured basis by certain of Gulfport’s subsidiaries and will pay interest semi-annually.

The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.

Forward Looking Statements
Certain statements included in this press release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the consummation of the transaction described above. Gulfport cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Gulfport cannot assure you that the proposed transaction described above will be consummated on the terms Gulfport currently contemplates, if at all. Information concerning these and other factors can be found in Gulfport’s filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov

Any forward-looking statements made in this press release speak only as of the date of this release and, except as required by law, Gulfport undertakes no obligation to update any forward-looking statement contained in this press release, even if Gulfport’s expectations or any related events, conditions or circumstances change. Gulfport is not responsible for any changes made to this release by wire or Internet services.

Investor & Media Contact:
Paul Heerwagen – Vice President, Corporate Development 
pheerwagen@gulfportenergy.com
405-242-4888

Jessica Wills – Manager, Investor Relations and Research
jwills@gulfportenergy.com
405-242-4421

Primary Logo

Source: Gulfport Energy Corp ]]>
Gulfport Energy Corporation Reports Second Quarter 2016 Results http://ir.gulfportenergy.com/news/detail/1289/gulfport-energy-corporation-reports-second-quarter-2016-results Wed, 03 Aug 2016 16:00:00 -0400 http://ir.gulfportenergy.com/news/detail/1289/gulfport-energy-corporation-reports-second-quarter-2016-results

OKLAHOMA CITY, Aug. 03, 2016 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ:GPOR) (“Gulfport” or the “Company”) today reported financial and operational results for the quarter ended June 30, 2016 and provided an update on its 2016 activities.  Key information for the second quarter of 2016 includes the following:

  • Net production averaged 664.7 MMcfe per day.
  • Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $1.44 per Mcf, a $0.51 per Mcf differential to the average trade month NYMEX settled price.
  • Realized oil price, before the impact of derivatives and including transportation costs, averaged $42.00 per barrel, a $3.60 per barrel differential to the average WTI oil price.
  • Realized natural gas liquids price, before the impact of derivatives and including transportation costs, averaged $14.04 per barrel, or $0.33 per gallon.
  • Net loss of $339.8 million, or $2.71 per diluted share.
  • Adjusted net income (as defined and reconciled below) of $30.4 million, or $0.24 per diluted share.
  • Adjusted EBITDA (as defined and reconciled below) of $102.2 million.
  • Reduced unit lease operating expense for the second quarter of 2016 by 38% to $0.24 per Mcfe from $0.39 per Mcfe in the second quarter of 2015.
  • Reduced unit midstream gathering and processing expense for the second quarter of 2016 by 15% to $0.65 per Mcfe from $0.76 per Mcfe in the second quarter of 2015.
  • Expect to drill an incremental 17 to 18 net wells and turn-to-sales an additional 10 to 11 net wells on its operated Utica acreage during 2016 and now budget 2016 total capital expenditures to be $475 to $550 million.

Michael G. Moore, Chief Executive Officer, commented, “With an improving fundamental outlook for natural gas and the recent strengthening in commodity prices, our strong financial position has provided us with the ability to react quickly and increase our activity within the basin. While our previous guidance contemplated a reduction in our program throughout 2016, we now plan to increase our activity in the near-term to take advantage of an improving natural gas market as we enter 2017, providing us leverage at a point in time when we see significant potential for strength in the curve."   

"When you combine constructive natural gas fundamentals with our high quality asset base, we would expect to further increase our development pace during 2017, above and beyond the three-rig program we have running today. With the natural gas strip above $3.00, we believe our financial position comfortably supports a six-rig program. Based on our current estimates, we anticipate this level of activity would result in year-over-year growth of approximately 20 to 25 percent while spending $675 to $725 million on drilling and completion capex. As we move through the remainder of 2016, we will continue to monitor the pricing environment and refine our views as we consider the appropriate level of activities for 2017.  Should natural gas prices improve further, we would look to expand our rig count beyond a six-rig scenario.  Assuming an eight-rig program, we estimate this level of activity would result in year-over-year growth in 2017 of approximately 25 to 30 percent while spending $850 to $900 million in drilling and completion capex during 2017. These scenarios assume all incremental activity would be added on January 1, 2017, which, due to cycle times, would result in less than a full-year impact to production during 2017. Looking into 2018, we estimate a six-rig program in 2017 would generate nearly 35 percent year-over-growth in 2018 over 2017 and an eight-rig program during 2017 would generate close to 50 percent growth in 2018 over 2017,” stated Mr. Moore.

