GPOR - Earnings call transcript Q4 2017 | Gulfport Energy Corporation

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Operator

Greetings and welcome to the Gulfport Energy Corporation Fourth Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow formal presentation.

As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Jessica Wills, Director of IR. you. Thank

begin. may You

Jessica R. Wills

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

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

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

Michael G. Moore

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

I'd today. This Donnie's first First, of to team. COO call call have we part Gulfport as Donnie earnings to as welcome like to very are the the Moore and pleased Gulfport's him is

XXXX, of XXXX flow. the million of Gulfport in on adjusted and and million approximately for $X.X announced was revenues, natural of Gulfport. pivotal income generating a As adjusted press EBITDA $XXX.X reported yesterday for full-year of operating year million $XXX.X approximately evening, net $XXX billion release adjusted oil gas cash

year, we of as strong throughout across a acquired our propelling scale and repeatable of experienced production the exiting asset XXXX. X.XX a XXXX, recoveries underappreciated further per Our XX% day, the feet at the growth, delineating growth increasing newly began year cubic billion SCOOP to size We reliable, journey enter the Utica significant and provided we and multi-zone year gas opportunities Gulfport of over increasing equivalent and position.

X% expenses continued and the XXXX, processing by Our $X.XX corporate XXXX, we year exiting gathering of increasing are G&A, largely pricing the with for driven midstream our liquids returns our expense Mcfe. over XX% Furthermore, our which portfolio year. efficiencies at during and received assets, realized witnessed per uplift improve by when tax, we overall and the expanded trending focus from approximately production EBITDA SCOOP liquids-rich our our our coupled margin reductions another per-unit structure to approximately the XXXX LOE, throughout cost our over on year includes operating and year decreasing lower,

lateral active had an just in average wells marked Utica, released On Gulfport year six in The wells spud-to-rig of XXXX of XX% we under gross field drilled X,XXX public length an operations We to utilizing rigs. assumed in our front, results. for an as approximately down spud the release operated averaged the XXXX curves. XX.X type days, the XX feet and, normalized over X,XXX-foot lateral, and full-year the were

normalized bit Turning continued to average year length SCOOP, as assumed X,XXX gross acreage spud turned-to-sales Shale were wells of a release and the to XX our The average gross a days progressed, as the the and completions averaged with X,XXX-foot type XXXX. were wells to lateral, Utica see XX.X XXXX. the during We X,XXX The spud-to-rig public in during improvement released an of In we feet wells in of wells lateral lateral during length on XX approximately feet. had an at XXXX. stimulated curves. drill the

of completion the wells, well further stimulated XX a which X,XXX very we've Springer results And one wells, Sycamore XXXX, remarks. and with the pleased On XX Woodford front, touch we length collective average turned-to-sales during his feet. gross to-date, Donnie with on will including been in well, lateral one

comprised or with in to in additional in meaningful on value, XXX% and increase resulted the the held had versus quality Net base. year-end We $X.X an growth significant growth in natural totaling Reserve XXXX the witnessed our acquisition, Tcfe PV-XX at XXXX. a base speak acquisition, our in added highlights XXX% prices results, to adjusting XX% liquids gas in SCOOP year-end Gulfport our XXXX of of X.X All-in-all, our added year-end report that the total number XX% the reserves and year-end XXXX and SCOOP asset totaling operational proved natural XXXX approximately also increasing XXXX for and the asset assets Gulfport's XXXX, billion of or gas commodity XXX% reserve additions Tcfe X.X improvement reserves. year proved and accomplishments increased over Our for during X.X year-end combination the proved depth many of for our front. year-end XX% for Utica oil. SCOOP and and reserves the Tcfe

of are cost on the acknowledge outspend ever of discipline led enter activities than and an to maximizing level capital focused However, we our And intently returns. budget. XXXX XXXX, more as we do we

Our activities to reach financially for align to and of can scale, model the a and XXXX size rate have of XXXX environment us our development navigate and business strong current we within and beyond. flow deliver a where operationally, commodity both enabled cash growth point

Looking at capital our XXXX program.

