GPOR - Earnings call transcript Q3 2019 | Gulfport Energy Corporation

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Operator

Greetings and welcome to the Gulfport Energy Corp.

Third Quarter 2019 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]

pleasure your my Jessica now is to host, introduce Antle. It you. Thank

begin. You may

Jessica Antle

Director morning. Thank conference XXXX Antle, quarter you call. Investor Welcome Jessica Gulfport and good to Energy Corporation’s third I’m of Relations. earnings

and Financial include call Executive Chief and Financial today’s on Quentin and David Chief Chief Speakers Hicks, President Executive Wood, Officer President; Officer. Vice Officer,

of Donnie Moore, is In me available today call addition, for Operating the Officer. with the question-and-answer portion Chief

found forward-looking and participants statements everybody remind that could this that the the may with a results in to financial make of Company’s these the those results objectives, certain statements caution to like operations, SEC. differ the would I be condition, that variety relating are these conference indicated during in materially Company’s business. the from concerning factors. plans, filings to due call, you Information of forward-looking future can We factors performance

measures. measures share. website. In Gulfport of to may the XXXX net diluted or non-GAAP reference $XX.X our on to posted loss million GAAP addition, $X.XX make Yesterday third be quarter per Reconciliations comparable reported we afternoon, will

share. These yesterday results analyst a net which was which excludes for noncash previous adjusted contain million reconciliations the presented Comparable mentioned detailed diluted evening items. the the items, of $XX adjusted provide quarter estimates, press release $X.XX our non-reoccurring of XXXX, in to as our several adjusted third filed income and per all of or

posted yesterday announcement. presentation to was earnings leisure. Please conjunction updated An your the website at Gulfport evening our in review with

Gulfport call CEO like I to time, the Energy. David of would this At over turn Wood, to

David Wood

call. for thank joining Thank us on you And this all you, morning’s Jessica.

XXXX free of of and next from continued achieving strong quarter year, provided start cash third by phase is plan operating areas from balance Gulfport’s generated XXXX the We through of the each at cash improved our flow of notes the our performance underscored to our previously our and senior capital while significant production announced activities. the adhering targets flow our our our sheet generation. exceeded repurchase budget,

income quarter, For $XXX.X we the million of third reported net EBITDA. million adjusted of and generated adjusted $XX

In totaled million in we of $XXX.X changes the the addition, flow $XXX.X XXXX. approximately third capital capitalized and expenses, of generated quarter operating cash and free of flow during inclusive cash before million, working

at averaged Total turn-in-lines of XX% Shale full-year year’s deliver on the our the quarter-over-quarter currently day, we production Utica X.XX second SCOOP. performance billion net equivalent And forecast track range. to in activities, guidance. the production strong We remain in XXXX per XXXX the quarter, feet provided of of of remainder production on net driven gas to carryover cubic and on the from and increasing base based the momentum the average production our previously guidance continued midpoint by the

$XX.X capital. D&C and the During and Gulfport incurred million September ended months nine operated $XXX.X in capital non-operated D&C million XXth,

land expenditures approximately In million year. incurred the addition, during first $XX.X the totaled of nine months

Our on the target non-operated And capital the to-date, of work remains towards to a to incurred sale capital portion spend non-operated with interests. activity, operated continue respect through certain we of recovering with expectations.

be will of capital confidence and reaffirm and divestitures in high of no-operated successful total remain within We have XXXX committed XXXX spending this net range budget we fully a our degree guidance. capital our of we to accomplishing the

cash royalty an and Company in to sales, continue into strategic expected Bakken. simplify the sell held million assets associated in On entered the during close recently to through to net interest XXXX. agreement fills the interests front, we approximately This fourth asset is the to transaction overriding portfolio quarter non-core and $X with Gulfport’s the of certain

weeks. the position details provide Gulfport holds expect the certain stages, in of to across our announced further addition, is in previously the we water In process final coming assets SCOOP divest and to infrastructure

of divesting pleased business. contemplated assets plan, our this very am in not to-date, and elsewhere allowing non-core have executed reinvest to within transactions capital us I with strategically current the development our we

