Gulfport Energy Corp. (NASDAQ:GPOR) Q3 2019 Earnings Conference Call Transcript

Nov 01, 2019 • 09:00 am ET

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Gulfport Energy Corp. (NASDAQ:GPOR) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Gulfport Energy Corp Third Quarter 2019 Conference Call. [Operator Instructions]. A question-and-answer session will follow the formal presentation. [Operator Instructions] It is now my pleasure to introduce your host, Jessica Antle. Thank you. You may begin.

Executive
Jessica Antle

Thank you and good morning. Welcome to Gulfport Energy Corporation's 3rd Quarter 2019 Earnings Conference Call. I am Jessica Antle, Director of Investor Relations. Speakers on today's call include David Wood, Chief Executive Officer and President and Quentin Hicks, Executive Vice President and Chief Financial Officer. In addition, with me today available for the question and answer portion of the call is Donnie Moore, Chief Operating Officer. I would like to remind everybody that during this conference call, the participants may make certain forward-looking statements relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. We caution you that the results could differ materially from those that are included in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the Company's filings with the SEC.

In addition, we may make reference to non-GAAP measures, reconciliations to the comparable GAAP measures will be posted on our website. Yesterday afternoon Gulfport reported 3rd quarter 2019 net loss of $48.8 million or $0.31 per diluted share. These results contain several non-cash or non-reoccurring items as presented in our press release filed yesterday evening, which provided detailed reconciliations of the adjusted items. Comparable to analyst estimates our adjusted net income for the 3rd quarter of 2019, which excludes all of the previous mentioned adjusted items was $39 million or $0.24 per diluted share.

An updated Gulfport presentation was posted yesterday evening to our website in conjunction with the earnings announcement. Please review at your leisure.

At this time, I would like to turn the call over to David Wood, CEO of Gulfport Energy.

Executive
David M. Wood

Thank you, Jessica and thank you all for joining us on this morning's call. Gulfport's 3rd quarter is underscored by our continued strong performance from each of our operating areas and achieving the next phase of our 2019 plan provided at the start of the year, free cash flow generation. We exceeded our production targets, while adhering to our capital budget, improved our balance sheet through the previously announced repurchase of senior notes, and generated significant cash flow from our 2019 activities.

For the third quarter, we reported $39 million of adjusted net income and generated $219.4 million of adjusted EBITDA. In addition, operating cash flow before the changes in working capital and inclusive of capitalized expenses totaled $173.6 million and we generated free cash flow of approximately $103.4 million during the third quarter of 2019.

Total net production averaged 157 billion cubic feet of gas equivalent per day, increasing 12% quarter-over-quarter and driven by the strong momentum carried over from the second quarter, turn in lines in the Utica Shale and continued performance of our base production in the SCOOP. We remain on track to deliver on