Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport” or the
“Company”) today reported financial and operational results for the
three months and six months ended June 30, 2020 and provided
an update on its 2020 activities. Key highlights are as
follows:
- Continued improvement in well costs
with Utica Shale and SCOOP total costs per lateral foot for the
six-month period declining by 18% and 31%, respectively, versus
full year 2019 levels
- Reported net loss of $561.1
million, or $3.51 per diluted share for the second quarter
- Reported adjusted net income
(non-GAAP) of $47.1 million, or $0.29 per diluted share for the
second quarter
- Generated adjusted EBITDA
(non-GAAP) of $145.0 million for the second quarter
- Reported cash provided by operating
activities of $116.4 million for the second quarter
- Generated operating cash flow
(non-GAAP), excluding working capital changes, of $97.9 million for
the second quarter
- Generated free cash flow (non-GAAP)
of $43.9 million for the second quarter
See the supplemental tables at the end of this
press release for a reconciliation of non-GAAP measures including
adjusted net income, EBITDA, adjusted EBITDA, operating cash flow
and free cash flow.
2020 Capital ExpendituresThe
Company's incurred capital expenditures during the second quarter
of 2020 benefited from continued improvement in drilling and
completions operations, efficiency gains and lower service costs.
During the second quarter of 2020, Gulfport's incurred total
capital expenditures were $54.0 million. Gulfport’s incurred total
capital expenditures includes approximately $51.7 million of
drilling and completion (“D&C”) capital expenditures and $2.3
million of land capital expenditures.
For the six-month period ended June 30,
2020, Gulfport's incurred total capital expenditures were $189.3
million. Gulfport’s incurred total capital expenditures includes
approximately $182.5 million of D&C capital expenditures and
$6.8 million of land capital expenditures.
2020 Operational UpdateAs a
result of the current commodity price environment, during the
second quarter of 2020 Gulfport made the strategic decision to
defer near-term production to later periods in 2020 and early 2021,
when natural gas prices are expected to be higher. In addition,
Gulfport now plans to complete an additional 7 gross wells in the
Utica Shale in the second half of 2020. This additional activity
provides incremental production late this year and into early 2021
in the anticipation of higher prices during the winter months.
Gulfport expects minimal impact to full year 2020 production levels
from this activity and reaffirms its 2020 full year net production
to average 1,000 MMcfe to 1,075 MMcfe per day. In addition, based
on current pricing levels, Gulfport forecasts its third quarter of
2020 production to average approximately 980 MMcfe to 1,030 MMcfe
per day.
Efficient operations and continued improvements
in drilling and completions costs allows Gulfport to add this
incremental activity projecting 2020 total capital expenditures to
be at the low-end of the previously provided range of $285 million
to $310 million.
Balance Sheet and LiquidityAs
of June 30, 2020, the Company’s liquidity totaled approximately
$255.7 million, comprised of the $700 million borrowing base plus
approximately $2.8 million in cash on hand less $324.1 million
outstanding letters of credit and $123.0 million of revolver
draw.
Production and Realized
PricesGulfport’s net daily production for the second
quarter of 2020 averaged approximately 1,027 MMcfe per day. For the
second quarter of 2020, Gulfport’s net daily production mix was
comprised of approximately 91% natural gas, 6% natural gas liquids
("NGL") and 3% oil. For the three-month period ended June 30,
2020, key realized price highlights are as follows:
- Realized natural gas price, before
the impact of derivatives and including transportation costs,
averaged $1.02 per Mcf, a $0.70 per Mcf differential to the average
trade month NYMEX settled price
- Realized oil price, before the
impact of derivatives and including transportation costs, averaged
$20.14 per barrel, a $7.71 per barrel differential to the average
WTI oil price
- Realized natural gas liquids,
before the impact of derivatives and including transportation
costs, averaged $0.25 per gallon, equivalent to $10.29 per barrel,
or approximately 37% of the average WTI oil price
For the six-month period ended June 30,
2020, key realized price highlights are as follows:
- Realized natural gas price, before
the impact of derivatives and including transportation costs,
averaged $1.14 per Mcf, a $0.70 per Mcf differential to the average
trade month NYMEX settled price
- Realized oil price, before the
impact of derivatives and including transportation costs, averaged
$33.26 per barrel, a $3.71 per barrel differential to the average
