GPOR - Earnings call transcript Q1 2019 | Gulfport Energy Corporation

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Operator

Greetings. Welcome to the Gulfport Energy Corporation Q1 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] Please note, this conference is being recorded. conference and your Research. the Manager Jessica turn Relations Investor now over host, to Wills, I'll Ms. Wills, may you begin.

Jessica Wills

call. Director Thank you, today's and quarter conference Keri first Gulfport call Energy Jessica and good CEO morning. of Welcome include David Crowell, XXXX and Speakers CFO. Investor Relations. of to Wood, Corporation's I'm on Wills, President earnings

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

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

David Wood

Thank thank deliver cash XXXX for outlook call. joining active announced of on off in the previously to flow morning's start is Gulfport commitment on budget, and strong budget, us this you, generation. a operational our you on beginning areas remaining asset capital XXXX to our all to track Jessica in free XXXX capital year and and core

earnings gas following evening, $XX.X cubic activity of muted basis For million X% increasing equivalent the Production adjusted $XXX.X the first XXXX. alongside yesterday and revenues XXXX net of quarter per of announced averaged fourth in on X.XX approximately EBITDA. million adjusted of and we've quarter of natural quarter of reported income fourth day level quarter on the approximately oil feet $XXX.X over a as adjusted expected, of generated as XXXX first of debt-adjusted and for gas coming a billion during million per sure the

focused running of on feet on remains XXXX. per X.XX ground, X.X total of lead the and This to assets Gulfport's that our the comments plan. that remain I first inventory our in XXXX and expect positioning full growth spend average that billion of completion well to strong will As our X.X call average of expectation our of billion funded Shale total free forecast We and quarter progressively of is program during XX crews schedule clearly Gulfport in quarter-over-quarter turn-to-sales previously range SCOOP production turn-in-line throughout to of activity second in coming cubic activity will business on excess my announced the February in our I Utica XXXX We the cash generation generation day the XXXX. robust capital from committed year existing will year of our entirely wells active equivalent active months an reiterate we an continue reaffirm XXXX gas building to for us net that in and execute production X.X as cash to program result drilling flow the to flow the communicated we level horizontal started disciplined we as will organization and million. capital and flow a on this on in XXXX. and capitalized DUC capital cash within $XXX and quarter which mentioned, provide rigs be across reaffirm discipline, excess our

and planned, meaningful capital year the be the provide and result, capital the XXXX in Gulfport in capital and of first during first is will of fourth land the the in during during of the weighted and bulk decreasing a spend million with $XXX to budget free flow of generation $XX that half program XXXX. third as capital time. invested invested the the million half As quarter, the We D&C year heavily cash estimate first quarter

infrastructure comments second our simplify Marcellus recently this of during Utica program, On through plans from a anticipated agreement strategic allocated $XX to our taking am acreage of on SCOOP overlying facilities. today. Shale. water of not and And stock Gulfport divestitures reducing formation XXXX, repurchased consistent details approximately monetizations repurchase the footprint market we into including transaction I to we of long-term outstanding further the water those assets a expect We water and did development to the proceeds of for Gulfport across previous assets Shale. open to Separate process pleased X%. XXXX. front, noncore the during entered this recycling rights certain Utica approximately do transaction, our consideration in ready into currently are in our quarter few asset the in by a and handling with of the nor of from first the on to Gulfport them a to include shares ongoing monetize transaction, getting We shares included small holds we portfolio the transaction certain provide we launch continue that future to This our the divest half any position have million close portion capital an

a believe stand-alone appropriate. currently to monetization further assets would is on recognized stock these process As substantial entity, EBITDA We our to details today. generate meaningful in million growth. in plan with provide we the price $XX not value year per million And when $XX expected their

to identified funded share not to stock through and As towards is requirement not program. ongoing ongoing note repurchase assets anticipated from $XX of we as today. plan were fund million during flow requirement noncore our the and free that which noncore I a to we of to transaction these it fund of noncore the of to Again, cash our on the other previously monetizations assets repurchase from actively transaction, pursuing that program currently this to reduction. plan assets consider this million as announced we important continue the a are was organically $XXX our debt generated We share reiterate the use XXXX execute this to be proceeds assets program transaction of proceeds allocate expected repurchase of identified

