UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 28, 2022, Gulfport Energy Corporation (“Gulfport”) issued a press release reporting its financial and operational results for the fourth quarter and full year ended December 31, 2021 and providing its 2022 operational and financial guidance. A copy of the press release and supplemental financial information are attached as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K.
Item 7.01. Regulation FD Disclosure.
Also on February 28, 2022, Gulfport posted an updated investor presentation on its website. The presentation may be found on Gulfport’s website at http://www.gulfportenergy.com by selecting “Investors,” “Company Information” and then “Presentations.”
The information in the press release and updated investor presentation is being furnished, not filed, pursuant to Item 2.02 and Item 7.01. Accordingly, the information in the press release and updated investor presentation will not be incorporated by reference into any registration statement filed by Gulfport under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Number | Exhibit | |
99.1 | Press release dated February 28, 2022 entitled “Gulfport Energy Reports Fourth Quarter and Full Year 2021 Financial and Operating Results and Provides 2022 Operational and Financial Guidance.” | |
99.2 | Supplemental Financial Information | |
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
GULFPORT ENERGY CORPORATION | ||
Date: February 28, 2022 | By: | /s/ William J. Buese |
William J. Buese | ||
Chief Financial Officer |
2
Exhibit 99.1
Gulfport Energy Reports Fourth Quarter and Full Year 2021 Financial and Operating Results and Provides 2022 Operational and Financial Guidance
OKLAHOMA CITY (February 28, 2022) Gulfport Energy Corporation (NYSE: GPOR) (“Gulfport” or the “Company”) today reported financial and operating results for the three and twelve months ended December 31, 2021 and provided its 2022 development plan and financial guidance.
Fourth Quarter 2021 Highlights
● | Delivered total net production of 1,068.9 MMcfe per day | |
● | Reported $558.1 million of net income and $224.9 million of adjusted EBITDA(1) | |
● | Generated $128.3 million of net cash provided by operating activities and $133.9 million of free cash flow(1) | |
● | Amended credit facility increasing liquidity by more than $160 million | |
● | Authorized previously announced stock repurchase program to acquire up to $100 million of outstanding common stock |
Full Year 2021 Highlights(2)
● | Delivered total net production 2% above and capital expenditures 2% below the midpoint of original 2021 guidance | |
● | Reported $138.2 million of net income and $716.8 million of adjusted EBITDA(1) | |
● | Reduced total per unit expense(3) by approximately 20% when compared to 2020 | |
● | Generated $465.1 million of net cash provided by operating activities and $361.0 million of free cash flow(1) | |
● | Achieved leverage target of below 1.0x at year end 2021 | |
● | Reported total proved reserves of 3.9 Tcfe and total discounted future net cash flows of $4.1 billion |
Full Year 2022 Outlook & Overview
● | Intend to invest approximately $360 million(4) of capital, supporting a more continuous drilling program in the Utica, resulting in more than 5% production growth in 2023 | |
● | Expect to deliver full year net production of approximately 1.0 Bcfe per day(4) | |
● | Plan to generate approximately $335 million of free cash flow(1); free cash flow yield(1,5) of approximately 24% at current strip prices |
“During 2021, we significantly improved our balance sheet and cost structure through the restructuring process and emerged with a continuous improvement mindset, focused on disciplined capital allocation and free cash flow generation. The team executed extremely well, delivering total 2021 net production at the high end of the guidance range with total capital expenditures at the low end of the range. We also successfully achieved numerous financial objectives, including refinancing our credit facility and reaching our target leverage ratio ahead of schedule,” commented Tim Cutt, CEO of Gulfport.
“Our 2022 development program is centered around more consistent drilling operations in the Utica, allowing for increased operational efficiencies and opportunities for incremental cost reductions. We anticipate this level of activity will result in production growth of more than 5% in 2023 and modest growth through 2025. We will continue to prioritize the return of capital to shareholders and, now that we have reached our target leverage ratio, look forward to beginning to execute our previously announced stock repurchase program, which we believe holds significant value at recent trading levels.”
A company presentation to accompany the Gulfport earnings conference call can be accessed by clicking here.
1. | A non-GAAP financial measure. Reconciliations of these non-GAAP measures and other disclosures are provided with the supplemental financial tables available on our website at www.gulfportenergy.com. | |
2. | 2021 full year reflects the combination of Successor and Predecessor company results, unless otherwise noted. The Company refers to the post-emergence reorganized company as the Successor for periods subsequent to May 18, 2021, and to the pre-emergence company as the Predecessor for periods on or prior to May 17, 2021. | |
3. | Includes lease operating expense, midstream transportation, gathering and processing expense, taxes other than income, recurring general and administrative expense and interest. | |
4. | Assumes midpoint of 2022 guidance. | |
5. | Free cash flow yield calculated using market capitalization as of February 25, 2022. |
Operational Update
The table below summarizes Gulfport’s operated drilling and completion activity for the full year of 2021:
Year Ended December 31, 2021 | ||||||||||||
Gross | Net | Lateral Length | ||||||||||
Spud | ||||||||||||
Utica(1) | 20 | 18.9 | 14,750 | |||||||||
SCOOP | 9 | 7.7 | 9,900 | |||||||||
Drilled | ||||||||||||
Utica | 11 | 10.6 | 15,350 | |||||||||
SCOOP | 5 | 4.9 | 9,750 | |||||||||
Completed | ||||||||||||
Utica | 17 | 17.0 | 12,500 | |||||||||
SCOOP | 11 | 9.4 | 9,500 | |||||||||
Turned-to-Sales | ||||||||||||
Utica | 17 | 17.0 | 12,500 | |||||||||
SCOOP | 11 | 9.4 | 9,500 |
(1) | Includes eight gross wells spud with a top-hole rig. |
2
Gulfport’s net daily production for the full year of 2021 averaged 1,003.6 MMcfe per day, primarily consisting of 772.1 MMcfe per day in the Utica and 231.1 MMcfe per day in the SCOOP. For the full year of 2021, Gulfport’s net daily production mix was comprised of approximately 91% natural gas, 6% natural gas liquids (“NGL”) and 3% oil.
Successor | Predecessor | Non-GAAP Combined | Predecessor | |||||||||||||
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
Production | ||||||||||||||||
Natural gas (Mcf/day) | 977,411 | 988,117 | 912,112 | 942,619 | ||||||||||||
Oil and condensate (Bbl/day) | 4,438 | 4,452 | 4,655 | 4,927 | ||||||||||||
NGL (Bbl/day) | 10,808 | 10,171 | 10,601 | 10,830 | ||||||||||||
Total (Mcfe/day) | 1,068,888 | 1,075,861 | 1,003,641 | 1,037,160 | ||||||||||||
Average Prices | ||||||||||||||||
Natural Gas: | ||||||||||||||||
Average price without the impact of derivatives ($/Mcf) | $ | 5.48 | $ | 2.36 | $ | 3.76 | $ | 1.95 | ||||||||
Impact from settled derivatives ($/Mcf) | (2.35 | ) | (0.70 | ) | (0.91 | ) | 0.33 | |||||||||
Average price, including settled derivatives ($/Mcf) | $ | 3.13 | $ | 1.66 | $ | 2.85 | $ | 2.28 | ||||||||
Oil: | ||||||||||||||||
Average price without the impact of derivatives ($/Bbl) | $ | 74.71 | $ | 37.44 | $ | 65.01 | $ | 34.88 | ||||||||
Impact from settled derivatives ($/Bbl) | (13.18 | ) | (4.84 | ) | (5.72 | ) | 25.76 | |||||||||
Average price, including settled derivatives ($/Bbl) | $ | 61.53 | $ | 32.60 | $ | 59.29 | $ | 60.64 | ||||||||
NGL: | ||||||||||||||||
Average price without the impact of derivatives ($/Bbl) | $ | 44.18 | $ | 22.25 | $ | 36.68 | $ | 16.86 | ||||||||
Impact from settled derivatives ($/Bbl) | (7.02 | ) | (0.54 | ) | (3.35 | ) | (0.04 | ) | ||||||||
Average price, including settled derivatives ($/Bbl) | $ | 37.16 | $ | 21.71 | $ | 33.33 | $ | 16.82 | ||||||||
Total: | ||||||||||||||||
Average price without the impact of derivatives ($/Mcfe) | $ | 5.77 | $ | 2.53 | $ | 4.10 | $ | 2.11 | ||||||||
Impact from settled derivatives ($/Mcfe) | (2.27 | ) | (0.67 | ) | (0.89 | ) | 0.42 | |||||||||
Average price, including settled derivatives ($/Mcfe) | $ | 3.50 | $ | 1.86 | $ | 3.21 | $ | 2.53 | ||||||||
Selected operating metrics | ||||||||||||||||
Lease operating expenses ($/Mcfe) | $ | 0.14 | $ | 0.13 | $ | 0.14 | $ | 0.14 | ||||||||
Taxes other than income ($/Mcfe) | $ | 0.14 | $ | 0.10 | $ | 0.12 | $ | 0.08 | ||||||||
Transportation, gathering, processing and compression expense ($/Mcfe) | $ | 0.88 | $ | 1.23 | $ | 1.02 | $ | 1.20 | ||||||||
Recurring cash general and administrative expenses ($/Mcfe) (non-GAAP) | $ | 0.09 | $ | 0.12 | $ | 0.11 | $ | 0.14 | ||||||||
Interest expenses ($/Mcfe) | $ | 0.16 | $ | 0.21 | $ | 0.12 | $ | 0.32 |
Capital Investment
Capital investment was $292.9 million (on an incurred basis) for the full year of 2021, of which $275.6 million related to drilling and completion (“D&C”) activity and $17.3 million related to leasehold and land investment.