WTI oil price
- Realized NGL price, before the
impact of derivatives and including transportation costs, averaged
$0.31 per gallon, equivalent to $12.91 per barrel, or approximately
35% of the average WTI oil price
|
GULFPORT ENERGY CORPORATION |
PRODUCTION SCHEDULE |
(Unaudited) |
|
Three months ended |
|
Six months ended |
|
June 30, |
|
June 30, |
Production
Volumes: |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Natural gas (MMcf) |
84,988 |
|
|
111,603 |
|
|
171,047 |
|
|
213,682 |
|
Oil (MBbls) |
417 |
|
|
649 |
|
|
948 |
|
|
1,261 |
|
NGL (MGal) |
41,829 |
|
|
57,189 |
|
|
88,346 |
|
|
113,019 |
|
Gas equivalent (MMcfe) |
93,463 |
|
|
123,668 |
|
|
189,359 |
|
|
237,394 |
|
Gas equivalent (Mcfe per
day) |
1,027,065 |
|
|
1,358,989 |
|
|
1,040,432 |
|
|
1,311,567 |
|
|
|
|
|
|
|
|
|
Average Realized
Prices |
|
|
|
|
|
|
|
(after
deducts for transportation costs and before the impact of
derivatives): |
|
|
|
|
|
|
|
|
Natural gas (per Mcf) |
$ |
1.02 |
|
|
$ |
2.02 |
|
|
$ |
1.14 |
|
|
$ |
2.35 |
|
Oil (per Bbl) |
$ |
20.14 |
|
|
$ |
56.85 |
|
|
$ |
33.26 |
|
|
$ |
55.03 |
|
NGL (per Gal) |
$ |
0.25 |
|
|
$ |
0.45 |
|
|
$ |
0.31 |
|
|
$ |
0.51 |
|
Gas equivalent (per Mcfe) |
$ |
1.13 |
|
|
$ |
2.33 |
|
|
$ |
1.34 |
|
|
$ |
2.65 |
|
|
|
|
|
|
|
|
|
Average Realized
Prices: |
|
|
|
|
|
|
|
(after
deducts for transportation costs and including cash-settlement of
derivatives): |
|
|
|
|
|
|
|
|
Natural gas (per Mcf) |
$ |
2.01 |
|
|
$ |
2.20 |
|
|
$ |
1.99 |
|
|
$ |
2.32 |
|
Oil (per Bbl) |
$ |
117.26 |
|
|
$ |
57.42 |
|
|
$ |
85.93 |
|
|
$ |
55.34 |
|
NGL (per Gal) |
$ |
0.25 |
|
|
$ |
0.51 |
|
|
$ |
0.31 |
|
|
$ |
0.55 |
|
Gas equivalent (per Mcfe) |
$ |
2.46 |
|
|
$ |
2.52 |
|
|
$ |
2.37 |
|
|
$ |
2.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below summarizes Gulfport’s second
quarter of 2020 production by asset area:
|
GULFPORT ENERGY CORPORATION |
PRODUCTION BY AREA |
(Unaudited) |
|
Three months ended |
|
Six months ended |
|
June 30, |
|
June 30, |
|
2020 |
2020 |
|
2020 |
2019 |
Utica
Shale |
|
|
|
|
|
Natural gas (MMcf) |
70,531 |
|
92,301 |
|
|
142,037 |
|
178,002 |
|
Oil (MBbls) |
28 |
|
57 |
|
|
82 |
|
122 |
|
NGL (MGal) |
9,676 |
|
20,827 |
|
|
21,897 |
|
44,163 |
|
Gas equivalent (MMcfe) |
72,082 |
|
95,616 |
|
|
145,657 |
|
185,044 |
|
Gas equivalent (Mcfe per
day) |
792,106 |
|
1,050,724 |
|
|
800,313 |
|
1,022,341 |
|
|
|
|
|
|
|
SCOOP |
|
|
|
|
|
Natural gas (MMcf) |
14,452 |
|
19,283 |
|
|
29,002 |
|
35,649 |
|
Oil (MBbls) |
381 |
|
446 |
|
|
852 |
|
844 |
|
NGL (MGal) |
32,146 |
|
36,342 |
|
|
66,443 |
|
68,822 |
|
Gas equivalent (MMcfe) |
21,330 |
|
27,149 |
|
|
43,604 |
|
50,543 |
|
Gas equivalent (Mcfe per
day) |
234,396 |
|
298,343 |
|
|
239,583 |
|
279,243 |
|
|
|
|
|
|
|
Other |
|
|
|
|
|
Natural gas (MMcf) |
5 |
|
19 |
|
|
8 |
|
31 |
|
Oil (MBbls) |
8 |
|
147 |
|
|
15 |
|
295 |
|
NGL (MGal) |
7 |
|
19 |
|
|
6 |
|
34 |
|
Gas equivalent (MMcfe) |
51 |
|
903 |
|
|
97 |
|
1,807 |
|
Gas equivalent (Mcfe per
day) |
563 |
|
9,922 |
|
|
536 |
|
9,983 |
|
|
|
|
|
|
|
|
|
|
|
Operational Update The table
below summarizes Gulfport's activity for the three-month and
six-month period ended June 30, 2020:
|
GULFPORT ENERGY CORPORATION |
ACTIVITY SUMMARY |
(Unaudited) |
|
Three months ended |
Three months ended |
|
|
|
March 31, |
June 30, |
|
Guidance |
|
2020 |
2020 |
|
2020 |
Net Wells
Spud |
|
|
|
|
Utica - Operated |
7.0 |
|
4.1 |
|
|
15 |
SCOOP - Operated |
4.5 |
|
0.7 |
|
|
8 |
Total |
11.5 |
|
4.8 |
|
|
|
|
|
|
|
|
Net Wells
Completed |
|
|
|
|
Utica - Operated |
15.0 |
|
7.0 |
|
|
|
SCOOP - Operated |
3.8 |
|
— |
|
|
|
Total |
18.8 |
|
7.0 |
|
|
|
|
|
|
|
|
Net Wells
Turned-to-Sales |
|
|
|
|
Utica - Operated |
3.0 |
|
10.0 |
|
|
25 |
SCOOP - Operated |
3.8 |
|
— |
|
|
4 |
Total |
6.8 |
|
10.0 |
|
|
|
|
|
|
|
|
|
|
Utica ShaleIn the Utica Shale,
during the second quarter of 2020, Gulfport spud five gross (4.1
net) operated wells. The wells drilled during this period had an
average lateral length of approximately 8,300 feet. In addition,
Gulfport turned-to-sales 10 gross (10 net) operated wells with an
average stimulated lateral length of approximately 9,500 feet.
For the six-month period ended June 30,
2020, Gulfport spud 12 gross (11.1 net) operated wells. The wells
drilled during this period had an average lateral length of
approximately 9,500 feet. Normalizing to an 8,000 foot lateral
length, Gulfport's average drilling days from spud to rig release
totaled approximately 18.5 days, an improvement of 6% from the 2019
average. In addition, Gulfport turned-to-sales 13 gross (13 net)
operated wells with an average stimulated lateral length of
approximately 10,800 feet. Total well costs per lateral foot were
$915 in the six-month period ended June 30, 2020, an
improvement of 18% versus full year 2019 levels.
