Q3 2021 Gulfport Energy Corp Earnings Call

November 3, 2021

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Operator: Greetings. Welcome to the Gulfport Energy Corp Q3 2021 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to your host, Tommy Renouard. You may begin.

Things.

Welcome to the Gulf Port Energy Court third quarter of 2021 conference call.

At this time all participants are in a listen only mode. A question and answer session will file a formal presentation.

If anyone should acquire operator assistance during the conference. Please press stars zero on your telephone keypad.

Please note that this conference is being recorded I went out to the conference over to your host Tommy Renard you may begin.

Thank you and good morning, welcome to go for energy corporations third quarter of 2021 earnings Conference call I haven't called me when our senior analyst and Investor Relations speakers on today's call for 10 cut Chief Executive Officer, and both of you see executive Vice President is.

Tommy Renouard: Thank you, and good morning. Welcome to Gulfport Energy Corporation's Q3 2021 earnings conference call. I am Tommy Renouard, Senior Analyst, Investor Relations. Speakers on today's call include Tim Cutt, Chief Executive Officer, and Bill Buese, Executive Vice President and Chief Financial Officer. I would like to remind everybody that during this conference call, the participants may make certain forward-looking statements relating to the company's financial condition, results of operations, plans, objectives, future performance, and business. We caution you that actual results could differ materially from those that are indicated in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the company's filings with the SEC. In addition, we may reference non-GAAP measures. Reconciliations to the comparable GAAP measures will be posted on our website.

Chief Financial Officer, I would like to remind everybody that during this conference call participants may make certain forward looking statements relating to the company's financial condition results of operations plans objectives huge performance in business. We caution you that actual results to differ materially those that are indicate.

And these forward looking statements due to a variety of factors information concerning these factors can be found in the company's filings with the SEC In addition, we may reference non-GAAP measures reconciliation to the comparable get answers will be posted on our website and updated both for presentation was posted.

Tommy Renouard: An updated Gulfport presentation was posted yesterday evening to our website in conjunction with the earnings announcement. Please review at your leisure. At this time, I would like to turn the call over to Tim Cutt, CEO.

Yesterday evening to our website in conjunction with their earnings announcement. Please review at your leisure at this time I'd like to turn the call over to Tim cut C O.

Tim Cutt: Thanks, Tommy, and good morning, and thank you for joining the call. I will begin this morning with a summary of the Q3 highlights, followed by an operational update before turning the call over to Bill to discuss the financial and updates of our full year 2021 guidance. As you saw from our earnings release, we've made steady progress on numerous fronts during the quarter. We put a new credit facility in place that increases our liquidity by $160 million and accelerates our ability to return capital to shareholders, as demonstrated by the announced $100 million share repurchase program. The 6-well Angelo Pad was completed in the Utica, which is currently flowing at a rate of 200 million cubic feet per day.

Thanks for telling me and good morning, and thank you for joining joining the call will begin this morning with a summary of the third quarter highlights followed by an operational update before turning the call over the bill to discuss the financial and updates for the full year 2021 guidance as you saw from our earnings release, we made steady progress on numerous fronts during the quarter, but a new.

Credit facility in place that increases our liquidity by 160 million and accelerates our ability to return capital to shareholders as demonstrated by the announced $100 million share repurchase program.

Six one O Angelo pad was completed and the you to go which is currently falling into right into 200 million three per day.

Finally, the company fully resolved as large as those bankruptcy litigation exposure Matusi energy and announced the settlement agreement related to its long standing litigation was stinker refresher pumping in September I'm pleased to have this litigation behind us. So that we can focus on the company's tremendous opportunities moving forward.

Tim Cutt: Finally, the company fully resolved its largest post-bankruptcy litigation exposure with TC Energy and announced a settlement agreement related to its longstanding litigation with Stingray Pressure Pumping in September. I'm pleased to have this litigation behind us so that we can focus on the company's tremendous opportunities moving forward. Moving to our Q3 operational results, production averaged 973 million cubic feet of gas equivalent per day during the quarter, slightly above expectations, driven by strong reservoir performance from both the Utica and the SCOOP development programs. We anticipate an increase in total production during the Q4, driven by the strong contribution from the Angelo Pad. Gulfport invested $81 million of capital in the Q3. We continue to identify opportunities to lower our total drilling and completion costs, however, remain primarily focused on delivering peer-leading development costs per Mcfe produced.

Tim Cutt: Finally, the company fully resolved its largest post-bankruptcy litigation exposure with TC Energy and announced a settlement agreement related to its longstanding litigation with Stingray Pressure Pumping in September. I'm pleased to have this litigation behind us so that we can focus on the company's tremendous opportunities moving forward. Moving to our Q3 operational results, production averaged 973 million cu ft of gas equivalent per day during the quarter, slightly above expectations, driven by strong reservoir performance from both the Utica and the SCOOP development programs. We anticipate an increase in total production during the Q4, driven by the strong contribution from the Angelo Pad. Gulfport invested $81 million of capital in the Q3. We continue to identify opportunities to lower our total drilling and completion costs, however, remain primarily focused on delivering peer-leading development costs per Mcfe produced.

Moving to our third quarter operational results production average 973 million cubic feet of gas equivalent per day during the quarter slightly above expectations driven by strong reservoir performance from both of you to Kevin just due to the progress we anticipate an increase in total production during the fourth quarter driven by the strong contribution from the Angela.

Pat.

Don't want invested $81 million of capital in the third quarter, we continued to identify opportunities to lower our total drilling and completion cost. However remain primarily focused on delivering peered, leading development cost per mcse produced move.

Moving forward, we continued to target a maintenance level of capital spend of approximately $300 million per year, Despite service cost inflation.

Tim Cutt: Moving forward, we continue to target a maintenance level of capital spend of approximately $300 million per year despite service cost inflation. This level of spend is expected to result in roughly 1 Bcf equivalent per day of production. Improved well performance and longer flat time periods resulting from our new development spacing and completion designs provide this opportunity, allowing us to deliver more molecules with less capital. Prior to providing formal 2022 guidance, we're exploring ways to improve cost efficiencies by potentially moving to a continuous one-rig drilling program in both the Utica and SCOOP. Turning now to our development program, I am pleased to report that our results in both the SCOOP and Utica are outperforming historical development results. On page 13 of the IR deck, you will find recent results from our 2021 Utica program.

This Lola spend is expected results in roughly one bcf equivalent for the production.

Blue and print well performance and longer Platon parents, resulting from our new development spacing and completion designs provide this opportunity, allowing us to deliver more molecules with less capital.

Prior to providing formal 20th 22 guidance, we're exploring ways to improve cost efficiencies on potentially moving to a continuous one rig drilling program and both of Utica and scoot.

