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Gulfport Energy Corporation Reports Fourth Quarter And Year-End 2012 Results

Stocks in this article: GPOR

OKLAHOMA CITY, Feb. 26, 2013 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR) today reported financial and operational results for the quarter and year ended December 31, 2012 and provided an update on its 2013 activities.

For the quarter ended December 31, 2012, Gulfport reported net income of $15.9 million on oil and gas revenues of $56.5 million, or $0.28 per diluted share. For the fourth quarter of 2012, EBITDA (as defined below) was $50.8 million and cash flow from operating activities before changes in working capital was $35.5 million.  

For the year ended December 31, 2012, Gulfport reported net income of $68.4 million on oil and gas revenues of $248.6 million, or $1.21 per diluted share. For 2012, EBITDA (as defined below) was $191.4 million and cash flow from operating activities before changes in working capital was $178.8 million.  

Financial Highlights

  • Produced full-year oil and gas sales volumes of 2.57 million barrels of oil equivalent ("BOE") during 2012, a 10% increase over 2011
  • Generated $50.8 million of EBITDA in the fourth quarter of 2012, a 19% sequential increase over the third quarter of 2012

Production

For the fourth quarter of 2012, net production was 540,558 barrels of oil, 366,258 thousand cubic feet ("MCF") of natural gas and 289,728 gallons of natural gas liquids ("NGL"), or 608,499 BOE. Net production for the fourth quarter of 2012 by region was 293,906 BOE at West Cote Blanche Bay, 217,686 BOE at Hackberry, 69,667 BOE in the Utica Shale, 17,100 BOE in the Permian Basin, and an aggregate of 10,140 BOE in the Bakken, Niobrara and other areas. For 2012, Gulfport recorded net production of 2,323,373 barrels of oil, 1,107,744 MCF of natural gas and 2,714,085 gallons of NGL, or 2,572,618 BOE.

Realized price for the fourth quarter of 2012 including transportation costs was $101.89 per barrel of oil, $3.00 per MCF of natural gas and $1.01 per gallon of NGL, for a total equivalent of $92.80 per BOE. Realized price for the full-year 2012 including transportation costs was $104.46 per barrel of oil, $2.91 per MCF of natural gas and $0.98 per gallon of NGL, for a total equivalent of $96.63 per BOE. Realized prices for oil in the fourth quarter of 2012 reflect the impact of fixed price contracts of approximately 4,000 barrels of oil per day at a weighted average price of $107.29. Gulfport currently has fixed price swaps in place for 5,000 barrels of oil per day at a weighted average price of $100.90 for the remainder of 2013.

         
GULFPORT ENERGY CORPORATION
PRODUCTION SCHEDULE
(Unaudited)
         
Production Volumes: 4Q2012 4Q2011 2012 2011
         
Oil (MBbls) 540.6 617.9 2,323.4 2,128.1
Natural Gas (MMcf) 366.3 186.3 1,107.7 878.1
NGL (MGal) 289.7 535.4 2,714.1 2,468.5
Oil equivalents (MBOE) 608.5 661.7 2,572.6 2,333.2
         
Average Realized Price:        
         
Oil (per Bbl) $101.89 $109.18 $104.46 $104.33
Natural Gas (per Mcf) $3.00 $3.67 $2.91 $4.37
NGL (per Gal) $1.01 $1.39 $0.98 $1.25
Oil equivalents (BOE) $92.80 $104.11 $96.63 $98.13

Year-End 2012 Reserves

Gulfport reported year-end 2012 total proved reserves of 13.88 million BOE, consisting of 8.25 million barrels of oil ("MMBBL"), which includes natural gas liquids, and 33.77 billion cubic feet ("BCF") of natural gas. In addition, Gulfport's third party engineers estimated Gulfport's year-end 2012 probable reserves to be 12.84 million barrels of oil and 80.62 billion cubic feet of natural gas, or 26.27 million BOE. At year-end 2012, 59.8% of Gulfport's proved reserves were classified as proved developed reserves. Giving pro forma effect to Gulfport's contribution of all of its oil and gas interests in the Permian Basin to Diamondback Energy, Inc. ("Diamondback"), as if such contribution had occurred on December 31, 2011, year-end total proved reserves increased 114% over 2011.