At present, Gulfport has one operated drilling
rig running in the play and expects to continue running one rig
through the third quarter of 2020.
SCOOPIn the SCOOP, during the
second quarter of 2020, Gulfport spud one gross (0.7 net) operated
well which had an average lateral length of approximately 9,200
feet.
For the six-month period ended June 30,
2020, Gulfport spud six gross (5.2 net) operated wells. The wells
drilled during this period had an average lateral length of
approximately 9,400 feet. Normalizing to an 8,000 foot lateral
length, Gulfport's average drilling days from spud to rig release
totaled approximately 37.0 days, an improvement of 32% from the
2019 average. Total well costs per lateral foot were $1,065 in the
six-month period ended June 30, 2020, an improvement of 31%
versus full year 2019 levels.
At present, Gulfport has one operated drilling
rig running in the play and expects to continue running one rig for
the remainder of 2020.
DerivativesThe table below
details the Company's hedging positions as of August 4, 2020:
|
GULFPORT ENERGY CORPORATION |
COMMODITY DERIVATIVES - HEDGE POSITION |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q2020 |
|
4Q2020 |
|
|
|
|
Natural
Gas: |
|
|
|
|
|
|
|
Swap Contracts
(NYMEX) |
|
|
|
|
|
|
|
Volume (BBtupd) |
378 |
|
|
470 |
|
|
|
|
|
Price ($ per MMBtu) |
$ |
2.87 |
|
|
$ |
2.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basis Swap Contracts
(OGT) |
|
|
|
|
|
|
|
Volume (BBtupd) |
10 |
|
|
10 |
|
|
|
|
|
Differential ($ per
MMBtu) |
$ |
(0.54 |
) |
|
$ |
(0.54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Basis Swap Contracts
(Transco Zone 4) |
|
|
|
|
|
|
|
Volume (BBtupd) |
60 |
|
|
60 |
|
|
|
|
|
Differential ($ per
MMBtu) |
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Oil: |
|
|
|
|
|
|
|
Swap Contracts
(WTI) |
|
|
|
|
|
|
|
Volume (Bblpd) |
3,000 |
|
|
3,000 |
|
|
|
|
|
Price ($ per Bbl) |
$ |
35.49 |
|
|
$ |
35.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NGL: |
|
|
|
|
|
|
|
C3 Propane Swap
Contracts |
|
|
|
|
|
|
|
Volume (Bblpd) |
1,500 |
|
|
1,500 |
|
|
|
|
|
Price ($ per Gal) |
$ |
0.48 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020(1) |
|
2021 |
|
2022 |
|
2023 |
Natural
Gas: |
|
|
|
|
|
|
|
Swap Contracts
(NYMEX) |
|
|
|
|
|
|
|
Volume (BBtupd) |
424 |
|
|
— |
|
|
— |
|
|
— |
|
Price ($ per MMBtu) |
$ |
2.78 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Collars
(NYMEX) |
|
|
|
|
|
|
|
Volume (BBtupd) |
— |
|
|
250 |
|
|
— |
|
|
— |
|
Weighted Average Floor
Purchase Price ($ per MMBtu) |
$ |
— |
|
|
$ |
2.46 |
|
|
$ |
— |
|
|
$ |
— |
|
Weighted Average Ceiling Sold
Price ($ per MMBtu) |
$ |
— |
|
|
$ |
2.81 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Call Option Contracts
Sold (NYMEX) |
|
|
|
|
|
|
|
Volume (BBtupd) |
— |
|
|
— |
|
|
628 |
|
|
628 |
|
Price ($ per MMBtu) |
$ |
— |
|
|
$ |
— |
|
|
$ |
2.90 |
|
|
$ |
2.90 |
|
|
|
|
|
|
|
|
|
Basis Swap Contracts
(OGT) |
|
|
|
|
|
|
|
Volume (BBtupd) |
10 |
|
|
— |
|
|
— |
|
|
— |
|
Differential ($ per
MMBtu) |
$ |
(0.54 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Basis Swap Contracts
(Transco Zone 4) |
|
|
|
|
|
|
|
Volume (BBtupd) |
60 |
|
|
— |
|
|
— |
|
|
— |
|
Differential ($ per
MMBtu) |
$ |
(0.05 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Oil: |
|
|
|
|
|
|
|
Swap Contracts
(WTI) |
|
|
|
|
|
|
|
Volume (Bblpd) |
3,000 |
|
|
— |
|
|
— |
|
|
— |
|
Price ($ per Bbl) |
$ |
35.49 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
NGL: |
|
|
|
|
|
|
|
C3 Propane Swap
Contracts |
|
|
|
|
|
|
|
Volume (Bblpd) |
1,500 |
|
|
— |
|
|
— |
|
|
— |
|
Price ($ per Gal) |
$ |
0.48 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
(1) July 1 - December
31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PresentationAn updated
presentation has been posted to the Company’s website. The
presentation can be found at www.gulfportenergy.com under the
“Company Information” section on the “Investor Relations” page.
Information on the Company’s website does not constitute a portion
of this press release.
Conference Call Gulfport will
host its second quarter of 2020 earnings conference call
on Wednesday, August 5, 2020 at 9:00 a.m. Central
Time.
Interested parties may listen to the call via
Gulfport’s website at www.gulfportenergy.com or by calling
toll-free at 866-373-3408 or 412-902-1039 for international
callers. A replay of the call will be available for two weeks
at 877-660-6853 or 201-612-7415 for international callers.
The replay passcode is 13707137. The webcast will also be
available for two weeks on the Company’s website and can be
accessed on the Company’s “Investor Relations” page.