we repurchased have to At trading, principal debt. senior meaningful at opportunity continue which during million discount levels total see a announced outstanding our previously approximately amount retire debt the As continue $XXX been of cash July, at an we and a expect of spend bonds of senior notes reducing attractive to $XX our million. for to portion

continue is equity announced our remains authorized to and In to previously January addition, we be active through program, see XXXX. which in repurchase executed merit

potential evaluate of both remain will to in continue enhancing we we shareholder sheet flow, committed and disciplined capital, our cash strong maintaining balance uses allocation As to value. of a

first areas. core during drilled specific of gross XX X.X year average wells over the spud XX,XXX an roughly lateral averaged length had utilizing of the XXXX, Utica, our rig The down and months X,XXX-foot XX% normalizing operated to to Turning nine we of In an results. over wells, full XXXX increase we spud lateral, rigs. to XXXX, when XX.X an of feet, X% release a days,

have we team quarter in XXXX, on to Utica exceeded We many bit. during Shale during length Utica noted less. allow previous drill during at totaling to-date play the more the in to wells our We we in nearly quarter to pleased one the XXXX. in third and a depth gross XX,XXX focused feet measured records, additional lengths rig quarter, the that and deliver earlier we an Shale report the lateral had currently fourth year, drilling As over feet. XX,XXX I’m plan three of us the of with deliver with our drilling lateral drilled maximizing running And record of the well and longest the to

count total third concluded averaging completed the an X.X all the of XX day year. Utica XX during stage in first stages the X,XXX The in during this wells to during our sales and length lateral were the nine XXXX the during months had per year. completed X,XXX XXXX feet Turning stages completing of wells average of and turned to a of stimulated wells and XXXX, quarter frac program we Shale, completions

assets in feet XXXX equivalent cubic second billion averaging from to are during extremely activity continues per managing consistent, very led our This the level the the a reliable strong of day XX% of we increase asset quarter, of an and to The performance X.X very third the it. quarter be production the team the over and X% Utica and of pleased with portfolio, year-to-date, resource year-over-year.

over to Switching the SCOOP.

During gross the rigs. first months Woodford nine of we wells one gas seven spud X.X utilizing and including roughly Sycamore XXXX, wells eight well, operated wet lower

of when an had nine the XXXX to normalized months our X,XXX length when to compared released rig first feet. the a release days wells decrease The program the year, averaged to a during And wells lateral of lateral, X,XXX-foot average. of XX average of spud X% a

set improvement the the well the during An during delivering our running in well gross committed the and XXXX. is drilling the the And be third being drilling average. isolating ahead our SCOOP efficiency on We XXXX the part program of to we SCOOP, late additional fourth consistent, of continues Woodford team have months capturing When a spud repeatable. XX% days out totaled one gains average XX.X to wells results repeatable XXXX, deliver of rig to cost to the play. of one quarter and in full-year to currently this plan quarter nine just integral formation, spud-to-rig reductions release first

activity months down any per XXX.X not wells sales day, XXXX, SCOOP with turn feet. of quarter cubic length include to an third We and during the the the front, fourth the completion of averaged plan during decline Production wells of million turned feet average new On but this swells XXXX. gross third we second nine X,XXX XXXX, the gross the sales turn the stimulated no quarter had X% in does to quarter highlights to first nine to equivalent shallow quarter lateral completion complete during and of during the of sales five from nature asset. which

spend In of guidance core have deliver us on summary, metrics, forecasting budget both the in all within operational certain our original quality while capital on to divestitures January. track non-operated assets provided net our

Officer markets, delighted Quentin and and late and executive am background Gulfport to his to team believe our accounting, addition the oil strong extensive in an team. introduce corporate gas Chief is joined Hicks, I who Financial a Quentin capital finance, leadership in now August. has we Gulfport’s

to With the call for that, over his for highlights and I will comments. turn Quentin financial the