capital We discipline in we quarter started every remain an operated with core and doing to In dollar the wells and Utica, safe operational Turning during more invested. quarter. commitment a the six utilizing and gross we X.X to unwavering on efficient so both field and operations. rigs budget while the had with and spud strong the on specific delivering intently track continuing year our strong areas, cost the focused roughly

at down on year focuses the a drilled quarter first release wells of had averaged And at and lengths quarter we results the X% maximizing the our drilling program lateral to-date quarter, team spud our when per I exceeded in has progress many drill and Gulfport lateral bit. experienced front the on had drilling strong per applaud an improvement XX,XXX focused feet continuous realizing lateral, lateral economies operations. foot solid length on previous beating in scale a to-date day record. average feet drilling of safe longest plant. remain Utica to with quarter Gulfport XXXX Our peak XX.X quarter in X,XXX-foot we our previous we the an during and best vertical the efficient of records over the and the full our metrics. the The and experience normalizing rig XX,XXX as XXXX the to of and we for days Overall, of we have

three began year of the to the running and active, quarter crews backlog very heavy XXXX. Utica portion completing Turning throughout into completions we carried a the the Shale, DUC in we completions

of our averaged when the and a result, during on end turn-in-lines wells a improved completion this see out second targeted with production totaled we When of and expect entered utilizing X,XXX-foot XX, to identifying March repeatable for completed length during the quarters. XXXX compared over to XXXX the exemplify focus Serenity as the improvements rig year the released of and which XX.X XX.X spud lateral during first six when of of had These spud average. robust results from well stages the out lower XXXX quarter. release lower by XX% quarter Formation. program activity our Sycamore and the middle growth of Sycamore consistent in average wells average the one the Formation, rig XXXX the normalized well representing As three also our a striving days fourth had play. two in This XX spud quarter results weights for quarter, at during we operated the of strong was third we wells schedule Sycamore in Utica our spud an on set SCOOP, wells with the rigs drill the which lower the release level progress number the and days adjust And lateral, were during areas well and heavy of wells Woodford to total completed and feet of of the quarter for of year. to the our the includes X,XXX a strong XX% in to to line year. and wells the first In X,XXX days gross isolating of The momentum Woodford

wells continue the progress our have middle the results core XXX completion which completed will seven portfolio quarter. the program a we control total X.X focus assets On of today. maximizing to-date the and of completion Similar during we lead turn-in-lines a front, is Utica, end and summary, to the wells to quarter to number XXXX the our of to and a our to on XXXX. in with within have off weighted start strong In what the we controlling include at two averaged in in and activity the completed stages crews is

and this have We allocation committed cash is the discussed the growth flow per the Gulfport. target I for Keri rates. share comments. to growth strongly for will today to over shifting bottom debt-adjusted to but right believe not from With are as disciplined only production capital we operate We we'll line leading turn line within top her future that, for strategy of call

Keri Crowell

and you, all. Thank good Dave, morning

in to announced million $XXX release budget across hedged capital the full earnings funded invest assets As year we and XXXX our evening, stream. within and reaffirm bolstered our $XXX cash our flow by million yesterday entirely forecast revenue to

X.XX average to natural be natural to and we feet of day. to range full gas XXXX cubic of quarter composed billion cubic liquids daily X.XX equivalent First the of feet XX% X.X and forecast production year in gas day continue per our billion per oil, averaged production X% X% gas, billion

single-digit In XXXX the the of quarter. quarter growth expect wells forecast production throughout currently to and Dave to for progressively gross XX we addition, mentioned, strong second as realize turn-to-sales

average basis the the we utilizing to over gas per of current $X.XX quarter our quarter the natural $X.XX our including strip gas natural range basis narrower during and below for XXXX On monthly hedges range. seasonality $X.XX and XX% and the realization Based Mcf gas into of guidance XXXX front, and range realized SCOOP NYMEX XXXX of we markets to of upon reached, a cost of transportation of narrow our per and end prices marks portfolio end during current first including and differential quarter Driven the low settled NYMEX than Utica improvement our of reiterate to for the the the XXXX. both price, natural from end and settle before expectations of effect by at XXXX. quarter wider continue markets reached, first and differentials sales expect for we the the settle Mcf fourth the the price second third will approximately

at in realize to Before reiterate hedges, oil price $X the to came of expectation realized per of $X.XX oil. $X.XX our our WTI WTI effective and we approximately

