Gulfport reports 2Q earnings, closes divestitures

Gulfport Energy Corp. reported second-quarter net income of $235 million on revenues of $459 million. For the 6-month period ended June 30, Gulfport reported net income of $297.2 million on revenues of $779.6 million.

Gulfport Energy Corp. reported second-quarter net income of $235 million on revenues of $459 million. For the 6-month period ended June 30, Gulfport reported net income of $297.2 million on revenues of $779.6 million.

Gulfport’s net production for the quarter averaged 1,359 MMcfd of gas equivalent. The company’s net production mix for the quarter was comprised of 90% gas, 7% natural gas liquids, and 3% oil.

The quarter delivered results in line with expectations “highlighted by another active 3 months in both our Utica shale and SCOOP asset areas and high single-digit production growth over the first quarter of 2019,” said Chief Executive Officer and Pres. David M. Wood. Additionally, Wood said, the company reported noncore asset divestitures “not contemplated within our current development plan.” He added, “Furthermore, the monetization process of certain water infrastructure assets Gulfport holds across our SCOOP position is ongoing.”

Divestitures

Separately, Gulfport closed the sale of its southern Louisiana assets to an undisclosed party for $54.1 million. Gulfport received $9.2 million in cash and retained overriding royalty interests worth up to $7.7 million based on current strip pricing. The company could receive contingent payments of as much as $6.8 million based on commodity prices exceeding certain thresholds over the next 2 years. The buyer assumes plugging and abandonment liabilities of $29 million. Gulfport will receive $1.4 million in insurance premium reimbursement due to the sale of these assets.

In addition, Gulfport closed the sale of its remaining interest in Tatex Thailand II to an undisclosed party for $1.9 million in cash.

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