Second Quarter Financial Results
For the second quarter of 2016, Gulfport reported a net loss of $339.8 million, or $2.71 per diluted share, on oil and natural gas revenues of negative $28.2 million.  For the second quarter of 2016, EBITDA (as defined and reconciled below) was negative $97.3 million and cash flow from operating activities before changes in operating assets and liabilities (as defined and reconciled below) was $88.5 million.  Gulfport’s GAAP net loss for the second quarter of 2016 includes the following items:  

  • Aggregate non-cash derivative loss of $198.7 million.
  • Aggregate loss of $170.6 million in connection with the impairment of oil and natural gas properties.
  • Aggregate loss of $0.8 million in connection with Gulfport's equity interests in certain equity investments.
  • Associated adjusted taxable benefit of $0.2 million.

Excluding the effect of these items, Gulfport’s financial results for the second quarter of 2016 would have been as follows:

  • Adjusted oil and natural gas revenues of $170.5 million.
  • Adjusted net income of $30.4 million, or $0.24 per diluted share.
  • Adjusted EBITDA of $102.2 million.

Year-To-Date 2016 Financial Results
For the six-month period ended June 30, 2016, Gulfport reported a net loss of $582.0 million, or $4.91 per diluted share, on oil and natural gas revenues of $128.8 million. For the six-month period ended June 30, 2016, EBITDA (as defined and reconciled below) was negative $39.0 million and cash flow from operating activities before changes in operating assets and liabilities (as defined and reconciled below) was $171.7 million.  Gulfport’s GAAP net loss for the six-month period ended June 30, 2016 includes the following items:  

  • Aggregate non-cash derivative loss of $206.4 million.
  • Aggregate loss of $389.6 million in connection with the impairment of oil and natural gas properties.
  • Aggregate loss of $23.1 million in connection with the impairment associated with Gulfport’s equity interest in Grizzly Oil Sands.
  • Aggregate loss of $8.5 million in connection with Gulfport's equity interests in certain equity investments.
  • Associated adjusted taxable benefit of $0.3 million.

Excluding the effect of these items, Gulfport’s financial results for the six-month period ended June 30, 2016 would have been as follows:

  • Adjusted oil and natural gas revenues of $335.2 million.
  • Adjusted net income of $45.5 million, or $0.38 per diluted share.
  • Adjusted EBITDA of $198.9 million.

Production and Realized Prices
Gulfport’s net daily production for the second quarter of 2016 averaged approximately 664.7 MMcfe per day. For the second quarter of 2016, Gulfport’s net daily production mix was comprised of approximately 87% natural gas, 7% natural gas liquids and 6% oil. As previously disclosed, Gulfport idled a completion crew during the first quarter of 2016. This caused Gulfport’s 5.4 net second quarter tie-in-lines to be weighted to the last week of June, effectively resulting in no incremental operated production being turned-to-sales during the second quarter.

Gulfport’s realized prices for the second quarter of 2016 were ($1.10) per Mcf of natural gas, $37.23 per barrel of oil and $0.30 per gallon of NGL, resulting in a total equivalent price of ($0.47) per Mcfe. Gulfport's realized prices for the second quarter of 2016 include an aggregate non-cash derivative loss of $198.7 million. Before the impact of derivatives, realized prices for the second quarter of 2016, including transportation costs, were $1.44 per Mcf of natural gas, $42.00 per barrel of oil and $0.33 per gallon of NGL, for a total equivalent price of $1.81 per Mcfe.

 
GULFPORT ENERGY CORPORATION
PRODUCTION SCHEDULE
(Unaudited)
                   
      Three Months Ended    Six Months Ended 
       June 30,     June 30, 
Production Volumes:       2016       2015       2016       2015  
                   
Natural gas (MMcf)       52,775       33,120       106,082       59,085  
Oil (MBbls)       551       727       1,153       1,493  
NGL (MGal)       30,853       39,521       73,380       92,999  
Gas equivalent (MMcfe)       60,492       43,128       123,485       81,326  
Gas equivalent (Mcfe per day)     664,743       473,935       678,487       449,317  
                   
Average Realized Prices                  
(before the impact of derivatives):              
                   