Financial Position and Liquidity
As of December 31, 2021, Gulfport had approximately $3.3 million of cash and cash equivalents, $164.0 million of borrowings under its revolving credit facility, $122.1 million of letters of credit outstanding and $550 million of outstanding 2026 senior notes.
Gulfport’s liquidity at December 31, 2021, totaled approximately $417.2 million, comprised of the $3.3 million of cash and cash equivalents and approximately $413.9 million of available borrowing capacity under its new revolving credit facility.
As of February 25, 2022, Gulfport had $7.1 million of cash and cash equivalents, zero borrowings under its revolving credit facility, $109.8 million of letters of credit outstanding and $550 million of outstanding 2026 Notes.
During 2021, the company paid dividends on its Preferred Stock, which included 3,071 shares of New Preferred Stock paid in kind, approximately $55 thousand of cash-in-lieu of fractional shares and $1.5 million of cash dividends.
3
Stock Repurchase Program
On November 2, 2021, Gulfport announced the authorization by its Board of Directors to repurchase up to $100 million of its outstanding shares of common stock through December 31, 2022. Purchases under the repurchase program may be made from time to time in open market or privately negotiated transactions, and will be subject to available liquidity, market conditions, credit agreement restrictions, applicable legal requirements, contractual obligations and other factors. The repurchase program does not require the Company to acquire any specific number of shares. The Company intends to purchase shares under the repurchase program opportunistically with available funds while maintaining sufficient liquidity to fund its capital development program. The repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors at any time. The Company did not repurchase any common stock during the year ended December 31, 2021.
2022 Guidance Update
Gulfport released operational guidance and outlook for the full year 2022, including full year expense estimates and projections for production and capital expenditures. Gulfport’s 2022 guidance assumes commodity strip prices as of February 15, 2022, adjusted for applicable commodity and location differentials, and no property acquisitions or divestitures.
Year Ending | ||||||||
December 31, 2022 | ||||||||
Low | High | |||||||
Production | ||||||||
Average daily gas equivalent (MMcfepd) | 975 | 1,025 | ||||||
% Gas | ~90% | |||||||
Realizations (before hedges) | ||||||||
Natural gas (differential to NYMEX settled price) ($/Mcf) | $ | (0.15 | ) | $ | (0.25 | ) | ||
NGL (% of WTI) | 45 | % | 55 | % | ||||
Oil (differential to NYMEX WTI) ($/Bbl) | $ | (3.00 | ) | $ | (4.00 | ) | ||
Operating costs | ||||||||
Lease operating expense ($/Mcfe) | $ | 0.16 | $ | 0.18 | ||||
Taxes other than income ($/Mcfe) | $ | 0.11 | $ | 0.13 | ||||
Transportation, gathering, processing and compression(1) ($/Mcfe) | $ | 0.92 | $ | 0.96 | ||||
Recurring cash general and administrative(2,3) (in millions) | $ | 42 | $ | 44 |
(1) | Assumes rejection of Rover firm transportation agreement. |
(2) | Recurring cash G&A includes capitalization. It excludes non-cash stock compensation and expenses related to certain legal and restructuring charges. |
Total | ||||||||
Capital expenditures (incurred) | (in millions) | |||||||
D&C | $ | 320 | $ | 360 | ||||
Leasehold and land | $20 | |||||||
Total | $ | 340 | $ | 380 | ||||
Free cash flow(3) | $335 |
(3) | This is a non-GAAP measure. Reconciliations of these non-GAAP measures and other disclosures are provided with the supplemental financial tables available on our website at www.gulfportenergy.com. |
4
Derivatives
Gulfport enters into commodity derivative contracts on a portion of its expected future production volumes to mitigate the Company’s exposure to commodity price fluctuations. For details, please refer to the “Derivatives” section provided with the supplemental financial tables available on our website at ir.gulfportenergy.com.
Estimated Proved Reserves
Gulfport reported year end 2021 total proved reserves of 3.9 Tcfe, consisting of 3.5 Tcf of natural gas, 16.2 MMBbls of oil and 53.8 MMBbls of natural gas liquids. Gulfport’s year end 2021 total proved reserves increased approximately 51% when compared to its 2020 total proved reserves. The standardized measure of discounted future net cash flows of Gulfport’s total proved reserves was $4.1 billion and the present value, discounted at 10% (referred to as “PV-10”), was $4.3 billion at December 31, 2021, an increase of $3.6 billion and $3.8 billion, respectively, when compared to its 2020 results.
The table below provides information regarding the components driving the 2021 net proved reserve adjustments:
Total (Bcfe) | ||||
Proved Reserves, December 31, 2020 (Predecessor) | 2,588 | |||
Sales of oil and natural gas reserves in place | — | |||
Extensions and discoveries | 695 | |||
Revisions of prior reserve estimates | 982 | |||
Current production | (366 | ) | ||
Proved Reserves, December 31, 2021 (Successor) | 3,898 | |||
Total may not sum due to rounding. |
Proved developed reserves totaled approximately 2,165 Bcfe as of December 31, 2021 or approximately 56% of Gulfport’s proved reserves. Proved undeveloped reserves totaled approximately 1,733 Bcfe as of December 31, 2021.
5
The table below summarizes the Company’s 2021 net proved reserves:
December 31, 2021 | ||||||||||||||||
Oil | Natural | NGL (MMBbl) | Total (Bcfe) | |||||||||||||
Utica | ||||||||||||||||
Proved developed | 2 | 1,482 | 9 | 1,550 | ||||||||||||
Proved undeveloped | 4 | 1,073 | 4 | 1,123 | ||||||||||||
Total proved | 6 | 2,555 | 13 | 2,673 | ||||||||||||
SCOOP | ||||||||||||||||
Proved developed | 6 | 445 | 22 | 613 | ||||||||||||
Proved undeveloped | 4 | 477 | 18 | 610 | ||||||||||||
Total proved | 10 | 922 | 40 | 1,223 | ||||||||||||
Total | ||||||||||||||||
Proved developed(1) | 8 | 1,928 | 31 | 2,165 | ||||||||||||
Proved undeveloped | 8 | 1,550 | 22 | 1,733 | ||||||||||||
Total proved | 16 | 3,478 | 54 | 3,898 | ||||||||||||
Totals may not sum or recalculate due to rounding. |
The following table reconciles the standardized measure of future net cash flows to the PV-10 value of Gulfport’s proved reserves:
Proved Developed | Proved Undeveloped | Total Proved | ||||||||||
($ in millions) | ||||||||||||
Estimated future net revenue(1) | $ | 4,649 | $ | 3,585 | $ | 8,234 | ||||||
Present value of estimated future net revenue (PV-10)(1) | $ | 2,655 | $ | 1,660 | $ | 4,316 | ||||||
Standardized measure(1) | $ | 4,138 |
(1) | Estimated future net revenue represents the estimated future revenue to be generated from the production of proved reserves, net of estimated production and future development costs, using prices and costs under existing economic conditions as of December 31, 2021, and assuming commodity prices as set forth below. For the purpose of determining prices used in our reserve reports, we used the unweighted arithmetic average of the prices on the first day of each month within the 12-month period ended December 31, 2021. The prices used in our PV-10 measure were $66.55 per barrel and $3.60 per MMBtu, before basis differential adjustments. These prices should not be interpreted as a prediction of future prices, nor do they reflect the value of our commodity derivative instruments in place as of December 31, 2021. The amounts shown do not give effect to non-property-related expenses, such as corporate general and administrative expenses and debt service, or to depreciation, depletion and amortization. The present value of estimated future net revenue typically differs from the standardized measure because the former does not include the effects of estimated future income tax expense of $178 million as of December 31, 2021.
