Page 7 - NorthAmOil Week 10 2023

NorthAmOil PERFORMANCE NorthAmOil

Gulfport expects 2-6% net

production increase in 2023

US GULFPORT Energy expects a 2-6% net produc- per unit operating cost of around 7% compared
tion increase in 2023 compared with 2022. This to 2022. Minimal, if any, service cost inflation is
would amount to an increase of 1,000mn cubic anticipated in 2023, it added.
feet (28,317 cubic metres) per day to 1,040 mmcf For the whole of 2022, Gulfport reported total
(39,644 cubic metres) per day, the company said. net production of 983.4 mmcf (27.8mn cubic
Gulfport is an independent natural gas- metres) per day, primarily consisting of 692.9
weighted exploration and production company mmcf (19.6 mcm) per day in the Utica and 290.5 Gulfport also
focused on the Appalachia and Anadarko basins. mmcf (8.2 mcm) per day in the SCOOP.
Its principal properties are located in eastern Gulfport’s net daily production mix in 2022 increased the
Ohio – targeting the Utica formation – and in was comprised of around 90% natural gas,
central Oklahoma targeting the South Central 7% natural gas liquids (NGLs) and 3% oil and borrowing
Oklahoma Oil Province (SCOOP) Woodford condensate.
and SCOOP Springer formations. The company reported net income of base under its
The company is planning to invest $450mn $494.7mn in 2022 and $768.4mn of adjusted revolving credit
in 2023, including $50-75mn on leasehold and EBITDA. Gulfport generated $739.1mn of net
land investment. cash provided by operating activities over the facility from
Gulfport has projected that its project drill- year and $240.6mn of adjusted free cash flow.
ing and completion capital expenditures will Gulfport also increased the borrowing $850mn to
decrease by around 6% in 2023, compared with base under its revolving credit facility from
2022. It anticipates turning 22-24 gross wells to $850mn to $1.0bn and reduced its total debt $1.0bn.
sales this year, which includes two wells target- by $19mn.
ing the Marcellus shale, two wells in the SCOOP The company reported total proven reserves
and the remaining wells targeting the Utica of 4.0 trillion cubic feet (113.2bn cubic metres),
formation. an increase of 4% compared with 2021. Addi-
A Marcellus delineation test is planned in tionally, it added incremental hedge positions
Belmont County, Ohio and could unlock valua- for 2023 covering approximately 36% of pro-
ble inventory underlying the company’s current duction with weighted-average floors of $3.76
acreage, said Gulfport. per million British thermal units ($99.47 per
The company has also forecast a reduction 1,000 cubic metres).™

Week 10 09•March•2023 www. NEWSBASE .com P7