Turning now to our development program I am pleased to report that our results about the stupid Utica are outperforming historical development. The results on page 13 of they are the coupon recent results from a 2021 you can program the Shannon hitter shut wells with the online for approximately eight months and remain on but in addition are Morris.

Tim Cutt: The Shannon and Hendershot wells have been online for approximately eight months and remain on plateau. In addition, our Morris and Garrett pads have been online several months, and we are seeing similar promising early time data. These wells are located in the southern portion of the play in Monroe County, and we are very encouraged with how these wells are performing as compared to historic wells in the same area. Finally, you can see the rapid buildup of the Angelo wells to their target production rates ahead of schedule. We expect the Utica 2021 development program production to stay relatively flat through November and start to decline in December as the Shannon and Hendershot wells approach line pressure. We believe that this strong performance is driven by the move to wider spacing and optimized frac jobs.

And your pets have been online several months and we were saying similar promising early top data. These whales are located in the southern portion of the play in Monroe County, and we're very encouraged with how these wells are performing as compared to historic wells in the same area.

You can see the rapid buildup Angela wills to their target production rates ahead of schedule.

We expect the use of 2021 development program productions, a relatively flat through November and start to decline in December the Shannon finish up wells approach line pressure, we believe that the strong performance is driven by the move to water spacing and optimize fructose mm slides 14 through 17, we have highlighted are Angela Pat development.

Tim Cutt: On slides 14 through 17, we have highlighted our Angelo Pad development. This is our most substantial test of our new development program approach to date. We have provided a picture of the simulfrac operation on page 14 of the IR deck. This operation enabled us to complete the wells in 60 days versus 90 days using normal fracking techniques. We completed an average of just over 9 stages per day versus our historical 6 per day and are encouraged by the fact that we achieved multiple days above 12 stages and a record day of 16. We are very pleased to achieve 100% reuse of produced water for fracking operations and plan to utilize dual fuel rigs and frac spreads for future operations, which will lower costs and improve environmental performance.

Tim Cutt: On slides 14 through 17, we have highlighted our Angelo Pad development. This is our most substantial test of our new development program approach to date. We have provided a picture of the simulfrac operation on page 14 of the IR deck. This operation enabled us to complete the wells in 60 days vs. 90 days using normal fracking techniques. We completed an average of just over nine stages per day vs. Our historical six per day and are encouraged by the fact that we achieved multiple days above 12 stages and a record day of 16. We are very pleased to achieve 100% reuse of produced water for fracking operations and plan to utilize dual fuel rigs and frac spreads for future operations, which will lower costs and improve environmental performance.

This is our most substantial test of our new development program approach to date, when you've provided a picture of the final product operation on page 14 of the iron deck. This operation and able to complete the wells and 60 days versus 90 days using normal practice techniques.

We completed an average of just over nine stages per day versus our historical six per day and are encouraged by the fact that we achieved multiple days above 12 stages and a record day of 16, we were very pleased to achieve 100 per cent reuse news water for fracking operations and plan to utilize bill fuel rigs and Frank spreads for.

Future operations, which will lower costs and improve environmental performance you will see on slide 15 that we utilized to spell begins to draw the Angela will will simultaneously, which accelerated production start up into a high commodity price environment about 10 days is shown on slide 16 production was brought him one target rates ahead of schedule.

Tim Cutt: You will see on slide 15 that we utilized 2 snubbing units to drill out the Angelo well simultaneously, which accelerated production start up into a high commodity price environment by 10 days. As shown on slide 16, production was brought online at target rates ahead of schedule and is expected to remain on plateau for extended period. The estimated drilling complete costs are consistent with our new development approach at $750 a foot, and when applying lessons learned from the Angelo Pad, there is additional opportunity for improvement. Moving to the SCOOP development results, we experienced strong production from the asset during the quarter, a 12% increase from Q2. In addition, as you can see from slide 12, the wells are declining at a slower rate than budgeted, resulting in cumulative rates performing much better than historical Gulfport wells.

Tim Cutt: You will see on slide 15 that we utilized two snubbing units to drill out the Angelo well simultaneously, which accelerated production start up into a high commodity price environment by 10 days. As shown on slide 16, production was brought online at target rates ahead of schedule and is expected to remain on plateau for extended period. The estimated drilling complete costs are consistent with our new development approach at $750 a ft, and when applying lessons learned from the Angelo Pad, there is additional opportunity for improvement. Moving to the SCOOP development results, we experienced strong production from the asset during the quarter, an increase of 12% from Q2. In addition, as you can see from slide 12, the wells are declining at a slower rate than budgeted, resulting in cumulative rates performing much better than historical Gulfport wells.

<unk> and is expected to remain on plateau for extended period.

The estimated costs are consistent with our new development approach $750, a foot and when applying lessons learned from the animal pad, there's additional opportunity for improvement moving.

Moving to the school the development results, we experienced strong production from the acid during the quarter, an increase of 12% from the second quarter. In addition, as you can see from slot 12, the wells are declining at a slower rate than budgeted, resulting in cumulative rates forming much better than historical go for wells, we attribute the improve.

Tim Cutt: We attribute the improved performance to wider spacing and longer laterals and are pleased with the results to date. We are currently running 1 rig in the SCOOP and plan to run, return to fracking operations in January 2022. We continue to focus on improving the company's cost efficiency. As discussed during the last call, costs are expected to decline by $0.43 per Mcfe or 23% year on year, which significantly improves our margins and is expected to provide substantial and sustainable free cash flow generation moving forward. LOE for the quarter was up slightly, primarily due to increased water hauling costs, but the full year guidance remained consistent at $0.14 per Mcfe for 2021.

Tim Cutt: We attribute the improved performance to wider spacing and longer laterals and are pleased with the results to date. We are currently running 1 rig in the SCOOP and plan to run, return to fracking operations in January 2022. We continue to focus on improving the company's cost efficiency. As discussed during the last call, costs are expected to decline by $0.43 per Mcfe or 23% year-on-year, which significantly improves our margins and is expected to provide substantial and sustainable free cash flow generation moving forward. LOE for the quarter was up slightly, primarily due to increased water hauling costs, but the full year guidance remained consistent at $0.14 per Mcfe for 2021.

Performance to water spacing and longer laterals and are pleased with the results. Today. We are currently running one Reagan the scoop and plan to run returned attracting operations in January of 2022.

We continue to focus on improving the company's cost efficiency as discussed during the last call costs are expected to decline by 43 cents per mcse or 23% year on year was significantly improves our margins and is expected to provide substantial and sustainable free cash flow generation mood board that will be it for the quarter was up slightly primary.