Management uses PV-10, which is calculated without deducting estimated future income tax expenses, as a measure of the value of the Company’s current proved reserves and to compare relative values among peer companies. We also understand that securities analysts and rating agencies use this measure in similar ways. While estimated future net revenue and the present value thereof are based on prices, costs and discount factors which may be consistent from company to company, the standardized measure of discounted future net cash flows is dependent on the unique tax situation of each individual company. PV-10 should not be considered in isolation or as a substitute for the standardized measure of discounted future net cash flows or any other measure of a company’s financial or operating performance presented in accordance with GAAP. A reconciliation of the standardized measure of discounted future net cash flows to PV-10 is presented above. Neither PV-10 nor the standardized measure of discounted future net cash flows purport to represent the fair value of our proved oil and gas reserves. |
6
Fourth Quarter and Full Year 2021 Conference Call
Gulfport will host a teleconference and webcast to discuss its fourth quarter and full year 2021 results beginning at 9:00 a.m. ET (8:00 a.m. CT) on Tuesday, March 1, 2022.
The conference call can be heard live through a link on the Gulfport website, www.gulfportenergy.com. In addition, you may participate in the conference call by dialing 866-373-3408 domestically or 412-902-1039 internationally. A replay of the conference call will be available on the Gulfport website and a telephone audio replay will be available from March 1, 2022 to March 15, 2022, by calling 877-660-6853 domestically or 201-612-7415 internationally and then entering the replay passcode 13726914.
Financial Statements and Guidance Documents
Fourth quarter and full year 2021 earnings results and supplemental information regarding quarterly data such as production volumes, pricing, financial statements, and non-GAAP reconciliations are available on our website at ir.gulfportenergy.com.
Non-GAAP Disclosures
This news release includes non-GAAP financial measures. Such non-GAAP measures should be not considered as an alternative to GAAP measures. Reconciliations of these non-GAAP measures and other disclosures are provided with the supplemental financial tables available on our website at ir.gulfportenergy.com.
About Gulfport
Gulfport is an independent natural gas-weighted exploration and production company focused on the exploration, acquisition and production of natural gas, crude oil and NGL in the United States with primary focus in the Appalachia and Anadarko basins. Our principal properties are located in Eastern Ohio targeting the Utica formation and in central Oklahoma targeting the SCOOP Woodford and SCOOP Springer formations.
Forward Looking Statements
This 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. Forward-looking statements are statements other than statements of historical fact. They include statements regarding Gulfport’s current expectations, management’s outlook guidance or forecasts of future events, projected cash flow and liquidity, share repurchases, its ability to enhance cash flow and financial flexibility, future production and commodity mix, plans and objectives for future operations, the ability of our employees, portfolio strength and operational leadership to create long-term value, the rejection of certain midstream contracts and the assumptions on which such statements are based. Gulfport believes the expectations and forecasts reflected in the forward-looking statements are reasonable, Gulfport can give no assurance they will prove to have been correct. They can be affected by inaccurate or changed assumptions or by known or unknown risks and uncertainties. Important risks, assumptions and other important factors that could cause future results to differ materially from those expressed in the forward-looking statements are described under “Risk Factors” in Item 1A of Gulfport’s annual report on Form 10-K for the year ended December 31, 2021 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 https://www.ir.gulfportenergy.com/all-sec-filings). Gulfport undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.
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 Relations
jantle@gulfportenergy.com
405-252-4550
Media Contact
Reevemark
Hugh Burns / Paul Caminiti / Nicholas Leasure
212-433-4600
7
Exhibit 99.2
Year ended December 31, 2021
Supplemental Information of Gulfport Energy
Page 1
Production Volumes by Asset Area : Quarter ended, December 31, 2021
Production Volumes
Successor | Predecessor | |||||||
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||
Natural gas (Mcf/day) | ||||||||
Utica | 805,141 | 857,220 | ||||||
SCOOP | 172,203 | 130,888 | ||||||
Other | 67 | 9 | ||||||
Total | 977,411 | 988,117 | ||||||
Oil and condensate (Bbl/day) | ||||||||
Utica | 890 | 1,805 | ||||||
SCOOP | 3,496 | 2,666 | ||||||
Other | 52 | (19 | ) | |||||
Total | 4,438 | 4,452 | ||||||
NGL (Bbl/day) | ||||||||
Utica | 2,288 | 3,123 | ||||||
SCOOP | 8,518 | 7,045 | ||||||
Other | 2 | 3 | ||||||
Total | 10,808 | 10,171 | ||||||
Combined (Mcfe/day) | ||||||||
Utica | 824,211 | 886,788 | ||||||
SCOOP | 244,286 | 189,155 | ||||||
Other | 391 | (82 | ) | |||||
Total | 1,068,888 | 1,075,861 |
Page 2
Production Volumes by Asset Area : Year ended, December 31, 2021
Production Volumes
Successor | Predecessor | Non-GAAP Combined | Predecessor | |||||||||||||
Period from May 18, 2021 through December 31, 2021 | Period from January 1, 2021 through May 17, 2021 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
Natural gas (Mcf/day) | ||||||||||||||||
Utica | 732,044 | 780,791 | 750,341 | 795,446 | ||||||||||||
SCOOP | 183,000 | 126,294 | 161,716 | 147,138 | ||||||||||||
Other | 50 | 63 | 55 | 35 | ||||||||||||
Total | 915,094 | 907,148 | 912,112 | 942,619 | ||||||||||||
Oil and condensate (Bbl/day) | ||||||||||||||||
Utica | 963 | 1,336 | 1,103 | 1,074 | ||||||||||||
SCOOP | 4,091 | 2,508 | 3,497 | 3,803 | ||||||||||||
Other | 67 | 35 | 55 | 50 | ||||||||||||
Total | 5,121 | 3,879 | 4,655 | 4,927 | ||||||||||||
NGL (Bbl/day) | ||||||||||||||||
Utica | 2,467 | 2,638 | 2,531 | 2,943 | ||||||||||||
SCOOP | 9,190 | 6,200 | 8,068 | 7,885 | ||||||||||||
Other | 1 | 3 | 2 | 2 | ||||||||||||
Total | 11,658 | 8,841 | 10,601 | 10,830 | ||||||||||||
Combined (Mcfe/day) | ||||||||||||||||
Utica | 752,623 | 804,633 | 772,145 | 819,549 | ||||||||||||
SCOOP | 262,686 | 178,545 | 231,104 | 217,266 | ||||||||||||
Other | 455 | 288 | 392 | 345 | ||||||||||||
Total | 1,015,764 | 983,466 | 1,003,641 | 1,037,160 |
Page 3
Production and Pricing : Quarter ended, December 31, 2021
The following table summarizes production and related pricing for the quarter ended December 31, 2021, as compared to such data for the quarter ended December 31, 2020:
Successor | Predecessor | |||||||
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||
Natural gas sales | ||||||||
Natural gas production volumes (MMcf) | 89,922 | 90,907 | ||||||
Natural gas production volumes (MMcf/d) | 977 | 988 | ||||||
Total sales | $ | 492,862 | $ | 214,676 | ||||
Average price without the impact of derivatives ($/Mcf) | $ | 5.48 | $ | 2.36 | ||||
Impact from settled derivatives ($/Mcf) | $ | (2.35 | ) | $ | (0.70 | ) | ||