XX% the to came we results, before effect for NGL in And expect XX% to recent price to of average and realized our WTI pre-hedge of NGL XX% Turning based pricing, approximately these WTI. hedges, upon of strip NGL, pricing XXXX.

our of have an peers barrel prices dynamics expected recently. mentioned, unchanged. strip expected changing our on price the there compared has absolute when NGL realization relatively to per many price surrounding And has basis, As weakened, has been while a current temporarily remained our oil

Additionally, the our is profile per realized fully be program. position high certainty continued natural degree XXXX gas for and hedge to MMBtu cash a flow by our providing surrounding supported production $X.XX of hedged the prices at XXXX our

of element strategic our and to and flows. and baseload XXXX strong on our long-term we our layer market production continue In basis positions, the assets an swaps addition, of took and barrel. first of Maintaining development at meaningfully a supporting XXXX $XX to we approximately added anticipated securing quarter line hedging to advantage program XXXX, and of large additional cash important our sight will per oil to to realizations a opportunistically conditions provide during the is of hedges

revenues XX% realized For composed revenues and oil liquids is oil. approximately natural adjusted of and position gas XX% gas hedge in natural XX% which XX% including resulted prices XXXX, the $XXX.X first gas our of and million liquids and quarter of

first and back of of XXXX cash I includes Dave quarter will totaled Mcfe tax, LOE, per X% operating quarter closing our XXXX. In midstream and gathering expense during $X.XX call the to expenses, fourth now from processing, terms down the which production unit per the turn of operating for G&A over remarks.

David Wood

requirements the programs cash employed, Board's demonstrating our you every our to intensity goals. plan questions. dollar core on on capital demonstrates we Thank assets by compensation enhancing XXXX operations and you, capital focus flow and beyond today. all to a level to a This will at focus from low discipline balancing questions of XXXX the returns the calendar for by average lines value and well up all echo and Gulfport our underpinning This participants. shareholders. maximize February, with in program corporate our Gulfport goes our aimed capital running phone I prepared further low and for a flow to incorporate year our XXXX metric, committed hedging answering decision cash as open objectives to my comments production Keri. In concludes the Operator, measuring forward our this commitment we sustainable metric call remarks. on from supported maintain by closing, again metrics, as invest, Thank delivering capital joining return highlighting these quality is our the shareholder the generation are of for free forward. please your a heightened going plan of with full return look us the And we

Operator

ahead. question from of comes Neal Our go first SunTrust. [Operator Please Dingmann Instructions] today

Neal Dingmann

you the little average better. I side million day year to help basically I I bit, Dave, in low order I'm remainder of year, you've want understand that, to to gone you're going $XXX Paul, I'm again CapEx. left a with going X.XX balance what Could balancing stay me I talking make how XQ? this you And the after where within but better guess just the to production in per think, me your to about hitting the spend reconcile have know I of this, Bcf achieving sure you X.X and the could through you help this

of to proceeds side shares. through, the that from the of make you the remainder balance the may to understand up this count gets be And I about $XXX you would noncore question the that the how how for repurchasing worth it's basically be side to there. guess my assume want your while try achieving million repurchase maybe year? you're the I wondering I'm just thinking sure production walk on I also So and I and DUC

David Wood

good morning. Neal, Yes,

for and So, of from assets done in to our sale of free the we've those first of XX-month sales used was period proceeds was call and noncore The one intent use that buybacks. time the a through the to small the those we year do it. program noncore for the the this assets, also flow conclude cash we repurchasing announced to from announced

this generation some next of So it year. take is second year half will will place of some free cash the and flow this place The year. take really

timing from of causes will in not that some nothing easiest it purchases monetize progress. half. -- things, do of from So they concern It's be second actively into to is that terms but necessarily our weighted me the worked. to that heavily in being are these There thing the

I about So feel good the timing of repurchase. share and trajectory

on the one, the production, In feel about year. look at year we about we spend targets. hard for second where terms the the and took of a the of today overall are good levels Feel good rest

was early first the soon the to me faster as So in the teams quarter that here was but possible. spend as the and stuff on get try within