Due to increased waterfall and calls.

But the full year guidance remain consistent at 14 cents per Mcf fee for 2021.

Reducing corporate overhead remains achieving initiative for the management team and we were lower recurring cash G&A guidance by $3 million compared to the midpoint of our previous God provided in August we expect to achieve top hotel DNA call. So 12 cents per Mcf fee for the full year of 2021 and maintain this run right into 2022.

Tim Cutt: Reducing corporate overhead remains a key initiative for the management team, and we have lowered recurring cash G&A guidance by $3 million compared to the midpoint of our previous guide provided in August. We expect to achieve top quartile G&A costs of $0.12 per Mcfe for the full year of 2021 and maintain this run rate into 2022. In closing, as always, we are fully committed to safely executing in the field and improving environmental, social, and governance performance. We've flattened our corporate structure, reduced overhead, and are focused on optimizing our development program to deliver the highest returns possible for our investors. I'll now turn the call over to Bill to discuss our financial results and 2021 guidance.

In closing is always we're fully committed to safely executing in the field and improving environmental social and governance performance, we flatten our corporate structure reduced overhead and are focused on optimizing our development program to deliver the highest returns possible for investors I'll now turn the call over to bill to discuss our financial resolve.

In 2021 guidance.

Thank you 10, good morning, everyone as Tim suggested in his remarks, we had another solid quarter, both operationally add to my financial perspective.

Bill Buese: Thank you, Tim, and good morning, everyone. As Tim suggested in his remarks, we had another solid quarter, both operationally and from a financial perspective. I will spend my time this morning providing a brief overview of our Q3 financial results, some details surrounding our recent credit facility amendment, our improved liquidity position, share repurchase authorization, and updates to our 2021 guidance before opening the call up for Q&A. For the three-month period ending 30 September 2021, we reported a net loss of $461 million and generated $171 million of adjusted EBITDA. Driving the net loss was a $529 million unrealized loss associated with our commodity derivatives portfolio.

I will spend my time, it's going to be providing a brief overview of our third quarter financial results. Some details surrounding a recent credit facility Amendment.

I'm proud of liquidity position share repurchase authorization and updates to our 2021 guidance before opening a call up for Q&A.

For the three month period, ending September 30th 2021 reported a net loss of $461 million and generated 171 million of adjusted EBITDA driving the net loss as a $529 million unrealized loss associated with a commodity derivatives portfolio Ned.

Bill Buese: Net cash provided by operating activities totaled $126 million during the quarter, and we generated free cash flow of $70 million for the same period. To ensure our ability to fund our capital program and generate free cash flow going forward, we continue to enter into commodity derivative contracts during the quarter. For the remaining three months of 2021, we currently hold natural gas swap and collar contracts totaling approximately 800 million cubic feet per day with an average floor price of $2.65 per Mcf.

Bill Buese: Net cash provided by operating activities totaled $126 million during the quarter, and we generated free cash flow of $70 million for the same period. To ensure our ability to fund our capital program and generate free cash flow going forward, we continue to enter into commodity derivative contracts during the quarter. For the remaining three months of 2021, we currently hold natural gas swap and collar contracts totaling approximately 800 million cu ft per day with an average floor price of $2.65 per Mcf.

Net cash provided by operating activities totaled $126 million during the quarter and we generated free cash flow of $70 million for the same period.

To ensure our ability to fund our capital program and generate free cash flow going forward, we continued to enter into commodity derivative contracts during the quarter for the remaining three months of 21, we currently hold natural gas swapping caller contracts totaling approximately 800 million cubic feet per day with an average price of $2.65 per Mcf.

We also have natural gas swapping caller contracts totaling approximately 550 million cubic feet per day at an average for price of $2.66 for 2022.

Bill Buese: We also have natural gas swap and collar contracts totaling approximately 550 million cubic feet per day at an average floor price of $2.66 for 2022, and contracts totaling approximately 65 million cubic feet per day at an average floor price of $3.39 per Mcf for 2023. Please see our Form 10-Q for additional details on our derivative portfolio. Turning to our balance sheet, at the end of the third quarter, total assets were approximately $2.1 billion, while total gross debt was approximately $750 million, consisting of $35 million outstanding under our revolver, $165 million outstanding under our term loan, and $550 million of outstanding senior notes.

Bill Buese: We also have natural gas swap and collar contracts totaling approximately 550 million cu ft per day at an average floor price of $2.66 for 2022, and contracts totaling approximately 65 million cu ft per day at an average floor price of $3.39 per Mcf for 2023. Please see our Form 10-Q for additional details on our derivative portfolio. Turning to our balance sheet, at the end of the Q3, total assets were approximately $2.1 billion, while total gross debt was approximately $750 million, consisting of $35 million outstanding under our revolver, $165 million outstanding under our term loan, and $550 million of outstanding senior notes.

And contracts.

Totaling approximately 65 million cubic feet per day at an average floor price of $3.39 per Mcf for 2023.

Please see our form thank you for additional details on our derivatives portfolio.

Turning to our balance sheet at the end of the third quarter total assets were approximately $2.1 billion. While total growth that was approximately $750 million consisting of 35 million outstanding under a revolver 165 million outstanding under our term loan and $550 million of outstanding Senior notes. We also have a 4 million dollar.

Bill Buese: We also had $4 million of cash and $115 million of letters of credit outstanding at the end of the quarter. On the liquidity front, we exited Q3 with approximately $228 million of total liquidity, made up of the $4 million of cash and approximately $224 million of borrowing capacity under our facility. On 14 October, we announced a comprehensive amendment and restatement of our credit facility. We believe that the amendment will provide the necessary financial flexibility we need to execute our ongoing business plan. It also accelerated our ability to return capital to shareholders, as evidenced by our recently announced repurchase program.

Bill Buese: We also had $4 million of cash and $115 million of letters of credit outstanding at the end of the quarter. On the liquidity front, we exited Q3 with approximately $228 million of total liquidity, made up of the $4 million of cash and approximately $224 million of borrowing capacity under our facility. On 14 October 2021, we announced a comprehensive amendment and restatement of our credit facility. We believe that the amendment will provide the necessary financial flexibility we need to execute our ongoing business plan. It also accelerated our ability to return capital to shareholders, as evidenced by our recently announced repurchase program.

A cash and $150 million of letters of credit outstanding at the end of the quarter.

On the liquidity front, we exited the third quarter with approximately 228 million a total liquidity made up of the flock $4 million of cash and approximately 224 million a bonding capacity under facility.

On October 14th we announced a comprehensive amendment and restatement of our credit facility we.