Natural gas (per Mcf)     $ 1.44     $ 2.23     $ 1.41     $ 2.47  
Oil (per Bbl)     $ 42.00     $ 50.15     $ 33.82     $ 45.82  
NGL (per Gal)     $ 0.33     $ 0.30     $ 0.27     $ 0.37  
Gas equivalent (per Mcfe)     $ 1.81     $ 2.84     $ 1.69     $ 3.05  
                   
Average Realized Prices:                  
(including cash-settlement of derivatives and excluding non-cash derivative gain or loss):    
                   
Natural gas (per Mcf)     $ 2.53     $ 2.97     $ 2.51     $ 3.18  
Oil (per Bbl)     $ 48.49     $ 50.14     $ 42.42     $ 46.78  
NGL (per Gal)     $ 0.33     $ 0.30     $ 0.27     $ 0.37  
Gas equivalent (per Mcfe)     $ 2.82     $ 3.41     $ 2.71     $ 3.59  
                   
Average Realized Prices:                  
                   
Natural gas (per Mcf)     $ (1.10 )   $ 1.99     $ 0.69     $ 3.12  
Oil (per Bbl)     $ 37.23     $ 47.40     $ 32.65     $ 46.87  
NGL (per Gal)     $ 0.30     $ 0.30     $ 0.24     $ 0.37  
Gas equivalent (per Mcfe)     $ (0.47 )   $ 2.60     $ 1.04     $ 3.55  
                   

Gulfport is experiencing higher than anticipated gathering line pressures in its dry gas development area of the play which is having a temporary, near-term effect on its production levels.  Gulfport and its third-party midstream providers have developed a long-term, multi-phase compression plan for the optimization of its gathering systems and have begun implementing this plan. Over the next several months, Gulfport plans to phase-in pad level compression on a select group of wells. In addition, Gulfport currently expects to begin phasing-in field level compression by year-end 2016. Once operational, the debottlenecking of these surface restrictions is forecasted to result in an uplift to current production and an increase in our production levels as we enter 2017.

Gulfport’s estimated July 2016 net production averaged approximately 620 MMcfe per day. For the third quarter of 2016, Gulfport currently estimates that its net production will range from 685 MMcfe per day to 705 MMcfe per day and full-year 2016 net production guidance remains unchanged at 695 MMcfe per day to 730 MMcfe per day.

2016 Financial Position and Liquidity
For the six-month period ended June 30, 2016, Gulfport’s drilling and completion capital expenditures totaled $230.7 million, midstream capital expenditures totaled $3.0 million and leasehold capital expenditures totaled $32.5 million. In addition, for the six-month period ended June 30, 2016, Gulfport invested approximately $13.7 million in Grizzly Oil Sands ULC, a company in which Gulfport holds an approximate 25% equity interest.

As of June 30, 2016, Gulfport had cash on hand of approximately $396.4 million. In addition, as of June 30, 2016, Gulfport’s revolving credit facility of $700 million was undrawn and had $494.2 million available for future borrowing after giving effect to outstanding letters of credit totaling $205.8 million.

Operational Update
Utica Shale
In the Utica Shale, Gulfport spud 12 gross and net wells during the second quarter of 2016. In addition, Gulfport turned-to-sales 7 gross (5.4 net) wells during the last week of June 2016 prior to quarter-end. During the second quarter of 2016, net production from Gulfport’s Utica acreage averaged approximately 642.3 MMcfe per day, a decrease of 4% over the first quarter of 2016 and an increase of 40% over the second quarter of 2015.

At present, Gulfport has three operated horizontal rigs drilling in the play and has contracted a fourth horizontal drilling rig to begin operations in September 2016. In addition, Gulfport has elected to add incremental completion activities during the fourth quarter of 2016. Including this incremental activity, Gulfport has now budgeted to drill approximately 42 to 46 gross (36 to 39 net) horizontal wells and turn-to-sales 50 to 56 gross (37 to 41 net) horizontal wells in the Utica.

Southern Louisiana
At its West Cote Blanche Bay and Hackberry fields, Gulfport performed 18 recompletions at the fields during the second quarter of 2016. During the second quarter, net production at the fields totaled approximately 21.5 MMcfe per day. 

2016 Capital Budget and Production Guidance
For 2016, Gulfport now estimates total capital expenditures will be in the range of $475 million to $550 million. Gulfport continues to estimate that 2016 average daily production will be in the range of 695 MMcfe to 730 MMcfe per day.