About GulfportGulfport Energy
is an independent natural gas and oil company focused on the
exploration and development of natural gas and oil properties in
North America and is one of the largest producers of natural gas in
the contiguous United States. Headquartered in Oklahoma City,
Gulfport holds significant acreage positions in the Utica Shale of
Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in
Oklahoma. In addition, Gulfport holds non-core assets that include
an approximately 22% equity interest in Mammoth Energy Services,
Inc. (NASDAQ: TUSK) and has a position in the Alberta Oil Sands in
Canada through its 25% interest in Grizzly Oil Sands ULC. For more
information, please visit www.gulfportenergy.com.
Forward Looking StatementsThis
press release includes “forward-looking statements” for purposes of
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934.
All statements, other than statements of historical facts, included
in this press release that address activities, events or
developments that Gulfport expects or anticipates will or may occur
in the future, including such things as the expected impact of the
COVID-19 pandemic on our business, our industry and the global
economy, production and financial guidance, future capital
expenditures (including the amount and nature thereof), business
strategy and measures to implement strategy, competitive strength,
goals, expansion and growth of Gulfport’s business and operations,
plans, market conditions, references to future success, reference
to intentions as to future matters and other such matters are
forward-looking statements. These statements are based on certain
assumptions and analyses made by Gulfport in light of its
experience and its perception of historical trends, current
conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances. However,
whether actual results and developments will conform with
Gulfport’s expectations and predictions is subject to a number of
risks and uncertainties, general economic, market, credit or
business conditions that might affect the opportunities (or lack
thereof) that may be presented to and pursued by Gulfport;
Gulfport’s ability to identify, complete and integrate acquisitions
of properties and businesses; Gulfport’s ability to achieve the
anticipated benefits of its strategic initiatives; competitive
actions by other oil and gas companies; changes in laws or
regulations; and other factors, many of which are beyond the
control of Gulfport. Information concerning these and other factors
can be found in the Company’s filings with the Securities and
Exchange Commission ("SEC"), including its Forms 10-K, 10-Q and
8-K. Consequently, all of the forward-looking statements made in
this press release are qualified by these cautionary statements and
there can be no assurances that the actual results or developments
anticipated by Gulfport will be realized, or even if realized, that
they will have the expected consequences to or effects on Gulfport,
its business or operations. Gulfport has no intention, and
disclaims any obligation, to update or revise any forward-looking
statements, whether as a result of new information, future results
or otherwise.
Factors that could cause actual results to
differ materially from expected results include those described
under "Risk Factors" in Item 1A of our annual report on Form 10-K
and any updates to those factors set forth in Gulfport's subsequent
quarterly reports on Form 10-Q or current reports on Form 8-K
(available at http://www.ir.gulfportenergy.com/all-sec-filings).
These risk factors include the expected impact of the COVID-19
pandemic on our business; our ability to comply with the
covenants under our revolving credit facilities and other
indebtedness and the related impact on our ability to continue as a
going concern, the volatility of oil, natural gas and NGL prices;
the limitations our level of indebtedness may have on our financial
flexibility; our inability to access the capital markets on
favorable terms; the availability of cash flows from operations and
other funds to finance our operations, fund our capital needs,
respond to changing conditions and engage in other business
activities that may be in our best interests; downgrades in our
credit rating requiring us to post more collateral under certain
commercial arrangements; significant reduction in our borrowing
base under our revolving credit facility as a result of periodic
borrowing base redeterminations; write-downs of our oil and natural
gas asset carrying values due to low commodity prices; our ability
to replace reserves and sustain production; uncertainties inherent
in estimating quantities of oil, natural gas and NGL reserves and
projecting future rates of production and the amount and timing of
development expenditures; our ability to generate profits or
achieve targeted results in drilling and well operations; failure
to meet our firm commitment delivery obligations under our firm
transportation contracts, which will result in fees and may have a
material adverse effect on our operations; drilling and operating
risks and resulting liabilities; numerous uncertainties in
estimating quantities of bitumen reserves and resources in
connection with our equity investment in Grizzly; leasehold terms
expiring before production can be established; commodity derivative
activities resulting in lower prices realized on oil, natural gas
and NGL sales; the need to secure derivative liabilities and the
inability of counterparties to satisfy their obligations; adverse
developments or losses from pending or future litigation and
regulatory proceedings; operating hazards and uninsured risks may
result in substantial losses and could prevent us from realizing
profits; limited control over properties we do not operate; recent
decisions by the Ohio Supreme Court interpreting the Ohio Dormant
Mineral Act relating to preservation of mineral rights by surface
owners; impacts of potential legislative and regulatory actions
addressing climate change; impacts of potential legislative and
regulatory actions addressing climate change; effects of
environmental protection laws and regulation on our business;
federal and state tax proposals affecting our industry; competition
in the oil and gas exploration and production industry; pipeline
and gathering system capacity constraints and transportation
interruptions; ability to dispose of nonstrategic assets on
attractive terms; a deterioration in general economic, business or
industry conditions; negative public perceptions of our industry;
terrorist activities and cyber-attacks adversely impacting our
operations; an interruption in operations at our headquarters due
to a catastrophic event; failure to remediate material
weakness and maintain effective internal controls; our inability to
increase or maintain our liquidity through capital exchanges, or
other means; change of control limiting our use of net operating
losses to reduce future taxable income.
Investors should note that Gulfport announces
financial information in SEC filings, press releases and public
conference calls. Gulfport may use the Investors section of
its website (www.gulfportenergy.com) to communicate with
investors. It is possible that the financial and other
information posted there could be deemed to be material
information. The information on Gulfport’s website is not
part of this filing.