We believe that the amendment provide the necessary financial flexibility, we need to execute an ongoing business plan. It also accelerated our ability to return capital to shareholders as evidenced by a recently announced repurchase program.

The amendment provides for among other things and $850 million borrowing base, a $120 million increase in aggregate elected lender commitments from $5 million to $700 million. The repayment of the term loan under the exit facility the elimination of the $40 million availability blocker and immaturity extension do October 2020.

Bill Buese: The amendment provides for, among other things, an $850 million borrowing base, a $120 million increase in aggregate elected lender commitments from $580 million to $700 million, the repayment of the term loan under the exit facility, the elimination of the $40 million availability blocker, and a maturity extension to October 2025. The amendment reduces the applicable rate for borrowings under the facility by 125 basis points through the elimination of the 100 basis point LIBOR floor and by decreasing the price grade by 25 basis points at each level of utilization.

Bill Buese: The amendment provides for, among other things, an $850 million borrowing base, a $120 million increase in aggregate elected lender commitments from $580 to 700 million, the repayment of the term loan under the exit facility, the elimination of the $40 million availability blocker, and a maturity extension to October 2025. The amendment reduces the applicable rate for borrowings under the facility by 125 basis points through the elimination of the 100 basis point LIBOR floor and by decreasing the price grade by 25 basis points at each level of utilization.

Five.

The amendment reduces the applicable right for borrowings under the facility by 125 basis points through the elimination of the hundred basis point LIBOR floor and by decreasing the price grade by 25 basis points at each level of utilization.

Bill Buese: The new agreement requires the company to maintain, as of the last day of each quarter, a net funded leverage ratio of less than or equal to 3.25 times and a current ratio of greater than or equal to 1 time. While there are other modifications to the agreement, this should give you a good feel for some of the key items addressed. Overall, we think the amendment was an extremely positive outcome for the company. Pro forma for the credit facility amendment, our liquidity at 30 September increased by $160 million to approximately $388 million, comprised of the $4.5 million of cash and $384 million of available borrowing capacity under the new credit facility.

Bill Buese: The new agreement requires the company to maintain, as of the last day of each quarter, a net funded leverage ratio of less than or equal to 3.25x and a current ratio of greater than or equal to 1x. While there are other modifications to the agreement, this should give you a good feel for some of the key items addressed. Overall, we think the amendment was an extremely positive outcome for the company. Pro forma for the credit facility amendment, our liquidity at 30 September 2021 increased by $160 million to approximately $388 million, comprised of the $4.5 million of cash and $384 million of available borrowing capacity under the new credit facility.

The new agreement requires the company to maintain as of the last day of each quarter and net funded leverage ratio of less than or equal to 3.25 times in a current ratio of greater than or equal to one time.

While there are other modifications to the agreement they should give you a good feel for some of the key items addressed.

Overall, we think the amendment was an extremely positive outcome for the company.

Pro forma for the credit facility Amendment, a liquidity at September 30th increased by $160 million to approximately $388 million comprised of the four by 5 million of cash and $384 million are available borrowing capacity under the new credit facility.

As announced in yesterday's released the board authorized the repurchase of up to $100 million of the company's outstanding shares of common stock the authorization to Dallas through December 31, 2022.

Bill Buese: As announced in yesterday's release, the board authorized the repurchase of up to $100 million of the company's outstanding shares of common stock. The authorization is valid through December 31, 2022. The timing and amount of any share repurchases will be subject to available liquidity, market conditions, credit agreement restrictions, applicable legal requirements, and other factors. We intend to utilize the repurchase program opportunistically using available funds while maintaining sufficient liquidity to execute our capital development program and to pay down debt. We believe this share repurchase program, which if executed at today's share price, would represent over 5% of our outstanding common shares, is a meaningful first step in our commitment to return capital to shareholders.

Bill Buese: As announced in yesterday's release, the board authorized the repurchase of up to $100 million of the company's outstanding shares of common stock. The authorization is valid through 31 December 2022. The timing and amount of any share repurchases will be subject to available liquidity, market conditions, credit agreement restrictions, applicable legal requirements, and other factors. We intend to utilize the repurchase program opportunistically using available funds while maintaining sufficient liquidity to execute our capital development program and to pay down debt. We believe this share repurchase program, which if executed at today's share price, would represent over 5% of our outstanding common shares, is a meaningful first step in our commitment to return capital to shareholders.

The timing and amount of any share repurchases will be subject to available liquidity Margaret conditions credit agreement restrictions applicable legal requirements and other factors, we intend to utilize the repurchase program opportunistically using available thoughts, while maintaining sufficient liquidity to execute our capital development program and to pay down debt.

We believe this Jerry purchase program, which is executed it today surprise would represent over 5% of our outstanding common shares is a meaningful first step in our commitment to return.

Capital to shareholders. The company will continue to evaluate all options, including potentially increasing the size of the share repurchase program and instituting a common share dividend program in future quarters, any additional initiatives will be market and liquidity driven and largely governed by our new credit facility covenants.

Bill Buese: The company will continue to evaluate all options, including potentially increasing the size of the share repurchase program and instituting a common share dividend program in future quarters.

Bill Buese: Any additional initiatives will be market and liquidity driven and largely governed by our new credit facility covenants. Moving on to guidance. We narrowed our 2021 total production guidance to 980 to 1,000 million cubic feet equivalent per day. Our 2021 guidance for LOE and GP&T expense remained unchanged at 13 to 15 cents per Mcfe and 92 to 96 per Mcfe respectively. Our 2021 guidance for recurring G&A expense was lowered to a range of $42 to 44 million, the midpoint of which is 17% lower compared to 2020 and is in line with top quartile performance at 12 cents per Mcfe.

Bill Buese: Any additional initiatives will be market and liquidity driven and largely governed by our new credit facility covenants. Moving on to guidance. We narrowed our 2021 total production guidance to 980 to 1,000 million cu ft equivalent per day. Our 2021 guidance for LOE and GP&T expense remained unchanged at $0.13 to 0.15 per Mcfe and $0.92 to 0.96 per Mcfe respectively. Our 2021 guidance for recurring G&A expense was lowered to a range of $42 to 44 million, the midpoint of which is 17% lower compared to 2020 and is in line with top quartile performance at $0.12 per Mcfe.

Moving on to guidance, we note or 2021 total production guidance to 982 1000 million cubic feet equivalent per day.

2021 guidance for L. O N G P and T expense remained unchanged at 13 to 15 cents per Mcf and 92 to 96 Grand Csce, respectively.

Or 2021 guidance for recurring G&A expense was lowered to a range of $42 million to $44 million. The mid point of which is 17% lower compared to 2020 and is in line with top quartile performance at 12 cents per mcse.

