GPOR - Earnings call transcript Q2 2022 | Gulfport Energy Corporation

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Operator

Good day, ladies and gentlemen, and welcome to your Gulfport Energy Corporation Second Quarter 2022 Earnings Call. (Operator Instructions) At this time, it is my pleasure to turn the floor over to your host, Jessica Antle. Ma'am, the floor is yours.

Jessica Antle

Thank you, Melinda, and good morning. Welcome to Gulfport Energy Corporation's Second Quarter 2022 Earnings Conference Call. Director Relations. Antle, Jessica am of Investor I Speaker Officer; President and call include and Chief Executive Tim Cutt, Bill Financial on Officer. today's Chief Buese, Executive Vice the that I to relating performance financial operations, this remind and like of company's make everybody results objectives, would conference forward-looking to the call, plans, participants conditions, statements business. may certain during future due We indicated in are from those caution that factors. you that of forward-looking actual to statements results variety could differ materially a these company's factors filings these be can in the the concerning with Information found SEC.

addition, may reference non-GAAP website. to to like In GAAP this announcement. was our Reconciliations measures Gulfport call earnings the Tim. review our turn the to posted Please updated At measures. time, on website at comparable I we with leisure. over to in yesterday evening would will the be An conjunction presentation posted your

Timothy Cutt

thank Jessica, turning discuss of a for you joining morning, the second with the an the update good quarter by Thanks, I morning Bill summary to begin call followed to operational and this and financials. will call. the highlights before

of free XXXX program by million. a X% We year of delivering the from million representing saw quarter, in and and and a of strong year-to-date, and full equivalent million cash progress of cubic liquidity we X.Xx feet free flow. our had flow. you repurchase our $XXX expected shares per outstanding We with XX% $XX ratio release, have quarter share day As conservative XXX million our significant made decreasing leverage repurchased production $XXX cash approximately of exited

taking the $XXX incremental approved in repurchases, the program total. share In million recently addition, Board of an has to $XXX million

Turning to production.

across XXXX excellent brought online driven the quarter continued by second from outperformance in our uptime of results pad development our operations the of March Nelda productivity robust Our XXXX. and SCOOP were program, our strong

fourth program, production decline Given our the in growing significantly the of slightly the quarter quarter. before to in expect timing we development third

of sales the in knock-on associated brought these the discussed pad timing The to Following our within the last Charlotte are the Utica, guidance exceed lower This Clark XX-day quarter subsequent completion the and pads, of the is the on to successfully delays the end we end strictly casing approximately effect remediation have range. at turning pad. us XXXX have issue. with guidance And for production caused of a along of with days to top high -- timing exceeded would for XXXX. we our to expected timing program, our production but have shift,

back Utica and of We expect the half strong the year. in SCOOP from the remaining turn-in-lines performance

and IR clearly Our half remainder strong results X first production of the deck. expectations of Slide on the are for the demonstrated year

more discussed, previously to As X% continue over XXXX in than expect grow production we to by XXXX.

to Turning program. development our

and optimizing on similar remain in compared perform, perform Utica are costs a X in wells of SCOOP to by focusing page program The well the X team see on During the the SCOOP generated value. by the well year. to Nelda driven turned in wells line highlighted We slide and our these for IR X during Utica the in quarter, to early XXXX, to wells development and quarter. XXXX. the our continuous we learnings continue a wells in the gross third anticipate in in implementing we doing of projecting you can improve our Page up are to gross historical XXXX deck, XX online wells the and assets and On of the Utica development. bring the second historical time and significant in the flat now same the how and To both development a strong integrating performance rig development in picking for development compared is Nelda in those of continues X-well drilling the the and to which in tight half releasing improvement mitigate program our the production of over the and -- efficiency SCOOP illustrates expected program next risk market, Utica X across rigs

frac the our side, accelerating On for continuous we a the top-hole plan is also to to opportunity completion evaluating the more the We rig program half units enable of option fourth the top-hole the our market running could to starting us tight. January create of and continuous in increased X-month current drilling entering XXXX. quarter the $XX the add Utica continue top-hole land would for the stay current are schedule, of to million. ahead rig rig program program, a To a in In expect order in rig XXXX. our a we alongside by level the year program activity capital first frac XXXX, Utica create during of our frac have rig this XXXX execute and continuous for

