Earnings Alert: Gulfport Energy Corporation (NASDAQ: GPOR)

On Tuesday, Shares of Gulfport Energy Corporation (NASDAQ: GPOR) showed the bearish trend with a lower momentum of -0.93% to $7.43. The company traded total volume of 3,312,365 shares as contrast to its average volume of 3.55M shares. The company has a market value of $1.19B and about 160.70M shares outstanding.

Gulfport Energy Corporation (GPOR) recently stated financial results for the quarter and year ended December 31, 2018.

Financial Results:

For the fourth quarter of 2018, Gulfport stated net income of $134.00M, or $0.78 per diluted share, on oil and natural gas revenues of $416.00M.  For the fourth quarter of 2018, EBITDA was $303.20M and cash flow from operating activities before changes in operating assets and liabilities was $218.10M.  Gulfport’s GAAP net income for the fourth quarter of 2018 includes the following items:

  • Aggregate non-cash derivative gain of $41.30M.
  • Aggregate loss of $0.20M in connection with a litigation settlement.
  • Aggregate gain of $14.60M in connection with Gulfport’s equity interests in certain equity investments.

Excluding the effect of these items, Gulfport’s financial results for the fourth quarter of 2018 would have been as follows:

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  • Adjusted oil and natural gas revenues of $374.60M.
  • Adjusted net income of $78.20M, or $0.46 per diluted share.
  • Adjusted EBITDA of $247.40M.

For the full year of 2018, Gulfport stated net income of $430.60M, or $2.45 per diluted share, on oil and natural gas revenues of $1.40B.  For the full year of 2018, EBITDA was $1.10B and cash flow from operating activities before changes in operating assets and liabilities was $829.30M. Gulfport’s GAAP net income for the full year of 2018 includes the following items:

  • Aggregate non-cash derivative loss of $65.10M.
  • Aggregate loss of $1.10M in connection with a litigation settlement.
  • Aggregate gain of $0.20M attributable to net insurance proceeds.
  • Aggregate gain of $124.80M in connection with the sale of Gulfport’s equity interests in certain equity investments.
  • Aggregate gain of $49.90M in connection with Gulfport’s equity interests in certain equity investments.

Excluding the effect of these items, Gulfport’s financial results for the full year of 2018 would have been as follows:

  • Adjusted oil and natural gas revenues of $1.40B.
  • Adjusted net income of $321.70M, or $1.83 per diluted share.
  • Adjusted EBITDA of $947.80M.

2018 Capital Expenditures:

For the year ended December 31, 2018, Gulfport’s drilling and completion capital expenditures totaled $695.40M and leasehold capital expenditures totaled $119.30M.

Financial Position and Liquidity:

As of December 31, 2018, Gulfport had cash on hand of about $52.30M. In addition, as of December 31, 2018, Gulfport’s revolving credit facility was $1.40B, under which Gulfport has an elected commitment of $1.00B, with outstanding borrowings of $45.00M and outstanding letters of credit totaling $316.60M. As of December 31, 2018, Gulfport’s net debt-to-trailing twelve months EBITDA ratio was 2.15 times.

Accomplished Formerly Declared Stock Repurchase Program:

As formerly declared Gulfport repurchased 10.20M shares during the fourth quarter of 2018 and accomplished in full the formerly declared and expanded authorized program to acquire up to $200.0M of the Company’s outstanding common stock during 2018. From the initiation of the share repurchase program in February 2018 through December 31, 2018, Gulfport repurchased 20.70M shares and reduced its shares outstanding by over 10%.

2019 Capital Budget and Production Guidance:

For 2019, Gulfport estimates total capital expenditures will be in the range of $565.0M to $600.0M, which will be funded entirely within cash flow at current strip pricing. The 2019 budget includes about $525.0M to $550.0M for drilling and completion (“D&C”) activities and about $40.0M to $50.0M for land activities.  With this level of capital spend, Gulfport forecasts its 2019 average daily net production will be in the range of 1,360 MMcfe to 1,400 MMcfe per day, consistent with the Company’s fourth quarter of 2018 average net production of 1,392.8 MMcfe per day.

The Company offered net profit margin of 31.80% while its gross profit margin was 90.80%. ROE was recorded as 13.30% while beta factor was 0.96. The stock, as of recent close, has shown the weekly downbeat performance of -4.99% which was maintained at 13.44% in this year.

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