Shares of Gulfport Energy Corporation (GPOR - Free Report) have surged more than 25% since its earnings announcement on Oct 31.
The reasons for the rally were better-than-expected third-quarter results and strong free cash flow generation. The upstream energy player expects to maintain its free cash flow momentum in the fourth-quarter as well. Let’s delve deeper.
Gulfport reported third-quarter 2019 adjusted net income per share of 24 cents, above the Zacks Consensus Estimate of 22 cents. The beat was driven by robust production. Precisely, the upstream player’s output of 1,527 million cubic feet equivalent per day (MMcfe/d) surpassed the Zacks Consensus Estimate of 1,434 MMcfe/d.
On a further bullish note, Gulfport generated free cash flows of $103.4 million, substantially higher than $23.8 million of free cash flows reported in the third quarter of 2018.
However, the bottom line was 51% below the year-earlier quarter's earnings due to lower natural gas price realizations. The company’s average realized natural gas price of $1.64 per thousand cubic feet fell 29.3% year over year and was lower than the Zacks Consensus Estimate of $1.88.
Revenues of $285.2 million missed the Zacks Consensus Estimate of $327 million. The top line also slumped 21% from the year-ago figure of $361 million.