Gulfport Energy: Utica Provides “Reliable, Repeatable Growth”

Gulfport Energy is among a number of companies we’re highlighting today that, earlier this week, delivered their 4Q17/full 2017 update. Gulfport is an “independent” oil and gas driller with significant acreage positions in the Utica Shale of eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. Gulfport also owns acreage along the Louisiana Gulf Coast. Although Gulfport drills (we’d call it “dabbles”) elsewhere, make no mistake–the Utica Shale is the company’s main focus. During 2017, Gulfport spud (drilled or began to drill) 94 Utica wells. Gulfport turned-to-sales 68 Utica wells in 2017. The Utica wells drilled last year had an average lateral length of approximately 8,150 feet. It took Gulfport an average of 19.2 days to drill a well, a decrease of 16% over the time it took to drill wells in 2016. Gulfport currently runs three drilling rigs in the Ohio Utica, with plans to decrease that number down to two in March, when the contract expires for one of the rigs. So what about 2018? As you can imagine, running one less rig means drilling less wells in 2018. Gulfport is budgeted to drill 36 to 40 Utica wells with an average lateral length of 11,200 feet this year. They plan to turn-to-sales 33 to 37 wells with an average lateral length of 8,000 feet. Gulfport made a profit of $435.2 million last year, versus losing $979.7 million in 2016 (a $1.5 billion swing into the black). According to CEO Michael Moore, “Our Utica asset provided reliable, repeatable growth throughout the year.” Here’s the full reliable, repeatable Gulfport update…

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