And will for the to with capital, we up XX% we to increase our if plan, be We during with our capital from proceed On cash remains $XXX the This, continue call. of to available takes opportunity we all million XXXX. the for inflationary Despite these capital, year, now to quarter. XX% an XXXX. pressure costs unchanged. this XX% and to along discuss guidance last are our choose the flow inflation this this additional XX% million free in still guidance next midpoint impacts, $XX evaluating experience and to benefits options discussed for land expect of

improving unit and our continue to are costs on focus actively operating the across total identifying efficiencies We per company.

the operations summary, maintenance And equipment in second water quarter, We per costs resulting per peer-leading and the in Utica. from during development all rental In quarter $X.XX frac continue remain production, of LOE Mcfe. first capital delivering down Mcfe, the XX% in cost-effective winter the optimize focused we released of XXXX. on discipline of to reuse quarter our we

implemented have results. designs, which more exceptional continue deliver spacing wider We and completion intensive to

shareholders. returning allow the flow, organically while to us free Our cash our low will leverage, business along with to capital significant grow significant

to to the discuss million demonstrated Board's I'll further to financial the $XXX program. results. is by commitment to to returning the shareholders increase share Bill the Our call repurchase turn now capital over

William Buese

good and Thanks, morning, Tim, everyone.

strong As Tim generated next financial opening and of financial the delivered discussed, fronts. cash of $XXX reported quarter vast minutes liquidity to call We operational spend of operating majority 'XX. cash share million our $XXX and quarter for $XXX adjusted the return quarter. utilized the high-level during just our I million on cash and EBITDA provided second quarter. position providing the free both capital overview by same up fund the before results, of we will $XX few free a Q&A. net of income the now the for initiatives million of the second activities second flow of million quarter this generated program We Net And flow period. we common totaled during another during repurchase

details $X.XX derivative see during collar natural On an per our totaling per and per Mcf swap the Form for XX floor natural the additional Mcf. day Please of Mcf we portfolio. price And contracts second ceiling for cubic average gas approximately and of $X.XX totaling on on day at average of derivative per price contracts gas XXXX million price at front, layering quarter. currently approximately average feet an focused on XX-Q contracts $X.XX derivative our cubic our feet an per attention we have million XX

gross assets $XXX approximately were the credit was second quarter, million, balance $X.X our outstanding of total approximately At total of consisting $XXX under senior outstanding facility sheet. the end debt notes. while our to and million billion Turning $XXX of million

at credit on million We cash outstanding of also of letters quarter. $XXX had and $X the hand million of the of end

total of and the our exited $XXX consisting $X $XXX On the of the borrowing front, liquidity quarter million million we of capacity liquidity, under with of million second cash revolver.

Since of our progress share second made repurchase repurchased capital quarter, cost program common of $XXX.X during our $XX.XX an over outstanding repurchased common initiatives. for our average common $XX.X which total shares the which approximately of on inception share at million. on repurchase X.X X.X million, Moving we $XXX.X total return million of cost common our shares executing approximately to X% in price during average a of of for an program million we shares. at March have represents We the significant the 'XX, of price of

additional in With authorization shares, to to this of our the fully our free repurchase program. share an expected have now $XXX in his the total with XXXX. flow a common to we which Tim be repurchase million increase, be to cash comments common earlier, added As Board million generated authorized mentioned is $XXX of funded

authorization, of applicable earlier liquidity, repurchase opportunistically. case the to repurchases amount any be factors. credit continues and as requirements to any available as continue to well the with will legal We restrictions, as agreement market timing was And conditions, subject the other shares share

in dividend additional return of all We repurchases will a continue capital quarters. to and share instituting common including options, evaluate future

Moving on guidance. to

range comments million For million investment the for a to $XXX of of we $XX leasehold. in $XXX includes million mentioned now forecast Tim reasons earlier, XXXX, capital his in which capital