Investor Contact:Jessica Antle
– Director, Investor
Relationsjantle@gulfportenergy.com405-252-4550
Media ContactReevemarkPaul
Caminiti / Hugh Burns / Nicholas Leasure212-433-4600
GULFPORT ENERGY
CORPORATIONCONSOLIDATED BALANCE
SHEETS
|
June 30, 2020 |
|
December 31, 2019 |
|
(Unaudited) |
|
|
|
(In thousands, except share data) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
2,817 |
|
|
$ |
6,060 |
|
Accounts receivable—oil and natural gas sales |
65,645 |
|
|
121,210 |
|
Accounts receivable—joint interest and other |
19,389 |
|
|
47,975 |
|
Prepaid expenses and other current assets |
10,862 |
|
|
4,431 |
|
Short-term derivative instruments |
53,188 |
|
|
126,201 |
|
Total current assets |
151,901 |
|
|
305,877 |
|
Property and equipment: |
|
|
|
Oil and natural gas properties, full-cost accounting, $1,564,189
and $1,686,666 excluded from amortization in 2020 and 2019,
respectively |
10,730,992 |
|
|
10,595,735 |
|
Other property and equipment |
96,838 |
|
|
96,719 |
|
Accumulated depletion, depreciation, amortization and
impairment |
(8,457,464 |
) |
|
(7,228,660 |
) |
Property and equipment, net |
2,370,366 |
|
|
3,463,794 |
|
Other assets: |
|
|
|
Equity investments |
13,052 |
|
|
32,044 |
|
Long-term derivative instruments |
4,298 |
|
|
563 |
|
Deferred tax asset |
— |
|
|
7,563 |
|
Operating lease assets |
3,640 |
|
|
14,168 |
|
Operating lease assets—related parties |
— |
|
|
43,270 |
|
Other assets |
37,000 |
|
|
15,540 |
|
Total other assets |
57,990 |
|
|
113,148 |
|
Total assets |
$ |
2,580,257 |
|
|
$ |
3,882,819 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ |
315,575 |
|
|
$ |
415,218 |
|
Short-term derivative instruments |
8,540 |
|
|
303 |
|
Current portion of operating lease liabilities |
3,356 |
|
|
13,826 |
|
Current portion of operating lease liabilities—related parties |
— |
|
|
21,220 |
|
Current maturities of long-term debt |
649 |
|
|
631 |
|
Total current liabilities |
328,120 |
|
|
451,198 |
|
Long-term derivative
instruments |
45,615 |
|
|
53,135 |
|
Asset retirement obligation |
61,371 |
|
|
60,355 |
|
Uncertain tax position
liability |
3,209 |
|
|
3,127 |
|
Non-current operating lease
liabilities |
284 |
|
|
342 |
|
Non-current operating lease
liabilities—related parties |
— |
|
|
22,050 |
|
Long-term debt, net of current
maturities |
1,910,318 |
|
|
1,978,020 |
|
Total liabilities |
2,348,917 |
|
|
2,568,227 |
|
Commitments and
contingencies |
|
|
|
Preferred stock, $0.01 par value;
5.0 million shares authorized (30 thousand authorized as redeemable
12% cumulative preferred stock, Series A), and none issued and
outstanding |
— |
|
|
— |
|
Stockholders’ equity: |
|
|
|
Common stock - $0.01 par value, 200.0 million shares authorized,
160.1 million issued and outstanding at June 30, 2020 and
159.7 million at December 31, 2019 |
1,601 |
|
|
1,597 |
|
Paid-in capital |
4,211,062 |
|
|
4,207,554 |
|
Accumulated other comprehensive loss |
(54,991 |
) |
|
(46,833 |
) |
Accumulated deficit |
(3,926,332 |
) |
|
(2,847,726 |
) |
Total stockholders’ equity |
231,340 |
|
|
1,314,592 |
|
Total liabilities and stockholders’ equity |
$ |
2,580,257 |
|
|
$ |
3,882,819 |
|
|
|
|
|
|
|
|
|
GULFPORT ENERGY
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(In thousands, except share data) |
REVENUES: |
|
|
|
|
|
|
|
Natural gas sales |
$ |
86,797 |
|
|
$ |
225,257 |
|
|
$ |
195,344 |
|
|
$ |
501,273 |
|
Oil and condensate sales |
8,390 |
|
|
36,910 |
|
|
31,541 |
|
|
69,392 |
|
Natural gas liquid sales |
10,252 |
|
|
25,687 |
|
|
27,165 |
|
|
57,812 |
|
Net gain on natural gas, oil and NGL derivatives |
26,971 |
|
|
171,140 |
|
|
125,237 |
|
|
151,095 |
|
Total Revenues |
132,410 |
|
|
458,994 |
|
|
379,287 |
|
|
779,572 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
Lease operating expenses |
15,686 |
|
|
22,388 |
|
|
31,672 |
|
|
42,195 |
|
Production taxes |
3,605 |
|
|
8,098 |
|
|
8,404 |
|
|
16,019 |
|
Midstream gathering and processing expenses |
59,974 |
|
|
72,015 |
|
|
117,870 |
|
|
142,297 |
|
Depreciation, depletion and amortization |
64,790 |
|
|
124,951 |
|
|
142,818 |
|
|
243,384 |
|
Impairment of oil and natural gas properties |
532,880 |
|
|
— |
|
|
1,086,225 |
|
|
— |
|
General and administrative expenses |
10,470 |
|
|
11,727 |
|
|
26,639 |
|
|
21,784 |
|
Accretion expense |
755 |
|
|
1,359 |
|
|
1,496 |
|
|
2,426 |
|
Total Operating Expenses |
688,160 |
|
|
240,538 |
|
|
1,415,124 |
|
|
468,105 |
|
(LOSS) INCOME FROM
OPERATIONS |
(555,750 |
) |
|
218,456 |
|
|
(1,035,837 |
) |
|
311,467 |
|
OTHER EXPENSE
(INCOME): |
|
|
|
|
|
|
|
Interest expense |
32,366 |
|
|
36,418 |
|
|
65,356 |
|
|
72,039 |
|
Interest income |
(78 |
) |
|
(159 |
) |
|
(230 |
) |
|
(311 |
) |
Gain on debt extinguishment |
(34,257 |
) |
|
— |
|
|
(49,579 |
) |
|
— |
|
Loss from equity method investments, net |
45 |
|
