GPOR - Earnings call transcript Q3 2017 | Gulfport Energy Corporation

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Operator

Greetings, and welcome to Gulfport Energy Corporation Q3 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jessica Wills, Manager, Investor Relations and Research. ahead. go Please

Jessica Wills

today's good Financial quarter and Jessica to Energy and Speakers Gulfport Manager Executive Moore, Thank and Officer XXXX morning. earnings third President; on Research. and of Investor Crowell, am include conference Corporation's Mike of Chief Chief you, Keri Relations Welcome call Officer. call. Wills, I

Vice Development addition, me like during this the today that of of plans, you Strategy; materially Mark of are, the call due condition, Vice Senior participants with concerning of available be President portion call, Vice may Corporate found variety in President company's I everybody SEC. could in In actual are conference Drilling; Peck, the make Malone, financial factors Paul Midstream indicated of Operations; objectives, can President Rob factors. We forward-looking caution performance Jones, Senior and would these company's certain Heerwagen, operations, the Marketing. with remind and and that and Senior for business. filings the those that the the of of differ results Senior President to statements question-and-answer Vice to results from forward-looking these a future relating to Information statements Ty

was income recent and or loss an site. make of Web million, $XX,XXX in $XX addition, diluted $XX.X million with in like website of the Yesterday $X.XX equity to occurs, with million the items, These loss to investments. analyst earnings SCOOP the Moore, derivative a afternoon, including for aggregate and yesterday the non-cash million the our diluted at per share. acquisition, call presentation in posted non-GAAP XXXX, reported At Gulfport's Please evening In appropriate share. certain review leisure. $X.X items, or adjusted was updated in quarter the turn several to your CEO of contain An may Energy. announcement. reference our previous per would of which of connection the results net mentioned expense non-cash over measures. conjunction the all Gulfport we connection $XX to to I $X.XX quarter the reconciliations income posted be Comparable GAAP other with third excludes to estimates, If net XXXX interest on this Gulfport time, measures third of will to Mike this

Mike Moore

Thank Welcome, you, and Jessica. joining thank all morning. us you everyone, for this

$XXX.X approximately release of press third and revenues, natural million the oil million during of yesterday cash $XXX.X X.X quarter million of XX% Gulfport operating of reported approximately billion third of Gulfport generated and of day quarter gas approximately third XXXX. second of in the announced quarter income gas cubic and net XXXX equivalent As $XX quarter EBITDA the flow. adjusted on produced the evening, adjusted and over per growth the million representing feet over growth adjusted $XXX production XX% during

plays. both Our bolstered in Shale solid the of active asset driven continued and Utica performance are both our an turn-in-line schedule by results and strong by production year-to-date SCOOP year-to-date

down foot spud into On lateral XXXX rig spud lateral drilled type in year of in full an wells front, of XXXX results. the over the of were feet X,XXX months six release and normalized X,XXX length utilizing during nine XX% Utica approximately curve, public average rigs, as an days average we wells we as XX our operations the release the our assumed XX.X first the operating gross

of overall as previous in had in in we records drilling records to our beating enter rigs a we’ve XXXX, with the to as to our XXXX, and continue allowing set do break the many vertical running. both joint during field, solid our day more quarter total less on efficiencies footage plan set us We drill well of per the third XXXX, realized year us bet a overall

fourth during today began we Gulfport to the operated program rigs XXXX has neutral four in decrease quarter and we for our as flow running for plan the cash Utica in expire As contract play. the rig count

XX, completions the Utica during completion a result, in XXXX completed cruise months fourth activity, lateral during nine two and had X,XXX XXXX, ran months per with wells nine feet, year wells XX XX of total to our to X.X first substantially of anticipate gross sale average the currently turned to completion of an stages activity Turning September Shale, XXXX of net we first we we a the during XX.X the an turn-in-line average of completed as approximately as the stages XXXX quarter. length representing day, gross of of terms of we all in during

not However, wells of the and the associated the majority the the during quarter capital XXXX, these mark turn-in-lines spending have large of of a do place forecasted with third our XXXX schedule took we frac completion the approximately the both and the foot of completion estimate first incorporating XXXX. per months well Utica $X,XXX drilling during is in running cost activities lateral. today, average crew Gulfport nine basin We of completion that