Average price, including settled derivatives ($/Mcf) | $ | 3.13 | $ | 1.66 | ||||
Oil and condensate sales | ||||||||
Oil and condensate production volumes (MBbl) | 408 | 410 | ||||||
Oil and condensate production volumes (MBbl/d) | 4 | 4 | ||||||
Total sales | $ | 30,481 | $ | 15,349 | ||||
Average price without the impact of derivatives ($/Bbl) | $ | 74.71 | $ | 37.44 | ||||
Impact from settled derivatives ($/Bbl) | $ | (13.18 | ) | $ | (4.84 | ) | ||
Average price, including settled derivatives ($/Bbl) | $ | 61.53 | $ | 32.60 | ||||
NGL sales | ||||||||
NGL production volumes (MBbl) | 994 | 936 | ||||||
NGL production volumes (MBbl/d) | 11 | 10 | ||||||
Total sales | $ | 43,911 | $ | 20,825 | ||||
Average price without the impact of derivatives ($/Bbl) | $ | 44.18 | $ | 22.25 | ||||
Impact from settled derivatives ($/Bbl) | $ | (7.02 | ) | $ | (0.54 | ) | ||
Average price, including settled derivatives ($/Bbl) | $ | 37.16 | $ | 21.71 | ||||
Natural gas, oil and condensate and NGL sales | ||||||||
Natural gas equivalents (MMcfe) | 98,338 | 98,979 | ||||||
Natural gas equivalents (MMcfe/d) | 1,069 | 1,076 | ||||||
Total sales | $ | 567,254 | $ | 250,850 | ||||
Average price without the impact of derivatives ($/Mcfe) | $ | 5.77 | $ | 2.53 | ||||
Impact from settled derivatives ($/Mcfe) | $ | (2.27 | ) | $ | (0.67 | ) | ||
Average price, including settled derivatives ($/Mcfe) | $ | 3.50 | $ | 1.86 | ||||
Production Costs: | ||||||||
Average lease operating expenses ($/Mcfe) | $ | 0.14 | $ | 0.13 | ||||
Average taxes other than income ($/Mcfe) | $ | 0.14 | $ | 0.10 | ||||
Average transportation, gathering, processing and compression ($/Mcfe) | $ | 0.88 | $ | 1.23 | ||||
Total lease operating expenses, midstream costs and taxes other than income ($/Mcfe) | $ | 1.16 | $ | 1.46 |
Page 4
Production and Pricing : Year ended, December 31, 2021
The following table summarizes production and related pricing for the year ended December 31, 2021, as compared to such data for the year ended December 31, 2020:
Successor | Predecessor | Non-GAAP Combined | Predecessor | |||||||||||||
Period from May 18, 2021 through December 31, 2021 | Period from January 1, May 17, | | Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||||||
Natural gas sales | ||||||||||||||||
Natural gas production volumes (MMcf) | 208,641 | 124,279 | 332,921 | 344,999 | ||||||||||||
Natural gas production volumes (MMcf/d) | 915 | 907 | 912 | 943 | ||||||||||||
Total sales | $ | 906,096 | $ | 344,390 | $ | 1,250,486 | $ | 671,535 | ||||||||
Average price without the impact of derivatives ($/Mcf) | $ | 4.34 | $ | 2.77 | $ | 3.76 | $ | 1.95 | ||||||||
Impact from settled derivatives ($/Mcf) | $ | (1.44 | ) | $ | (0.03 | ) | $ | (0.91 | ) | $ | 0.33 | |||||
Average price, including settled derivatives ($/Mcf) | $ | 2.90 | $ | 2.74 | $ | 2.85 | $ | 2.28 | ||||||||
Oil and condensate sales | ||||||||||||||||
Oil and condensate production volumes (MBbl) | 1,167 | 531 | 1,699 | 1,803 | ||||||||||||
Oil and condensate production volumes (MBbl/d) | 5 | 4 | 5 | 5 | ||||||||||||
Total sales | $ | 81,347 | $ | 29,106 | $ | 110,453 | $ | 62,902 | ||||||||
Average price without the impact of derivatives ($/Bbl) | $ | 69.71 | $ | 54.81 | $ | 65.01 | $ | 34.88 | ||||||||
Impact from settled derivatives ($/Bbl) | $ | (8.33 | ) | $ | — | $ | (5.72 | ) | $ | 25.76 | ||||||
Average price, including settled derivatives ($/Bbl) | $ | 61.38 | $ | 54.81 | $ | 59.29 | $ | 60.64 | ||||||||
NGL sales | ||||||||||||||||
NGL production volumes (MBbl) | 2,658 | 1,211 | 3,869 | 3,964 | ||||||||||||
NGL production volumes (MBbl/d) | 12 | 9 | 11 | 11 | ||||||||||||
Total sales | $ | 105,141 | $ | 36,780 | $ | 141,921 | $ | 66,814 | ||||||||
Average price without the impact of derivatives ($/Bbl) | $ | 39.56 | $ | 30.37 | $ | 36.68 | $ | 16.86 | ||||||||
Impact from settled derivatives ($/Bbl) | $ | (4.88 | ) | $ | — | $ | (3.35 | ) | $ | (0.04 | ) | |||||
Average price, including settled derivatives ($/Bbl) | $ | 34.68 | $ | 30.37 | $ | 33.33 | $ | 16.82 | ||||||||
Natural gas, oil and condensate and NGL sales | ||||||||||||||||
Natural gas equivalents (MMcfe) | 231,594 | 134,735 | 366,329 | 379,600 | ||||||||||||
Natural gas equivalents (MMcfe/d) | 1,016 | 983 | 1,004 | 1,037 | ||||||||||||
Total sales | $ | 1,092,584 | $ | 410,276 | $ | 1,502,860 | $ | 801,251 | ||||||||
Average price without the impact of derivatives ($/Mcfe) | $ | 4.72 | $ | 3.05 | $ | 4.10 | $ | 2.11 | ||||||||
Impact from settled derivatives ($/Mcfe) | $ | (1.39 | ) | $ | (0.02 | ) | $ | (0.89 | ) | $ | 0.42 | |||||
Average price, including settled derivatives ($/Mcfe) | $ | 3.33 | $ | 3.03 | $ | 3.21 | $ | 2.53 | ||||||||
Production Costs: | ||||||||||||||||
Average lease operating expenses ($/Mcfe) | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | ||||||||
Average taxes other than income ($/Mcfe) | $ | 0.13 | $ | 0.09 | $ | 0.12 | $ | 0.08 | ||||||||
Average transportation, gathering, processing and compression ($/Mcfe) | $ | 0.92 | $ | 1.20 | $ | 1.02 | $ | 1.20 | ||||||||
Total lease operating expenses, midstream costs and taxes other than income ($/Mcfe) | $ | 1.19 | $ | 1.43 | $ | 1.28 | $ | 1.42 |
Page 5
Consolidated Statements of Income: Quarter ended, December 31, 2021
(In thousands, except per share data)
(Unaudited)
Successor | Predecessor | |||||||
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||
REVENUES: | ||||||||
Natural gas sales | 492,862 | 214,676 | ||||||
Oil and condensate sales | 30,481 | 15,349 | ||||||
Natural gas liquid sales | 43,911 | 20,825 | ||||||
Net gain (loss) on natural gas, oil and NGL derivatives | 205,315 | (6,123 | ) | |||||
Total Revenues | 772,569 | 244,727 | ||||||
OPERATING EXPENSES: | ||||||||
Lease operating expenses | 14,192 | 13,070 | ||||||
Taxes other than income | 13,343 | 9,470 | ||||||
Transportation, gathering, processing and compression | 86,202 | 121,529 | ||||||
Depreciation, depletion and amortization | 65,978 | 45,375 | ||||||
General and administrative expenses | 11,256 | 13,610 | ||||||
Restructuring and liability management expenses | — | 21,246 | ||||||
Accretion expense | 500 | 796 | ||||||
Total Operating Expenses | 191,471 | 225,096 | ||||||
INCOME FROM OPERATIONS | 581,098 | 19,631 | ||||||
OTHER EXPENSE: | ||||||||
Interest expense | 15,608 | 20,402 | ||||||
Loss on debt extinguishment | 3,040 | — | ||||||
Loss from equity method investments, net | — | 68 | ||||||
Reorganization items, net | — | 152,359 | ||||||
Other, net | 5,070 | 12,367 | ||||||
Total Other Expense | 23,718 | 185,196 | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | 557,380 | (165,565 | ) | |||||
Income tax benefit | (689 | ) | — | |||||
NET INCOME (LOSS) | 558,069 | (165,565 | ) | |||||
Dividends on New Preferred Stock | (1,447 | ) | — | |||||
Participating securities - New Preferred Stock | (93,064 | ) | — | |||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | 463,558 | (165,565 | ) | |||||
NET INCOME (LOSS) PER COMMON SHARE: | ||||||||
Basic | 20,598,932 | 160,762,186 | ||||||
Diluted | 20,715,345 | 160,762,186 | ||||||
Weighted average common shares outstanding—Basic | 22.50 | (1.03 | ) | |||||
Weighted average common shares outstanding—Diluted | 22.40 | (1.03 | ) |
Page 6
Consolidated Statements of Income: Year ended, December 31, 2021
(In thousands, except per share data)
(Unaudited)
Successor | Predecessor | |||||||||||