funded firmly budget also prices, today's previously our positions while align to generate managing at growth. to commodity free the believe, flow total business XXXX As strong announced, be able us providing We production to cash capital flow, approximately while program on decision. within XX% XX% expenditures year-over-year. the growing within based And current our will we pricing, entirely to flow cash production be cash business forecast prudent strip XXXX is capital

see cash more available value generating and opportunistically proceeds The free to at repurchase own We commitment intend certain repurchase underscores XXXX, activity recognizing forecasted bit. in potential planned in our value which versus addition the repurchase demonstrates business utilize generation At stock and prices, sale will to production for for we In our a our today's further drill we of model, announced have reinvesting our to our base, stock performance the additional includes our the flow stock from commodity and liquidity, our in recently program shareholders. operational financial and asset we investments. growth confidence during top-tier program. XXXX

detail of XXXX specifics Donnie to with the the more turn our plans, call and and So, over to then in operational the budget. this a provide provide and mind, Keri of summary surrounding I'll quickly financial

free revenue currently the lateral During $XXX And strip forecast at flow spud we increased our pricing, capital our approximately approximately lengths during our million, bolstered stream. forecasts we on today's $XXX wells from Utica, while spend XXXX, by be program. entirely and is XX% are Gulfport hedged generation by XXXX focused In average over during XXXX on funded maximizing cash XX% stepping will capital to million XXXX, within our activity cash XXXX our down we have program, efficiency. flow

estimated positioned plan we efforts delivering lateral the slightly on well every for efficiencies around invested. operated over leasehold to addition, and our year, lower our program, our while is XXXX. program and XX% holds XXXX XXX% Utica XXXX activity, wells in more SCOOP, In recoveries Gulfport benefiting this the In and our effectively on all identifying working increase us approximately Similar optimizing field. our turned-to-sales during both to XXXX turned-to-sales interest dollar centers to program, run lengths wells spud recoveries and do average by in

the be to the continue as expand the own meaningful we our set well Donnie play. I the new plan from and field. now to surrounding activity, call results specifics we performance including emerging on well out the of zones from play non-operated amount in the and history with as XXXX addition, operational over will the in operated initiatives the to turn of data as participation in to forward pleased production on our In well receive XXXX, look more

Donnie Moore

those on good the all and Mike, Thanks, call. morning to

me Let how team. am excited I by Gulfport saying start the be to joining

a has underpinned Gulfport look base, know, the many I high-quality to team, success company. talented sharing the contributing experiences forward my As future and to and by asset of a

around we mentioned, and maximizing every capital with centered program XXXX invest. is capital discipline Mike As our dollar returns

dedicated principles, how the details walking program a out through time bit of laid have We the of the in I to a field. the well-thought-out execute plans and to those team budget and spend will

budget. to several As XXXX and service it adhere with in actively services at for now relates our to been our locking months have providers activity, capital we working prices to

in operating of scale our entered of in per-foot contracts maximizing running services and centered focus with contracts have will and SCOOP. today play, and and activity lateral levels have be of on We to those window a place rigs the negotiated XXXX secured release both anticipated rig In follow around have realizing a the year. the plan our We lengths full Utica metrics. tailored for dry to at activity beginning our our March. the of rigs forecasted it's of gas program and play, majority the for on three the economies And Utica, the in note, we important the to

generate run XX will this will forecast average during during gross of rigs the on We Utica level XXXX. activity XXXX. in wells to X.X XX We

addition, wells approximately our to net to taking will Gulfport's In eight non-operated place intend that provide to activities we horizontal seven interest. on participate in acreage

On be half to in XXXX and crews utilizing resumed two plan the of for play to of today XXXX, the the first first our the completion year. front, the we in completion schedule activity quarter Utica. weighted largely the frac the during frac We're

gross and schedule acreage turn-to-sales be to liquids-rich wet the quarter XXXX to We XX our the to year. largely XX on where of this to efficiency to we non-operated to operational gains, and on for second plan expect to activities and result interest. plan bit touch heavily we turn-to-sales play, the focused on wells XX during later. We XXXX in the is in which weighted SCOOP, results continue of expect to gas the X wells outstanding the third where participate operated a of over I'll both to net to Switching see area well Gulfport's XXXX the turn-in-lines