       
GULFPORT ENERGY CORPORATION
DECEMBER 31, 2012 NET RESERVES
(Unaudited)
       
  Oil Natural Gas Oil Equivalent
  MMBBL BCF MMBOE
       
Proved Developed Producing  1.88  4.95  2.70
Proved Developed Non-Producing  3.34  13.53  5.60
Proved Undeveloped  3.03  15.29  5.58
       
Total Proved Reserves  8.25  33.77  13.88
       
Probable Reserves  12.84  80.62  26.27
       
Total Proved and Probable Reserves  21.09  114.39  40.15

In accordance with SEC guidelines ("SEC Case"), at year-end 2012, reserve calculations were based on the average first day of the month price for the prior 12 months. The prices utilized for Gulfport's year-end 2012 reserve report were $91.32 per barrel of crude oil and $2.76 per MMBTU of natural gas, in each case as adjusted by lease for transportation fees and regional price differentials. Utilizing these prices, the present value of Gulfport's total proved reserves discounted at 10% (referred to as "PV-10") was $437 million at December 31, 2012. The PV-10 value of our total proved and probable reserves was $863 million at December 31, 2012. In addition to the SEC Case, Gulfport has also prepared estimates of its year-end PV-10 values using two alternate commodity price assumptions. The following table summarizes Gulfport's PV-10 values as of December 31, 2012 under each of the three cases. For the period presented, the SEC Case PV-10 proved reserve values, a non-GAAP measure, are equal to the standardized measure, a GAAP measure.

       
GULFPORT ENERGY CORPORATION
DECEMBER 31, 2012 PV-10 Sensitivities
(Unaudited)
       
  SEC Case Flat Price Case¹ NYMEX Case²
  ($MM) ($MM) ($MM)
       
Proved Developed Producing $119 $119 $121
Proved Developed Non-Producing $182 $187 $188
Proved Undeveloped $136 $141 $149
       
Total Proved Reserves $437 $447 $458
       
Probable Reserves $426 $443 $477
       
Total Proved and Probable Reserves $863 $890 $935
       
¹The Flat Price Case was based on the posted spot prices as of December 31, 2012 for both oil and natural gas.
For oil and natural gas liquids, the West Texas Intermediate posted price of $91.82 per barrel was adjusted by
lease for quality, transportation fees and regional price differentials. For natural gas, the Henry Hub spot price of
$3.35 per MMBTU was adjusted by lease for energy content, transportation fees, and regional price differentials.
Such prices were held constant throughout the estimated lives of the reserves.
²The NYMEX Case was based on the forward closing prices on the New York Mercantile Exchange for oil and
natural gas as of December 31, 2012. For oil and natural gas liquids, the price was based on a crude oil price
which decreased from $93.19 per barrel to $85.59 per barrel during the life of the reserves and was adjusted
by lease for quality, transportation fees and regional price differentials. For natural gas, the price was based on
a natural gas price which increased from $3.56 per MMBTU to $5.16 per MMBTU over the life of the properties
and was adjusted by lease for energy content, transportation fees and regional price differentials.

Grizzly Oil Sands Reserves and Resource

Effective December 31, 2012, third party engineers GLJ Petroleum Consultants Ltd. ("GLJ") provided an assessment report to Grizzly Oil Sands ULC ("Grizzly"), a company in which Gulfport holds an approximate 25% equity interest, estimating that Grizzly has 67 million barrels of proved reserves, 71 million barrels of probable reserves, and 3.1 billion barrels of best estimate (P50) contingent resource.

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