Excluding acquisition and divestiture activity 2021 guidance for capital investment remain unchanged at 292 $310 million with approximately $20 million of capital associated with land in leasehold activities.

Bill Buese: Excluding acquisition and divestiture activity, our 2021 guidance for capital investment remained unchanged at $290 to 310 million, with approximately $20 million of capital associated with land and leasehold activities. A little over two-thirds of the 2021 capital budget will be allocated to the Utica. Finally, we increased our full year 2021 free cash flow guidance by $55 million at the midpoint to a range of $345 to 365 million at current strip pricing. Please see our earnings release for a few additional details on our 2021 guidance. In summary, we believe that our efficient asset base continues to support a low investment rate and the potential for strong return of capital to shareholders.

Bill Buese: Excluding acquisition and divestiture activity, our 2021 guidance for capital investment remained unchanged at $290 to 310 million, with approximately $20 million of capital associated with land and leasehold activities. A little over 2/3 of the 2021 capital budget will be allocated to the Utica. Finally, we increased our full year 2021 free cash flow guidance by $55 million at the midpoint to a range of $345 to 365 million at current strip pricing. Please see our earnings release for a few additional details on our 2021 guidance. In summary, we believe that our efficient asset base continues to support a low investment rate and the potential for strong return of capital to shareholders.

A little over two thirds of the 2021 capital budget will be allocated to the Utica.

Finally, we increased our full year 2021 free cash flow guidance by $55 million at the midpoint to arrange a $345 million to $365 million at current strip pricing. Please see our earnings release for a few additional details on our 2021 guidance.

In summary, we believe that are efficient asset base continues to support a low investment rate and the potential for strong return on capital to shareholders are 2021 free cash flow yelled remains the best in our peer group and we believe that our ability to generate significant free cash flow going forward is still largely under appreciated or.

Bill Buese: Our 2021 free cash flow yield remains the best in our peer group, and we believe that our ability to generate significant free cash flow going forward is still largely underappreciated. Our business plan remains committed to developing our assets in a disciplined manner, investing approximately $300 million of capital to deliver roughly 1 Bcf per day of equivalent production, while targeting annual free cash flow of more than $350 million at a $3.50 natural gas price. Finally, while liquidity has improved largely due to the amended credit facility, we expect it to get even better as we execute our business plan. As stated last quarter, we believe that our ability to deliver peer-leading free cash flow provides a unique opportunity for investors.

Our business line remained committed to developing our assets in a disciplined manner investing approximately $300 million of capital to deliver roughly 1 billion cubic feet per day or equivalent production, while targeting annual free cash flow at more than $350 million at a $3.50 natural gas price.

Finally, while liquidity has improved largely due to the amended credit facility, we expect it to get even better as we execute our business plan.

As stated last quarter, we believe that our ability to deliver purely eating free cash flow provides a unique opportunity for investors, but we still plan to prioritize debt repayment in the near term. We are excited by our recently announced share repurchase program and we are eager to share our plans for returning additional capital to shareholders and future quarters.

Bill Buese: While we still plan to prioritize debt repayment in the near term, we are excited by our recently announced share repurchase program, and we are eager to share our plans for returning additional capital to shareholders in future quarters. With that, we'll now open the call up for questions.

With that we will now open a call up for questions.

Thank you at this time, we will be conducting a question and answer session.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from the line of Neal Dingman with Truist. You may proceed with your question.

He would like to ask a question. Please press star one on your telephone keypad.

Confirmation so indicate that you're lying as in the question queue. You May press dark too if you would like to remove your questions from the queue.

Which is confusing speaker equipment, it may be necessary to pick up your handset before pressing the snarky.

One moment, please while we pull for questions.

Our first question comes from the line of Neil Dingman with Truest you May proceed with your question.

Okay.

Neal Dingman: Good morning, all. Tim Cutt, Bill Buese, I appreciate all the early comments. I guess mine is kind of a blended question. When you talk and think about both your growth and more particularly maybe the shareholder return, I guess that's more important these days for most investors. You know, when you think about optically, you know, the maybe the most efficient way to run, you know, both when you think about the Utica and, of course, over the in the MidCon. You know, is the plan to run one rig in each? Or I'm just wondering, I guess my question would be, how do you balance maybe running the most efficient plan, you know, again, activity-wise with that, which is the most efficient, you know, sort of shareholder return-wise?

Neal Dingmann: Good morning, all. Tim Cutt, Bill Buese, I appreciate all the early comments. I guess mine is kind of a blended question. When you talk and think about both your growth and more particularly maybe the shareholder return, I guess that's more important these days for most investors. You know, when you think about optically, you know, the maybe the most efficient way to run, you know, both when you think about the Utica and, of course, over the in the MidCon. You know, is the plan to run one rig in each? Or I'm just wondering, I guess my question would be, how do you balance maybe running the most efficient plan, you know, again, activity-wise with that, which is the most efficient, you know, sort of shareholder return-wise?

Came out early comments I guess mine is kind of a question when you're talking to come out.

Your growth and more particularly maybe the signal the return I get that.

These days for most of the Masters.

When you think about it off completely.

Maybe the most efficient way to run.

When you think about the the Utica and of course over that.

Mm bye.

The plan to run one Regan Eater I'm just wondering I guess my question would be how do you balance maybe running the most efficient plan.

Indian activity mine with that which is the most efficient.

The return waters.

Yeah now that's a perfect question I touched on it during the during my prepared comments.

Tim Cutt: Yeah, Neal, that's a perfect question. I touched on it during my prepared comments. You know, right now we have a program that was designed at a very low gas price, and it was designed to maximize cash flow and ultimately return to the shareholders. With price improvement, I think it opens up opportunities to look at a more efficient development program. For instance, in both the Utica and the SCOOP, we do stop drilling for periods of time, start drilling, start and stop fracking, and that can be quite inefficient. When you're in a market like we're in today, where supply costs are going up, services are hard to acquire, you know, you build risk by doing that. We're looking at what's the opportunity to potentially run a more consistent program.

Right now we have a program that was designed at a very low gas price and it was designed to maximize cash flow and ultimately return to the shareholders.

With price improvement I think it opens up opportunities to look at a more efficient development program for instance in both the Utica in the Scoop, we do stop drilling compares time start drooling, starting to stop ranting and that is that can be quite inefficient and when you're in the market like her in today worse like costs are going up.

Services are hard to require.

You build risk by doing that so we're looking at once the opportunity to potentially run a more consistent program. That's part of the reason we didn't put the formula guidance, we're going to talk about those forward, but obviously from an operating standpoint or preference was to be more consistent. So I think that's a that's a great question.