rigs in are operating rigs the We play to currently and four release mid-summer. plan two

of three gross XX We to XX average will during run operated wells forecast operated XXXX. activity on will generate We XXXX. this rigs level during

participate interest. addition, taking on acreage In five non-operated four approximately our net expect to place activities to we intend Gulfport's horizontal we wells in where to

well six to we recent participate acreage and one wells on North our in to two in horizontal Springer we Alongside well, front, earnings well have Sycamore longer-dated XX activity to wells Cheyenne our evening, and to plan and production to completion completion as the On year yesterday we initial on on the run activities Gulfport's a XX consistently the Woodford crew interest. frac gross expect Serenity the turn-to-sales provided well. non-operated Lauper turn-to-sales three as rates throughout wells where locked-in net SCOOP

out to rates on. focused history focused pressure utilized and resource, XX-day And really value while the We to for production rates managed we technique. set. we're results receiving or even the initial drawdown the by from initial are on more recovery exciting, and longer-term long-term build from of been We're play. what continued baseline have great encouraged see simply the our the the the the are well we're that's And

a those the years few that last Utica, have network the real created. for extensive protecting learnings SCOOP implemented the recipe my for in proven the program in other basins long-term maximize managed the did by fracture on that's quickly successfully used many U.S. experiences optimizing recovery, early pressure Gulfport the used to in have value while As we've value. technique is the we here across in And I and We

technical more continue the update us data front, subsurface On and our the resource. history, and understanding production we is to to refine which of get allowing

in so us the production Sycamore subsurface different up helped on target, XXXX last back these the team those for scenarios. and one regard how invested. our results every of and every dataset, reservoirs our spud from applying the with in our X-D most information latest cost landing the planning, targeting extensive all frac major should be on are this detail updating Springer, success rate, our very formation. well to can tracer completion now at continue of well history, and the understand perform activity, well discipline option rigorously strides activities. we're placement, our XXXX, several XXXX is with such operations We're In reprocessing and understanding merit. We includes year this participating are and are fluid well we dollar upper summer, This where phase seismic as With analysis, staying the plan models of at results, lateral we'll and we continuously in and of has practices in focused drilling this the laterals to operations, course, subsurface interval results our non-operated of core exchange to the in target exploration about value development XX% to evaluate Sycamore ensuring program the year. also seeing, we're Overall, with make a portion half of and geosteering early XX% front, almost our best adding we a the learning tests and the under looking during

continue our and three business; areas turn her consistently over we cost for as in Keri through delivery; not in of tremendous three but Doing goals well focusing call and will well base production these environmental will on doing targeted defined set improvements the year. and safety of and efficiency. have I second, we plan, momentum them building go deliver first, With and only new performance; third, XXXX, this our During on all comments. to established that,

Keri Crowell

morning all. Thank to you, Donnie, good and

mentioned, allocated XXXX, Gulfport's directors within our has a million, our includes in and Mike current approved $XXX to announced budget for which forecast be million capital will we budget strip Utica at to $XXX approximately cash flow entirely million asset. This to SCOOP $XXX is approximately As activities, budget to and of of release, board XX% funded million as drilling completion approximately of $XXX pricing. XX% which, on our the

activities, forecasts $XXX non-D&C invested Force in forecast million Strike million build-out capital In associated X.XX billion At average approximately $XXX associated will XXXX. invested this XXXX midstream activities addition, we with daily be be its expenditures of and with XXXX. our level to of day, to the in during to X.X including over capital capital leasehold XX% to per cubic spend, increase XX% billion Gulfport feet production an

and average of turn-in-line of XXXX to effect and to be in Donnie basis current Mcf of XXXX. at the expense, quarter differential natural the we portfolio, play regard first both With forecasted program resumed to upon strip range of forecast and quarter fourth production the differentials quarter flat daily quarters current NYMEX settled expects the Utica transportation SCOOP, As is the XXXX, monthly firm our the during of based completion including and $X.XX first expect current third be we the and currently before including $X.XX gas. derived XXXX account, production weighted hedges second marks. and relatively to this activity XXXX. prices for from of into price mentioned, realizations, in per to This to Utica to Taking the company basis

gas XX% approximately of realize to XX% for approximately $X.XX expects to for natural liquids, of and Gulfport oil. WTI $X addition, to WTI In

