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Gulfport (GPOR) Q2 Earnings Beat by a Whisker, Decline Y/Y
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Gulfport Energy Corporation (GPOR - Free Report) delivered a comprehensive beat in second-quarter 2019, with earnings and sales surpassing estimates. The Oklahoma-based company reported second-quarter adjusted net earnings per share (EPS) of 21 cents, a penny above the Zacks Consensus Estimate, backed by higher-than-expected natural gas realizations. Precisely, natural gas realizations (including derivatives impact) came in at $2.20 per thousand cubic feet, beating the Zacks Consensus Estimate of $2.06. However, the bottom line was below the year-ago EPS of 33 cents a share amid weaker y/y commodity price realizations and higher costs.
Revenues of $459 million surpassed the Zacks Consensus Estimate of $310 million. The top line also surged from the year-ago figure of $253 million.
Production & Realized Prices
Gulfport’s total oil and gas production increased to 1,358.9 million cubic feet equivalent per day (MMcfe/d) from 1,330.3 MMcfe/d recorded in the corresponding period of last year. Of the total output, 90.2% comprised natural gas. Gas production from the Utica Shale declined 1.4% y/y to 95,616 MMcfe. Nearly 85.6% of its output came from the Utica acreage. Output from SCOOP came in at 27,149 MMcfe, higher than the year-ago level of $22,500 MMcfe.
Average realized natural gas oil price (before the impact of derivatives) during the second quarter was $2.02 per thousand cubic feet, lower than the year-ago period’s $2.15. Average realized natural gas liquids price was 45 cents per gallon, down from the year-ago quarter’s 71 cents. Gulfport fetched $56.85 per barrel of oil during the quarter, down from the year-ago figure of $66.26. Overall, the company realized $2.33 per thousand cubic feet equivalent in the quarter vis-a-vis $2.67 a year ago.
Costs, Capex and Balance Sheet
Total expenses in the quarter under review amounted to $242.1 million, higher than $238.9 million in the prior-year period. This uptick is mainly attributed to higher production taxes, and depreciation and midstream gathering/processing charges incurred in the reported quarter. Depreciation costs scaled up 2.4% from the prior-year quarter to $124.9 million.
In the reported quarter, Gulfport spent $112.8 million on drilling and completion. As of Jun 30, the natural gas-weighted energy explorer had approximately $20.8 million in cash and cash equivalents. Gulfport had a long-term debt of $2,198 million, representing a debt-to-capitalization ratio of around 37.8%.
2019 Guidance Retained
Gulfport reiterated its 2019 guidance that was unveiled in January. The upstream player expects 2019 capex in the band of $565-$600 million. It projects 2019 production within 1,360-1,400 MMcfe/d. The company expects free cash flow to exceed $100 million.
Some better-ranked stocks in the energy space are Oasis Midstream Partners LP , TC PipeLines, LP and Dril-Quip, Inc. (DRQ - Free Report) , each carrying a Zacks Rank #2 (Buy).
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Gulfport (GPOR) Q2 Earnings Beat by a Whisker, Decline Y/Y
Gulfport Energy Corporation (GPOR - Free Report) delivered a comprehensive beat in second-quarter 2019, with earnings and sales surpassing estimates. The Oklahoma-based company reported second-quarter adjusted net earnings per share (EPS) of 21 cents, a penny above the Zacks Consensus Estimate, backed by higher-than-expected natural gas realizations. Precisely, natural gas realizations (including derivatives impact) came in at $2.20 per thousand cubic feet, beating the Zacks Consensus Estimate of $2.06. However, the bottom line was below the year-ago EPS of 33 cents a share amid weaker y/y commodity price realizations and higher costs.
Revenues of $459 million surpassed the Zacks Consensus Estimate of $310 million. The top line also surged from the year-ago figure of $253 million.
Production & Realized Prices
Gulfport’s total oil and gas production increased to 1,358.9 million cubic feet equivalent per day (MMcfe/d) from 1,330.3 MMcfe/d recorded in the corresponding period of last year. Of the total output, 90.2% comprised natural gas. Gas production from the Utica Shale declined 1.4% y/y to 95,616 MMcfe. Nearly 85.6% of its output came from the Utica acreage. Output from SCOOP came in at 27,149 MMcfe, higher than the year-ago level of $22,500 MMcfe.
Average realized natural gas oil price (before the impact of derivatives) during the second quarter was $2.02 per thousand cubic feet, lower than the year-ago period’s $2.15. Average realized natural gas liquids price was 45 cents per gallon, down from the year-ago quarter’s 71 cents. Gulfport fetched $56.85 per barrel of oil during the quarter, down from the year-ago figure of $66.26. Overall, the company realized $2.33 per thousand cubic feet equivalent in the quarter vis-a-vis $2.67 a year ago.
Costs, Capex and Balance Sheet
Total expenses in the quarter under review amounted to $242.1 million, higher than $238.9 million in the prior-year period. This uptick is mainly attributed to higher production taxes, and depreciation and midstream gathering/processing charges incurred in the reported quarter. Depreciation costs scaled up 2.4% from the prior-year quarter to $124.9 million.
In the reported quarter, Gulfport spent $112.8 million on drilling and completion. As of Jun 30, the natural gas-weighted energy explorer had approximately $20.8 million in cash and cash equivalents. Gulfport had a long-term debt of $2,198 million, representing a debt-to-capitalization ratio of around 37.8%.
2019 Guidance Retained
Gulfport reiterated its 2019 guidance that was unveiled in January. The upstream player expects 2019 capex in the band of $565-$600 million. It projects 2019 production within 1,360-1,400 MMcfe/d. The company expects free cash flow to exceed $100 million.
Zacks Rank & Key Picks
Gulfport currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the energy space are Oasis Midstream Partners LP , TC PipeLines, LP and Dril-Quip, Inc. (DRQ - Free Report) , each carrying a Zacks Rank #2 (Buy).
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>