Period from May 18, 2021 through December 31, 2021 | Period from January 1, 2021 through May 17, 2021 | Year Ended December 31, 2020 | ||||||||||
REVENUES: | ||||||||||||
Natural gas sales | 906,096 | 344,390 | 671,535 | |||||||||
Oil and condensate sales | 81,347 | 29,106 | 62,902 | |||||||||
Natural gas liquid sales | 105,141 | 36,780 | 66,814 | |||||||||
Net (loss) gain on natural gas, oil and NGL derivatives | (556,819 | ) | (137,239 | ) | 65,291 | |||||||
Total Revenues | 535,765 | 273,037 | 866,542 | |||||||||
OPERATING EXPENSES: | ||||||||||||
Lease operating expenses | 32,172 | 19,524 | 54,235 | |||||||||
Taxes other than income | 30,243 | 12,349 | 28,509 | |||||||||
Transportation, gathering, processing and compression | 212,013 | 161,086 | 456,318 | |||||||||
Depreciation, depletion and amortization | 160,913 | 62,764 | 239,744 | |||||||||
Impairment of oil and natural gas properties | 117,813 | — | 1,357,099 | |||||||||
Impairment of other property and equipment | — | 14,568 | — | |||||||||
General and administrative expenses | 34,465 | 19,175 | 59,329 | |||||||||
Restructuring and liability management expenses | 2,858 | — | 30,847 | |||||||||
Accretion expense | 1,214 | 1,229 | 3,066 | |||||||||
Total Operating Expenses | 591,691 | 290,695 | 2,229,147 | |||||||||
LOSS FROM OPERATIONS | (55,926 | ) | (17,658 | ) | (1,362,605 | ) | ||||||
OTHER EXPENSE (INCOME): | ||||||||||||
Interest expense | 40,853 | 4,159 | 120,079 | |||||||||
Loss (Gain) on debt extinguishment | 3,040 | — | (49,579 | ) | ||||||||
Loss from equity method investments, net | — | 342 | 11,055 | |||||||||
Reorganization items, net | — | (266,898 | ) | 152,359 | ||||||||
Other, net | 13,049 | 1,713 | 21,324 | |||||||||
Total Other Expense (Income) | 56,942 | (260,684 | ) | 255,238 | ||||||||
(LOSS) INCOME BEFORE INCOME TAXES | (112,868 | ) | 243,026 | (1,617,843 | ) | |||||||
Income tax (benefit) expense | (39 | ) | (7,968 | ) | 7,290 | |||||||
NET (LOSS) INCOME | (112,829 | ) | 250,994 | (1,625,133 | ) | |||||||
Dividends on New Preferred Stock | (4,573 | ) | — | — | ||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | (117,402 | ) | 250,994 | (1,625,133 | ) | |||||||
NET (LOSS) INCOME PER COMMON SHARE: | ||||||||||||
Basic | (5.71 | ) | 1.56 | (10.14 | ) | |||||||
Diluted | (5.71 | ) | 1.56 | (10.14 | ) | |||||||
Weighted average common shares outstanding—Basic | 20,544,538 | 160,833,769 | 160,231,335 | |||||||||
Weighted average common shares outstanding—Diluted | 20,544,538 | 160,833,769 | 160,231,335 |
Page 7
(In thousands, except share data)
Successor | Predecessor | |||||||
December 31, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,260 | $ | 89,861 | ||||
Accounts receivable—oil and natural gas sales | 232,854 | 119,879 | ||||||
Accounts receivable—joint interest and other | 20,383 | 12,200 | ||||||
Prepaid expenses and other current assets | 12,359 | 160,664 | ||||||
Short-term derivative instruments | 4,695 | 27,146 | ||||||
Total current assets | 273,551 | 409,750 | ||||||
Property and equipment: | ||||||||
Oil and natural gas properties, full-cost method | ||||||||
Proved oil and natural gas properties | 1,917,833 | 9,359,866 | ||||||
Unproved properties | 211,007 | 1,457,043 | ||||||
Other property and equipment | 5,329 | 88,538 | ||||||
Total property and equipment | 2,134,169 | 10,905,447 | ||||||
Less: accumulated depletion, depreciation and amortization | (278,341 | ) | (8,819,178 | ) | ||||
Total property and equipment, net | 1,855,828 | 2,086,269 | ||||||
Other assets: | ||||||||
Equity investments | — | 24,816 | ||||||
Long-term derivative instruments | 18,664 | 322 | ||||||
Operating lease assets | 322 | 342 | ||||||
Other assets | 19,867 | 18,372 | ||||||
Total other assets | 38,853 | 43,852 | ||||||
Total assets | $ | 2,168,232 | $ | 2,539,871 |
Page 8
Consolidated Balance Sheets
(In thousands, except share data)
Successor | Predecessor | |||||||
December 31, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 394,011 | $ | 244,903 | ||||
Short-term derivative instruments | 240,735 | 11,641 | ||||||
Current portion of operating lease liabilities | 182 | — | ||||||
Current maturities of long-term debt | — | 253,743 | ||||||
Total current liabilities | 634,928 | 510,287 | ||||||
Non-current liabilities: | ||||||||
Long-term derivative instruments | 184,580 | 36,604 | ||||||
Asset retirement obligation | 28,264 | — | ||||||
Non-current operating lease liabilities | 140 | — | ||||||
Long-term debt, net of current maturities | 712,946 | — | ||||||
Total non-current liabilities | 925,930 | 36,604 | ||||||
Liabilities subject to compromise | — | 2,293,480 | ||||||
Total liabilities | $ | 1,560,858 | $ | 2,840,371 | ||||
Commitments and contingencies (Notes 18 and 19) | ||||||||
Mezzanine Equity: | ||||||||
New Preferred Stock - $0.0001 par value, 110 thousand shares authorized, 57.9 thousand issued and outstanding at December 31, 2021 | 57,896 | — | ||||||
Stockholders’ Equity (Deficit): | ||||||||
Predecessor common stock - $0.01 par value, 200.0 million shares authorized, 160.8 million issued and outstanding at December 31, 2020 | — | 1,607 | ||||||
Predecessor accumulated other comprehensive loss | — | (43,000 | ) | |||||
New Common Stock - $0.0001 par value, 42.0 million shares authorized, 20.6 million issued and outstanding at December 31, 2021 | 2 | — | ||||||
Additional paid-in capital | 692,521 | 4,213,752 | ||||||
New Common Stock held in reserve, 938 thousand shares | (30,216 | ) | — | |||||
Accumulated deficit | (112,829 | ) | (4,472,859 | ) | ||||
Total stockholders’ equity (deficit) | $ | 549,478 | $ | (300,500 | ) | |||
Total liabilities, mezzanine equity and stockholders’ equity (deficit) | $ | 2,168,232 | $ | 2,539,871 |
Page 9
Consolidated Statement of Cash Flows: Quarter ended, December 31, 2021
(In thousands)
(Unaudited)
Successor | Predecessor | |||||||
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | 558,069 | $ | (165,564 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depletion, depreciation and amortization | 65,978 | 45,375 | ||||||
Loss from equity investments | — | 68 | ||||||
Loss (Gain) on debt extinguishment | 3,040 | — | ||||||
Net loss (gain) on derivative instruments | (205,315 | ) | 6,123 | |||||
Net cash (payments) receipts on settled derivative instruments | (223,283 | ) | (65,970 | ) | ||||
Non-cash reorganization items, net | — | 21,956 | ||||||
Other, net | 1,643 | 19,231 | ||||||
Changes in operating assets and liabilities, net | (71,784 | ) | 34,084 | |||||
Net cash provided by (used in) operating activities | 128,348 | (104,697 | ) | |||||
Cash flows from investing activities: | ||||||||
Additions to oil and natural gas properties | (87,807 | ) | (29,308 | ) | ||||
Proceeds from sale of oil and natural gas properties | 3,739 | 4,039 | ||||||
Other, net | 107 | 1,378 | ||||||
Net cash used in investing activities | (83,961 | ) | (23,891 | ) | ||||
Cash flows from financing activities: | ||||||||
Principal payments on Pre-Petition Revolving Credit Facility | — | (11,290 | ) | |||||
Borrowings on Pre-Petition Revolving Credit Facility | — | 181,844 | ||||||
Borrowings on Exit Credit Facility | 99,422 | — | ||||||
Principal payments on Exit Credit Facility | (300,028 | ) | — | |||||
Principal payments on DIP credit facility | — | (90,000 | ) | |||||
Borrowings on DIP Credit facility | — | 90,000 | ||||||
Principal payments on New Credit Facility | (477,000 | ) | — | |||||
Borrowings on New Credit Facility | 641,000 | — | ||||||