with to our and to spud X,XXX XX, XXXX, been been release days XXXX. The were taking of year-to-date of spud the per the as September cost length on see however placement drilling pit our improvement horizontal shorter wells improved EJ earnings yesterday’s gross an utilization. summer to-date Central on and of realizing very progress during we the lateral of SCOOP reflects These X,XXX Grady during in an lengths the in in we the SCOOP our selection, eight expect ability our average of casing in days [ph] X, lateral asset bit wells wells during of above the resulting for economies lengths In have in curves, the alongside additional third public rich in first intensely us we Pauline to average stimulated durable Woodford results an few team drill rates gross field months quarter rotaries wells past have to lateral and X, the In of for of provided of type of length reduce target months, rig initiatives the feet, steering confident acreage identifying we costs. the and the have mid-February released production fourth the liquid continue X wells. a on X, wells a of lateral Pauline gas had and window months, has nine XX XX% have during over areas County since scale including our approximately as to and well production seismic of have XX-day located foot gross percentages over wet Craddock X average leading reprocessing, GL the sell assumed to and lateral normalized XXXX. X,XXX results lateral Pauline XX announced net improvement turned six the XXXX, targeting, increase focused during Pauline the feet quarter in we see announcement foot Our XXXX average leave

and very all history We be from continue production the recent results to in our with more forward to accumulating of look play. turn-in-lines pleased these

our include to tests the organically towards additional to exploration across in in XXXX resource delineate we Turning the development the SCOOP in earlier and both Springer program elected the activities year our Sycamore acreage.

the fourth very are completed in of well to located the Grady On stages and completed processing complete around end quarter first third and Sycamore drilling our rigging results back Eastern down of quarter are drilled provide and look we the the initial tests County, during in forward year. and of in the plan the early to Springer in of South well We [indiscernible] the Gulfport’s XXXX providing coming test weeks. in South recently County, a location. Central the results the During Grady we flow early the we

the In addition, have play, we and SCOOP. additional we million throughout in additional G&G well on reflect budget of activity, incremental side exploration activity been have active to incorporating updated the the XXXX these seismic, cores, capital XX XXXX our technical an with in

we in play within to let chose has the acres in the lease dry this development leasehold units very potential of have on approximately allowed front, and the been window near-term schedule trading organically to acquired in core adding our year plan. have higher our strategy XX,XXX deploying returns due the partially successful our On the Gulfport offset focus the to this by outside hold spend year-to-date announced consciously Utica we development Shale, for ground expire approximately gas efforts the and us capital leasehold be has acres in X,XXX plan, our on

X%. AMI net we on announced we in acquisition the in within calls as of interest interest mineral in year Belmont closed with on by addition, County, our earlier X,XXX acres Rice approximately Energy revenue in our August, of In an our increasing earnings

on expect be in and reflect year partially activity quarter upon capital when and guidance, previously Gulfport active acres by forecasted to working now between year, X.X this year-to-date our during the the additional positions spend Utica offset our wells Shale approximately activity million led have spend. within actual in net we when and to interest plan XXX operated plans XX with be this couple interest we anticipated estimate an turn-in-lines SCOOP, compared additional will updated incremental $XX incremental we our in wells SCOOP spend does an wells provided this an connection with approximately significant working total midpoint and spud to in Gulfport our spud interest reduction wells we XXXX this XXXX the operating core of in of in net and Lastly spud increased while do wells a increase based effort, our by a leasehold to has to XXXX XXXX, approximately related position the fourth area, working equating leasehold the the increase our this X,XXX we for year-to-date million has increase trading

based non-operated $XXX activities, updated leasehold spend forecast expectations million activities and fourth the capital approximately approximately in full we on year updated we on during Our for build $XX operated XXXX. on on million addition expenditures out strike activities, now budget approximately and on have midstream approximately associated forecasted force and completion $XXX quarter XXXX our the XXXX year-to-date and million forecast to $XXX million with drilling

billion guidance and do XXXX feet strong continued equivalent to trending performance X.X be upper towards turn-in-line we both production recently gas cubic assets. increased per of of shale reduction full SCOOP the the X.XXX previously forecast we acquired from currently a day, the year of end while to the highlighting Utica Lastly expect slight range in

today. into to and I to on experiencing numerous in we differentials have many improvement we pivotal a Keri local leading we start the with times Before turning in to of expect year be this over pleased call ultimately as capacity touch quickly transition service, to the are I the coming am in XXXX that Northeast, Appalachia stated projects the want marketing structural a to report the dynamics

have third realized pipeline per end Rover end to of we growth few Appalachia the [indiscernible] the the the results. plus Over the into expect capacity service priced of which turning to reflected the forward tightening Keri day past months Completion and into today. Gulfport under Rover. see in we of we and to in flowing placed pricing which benefit Gulfport now In third TEDCO in expansion in sight volumes incremental be XXXX, discuss basin an pricing Once of capacity specific basis we Rain to receiving phase incremental pricing see will have will Energy XA Bcf line today. quarter a first volumes and and compared premium over Bcf TransCanada market on I clear day shift interim quarter line we holds Express, continue when quarter XX% as including takeaway local of advancing witnessed service marks into Transfer Leach X.X between of we there turn of at prices including arrangement Southwest call of X.X plus the the to now firm financial surrounding from our in XXXX

