Gulfport Energy (GPOR) Offers Q4 Operational Update

gGulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport” or the “Company”) today provided an operational update for the quarter and year ended December 31, 2016. Key information includes the following:

• Net production during the fourth quarter of 2016 averaged 787.0 MMcfe per day, a 7% increase over the third quarter of 2016 and a 22% increase versus the fourth quarter of 2015, averaging at the high-end of Gulfport’s previously provided fourth quarter 2016 guidance of 765 MMcfe per day to 790 MMcfe per day.
• Net production during the full-year of 2016 averaged 719.8 MMcfe per day, a 31% increase over the full-year of 2015.
• Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $1.85 per Mcf during 2016, a $0.61 per Mcf differential to the average trade month NYMEX settled price, compared to Gulfport’s previously provided full-year of 2016 differential guidance of $0.61 to $0.66 per Mcf below NYMEX settlement prices.
• Realized oil price, before the impact of derivatives and including transportation costs, averaged $38.18 per barrel during 2016, a $5.18 per barrel differential to the average WTI oil price, compared to Gulfport’s previously provided full-year of 2016 differential guidance of $5.50 to $6.50 per barrel below WTI.
• Realized natural gas liquids price, before the impact of derivatives and including transportation costs, averaged $15.37 per barrel during 2016, or $0.37 per gallon, compared to Gulfport’s previously provided full-year of 2016 realization guidance of $0.25 to $0.29 per gallon.
• Increased hedge position to approximately 555 MMcf per day of natural gas fixed price swaps during 2017 at an average price of $3.18 per Mcf and 346 MMcf per day of natural gas fixed price swaps during 2018 at an average price of $3.10 per Mcf.

Fourth Quarter and Full-Year 2016 Production and Realized PricesGulfport’s net daily production for the fourth quarter of 2016 averaged approximately 787.0 MMcfe per day. For the fourth quarter of 2016, Gulfport’s net daily production mix was comprised of approximately 87% natural gas, 9% natural gas liquids and 4% oil. Gulfport’s net daily production for the full-year of 2016 averaged approximately 719.8 MMcfe per day. For the full-year of 2016, Gulfport’s net daily production mix was comprised of approximately 86% natural gas, 9% natural gas liquids and 5% oil.

Gulfport’s realized prices for the fourth quarter of 2016 were $0.41 per Mcf of natural gas, $32.41 per barrel of oil and $0.52 per gallon of NGL, resulting in a total equivalent price of $0.88 per Mcfe. Gulfport's realized prices for the fourth quarter of 2016 include an aggregate non-cash derivative loss of $139.3 million. Before the impact of derivatives, realized prices for the fourth quarter of 2016, including transportation costs, were $2.34 per Mcf of natural gas, $45.15 per barrel of oil and $0.56 per gallon of NGL, for a total equivalent price of $2.67 per Mcfe.

Gulfport’s realized prices for the full-year of 2016 were $1.12 per Mcf of natural gas, $35.65 per barrel of oil and $0.35 per gallon of NGL, resulting in a total equivalent price of $1.46 per Mcfe. Gulfport's realized prices for the full-year of 2016 include an aggregate non-cash derivative loss of $323.3 million. Before the impact of derivatives, realized prices for the full-year of 2016, including transportation costs, were $1.85 per Mcf of natural gas, $38.18 per barrel of oil and $0.37 per gallon of NGL, for a total equivalent price of $2.13 per Mcfe.

DerivativesGulfport has hedged a portion of its expected production to lock in prices and returns that provide certainty of cash flow to execute on its capital plans. The table below sets forth the Company's hedging positions as of January 17, 2017.

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