|
125,582 |
|
|
10,834 |
|
|
121,309 |
|
Other expense |
7,242 |
|
|
990 |
|
|
9,098 |
|
|
563 |
|
Total Other Expense |
5,318 |
|
|
162,831 |
|
|
35,479 |
|
|
193,600 |
|
(LOSS) INCOME BEFORE
INCOME TAXES |
(561,068 |
) |
|
55,625 |
|
|
(1,071,316 |
) |
|
117,867 |
|
Income Tax Expense (Benefit) |
— |
|
|
(179,331 |
) |
|
7,290 |
|
|
(179,331 |
) |
NET (LOSS)
INCOME |
$ |
(561,068 |
) |
|
$ |
234,956 |
|
|
$ |
(1,078,606 |
) |
|
$ |
297,198 |
|
NET (LOSS) INCOME PER
COMMON SHARE: |
|
|
|
|
|
|
|
Basic |
$ |
(3.51 |
) |
|
$ |
1.47 |
|
|
$ |
(6.75 |
) |
|
$ |
1.85 |
|
Diluted |
$ |
(3.51 |
) |
|
$ |
1.47 |
|
|
$ |
(6.75 |
) |
|
$ |
1.84 |
|
Weighted average common shares
outstanding—Basic |
159,933,739 |
|
|
159,324,909 |
|
|
159,846,981 |
|
|
161,064,787 |
|
Weighted average common shares
outstanding—Diluted |
159,933,739 |
|
|
159,506,826 |
|
|
159,846,981 |
|
|
161,590,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GULFPORT ENERGY
CORPORATIONCONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)
|
Six months ended June 30, |
|
2020 |
|
2019 |
|
(In thousands) |
Cash flows from operating
activities: |
|
|
|
Net (loss) income |
$ |
(1,078,606 |
) |
|
$ |
297,198 |
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
Depletion, depreciation and amortization |
142,818 |
|
|
243,384 |
|
Impairment of oil and natural gas properties |
1,086,225 |
|
|
— |
|
Loss (income) from equity investments |
10,834 |
|
|
121,449 |
|
Gain on debt extinguishment |
(49,579 |
) |
|
— |
|
Net gain on derivative instruments |
(125,237 |
) |
|
(151,095 |
) |
Net cash receipts (payments) on settled derivative instruments |
195,232 |
|
|
(1,494 |
) |
Deferred income tax expense |
7,290 |
|
|
(179,331 |
) |
Other, net |
9,844 |
|
|
11,341 |
|
Changes in operating assets and liabilities: |
|
|
|
Decrease in accounts receivable—oil and natural gas sales |
55,565 |
|
|
78,525 |
|
Decrease (increase) in accounts receivable—joint interest and
other |
29,159 |
|
|
(24,148 |
) |
(Decrease) increase in accounts payable and accrued
liabilities |
(30,620 |
) |
|
3,220 |
|
Other, net |
(5,703 |
) |
|
720 |
|
Net cash provided by operating
activities |
247,222 |
|
|
399,769 |
|
Cash flows from investing
activities: |
|
|
|
Additions to oil and natural gas properties |
(274,851 |
) |
|
(508,315 |
) |
Proceeds from sale of oil and natural gas properties |
45,185 |
|
|
745 |
|
Additions to other property and equipment |
(575 |
) |
|
(4,298 |
) |
Proceeds from sale of other property and equipment |
151 |
|
|
130 |
|
Contributions to equity method investments |
— |
|
|
(432 |
) |
Distributions from equity method investments |
— |
|
|
1,945 |
|
Net cash used in investing
activities |
(230,090 |
) |
|
(510,225 |
) |
Cash flows from financing
activities: |
|
|
|
Principal payments on borrowings |
(323,322 |
) |
|
(345,350 |
) |
Borrowings on line of credit |
326,000 |
|
|
455,000 |
|
Repurchases of senior notes |
(22,827 |
) |
|
— |
|
Payments for repurchases of stock under approved stock repurchase
program |
— |
|
|
(30,000 |
) |
Other, net |
(226 |
) |
|
(714 |
) |
Net cash (used in) provided by
financing activities |
(20,375 |
) |
|
78,936 |
|
Net decrease in cash, cash
equivalents and restricted cash |
(3,243 |
) |
|
(31,520 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
6,060 |
|
|
52,297 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
2,817 |
|
|
$ |
20,777 |
|
Supplemental disclosure
of cash flow information: |
|
|
|
Interest payments |
$ |
60,523 |
|
|
$ |
67,472 |
|
Income tax receipts |
$ |
— |
|
|
$ |
(1,794 |
) |
Supplemental disclosure
of non-cash transactions: |
|
|
|
Capitalized stock-based compensation |
$ |
1,891 |
|
|
$ |
2,252 |
|
Asset retirement obligation capitalized |
$ |
1,553 |
|
|
$ |
6,230 |
|
Asset retirement obligation removed due to divestiture |
$ |
(2,033 |
) |
|
$ |
— |
|
Interest capitalized |
$ |
710 |
|
|
$ |
1,771 |
|
Fair value of contingent consideration asset on date of
divestiture |
$ |
23,090 |
|
|
$ |
— |
|
Foreign currency translation (loss) gain on equity method
investments |
$ |
(8,158 |
) |
|
$ |
7,411 |
|
|
|
|
|
|
|
|
|
Explanation and Reconciliation of
Non-GAAP Financial MeasuresRecurring general and
administrative expense is a non-GAAP financial measure equal to
general and administrative expense presented on the income
statement, plus capitalized G&A and less any
non-recurring general and administrative expense. EBITDA is a
non-GAAP financial measure equal to net (loss) income, the most
directly comparable GAAP financial measure, plus interest expense,
income tax (benefit) expense, accretion expense, depreciation,
depletion and amortization and impairment of oil and gas
properties. Adjusted EBITDA is a non-GAAP financial measure equal
to EBITDA less non-cash derivative loss (gain), rig terminations