Keri Crowell

mentioned Mike continued cubic and for day, Mike. billion feet in increase existing gas driven approximately and solution XX% our quarter the averaged net third base equivalent X.X plays. asset Thanks, production per was sequentially of the a performance Utica of Shale turn-in-lines by as Total

gas, natural settlement as average price full various and before year-to-date XXXX. at realizations the $X.XX natural $X.XX the below front, pricing regional of Mcf below we its forecast the continue points NYMEX and pricing in realized average the effect which results the during strip our first NYMEX Based On nine transportation price. in to hedges sells and range $X.XX current year of per upon our reiterate of including prices per company the months settled utilizing the guidance approximately cost, Mcf, to XXXX our

year our NGL Utica, of and NGL we realized price to the realized liquid in approximately these hedges, $X.XX realization $X.XX and rich all LOS oil Based expect the the effect WTI. price the and XX% set Louisiana of for WTI areas in including NGL WTI results approximately of liquids guidance realize in in to our our before full WTI front have SCOOP to XX% seen approximately volume upon off oil the updated forecasted of now $X.XX we operating During at came for year and came oil months of have for first of and nine on XXXX. XX% price given strength during asset, our our

the third the and swapped in consensus layer additional very our to estimate, to of years opportunistically sight XXXX line increase flows. volumes added of for and a of to and to continues realizations on certainty cash provide based $X.XX Gulfport hedge additional the across XXXX load on quarter. with to portfolio the at our swap provide approximately cash products XX% during has and Today XXXX continues active production hedge base been and future our outer base robust flows have we securing majority Our

turning Turning and production and compared XXXX. LOE total lower another quarter, quarter to Gulfport midstream costs and XX% sequentially includes quarter the tax, costs, per experienced down third gathering expense operating of our when unit to processing operating Mcfe per of which the during third X% $X.XX and G&A

X% year-over-year, a quarter midstream decrease and XX% gathering Mcfe $X.XX Third third sequentially year-over-year, totaled and approximately per sequentially quarter totaled down Mcfe flat and $X.XX approximately of totaled XX% approximately relatively down Mcfe processing year-over-year. expense XX% sequentially down $X.XX expense third X% G&A quarter per and LOE per

of our We SCOOP progress well decrease operating expense as continue to asset. in through and we the the due further Shale XXXX expect economies the year to into our from Utica scale as per will as unit the growth

the the sheet, in Gulfport borrowing on total now rate the under facility billion utilized were notes to base proceeds subsequent Gulfport due spend completed borrowing of base XXXX, for with since the an reserve the offering Moving billion, Gulfport’s $X.X to lenders $X to $XXX.X the outstanding X.XX of determination the XXXX. a upon borrowing lead to commitments of an over call spring, into in company’s third our under credit closing with be added to remarks. balance portion to balance of approximately taking quarter, and $XXX to $X senior million connection from recommended million increase Mike net I the in revolving bit the to turn with addition out billion elected will account the repay have used the drill facility remaining anticipated for

Mike Moore

to remain XX% prepared a and strip estimate look and key XXXX participants. we our XXXX our XXXX exit please Thank continue for the we cash your our again as closing, we program Operator, unchanged, approximately head we In with you and for growth committed the priorities to are to into questions remain up yesterday’s call neutrality generate price devoted capital disciplined we for flow from lines today questions. remarks. answering year-over-year. for joining forward phone concludes open This to

Operator

Thank first Neal Dingmann Please you go is of question Our sir [Operator today ahead. from SunTrust. Instructions]

Neal Dingmann

job, solid the in M&A certainly interest my Mike, on Good is Utica. question morning adding a working you all did you of quarter during tell, more all. first can the

forward. and you about question just Utica my general SCOOP So in just continue doing talk you and this will is acquisitions if going the could

Mike Moore

Thanks Neal.

were up to XX% land to This we’re brought filled forward in units folks in think, really working Neal I plans out. our pretty our plan going hard XXXX units near-term know you units and late our for quarter worked those already development interest beginning that summer, fill the are and those

of the is we And and we will So, I head lot remaining said down again fill are in pop I while think have is units units, trying as I here there focus lot last see pieces. and in to in we so pretty acreage are certainly but of opportunity have pretty M&A as our those always small second forward, mom things already think our different approach you was that bits doing question, what there robust, of far some a think and we a than drill, going last to acreage. those I Neal as not we to part are development limited and leasing your think on the those locations that we before fill of

