Gulfport Energy Corp. reported a net loss of $561.1 million for the second quarter of 2020. The company reported adjusted net income of $47.1 million for the quarter.
Cash from operating activities was $116.4 million for the quarter and operating cash flow, excluding working capital changes, was $97.9 million. Generated free cash flow was $43.9 million.
Capital expenditures during second-quarter 2020 benefited from improvement in drilling and completions operations, efficiency gains and lower service costs. Incurred total capital expenditures for the quarter were $54.0 million ($51.7 million of drilling and completion capital expenditures and $2.3 million of land capital expenditures).
As of June 30, the company’s liquidity totaled $255.7 million, comprised of the $700 million borrowing base plus $2.8 million in cash on hand less $324.1 million outstanding letters of credit and $123.0 million of revolver draw.
Operations As a result of the commodity price environment, during the second quarter, Gulfport deferred near-term production to later periods in 2020 and early 2021 (OGJ Online, June 2, 2020). The company now plans to complete an additional 7 gross wells in the Utica shale in second-half 2020, providing incremental production late this year and into early 2021. Gulfport expects minimal impact to full year 2020 production levels from this activity and reaffirms its 2020 full year net production to average 1,000-1,075 MMcfed. Third quarter production is expected to average 980-1,030 MMcfed.
Total 2020 capital expenditures are expected to be at the low-end of the previously provided range of $285-310 million.
Production Gulfport’s net daily production for the second quarter of 2020 averaged 1,027 MMcfed (91% natural gas, 6% NGL, and 3% oil).
In the Utica shale, during the second quarter, Gulfport spud five gross (4.1 net) operated wells. The wells drilled during this period had an average lateral length of 8,300 ft. Gulfport turned-to-sales 10 gross (10 net) operated wells with an average stimulated lateral length of 9,500 ft.
At present, Gulfport has one operated drilling rig running in the play and expects to continue running one rig through the third quarter.
In the SCOOP, during the second quarter, Gulfport spud one gross (0.7 net) operated well which had an average lateral length of 9,200 ft.
At present, Gulfport has one operated drilling rig running in the play and expects to continue running one rig for the remainder of 2020.
