Breaking News

U.K. Bond Rating Affirmed at Aa1 by Moody’s After Scottish 'No' Vote
Tweet TWEET

Gulfport Energy Corporation Reports Third Quarter 2013 Results

Gulfport Energy Corporation Reports Third Quarter 2013 Results

OKLAHOMA CITY, Nov. 5, 2013 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation
(Nasdaq:GPOR) today reported financial and operating results for the third
quarter of 2013 and provided an update on its 2013 activities and its planned
2014 activities.

Financial and Operational Highlights

  *Produced oil and natural gas sales volumes of 1,193,808 barrels of oil
    equivalent ("BOE"), or 12,976 barrels of oil equivalent per day ("BOEPD"),
    in the third quarter of 2013, as compared to 655,437 BOE, or 7,124 BOEPD
    in the third quarter of 2012 and 815,300 BOE, or 8,959 BOEPD in the second
    quarter of 2013.
  *Recorded net income of $40.5 million, or $0.52 per share, in the third
    quarter of 2013, as compared to $0.5 million, or $0.01 per share, in the
    third quarter of 2012.
  *Reported adjusted net income of $11.1 million, or $0.14 per share, in the
    third quarter of 2013.
  *Generated $97.4 million of EBITDA in the third quarter of 2013, as
    compared to $42.6 million in the third quarter of 2012.
  *Reduced unit lease operating expense for the third quarter of 2013 to
    $6.11 per BOE, as compared to $10.13 in the third quarter of 2012.
  *Gulfport's first dry gas well in the Utica, the Irons 1-4H well, was
    recently placed on production in the Utica Shale at an average 24-hour
    sales rate of 30.3 MMCF of natural gas per day.
  *Nine rigs are currently active in Gulfport's three core operating areas,
    with seven horizontal rigs in the Utica, one rig drilling at Hackberry and
    one rig drilling at WCBB.

James Palm, Chief Executive Officer, commented, "We are very pleased with the
initial results from our Irons 1-4H well, our first well in the dry gas
corridor in the Utica. With approximately 44% of our acreage located within
the dry gas phase of the play, this well stands to unlock meaningful value
across a large portion of our acreage. The strong economics of this well
appear to be very attractive in today's commodity price environments and we
look forward to drilling a number of wells in the surrounding area during
2014."

Financial Results

For the third quarter of 2013, Gulfport reported net income of $40.5 million
on oil and natural gas revenues of $68.8 million, or $0.52 per diluted share.
EBITDA (as defined below) for the third quarter of 2013 was $97.4 million and
cash flow from operating activities before changes in operating assets and
liabilities (as defined below) was $51.6 million.

Gulfport's 2013 third quarter financial results include a non-cash loss of
$6.7 million due to a hedge ineffectiveness. Excluding the impact of hedge
ineffectiveness, oil and natural gas revenues for the third quarter of 2013
would have been $75.5 million. Gulfport's 2013 third quarter financial results
also include an aggregate gain of $52.9 million in connection with Gulfport's
equity interest in Diamondback Energy, Inc. ("Diamondback"), a NASDAQ Global
Select Market listed company. Associated with this taxable income was $6.6
million of income tax expense. Excluding the effects of these items, adjusted
net income for the third quarter of 2013 would have been $11.1 million, or
$0.14 per diluted share.

Production

For the third quarter of 2013, net production was 590,187 barrels of oil,
2,981,632 thousand cubic feet ("MCF") of natural gas and 4,480,667 gallons of
natural gas liquids ("NGL"), or 1,193,808 BOE. Net production for the third
quarter of 2013 by region was 662,333 BOE in the Utica Shale, 351,171 BOE at
West Cote Blanche Bay, 167,520 BOE at Hackberry and an aggregate of 12,784 BOE
in the Bakken, Niobrara and other areas.

Realized prices for the third quarter of 2013, which includes transportation
costs, were $89.75 per barrel of oil, $3.61 per MCF of natural gas and $1.14
per gallon of NGL, for a total equivalent price of $57.65 per BOE. Realized
price for oil in the third quarter of 2013 reflects the impact of fixed price
contracts for approximately 5,000 barrels of oil per day at a weighted average
price of $99.86 before transportation costs and differentials.