fees, gain on debt extinguishment, non-recurring general and
administrative expense, non-cash stock-based compensation expense
and (income) loss from equity method investments. Cash flow from
operating activities before changes in operating assets and
liabilities is a non-GAAP financial measure equal to cash provided
by operating activity before changes in operating assets and
liabilities and inclusive of capitalized expenses incurred during
the given period. Free cash flow is a non-GAAP measure defined as
cash flow from operating activities before changes in operating
assets and liabilities (as defined above) less capital expenditures
incurred. Adjusted net income is a non-GAAP financial measure equal
to pre-tax net (loss) income less non-cash derivative loss (gain),
impairment of oil and gas properties, rig terminations fees, gain
on debt extinguishment, non-recurring general and administrative
expense, non-cash stock-based compensation expense and (income)
loss from equity method investments. The Company has presented
recurring general and administrative expense, EBITDA, adjusted
EBITDA, adjusted net income, cash flow from operating activities
before changes in operating assets and liabilities and free cash
flow because it uses these measures as an integral part of its
internal reporting to evaluate its performance and the performance
of its senior management. These measures are considered important
indicators of the operational strength of the Company’s business
and eliminate the uneven effect of considerable amounts of non-cash
depletion, depreciation of tangible assets and amortization of
certain intangible assets. A limitation of these measures, however,
is that they do not reflect the periodic costs of certain
capitalized tangible and intangible assets used in generating
revenues in the Company’s business. Management evaluates the costs
of such tangible and intangible assets and the impact of related
impairments through other financial measures, such as capital
expenditures, investment spending and return on capital. Therefore,
the Company believes that these measures provide useful information
to its investors regarding its performance and overall results of
operations. recurring general and administrative expense, EBITDA,
adjusted EBITDA, adjusted net income, cash flow from operating
activities before changes in operating assets and liabilities and
free cash flow are not intended to be performance measures that
should be regarded as an alternative to, or more meaningful than,
either net income as an indicator of operating performance or to
cash flows from operating activities as a measure of liquidity. In
addition, recurring general and administrative expense, EBITDA,
adjusted EBITDA, adjusted net income and cash flow from operating
activities before changes in operating assets and liabilities are
not intended to represent funds available for reinvestment or other
discretionary uses, and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance
with GAAP. The recurring general and administrative expense,
EBITDA, adjusted EBITDA, adjusted net income, cash flow from
operating activities before changes in operating assets and
liabilities and free cash flow presented in this press release may
not be comparable to similarly titled measures presented by other
companies, and may not be identical to corresponding measures used
in the Company’s various agreements.
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF GENERAL AND ADMINISTRATIVE
EXPENSES |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
2020 |
|
2019 |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
Cash |
Non-Cash |
Total |
|
Cash |
Non-Cash |
Total |
General and administrative expense (GAAP) |
$ |
9,272 |
|
$ |
1,198 |
|
$ |
10,470 |
|
|
$ |
10,019 |
|
$ |
1,708 |
|
$ |
11,727 |
|
Capitalized general and
administrative expense |
7,205 |
|
957 |
|
8,162 |
|
|
7,696 |
|
1,138 |
|
8,834 |
|
Non-recurring general and
administrative expense(1) |
(3,818 |
) |
— |
|
(3,818 |
) |
|
(676 |
) |
— |
|
(676 |
) |
Recurring general and
administrative before capitalization |
$ |
12,659 |
|
$ |
2,155 |
|
$ |
14,814 |
|
|
$ |
17,039 |
|
$ |
2,846 |
|
$ |
19,885 |
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
2020 |
|
2019 |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
Cash |
Non-Cash |
Total |
|
Cash |
Non-Cash |
Total |
General and administrative
expense (GAAP) |
$ |
24,271 |
|
$ |
2,368 |
|
$ |
26,639 |
|
|
$ |
18,405 |
|
$ |
3,379 |
|
$ |
21,784 |
|
Capitalized general and
administrative expense |
11,701 |
|
1,891 |
|
13,592 |
|
|
14,277 |
|
2,252 |
|
16,529 |
|
Non-recurring general and
administrative expense(1) |
(7,723 |
) |
— |
|
(7,723 |
) |
|
(1,214 |
) |
— |
|
(1,214 |
) |
Recurring general and
administrative before capitalization |
$ |
28,249 |
|
$ |
4,259 |
|