Donnie his teams did and a in that great So job schedule. beating

pretty I are. we So about feel where good

Neal Dingmann

maybe just the one come then I last due, holding think have, leases more that Okay. think I in Utica. I And wondering, I'm I some I'm working been just leases could, I there next know one you those, year. is Is know to kind if you forward? just much of so wondering this on hold don't -- holding on cost have one, either already going And I guess, those? just been in, able year

Paul Heerwagen

kickers extensions associated Hi, associated have is spend to here. with primary The almost year land the entirely Neal. leases coming lease this -- mostly budget five-year exercising for on terms we with Paul. is

of have tapering higher years. recall, prior paid the as sort were years. last And acreage and several more held more now we over those off in we and also you of it's incentives the spends As

expect it's down continue next this year. XX it taper would to we So, year to and

Neal Dingmann

to forward the all activity. Look Okay. Thanks, guys.

Paul Heerwagen

Thank you.

Operator

of next The Ron Rice comes from Johnson go & Mills ahead. Company. question Please

Ron Mills

morning. Good

be questions. the Utica split are split to second completion How cadence call be say part those Utica time? to think going weighted and versus When may the of are fourth XX-plus on Neal's of we whatever completions a that when would be between you be, left, quarter the particularly they the we Just at fairly about Or remaining be and SCOOP? kind evenly those follow-up turn-to-line. one SCOOP, more And the quarter? completions going one that the XX then are would to third remaining it, are and during look particular

Donnie Moore

Hey, Ron, weighted heavily Utica good wells XX-plus This those look morning. XX the that over if you were toward the at quarter quarter. Donnie. in first the is first roughly completed, Utica Yes, of during

it Second we've kind two. the got of the down there the of weighted pretty quarter And the toward is Utica, two crews still between trickles it's split fairly year and completion heavily then running today. rest

Ron Mills

imply and to that that our you is it end trying -- and the be about quarter? adding to fair cadence? that standpoint is of And Just in more really from then growth fourth quarter assume up will quarterly in Okay. lot the here also a gassy and second quarter, a production liquids third more the the would turn-in-line production think particularly then also

Donnie Moore

right, absolutely at more Most that's gas will our the Yes, Utica wells. second dry quarter of Ron. turn-in-lines be

first in A online. up quarter us of this. for those the activity set getting about excited we're So to lot

Ron Mills

about rush? have the of single-digit completion impact full Keri we third kind Okay. Or And higher as bit you sequential growth it similar of production? in the even you in be something a how quarter? that strong here third little that to quarter. mentioned talked longer quarter can Or should Would you outlook think a the I second that think from from in about, expect a quarter --

Donnie Moore

Yes. I mean, of good a that's way think I looking at.

have is second Over you for quarter of quarter these buying a XQ. on as pretty the the ratable wells, new full those then

quarter So for sure. second third you'll see growth, to

Ron Mills

recycling. like million that question. third water the the But third-party rate. that we assets growth And that's kind current do you're have of Gulfport all said It how those the I water the on about this there then is those handling much and on when have. -- of here I $XX leverage kind $XX what run second leverage EBITDA, the lastly, don't a nonproduction EBITDA know volumes? David, sounds in you million think great. to of sell, exactly Okay, to of going EBITDA quarters, think or and assets? is that have And you is the

David Wood

think third It's being market There received and We as earlier would business. primarily year, identified business all the be valued from also something well is taking that our that infrastructure. those deep our both more dive valued by will the much in Gulfport, a the pretty than and potential us were attractive in market. they're a we be highly through so growth in in parties assets

think I million million could expanded. so do And $XX standalone $XX to better of substantially that EBITDA being

the hence to third-party. I think attractiveness So

of process And the of use So of to believe. off. is we're will to that I more It way will that lot be by just business which to reduction. that than overall some getting million piece the year debt proceeds this say I'm $XX a sale be the a address going the kicked happy

real about So sits. where happy that

Ron Mills

you Great. much. Thank very

David Wood

thank you. Ron,

Operator

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

Jason Wangler

morning, good all. Hey,

David Wood

Jason, morning. good

Jason Wangler

to wanted I for book very the looks hedge XXXX obviously -- ask morning. Good good.

be it about a where of year As on, longer-term strategy the as you from about goes out. of up obviously how this perspective will you ways you think do want that think But to kind there? kind building of XXXX, and

David Wood

year was around that's for oil year, a for looking And at key as oil. in very year for think. comments, we're $XX nicely covered closely of Keri's Jason, at this and now next kind mentioned and We've I been this next question pretty particularly year.

