Gulfport Energy Corporation · NYSE:GPOR
Gulfport Energy — Investor Presentation (September 2008)
29 slides from Gulfport Energy's investor presentation, Sep 22, 2008
Slide 1: Gulfport Energy September 19, 2008 Presentation
Exhibit 99.1 Gulfport Energy September 19, 2008 Presentation
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than st
Slide 3: Gulfport Today
Gulfport Today Proved Reserves (12/31/07): 29 Million BOE Production: 2Q’08 4,886 BOED Production Mix (2Q2008): 92% Oil & NGLs 8% Gas Reserves / Production Ratio: 16 Years Enterprise Value¹: $501 Million ¹ Source: Bloomberg calculated as of the close of the market on 09/15/08 at a price of $9.72 per
Slide 4: Gulfport's Business Strategy Defined
Gulfport’s Business Strategy Defined Gulfport’s business strategy is straightforward and growth oriented: Establish an oil-focused asset portfolio with a large reserve base, apply new technologies and pursue first mover advantages in emerging plays when possible Build a financially conservative capi
Slide 5: Compelling 2Q2008 Results
Compelling 2Q2008 Results Strong 2Q2008 financial performance $25.3 million of operating cash flow 1 1 $26.1 million of EBITDA $14.9 million of net income available to common share $0.35 of earnings per fully diluted common share Exceeds 2Q’08 consensus estimates of $0.27 of fully diluted EPS by $0.
Slide 6: 2008 E&P Capital Forecast
2008 E&P Capital Forecast Bakken WCBB Grizzly & Other Hackberry Permian Core Growth Approximately $95 MM 5
Slide 7: Production Growth
Production Growth 4,485 2,693 1,724 1,679 2004 2005 2006 2007 ¹ Compound Annual Growth Rate 6
Slide 8: Operational Areas
Operational Areas Canadian Oil Sands Acreage: 127,941 Net Acres OBIP: Approx. 3 Billion Net Barrels 2008 Capital Plan: Approx. $10 MM Bakken Shale Acreage: 16,511 Net Acres 2008 Capital Plan: Approx. $10 MM Thailand Acreage: 4,000,000 Gross Acres 2005 Reserves: 3.5 Net BCF Gas Permian Basin Acreage:
Slide 9: West Cote Blanche Bay Operational Statistics
West Cote Blanche Bay Operational Statistics • Leasehold Position: 5,668 Net Acres • Proved Reserves (12/31/07) : 17.78 Million Net BOE • Production: – 2Q’08 3961 Net BOED • 2008 Capital Plan: $22 Million • 2008 Strategic Plan : • Sustain Production • Maximize Return on Capital 8
Slide 10: West Cote Blanche Bay – Operational Overview
West Cote Blanche Bay – Operational Overview • Located approximately five miles off the coast of Louisiana in a shallow water bay with water depths averaging eight to ten feet – Discovery well drilled in 1940 based on a seismic and gravitational anomaly – 3-D seismic and directional drilling techniq
Slide 11: Hackberry Operational Statistics
Hackberry Operational Statistics • Leasehold Position¹: 8,190 Net Acres • Proved Reserves (12/31/07): 4.74 Million Net BOE • Production: – 2Q’08 370 Net BOED • 2008 Capital Plan: $18 Million Lake • 2008 Strategic Plan: Calcasieu • Grow Production • Maximize Return on Capital ¹ Leasehold position inc
Slide 12: Hackberry – Operational Overview
Hackberry – Operational Overview • Located along the western shore of Lake Calcasieu, 15 miles inland from the waters of the Gulf of Mexico – Discovered in 1926 by Gulf Oil Co. and developed using 2-D seismic – Our leases at West Hackberry are located within two miles of one of the United States Dep
Slide 13: Southern Louisiana – What's New
Southern Louisiana – What’s New Production from Southern Louisiana averaged 4,336 net BOE per day for 2Q2008, an increase of 315 net BOE per day from the 1Q2008 average of 4,021 net BOE per day - July Production from Southern Louisiana averaged 4,277 net BOE per day - Production increased to an aver
Slide 14: Permian Basin Operational Statistics
Permian Basin Operational Statistics • Leasehold Position: 4,100 Net Acres • Proved Reserves (12/31/07): 6.63 Million Net BOE • Production: – 2Q’08 479 Net BOED • 2008 Capital Plan: $35 Million • 2008 Strategic Plan : • Grow production through the drill bit by actively drilling on 40-acre spacing •
