南宫娱乐官网 Energy Corporation Reports Second Quarter 2018 Results

南宫娱乐官网

OKLAHOMA CITY, Aug. 01, 2018 (GLOBE NEWSWIRE) -- 南宫娱乐官网 Energy Corporation (NASDAQ: GPOR) (鈥溎瞎�娱乐官网鈥� or the 鈥淐ompany鈥�) today reported financial and operational results for the quarter and six months ended June听30, 2018 and provided an update on its 2018 activities.听 Key information includes the following:

• Net production averaged 1,330.3 MMcfe per day during the second quarter of 2018.
• Net income of $111.3 million, or $0.64 per diluted share, for the second quarter of 2018.
• Adjusted net income (as defined and reconciled below) of $57.0 million, or $0.33 per diluted share, for the second quarter of 2018.
• Adjusted EBITDA (as defined and reconciled below) of $213.6 million for the second quarter of 2018.
• Repurchased 10.5 million shares of the Company's common stock at a weighted-average share price of听$10.47 during 2018 through August 1, 2018.
• Reiterated 2018 total capital expenditures to be in the range of $750 million to $815 million and funded within cash flow.
• Increased estimated 2018 full year net production and now forecast an average of 1,320 MMcfe to 1,340 MMcfe per day, an increase of approximately 21% to 23% over the average daily net production of 1,089.2 MMcfe per day during 2017.
• Currently estimate net production for the third quarter of 2018 to average approximately 1,360 MMcfe per day.
• Large 2018 hedge position of approximately 948 BBtu per day of natural gas fixed price swaps at an average fixed price of $3.05 per MMBtu.
• Increased 2019 hedge position to approximately 1,154 BBtu per day of natural gas fixed price swaps at an average fixed price of $2.81 per MMBtu.

Chief Executive Officer and President, Michael G. Moore, commented, "南宫娱乐官网 had a solid second quarter and we continue to show consistency in our ability to execute by exceeding our production estimates and increasing the narrow-end of our 2018 production guidance while strictly adhering to our 2018 capital budget. During the quarter, we hedged a large portion of our anticipated 2019 natural gas production, mitigating the volatility in the commodity price and giving us a high degree of certainty in our anticipated cash flow.

南宫娱乐官网's activities year-to-date have positioned us well as we continue to execute on our commitment to capital discipline and achieve free cash flow generation in the back half of the year. As we weigh the opportunities for uses of free cash flow, we will continue to consider all options, including additional share repurchases and debt reduction, remaining disciplined as we allocate capital and demonstrating our commitment to the 南宫娱乐官网 stockholders with every dollar invested."

Stock Repurchase Program
As of August 1, 2018, the Company has repurchased 10.5 million shares at a weighted-average share price of听$10.47 during 2018. Since initiating the share repurchase program in February 2018, 南宫娱乐官网 has reduced its shares outstanding by over five percent.

南宫娱乐官网's board of directors has authorized the Company to acquire up to $200 million of its outstanding common stock during 2018 and approximately $90 million remains under the current authorization.听 Purchases under the repurchase program may be made from time to time in open market or privately negotiated transactions, and will be subject to market conditions, applicable legal requirements, contractual obligations and other factors. The repurchase program does not require the Company to acquire any specific number of shares. The Company intends to purchase shares under the repurchase program opportunistically with available funds while maintaining sufficient liquidity to fund its 2018 capital development program. This repurchase program is authorized to extend through December 31, 2018 and may be suspended from time to time, modified, extended or discontinued by the board of directors at any time.

Second Quarter of 2018 Financial Results
For the second quarter of 2018, 南宫娱乐官网 reported net income of $111.3 million, or $0.64 per diluted share, on revenues of $252.7 million.听 For the second quarter of 2018, EBITDA (as defined and reconciled below for each period presented) was $268.0 million and cash flow from operating activities before changes in operating assets and liabilities (as defined and reconciled below for each period presented) was $183.8 million.听 南宫娱乐官网鈥檚 GAAP net income for the second quarter of 2018 includes the following items:

• Aggregate non-cash derivative loss of $76.8 million.
• Aggregate gain of $0.2 million attributable to net insurance proceeds in connection with legacy environmental litigation settlement.
• Aggregate gain of $122.0 million in connection with the sale of 南宫娱乐官网's equity interests in certain equity investments.
• Aggregate gain of $8.9 million in connection with 南宫娱乐官网's equity interests in certain equity investments.