Debt issuance costs and loan commitment fees | (7,558 | ) | (105 | ) | ||||
DIP Credit Facility Financing Fees | — | (2,988 | ) | |||||
Other, net | (1,448 | ) | (55 | ) | ||||
Net cash (used in) provided by in financing activities | (45,612 | ) | 167,406 | |||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,225 | ) | 38,818 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 4,485 | 51,043 | ||||||
Cash, cash equivalents and restricted cash at end of period | 3,260 | 89,861 |
Page 10
Consolidated Statement of Cash Flows: Year ended, December 31, 2021
(In thousands)
(Unaudited)
Successor | Predecessor | |||||||||||
Period from May 18, 2021 through December 31, 2021 | Period from January 1, 2021 through May 17, 2021 | Year Ended December 31, 2020 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net (loss) income | $ | (112,829 | ) | $ | 250,994 | $ | (1,625,133 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Depletion, depreciation and amortization | 160,913 | 62,764 | 239,744 | |||||||||
Impairment of oil and natural gas properties | 117,813 | — | 1,357,099 | |||||||||
Impairment of other property and equipment | — | 14,568 | — | |||||||||
Loss from equity investments | — | 342 | 11,055 | |||||||||
Loss (Gain) on debt extinguishment | 3,040 | — | (49,579 | ) | ||||||||
Net loss (gain) on derivative instruments | 556,819 | 137,239 | (65,291 | ) | ||||||||
Net cash (payments) receipts on settled derivative instruments | (322,857 | ) | (3,361 | ) | 159,394 | |||||||
Non-cash reorganization items, net | — | (446,012 | ) | 21,956 | ||||||||
Deferred income tax expense | — | — | 7,290 | |||||||||
Other, net | 3,130 | 1,727 | 31,984 | |||||||||
Changes in operating assets and liabilities, net | (113,044 | ) | 153,894 | 6,785 | ||||||||
Net cash provided by operating activities | 292,985 | 172,155 | 95,304 | |||||||||
Cash flows from investing activities: | ||||||||||||
Additions to oil and natural gas properties | (207,113 | ) | (102,330 | ) | (367,287 | ) | ||||||
Proceeds from sale of oil and natural gas properties | 4,339 | 15 | 50,971 | |||||||||
Other, net | 2,669 | 4,484 | 1,729 | |||||||||
Net cash used in investing activities | (200,105 | ) | (97,831 | ) | (314,587 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Principal payments on Pre-Petition Revolving Credit Facility | — | (318,961 | ) | (383,290 | ) | |||||||
Borrowings on Pre-Petition Revolving Credit Facility | — | 26,050 | 713,701 | |||||||||
Borrowings on Exit Credit Facility | 406,277 | 302,751 | — | |||||||||
Principal payments on Exit Credit Facility | (709,028 | ) | — | — | ||||||||
Principal payments on DIP credit facility | — | (157,500 | ) | (90,000 | ) | |||||||
Borrowings on DIP Credit facility | — | — | 90,000 | |||||||||
Principal payments on New Credit Facility | (477,000 | ) | — | — | ||||||||
Borrowings on New Credit Facility | 641,000 | — | — | |||||||||
Debt issuance costs and loan commitment fees | (8,783 | ) | (7,100 | ) | — | |||||||
Repurchase of senior notes | — | — | (22,827 | ) | ||||||||
Proceeds from issuance of New Preferred Stock | — | 50,000 | (2,988 | ) | ||||||||
Other, net | (1,503 | ) | (8 | ) | (1,512 | ) | ||||||
Net cash (used in) provided by in financing activities | (149,037 | ) | (104,768 | ) | 303,084 | |||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (56,157 | ) | (30,444 | ) | 83,801 | |||||||
Cash, cash equivalents and restricted cash at beginning of period | 59,417 | 89,861 | 6,060 | |||||||||
Cash, cash equivalents and restricted cash at end of period | 3,260 | 59,417 | 89,861 |
Page 11
Gulfport’s 2022 guidance assumes commodity strip prices as of February 15, 2022, adjusted for applicable commodity and location differentials, and no property acquisitions or divestitures.
Year Ending | ||||||||
December 31, 2022 | ||||||||
Low | High | |||||||
Production | ||||||||
Average daily gas equivalent (MMcfepd) | 975 | 1,025 | ||||||
% Gas | ~90% | |||||||
Realizations (before hedges) | ||||||||
Natural gas (differential to NYMEX settled price) ($/Mcf) | $ | (0.15 | ) | $ | (0.25 | ) | ||
NGL (% of WTI) | 45 | % | 55 | % | ||||
Oil (differential to NYMEX WTI) ($/Bbl) | $ | (3.00 | ) | $ | (4.00 | ) | ||
Operating costs | ||||||||
Lease operating expense ($/Mcfe) | $ | 0.16 | $ | 0.18 | ||||
Taxes other than income ($/Mcfe) | $ | 0.11 | $ | 0.13 | ||||
Transportation, gathering, processing and compression(1) ($/Mcfe) | $ | 0.92 | $ | 0.96 | ||||
Recurring cash general and administrative(2,3) (in millions) | $ | 42 | $ | 44 |
(1) | Assumes rejection of Rover firm transportation agreement. |
(2) | Recurring cash G&A includes capitalization. It excludes non-cash stock compensation and expenses related to certain legal and restructuring charges. |
Total | ||||||||
Capital expenditures (incurred) | (in millions) | |||||||
D&C | $ | 320 | $ | 360 | ||||
Leasehold and land | $20 | |||||||
Total | $ | 340 | $ | 380 | ||||
Free cash flow(3) | $335 |
(3) | This is a non-GAAP measure. Reconciliations of these non-GAAP measures and other disclosures are included in these supplemental financial tables. |
Page 12
The below details Gulfport’s hedging positions as of February 28, 2022.
2022 | 2023 | |||||||
Natural Gas Contract Summary (NYMEX): | ||||||||
Fixed Price Swaps | ||||||||
Volume (BBtupd) | 141 | 135 | ||||||
Weighted Average Price ($/MMBtu) | $ | 2.88 | $ | 3.45 | ||||
Fixed Price Collars | ||||||||
Volume (BBtupd) | 477 | 85 | ||||||
Weighted Average Floor Price ($/MMBtu) | $ | 2.64 | $ | 2.75 | ||||
Weighted Average Ceiling Price ($/MMBtu) | $ | 3.22 | $ | 4.25 | ||||
Fixed Price Calls Sold | ||||||||
Volume (BBtupd) | 153 | 508 | ||||||
Weighted Average Price ($/MMBtu) | $ | 2.90 | $ | 2.90 | ||||
Rex Zone 3 Basis | ||||||||
Volume (BBtupd) | 25 | 20 | ||||||
Differential ($/MMBtu) | $ | (0.10 | ) | $ | (0.21 | ) | ||
OGT Basis | ||||||||
Volume (BBtupd) | 7 | — | ||||||
Differential ($/MMBtu) | $ | 0.50 | $ | — | ||||
Oil Contract Summary (WTI): | ||||||||
Fixed Price Swaps | ||||||||
Volume (Bblpd) | 2,104 | 2,000 | ||||||
Weighted Average Price ($/Bbl) | $ | 66.23 | $ | 67.89 | ||||
Fixed Price Collars | ||||||||
Volume (Bblpd) | 1,500 | — | ||||||
Weighted Average Floor Price ($/Bbl) | $ | 55.00 | $ | — | ||||
Weighted Average Ceiling Price ($/Bbl) | $ | 60.00 | $ | — | ||||
NGL Contract Summary: | ||||||||
C3 Propane Fixed Price Swaps | ||||||||
Volume (Bblpd) | 3,378 | 2,000 | ||||||
Weighted Average Price ($/Bbl) | $ | 35.09 | $ | 35.05 |
Page 13
Gulfport’s management uses certain non-GAAP financial measures for planning, forecasting and evaluating business and financial performance, and believes that they are useful tool to assess Gulfport’s operating results. Although these are not measures of performance calculated in accordance with generally accepted accounting principles (GAAP), management believes that these financial measures are useful to an investor in evaluating Gulfport because (i) analysts utilize these metrics when evaluating company performance and have requested this information as of a recent practicable date, (ii) these metrics are widely used to evaluate a company’s operating performance, and (iii) we want to provide updated information to investors. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with GAAP. In addition, because all companies do not calculate these measures identically, these measures may not be comparable to similarly titled measures of other companies.