X% continue growth realized the reductions of SCOOP on will the focus Utica, our dry XXXX. the and efficiencies continued decrease to cost gas our we expenses, per-unit scale asset in from cash approximately realize from full-year developments of terms forecast in field. from economies In We over by

directionally low their ranges of purposes, provided move and ranges, by XXXX. modeling LOE, of tax we For gathering high end and at anticipate year-end midstream the their XXXX processing, end and the begin towards per-unit production to

our On program cash production providing year's capital for portfolio of surrounding our per MMBtu, program. over our has natural future $X.XX continues profile flows, expected XXXX XXXX degree XX% certainty underpinned priced certainty with provide increased a the and at our cash this front, gas to hedging the flow high to of

In in locking-in very years, at addition, outer the the we in a book active load have building been in XXXX per MMBtu. hedge base $X.XX

continue to will realizations to and on and line We opportunistically hedges our flows. additional layer of sight swaps to basis cash provide

balance the sheet. to on Moving

hand. base on approximately had of borrowing XX, billion, $X.X elected year-end and billion, with we million XXXX December commitments of undrawn cash our $XXX As of of at $X was

continue to reasonable out adhere throughout on our of de-lever grows X flows projected a debt As EBITDA today, our the our and year we XXXX to trailing X at to And would our activities ratio as metric. leverage XX-month for net from be XXXX, expect we prices, based forecast commitment the to maintaining strip to lower-half XXXX current at our EBITDA. plan year-end to we times target of of leverage cash laid at

Mike In to sale of the monetization activities, during occur the Force certain our repurchase now turn of equity investments Energy interest from share XXXX. should I potential Strike not are addition, of the back the Mammoth assumed Services, portion drop-down will program Midstream which XXXX receive for we proceeds including or and call the either closing a meaningful have over potential to of remarks. in in Gulfport's

Michael G. Moore

for committed discipline our to value strict Keri. you, and shareholders. capital Thank we In closing, recognizing are

growth delivering at our pricing capital generating flow stock. our XXXX, reinvesting base, strip current quality are aligning flow, total spend free and asset cash During we to from undervalued cash peer-leading in

also focused XXXX we're program beyond. the on on this XXXX, and year's for we As of plan effects

specific while as within both efficiency, we we in in growth. in at low-double-digit both have DUC prices. program expect our eliminated we we XXXX, beyond decrease the exit-to-exit and the an XXXX and on items. current of we vast project outer-year inventory as majority XXXX. Utica, provided look have cash flow our operationally And increase capital not spending large as non-revenue-generating year-over-year expectations, of is realize we into significant toward Our capital a And we by head Furthermore, see non-D&C XXXX, amount strip leveraging Gulfport positions to growth invested

stock in have are significant eager initiate as earnings share Lastly, repurchase in program reinvesting we our of we restriction value prices. and today's out to following our see come at

XXXX, While aggressive the the our complete the for sale greater if investments, plan is be repurchase questions. share we expect at plan consider joining repurchasing than repurchase from we shares anticipated would and sits authorization we for At Thank for forward answering through the equity prepared to look expanding should program board your then questions to it please our earlier certainly us where today's before again price, today certain or conditions proceeds the open receive to you concludes of this permit. participants. size remarks. year-end the lines phone we from This Operator, beyond the for our up of today. and market call

Operator

you. Thank

Our Please SunTrust. from go ahead. Dingmann first Neal question is from

Neal D. Dingmann

Morning, all.

Michael G. Moore

Morning.

Neal D. Dingmann

Donnie, or just question the you on for Mike, SCOOP.