belief oil is that to down. here back the is have trade likely think we I

some there. wanted get and we coverage 'XX so And into to ourselves reach

we So check box. that can

always good year, is. where longer quarter of a get XXXX next we been natural we my I view little gas terms prices think before sense as need a third look probably of In the around

sentiment of year back negative. was beginning and general pretty I the where this XXXX, it look for As the was at

where there's very bit of that's of sheets irregardless kind strip started materialize. if little has I see green today to think of to to a more curious the play, going enthusiasm. I'm

So year, the quarter like hedge full And we'll up then just think did get pretty end I But we'll position. from quarter, a we in a away getting comfortable in pretty we're third on look, in good XXXX. this a that.

Jason Wangler

helpful. first That's repurchased that the sale forward then look of $XX Okay. I quarter. million then, the and And looks good you to Is that. timing that it like the in a all to obviously situation a first just where about bit the basically in is the the money that? later will up amount repurchased quarter, be showing that was think million but $XX way

David Wood

things this was Jason, ratably, something wanted never had We These that's and on do and actually probably use But the try do elsewhere we to a nor felt every hand right. it proceeds cash to you wait we thing did. the do way should hand you somewhat anyway before pretty goal we I set act. good intent. about cash to that time them that's for quarter, time but so the it. right where Yes, it's the do And that's on difficult to what actually them exactly you sale that out very

will as to good So we're on. doing the we goes and year be off a start more

Jason Wangler

you Thank very wanted just to confirmation. get Okay. much. I

David Wood

Yes, sir. you. Thank

Operator

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

Tim Rezvan

that something were about. is was $X.XX. hedges, Hi, morning, The we on on folks. question asking the good to at I'd like strip follow-up Jason's

period? of -- trigger the like is this on something? pull Like, XQ David kind of sort not on of you just hedged there is you feel feel you when into kind need the strip is if you going think would XQ comfortable I'm So to

David Wood

predicting not season Yes. into get can great the at, do will Tim, to I of the tell of few but that want some winter. to going look I impacts really I'm you. I shoulder prices things a gas a see

think is settles hard $X.XX I soft is general, where the view a that cap, bottom, out. I in kind have of a $X year

is face and storage I of think etc. will it where a etc, lot

somewhat similar year next year. to looks think I this

not take thought I'm I I'm a fact could we're So the But later and the look that, that at. directionally thinking my that's in But of better we'll that's thinking kind about $X.XX year. number, $X.XX wrong I than number, today. where be reserve I think a

Tim Rezvan

ever And than proceeds consider given sale what the strip Okay. has to asset would get any then you higher using to swaps you?

David Wood

us intellectual now. thought. But great is on for a it today table That's the

Tim Rezvan

Okay.

that's And the the closing then sale It fair. one like asset around side. water just for may sounds on more Okay, system be the year-end.

why the you or of that disclose like assets get discussions curious depth to you said of why certain out of Just rolling started kind show did curious publicly had monetize? reach Or need domain? can in Or want information that Was you to the to the feel sort it the now? the out it a point? Just public was this information this?

David Wood

were took of I attractive one our taking got the these things market, in it, value of properties. to the market some out to actually as dive that down core business mentioned a all seems time. We're very us keen I was the with Well, I in these on is assets. deep today roll guess getting the this and be We for you it thing pretty simple streamlining I'm familiar very a to This look out. assets at how the assets. popped earlier

And so the multiple at take a valued sense something put that multiple. of higher something our substantially it to and market us to at lot that's it made that's

make just sense. it So

are I think cognizant I'm where of wise. debt we

a nice I moving it's here. everything But state. we're a in think like in fairway

was and position, debt these helping proceeds thought here So thing I to of some our pretty do. smart taking

and announcement, uptick. kind just recognized market the recognized it's this, of the that's the make So of game, we've today it to wasn't I do need quality we've recognized the any value an

So was there. really process that the decision

Tim Rezvan

for comments. the you Thank Okay.

David Wood

bet. You

Operator

next The is ahead. Seaport Please from of John Global Securities. go question Aschenbeck

John Aschenbeck

my everyone. taking for morning, Good Thanks questions.

David Wood

Hey, John.