Neal Dingmann

Okay, one any going potential if midstream you obviously and your just partner in anything that a change, plan or Rice potentially midstream caused with change JV if change as potential have believe that I operating well about what's to last one could could. that about particular that equity, anyway would as you with you if on changes. talk in Mike, there

Ty Peck

is of portion this operational lease Ty, Neal Hey I will that. answer

is We and have is are all one so confident our good, so design which largely as week under, Rice still already been invited day basically execution, here that making we with on –it’s just we far in good don’t about just operation the under announcement contracts we still even last or good anything. side construction feel operational is good, them as ETG is like the which about our that’s operator, plan at working it’s design sure operational position, the and not the a just then change from

Mike Moore

that a mentioned unlocking our the Rice I but that certainly moving that I have think we a also certainly be and seem certainly with forward that we event. Ty think that we we’re contractual quote think, asset they I close obviously you on I a have I want publicly tag midstream onto as don’t to Neal, it could plan, value indicated a share ETG are and to have for and multi-year focused just add of XXXX we activities, I would relationship to remind the but dropdown midstream right on outlook

our So everything quo and status minds we in are forward. is proceeding

Neal Dingmann

Thanks, Mike. Thanks, Ty.

Mike Moore

you. Thank

Operator

question Rice Mills Please and next Ron Johnson with is Company. The go ahead. from

Ron Mills

activity higher XXXX and Mike the seeking the I about that on fits you you good have to from late with Hey, what neutrality already you’ve pretend for a rigs how that morning your drill gone interest bit you talk expectations marry flow because more up wells Utica XXXX to end does net for through cash much programs, see can that to into to on little XXXX fewer gross trying will in growth that in being XX% X X able CapEx? the working

Keri Crowell

rigs we perfectly going probably approximately X we’re question? the activity, have SCOOP. better activity yes, dynamic thinking we so in these really will year less higher this Okay, to going I the of that, and the haven’t, additional drilling interest this on where wells exiting for and to is a ducts, is on, next to think allows a in interest ability know X.X information answer haven’t to are we that, a your puts so I even generally with given more, I it with working next certainly details, year, have that higher spend and about stands we lot that year working Does this of levels XXXX we today, it to so increase are would we us on way. yet, are you XXXX What do position a different bringing stick in tell certainly going and see in Utica us you think just level complete into drill less CapEx about

Ron Mills

could Woodford strong be look remain the rigs maintain in the program would as SCOOP then Springer the successful? plan Yes with upcoming we in it does results gas at the how and into Sycamore those and with the X wet results given and focus the or on development think to folding the you you Woodford -- given zones and about the potentially how the

Mike Moore

a good Yes, that’s question.

before the have Springer those year of the gas, wet the been obviously results more and on be next think, come Woodford testing of we have focused on Sycamore. to-date do and program all to end brought we the I the will have wells, we we So year, our seen

We details flow have still Sycamore weeks the well a hopefully so probably -- couple the about talk of we Springer end see year of far tune wet in gas. to but back, and weighted of year, we in heavily Sycamore towards towards is level next by Woodford Springer will next be what well specific some just testing probably the include and will as stay for

Ron Mills

are you in also, pulling Woodford forward or number what direction to of like, Do look terms it terms of over big you pad, quantification next of a in have of wet the any wells that sounds results kind the had of gas [indiscernible]?

Mike Moore

coming it -- six yes, have is We on. well another pad,

Ron Mills

Great, thank you.

Operator

KeyBanc The next Deckelbaum is from ahead. Please David of question Capital go Markets.

David Deckelbaum

so thanks we now share we saw going guess see into some are basin of up right rate XXXX hoping rolling next of strip and higher be Good just trying into and in earlier but how my expect running is with your in all XXXX, are program guess X think you Utica, kind to discussed of of that allocation questions do perhaps morning about keeping capital the kind some gas just and that a guess of view this everyone, I driven in year if with I right is Mike, evacuated follow-up you to Mike, exclusively program I and working basing being you improvement other greater the reconcile of the that rigs, based SCOOP and of goals for on into and you return How in it on today, you taking question. to there potential the now? or achieve do XXXX kind current improving? this the Utica, base should Utica current interest and two or

Mike Moore

we that to to do hold talk Utica, we up less in so driven companies just as do when less, efficiencies in you achieve Utica. in can about are activities to also we are been have have we mind, acreage able in have more certainly with and most the return there, So keep and Rob factor Mark

try we will always to and find XXXX think, plan Utica. us So to but to the as we held right to to that to as -- getting close do in your point be fully allows I look we beyond we