Tim Cutt: That's part of the reason we didn't put the formal guidance out. We're gonna talk about that as a board. But, you know, obviously from an operating standpoint, our preference is to be more consistent. I think that's a great question.

Neal Dingman: Then just really going right where I wanted to go, just on the follow-up, you know, now with the shareholder repurchase authorization, I mean, how do you sort of blend that in thinking about that? You know, maybe question even for Bill. I mean, it how do you think about that versus the dividend?

And then just really.

Neal Dingmann: Then just really going right where I wanted to go, just on the follow-up, you know, now with the shareholder repurchase authorization, I mean, how do you sort of blend that in thinking about that? You know, maybe question even for Bill. I mean, it how do you think about that vs. The dividend?

I wanted to go just on the follow up you know with the.

Will the repurchase authorization.

How do you sort of blend not even thinking about that made me question even for billing.

How do you think about bad verses.

<unk>.

Yeah, I think I'll take it first I mean, the good news is go into a more consistent program does not cost a lot is probably a 20% to 25% increase in the program and.

Tim Cutt: Yeah, I think, Neal, I'll take it first. I mean, the good news is, you know, going to a more consistent program does not cost a lot. It's probably a 20 to 25% increase in the program. And so you know, in the Utica, for instance, it's probably three months. You fill that in, you stay on the same fracking schedule, you frack another pad. It's not like you're doubling up at all. I think you can increase and still generate you know, substantial cash flow. If you think about right now, you know, $350 million is the pre-$50 price. That number, obviously if prices stay higher, will go higher.

Tim Cutt: Yeah, I think, Neal, I'll take it first. I mean, the good news is, you know, going to a more consistent program does not cost a lot. It's probably a 20% to 25% increase in the program and so you know, in the Utica, for instance, it's probably three months. You fill that in, you stay on the same fracking schedule, you frack another pad. It's not like you're doubling up at all. I think you can increase and still generate you know, substantial cash flow. If you think about right now, you know, $350 million is the pretty attractive price. That number, obviously if prices stay higher, will go higher.

And so you know.

In the Utica for instance would probably three months you fill that in you stay on the same tracking schedule you for like another pad, it's not like you're doubling doubling up at all so I think you can you can increase and still generate.

Substantial cash flow and if you think about right now three fifth kind of <unk>.

$350 million 50 price that number obviously it for us to stay hard will go higher you still have a lot of his room for dividend shareholder buyback Anthony and that was just extremely important to take us down to at least one times levered. So.

Tim Cutt: You still have a lot of headroom for dividend, shareholder buyback, and paying down debt, which is extremely important to take us down to at least 1x levered. I think there's room for all of that. We just wanna make sure we're very measured in our decision making, and we don't move to that too quickly. I do think it's something, it could be, you know, a positive thing. Also by doing that, although we wouldn't see much of an increase in 2022 on production.

Tim Cutt: You still have a lot of headroom for dividend, shareholder buyback, and paying down debt, which is extremely important to take us down to at least one time levered. I think there's room for all of that. We just wanna make sure we're very measured in our decision making, and we don't move to that too quickly. I do think it's something, it could be, you know, a positive thing. Also by doing that, although we wouldn't see much of an increase in 2022 on production.

I think there's room for all of that we just want to make sure. We're very measured in our decision, making and we don't move to that too quickly, but I do think it's something it could be.

Positive thing and also by doing that although we wouldn't say much of an increase of 2022 production, we could say more.

Bill Buese: We could see a more substantial increase in production in 2023 if prices sustain. I think there's plenty of room to consider this without worrying about, you know, do we have to do one or the other. Anything to add, Bill?

Tim Cutt: We could see a more substantial increase in production in 2023 if prices sustain. I think there's plenty of room to consider this without worrying about, you know, do we have to do one or the other. Anything to add, Bill?

I shall increase in production and 23 approaches things. So I think we I think there's plenty of room to consider this without worrying about do we have to do one or the other anything so yeah I think that's.

Bill Buese: Yeah. No, Neal, I think that's exactly right. I mean, we're gonna take a measured approach. There's room. These aren't mutually exclusive. We can certainly, you know, again, we just did this credit facility amendment two weeks ago, basically it closed. So, you know, the board and management have been in active discussions about capital return, and we'll continue to have those discussions, Neal. You know, we can certainly do more than one thing, and we plan on it in the future.

That's exactly right I mean, we're gonna take a measured approach and there's room. These aren't mutually exclusive we can certainly again, we just did this credit facility amendment two weeks ago basically closed so.

The board and management have been enacted discussions about capital return and will continue to have those discussions Neil and.

Can certainly do more than one thing and we know we plan on it in the future.

Neal Dingman: No, love the optionality. Thanks guys so much.

Neal Dingmann: No, love the optionality. Thanks guys so much.

Thanks, so much.

Alright, thank you.

Tim Cutt: All right. Thank you.

Our next question comes from the line of Zac Parhat with J P. Morgan you May proceed with your question.

Operator: Our next question comes from the line of Zach Parham with JP Morgan. You may proceed with your question.

Operator: Our next question comes from the line of Zach Parham with JPMorgan. You may proceed with your question.

Yes. Thanks for taking my question I guess first off on the Angelo pad, you're you're well Cos came out a bit below that you could could target could you talk a little bit about how you see well cost dream Big in 2022 give it both cost inflation pressures, but also positive trends on the upside including.

Zach Parham: Hey, guys. Thanks for taking my question. I guess first off, on the Angelo pad, your well cost came in a bit below the Utica target. Could you talk a little bit about, you know, how you see well costs trending in 2022, given both cost inflation pressures, but also positive trends on the op side, including simulfrac and doing things more efficiently?

Zach Parham: Hey, guys. Thanks for taking my question. I guess first off, on the Angelo Pad, your well cost came in a bit below the Utica target. Could you talk a little bit about, you know, how you see well costs trending in 2022, given both cost inflation pressures, but also positive trends on the op side, including simulfrac and doing things more efficiently?

Sample track and and doing things more efficiently.

Yeah, I think right now they're trying to offsetting each other.

Tim Cutt: Yeah. I think right now they're kind of offsetting each other. You know, we're seeing. Obviously, everybody has different numbers they're talking about for inflation, but on any particular service or commodity, you're seeing 0% to 40% change. So on a blended basis, it may be 10% to 15% pressure. So we're trying to basically, you know, hold our own and offset. I do think there are opportunities below the $7.50, but those things could get offset by inflationary effects. You know, we don't have a big water disposal system, for instance, in the Utica. So if we have big pads and then we're not fracking next door to use that water, those costs go up. So it can be a little bit lumpy, and that's why we're considering going to more consistent programs.