Quentin Hicks

morning, and everyone. Dave, good you, Thank

like look stakeholders. goal forward I Board to for part Directors of me alongside a the off, at giving working here of thank I’d our be opportunity entire the Gulfport. to achieve team to value Dave Gulfport our and for of First to the the leadership team maximizing

equivalent During cubic production of per day, averaged X.XX feet gas gas, quarter XX% gas composed oil. Net liquids base. and asset of X% in quarter, in increased X% for natural natural across the driven XX% ahead the of third and production by quality performance our well the our and XXXX second of expectations, provided previously execution came over field, the solid billion quarter

of right to that quarter, into we the five expect guidance of And in we SCOOP production, sales the of gross come the our billion turn through wells Looking feet month reaffirm and at to X.XX taking the range account, X.X December. full-year we previously provided fourth cubic billion of per this range. day to plan during midpoint to in

natural at approximately of for We $X.XX differentials On the range before realizations $X.XX Mcf between costs our the nine hedges prices. gas reiterate basis per settled months the below XXXX, price full for our $X.XX expectations Mcf XXXX. year of including first effect realized front, and during the transportation NYMEX to per and

year the of the of price realized came before $X.XX hedges, months oil below nine effect first the in WTI. During our at

now following As for a Louisiana $X differential our to discounted of sale to we the year. expect South $X the of assets, WTI average oil the remainder a reminder, our

we $X our to on reiterate basis, an $X.XX expectation a WTI. However, discount annual of to

our full and NGLs, strip came XXXX. approximately And our NGL hedges, price be have XX% on of at before the year based updated the we these pre-hedge WTI. of NGL to to guidance results effect XX% WTI NGL for Turning of pricing, in recent realized

hedge realized be hedge the third Mcfe Our we quarter settlement book. $XX our prices during to XXXX, of the strong of And or million. supported per realized $X.XX by gain continue

natural fourth remainder book at MMBtu. well $X.XX by our the hedged XXXX, covered quarter per XXXX the of hedge our continues gas production fully to be For of with

cash an opportunity MMBtu. large we We certainty gas totaling average for oil per $X.XX an covering for anticipated to continue price at We hedges to supporting on largely now focus surrounding remainder hedge opportunistically of feet for have hedges increased additional additions next swap provide continue at of to our to of and the to position, hedging in gas year. XXXX. development the the of the in with XXX NGL expected our addition, well flow We hedge an fund in XXXX and profile layer to exposure additional took per book year, have cubic line cash with XXXX XXXX. our These XXXX plan layer to us of we program, provide assets recently flows our sight production our of free cash positioning In flow. opportunity provide to as degree a plan generate in advantage day and our flow to levels swaps that in million realizations for with us place cash the

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

terms expenses. cash of In operating

production in This higher OpEx improving XXth. X% Mcfe are continued gas from Our guidance were related midstream full-year gathering ended with per $X.XX line development full-year in well was structure. and economies and Shale driven and as of operating as when September months per compared reduction expenses Utica tax, the down LOE, our which G&A, nine by during expense, and to production on focus dry includes unit our cost scale totaled processing levels. our These XXXX

includes hard forward to aspect lower outlook, staffing for actively business, look XXXX look G&A which we to our costs challenging and efficiencies a price we of in and at As commodity ways levels. are improve a and looking every taking

capital and free During positive free million. changes the made of the working cash of becoming capitalized from flow we quarter, in cash before inclusive expenses $XXX.X flow transition third to with operations,

of free expect cash quarter flow fourth We another the meaningfully in quarter. positive

its off kicked has Gulfport borrowing base sheet. redetermination. balance fall the to on Moving

sits position billion. a base to level very borrowing strength in process we draw total revolver $X.X below as it XXXX and forecast We’re our the commitment facility little availability $X our of year-end previous on of billion as relates our well currently elected

at this our We expect fall $X keep level redetermination. billion commitment to

with the keeping we in shape. are our not ensuring As on good to materially fund Accordingly, focused our are levels. forward creating balance leverage drilling, XXXX, budget on and look remains revolver our we at sheet XXXX manageable we focus drawing

opportunity market the statement think agree the allocation we to forward, attractive us As prices. unique capital with that about reduce our I has at with going presented Dave’s debt

sentiment a months, several past ours. liquidity the shift focus as Over a leverage companies investor and such seen primary for we becoming with in have

and forward. retire discount current us Our adequate meaningful the with maintaining at strong provides to while projected a unique opportunity notes liquidity liquidity going

senior cash flow provides us to follows: Retiring us discount a our reduces at thereby third, notes it to chip which benefits our our as improving allows three and interest to it ratios cash annual capture debt First, profile; at it off, our holders. is and in pure equity our away way; outstanding value to improve an discount, accelerated it balance accretion allows us second, leverage

including on with look we capital all of careful consideration balance our will to debt these evaluate at implications we options repurchases, forward, and continue As levels. sheet share decisions us allocation going of decisions the available to

remarks. for Dave I the will now turn to over back call closing

David Wood

you, Thank Quentin.