John Aschenbeck

And apologize to wanted EBITDA I mentioned the I $XX million follow-up I if growth. year you a this. $XX But the million to So, water assets. on missed of with substantial

the what monetization? are of the at to year could EBITDA say when think you're the for run Thanks. wrap those assets you rate up end planning So good be to

David Wood

John, great question.

I The think I that. not in I be for are know going of it, starter their other way I position the have great color like to this active it great of room or in to own at at would that a I people or to going somebody. look that really people clearly defer lot somebody's to data as is and well. using would this And it. add a system position a have because looking we're opinions We're system

a Into a to nice million up the be growth. here be So will the concluded call the I pretty will within quick. the baseline. $XX what year, pretty the I is I this that opportunity room I year. for data lightened of comment process $XX end there's expect million think by And think well

John Aschenbeck

Completely that. Great. understand Okay.

like repurchases my strategy way? planning you're So but just how And specific asset for there then I also one. looking water wondering you'd wondering repurchases then at was go second helpful. leverage have forward making sheet But allocate maintain? to proceeds of You assets or which going you different share the plan if proceeds a it Thanks. how I sure was future that to you're mentioned sales? a do metric to that the for in to just thinking do around just between stays check. the is additional perhaps balance

David Wood

Yes.

certain worked year of number also free which share already But I $XXX think the includes of noncore the track Marcellus have be others the what was sale we've announce we we're of moves which able million that mentioned. beginning that year XXXX are was the is on. to being as a which So out all laid I to hope assets, one John, with which and nicely cash the of on at repurchase the program our

think I that that with that number we'd This after come was $XXX is asset So we've identified working. talked program up about million program. in order all

really use kind I reduction. so appropriate And those the funds of start thought something like to debt targeting was of

that's that. so And game the with plan

John Aschenbeck

from it. got me. the for time. Thanks Okay, That's it

David Wood

John. Thanks, Perfect.

Operator

The is next go Leo ahead. of from question KeyBanc. Mariani Please

David Wood

Hey, Leo.

Leo Mariani

see gets million a LOE this to added result? out on later see the sale result I to in Just to LOE? wanted to in up of of there million at done that some Just follow a increase EBITDA that SCOOP you trying here. assets of becomes assuming if company, Would you? little To sort it's higher of focus sense $XX the some are $XX how water get Hey, guess post your as close deal SCOOP to may that bit little a the year. here a the

David Wood

Yes. in-house way headed we've Leo, market is the charging rate. ourselves kind here of

deal struck. be So will the that's where

wouldn't expect deal disappointed I if us. myself I hurts very in that. So of kind would we be cut to that did us a

answer simple no. is the So

keen pretty deal. we'd I it market interest so price have think there's get. we'll for what think of we I in rates see this kind And

Leo Mariani

late. respect with schedule of you Okay. I there DUCs pretty described to the guess sort you've had aggressive there completion of Utica, obviously in a

this backlog Just how whole that year? reduce plan kind total buy? think by trying to how sense to get DUC of you a have trying you'll you sense in the Utica of of get In the if guys XXXX, deplete to DUCs Just many year? the the you a end many

David Wood

some call -- at Yes. kind And have it, end me of, of for Usually ongoing like XXs. an it ours of business will is kind will low the year. the DUCs

about the have we and XX so to plan. DUC take that's this year And of care game

in think we'll end low how that's something the the the of look XXs. I year, So at

Leo Mariani

Thanks very much. Okay.

David Wood

You Thanks. bet.

Operator

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

Marshall Carver

Yes.

question EBITDA item your through flowing EBITDA, up million of impact. all there's or another line item? $XX a Is show the the million, LOE that that Just some on line $XX

Paul Heerwagen

hey, Paul. Marshall, Yes, it's

water the and is system. So itself distribution a reuse and system recycling

water that. to system. sourcing a components One back other system, flow two is is produced a aggregation are frac the there So in the

so that will that some and LOE. go capital of some will to go And to of

Marshall Carver

Do a split? have ballpark you

Paul Heerwagen

head I my here. don't of the top at

Marshall Carver

you. Thank Okay.

Operator

Brothers. ahead. from go Tuohy of Campbell next comes question Please The Jeffrey

Jeffrey Campbell

morning. Good

Louisiana just First active if the wondered in during any there question South was was I quarter?

