Gulfport Energy generates free cash
Oklahoma City-based Gulfport Energy generated free cash flow of $43.9 million during the second quarter of the year, it announced Tuesday.
In an earnings report issued after markets closed, company officials stated they were able to capitalize on efficiency gains through improved drilling and completions operations and lower service costs to achieve that result.
They noted the company deferred near-term production during the second quarter to later this year and early next, when natural gas prices are expected to be higher.
Additionally, officials announced the company will complete an additional seven wells in its Utica Shale field between now and the end of the year to boost its production abilities there through early next year.
As for its financial results for the second quarter of 2020, the company reported a net loss of $561 million, or $3.51 a share, on total revenues of $132.4 million.
In the second quarter of 2019, it reported a net income of $55.6 million, or $1.47 per share, on total revenues of about $459 million.
A major driver behind this year's second-quarter results was a $533 million non-cash impairment of its oil and gas properties, it reported.
Gulfport posted an average daily production during the second quarter of 2020 of about 1.02 billion cubic feet (equivalent), with about 91% natural gas, 6% natural gas liquids and 3% oil.
Its realized natural gas price for the quarter before the impact of derivatives and including transportation costs averaged $1.02 per thousand cubic feet, a 70-cent differential to the average trade month NYMEX settled price.
Its realized oil price for the quarter before the impact of derivatives and including transportation costs averaged $20.14 per barrel, a $7.71 per barrel differential to the average West Texas Intermediate price.
In the Utica Shale, Gulfport spud five wells during the quarter and turned 10 others to sales.
The company currently is running one drilling rig in the play, Tuesday's release stated.
In the SCOOP play of the Ana dark oB as in, Gulf port spud one well during the second quarter.
Gulfport's capital expenditures for the quarter were $54 million, it reported. This week, it reaffirmed it expects its 2020 annual production to average between 1 billion and 1.075 billion billion cubic feet (equivalent) daily.
As of June 30, Gulfport had about $256 million of liquidity, including $2.8 million of cash on hand.