Saying, obviously, everybody has different numbers, they're talking about for inflation, but on any particular service or commodity in your savings or to 40% chain. So on a blended basis. It maybe 10% to 15% pressure. So we're trying to basically hold her own in all set.

I do think there are opportunities below the 750, but those things could get I'll stick by inflationary effects, we don't have a big water disposal system for instance in the Utica. So if we have big pads and we're not for acting next door to use that water those costs go up so it can be a little bit lumpy and that's why we're considering going.

Into more consistent programs. So we are.

Tim Cutt: We are, you know, fracking more while we're, you know, producing these new pads to try and have a better place for disposal of water through the fracking operation. I don't wanna, you know, get ahead of our skis here as far as predicting where we'll be next year, but I do think the range around 300, if we stay with the same program, is good because we are gonna be able to offset some of those inflationary effects. I wouldn't be prepared yet to kind of quote what we're thinking we'll see on a dollar per foot basis yet.

Fracking more world wall or.

Reducing these new paths to try and have a better place for the disposal of the waters through the fracking operation. So.

I don't want to get ahead of ourselves here as far as predicting where will be next year, but I do think the the range around 300, if we stay with the same program is good because we are going to be able to offset some of those inflationary folks, but I wouldn't I wouldn't be prepared yet.

To kind of quote what were what were thinking we'll see you on a dollar per foot basis yet.

Zach Parham: Thanks for that color. Just one follow-up from me. You know, one of your natural gas-focused peers recently announced restructuring some of their hedge book. You know, is this something Gulfport could potentially look at? You know, something to do on some of your longer-dated hedges that were put in place in a very different gas price market? You know, maybe if you could talk about, if so, what that potentially could look like.

Thanks for that color just one follow up to me what is your natural gas focus Spears recently announced restructuring some of their hedge book.

Is this something Gulf War could particularly look at.

Something to do on some of your longer dated hedges that were put in place in a very different gas price market.

You know, maybe if you could talk about so what that potentially could look like.

They'll take the.

Tim Cutt: Yeah. Bill, take that.

Bill Buese: Yeah. Definitely, you know, Zach, you know, that was another reason we did the credit facility. We needed to, you know, get some more counterparties to allow us to work on some of that. It's still a bit early to tell you exactly how that's gonna play out, but it's something we're focused on, specifically the calls in 2023. Again, next quarter we should have a better update on that. But it's definitely something we are focused on. That again, part of the reason for the credit facility amendment was to allow us to address some of that.

So yeah definitely.

That was another reason we did we did the credit facility, we needed to get some more.

Parties to allow us to work on some of that I was told that early to take exactly how that's going to play out, but it's something we're focused on specifically the calls and 23.

And again that the next quarter, we should have a better update on that but but it's definitely something we are focused on now.

Again part of the reason for the credit credit facility Amendment was to allow us to address some of that.

Thanks, you guys. That's all for me.

Zach Parham: Thanks, guys. That's all from me.

Alright, thank you.

Tim Cutt: All right. Thank you.

Our next question comes from the line of correct on that.

Operator: Our next question comes from the line of Tarek Hamid with JP Morgan. You may proceed with your question.

Operator: Our next question comes from the line of Tarek Hamid with JPMorgan. You may proceed with your question.

Oregon You May proceed with your question.

Good morning, and thanks for taking my question.

Tarek Hamid: Good morning, and thanks for taking my question. You, you've effectively kept guidance on volume and capital some sort of flat go-forward plan at that 1 Bcf and $300 million of capital since emergence. I guess, you know, and this sort of follows on Neal and Zach's questions, but given the productivity of the Angelo pad and just the broader drilling program so far this year, do you think there's upside to volume to 2022? I guess, how do you think about your productivity assumptions on a go-forward basis?

Cats guidance online and capital sort of flat for that go for plant at one P. C S at $300 million capital since emergence.

I guess you know in this sort of falls on Neil and tax questions, but given the productivity of the agile empty Angel pad and just the broader drilling program. So far this year do you think there's upside two volumes 22, I guess, how do you think about.

<unk> your productivity assumptions on a go forward basis.

Yeah, I think we've looked obviously very closest.

Tim Cutt: Yeah. I think, you know, we've looked obviously very closely at that, and I think the 1 Bcf is probably still a good number. You know, we had planned for these kind of rates. Everything we did in this year is performing about like it was expected to. Our basic line is, you know, doing about what we expect it to do. You know, we don't have much ability to accelerate things. The permitting process in Utica is a pretty extended process, and so we don't have a lot of flexibility to bring much forward. I do think we could, you know, bring a pad earlier in the year, but that production again comes on late in the year. I don't think you should expect much upside.

And I think the <unk> is price to a good number.

We.

We have planned for these kind of rates.

Everything we did in this year is performing about like it was expected to our basic line is doing about what we expected to do so we're not we don't have much ability to accelerate things the permitting prostitutes because of pretty extended process and so we don't have a lot of flexibility to bring much forward I do think we could bring them.

Had earlier in the year, but that production again comes on lately year. So I don't think you should expect much.

Much upside I think the lever we have is kind of how we build towards 2023, I think we have much more flexibility in how we how we set the stage for that but I think most of the plans, we looked at ste plus or minus around that Bcf.

Tim Cutt: I think the lever we have is kind of how we build towards 2023. I think we have much more flexibility on how we set the stage for that. I think most of the plans we looked at stay ± around that Bcf.

Oh I appreciate it.

Tarek Hamid: No, I appreciate it. Just one follow-up from me, just on the timing on the execution of the share repurchase program. How quick do you expect to just start to execute on the program? I think as you point out, you know, pretty successfully in the slide deck, you're gonna generate a ton of cash in 2022, and you could be out of prepayable debt period in just a quarter or two. I guess, how do you think about timing to start chipping away on that share purchases?

Tarek Hamid: No, I appreciate it. Just one follow-up from me, just on the timing on the execution of the share repurchase program. [inaudible] How quick do you expect to just start to execute on the program? I think as you point out, you know, pretty successfully in the slide deck, you're gonna generate a ton of cash in 2022, and you could be out of prepayable debt period in just a quarter or two. I guess, how do you think about timing to start chipping away on that share purchases?

Just one follow up for me just on the timing on the execution of the share repurchase program.

You expect to start to execute on the program I think as you point out uhm.

Successfully in the side deck of your journey a ton of cash in 22, and you could be out of Prepayable that period, and just a quarter or two so I guess, how do you think about timing to start chipping away on that your purchases.

Yeah. That's a good question I mean, that's obviously not in our advantage of sure exactly what will be on the market but.

