Gulfport Energy Reports 3rd Quarter Results; Suspending Utica Shale Operations?

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Gulfport Energy has reported its 3rd quarter results, and as with other producers, the effects of the oil and gas downturn are evident in the company's financial results and the statement from CEO Michael Moore that Gulfport is not going to follow through with plans to add a fifth rig in the Utica shale at the start of 2016.  From the company's press release:
For the third quarter of 2015, Gulfport reported a net loss of $388.2 million, or $3.59 per diluted share, on oil and natural gas revenues of $230.4 million.  For the third quarter of 2015, EBITDA (as defined below) was $94.6 million and cash flow from operating activities before changes in working capital was $82.8 million.  The GAAP net income for the third quarter of 2015 included the following items:  
  • Aggregate non-cash unrealized hedge gain of $62.2 million.
  • Aggregate loss of $594.8 million in connection with the impairment of oil and gas properties.
  • Aggregate loss of $58.0 million in connection with the impairment of Gulfport’s equity interest in Grizzly Oil Sands.
  • Aggregate loss of $3.9 million in connection with Gulfport's equity interests in certain equity investments.
  • Associated adjusted taxable benefit of $1.6 million.
Excluding the effect of these items, Gulfport’s financial results for the third quarter of 2015 were as follows:
  • Adjusted oil and natural gas revenues of $168.2 million.
  • Adjusted net loss of $8.7 million, or $0.08 per diluted share.
  • Adjusted EBITDA (as defined below) was $94.3 million.
Click here to read much more.

In associated news, Marcellus Drilling News has reported a rumor that Gulfport Energy is planning to suspend all Utica shale operations until the end of the 1st quarter in 2016.  There is nothing to substantiate this report at this time, but we'll keep on the lookout for news.

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