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Mar 31, 2024
Gulfport Q1 2024 Earnings Report
Gulfport reported strong first quarter results, driven by operational efficiencies and robust free cash flow generation.
Key Takeaways
Gulfport Energy Corporation reported its financial and operational results for the first quarter of 2024. The company highlighted improvements in operational efficiencies and strong adjusted free cash flow generation, which allowed for continued capital returns to shareholders through common stock repurchases. Despite the low natural gas price environment, Gulfport is deferring certain drilling and completion activities to the second half of 2024, expecting a positive financial impact and maintaining full year guidance.
Operational efficiencies improved, leading to capital spending below analyst expectations.
Adjusted free cash flow generation was robust, enabling continued capital returns to shareholders.
The company is deferring certain drilling and completion activities to the second half of 2024 due to the current low natural gas price environment.
Full year 2024 guidance was reaffirmed, with expectations of robust adjusted free cash flow generation driven by improving capital efficiencies and a focus on liquids-rich development.
Forward Guidance
The Company is reaffirming its full year 2024 guidance previously issued on February 27, 2024 and anticipates the shift in D&C activity will result in a negligible impact to its full year 2024 net production.
Positive Outlook
- Full year 2024 guidance reaffirmed.
- Reaffirmed borrowing base at $1.1 billion.
- Elected commitments remaining at $900 million.
- Expects a negligible impact to its full year 2024 net production.
- Forecasts approximately 65% of its D&C capital expenditures will be invested during the first half of 2024.
Challenges Ahead
- Deferring certain drilling and completion activities until the second half of 2024.
- Current natural gas environment impacting drilling and completion plans.
- Volatility in commodity prices.
- Exposure to commodity price fluctuations mitigated through derivative contracts.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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