Excluding the effect of these items, 南宫娱乐官网鈥檚 financial results for the second quarter of 2018 would have been as follows:

• Adjusted oil and gas revenues of $329.6 million.
• Adjusted net income of $57.0 million, or $0.33 per diluted share.
• Adjusted EBITDA of $213.6 million.

Six-Months Ended June 30, 2018 Financial Results
For the six-month period ended June听30, 2018, 南宫娱乐官网 reported net income of $201.4 million, or $1.13 per diluted share, on revenues of $578.1 million.听 For the six-month period ended June听30, 2018, EBITDA (as defined and reconciled below for each period presented) was $504.0 million and cash flow from operating activities before changes in operating assets and liabilities (as defined and reconciled below for each period presented) was $400.8 million.听 南宫娱乐官网鈥檚 GAAP net income for the six-month period ended June听30, 2018 includes the following items:

• Aggregate non-cash derivative loss of $102.2 million.
• Aggregate gain of $0.2 million attributable to net insurance proceeds in connection with legacy environmental litigation settlement.
• Aggregate gain of $122.0 million in connection with the sale of 南宫娱乐官网's equity interests in certain equity investments.
• Aggregate gain of $22.4 million in connection with 南宫娱乐官网's equity interests in certain equity investments.

Excluding the effect of these items, 南宫娱乐官网鈥檚 financial results for the six-month period ended June听30, 2018 would have been as follows:

• Adjusted oil and gas revenues of $680.4 million.
• Adjusted net income of $158.9 million, or $0.89 per diluted share.
• Adjusted EBITDA of $461.5 million.

Production and Realized Prices
南宫娱乐官网鈥檚 net daily production for the second quarter of 2018 averaged approximately 1,330.3 MMcfe per day. For the second quarter of 2018, 南宫娱乐官网鈥檚 net daily production mix was comprised of approximately 89% natural gas, 7% natural gas liquids ("NGL") and 4% oil.

南宫娱乐官网鈥檚 realized prices for the second quarter of 2018 were $1.86 per Mcf of natural gas, $33.46 per barrel of oil and $0.45 per gallon of NGL, resulting in a total equivalent price of $2.09 per Mcfe. 南宫娱乐官网's realized prices for the second quarter of 2018 include an aggregate non-cash derivative loss of $76.8 million. Before the impact of derivatives, realized prices for the second quarter of 2018, including transportation costs, were $2.15 per Mcf of natural gas, $66.26 per barrel of oil and $0.71 per gallon of NGL, for a total equivalent price of $2.67 per Mcfe.

The table below summarizes 南宫娱乐官网鈥檚 second quarter of 2018 production by asset area:

2018 Capital Expenditures
For the six-month period ended June听30, 2018, 南宫娱乐官网鈥檚 drilling and completion ("D&C") capital expenditures totaled $483.5 million and non-D&C capital expenditures totaled $76.2 million.

2018 Financial Position and Liquidity
As of June听30, 2018, 南宫娱乐官网 had cash on hand of approximately $119.2 million. As of June听30, 2018, 南宫娱乐官网鈥檚 $1.4 billion revolving credit facility, under which 南宫娱乐官网 has an elected commitment of $1.0 billion,听had outstanding borrowings of $75.0 million and outstanding letters of credit totaling $257.3 million.

2018 Capital Budget and Production Guidance Update

南宫娱乐官网 reaffirms its expectation that its 2018 D&C capital expenditures will be in the range of $630 million to $685 million and听its 2018 non-D&C capital expenditures will be approximately $120 million to $130 million, including leasehold activities.

Based on results during the six-month period ended June听30, 2018, 南宫娱乐官网 has increased its production guidance and now forecasts its 2018 average daily net production will be in the range of 1,320 MMcfe to 1,340 MMcfe per day, an increase of 21% to 23% over its 2017 average daily net production of 1,089.2 MMcfe per day. For the third quarter of 2018, 南宫娱乐官网 estimates that its average daily net production will be in the range of 1,360 MMcfe per day.

Based on actual results during the six-month period ended June听30, 2018 and utilizing current strip pricing at the various regional pricing points at which the Company sells its natural gas, 南宫娱乐官网 reiterates its guidance that realized natural gas price differential, before the effect of hedges and inclusive of the Company鈥檚 firm transportation expense, will average in the range of $0.58 to $0.72 per Mcf below NYMEX settlement prices in 2018. 南宫娱乐官网 reiterates its guidance with respect to its expected 2018 realized NGL price and oil price, and forecasts that its 2018 realized NGL price, before the effect of hedges and including transportation expense, will be approximately 45% to 50% of WTI and its 2018 realized oil price will be in the range of $3.00 to $3.50 per barrel below WTI.

