GULFPORT PROFITS
Gulfport Energy Corp. on Thursday reported a secondquarter profit of $235 million
A sound hedging strategy and some key divestitures helped Gulfport Energy Corp. boost its second-quarter results.
The company reported Thursday it earned a second-quarter net income of about $235 million, or $1.47 a share, compared to about $111 million, or 64 cents a share, in the second quarter of 2018.
The company's revenue increased to $459 million, compared to about $253 million one year ago.
Its net gain on derivatives it had on natural gas, oil and natural gas liquids was about $171 million in the most recent quarter. Gulfport lost about $71 million on derivatives contracts the same time a year ago.
The production mix in the most recent quarter
was 90% natural gas, 7% natural gas liquids and 3% oil.
Gulfport reported earnings before interest, taxes, depreciation and amortization of about $217 million, compared to about $268 million the same quarter in 2018.
CEO David M. Wood called the second quarter of 2019 successful, given that Gulfport delivered results that were in line with what had
been expected. He said the company actively worked to grow its production in the Utica Shale and SCOOP play of the Anadarko Basin and predicted the company will meet previously forecast growth for the year while staying within budget.
The company, he stated in the earnings release, expects to begin generating “significant free cash flow … during the third quarter of 2019.”
Sales the company highlighted in its earnings release included assets held in southern Louisiana for about $ 54 million, including $9.2 million in cash and overriding royalty interests worth up to about $7.7 million, based on current commodity pricing.
It also sold its remaining interest in Tatex Thailand II for about $1.9 million in cash, the company reported Thursday.
The company has spent $30 million so far in 2019 to repurchase 3.8 million shares of its stock off the market.
Gulfport's stock, traded on the S& P 500 under the ticker symbol GPOR, followed the rest of the market lower Thursday to finish off about 7.7%, at $3.49 a share, before its second quarter report was issued. Its value was trending upwards, however, during after-hours trading.