Drilling Down

Gulfport Energy Loses $1.2 Billion in 2015

OKLAHOMA CITY – Gulfport Energy Corp., the largest driller in the southern tier of Ohio’s Utica shale, reports a net loss of $830.9 million for the quarter ended Dec. 31.

For the year, Gulfport posts losses of $1.2 billion, as natural gas and oil prices continued their downward spiral into 2016.

The company posted revenues of $190.3 million during the quarter, better than analysts’ projections.

Most of Gulfport’s drilling activities are in eastern Ohio’s Utica shale – especially in the dry gas-rich southern tier — where the energy company has staked out a substantial acreage position. To date, the company has 243,000 acres under lease in the dry gas/wet gas sector of the shale play.

Gulfport drilled 49 wells in 2015 and started production on 55 during the year, the company said.

“2015 was another transformational year for Gulfport,” said Gulfport CEO Michael G. Moore during a conference call with analysts on Thursday. “Our continued operational execution led to opportunities to expand our position in the Utica.”

The company said it would spend between $335 million and $375 million to drill in the Utica and operate between two and three rigs there during 2016, according to an investors presentation on Gulfport’s website.

This year, Gulfport said it plans to drill between 29 to 32 wells and place between 44 and 48 wells into production during the year.

Moore said production increased 128% during 2015 compared to 2014, noting that its reserve base looks very strong.

“We have a strong liquidity position to fund our 2016 activities,” Moore said. “It’s positioned us well in what looks like to be another challenging year in the energy sector,” he told investors.

Published by The Business Journal, Youngstown, Ohio.