Gulfport focuses on efficiency after emerging from bankruptcy
Thursday, August 26, 2021
Gulfport Energy is focusing on operational efficiency, capital discipline, free cash flow generation and investor returns over production growth after emerging from bankruptcy in May with a new management team, according to Natural Gas Intelligence.
The restructuring process allowed the company to wipe $1.2 billion of debt from its balance sheet. Now, it will focus on operating more sustainably under the guidance of new CEO Tim Cutt and CFO William Buese, who both previously served in the same roles for QEP Resources Inc.
Backing these initiatives, Gulfport recently reduced the number of executives in order to size the organization for planned operations and reduced its midstream commitments.
The company plans to spend up to $310 million to deliver 2021 net production of 975 MMcfe/d-1.0 Bcfe/d and plans to use this strategy in years ahead to generate free cash flow of $300 million annually.
Learn more: Natural Gas Intelligence > Gulfport changing Utica approach to boost efficiency, cut costs after bankruptcy
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.