Mr. Moore commented, “We have updated our 2016 budget to include our proposed incremental activity of an additional 17 to 18 net wells drilled and an additional 10 to 11 net wells turned-to-sales on our operated acreage in the Utica during 2016. Our heightened focus on cost reductions and efficiency gains continues to yield positive results, providing a partial offset to this additional capital spend. Although the timing of our incremental activity is expected to have little impact on full-year 2016 results, we believe the buildup in momentum during the second half of the year will provide a meaningful impact on 2017 and beyond.”

The table below summarizes the Company’s full-year 2016 guidance:

   
GULFPORT ENERGY CORPORATION  
COMPANY GUIDANCE  
           
    Year Ending  
    12/31/2016  
    Low   High  
Forecasted Production         
  Average Daily Gas Equivalent (MMcfepd)   695       730    
  % Gas   87 %     91 %  
  % Liquids   13 %     9 %  
           
Forecasted Realizations (before the effects of hedges) (1)        
  Natural Gas (Differential to NYMEX Settled Price) - $/Mcf ($ 0.61 )   ($ 0.66 )  
  NGL ($ per gallon) $ 0.25     $ 0.29    
  Oil (Differential to NYMEX WTI) $/Bbl ($ 5.50 )   ($ 6.50 )  
           
Projected Operating Costs         
  Lease Operating Expense - $/Mcfe $ 0.27     $ 0.30    
  Production Taxes - $/Mcfe $ 0.06     $ 0.07    
  Midstream Gathering and Processing - $/Mcfe $ 0.54     $ 0.64    
  General and Administrative - $MM $ 50     $ 55    
           
Depreciation, Depletion and Amortization - $/Mcfe $ 0.95     $ 1.05    
           
    Total   
Budgeted D&C Expenditures - In Millions:         
  Operated $ 325     $ 375    
  Non-Operated $ 90     $ 100    
  Total Budgeted E&P Capital Expenditures $ 415     $ 475    
           
Budgeted Midstream Expenditures - In Millions:  $ 20     $ 25    
           
Budgeted Leasehold Expenditures - In Millions:  $ 40     $ 50    
           
Total Capital Expenditures - In Millions:  $ 475     $ 550    
           
Net Wells Drilled         
  Utica - Operated   36       39    
  Utica - Non-Operated   3       4    
  Total   39       43    
           
Net Wells Turned-to-Sales        
  Utica - Operated   37       41    
  Utica - Non-Operated   6       7    
  Total   43       48    
           
(1)  Differential forecasts assume strip pricing as of 7/29/2016.        
           

Derivatives
Gulfport has hedged a portion of its expected production to lock in prices and returns that provide certainty of cash flow to execute on its capital plans. The table below sets forth the Company's hedging positions as of August 3, 2016. 

     
  GULFPORT ENERGY CORPORATION  
  COMMODITY DERIVATIVES - HEDGE POSITION AS OF AUGUST 3, 2016  
  (Unaudited)  
                         
           
          3Q2016   4Q2016          
  Natural gas:                    
    Swap contracts (NYMEX)                  
    Volume (BBtupd)     557       540            
    Price ($ per MMBtu)   $ 3.05     $ 3.14            
                         
    Swaption contracts (NYMEX)                  
    Volume (BBtupd)     -       -            
    Price ($ per MMBtu)   $ -     $ -            
                         
    Basis Swap Contract  (Michcon)                  
    Volume (BBtupd)     40       40            
    Differential ($ per MMBtu)   $ 0.02     $ 0.02            
                         
    Basis Swap Contract  (Tetco M2)                  
    Volume (BBtupd)     -       33            
    Differential ($ per MMBtu)   $ -     $ (0.59 )          
  Oil:                      
    Swap contracts (LLS)                  
    Volume (Bblpd)       2,000       2,000            
    Price ($ per Bbl)   $ 51.10     $ 51.10            
                         
  C3 Propane:                    
    Swap contracts (TET)                  
    Volume (Bblpd)       1,500       1,500            
    Price ($ per Gal)     $ 0.48     $ 0.48            
                         
                         
                         
            2016       2017       2018       2019    
  Natural gas:                    
    Swap contracts (NYMEX)                  
    Volume (BBtupd)     523       366       180       5    
    Price ($ per MMBtu)   $ 3.19     $ 3.08     $ 3.03     $ 3.37    
                         
    Swaption contracts (NYMEX)                  
    Volume (BBtupd)     6       120       5       -    
    Price ($ per MMBtu)   $ 3.25     $ 3.23     $ 2.91     $ -    
                         