I that a be could think So analysis. different

by XXXX. getting do also got is are for area encouraged an improvement. already. Northeast as for those. think remember, we And good to in from do the We are pricing very in additional there comes we you our the we opportunity margin have pricing And But SCOOP that well

So faster do it’s finding between It’s drill slower less. drill SCOOP, with to do areas. two in the balance the in can Utica. We

within So but returns probably not two lean the for right again, other, staying we Certainly that of concern year. top neutrality a now. also so, cash are on are now of right next the much as each governor is flow returns right the basins critical, that see

David Deckelbaum

growth could out free about you if sort production this a planning as deliver a cash with kind sorted cash program are when coincident? could And of decisions you within matching within ‘XX more? now, you And flow? neutral of the just guess Or are should philosophy ask it. three-year thinking cash I one have right flow? that program of three-year of could program of one-year being Got CAGR achieve now, is sort think becoming influencing a you about you As what I we the

Mike Moore

a can bubble. plan actually we never in -- you No, Yes.

And so, to out always X next we XX years. the plan

XX. to always ‘XX we what program think and program to about So does ‘XX ‘XX’s does

to consider that. have always You

said flow ‘XX XX% think growth. We are and we cash achieve growth earlier And certainly digit double that. to point we we can forward. neutrality then this committed beyond for from and So XXXX

we have We plan. a on We paper. that. achieve can think It’s

So we’re committed is new this. to This go-forward. the

David Deckelbaum

Mike. Okay, thanks,

Mike Moore

you. Thank

Operator

of comes Please Wangler Jason Imperial go ahead. The next Capital. question from

Jason Wangler

can talk as budgeted from in you drilling kind these of you these now as we efficiencies with you the in Utica of and year are you morning about think looking kind to of SCOOP specifically Good the mentioned about change beginning where counts? at them the rig doing this year maybe when maybe the the just Mike, less, times all. maybe more just both and

Rob Jones

Rob. this to Utica side, Yes, is the Certainly we that. can answer I make on strides. continue

quarter Our quarter been best days here. we’ve the third single drilling for the is since

have days when looking So, the for. And that’s location Utica job. get you a great days in spend the on are what better that guys our in to done continue we less

say it On challenging certainly has the SCOOP the to been least. side,

the For year, days which well of we is are kind line XX per we what budgeted. in at about of

SCOOP. wells very We in some days successes have is less than much for had some encouraging. recent been the We working which on XX everything

We are on consistency. working

We have believe got the and people the equipment continue right we’ve down. I will in we days place. bring right to got

Mike Moore

steer And faster, huge. time, comment. for for very SCOOP system I have I fractured or know better the bigger going already is probably mentioned changes find been And, leading room wells the would --- can think the there very on on the to is heard tools, faster ways is The bigger incremented is to probably but goes. necessarily good. the edge you in to roll improvement faster we’ve in has the here. to recognized. in And middle zone completion the leading change of forward, zone might and and complete efficiency using add we that wells been within stay you faulted the XX% as this geo-steering everything us. the our edge reached small that’s have and stay as you to are It side. seen ability continue very Utica, helps more play off Rob maximum out there Mark but step out I Rob haven’t his continuing push folks as

take opportunity going we to the about really feel awhile. improvement like than the we’re So but kind for it’s in SCOOP. of And still excited it’s expected, going faster

Jason Wangler

so guys similar wells on the the of you very far, two formations? on bit color. well it the even of of in lot you had appreciate those I or things those kind I And Woodford? Sycamore, then at different you ramp detail, Woodford are have good more looking Okay. are completion up little doing Springer the a landing the versus and Is as start that gotten and just success a some how you now guess to

Mark Malone

And Malone. we we can foot. Mark first consider I optimized we are been the Springer Rob frac as is to that well. answer back, well per have Woodford, early We results an and though thus phases I is £XXXX has pleased what a that, be even the This in employed roughly what design we we which with for Jason. apply far. our of are flow in

we’ll announcing those So be things.

is based designs frac and and probably at So employed different continue on again might on spacing placing intent our aggressive to the that this. be options we volumes stay look are how

Mike Moore

sizes pushing And we are been certainly frac window on down certainly has the here. -- Mark

So, performing larger really the today, if the well. jobs. wells we at quite to as frankly, are continue -- line using that you offset above and And curve, on perform we brought the are they type above look wells

encouraged can couldn’t are are frankly, here. we that agree So in going we I done. think frac on down that were with that be right didn’t direction that and Quite And be it told we the it really we’ve proven done. we

Jason Wangler

Appreciate it. back. Thank you, I’ll turn it

Mike Moore

you. Thank

Operator

The next question is Goldman ahead. from John Please Sachs. go Nelson of

John Nelson

thank my Good you morning taking for and questions.

