Morningstar | Gulfport Beats Volume Guidance in 2Q
Gulfport delivered production of 1,330 million cubic feet equivalent per day in the second quarter, which was 3% higher sequentially and 28% higher year over year. This was above the top end of the guided range for the quarter, enabling management to positively fine-tune its expectations for the full year (the low end of guidance was raised to 1,320 mmcfe/d from 1,310 mmcfe/d, while the high end is still 1,340 mmcfe/d). The capital budget was unchanged despite this minor increase in expected volumes, even though almost 75% of it was spent in the first half. The firm has since shed a couple of rigs as planned, and will complete fewer wells in the second half. The lower activity level is not expected to dent the firm's growth prospects; however, management is planning for double-digit production growth next year without adding to its four current rigs.Despite the production beat, the firm's financial results were as expected, with adjusted EBITDA and adjusted earnings per share coming in at $214 million and $0.33, respectively (as compared with consensus estimates of $214 million and $0.30). We plan to incorporate these operating and financial results in our model shortly, but after this first look our fair value estimate and no-moat rating remain unchanged.
Gulfport Energy is an oil and natural gas exploration and production company focused on the exploration, exploitation, acquisition and production of natural gas, crude oil and natural gas liquids. The company's principal properties are located in the Utica Shale primarily in Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. In addition, among other interests, the company holds an acreage position along the Louisiana Gulf Coast in the West Cote Blanche Bay and Hackberry fields, an acreage position in the Alberta oil sands in Canada through its interest in Grizzly Oil Sands ULC and an equity interest in Mammoth Energy Services, Inc., an oil field services company.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.