The table below summarizes the Company鈥檚 updated full year 2018 guidance:

Operational Update
The table below summarizes 南宫娱乐官网's activity for the six-month period ended June听30, 2018 and the number of net wells expected to be drilled and turned-to-sales for the remainder of 2018:

Utica Shale
In the Utica Shale, during the second quarter of 2018, 南宫娱乐官网 spud seven gross (6.8 net) operated wells. The wells drilled during the second quarter of 2018 had an average lateral length of approximately 12,500 feet. Normalizing to an 8,000 foot lateral length, 南宫娱乐官网's average drilling days during the second quarter of 2018 from spud to rig release totaled approximately 18.9 days, a decrease of 2% over full year 2017. In addition, 南宫娱乐官网 turned-to-sales 14 gross and net operated wells with an average stimulated lateral length of approximately 8,500 feet during the second quarter of 2018.

During the second quarter of 2018, net production from 南宫娱乐官网鈥檚 Utica acreage averaged approximately 1,065.9 MMcfe per day, an increase of 3% over the first quarter of听 2018 and an increase of 24% over the second quarter of 2017.

At present, 南宫娱乐官网 has two operated horizontal drilling rigs active in the play.

SCOOP
In the SCOOP, during the second quarter of 2018, 南宫娱乐官网 spud four gross (3.7 net) operated wells. The wells drilled during the second quarter of 2018 had an average lateral length of approximately 8,100 feet. Normalizing to a 7,500 foot lateral length, 南宫娱乐官网's average drilling days during the second quarter of 2018 from spud to rig release totaled approximately 60.9 days, a decrease of 13% from the first quarter of 2018 and a decrease of 16% over full year 2017. In addition, 南宫娱乐官网 turned-to-sales one gross (0.5 net) operated wells with an average stimulated lateral length of approximately 9,400 feet during the second quarter of 2018.

During the second quarter of 2018, net production from the acreage averaged approximately 247.3 MMcfe per day, an increase of 1% over the first quarter of 2018 and an increase of 53% over the second quarter of 2017.

At present, 南宫娱乐官网 has two operated horizontal drilling rigs active in the play.

Southern Louisiana
At its West Cote Blanche Bay and Hackberry fields, during the second quarter of 2018, 南宫娱乐官网 performed 28 recompletions at the fields. Net production during the second quarter of 2018 totaled approximately 14.7 MMcfe per day.

SCOOP Woodford Production Results
During the second quarter, 南宫娱乐官网 turned-to-sales one gross Woodford dry gas well and recently turned-to-sales two gross Woodford wet gas wells. The Cleburne 7R-12X13H has a stimulated lateral length of 9,386 feet and a 24-hour initial production peak rate of 14.5 MMcf per day, or 1,545 Mcfe per 1,000 foot of lateral,听 comprised of approximately 100% natural gas. During its initial 30 days of production, the Cleburne 7R-12X13H cumulatively produced 392.8 MMcf of natural gas or 13.1 MMcf per day,听 comprised of approximately 100% natural gas.

The EJ Craddock 1R-28X21H has a stimulated lateral length of 9,008 feet and a 24-hour initial production peak rate of 16.6 MMcf per day and 437 barrels of oil per day. Based upon the composition analysis, the gas being produced is 1,133 BTU gas and yielding 36.9 barrels of NGL per MMcf of natural gas and results in a natural gas shrink of 12%. On a three-stream basis, the EJ Craddock 1R-28X21H produced at a 24-hour initial production peak rate of 20.9 MMcfe per day, or 2,325 Mcfe per 1,000 foot of lateral, which is comprised of approximately 70% natural gas, 18% NGL and 12% oil.

The EJ Craddock 2-28X21H has a stimulated lateral length of 9,939 feet and a 24-hour initial production peak rate of 16.3 MMcf per day and 497 barrels of oil per day. Based upon the composition analysis, the gas being produced is 1,133 BTU gas and yielding 36.9 barrels of NGL per MMcf of natural gas and results in a natural gas shrink of 12%. On a three-stream basis, the EJ Craddock 2-28X21H produced at a 24-hour initial production peak rate of 21.0 MMcfe per day, or 2,110 Mcfe per 1,000 foot of lateral, which is comprised of approximately 69% natural gas, 17% NGL and 14% oil.

The table below summarizes the Company鈥檚 recent SCOOP well results:

Derivatives
南宫娱乐官网 has hedged a portion of its expected production to lock in prices and returns that provide certainty of cash flow to execute on its capital plans. The table below sets forth the Company's hedging positions as of August听1, 2018.