Mike Moore

Sure.

John Nelson

sort are have the could if you practices your seem just like production Obviously, are wells? SCOOP well type the curve. it they was time on trending talk about wondering of management choke you rates what above I employing early

extent to trying they what choked to get Just being of some back? are sense

Mark Malone

Malone Well, again. -- am Mark is I I this sorry, mean

near. We are play And entering interest working into lot have we watching in some wells SCOOP operators. the of residing -- very a

from scratch So start we here. didn’t

operators. interest lead and We the offset our from are working partners taking

trying have are of with wells. we’re liquids determine lot these now kind we right it’s to to what going of So

the these with first pleased very so liquid-rich. fact are wells that We were

in work a it’s progress. So

this am where think them. I going with is I

anticipate. define continue of progress fluid volumes to these different optimize management we program and we what the we We will as choke and windows as kind

John Nelson

that does a or is at kind the time could it think mean it you -- you Yes, up bit that choke wells more currently still TBD? of back this

Mark Malone

I will we right we scratch. wells and Again, a at we like as course. like pretty Again, right start [indiscernible] gas we manage the said But it from to didn’t up. different little I we of will we I then think wells right now where are is are look now, spot. good mean continue progress feel than we the

wells responding the the are with favorably pleased are management we to think certainly And program. I it.

Paul Heerwagen

approach in Hey, I choke it’s proactive conservative on regard management, in the Utica, a approach. John, in that the that Similar thought very Paul. With the we approach think in were we Utica. were a we to to taking took leader Utica the

similar SCOOP down coming a are with We type here the approach. into

think on erring side conservatism in coming I we the here. So of are

John Nelson

a guess I SCOOP, standpoint? that housekeeping thoughts type kind then, And X Utica, like Okay. allocation - question. ballpark from two XX% a early X.X maybe time Does kind rigs on sound roughly sound more of in that to XX% ‘XX. rigs capital The of XX to the and

Mike Moore

on, looking right are your question? what’s now. that Hang next Yes, we at

John Nelson

horizon? seem Is I the to guess a on just any monetize share be trading appetite to use tough bit or incremental potentially there those better.

Mike Moore

Yes, seen that Mammoth give Gulfport from time you but to not week may to time statement does this S-X. have or the by ability may registration our under filed stock the sell

have of So, lately. had momentum they I guess lot

that for excited stock We are about us. have means and for that that what really opportunity the new they

about that’s talked probably at see way you always and what doing some selling us we’ve some point. shares along will And so, the

John Nelson

let Okay. on. else I hop will Thanks. something

Mike Moore

you. Thank

Operator

Mizuho Please The Rezvan ahead. of from next Tim go Securities. question is

Tim Rezvan

are folks. wells pads. people equally more northern some for across kind I Woodford expect to concentrated Sycamore important of so on into edges the the to leasehold morning my your the the the understand of resource, Carbon first argue County? position, to drilling understanding a across we that but of fairly tests to-date taking than maybe to entire can good and been border quality question. and When drill see important in is the and western has your clearly Hi, pulling to want Thanks understand think would I Springer lot SCOOP, I it’s start you

Michael Moore

and do in I think the look don’t keep some you there you. -- but by average Springer that’s play some XXXX being north year tests agree, some additional next has that area disagree in things different areas with you I again play see the more the is Sycamore us and penetrations I have to it and some south given here. is market at is curves variation mind This curves we’ve stuff with out best along will done the What play. way lot across type we the because Well, a we’ve tight for and

certainly is not best to our but the like lineated and we identify where So the have it’s do not acreage… are be there for can spots all expertise variation sweet

Paul Heerwagen

and regard you to I with Slide Paul. Hi, the gives point our this de-risk Tim. XX in deck to of you here. Woodford color kind It’s hopefully slide the some nature of

you has look with If Slide XX, about well the control. map been top on peppered of the corner position left

our the I we have in the in that completions within that. this, to perspective. is the we think rock table responded Woodford, bringing modern good understanding well brought Coming property certainly certainly techniques and from here, dynamics to So of has a the in terms I its completion very the rock think understanding

with as we the it the geography concentrated said wet grasp like it position. across feel of your one next position got pretty whole, will point I good drilling within across that the So be fairly a will pretty the be position year wide of a while of to gas Woodford, the the

So I addressed the question you had.