before in some Q&A, want the turn of to our thoughts refining to But color focus As budget. and are process operational capital plan. and over it towards we to the provide surrounding the we we beyond, XXXX I

First, consistent, our capital our and reasonable to cash forward in flow, carry message maintaining our we remains commitment disciplined and metrics. operating returns, within focusing allocating on leverage manner, a

emphasis put generate and to expect returns, target. bottom production to neutral positive XXXX an not We cash flow growth, line on plan production a continue and top-line with our not output to

look operational for we create efficiencies, weighted to improvements, more we have to that of areas As concluded it sustainable year. necessary the be throughout capital is identify evenly spend to

capital beyond, much while efficiencies between transition result and near a In the this more efficiencies term, and the way XXXX in a increased believe XXXX, in business. is quarters. a balanced the in begin reduction and we forecast run level will in will our shift to And we efficient spend more to

hedge pricing Quentin balance implementing sheet, to build while as expect we a strict activities to mentioned, recent our ensuring if out and on very and drilling approach, are fund current Based leverage we including in XXXX. Shifting any, our book, liquidity. of the adequate maintaining measured draw completion little, and revolver reasonable

Lastly, discuss activities guidance, our of alongside two-year based term we to and on formal our commodity price view published next certain scenarios. early plan year, longer a provide a outlook, anticipated

over American challenging considering cash that to mentioned as the dynamics, capital XXXX goals all and will evaluate this, forecast that have was on Considering a we and committed highest supply continue for the I view closing, activity beyond above the allocate at value future. to prices growth, the demand to North this ensure a capital several would capital and our commodity threshold, of flow gas Should $X.XX all prices cash will we building we in rather $X.XX we towards and program current maximize within In inventory for previous in proposition. the flow Should gas plan, live but neutral. largely be a program natural line our to cash our high-quality below constructive core next our remain XXXX we us MMBtu. production adjust commodity practicing environment improve for range and return $X.XX, to more neutral market, to funded within plan XXXX to focusing years, our program not natural discipline that commodity incremental be would the believe a roughly flow. our positive allow a all top cash options preserving per flow,

to for again remarks. joining your prepared call look us our today. Thank you concludes answering our And we This forward for questions.

up phone questions for the please the participants. Operator, open from lines

Operator

is Please Neal SunTrust coming [Operator Thank Our ahead. from go you. question Dingmann of instructions] The for Robinson open floor now Humphrey. first questions. is

Neal Dingmann

for you Dave, Donna. my probably first or question is

Obviously, rigs, as far looking My lot both that, is, rigs operating Utica as more you hear running in several question in drive -- state the to mentioned that consider and about You do multiple think of sort maybe order you’re plan. the and Mid-Con. to do you to be over your when think because about a of about the in needing how efficiencies. efficiencies the we

in just just Donnie get these to you of order XXXX a about and wondering respect plan knowing I’m how but Again, don’t view full have you you that. think that efficiencies? So, out, how

David Wood

is that ‘XX to in Neal. rig a do much Thanks, first down our the of And to pretty in trying year drive and the we’re of run is be then activity inefficient program. way and have that to half where you Yes. that our a running The use throughout appreciate all what currently and in. efficiency. beyond the year we able way programs pretty shut to we drill continually calling I have wells

of So, number overall, total less we drilling number rigs should same the see wells. a of

efficient. will more So, lot I think that a be

color extra I’ll let Donnie provide some that. on So,

Donnie Moore

Yes. add the multiple SCOOP. said, and but the what that we’ve I we just mean, got plays, in just this where Dave two-quarter to and it consistency one tranches. run you in -- both just throw crews, rigs that same to I Getting think on do I’ll out

you XX-plus in If well we’ve gone at we look XX days to the [indiscernible] XX this SCOOP. days. a did the from days With SCOOP,

the kind what you, program consistent those that’s get get can efficiencies. you So, can of