XXXX updated we production X% than total feet XXXX. X,XXX XXXX day, million to guidance is to and million grow continue more XXX per volumes cubic production over equivalent to Our expect

these In we on is XX. updated our addition IR cash to these through significant which which guidance our $XXX In maintained guidance return expense the the Mcfe deck also our flow free Despite per year in allowed amount adjustments, for updates significant of detailed guidance, Slide generating quarter, cash million to XXXX. have GP&T flow the million free share our repurchase capital continue to we for program. for to we of summary, $XXX a shareholders to full during year, us

flow our range a are a to all ability the ratio wide to return With cash free capital shareholders, maintaining continue at up to confident to strong while in Xx. generate financial commodity we prices, now support including below that, our call open that position, strong questions. positive for future quarters allowing will us We will a leverage to continue of asset base

Operator

with And [Operator question go Truist Instructions]. first our Neal Securities. Dingmann do we from into

Neal Dingmann

then. into question well first kind my flow all I'm restructuring, I'll -- my They're given My tie and overall sort a -- free second past And overall in of just the wondering, on now done great maybe together that, one. there. strategy. job you question it just where of cash the just tied is are is first you really

my do wondering the more top to there second is this. cash to specifically, as is all believe scale I need specifically one to guess Do can continue believe the to area? sort maybe that prudent plans speaking? using of achieve all largely efficiencies shareholder mentioned, you reallocate you capital rig through same the regionally you than kind build any this wondered just at is tied of I'm question thing. I material And Just that also you buybacks point? And returns with this

Timothy Cutt

Yes.

question scale first that take I'll So on the versus buybacks.

quarter, a Board can news, we both. $XXX at -- good We've continues We're a extra bit is the of look third completions quarter, do in third on little Neal, were million. the the that think you I then approved dropping off. slightly the doing lot tighter our When flow. into year. cash our cash it a fourth of and We in that deferred on starts the quarter, lot has generate next and

the news we both. good do can So is

optionality of if well. that us the additional that scale, growing drills we things as land with rig budget looking far in the growth. growth the drill the second then support section in the prices the one call we the but at it it horizontal. for vertical and also this With a As Utica, the of doing curve the and entire And bring that, rig to larger we're our gives rig, top-hole some

set be a drilling and pick market So we're and a on back in try trying let stage can frac very program, It's fracking. go, unit both our that to getting importantly, just tight to we sure in continuous up. very make where rig to very difficult the we

going the some like a year, setting So second talked top-hole X if question? the also we the months plan we've about stage And execute do we part X but a can more for more which could start lead frac growth efficient of tentative could continuous or continuously next think will the and we we forward. against for to -- rig, program the for then

Neal Dingmann

Utica -- just you -- about talked maybe more I'm or regionally thoughts now, Yes, just whatever, wondering, you continue -- having X just to it activity will all second you was speaking. in like about having Right you part after top-hole have, X rig. just of kind would the the and on in now, have or of Any the split. wondering do to right active those I'm just think if split. months continue XX-XX that Or SCOOP? what be the that kind I all mentioned

Timothy Cutt

near our XXXX that's the that's I the SCOOP, the we inventory term, see want encouraged. going guidance haven't yet. lays how in We in Yes. in on has out long the we're come term, can kind why because out. mean, But with maximize And we the definitive to quite it the of to what's seeing results over how be split we're SCOOP.

going believe also to we right these do, wells good rig want can. is we as as bring so thing to continuous the online to but And of as quickly a many we

more So When program we the And hard we're doing the there, drilling next that's to ultimately should in of helpful. next for nature feel very efficiencies to be described of SCOOP going just and moving what continuous be to activity Utica. lead we'd We to going to amount guidance the but quarter, a the and level. do we'll months. where the think we're on get getting to over could is fracking what the we're out in we've come a It's inventory in we by that few certainly like Utica. step continuous program have the program the provide

Operator

further There turn for back We to Tim are no Cutt closing questions. remarks.

Timothy Cutt

All you much. right. today. We Thank thanks for questions. appreciate the Neal, the very interest

and and that reach course, further out Relations to Jessica the call. you if much, questions, like Of team. our concludes you Thank always, very Investor have please

Operator

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

You at your a time. disconnect day. great this may Have lines

Gulfport Energy (GPOR) 3 Aug 222022 Q2 Earnings call transcript