Given there year? that your I'm rest notable drilling going of positive, wondering returns the for rigs the look drop plans forward. any why so just s

Michael G. Moore

basins. that two good We Well, we in you've SCOOP, have to I held are got certainly there. great the mostly returns delivering we're think but consider these

have returns that gas dry delivering we there. do to some that certainly need continue hold acreage consider. So good still have Utica, that in to we're there. priority window don't have that we to we We

balance, program the the both tried So that between we achieve that just to could we little we to achieve so best activity, all possible basins less in of goals basins. our returns with and a generate needed Neal, find the two a

Neal D. Dingmann

for the is that really it Thanks. is, of follow-up the And Mike, the for that year? more is the on one incentive of just flexible is flow? How or a rest last the cash the the CapEx directed rest towards free a CapEx just number year. maybe what bit sort flexible of or Is

Michael G. Moore

certainly. program Well, more turn-in-lines CapEx I'm what year But mid-year weighted, mean, not flexible our I front-end loaded. definitely – in sense? are is this our

at targeting we flow. $X.XX free So year, XX% in cash mind, Keep hedged this Neal. are we're

and our on We this program are loaded locked year.

the us not see are stay to that on program. going we've our You to and announced. We're track stay changing and going program focused for disciplined

Neal D. Dingmann

Thanks.

Michael G. Moore

you. Thank

Operator

next Ron Rice. question from Our Johnson is go ahead. Please from Mills

Ronald E. Mills

morning, Good Mike.

Michael G. Moore

Morning.

Ronald E. Mills

a Sycamore? the little a little of little the above Just they're rates to XX-plus-percent not just curve IP relate bit Can are the even wells bit that just on a you color rates, you type of how continue also flatness look down that? dig bit. may but to think on to see improvements expectations the SCOOP and the Can about talk IP like on provide including do the declines, you you your what those

Michael G. Moore

like we resource. We we that add going this think Donnie, well We the SCOOP want We here say I'll to do some Well, tracking Donnie Sycamore we're and activity more first our too, wells. all year have very liked to as continues this for And pleased first the a always gives We get in wells year. did are before a diversity in some curves. really opportunity the it drilled know, well, improvement to liked and We to perform to liquids then the liked and let rock. got that? of from type XXXX above year I it they jump now. see geological can us. nice would with very we I'll program the we're good as well. off We our Certainly, evaluation lot extensive even you delivered liked our you We that we've component SCOOP. what we're better that. rock. and that an purchased seeing the The last you our belt Sycamore what under

Donnie Moore

mean, I performance to on, Yeah. the establishing performance, is and think well well strong I it. strong mean, baseline. we Early this see key there said well-after-well. Thanks, mean, we're continued I Mike. you I repeatable.

add done never think look more I the with we've value. led continue And way learning. to completions. optimizing, We'll at enhanced we're these

Ronald E. Mills

focus alternative think light some you be and steps then, in of discipline the on side, continued sources some of especially mentioned about yesterday. value you potential that on sort activity a do is, there's EBITDA of get I try what guess dedication, a some to on acreage I XX% that of sense of is the announcement think other realizing via capital roadmap Strike to could or you some it will Okay. valuation capital terms drop-down What I'm kind generating of know generate or Force? of EQT's buyback Great. for big of the as trying And sort what to that interest? in create

Michael G. Moore

Well, you've take or exact first. should past Strike I be is I we now messaging event. and I'll for think speak Force days but a clear Certainly, few timing heard drop-down, confirmation the have the that that EQT it XXXX can't it's EQT that of

we were that. see happy So to

For market. shares, the the certainly to we'll TUSK evaluate continue

Ron, it stock for idea would us. management be events seller to we that more do sell. when be anything a contractual a would timing some those in of buying But least certainly, thoughtful writing We the have that on is specific confirmed seem in board and we what's But, tag And back that to one don't the can today, want liquidity at appropriate of right XXXX. stock. if of to stock decide events, those will sense disrupt of that on where the our team then time. either we at lot confirmation make consider We have exercised will then, our I'm excited

Ronald E. Mills

can buy such? buying or off. can buyback periods back, you start the the start – jump I'll you already when started given from timing, actually and a have then potential And And you blackout

Michael G. Moore

That's Yeah. good a question.

until So, earnings. XX really hours after blacked locked we're out, out

So, stock. buying our that would After we start next back can be Monday. certainly that,

Operator

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

Timothy A. Rezvan

Hi. folks. Good morning,

Michael G. Moore

Hey, Tim.