These non-GAAP financial measures include Adjusted Net Income, Adjusted EBITDA, Free Cash Flow, and Recurring General and Administrative Expense. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. These non-GAAP measure should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP.
Page 14
Adjusted Net Income is a non-GAAP financial measure equal to (loss) income before income taxes less reorganization items, non-cash derivative loss (gain), early termination of sold call contracts, impairments of oil and gas properties, property and equipment, contractual charges on midstream disputes, non-recurring general and administrative expenses, restructuring and liability management expenses, loss (gain) on debt extinguishment, loss from equity method investments and other items which include rig termination fees, stock-based compensation and other non-material expenses.
Adjusted EBITDA is a non-GAAP financial measure equal to net (loss) income, the most directly comparable GAAP financial measure, plus interest expense, income tax expense (benefit), depreciation, depletion and amortization and impairment of oil and gas properties, property and equipment, reorganization items, non-cash derivative loss (gain), early termination of sold call contracts, contractual charges on midstream disputes, non-recurring general and administrative expenses, restructuring and liability management expenses, loss (gain) on debt extinguishment, loss from equity method investments and other items which include rig termination fees, stock-based compensation and other non-material expenses.
Free Cash Flow is a non-GAAP measure defined as Adjusted EBITDA plus certain non-cash items that are included in Net Cash Provided by (Used in) Operating Activities but excluded from Adjusted EBITDA less interest expense, capital expenses incurred and capital expenditures incurred. Gulfport includes a Free Cash Flow estimate for 2022. We are unable, however, to provide a quantitative reconciliation of the forward-looking non-GAAP measure to its most directly comparable forward-looking GAAP measure because management cannot reliably quantify certain of the necessary components of such forward-looking GAAP measure.
Recurring General and Administrative Expense is a non-GAAP financial measure equal to general and administrative expense (GAAP) plus capitalized general and administrative expense, less non-recurring general and administrative expense. Gulfport includes a Recurring General and Administrative Expense estimate for 2022. We are unable, however, to provide a quantitative reconciliation of the forward-looking non-GAAP measure to its most directly comparable forward-looking GAAP measure because management cannot reliably quantify certain of the necessary components of such forward-looking GAAP measure.
Page 15
Adjusted Net Income: Quarter ended, December 31, 2021
(In thousands)
(Unaudited)
Successor | Predecessor | |||||||
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||
Income (Loss) Before Income Taxes (GAAP) | 557,380 | (165,565 | ) | |||||
Adjustments: | ||||||||
Reorganization items, net | — | 152,359 | ||||||
Non-cash derivative gain | (428,598 | ) | (59,848 | ) | ||||
Early termination of sold call contracts | — | 60,179 | ||||||
Non-recurring general and administrative expense | 4,758 | 5,627 | ||||||
Restructuring and liability management expenses | — | 21,246 | ||||||
Loss on debt extinguishment | 3,040 | — | ||||||
Loss from equity method investments | — | 68 | ||||||
Other, net | 6,215 | 13,206 | ||||||
Adjusted Net Income (Non-GAAP) | $ | 142,795 | $ | 27,272 | ||||
Dividends on New Preferred Stock | (1,447 | ) | — | |||||
Participating Securities - New Preferred Stock | $ | (23,632 | ) | — | ||||
Adjusted Net Income Attributable to Common Stockholders (Non-GAAP) | $ | 117,716 | $ | 27,272 | ||||
Adjusted Net Income Per Common Share, Basic (Non-GAAP) | $ | 5.71 | $ | 0.17 | ||||
Adjusted Net Income Per Common Share, Diluted (Non-GAAP) | $ | 5.69 | $ | 0.17 |
Page 16
Adjusted Net Income: Year ended, December 31, 2021
(In thousands)
(Unaudited)
Successor | Predecessor | Non-GAAP Combined | Predecessor | |||||||||||||
Period from May 18, 2021 | Period from January 1, 2021 through May 17, 2021 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
(Loss) Income Before Income Taxes (GAAP) | $ | (112,868 | ) | $ | 243,026 | $ | 130,158 | $ | (1,617,843 | ) | ||||||
Adjustments: | ||||||||||||||||
Reorganization items, net | — | (266,898 | ) | (266,898 | ) | 152,359 | ||||||||||
Non-cash derivative loss | 233,962 | 133,878 | 367,840 | 92,723 | ||||||||||||
Early termination of sold call contracts | — | — | — | 60,179 | ||||||||||||
Impairments | 117,813 | — | 117,813 | 1,357,099 | ||||||||||||
Contractual charges on midstream disputes | — | 30,351 | 30,351 | — | ||||||||||||
Non-recurring general and administrative expense | 18,357 | 8,923 | 27,280 | 25,475 | ||||||||||||
Restructuring and liability management expenses | 2,858 | — | 2,858 | 30,847 | ||||||||||||
Loss (Gain) on debt extinguishment | 3,040 | — | 3,040 | (49,579 | ) | |||||||||||
Loss from equity method investments | — | 342 | 342 | 11,055 | ||||||||||||
Other, net | 15,093 | 3,209 | 18,302 | 24,904 | ||||||||||||
Adjusted Net Income (Non-GAAP) | $ | 278,255 | $ | 152,831 | $ | 431,086 | $ | 87,219 | ||||||||
Dividends on New Preferred Stock | $ | (4,573 | ) | $ | — | $ | (4,573 | ) | $ | — | ||||||
Participating Securities - New Preferred Stock(1) | $ | (45,859 | ) | $ | — | $ | (45,859 | ) | $ | — | ||||||
Adjusted Net Income Attributable to Common Stockholders (Non-GAAP) | $ | 227,823 | $ | 152,831 | $ | 380,654 | $ | 87,219 | ||||||||
Adjusted Net Income Per Common Share, Basic (Non-GAAP)(1) | $ | 11.09 | $ | 0.95 | $ | 17.28 | $ | 0.54 | ||||||||
Adjusted Net Income Per Common Share, Diluted (Non-GAAP)(1) | $ | 11.06 | $ | 0.95 | $ | 17.23 | $ | 0.54 |
(1) | For the Non-GAAP combined period, the Company used the Successor’s basic and diluted weighted average share count to calculate per share amounts. |
Page 17
Adjusted EBITDA: Quarter ended, December 31, 2021
(In thousands)
(Unaudited)
Successor | Predecessor | |||||||
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||
Net (loss) income (GAAP) | $ | 558,069 | $ | (165,565 | ) | |||
Adjustments: | ||||||||
Interest expense | 15,608 | 20,402 | ||||||
Income tax benefit | (689 | ) | — | |||||
DD&A and impairment | 66,478 | 46,171 | ||||||
Reorganization items, net | — | 152,359 | ||||||
Non-cash derivative gain | (428,598 | ) | (59,847 | ) | ||||
Early termination of sold call contracts | — | 60,179 | ||||||
Non-recurring general and administrative expenses | 4,758 | 5,627 | ||||||
Restructuring and liability management expenses | — | 21,246 | ||||||
Loss on debt extinguishment | 3,040 | — | ||||||
Loss from equity method investments | — | 68 | ||||||
Other, net | 6,215 | 13,206 | ||||||
Adjusted EBITDA (Non-GAAP) | $ | 224,881 | $ | 93,846 |
Page 18
Adjusted EBITDA: Year ended, December 31, 2021
(In thousands)
(Unaudited)
Successor | Predecessor | Non-GAAP Combined | Predecessor | |||||||||||||
Period from May 18, 2021 through December 31, 2021 | Period from January 1, 2021 through May 17, 2021 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
Net (loss) income (GAAP) | $ | (112,829 | ) | $ | 250,994 | $ | 138,165 | $ | (1,625,133 | ) | ||||||
Adjustments: | ||||||||||||||||