Neal Dingmann

it. follow-up, where have is, you had be quarter. How about don’t the a currency growth, things? details the when Dave, start balance, But when of think flow around, think sort that given will given Anything obviously I’m wondering appreciated. of the you and amount you and talk Got you in cash you your the versus a you for can plan of stock you the you then, free these next do just XXs at obviously, look how seeing full firm -- bonds just, again, I just that -- do knowing And the year. this

David Wood

Yes.

in terms that. we see debt So, are attractive opportunity of I trading, remarks, think, in see Quentin his purchase nicely where said levels we to as our it

that a focused in got on term. we’ve team the So, near

that’s priority for kind high us. say I So, of would

drilling we basin year a where -- see if look lot flatter each your around one going we activity, transition we so, in the a well being running with ‘XX than program rig ‘XX activity ‘XX from have we years, between between forward transition low on up one now. will question the the at and is. we are and picking more In drilling, Just relatively ratable, to how transition ‘XX just this of ‘XX ‘XX to

another benefit move program within predictability trying the that’s towards. to of that So, we’re

to overall, it flatten should lot guys more our I let program. So, think, through And able Donnie’s out, a cost should be be reductions we’ll efficient. drive

Neal Dingmann

Very the Thank detail. you for good. all

David Wood

Neal. you Thank

Operator

you. Thank

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

Jason Wangler

Maybe to repurchases on versus balance but kind of maybe similar the debt of Neal’s the question, on outstanding facility. the kind

should how where guys look also the liquidity think flows the you you you going kind is How of Quentin couple Just transactions I well about cash at mentioned the there. happening in quarter as you kind fourth balance obviously guys that? know, discount that be forward? is the but as generating important, of that operating do of as

Donnie Moore

Jason, at Yes. our targeting that Dave program fourth And be look XXXX be positive sales, as roughly year-end. mentioned, a as we’re to would quarter revolver anticipated we we the to cash and on will undrawn in neutral forward the asset think flow.

then So, on XXXX. it revolver $X like nothing with position got to at pretty and billion we strength drawn a commitment as liquidity, a because feel from relates drawn in little good we’re year-end very of we’ve

as that to of do stock. optionality and/or buying revolver bonds create So, some things value, and such that provides that utilize flexibility back to

heavily a in we meaning very view way wouldn’t how that of the because kind material We it do on to liquidity get that’s is into it. rely important. So, revolver,

would for of over opportunistically But, prices we to be take stakeholders. years, know to what liquidity advantage the never value few out our that look create you will using we opportunities commodity be. As next

a it. we of And, would So, which can’t it. I view kind give at you that’s how level draw we

that We’re right thinking through now.

Jason Wangler

the pay or share to start most already as could didn’t it, as and would bond that. you part Is cash with answered the probably what whether I flows idea have. it’s I’m then and that revolver And as ask repurchases the kind think No. well is, you it now to for I look -- be guess, at of asking I back sit guess, after back fair? I I

Donnie Moore

of share, say, the allocation basis. plan, next impacts with flow, next we’re and would the over flow holistic -- of how years liquidity, always couple I looking our a look it we’re we and forward over years at per couple we’re considering at capital and cash kind a cash of it leverage, view on

certain of So, back a might the is of in kind timing considered that we view the world. of buy when light of securities

Operator

you. Thank

Research. Please Our from next Josh go Wolfe question coming is Silverstein ahead. of

Josh Silverstein

And more I above profile. ‘XXs, a with it added curve. you they was swaps as decline was provide But, next relates hoping and curious in just of the forward for considering where protection around more you the ‘XXs were then, that added the this before, bit part little could to the the year. lot how I was Clearly, options? hedge updated you a context

