Gulfport Energy Corp. (NASDAQ:GPOR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 10:00 am ET

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Gulfport Energy Corp. (NASDAQ:GPOR) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to Gulfport's Second Quarter 2020 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Jessica Antle.

Executive
Jessica R. Antle

Thank you, and good morning. Welcome to Gulfport Energy Corporation's Second Quarter 2020 Earnings Conference Call. I am Jessica Antle, the 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. 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, clients, objectives, future performance and business. We caution you that the actual results could differ materially from those that are indicated 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. 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. Welcome, everyone, and thank you all for joining us this morning. As we closed a very difficult quarter for our industry, I want to thank the employees of Gulfport for their focus, dedication and perseverance during these unique times. The global pandemic and the resulting collapse in demand have appended many businesses. As economies around the world emerge from lockdowns, the path forward remains uncertain. The safety of our employee and contractors remains a top priority, and we continue to take the appropriate measures to provide a safe working environment for everyone. Our field staff continues to do a terrific job ensuring that our operations carry on without significant disruption, while most importantly, maintaining safe practices. Overall, I am proud of our team's ability to stay focused during this extraordinary time while continuing to execute on the key strategic initiatives we laid out for 2020. Although many lockdowns have been easing, the situation remains fluid and the visibility on the world's economic outlook remains extremely limited. Given the unpredictability regarding the pace of recovery for the global economy and specifically energy land, oil and gas producer activity in the second half of the year is uncertain, and we see this continue to weigh across all energy markets.

On the supply side, we witnessed a dramatic reduction in capital spending from our oil-weighted peers early in the year. However, with oil now having just crossed near $40 a barrel, we have started to see some activity return, and with it, the associated gas production come back to market. At the same time, we are experiencing 25-year pricing lows on natural gas. Several gas producers, including Gulfport, have curtailed or deferred near-term production and made interpreting