Gulfport Energy Corp. will defer near-term production to later periods in 2020 and early 2021, “when natural gas prices are expected to be materially higher when compared to mid-year strip pricing,” the company said in a June 2 release. Three (gross) additional wells are expected in the Utica shale during the year’s second half, providing incremental production late this year and into early 2021.
Full year net production is expected to average 1,000-1,075 MMcfe/d. Second quarter 2020 production is expected to average 1,000-1,050 MMcfe/d.
Total 2020 capital expenditure for the year is expected at the midpoint of the previously guided $285-310 million.
Under a maintenance level program in 2021, the company expects to invest $300 million to maintain a similar level of year over year production, said David Wood, Gulfport president and chief executive officer.
Tiered salary reductions for most employees, senior management, and board directors beginning in June, select furloughs, and other non-payroll initiatives are expected to reduce the company’s 2020 recurring total G&A by $2-4 million.
The company has or expects to enter into agreements with third-parties to reduce midstream costs and obligations that could reduce expenses during the second half of the year and in 2021 by more than $10 million.
In the year’s first quarter, the company spud 7 gross and net operated wells in the Utica shale and 5 gross (4.3 net) operated wells in the SCOOP and had 3 gross wells in various stages of drilling at the end of the first quarter of 2020. It completed 15 gross and net operated wells in the Utica shale and 4 gross (3.8 net) operated wells in the SCOOP and had 3 gross wells in various stages of completion at the end of the quarter.