David Wood

and window those in back and that ‘XX, of to saw XXXX window us this talked when ‘XX out prices X.XX about more we than sell XXXX position of our that X.XX year. that window, really long-dated to view at into calls look gas throughout we else. outside we the year was, in for were this We’ve anything need looking long-term help dollars we and into in factors ‘XX, supply-demand next being bring And, could considering some the where

time we year, a us set look already real will allow So, we looks next actively a to the of about for I And, of year’s year, we’ve I we’ll throughout be get price we hedges. get feel when top another that like. much shoulder sense think into layering I is into what of much, the next better and winter what we on where program announced, spoke that accomplish the as to able much the were level, this think, Also, volume given XXXX. and are better the season

any that. So, ask provide to Quentin I’ll color on

Quentin Hicks

and that’s you a of $X.XX those -- will upside say production I’d portion effectively levels. a at make at good thing above on long-dated above lot $X.XX, we capping money still really additional a if But can good problem only generate cash to you’re we flow. call have, $X.XX, sell a some have The outer production unhedged of it’s those years, is, your your in and

to taking okay pricing our bid we’re with realized the prices order up near-term So, on in XXXX that swaps. to cap

Josh Silverstein

it. Got

Okay. the certainly now, from receiving $X.XX that premiums number guess, that But, does now that calls? offline those on follow-up you does -- [Ph] be We could this. I include will

Quentin Hicks

so, Yes. than we calls sold But -- call value It’s were proceeds what that our and into effectively it receive for. us that allowed to is at on cash We’ve that for value. we $X.XX. rolled doing we We a we taking the rather it. did rolled option putting them the books, swap swaps in [indiscernible]

now average blended our $X.XX. So, is

Operator

you. Thank

Our next of question from Jane ahead. is Trotsenko go coming Please Stifel.

Jane Trotsenko

Good you questions. Utica foot thanks on if a provide trading on just commentary on a at see how cost. morning, I well basis the my in and I’m you curious some question well and in for have SCOOP XXXX? can taking cost

Donnie Moore

what’s the That’s year. cost, Hey. or driving we look Donnie. when quality, Good continue days level drop just I’ll us, Yes. down you we’ve on the gone minus is This for talk for on When at look a and Jane. cost cost think that we a is morning, to from When efficiencies. at part where SCOOP, of focus at we XX about -- those you plus higher you last days on sure. focus and value, cost

We in today. XX drilling those wells of XX days. less down than some We’re under

I of probably really that’s a year. more over hit hard that’s year service been impact definite that next and last see the the plus on you pretty So, think cost, environment your have

efficiencies we different anything go and I bases, seeing are expect come both we’re So, cost down, seeing in XXXX. wouldn’t up,

David Wood

on to add incremental the what would of that a we Jane, earlier, to expect value I add through going this ratable more I the said would picking efficiencies that up rig operation would year-long spend a us. year,

So, see we that’s think, it. I another way,

Jane Trotsenko

question like Gulfport improvement? be for do My second per is unit see Should structure expecting XXXX, for unit cost flat you on like or structure. cost the we modest

Quentin Hicks

Quentin. is this Jane, Yes.

have color downturn January. to expect cost uptick we generally same big year. expecting basis more put we unit for around ‘XX per next be on generally, the range out on in that we’re We year in guidance structure. early We’ll any or guidance out in a that not formal put the probably But, as cost

G&A, mentioned on more details January. have to including in early everything, that continuing as we on And We’re work earlier. we’ll

David Wood

like the to up G&A I’d on Jane, piece. follow

process brought heard when of changed new part this new we didn’t people in, Quentin which I around, that we’ve adopting and just we’re speak. budget our have As year you for joined, people plan last

look in do We some reduce our a are voluntary to detail. taking early help a going allow that’s We us at G&A have program to separation G&A.

at handle on year levers all we sense to be think, being of once we’ve and it. pulled. full what like, a So, the all where being levers the get are a looks And get next are I looked you’ll able taken

Jane Trotsenko

about the I basis be thinking may. And we How the differentials, is last if question, should SCOOP once Midship pipeline online?

David Wood

Say the question catch again, please, Jane. quite that. I didn’t

Jane Trotsenko

differential. basis SCOOP Yes,

incremental is see thinking the realizations SCOOP might pipeline on improvement, once for be price Midship production that we gas should So, natural line?