David Wood

forward God, I we're -- it's that assets we still we're noncore so hope so, that asset, of own should yes, the But one with. be active. that moving

So other something later. hopefully be able announce we'll along to with things here

Jeffrey Campbell

Okay. Well, that's a nice color.

debt million. to you going reduction $XX you that of You also said to mentioned and water to of sale the million for go going an excess fetch it's $XX think the was

to I sheet? of what million above is wondering cash do you we on windfall want balance do was you the whatever Just go assume want buyback? So wondering do kind to going the keep just Or some to $XX there? to

David Wood

where assets my that we of call of program. made to in judgment go. as what And hey announced say of Yes. the haven't use I that know for we No, proceeds to that The hit once But we get comments, going proceeds water for million the money was that's $XX But make number none is, any a was the are buyback should hopefully as kind sure. is sale clear of just to decision of one for. million the we'll you've on that. to what the then that options $XX above

Jeffrey Campbell

the appreciate last all wells gas? I wonder completed drilled the did sneak the could really, is Great. I'm that. completed mix one were one. And just if drilled what wells in just I any and of just there It was asking Utica? it Okay. dry or or I

David Wood

rest, in Yes, Jeff, gas. is dry We Utica, drilled Donnie. two this wells the the wet

Jeffrey Campbell

Okay, great. Thanks a lot.

David Wood

Jeffrey, thank you.

Operator

Please comes B. FBR. Rashid next ahead. from The of go Rehan question Riley

Rehan Rashid

on for Two ones. then Thank acreage from Marcellus a taking much is Thank focus operationally And that of any morning. your how was will you you. on the my ideas Good capital with XXXX standpoint, allocation speaking, for second, of SCOOP on associated kind be the Utica early assets? questions. quick just framework focus of what sale? rights what kind be kind One, and will --

David Wood

rights. not a Marcellus of footprint it's good Rehan, very Yes,

question question, second than not my bit then please? little repeat can And big. but second bigger a the So you that range the

Rehan Rashid

be early between or would a so kind operational of better changes be results on may you for take seen of Any an far? of your May thoughts from capital kind XXXX be assets? two XXXX, kind the capital around for what allocation allocation have

David Wood

Yes.

fair capital that's yes, more SCOOP. portfolio think kind moving -- We've I a been So that's our in liquids of a question. very of part the which is more towards

will will when we But what broad So sense of year. year. get XX% I go about next next XX:XX our on ratio actually tighter that that SCOOP directionally is just of about sense, capital into this we But bit a the of think prices handle year. in get that's little a

Rehan Rashid

Okay. Thank you.

Operator

go comes ahead. Please Harrison question of next Jaffray. Kashy Simmons Piper The from

Kashy Harrison

Good my you questions. morning taking thank for and Hi.

David Wood

Good morning.

Kashy Harrison

and and share to I any color just be M&A your seem what the So, views yet was see wondering would on the of the just does up over since you it playing years? role yourself if topic could be it season. hasn't you come Just helpful. several next

David Wood

Yes.

very doing. So policy topical. we're don't what as comment And it and on is a M&A we

in as M&A going probably happen sense I future we and on broad based are the is bottom more to a at market. think on the the consolidation of

would And is play determined, to so our role be yet that. the way in and I we be think what that answer I that will

Kashy Harrison

you if just then your And last if I online you. were some enough. to Fair correctly, performing wells Springer was expectations? how on is could just year. update And an provide Thank internal there that's me. recall wondering brought relative I Okay. the from all it Springer

Donnie Moore

home lot our the Yes. year to so we in Springer on we're as This continue well. well Springer performance seeing the of far acreage as in Woodford But non-operated are is wells a as Last well, a some Sycamore light we goes, Donnie. brought Really what in but back seeing like Springer not 'XX. there. we're

watch that So it we'll to where see and continue goes.

David Wood

Yes.

Woodford, focused. wise, kind then we're priority think is Sycamore, Lower of where I

Operator

now David for period. Wood closing call Q&A remarks. I will the concludes to This turn over the

David Wood

out We time hesitate you, And team. to any please to questions, interest and call. our further today. This Thank have do concludes our not in Investor everyone's Relations operator. Thank Gulfport reach appreciate should you. you

Operator

conference. This today's concludes

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

Gulfport Energy (GPOR) 3 May 192019 Q1 Earnings call transcript