Timothy A. Rezvan

XXXX? on to to you believe Did drill you hoping could on days success. was SCOOP wondering spud-to-rig that I more baked say kind I release provided commentary you on the can numbers. and XX% talk heard some little wanted of talked and think of you if And I geosteering how you in correctly. was for bit XXXX XX in of things sure you I a about in was what I improve kind is those a about make

Donnie Moore

Yeah. is Donnie. Tim, this

that. I'll But our take so are we've number drilled, was included our XX, recent looking improvement on most XX in to XX XX in wells for for release. range, time. XXXX, I'll Yeah, plan, stab roughly tremendous think I amount you what days of we're days average left that's short Certainly, XXXX a spud-to-rig X,XXX-foot at in that at XX XX-day days. is We've with remind that a wells XX we've a so so a lateral. to seen XX- of about

we're now, do. get continuing we at right better to what focused on So, consistency,

target. about the talked You and success rate

is I and identify we're different pre-planning great then features think phase real-time. and making as fantastic as of section, progress our subsurface job team's there. on understanding a And adjusting us really helping these geologic coming in up drilling well the our depending done really with whole recipes the

to this those numbers to down. year come continuing forward see look So,

Michael G. Moore

I'm quick And, this year. about I'll real set pretty the Tim, add just opportunity that excited

the days great With opportunity therefore, the feels we and cost a that well. efficient think the certainly we've more the have way But modeled to conservative wells, things for of reduce and, drill XXXX. we've it be leading-edge in like we've already I been seen, as out very expectations reduce SCOOP

we us So folks fractured can't that X-D say as faulted, the steer the I to subsurface Also zone, about out here allowing the efforts on in the We enough of the efficiently. is systems and in been these zone, side, very we the our cross seismic reinterpretation in land we has of SCOOP. have there. tremendous the stay though, geology

excited about we opportunity ahead of very have the So, set us.

Timothy A. Rezvan

rationale completion know Okay. the the enhanced SCOOP. a more the No, on completion I appreciate that driver big side. of the response. just And I uplift as one get into then, was to

on wells tinkering you Given standard belt, dial-in that now of dialed-in margin you under much that? completion and doing of to is your how on have sort the a you what your are how handful are

Donnie Moore

more. have Yeah. Tim, but we're I We've again, eight we completion very again. here. wells consistent Donnie this with kind mean, started our fairly been with or XX about we with design is days pleased of where

on We're of early performance wells performance. seeing yet. repeatable and still it's the So out tremendous these

baseline. watch evolution we're to just de-risking next continue it additional the up that So we kind recently to the is Sycamore and establish as that came well, of have well going zones And whole on.

a So, fantastic well.

lot at. where a but very here, with optimization upside, do to So, of pleased we're more lot

Timothy A. Rezvan

terms kind are foot? that X,XXX, you of in the... Is So, just X,XXX in per proppant loadings, that pounds of the

Donnie Moore

standard our Yeah. X,XXX pounds foot per is design.

Timothy A. Rezvan

Okay.

Okay. Thank you.

Michael G. Moore

Okay.

Operator

question go from ahead. is next Please Wangler Imperial from Our Jason Capital.

Jason Wangler

Hey. morning. Good

Michael G. Moore

Hey, Jason.

Jason Wangler

but on like you've the got acreage Mike, with if pretty things went as some the up SCOOP, some in if been more had there and getting slides, up acreage a it just nicely picking curious other the net looked just position? you'd on or basis. We're that looked in like familiar seen some was been location more you've count that the

Michael G. Moore

Not that really. that year, successful a of adding Jason. were extra just guys in last acreage It's our result

Jason Wangler

that, what that you're area up and more picked looking Okay. as And certain at you're going looking you guess you're I a there at of forward, both is what focused kind in where that think on within kind is you're on as well? plan? we on of gas the wet about that the endeavor the the Woodford but side, should Obviously, focused focus

Michael G. Moore

acreage infill us next for just focus our around the few think years the I for is existing units. Well,

in-field now. gas wet we're program were on Donnie gas our But dry know, they're that thing But mentioned, Woodford well. on normal for in Same really would pretty aggressive don't and have, an I acreage. you Sycamore be think, you like we tell just right focused We going fill I will two say, scheduled leasing it as We for units XXXX. in units. those already. As year, I'd the robust units the do Utica, in XXXX, have, wells then, around this just leasing

be to to add interest working to this lot year. close there's in-field I going a not units in already lot acreage need because think a so our got we've of XXX% probably a a of And

So, a probably. lot less activity

Jason Wangler

Okay. I appreciate. turn back. I'll it

Michael G. Moore

Thank you.