    Basis Swap Contract  (Michcon)                  
    Volume (BBtupd)     47       -       -       -    
    Differential ($ per MMBtu)   $ 0.05     $ -     $ -     $ -    
                         
                         
    Basis Swap Contract  (Tetco M2)                  
    Volume (BBtupd)     8       12       -       -    
    Differential ($ per MMBtu)   $ (0.59 )   $ (0.59 )   $ -     $ -    
                         
  Oil:                      
    Swap contracts (LLS)                  
    Volume (Bblpd)       1,751       992       -       -    
    Price ($ per Bbl)   $ 56.18     $ 51.10     $ -     $ -    
                         
    Swap contracts (WTI)                  
    Volume (Bblpd)       497       -       -       -    
    Price ($ per Bbl)   $ 61.40     $ -     $ -     $ -    
                         
  C3 Propane:                    
    Swap contracts (TET)                  
    Volume (Bblpd)       1,397       -       -       -    
    Price ($ per Gal)     $ 0.48     $ -     $ -     $ -    
                         

Presentation
An updated presentation has been posted to the Company’s website. The presentation can be found at www.gulfportenergy.com under the “Company Information” 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 hold a conference call on Thursday, August 4, 2016 at 8:00 a.m. CDT to discuss its second quarter of 2016 financial and operational results and to provide an update on the Company’s recent activities.

Interested parties may listen to the call via Gulfport’s website at www.gulfportenergy.com or by calling toll-free at 866-373-3408 or 412-902-1039 for international callers.  The passcode for the call is 13640897.  A replay of the call will be available for two weeks at 877-660-6853 or 201-612-7415 for international callers.  The replay passcode is 13640897.  The webcast will also be available for two weeks 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 in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.

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, 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; Gulfport’s ability to identify, complete and integrate acquisitions of properties and businesses; competitive actions by other oil and gas companies; changes in laws or regulations; 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 (loss) income, the most directly comparable GAAP financial measure, plus interest expense, income tax (benefit) expense, accretion expense, depreciation, depletion and amortization and impairment of oil and gas properties. Adjusted EBITDA is a non-GAAP financial measure equal to EBITDA less non-cash derivative loss, loss from impairment of Grizzly equity investment and loss from equity method investments. Cash flow from operating activities before changes in operating assets and liabilities is a non-GAAP financial measure equal to cash provided by operating activity before changes in operating assets and liabilities. Adjusted net income is a non-GAAP financial measure equal to pre-tax net loss less non-cash derivative loss, loss from impairment of oil and gas properties, impairment of Grizzly equity investment and loss from equity method investments plus tax benefit excluding adjustments. The Company has presented EBITDA and adjusted EBITDA because it uses these measures as an integral part of its internal reporting to evaluate its performance and the performance of its senior management. These measures are considered important indicators of the operational strength of the Company's business and eliminate the uneven effect of considerable amounts of non-cash depletion, depreciation of tangible assets and amortization of certain intangible assets. A limitation of these measures, however, is that they do 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 these measures provide useful information to its investors regarding its performance and overall results of operations. EBITDA, adjusted EBITDA, adjusted net income 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, adjusted EBITDA, adjusted net income 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, adjusted EBITDA, adjusted net income 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.

   
GULFPORT ENERGY CORPORATION  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)  
           
                     
       Three Months Ended June 30,     Six Months Ended June 30,   
        2016       2015       2016       2015    
      (In thousands, except share data)  
Revenues:                
  Gas sales $ (57,860 )   $ 65,871     $ 73,234     $ 184,441    
  Oil and condensate sales   20,533       34,465       37,654       69,965    
  Natural gas liquids sales   9,168       11,958       17,914       33,965    
  Other income (expense)   7       (24 )     9       216    
                     
        (28,152 )     112,270       128,811       288,587    
                     
Costs and expenses:                
  Lease operating expenses   14,661       16,863       31,318       33,843    
  Production taxes   2,856       3,285       5,967       7,570    
  Midstream gathering and processing   39,349       32,904       77,001       58,285    
  Depreciation, depletion and amortization   55,652       71,155       121,129       161,064    
  Impairment of oil and gas properties   170,621       -       389,612       -    
  General and administrative   11,854       9,515       22,474       20,314    
  Accretion expense   261       192       508       382    
            -            
        295,254       133,914       648,009       281,458