Gulfport Energy Corporation recently released its 10-Q report, providing a detailed look at the company's financial condition and operational performance. The company, incorporated in 1997 and headquartered in Oklahoma City, engages in the acquisition, exploration, development, and production of natural gas, crude oil, and natural gas liquids in the United States. Gulfport's principal properties include Utica and Marcellus in eastern Ohio, and the SCOOP Woodford and Springer formations in central Oklahoma.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations section, Gulfport highlighted several key developments. The company completed its semi-annual borrowing base redetermination under its Credit Facility, reaffirming the borrowing base at $1.1 billion with elected commitments remaining at $900 million. Additionally, Gulfport repurchased 210,075 shares for $29.5 million at a weighted average price of $140.39 per share during the first quarter of 2024.
The report also discussed the impact of the war in Ukraine and the conflict in the Middle East, noting increased volatility in global financial markets and potential disruptions in the global energy markets. Gulfport reported total net production of 1,053.7 MMcfe per day during the first quarter of 2024, generating $188.0 million of operating cash flows and reducing outstanding Credit Facility borrowings by $31.0 million compared to December 31, 2023. The company exited the quarter with total liquidity of $757.4 million.
Regarding production volumes, Gulfport reported that its total net production averaged approximately 1,053.7 MMcfe per day during the three months ended March 31, 2024, consistent with the production during the same period in 2023. The company spudded five gross (4.66 net) wells targeting the Utica formation and commenced sales on five gross (4.98 net) operated Utica wells. In addition, Gulfport had one operated drilling rig running in Ohio drilling the Utica formation as of April 25, 2024.
The report also provided a detailed comparison of the three-month periods ended March 31, 2024, and 2023, including natural gas, oil and condensate, and NGL production and pricing. Gulfport’s natural gas, oil, and NGL sales decreased by 33%, 29%, and 30%, respectively, when comparing the first quarters of 2024 and 2023. The decrease in natural gas sales was primarily due to a 36% decrease in realized prices, partially offset by a 4% increase in sales volumes.
Gulfport's lease operating expenses decreased by 15%, from $19.9 million in the first quarter of 2023 to $16.8 million in the same period of 2024. Similarly, taxes other than income decreased by 23%, from $10.7 million to $8.3 million. The company's interest expense increased by 9% to $15.0 million in the first quarter of 2024, primarily due to a higher average balance outstanding and increased interest rates resulting from the current inflationary environment.
The report also discussed restructuring costs, which amounted to $1.9 million during the first quarter of 2023, and Gulfport's motions to reject certain firm transportation agreements as part of its Chapter 11 Cases and restructuring efforts.
Following these announcements, the company's shares moved -3.7%, and are now trading at a price of $152.86. If you want to know more, read the company's complete 10-Q report here.
