Gulfport Energy(US:GPOR)2022-05-04 19:43Financial Performance - Total revenues for the three months ended March 31, 2022, were $(307,816) thousand, compared to $247,358 thousand for the same period in 2021, reflecting a significant decrease[33]. - The net loss attributable to common stockholders for Q1 2022 was $(493,422) thousand, compared to a net income of $8,780 thousand in Q1 2021[33]. - The company reported a comprehensive loss of $(491,975) thousand for Q1 2022, compared to a comprehensive income of $11,350 thousand in Q1 2021[36]. - Net loss for the three months ended March 31, 2022, was $491,975, compared to a net income of $8,780 for the same period in 2021[42]. - Basic and diluted earnings per share (EPS) for the Successor Quarter was $(23.23), a significant decrease from $0.05 in the Predecessor Quarter[97]. Revenue and Sales - Natural gas sales increased to $405,212 thousand in Q1 2022 from $235,321 thousand in Q1 2021, representing a growth of approximately 72%[33]. - Total sales for natural gas reached $405,212, a 72% increase from $235,321 in the previous year[170]. - Oil and condensate sales increased by 66% to $30,239, driven by a 74% increase in realized prices[171]. - NGL sales surged by 90% to $45,284, supported by a 56% increase in realized prices and a 22% increase in sales volumes[172]. Assets and Liabilities - Total current assets as of March 31, 2022, were $272,315 thousand, slightly down from $273,551 thousand as of December 31, 2021[31]. - Total liabilities increased to $2,103,185 thousand as of March 31, 2022, from $1,560,858 thousand as of December 31, 2021, indicating a rise of approximately 34.8%[31]. - The company reported a total of $1,898,678 thousand in net property and equipment as of March 31, 2022, compared to $1,855,828 thousand at the end of 2021[31]. - The Company had total debt of $573,996 as of March 31, 2022, down from $712,946 as of December 31, 2021, indicating a reduction of 19.5%[60]. Cash Flow and Operating Activities - Net cash provided by operating activities increased to $253,696 for the Successor Quarter, up from $123,175 in the Predecessor Quarter, representing a growth of 105.6%[42]. - The company generated $253.7 million in net cash from operating activities for the Successor Quarter, compared to $123.2 million for the Predecessor Quarter, primarily due to increased realized commodity prices[203]. - The company incurred $139 million in net debt activity during the Successor Quarter, with $456 million in borrowings and $317 million in repayments on its Credit Facility[207]. Expenses - Operating expenses for Q1 2022 totaled $184,985 thousand, a decrease from $196,501 thousand in Q1 2021[33]. - Total lease operating expenses rose to $17,644, a 39% increase compared to $12,653 in Q1 2021[174]. - General and administrative expenses decreased by 44% to $7,105, down from $12,757 in the previous year[179]. - Interest expense increased to $13,984 in Q1 2022, compared to $3,261 in Q1 2021, due to changes in the debt structure[181]. Derivative Activities - The Company’s derivative activities allow for greater predictability in revenue, mitigating exposure to adverse market price changes for natural gas, oil, and NGL[215]. - The company utilizes various derivative instruments to mitigate exposure to adverse market changes in natural gas, oil, and NGL prices[199]. - The fair value of the company's derivative instruments is determined using established index prices, volatility curves, and option pricing models[220]. - The company cash-settles the difference with counterparties if the applicable monthly price indices are outside the ranges set by the floor and ceiling prices in its costless collars[221]. Stock and Dividends - The Company paid $1.5 million in cash dividends to holders of preferred stock during the Successor Quarter[84]. - The Company has repurchased 438,082 shares for approximately $35.5 million under the stock repurchase program, at a weighted average price of $81.06 per share[76]. - The Company approved an increase in the common stock repurchase program from $100 million to $200 million in April 2022[153]. Production and Operations - Total net production averaged approximately 1,008.1 MMcfe per day during the Successor Quarter, a 3% increase from 982.7 MMcfe per day in the Predecessor Quarter[163]. - Natural gas production volumes increased to 83,205 MMcf in Q1 2022, up from 81,832 MMcf in Q1 2021, representing a 2% increase[169]. - The company spud five gross (5.0 net) wells in the Utica during the Successor Quarter, with three gross (1.7 net) operated wells completed[164]. Environmental and Regulatory - The Company has implemented various policies to mitigate environmental risks and established reserves for probable environmental liabilities[106]. - The Company has potential liabilities exceeding approximately $64 million if it is not permitted to reject a firm transportation contract with Rover Pipeline LLC[102].