$ |
32,508 |
|
|
$ |
31,468 |
|
$ |
5,631 |
|
$ |
37,099 |
|
|
|
|
|
|
|
|
|
(1) Includes
non-recurring general and administrative expenses related to
certain legal, financial advisory and consulting charges. |
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF EBITDA |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
Net (loss) income (GAAP) |
$ |
(561,068 |
) |
|
$ |
234,956 |
|
|
$ |
(1,078,606 |
) |
|
$ |
297,198 |
|
Interest expense |
32,366 |
|
|
36,418 |
|
|
65,356 |
|
|
72,039 |
|
Income tax expense |
— |
|
|
(179,331 |
) |
|
7,290 |
|
|
(179,331 |
) |
Accretion expense |
755 |
|
|
1,359 |
|
|
1,496 |
|
|
2,426 |
|
Depreciation, depletion and
amortization |
64,790 |
|
|
124,951 |
|
|
142,818 |
|
|
243,384 |
|
Impairment of oil and gas
properties |
532,880 |
|
|
— |
|
|
1,086,225 |
|
|
— |
|
EBITDA |
$ |
69,723 |
|
|
$ |
218,353 |
|
|
$ |
224,579 |
|
|
$ |
435,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF ADJUSTED EBITDA |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
EBITDA |
$ |
69,723 |
|
|
$ |
218,353 |
|
|
$ |
224,579 |
|
|
$ |
435,716 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Non-cash derivative loss
(gain) |
97,529 |
|
|
(147,798 |
) |
|
68,615 |
|
|
(152,589 |
) |
Non-cash loss on changes in
fair value of contingent payments |
3,190 |
|
|
— |
|
|
4,361 |
|
|
— |
|
Rig termination fees |
3,762 |
|
|
— |
|
|
5,411 |
|
|
— |
|
Gain on debt
extinguishment |
(34,257 |
) |
|
— |
|
|
(49,579 |
) |
|
— |
|
Non-recurring general and
administrative expense |
3,818 |
|
|
676 |
|
|
7,723 |
|
|
1,214 |
|
Stock-based compensation
expense |
1,198 |
|
|
1,708 |
|
|
2,368 |
|
|
3,379 |
|
Loss from equity method
investments |
45 |
|
|
125,582 |
|
|
10,834 |
|
|
121,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
145,008 |
|
|
$ |
198,521 |
|
|
$ |
274,312 |
|
|
$ |
409,029 |
|
|
|
|
|
|
|
|
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF CASH FLOW |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
Cash provided by operating activity (GAAP) |
$ |
116,384 |
|
|
$ |
160,004 |
|
|
$ |
247,222 |
|
|
$ |
399,769 |
|
Adjustments: |
|
|
|
|
|
|
|
Changes in operating assets
and liabilities |
(9,845) |
|
|
4,188 |
|
|
(48,401) |
|
|
(58,317) |
|
Capitalized expenses
incurred(1) |
(8,685) |
|
|
(9,839) |
|
|
(14,302) |
|
|
(18,300) |
|
Operating cash flow |
$ |
97,854 |
|
|
$ |
154,353 |
|
|
$ |
184,519 |
|
|
$ |
323,152 |
|
Capital expenditures
incurred(2) |
(53,988) |
|
|
(184,231) |
|
|
(189,293) |
|
|
(459,178) |
|
Free cash
flow |
$ |
43,866 |
|
|
$ |
(29,878) |
|
|
$ |
(4,774) |
|
|
$ |
(136,026) |
|
|
|
|
|
|
|
|
|
(1) Includes capitalized general and
administrative expense incurred and capitalized interest expenses
incurred |
(2) Incurred
capital expenditures and cash capital expenditures may vary from
period to period due to the cash payment cycle |
|
GULFPORT ENERGY CORPORATION |
RECONCILIATION OF ADJUSTED NET INCOME |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(In thousands, except share data) |
|
(In thousands, except share data) |
|
|
|
|
|
|
|
|
(Loss) income before income taxes (GAAP) |
$ |
(561,068) |
|
|
$ |
55,625 |
|
|
$ |
(1,071,316) |
|
|
$ |
117,867 |
|
Adjustments: |
|
|
|
|
|
|
|
Non-cash derivative loss
(gain) |
97,529 |
|
|
(147,798) |
|
|
68,615 |
|
|
(152,589) |
|
Non-cash loss on changes in
fair value of contingent payments |
3,190 |
|
|
— |
|
|
4,361 |
|
|
— |
|
Impairment of oil and gas
properties |
532,880 |
|
|
— |
|
|
1,086,225 |
|
|
— |
|
Rig termination fees |
3,762 |
|
|
— |
|
|
5,411 |
|
|
— |
|
Gain on debt
extinguishment |
(34,257) |
|
|
— |
|
|
(49,579) |
|
|
— |
|
Non-recurring general and
administrative expense |
3,818 |
|
|
676 |
|
|
7,723 |
|
|
1,214 |
|
Stock-based compensation
expense |
1,198 |
|
|
1,708 |
|
|
2,368 |
|
|
3,379 |
|
Loss from equity method
investments |
45 |
|
|
125,582 |
|
|
10,834 |
|
|
121,309 |
|
Pre-tax net income excluding
adjustments |
$ |
47,097 |
|
|
$ |
35,793 |
|
|
$ |
64,642 |
|
|
$ |
91,180 |
|
|
|
|
|
|
|
|
|
Adjusted net
income |
$ |
47,097 |
|
|
$ |
35,793 |
|
|
$ |
64,642 |
|
|
$ |
91,180 |
|
|
|
|
|
|
|
|
|
Adjusted net income
per common share: |
|
|
|
|
|
|
|
Basic |
$ |
0.29 |
|
|
$ |
0.22 |
|
|
$ |
0.40 |
|
|
$ |
0.57 |
|
Diluted |
$ |
0.29 |
|
|
$ |
0.22 |
|
|
$ |
0.40 |
|
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
Basic weighted average shares
outstanding |
159,933,739 |
|
|
159,324,909 |
|
|
159,846,981 |
|
|
161,064,787 |
|
Diluted weighted average
shares outstanding |
161,215,512 |
|
|
159,596,826 |
|
|
161,457,553 |
|
|
161,590,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulfport Energy (NASDAQ:GPOR)
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From Sep 2024 to Oct 2024
Gulfport Energy (NASDAQ:GPOR)
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From Oct 2023 to Oct 2024