Quentin Hicks

to as Quentin. roughly projecting. be is right $X.XX the now, It’s it range this same Jane, is what is in we’re the somewhere going

Jane Trotsenko

so I much. it. Thank you appreciate

David Wood

Jane. Thank you,

Operator

you. Thank

of Mariani Our ahead. next question go Markets. Leo is KeyBanc coming Please from Capital

Leo Mariani

here. I on sales asset ask guys. wanted to just the the plan Hey,

It of you’ve the anything Is pipe, else sales off? non-op, pending. as to SCOOP deals. Are well you that guess, you’re there are got I as close that might the coming significant on the final guys water really asset sounds these those dispose year? like of planning So, Utica down next two pretty the assets kind kind be

David Wood

Yes.

the water like assets one around as just when know, we is plan found an a the SCOOP you having we opportunity. process did budget of benefits the quarter new of second As

looking Leo, of some we’ve going got. that me. take out. there things But, discipline anything small that from I We’re I But, that to a right think, that we’ve on touched full got you’ve things in now, scrub I everything. front main expect have our don’t be business the through the might shake at

Leo Mariani

what you just us sort guess, is roughly could that can is Utica in of associated acreage of much around folks? that of I the how to terms production give in that us non-op, any metrics kind a And, you or Okay. of to for give with terms sense amount of how much

David Wood

a of minimis very in done We’ve to year kind thing. operate. this what with It’s job that. cost great happy type managing of Yes. And I’m related a de we

the that that. in don’t the dollars we non-op was issue I with a had think, And small I significant just is overrun. there like

it we’ve issue talked calls years And so, same these in I’ve before. on the about past, and had

else. And we’ve of production it to our to amount where we it’s trying that just anything not and balance hey, a so, be. back out wanted we’re budget say, non-op or But, really got meaningful

Leo Mariani

obviously, That’s you chance that lower like you helpful. activity is of yet high that describing lower level, the that out. next guess, year I way kind from of But, of are slightly you shakes just the it to Okay. fact is And kind the appreciate I guys I mean, that where guys direction we kind it CapEx, a respect good the could budget, how just of to have have sounds finalize with sort guys and are a XXXX moving?

David Wood

Yes. issue I any don’t have with that.

We’re chasing production target not the here.

returns. mentioned, As on we’re Quentin focused

of to to has great I new these off more lot. help a hedges got there. do We’ve got some our think, a book to In the build start. work here hedge we’ve got

moving surprised, a what kind dictate and where and we to ratable be got. down from through year wouldn’t this I beyond, of this ‘XX and capital we’ve spend next that are But, ‘XX will more I absolute think, bit year. is if little level

you’re think right. directionally I So,

Operator

you. Thank

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

Jeffrey Campbell

you question, current you’ve move is, and believe into mind production there the steady way, commodity last slightly can XXXX, next laterals that ask do year? the Utica which the fewer longer a follow just in in you bearing drilled in as I’ll up different maintain the environment,

David Wood

Yes, the performance well with we’re very there. pleased

that’s think fair, I so, Jeff. And

Jeffrey Campbell

following on of inventory any see in year, as going kind was with down, of wondering then, SCOOP more percentage next significant the spend? that, you I And Utica the if the to winding great. capital with a Okay,

David Wood

budget that Yes. Because not our or plan two Earlier what this like between in organization, this run about a and have here. the is doing front an to we moving new I I’d how capital still year, kind of basins. as done, talked process We really prefer have would different we’re the option. to

either in place. [ph] FT-bound We’re not

can attractiveness. do that based on we So, economic

And flexibility. so, think, I yes, have we that

wells and you quicker. cheaper As Utica the know, are

the faster So, which versus comes component. you liquids to the the SCOOP, dollar back has

So, we’ll we know where plan all for pretty a get splits this our and budget. good out the actually we as in that be with come year. that And you’ll coming through final factored when have will to work idea

Jeffrey Campbell

you. That me. was Last helpful. Okay. Thank one for

other been Bakken. attractive E&Ps cash at flow have just Some in legacy successful sold potential arrow ORRIs sales in generate payment Gulfport selling you ORRIs potential in on was assets is over just as done multiples. asset you relation particularly forward guys cash that quiver, in wondering, that work if go time? fact, I getting to the this a And the at some as

David Wood

something about. it’s Yes. view that’s what see will that think specific has, it as process, and have certainly a, we to quiver. able certainly be through we impact Jeffrey, But, that very arrow you think, don’t in I is any said, the insightful And this plans but an today.

that. recognize I’d yes, so, And

Operator

you. Thank

of Simmons Harrison question is from coming Kashy Energy. go Our Please next ahead.