Tim Rezvan

back I helpful. just CapEx of on will what was then, well investors quarter fairly is wildcard neutrality And last spending received by issue kind you the the free but I that’s guess be. the appreciate messaged on Okay, here cash color. think the other I Tom

kind on surprising the of so out or If give of I kind here kind in night, put here stand we spending an XXXX? guess of about see last you large XXXX can CapEx, want leasehold to assurances a came you think that investors what that on you to so increase

Keri Crowell

scheduled that one. is all, to that’s a number that of that I’ve unit, Well so new limited already very we going indicated have looking forward first drill year, next on opportunities this the units the

which into you As committed to say neutrality, year is we flow mean million, are cash at got you think spend think to Tim, year, around this flow went are midstream cash all, what neutrality. other we kind I for I of when to think remember. $XXX I of next can and committed first about we leasehold Well, I to

a XXX we already that’s we I’ve to think know, a indicated talked we liquidity to net our lots but think you consider is can that’s got but us, could about that the liquidity inflow certainly about lots year completions, our to have worth those that down, of do possible words, possible things So even we also next can tough please for levers I source Gulfport already pull us, source there dropdown pull, be of stock as so million that. to of for Midstream, back and of the we’ve committed well we are

Tim Rezvan

Okay, comment. for okay. Thanks the

Keri Crowell

you. Thank

Operator

Marshall go comes Energy from Heikkinen of Please question Carver next ahead. Advisors. The

Mike Moore

Hi, Marshall.

Operator

is line your open. Marshall,

Marshall Carver

I'm neutrality you sorry flow muted. and year. was about I thinking Thank the cash next

did can about a that you you the is talk that shares, consider be cash then If Force have that from some like or inflow flow are flow sale or JV or talking on operations? neutrality you CapEx spent strictly the you something would Strike or of cash within could cash

Keri Crowell

I even completing liquidity we production sure is think I'm is more are we Marshall think that wells have. knows there CapEx. XX% talking higher drilling cash If not we these a delivering program flow when flow But growth to look forces BNC. next cash Well, deliver our net I of everyone GNC cash already more for or from neutral about are talking year we about wells are neutrality, growth under appropriate. inflow

There as of do. could So a are We that I is and other we opportunities other there add either think that and could would well. play host better. be leasehold we have things opportunities

to is do. think production the more appropriate don’t I growth adding thing So

Marshall Carver

the How JV there? how to Good. Strike has you has spend? been Thank much How in and is, much much spent Force is left left? terms of

Keri Crowell

our would spend. spend around but year? down net what be we think that think, from asking inflow spend you estimate if possible next that our absent I a are is at growth XX cash are looking I for a drop the

Marshall Carver

And question. then, final Okay. Thank you.

Mike Moore

think it answer. the That’s of end the probably finish I should, that that should off. And

Marshall Carver

one right, thank interest move close up you. the much working really talk within not XXX% about is in to one, the final room 'XX to Utica, All And you already for that’s or?

Mike Moore

there That’s XX%, much room. next year units are is to it. not already I so close think just The

Marshall Carver

Thank Okay. very you much.

Mike Moore

Thank you.

Operator

question of Weil. The Howard go from Stewart Holly Please ahead. Scotia next is

Holly Stewart

Good gentlemen morning Jessica. Keri,

Keri Crowell

Holly. Hello,

Holly Stewart

on to But dock? and kind of been of the on lot that XQ, being in end versus we count where give color levels what historical you little drilled has client going the could are some no the the the talk just up in commentary rate exiting Maybe of kind increase maybe just is wells dock Utica one, any there a a in and us on no or give XQ, XXXX? completions activity

Keri Crowell

can quick we some to good you at give Actually, answer we are there. a looking question. sure that’s Yes, that make

it is dock approximately docks, with carry like that stands docks. go are way carry typical around So we into we like more inventory looks -- now the XXXX XX to right to going XX

Holly Stewart

XQ? than it can are for just of Great. us people were for and right number you okay. settling a then, what forecasting think anticipating reconciling XQ help basis out, are And just the maybe is are guidance, Wow, you where kind XQ, one Ty things you given on now given reconcile seeing better I decent looks like most your fairly

Ty Peck

and pipeline pushed coming growth strong into start on demand September, August we always seeing and so that. light then were factors, roughly a we July change up to production sure. was went Yes, of regards as rough significantly with and some was -- there had The pipelines are on. number really we

going pipeline we move the allow or come with fourth on. limited as been based as We premium into that come that those able look that based as BCF coming the So 'XX design we for exiting and to some then, to backfill well expansions new as that on helped Gulfport be one into enable we us on. be the and under will able will And volumes we just the projects, of gap on have area by quarter that of to the which on we that new has vacated this capacity were diversity move in price have we pipeline were pipelines and on see areas to only the don’t those be approach, quarter at but of take in the in these upwards connectivity of X to the receipts. to midstream our came do on as so our directly first in going that that downstream and receipt on to they in are the so has on phase the with advantage a come point, seeing continue

into a that to strong we usually start we as that do go and fundamentally story, year positioned take slower go as been Gulfport we is think will fourth quarter it’s So be into of. next which advantage but and

Holly Stewart

Thanks guys. Great.