Interest expense | 40,853 | 4,159 | 45,012 | 120,079 | ||||||||||||
Income tax (benefit) expense | (39 | ) | (7,968 | ) | (8,007 | ) | 7,290 | |||||||||
DD&A and impairment | 279,940 | 78,561 | 358,501 | 1,599,909 | ||||||||||||
Reorganization items, net | — | (266,898 | ) | (266,898 | ) | 152,359 | ||||||||||
Non-cash derivative (gain) loss | 233,962 | 133,878 | 367,840 | 92,723 | ||||||||||||
Early termination of sold call contracts | — | — | — | 60,179 | ||||||||||||
Contractual charges on midstream disputes | — | 30,351 | 30,351 | — | ||||||||||||
Non-recurring general and administrative expenses | 18,357 | 8,923 | 27,280 | 25,475 | ||||||||||||
Restructuring and liability management expenses | 2,858 | — | 2,858 | 30,847 | ||||||||||||
Loss (Gain) on debt extinguishment | 3,040 | — | 3,040 | (49,579 | ) | |||||||||||
Loss from equity method investments | — | 342 | 342 | 11,055 | ||||||||||||
Other, net | 15,093 | 3,209 | 18,302 | 24,905 | ||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 481,235 | $ | 235,551 | $ | 716,786 | $ | 450,109 |
Page 19
Free Cash Flow: Quarter ended, December 31, 2021
(In thousands)
(Unaudited)
Successor | Predecessor | |||||||
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||
Net cash provided by (used in) operating activity (GAAP) | $ | 128,348 | $ | (104,697 | ) | |||
Adjustments: | ||||||||
Interest expense | 15,608 | 20,402 | ||||||
Current income tax benefit | (689 | ) | — | |||||
Cash reorganization items, net | — | 130,403 | ||||||
Non-recurring general and administrative expenses | 4,758 | 5,627 | ||||||
Restructuring and liability management expenses | — | 21,246 | ||||||
Early termination of sold call contracts | — | 60,179 | ||||||
Other, net | 5,072 | (5,230 | ) | |||||
Changes in operating assets and liabilities, net | 71,784 | (34,084 | ) | |||||
Adjusted EBITDA (Non-GAAP) | $ | 224,881 | $ | 93,846 | ||||
Interest expense | (15,608 | ) | (20,402 | ) | ||||
Capitalized expenses incurred(1) | (3,937 | ) | (5,232 | ) | ||||
Capital expenditures incurred(2) | (71,458 | ) | (26,665 | ) | ||||
Free Cash Flow (Non-GAAP) | $ | 133,878 | $ | 41,547 |
(1) | Includes cash capitalized general and administrative expense and incurred capitalized interest expenses. | |
(2) | Incurred capital expenditures and cash capital expenditures may vary from period to period due to the cash payment cycle. |
Page 20
Free Cash Flow: Year ended, December 31, 2021
(In thousands)
(Unaudited)
Successor | Predecessor | Non-GAAP Combined | Predecessor | |||||||||||||
Period from May 18, 2021 through December 31, 2021 | Period from January 1, 2021 through May 17, 2021 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
Net cash provided by operating activity (GAAP) | $ | 292,985 | $ | 172,155 | $ | 465,140 | $ | 95,304 | ||||||||
Adjustments: | ||||||||||||||||
Interest expense | 40,853 | 4,159 | 45,012 | 120,079 | ||||||||||||
Current income tax (benefit) expense | (39 | ) | (7,968 | ) | (8,007 | ) | — | |||||||||
Cash reorganization items, net | — | 179,114 | 179,114 | 130,403 | ||||||||||||
Non-recurring general and administrative expenses | 18,357 | 8,923 | 27,280 | 25,475 | ||||||||||||
Restructuring and liability management expenses | 2,858 | — | 2,858 | 30,847 | ||||||||||||
Early termination of sold call contracts | — | — | — | 60,179 | ||||||||||||
Contractual charges on midstream disputes | — | 30,351 | 30,351 | — | ||||||||||||
Other, net | 13,176 | 2,711 | 15,887 | (5,393 | ) | |||||||||||
Changes in operating assets and liabilities, net | 113,044 | (153,894 | ) | (40,850 | ) | (6,785 | ) | |||||||||
Adjusted EBITDA (Non-GAAP) | $ | 481,234 | $ | 235,551 | $ | 716,785 | $ | 450,109 | ||||||||
Interest expense | (40,853 | ) | (4,159 | ) | (45,012 | ) | (120,079 | ) | ||||||||
Capitalized expenses incurred(1) | (9,820 | ) | (8,020 | ) | (17,840 | ) | (25,915 | ) | ||||||||
Capital expenditures incurred(2) | (184,488 | ) | (108,408 | ) | (292,896 | ) | (263,608 | ) | ||||||||
Free Cash Flow (Non-GAAP) | $ | 246,073 | $ | 114,964 | $ | 361,037 | $ | 40,507 |
(1) | Includes cash capitalized general and administrative expense and incurred capitalized interest expenses. |
(2) | Incurred capital expenditures and cash capital expenditures may vary from period to period due to the cash payment cycle. |
Page 21
Recurring General and Administrative Expenses:
Quarter ended, December 31, 2021
(In thousands)
(Unaudited)
Successor | Predecessor | |||||||||||||||||||||||
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||||||||||||||||||
Cash | Non-Cash | Total | Cash | Non-Cash | Total | |||||||||||||||||||
General and administrative expense (GAAP) | $ | 10,111 | $ | 1,145 | $ | 11,256 | $ | 12,770 | $ | 840 | $ | 13,610 | ||||||||||||
Capitalized general and administrative expense | 3,856 | 617 | 4,473 | 4,561 | 671 | 5,232 | ||||||||||||||||||
Non-recurring general and administrative expense(1) | (4,758 | ) | — | (4,758 | ) | (5,627 | ) | — | (5,627 | ) | ||||||||||||||
Recurring General and Administrative Expense (Non-GAAP) | $ | 9,209 | $ | 1,762 | $ | 10,971 | $ | 11,704 | $ | 1,511 | $ | 13,215 |
(1) | Includes non-recurring general and administrative expenses related to certain legal and restructuring charges. |
Page 22
Recurring General and Administrative Expenses:
Year ended, December 31, 2021
(In thousands)
(Unaudited)
Successor | Predecessor | Non-GAAP Combined | Predecessor | |||||||||||||||||||||||||||||||||||||||||||||
Period from May 18, 2021 through December 31, 2021 | Period from January 1, 2021 through May 17, 2021 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Cash | Non-Cash | Total | Cash | Non-Cash | Total | Cash | Non-Cash | Total | Cash | Non-Cash | Total | |||||||||||||||||||||||||||||||||||||
General and administrative expense (GAAP) | $ | 32,421 | $ | 2,044 | $ | 34,465 | $ | 18,002 | $ | 1,173 | $ | 19,175 | $ | 50,423 | $ | 3,217 | $ | 53,640 | $ | 55,746 | $ | 3,583 | $ | 59,329 | ||||||||||||||||||||||||
Capitalized general and administrative expense | 9,623 | 1,101 | 10,724 | 7,097 | 922 | 8,019 | 16,720 | 2,023 | 18,743 | 22,147 | 2,861 | 25,008 | ||||||||||||||||||||||||||||||||||||
Non-recurring general and administrative expense(1) | (18,357 | ) | — | (18,357 | ) | (8,923 | ) | — | (8,923 | ) | (27,280 | ) | — | (27,280 | ) | (25,475 | ) | — | (25,475 | ) | ||||||||||||||||||||||||||||
Recurring General and Administrative Expense (Non-GAAP) | $ | 23,687 | $ | 3,145 | $ | 26,832 | $ | 16,176 | $ | 2,095 | $ | 18,271 | $ | 39,863 | $ | 5,240 | $ | 45,103 | $ | 52,418 | $ | 6,444 | $ | 58,862 |
(1) | Includes non-recurring general and administrative expenses related to certain legal and restructuring charges. |
Page 23
Cover |
Feb. 28, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Feb. 28, 2022 |
Entity File Number | 001-19514 |
Entity Registrant Name | GULFPORT ENERGY CORPORATION |
Entity Central Index Key | 0000874499 |
Entity Tax Identification Number | 86-3684669 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 3001 Quail Springs Parkway |
Entity Address, City or Town | Oklahoma City |
Entity Address, State or Province | OK |
Entity Address, Postal Zip Code | 73134 |
City Area Code | 405 |
Local Phone Number | 252-4600 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock, par value $0.0001 per share |
Trading Symbol | GPOR |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
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