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Gulfport (GPOR) Sees Higher Q3 Production, Lower Prices

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Gulfport Energy Corporation GPOR issued a comprehensive update on third-quarter 2019 results pertaining to pricing and production.

Let’s delve deeper.

Production & Realized Prices

Gulfport’s total oil and gas production increased to 1,527 million cubic feet equivalent per day (MMcfe/d) from 1,427 MMcfe/d in the corresponding period of last year. Of the total output, 93% comprised natural gas while the remaining 5% and 2% comprised NGL and oil, respectively.

Average realized natural gas oil price (before the impact of derivatives) during the third quarter was $1.64 per thousand cubic feet, lower than the year-ago period’s $2.32. Average realized natural gas liquids price was 38 cents per gallon, down from the year-ago quarter’s 74 cents. Gulfport fetched $51.75 per barrel of oil during the quarter, down from the year-ago figure of $68.73. Overall, the company realized $1.84 per thousand cubic feet equivalent in the quarter vis-a-vis $2.82 a year ago.

Events in Q3

In the quarter under review, this Oklahoma-based company drilled three wells, one gross and net operated well in the South-Central Oklahoma Oil Province (SCOOP) and the remaining in the Utica Shale field.

Further, in the third quarter, Gulfport ended drilling three gross operated wells in the Utica Shale and two other, which were in different stages of completion. It also turned-to-sales 16 gross operated wells in the Utica Shale during the period.

On a further positive note, Gulfport projects its net full-year daily production in the mid-point of the previously provided guided range of 1,360-1,400 MMcfe per day.

Gulfport, which is engaged in the acquisition, exploration, development and production of oil and natural gas properties in the United States, is scheduled to announce third-quarter earnings on Oct 31. The Zacks Consensus Estimate for the company’s quarterly earnings of 25 cents is indicative of a 49% decrease from the figure reported in the same period last year.

Zacks Rank & Key Picks

Gulfport carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include BP Midstream Partners BPMP, Magellan Midstream (MMP - Free Report) and TC Energy Corp. TRP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BP Midstream’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters.

Magellan Midstream’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters.

TC Energy earnings beat the Zacks Consensus Estimate in each of the last four quarters.

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