Operator

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

David A. Deckelbaum

everyone. question. Thanks. for Good Thanks morning, my taking

Michael G. Moore

Yes. Hi, David.

David A. Deckelbaum

in to wanted remarks. I prepared revisit comments Mike, your your

objectives in kind still XXXX. You thoughts guess reduced XXXX growth on kind your said on your lot what and in XXXX quarter were a you're last the I of you before thinking growth what said you production echoes which guys of of about low-double-digits,

of guess, now provide on we more Utica you're that. XXXX? guess program you'd was thinking I about Utica I should balanced dollars you filling in So SCOOP bit capital expect how a hoping And with efficient. between the of capital in commitments, just I terms your become then, said a little more and effectively more could color the you firm context in

Michael G. Moore

Okay.

forward, and is So, for We Certainly, that when XXXX, are and that. we also to sure and XXXX, for not want model XXXX, thinking intent I cash on want about that were in we are XXXX, were free we just XXXX, discipline to don't XXXX. idea thinking clear about committed capital a generate we bubble. the flow. to going The was we make

XXXX, with But to that just could our expectations that works. for current growth. double-digit deliver model we find that So, trying program our is

low- then, which that's mid-teen similar at I in to expect beyond of And better. would that our So, XXXX, to growth not think least well. we peers, as comparable is if growth kind

of certainly end the are midstream we the is Gulfport for at with drop-down thing the year. think about and for this our leasehold spends expectation I So

So, no budget, what had for a much see maybe spend. third we've historically, then midstream leasehold and smaller you XXXX, of should a

So again we efficient should as beyond. capital your we become question? and answer into more Does that XXXX much move

David A. Deckelbaum

I then look then, the does. just by And guess SCOOP balance plot and mean also, that all X% I the is you SCOOP so. and It between guess right outpacing now, on I at or maybe Utica you Utica returns

Michael G. Moore

Yes.

David A. Deckelbaum

times, greater firm room it the commitments seeing Utica? cycle in seems incremental you you're like guess, to on I for sounds Should SCOOP as especially in your the there's operational improving in there, fill we And don't the XXXX, dollars have gains with portion learnings your more and a of there. be side like efficiency on

Michael G. Moore

quite So yes. frankly, the to is answer that,

this You in that that slide to little our changed we pricing from you see what in in the getting saw is areas. better return returns gas time window a slide reflect wet we're current SCOOP. And that the both

we So the SCOOP a did capital this allocate actually little to more year.

were we we're XX%/XX%. think year I and Utica-SCOOP, XX%/XX% last

expect more to see SCOOP You continue a going that to probably forward. trend the little towards bit would

had needed most do. beyond that XXXX, we Now, some of XXXX-XXXX, mind, for to we'll that still keep acreage in we But holding done. have

allocate basin, to as really the direction. I could good certainly is a to point just say that this point, SCOOP capital. to now certainly, actually. it's we as right more above at have those And think, so be Utica, but It's your stay a hard And see. basin returns long proving good We'll to looking

Donnie Moore

the seeing. you And Sycamore add, with I'll one that as thing mean, really into and Mike, we're SCOOP this is just outperformance the Donnie. wells, this I potential baked David, think about not upside the whole in we're seeing picture, those that's

So, upside it, now of get We're And with the seeing operations. let's a that just consistent more in think consistent it, now Mike right that, said, options. is us be that tremendous to gives there our SCOOP. as I lot and delivery

David A. Deckelbaum

Strike just to to beyond program. I that your with or guess, proceeds it from dropping like buyback what augmenting add would done, some That be conceptually guys. already or assets to share you, about supplement of in that. comments, Thank shares, those willing wouldn't I Mike, And the you've be TUSK earmarked Force potentially capital order necessarily JV confirm potentially drop-down wanted activity

Michael G. Moore

That's you're Yes, exactly right. correct.