Kashy Harrison

for Good Thank you. for maintenance you me. quick one for wondering I guys my see CapEx the just morning you now business? question. taking where was thank one and Just

David Wood

Yes.

you tell to like less a probably a it’s probably and is sort address of but if me which mudslinging little hate something, I me But, want, fair that. So, bit is gas you number, X do, what I price can something that.

Kashy Harrison

Thank That was it me. for you. right. All

David Wood

Kashy. Thanks,

Operator

you. Thank

is question of today Noel Coker last Parks & ahead. Palmer. from go Our Please coming

Noel Parks

an trying where thinking on wondering your your I to pace might just months, smoothed pronounced export demand argument hearing in in or you wondering, get is I assumption an the could make headed. longer gas that that getting a view In was about of that more shoulder term prices guess, smooth your either there seasonality in out. you do out, embedded have seasonality development thinking and if have

just So, your on for that. looking thoughts

Quentin Hicks

Yes.

and in LNG, and being You know I that’s summer question impact Mexico which don’t have and the insightful winter draws seasonal we’re different, how behaved to markets particularly export to absent that variation. with -- where have think, the same with of is going that exports quite

high So, that draws see level to those than going some change domestic we is to demand. that forward what the I would frequency expect export tied and to price the are see might more moves

about very that’s going. good think think where to way I we’re a So,

start U.S., our a be until of and probably I we won’t but the see leaving dictate within to in that. of when volumes, to more I think And see as more a step XXXX, to the think, that’s up changes going we’re I market. much, going think lot American North

I that’s at very a think, So, that. good yours thought of look to

David Wood

And our profile, a and ‘XX, have year least at you perspective, time I’ll typically if the an month if macro September. our because in a here that’s That gas thought. Company’s the about that’s production was think probably we look Hey, on kind at to production, maximized our in Noel. prices, shoulder follow micro. for optimal maximum you From your low. up of not production it’s

of out So, more allow production evening weighted little the capital year, spend get profile be a the the to benefit. through will our we so the evenly

pricing. down quarter typically the highest February, when the quarter Our production and first you January, -- in comes have we gas fourth the have

the of of kind So, months in getting have lumpy production. you is that in where one of don’t benefits of capital production rid you’re spikes spend make evening that sense

that hopefully going help forward. So, us will

Noel Parks

Great, was, a of been tough cost front, my stretching silver had in for two-year any contributor And Do you update thanks. certainly said this you sort like service -- meaningful the more energy, lining question service know, you were to cost I scenario can to years guidance. have on next efficiency. foresee other were big we’ve you inflation? you with planning where a view when introduce you dealing that the

looking guess, do at there? inflation two, you in So, just maybe year for have wondering, any I assumptions cost

David Wood

No.

we of on now, prices service I’d it built completely the impact oversupplied. capability, way pretty I product we’re a some plus gone, industry based have where at strong is, look the growth. up And think, efficiencies, the

able sort But, years. And of supply shortage there so, retirement suggest that so be not or any a is equipment going long may get a we’ve to short need. to would upgrading, several There think, to et and anything back some I that be cetera. balance seen to take is time, of we equipment

think the I so, And producers’ all to that’s benefit.

Operator

At over like management floor I closing for you. to this would comments. time, turn to back any the Thank

David Wood

join concludes all Relations have do us operator. our you to out hesitate to not further to today. of the Thank Thank reach any Should taking you, We call. team. appreciate please our time questions, you, this Investor and you

Operator

This your today’s Ladies and for gentlemen, thank event. concludes participation. you

the You this may disconnect off lines and webcast time. at your log Thank you.

Gulfport Energy (GPOR) 1 Nov 192019 Q3 Earnings call transcript