On August 6, 2024, Gulfport Energy Corp (GPOR, Financial) released its 8-K filing detailing the financial and operating results for the second quarter of 2024. Gulfport Energy Corp is an independent natural gas-weighted exploration and production company focused on the exploration, acquisition, and production of natural gas, crude oil, and NGL in the United States. It operates through Utica Shale and SCOOP properties.
Performance Overview
Gulfport Energy Corp (GPOR, Financial) reported a robust performance for Q2 2024, surpassing analyst estimates. The company achieved an earnings per share (EPS) of $2.78, beating the estimated EPS of $2.75, and reported revenue of $259.75 million, exceeding the revenue estimate of $255 million.
Operational Highlights
During the second quarter, Gulfport's drilling and completions teams continued to perform exceptionally well, leading to an estimated $25 million in capital savings for 2024. The company maintained its flexibility to dynamically employ these savings based on the commodity price environment later in the year. Gulfport's net daily production for Q2 2024 averaged 1,050.1 MMcfe per day, primarily consisting of 836.9 MMcfe per day in the Utica/Marcellus and 213.2 MMcfe per day in the SCOOP.
Financial Achievements
Gulfport's financial achievements are noteworthy, particularly in the context of the volatile commodity price environment. The company reported an average natural gas price of $2.66 per Mcf, including settled derivatives, compared to $2.42 per Mcf in Q2 2023. The average price for oil and condensate was $75.43 per Bbl, and for NGL, it was $27.93 per Bbl.
Income Statement and Balance Sheet
Key details from the financial statements include:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Natural Gas (Mcf/day) | 972,487 | 945,910 |
| Oil and Condensate (Bbl/day) | 2,747 | 3,533 |
| NGL (Bbl/day) | 10,195 | 12,036 |
| Total (Mcfe/day) | 1,050,137 | 1,039,323 |
| Average Price (Natural Gas) ($/Mcf) | 2.66 | 2.42 |
| Average Price (Oil and Condensate) ($/Bbl) | 75.43 | 71.45 |
| Average Price (NGL) ($/Bbl) | 27.93 | 26.27 |
Capital Investment and Share Repurchase
Capital investment for Q2 2024 was $122.2 million, with $106.2 million related to drilling and completion activities and $16.0 million for maintenance leasehold and land investment. Additionally, Gulfport invested approximately $19.0 million in discretionary acreage acquisitions. The company repurchased approximately 160.6 thousand shares of common stock at a weighted-average price of $155.65 during the quarter, totaling approximately $25.0 million.
Financial Position and Liquidity
As of June 30, 2024, Gulfport had approximately $1.2 million in cash and cash equivalents, $130.0 million in borrowings under its revolving credit facility, and $550 million in outstanding 2026 senior notes. The company's liquidity totaled approximately $707.4 million.
Commentary
"During the second quarter, our drilling and completions teams continued to perform extremely well and, as a result, we estimate the Company will realize over $25 million in capital savings on our drilling and completion activities during 2024," said John Reinhart, President and CEO.
"We continue to forecast robust adjusted free cash flow generation for 2024 and we are pleased to announce today our plans to allocate approximately $45 million towards targeted discretionary acreage acquisition opportunities," Reinhart added.
For more detailed financial information and guidance, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Gulfport Energy Corp for further details.