Ty Peck

Thanks Holly.

Operator

question next Piper from Dave of ahead. go The Jaffray. Simmons, Kistler is Please

David Kistler

morning Good guys.

of in dock on between question, terms the can follow-up for us breakdown? SCOOP dock you Utica that a and XX Just split quick mix

Mike Moore

Probably XX% Utica Dave.

David Kistler

curious now. Okay, think said have be would about up the you add running any right How about it and obviously And quickly kind concerns are you there okay. but, And securing it difficult be crews? in done? kind no grasp just to relationships it, get Utica of to on there That’s to then, can that? have of frac you efficient crews How a helpful. crews I started when already

Mark Malone

can Mark that. Really, I it address Malone. is

place have with your for we our XX% worth up locked are two We in which are have working lines. year the XXXX and we’ve on we crews if up agreement call crews all and remember now my cross XXXX and for services of secures adding last long-term you in I got the Mammoth, that

towards in XXXX are now. right for that We working

have in we all So QX. four locked up plan crews that currently we to run

Mike Moore

up. for sure to want what needs. said So we we and as we just could and the to but locked doing you so an make are Mark know, are crews secured us other got just folks we not that about and that’s XXXX just reemphasize I for activities, issue our timing is quality so what XXXX I'm their the ahead it everything get them early sure and needed that that

David Kistler

activity sort one the well. us down to are Utica first thinking half busier on be we rate you of well directionally do I going I and that can’t lot great. completion to growth the just for up it’s we necessary and tell because year how that you think are about getting detail, is are in start you SCOOP turn the of of but I thinking yet going working of last have and have then of that? about about We probably terms going just of you interest a be break all or the… That’s both that’s don’t XX% to kind sales, to maybe can appreciate one

Mike Moore

on slightly inventory. year-over-year that somewhat but docks the benefit one will number Yes, what those thing going decoupled of the because tell you The dock be it’s I activity, of line term to on. Dave of is rigs be completions the drop lower directionally highlight of I’d to number do because that and we have

David Kistler

given certainly give CapEx could like, seem are you be BNC? be would color we it say, point, a on you that can that as those not that, To to buy incurring lower any significantly year-over-year going

Mike Moore

It we completion or drilling are be use should trading significantly sure I'm some There you dollars. dollars go. are we would we word. just I lower, But case, not trading. some that this trading, are In

David Kistler

guys. Thanks much. Okay. clarification the I appreciate so

Mike Moore

you. Thank

Operator

go question Venker Morgan is of Stanley. ahead. Drew Please next from The

Drew Venker

was is and you prices allocation prices would how Mike SCOOP Whether I change oil that are $XX or capital to and $XX everyone. year the morning between anything if next about range. Utica? talk oil Good allocation capital hoping materially about sensitive

Mike Moore

It doesn’t us. really anything from Drew. It doesn’t change

priced SCOOP We the oil way. very is in side SCOOP, the of the are liquid a robust of side obviously

levels. and in so do the in play, we there we really think. Utica wet improvement to oil make disclosures prices We of see in we window, dry gas both that. liquid go in So activity consider in window wet and don’t have got focused some don’t at of lot to to like of oil that acreage and equity is remember point our can gas allocation sustained a in activity some will well you I gas up Utica, I our time think for back think prices our that’s affects do I

would are up add at we I the our a fixed that pretty program conversed basis side are there. is thing one we of Drew, next de-bottlenecking think year. original the for on looking of in is northeast I the

an on the well. material as So obviously seeing uplift basis in provide does pricing side that gas improvement

those have you to So kind together. at look pieces two of

Drew Venker

Okay. Thanks.

I that right. wanted question, Just just to to follow-up another a clarify, make heard sure

your that were it change you if next that right hear for year? were materially higher whether probably plan, -- would change asking wouldn’t plans was year saying wouldn’t I that Someone next prices did capital

Mike Moore

your Drew, plans. it not would change probably

Drew Venker

Okay. Thanks.

Mike Moore

Thank you.

Operator

That’s time over back today. the closing the questions call would like all for to Mike now turn remarks. Moore we have for to I

Mike Moore

We questions, your Should not team. call. time hesitate concludes interest Thank today. investor you. relations appreciate you our do have please to out our any and reach to This

Operator

This concludes today's teleconference.

this your participation. time. Thank your may at for lines You disconnect you

Gulfport Energy (GPOR) 2 Nov 172017 Q3 Earnings call transcript