David A. Deckelbaum

Okay. guys. Thank you,

Michael G. Moore

Thanks, David.

Operator

Our next from Campbell ahead. go Tuohy Please Jeffrey Brothers. from question is

Jeffrey L. Campbell

morning. Good

Michael G. Moore

Hey, Jeff.

Jeffrey L. Campbell

cash? The first to Gulfport's of it obvious, but above Should any pretty buyback is windfall preferred think question is the use plan, ask prices going land I anyway. commodity share I'm

Michael G. Moore

certainly we sit XX% anymore. think to Where growth, plan growth, We're anybody wants for We're logical, is crazy growth and hedged. our the grow XX% XX% with think I XXXX. today, market happy rational delivering don't which we're to I

on So program we're year. pretty locked and this loaded our

logical for improve, prices answer if us. is, a the option So that be could yes, very

Jeffrey L. Campbell

as intervals Thank most plays. U.S. evolution is of third which can, emerging might leg If you. resource Longer enhancer successful in how Great. the and production it and landing Zone commercial Okay. bigger the visible? benefit choice stool. be can landing in zone laterals an Gulfport-SCOOP been have most results of further completions a important this

Donnie Moore

is wells. at stab that we're We've early this landing fairly Jeff, Yeah, consistent we're Yeah. on. with one. take Donnie. these been I'll where a

You can results here. see the

a I thick, got interval. XXX-foot, thick I to mean, very very is mean recall, XXX-foot the SCOOP You

You think about Sycamore on top of it.

So we've got a lot of options here.

only where have lateral because we here. you these at looking we're vertical in the it's So units, think but also aspect you on resource that land, of about also the when not spacing

Jeffrey L. Campbell

are one wet the how could if Okay. potential do results one return gas returns And presentation? to early, revised Woodford Great. you've Sycamore but in last you think know recent I I in. the most the that about sneak compared

Donnie Moore

I gas mean, it's right our now, Woodford pretty performance. Yeah. much in line wet with

right it's assume be would right line I going So now. in to

Jeffrey L. Campbell

Okay. Great. Thank you.

Michael G. Moore

you. Thank

Operator

David Our Please last from Palmer. ahead. question go comes & Coker from Beard

David Earl Beard

taking Thanks question. Good everyone. for morning, my

Donnie Moore

Morning, David.

Michael G. Moore

Morning.

David Earl Beard

questions. Just picture two bigger

M&A on surrounding you general in M&A on can anything specifically? comment view Just your and environment

Michael G. Moore

drill. these We're talking We're at got We're beyond. XXXX about. that to not to horizons our pretty SCOOP in plans anything. other not looking on of and excited we're We've focused delineate about inventory anything. We've got head-down for lot really a

do and thinking plenty about got David. we've So M&A, really to not

David Earl Beard

helpful. just to that's secondly, then, And shifting buyback. No, share

variance prices? color asset to commodity or you Just were about can for sort authorization, board actually you give out would we How asking a in of the piecemeal that? to sales longer, that relative you us authorization try if use be there would and think up any get would plan you given on this should the to bigger

Michael G. Moore

Strike these It's going authorization additional we'll that first just But, that say find a on come look a our have it what event, to certainty opportunities just seems is message out of to lot it and liquidity at board hard time, at around I time. at the there then that the Well, and is certainly, how event, liquidity to time. might if exactly timing to events there's which investors think, Force we're talk to least David. the appropriately evaluate about, all, have at of

David Earl Beard

Thank it. Appreciate Great. you.

Operator

I'd Thank over you. the back to Moore turn This comments. like Mr. the for to session. closing concludes question-and-answer floor any

Michael G. Moore

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

Operator

concludes your for you teleconference. This Thank participation. today's

You this may time. lines disconnect at your

Gulfport Energy (GPOR) 22 Feb 182017 Q4 Earnings call transcript