GULFPORT ENERGY CORPORATION
PRODUCTION SCHEDULE
(Unaudited)
                                                             
Production Volumes: ^(1) 3Q2013       3Q2012       YTD 2013      YTD 2012
                                                             
Oil (MBbls)              590.2        579.3        1,642.3       1,782.8
Natural Gas (MMcf)       2,981.6      314.7        4,716.1       741.5
NGL (MGal)               4,480.7      995.5        6,565.2       2,424.4
Oil equivalents (MBOE)   1,193.8      655.4        2,584.7       1,964.1
                                                             
Average Realized Price:                                       
                                                             
Oil (per Bbl)            $89.75       $101.17      $101.72       $105.25
Natural Gas (per Mcf)    $3.61        $3.09        $4.03         $2.87
NGL (per Gal)            $1.14        $0.88        $1.19         $0.98
Oil equivalents (BOE)    $57.65       $92.24       $75.02        $97.82
                                                             
^(1) Gulfport's production during the third quarter of 2012 includes 69,202
barrels of oil, 108,678 MCF of natural gas and 988,291 gallons of NGLs, or
110,846 BOEs attributable to its oil and natural gas assets in the Permian
Basin. In October 2012, Gulfport contributed these assets to Diamondback. As a
result, no Permian Basin production is included in Gulfport's production
volumes during the third quarter of 2013.

Subsequent to the third quarter of 2013, net production for the month of
October averaged approximately 15,543 BOEPD.

Bank Redetermination

In connection with the fall redetermination of Gulfport's revolving credit
facility, Gulfport's lead lender has proposed to increase Gulfport's borrowing
base from $50 million to $150 million, subject to the approval of the
additional banks within the syndicate.

Derivatives

The table below sets forth the company's hedging positions as of November 5,
2013.

GULFPORT ENERGY CORPORATION
COMMODITY DERIVATIVES - HEDGE POSITION AS OF NOVEMBER 5, 2013
(Unaudited)
                                                       
                      4Q2013                           
Oil (MBbls):                                          
Swap Contracts                                        
Volume                 460                             
Price                  $99.86                         
                                                      
Natural Gas (MMcf):                                    
Swap Contracts                                        
Volume                920                             
Price                 $4.00                          
                                                      
                      Year Ending                        
                      2014         2015       2016       
Oil (MBbls):                                          
Swap Contracts                                        
Volume                 910         --       --       
Price                  $ 102.79    --       --       
                                                      
Natural Gas (MMcf):                                    
Swap Contracts                                        
Volume                18,250      16,425    5,145     
Price                 $4.06      $4.06    $ 4.06    
                                                      
Swaption Contracts                                    
Volume                --         3,650     1,210     
Price                 --         $4.27    $ 4.27    

Operational Update

Utica Shale

In the Utica, Gulfport recently began flowing into sales pipelines its first
dry gas well, the Irons 1-4H, in the Utica Shale. The Irons 1-4H was drilled
to a true vertical depth of 9,770 feet with a 6,629 foot horizontal lateral.
The well was placed on production at an average gross 24-hour sales rate of
30.3 MMCF per day of natural gas. Based upon composition analysis, the gas
being produced is 1,072 BTU gas.

Gulfport spud 14 gross (10.05 net) wells during the third quarter of 2013. At
the end of the third quarter, Gulfport had seven gross wells waiting on
completion and seven gross wells being drilled. At present, Gulfport has seven
horizontal rigs drilling on the 39th through 45th gross wells of 2013 in the
play. During 2014, Gulfport has budgeted $594 million to $634 million to drill
approximately 85 to 95 gross (64 to 71 net) wells in the Utica.

Hackberry

At Hackberry, Gulfport drilled three wells, completing one well as productive
during the third quarter of 2013. One well was waiting on completion and one
well was still being drilled at the end of the quarter. At present, Gulfport
has one rig active at Hackberry drilling ahead on the 15th well of 2013 at the
field.During 2014, Gulfport has budgeted $24 million to $26 million to drill
ten to 12 wells at Hackberry.