Bill Buese: Yeah, that's a good question. I mean, again, that's obviously not in our advantage to share exactly what will be on the market. You know, it's something we'll be doing opportunistically. You know, we believe our shares are undervalued, so it's a good investment to do so. We're not gonna, you know, tip our hand necessarily. It's something that we're definitely looking at, and we're excited about.

Someone will be doing opportunistically.

We believe our shares are undervalued. So it's it's good it's good investment to do so, but we're not going to tip, our hand necessarily but it's something that we are definitely looking at in and we're excited about.

Got it well thanks for taking my questions.

Tarek Hamid: Got it. Well, thanks for taking my questions.

Thanks.

Tim Cutt: All right. Thanks.

Our next question comes in the line of Stephen <unk> with Keybanc. You May proceed with your question.

Operator: Our next question comes from the line of Steve Deschenes with KeyBanc. You may proceed with your question.

Operator: Our next question comes from the line of Steven Dechert with KeyBanc. You may proceed with your question.

Hey, guys just one for me to just wanted to see it.

Steve Deschenes: Hey guys, just one for me. Just wanted to see if you guys are giving any consideration to raising gas production this winter with the high prices right now. Thanks.

Steven Dechert: Hey guys, just one for me. Just wanted to see if you guys are giving any consideration to raising gas production this winter with the high prices right now. Thanks.

You guys have given any consideration to you raise the gas production this winter with it that high prices right now thanks.

Yeah, we don't have a lot of opportunity to them to do that if you are looking to slander carefully and you look at the Shannon Andrew shut wells those wells have been on <unk> for about eight months about a month ago. We did turn those wells up in random for awhile. Some of them I think stayed up a few of them went down back we're just trying to test.

Tim Cutt: Yeah. You know, we don't have a lot of opportunity to do that. If you look in the slide deck carefully, and you look at the Shannon Hendershot wells, those are the wells that have been on plateau for about eight months. About a month ago, we did turn those wells up and ran them for a while. Some of them, I think, stayed up. A few of them we dialed back. We're just trying to test what we can do without bringing basically fracs out of the formation, creating operational issues for us. We think we're producing this. You know, our target rates on the Angelo pads were 235. We're pushing that a bit right now. We're at 250. Obviously, with some downtime, the 235 target is what we'd stick with.

Bill Buese: Yeah. You know, we don't have a lot of opportunity to do that. If you look in the slide deck carefully, and you look at the Shannon Hendershot wells, those are the wells that have been on plateau for about eight months. About a month ago, we did turn those wells up and ran them for a while. Some of them, I think, stayed up. A few of them we dialed back. We're just trying to test what we can do without bringing basically fracs out of the formation, creating operational issues for us. We think we're producing this. You know, our target rates on the Angelo pads were 235. We're pushing that a bit right now. We're at 250. Obviously, with some downtime, the 235 target is what we'd stick with.

What we can do without bringing.

Basically frack Santa formation, creating operational issues for us and so we think for producing news or target rates on the annual pass for 235 were pushing that a bit right. Now we're at 250, obviously with some downtime. The 235 target is what we'd stick with so I don't think you'll see a lot of what we.

Tim Cutt: I don't think you'll see a lot of that. What we have done, and you see it in that base decline in the decline of our new wells in the SCOOP. You know, we've been doing compression projects. We're doing a whole lot of projects on the base to get that decline flatter. We did move as fast as we possibly could to get the Angelo pad on. Came on a bit early, but I wouldn't expect that we have unlimited ability to kind of turn things up. I mean, we're gonna do what we can do within kind of confines of the wells we have and making sure we continue to produce those safely. You know, it's great having big wells. You don't wanna lose one of those.

Bill Buese: I don't think you'll see a lot of that. What we have done, and you see it in that base decline in the decline of our new wells in the SCOOP. You know, we've been doing compression projects. We're doing a whole lot of projects on the base to get that decline flatter. We did move as fast as we possibly could to get the Angelo Pad on. Came on a bit early, but I wouldn't expect that we have unlimited ability to kind of turn things up. I mean, we're gonna do what we can do within kind of confines of the wells we have and making sure we continue to produce those safely. You know, it's great having big wells. You don't wanna lose one of those.

Have done and you see it in.

The basic decline in the decline of our new wells in the in the school, we've been doing compression projects, we're doing a whole other projects on the base to get that declined flatter we.

We didn't move as fast as we possibly could to get the Angela Pat on came on a bit early.

But I wouldn't expect and we have unlimited ability to kind of turn things up I mean, we're gonna do what we can do within kind of confines of the of the walls, we have and making sure we continue to produce those safely.

It's great having big Wells, you don't want to lose one of those so we want to be a bit cautious on that but again, we're trying to push that out of the source of the can and take advantage of the prices and we understand the question completely.

Tim Cutt: We wanna be a bit cautious on that. Again, we're trying to push that as hard as we can and take advantage of the prices. We understand the question completely. I think, you know, the kind of guidance range we gave in the deck there is about what you should expect coming out of Q4.

Bill Buese: We wanna be a bit cautious on that. Again, we're trying to push that as hard as we can and take advantage of the prices. We understand the question completely. I think, you know, the kind of guidance range we gave in the deck there is about what you should expect coming out of Q4.

But I think the.

The kind of guidance range, we gave.

In the deck there is about what you should expect coming out of the fourth quarter.

Got it okay, great. Thanks.

Steve Deschenes: Got it. Okay, great. Thanks.

Steven Dechert: Got it. Okay, great. Thanks.

At this time, we have reached the end of the question and answer session. Now now turn the call over to Tim cut for closing remarks.

Operator: At this time, we have reached the end of the question and answer session. Now I'll turn the call over to Tim Cutt for closing remarks.

Alright, Thank you very much and thanks for calling in and asking the questions and also calling into listen we appreciate that I, mainly wanted to say once again, thanks to our organization or employees or contractors, we've actually did a lot since the beginning of this year and you have delivered against that well and we do appreciate that a lot.

Tim Cutt: All right. Thank you very much, and thanks for calling in and asking the questions and also calling in to listen. We appreciate that. I mainly wanna say once again, thanks to our organization, to our employees, our contractors. We've asked you to do a lot, since the beginning of this year, and you've delivered against that well, and we do appreciate that a lot. Again, appreciate your time today to join in. If you have any additional questions, don't hesitate to call Tommy and reach out to our investor relations team. With that concludes the call. Thank you.

Again I appreciate your time today to join in and if you have any additional questions don't hesitate to call Tommy and reach out to her investor relations team.

That concludes the call. Thank you.

[music].

Q3 2021 Gulfport Energy Corp Earnings Call

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