Presentation
An updated presentation has been posted to the Company鈥檚 website. The presentation can be found at www.gulfportenergy.com under the 鈥淐ompany Information鈥� section on the 鈥淚nvestor Relations鈥� page.听 Information on the Company鈥檚 website does not constitute a portion of this press release.

Conference Call
南宫娱乐官网 will hold a conference call on Thursday, August听2, 2018 at 8:00 a.m. CDT to discuss its second quarter of 2018 financial and operational results and to provide an update on the Company鈥檚 recent activities.

Interested parties may listen to the call via 南宫娱乐官网鈥檚 website at www.gulfportenergy.com or by calling toll-free at 866-373-3408 or 412-902-1039 for international callers.听 A replay of the call will be available for two weeks at 877-660-6853 or 201-612-7415 for international callers.听 The replay passcode is 13622396.听 The webcast will also be available for two weeks on the Company鈥檚 website and can be accessed on the Company鈥檚 鈥淚nvestor Relations鈥� page.

About 南宫娱乐官网
南宫娱乐官网 Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America and is one of the largest producers of natural gas in the contiguous United States. Headquartered in Oklahoma City, 南宫娱乐官网 holds significant acreage positions in the Utica Shale of Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. In addition, 南宫娱乐官网 holds an acreage position along the Louisiana Gulf Coast, has an approximately 22% equity interest in Mammoth Energy Services, Inc. (NASDAQ:TUSK) and has a position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC. For more information, please visit听www.gulfportenergy.com.

Forward Looking Statements
This press release includes 鈥渇orward-looking statements鈥� for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that 南宫娱乐官网 expects or anticipates will or may occur in the future, future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strength, goals, expansion and growth of 南宫娱乐官网's business and operations, plans, market conditions, references to future success, reference to intentions as to future matters and other such matters are forward-looking statements. These statements are based on certain assumptions and analyses made by 南宫娱乐官网 in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with 南宫娱乐官网's expectations and predictions is subject to a number of risks and uncertainties, general economic, market, credit or business conditions that might affect the timing and amount of the repurchase program; the opportunities (or lack thereof) that may be presented to and pursued by 南宫娱乐官网; 南宫娱乐官网鈥檚 ability to identify, complete and integrate acquisitions of properties and businesses; competitive actions by other oil and gas companies; changes in laws or regulations; and other factors, many of which are beyond the control of 南宫娱乐官网. Information concerning these and other factors can be found in the Company's filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and there can be no assurances that the actual results or developments anticipated by 南宫娱乐官网 will be realized, or even if realized, that they will have the expected consequences to or effects on 南宫娱乐官网, its business or operations. 南宫娱乐官网 has no intention, and disclaims any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

Non-GAAP Financial Measures
EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, plus interest expense, income tax (benefit) expense, accretion expense and depreciation, depletion and amortization. Adjusted EBITDA is a non-GAAP financial measure equal to EBITDA less non-cash derivative loss (gain), insurance proceeds, gain on sale of equity method investments and (income) loss from equity method investments. Cash flow from operating activities before changes in operating assets and liabilities is a non-GAAP financial measure equal to cash provided by operating activity before changes in operating assets and liabilities. Adjusted net income is a non-GAAP financial measure equal to pre-tax net income less non-cash derivative loss (gain), insurance proceeds, gain on sale of equity method investments and (income) loss from equity method investments. The Company has presented EBITDA and adjusted EBITDA because it uses these measures as an integral part of its internal reporting to evaluate its performance and the performance of its senior management. These measures are considered important indicators of the operational strength of the Company's business and eliminate the uneven effect of considerable amounts of non-cash depletion, depreciation of tangible assets and amortization of certain intangible assets. A limitation of these measures, however, is that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's business. Management evaluates the costs of such tangible and intangible assets and the impact of related impairments through other financial measures, such as capital expenditures, investment spending and return on capital. Therefore, the Company believes that these measures provide useful information to its investors regarding its performance and overall results of operations. EBITDA, adjusted EBITDA, adjusted net income and cash flow from operating activities before changes in operating assets and liabilities are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, either net income as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. In addition, EBITDA, adjusted EBITDA, adjusted net income and cash flow from operating activities before changes in operating assets and liabilities are not intended to represent funds available for dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The EBITDA, adjusted EBITDA, adjusted net income and cash flow from operating activities before changes in operating assets and liabilities presented in this press release may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in the Company's various agreements.

Investor & Media Contact:
Jessica Wills 鈥� Director, Investor Relations
jwills@gulfportenergy.com
405-252-4550

Released August 1, 2018