WCBB

At WCBB, Gulfport drilled seven wells, completing five wells as productive
during the third quarter of 2013. Two wells were waiting on completion at the
end of the quarter.At present, Gulfport has one rig active at WCBB drilling
ahead on the 18th well of 2013 at the field. During 2014, Gulfport has
budgeted $42 million to $45 million to drill 22 to 24 wells at West Cote.

Canadian Oil Sands

In the Canadian Oil Sands, Grizzly currently expects first steam at its first
SAGD facility at Algar Lake at the end of the November and first production
during the first quarter of 2014. From an exploratory standpoint, Grizzly
continues to work toward filing a regulatory application to support an initial
12,000 barrel per day SAGD project at May River by the end of 2013. In Canada,
Gulfport has budgeted $15 million to $20 million to fund its proportionate
share of 2014 activities.

Guidance

Gulfport estimates 2014 production to be in the range 50,000 BOE per day to
60,000 BOE per day.Capital E&P expenditures for 2014 are estimated to be in
the range of $675 million to $725 million, with approximately 87% allocated to
our horizontal activity in the Utica Shale. Additionally, Gulfport anticipates
to spend approximately $225 million to $275 million on leasehold acquisitions
in the Utica Shale during 2014. Operationally, Gulfport plans to drill 22 to
24 wells at WCBB, ten to 12 wells at Hackberry, and approximately 85 to 95
gross (64 to 71 net) wells in the Utica Shale.

For 2014, Gulfport projects lease operating expense to be in the range of
$2.00 to $3.00 per BOE, transportation, processing and marketing expense to be
between $2.50 to $3.50 per BOE, general and administrative expense to be
between $1.00 and $2.00 per BOE, production taxes to be between 4.0% and 6.0%
of revenues, and depreciation, depletion and amortization expense to be in the
range of $21.00 to $24.00 per BOE.

GULFPORT ENERGY CORPORATION
COMPANY GUIDANCE
                                                
                                                Year Ending
                                                12/31/2014
Forecasted Production (BOE per day)              
Utica                                            44,500 - 54,500
South Louisiana                                  ~5,500
Average Daily Oil Equivalent                    50,000 - 60,000
                                                
Total Equivalent - MMBOE                         18.25 - 21.90
                                                
Projected Cash Operating Costs per BOE           
Lease Operating Expense -- $/BOE                 $2.00 - $3.00
Transportation, Processing & Marketing -- $/BOE  $2.50 - $3.50
Production Taxes -- % of Revenue                 4% - 6%
General and Administrative -- $/BOE              $1.00 - $2.00
                                                
Depreciation, Depletion and Amortization per BOE $21.00 - $24.00
                                                
Budgeted Capital Expenditures - In Millions:    
Utica                                            $594 - $634
West Cote Blanche Bay                            $42 - $45
Hackberry                                        $24 - $26
Grizzly                                          $15 - $20
Total Budgeted E&P Capital Expenditures          $675 - $725
                                                
Budgeted Leasehold Expenditures - In Millions:  $225 - $275

Presentation

An updated presentation has been posted to the Company's website. The
presentation can be found at www.gulfportenergy.com under the "Webcasts &
Presentations" section on the "Investor Relations" page.Information on the
Company's website does not constitute a portion of this press release.

Conference Call

Gulfport will host a conference call on November 5, 2013 at 4:30 PM CST to
discuss its third quarter 2013 financial and operational results.Interested
parties may listen to the call via Gulfport's website at
www.gulfportenergy.com or by calling toll-free at 877-291-1287 or 973-409-9250
for international callers.The passcode for the call is 73802562.A replay of
the call will be available for two weeks at 855-859-2056 or 404-537-3406 for
international callers.The replay passcode is 73802562.The webcast will be
archived on the Company's website and can be accessed on the Company's
"Investor Relations" page.

About Gulfport

Gulfport Energy Corporation is an Oklahoma City-based independent oil and
natural gas exploration and production company with its principal producing
properties located in the Utica Shale of Eastern Ohio and along the Louisiana
Gulf Coast. In addition, Gulfport holds a sizeable acreage position in the
Alberta Oil Sands in Canada through its 24.9% interest in Grizzly Oil Sands
ULC, a 12.1% equity interest in Diamondback Energy Inc., a NASDAQ Global
Select Market listed company, and has an interest in an entity that operates
in Southeast Asia, including the Phu Horm gas field in Thailand.

Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended (the "Securities Act"),
and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). All statements, other than statements of historical facts,
included in this press release that address activities, events or developments
that Gulfport expects or anticipates will or may occur in the future, future
capital expenditures (including the amount and nature thereof), business
strategy and measures to implement strategy, competitive strength, goals,
expansion and growth of Gulfport's business and operations, plans, market
conditions, references to future success, reference to intentions as to future
matters and other such matters are forward-looking statements. These
statements are based on certain assumptions and analyses made by Gulfport in
light of its experience and its perception of historical trends, current
conditions and expected future developments as well as other factors it
believes are appropriate in the circumstances. However, whether actual results
and developments will conform with Gulfport's expectations and predictions is
subject to a number of risks and uncertainties, general economic, market,
credit or business conditions; the opportunities (or lack thereof) that may be
presented to and pursued by Gulfport; competitive actions by other oil and gas
companies; changes in laws or regulations; and other factors, many of which
are beyond the control of Gulfport. Information concerning these and other
factors can be found in the Company's filings with the Securities and Exchange
Commission, including its Forms 10-K, 10-Q and 8-K. Consequently, all of the
forward-looking statements made in this news release are qualified by these
cautionary statements and there can be no assurances that the actual results
or developments anticipated by Gulfport will be realized, or even if realized,
that they will have the expected consequences to or effects on Gulfport, its
business or operations. Gulfport has no intention, and disclaims any
obligation, to update or revise any forward-looking statements, whether as a
result of new information, future results or otherwise.

Non-GAAP Financial Measures

EBITDA is a non-GAAP financial measure equal to net income, the most directly
comparable GAAP financial measure, plus interest expense, income tax expense,
accretion expense and depreciation, depletion and amortization. Cash flow from
operating activities before changes in operating assets and liabilities is a
non-GAAP financial measure equal to cash provided by operating activities
before changes in operating assets and liabilities. Adjusted net income
available is a non-GAAP financial measure equal to pre-tax net income plus
loss from hedge ineffectiveness, less income in connection with Gulfport's
equity interest in Diamondback and income tax expense. The Company has
presented EBITDA because it uses EBITDA as an integral part of its internal
reporting to measure its performance and to evaluate the performance of its
senior management. EBITDA is considered an important indicator of the
operational strength of the Company's business. EBITDA eliminates the uneven
effect of considerable amounts of non-cash depletion, depreciation of tangible
assets and amortization of certain intangible assets. A limitation of this
measure, however, is that it does not reflect the periodic costs of certain
capitalized tangible and intangible assets used in generating revenues in the
Company's business. Management evaluates the costs of such tangible and
intangible assets and the impact of related impairments through other
financial measures, such as capital expenditures, investment spending and
return on capital. Therefore, the Company believes that EBITDA provides useful
information to its investors regarding its performance and overall results of
operations. EBITDA, adjusted net income, and cash flow from operating
activities before changes in operating assets and liabilities are not intended
to be performance measures that should be regarded as an alternative to, or
more meaningful than, either net income as an indicator of operating
performance or to cash flows from operating activities as a measure of
liquidity. In addition, EBITDA, adjusted net income and cash flow from
operating activities before changes in operating assets and liabilities are
not intended to represent funds available for dividends, reinvestment or other
discretionary uses, and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with GAAP. The
EBITDA, adjusted net income and cash flow from operating activities before
changes in operating assets and liabilities presented in this press release
may not be comparable to similarly titled measures presented by other
companies, and may not be identical to corresponding measures used in the
Company's various agreements.

GULFPORT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                                                               
                    Three Months Ended September Nine Months Ended
                     30,                          September 30,
                    2013           2012           2013          2012
                    (In thousands, expect share   (In thousands, expect share
                     data)                         data)
Revenues:                                                     
Oil and condensate   $52,972      $58,609      $167,051    $187,633
sales
Gas sales            10,755        973           19,014       2,127
Natural gas liquids  5,100         874           7,828        2,374
sales
Other income         425           81            793          189
                    69,252        60,537        194,686      192,323
                                                             
Costs and expenses:                                           
Lease operating      7,297         6,638         18,347       18,201
expenses
Production taxes     7,071         6,974         20,381       22,228
Midstream
transportation,      3,622         96            5,940        183
processing, and
marketing
Depreciation,
depletion, and       30,691        25,377        81,814       70,424
amortization
General and          5,259         3,098         14,571       9,370
administrative
Accretion expense    180           176           529          529
(Gain) loss on sale  (5)           --            567          --
of assets
                    54,115        42,359        142,149      120,935
                                                             
INCOME FROM          15,137        18,178        52,537       71,388
OPERATIONS:
                                                             
OTHER (INCOME)                                                
EXPENSE:
Interest expense     2,602         1,003         9,365        1,630
Interest income      (70)          (6)           (211)        (37)
(Income) loss from
equity method        (51,322)      1,165         (162,640)    1,793
investments
                    (48,790)      2,162         (153,486)    3,386
INCOME BEFORE INCOME 63,927        16,016        206,023      68,002
TAXES
                                                             
INCOME TAX EXPENSE:  23,400        15,514        77,109       15,514
                                                             
NET INCOME           $40,527      $502         $128,914    $52,488
                                                             
NET INCOME PER                                                
COMMON SHARE:
                                                             
Basic                $0.52        $0.01        $1.70       $0.94
                                                             
Diluted              $0.52        $0.01        $1.69       $0.93
                                                             
Basic weighted
average shares       77,554,386    55,692,664    75,955,040   55,658,507
outstanding
                                                             
Diluted weighted
average shares       77,931,738    56,291,792    76,374,107   56,174,581
outstanding



GULFPORT ENERGY CORPORATION
RECONCILIATION OF EBITDA AND CASH FLOW
(Unaudited)
                                                             
                             Three Months Ended Nine Months Ended September
                              September 30,      30,
                             2013      2012      2013           2012
                             (In thousands)    (In thousands)
                                                             
Net Income                    $40,527 $502    $128,914     $52,488
Interest expense              2,602    1,003    9,365         1,630
Income tax expense            23,400   15,514   77,109        15,514
Accretion expense             180      176      529           529
Depreciation, depletion, and  30,691   25,377   81,814        70,424
amortization
EBITDA                        $97,400 $42,572 $297,731     $140,585
                                                             
                                                             
                             Three Months Ended Nine Months Ended September
                              September 30,      30,
                             2013      2012      2013           2012
                             (In thousands)    (In thousands)
                                                             
Cash provided by operating    $67,485 66,379   $141,030     165,876
activity
Adjustments:                                                  
Changes in operating assets   (15,900) (22,620) (9,891)       (22,569)
and liabilities
Operating Cash Flow           $51,585 $43,759 $131,139     $143,307



GULFPORT ENERGY CORPORATION
RECONCILIATION OF ADJUSTED NET INCOME
(Unaudited)
                                           
                                           Three Months Ended
                                            September 30,
                                           2013
                                           (In thousands)
                                           
Pre-tax net income                          $63,927
Adjustments:                                
Loss (Income) from hedge ineffectiveness    6,665
Diamondback income on equity investment     (52,944)
Pre-tax net income excluding adjustments    $17,648
                                           
Tax expense excluding adjustments           6,591
                                           
Adjusted net income                        $11,057
                                           
Adjusted net income per common share:       
                                           
Basic                                       $0.14
                                           
Diluted                                     $0.14
                                           
Basic weighted average shares outstanding   77,554,386
                                           
Diluted weighted average shares outstanding 77,391,738

CONTACT: Investor Contacts:
         Paul K. Heerwagen IV
         Director, Investor Relations
         pheerwagen@gulfportenergy.com
         405-242-4888
        
         Jessica R. Wills
         Associate Director, Investor Relations
         jwills@gulfportenergy.com
         405-242-4421

Gulfport Energy
 
Press spacebar to pause and continue. Press esc to stop.