Slide 15: Permian Basin – Operational Overview
Permian Basin – Operational Overview • Gulfport’s exposure to the Permian began in December 2007 with the acquisition of 4,100 net acres (50% interest in 8,200 gross acres) – The deal included 32 gross producing locations and 178 gross additional offset locations at 40-acre spacing • Located in West
Slide 16: Permian Basin – What's New
Permian Basin – What’s New As of September 15, 2008, a total of 27 gross wells had spudded on our acreage year-to-date Of these, 15 wells have been completed and 4 have reached peak production New wells are behaving as expected with a three to four month flow back to peak production after being frac
Slide 17: Bakken Shale Operational Statistics
Bakken Shale Operational Statistics • Leasehold Position: 16,511 Net Acres • Proved Reserves (12/31/07): 81,000 Net BOE • Production: – 2Q’08 71 Net BOED • 2008 Capital Plan: $10 Million • 2008 Strategic Plan : • Actively pursue new leasing opportunities • Develop acreage by participating in drillin
Slide 18: Bakken Shale – Operational Overview
Bakken Shale – Operational Overview • Located in Montana, North Dakota, South Dakota and Saskatchewan, the Bakken formation covers over 200,000 square miles of the Fault subsurface of the Williston Basin – In April 2008, the USGS released a report estimating there to be 3.0 to 4.3 billion barrels of
Slide 19: Bakken Shale – What's New
Bakken Shale – What’s New The Windsor operated Whitmore 1-6H, of which GPOR owns an approximate 16% working interest, underwent a multistage frac in late August This well is located in the Parshall field, approximately 3 to 5 miles from two EOG wells which have reported peak production rates of 3,74
Slide 20: Canadian Oil Sands Operational Statistics
Canadian Oil Sands Operational Statistics • Leasehold Position: 127,941 Net Acres • OBIP¹ (09/30/07): 3 Billion Net Bbls • 2008 Capital Plan: $10 Million • 2008 Strategic Plan : • Continue core hole drilling program to delineate acreage • Develop Algar Lake Project with the goal of first oil in 2011
Slide 21: Canadian Oil Sands – Operational Overview
Canadian Oil Sands – Operational Overview The Canadian Oil Sands rivals Saudi Arabia as the largest oil play in the world with 315 billion barrels of estimated recoverable resources - The oil sands are deposits of bitumen, a molasses-like viscous oil that will not flow unless heated or diluted with
Slide 22: Canadian Oil Sands – What's New
Canadian Oil Sands – What’s New Drilled 55 core holes during 2007-2008 winter drilling program 28 core holes at Algar Lake 12 core holes at Silvertip 10 core holes at Birchwood 5 core holes at Thickwood Hills Shot 7.5 square mile seismic survey at Algar Lake Progress continues to be made on Grizzly’
Slide 23: Thailand Operational Statistics
Thailand Operational Statistics • Leasehold Position: 4 Million¹ Gross Acres • Net Proved Reserves (1/1/05): 3.6 Net BCF of Gas 10,000 Net BBL of Oil • 2008 Strategic Plan : – Expand project, applying project cash flow to offset capital outlays – Shoot 3-D seismic survey in the fourth quarter of 200
Slide 24: Thailand – Operational Overview
Thailand – Operational Overview Through an indirect equity investment in APICO, Gulfport has leveraged significant exposure to a natural gas play of immense magnitude in northeast Thailand Third party engineers Gaffney Cline credit wells producing in the Phu Horm gas field with approximately ½ TCF¹
Slide 25: Gulfport Financial Highlights
Gulfport Financial Highlights Enterprise value of $501.2¹ million $414.26² million equity value, $89.1³ million debt, $2.2³ million working capital deficit Expect strong performance in 2008 EBITDA estimated to be from $110 million to $120 million for YE2008 Compelling statistics 4 4.7x EBITDA and 8.
Slide 26: Fixed Price Contracts to Secure Cash Flow
Fixed Price Contracts to Secure Cash Flow Gulfport Energy Corporation Gulfport Energy Corporation Fixed Price Contracts Fixed Price Contracts 2H2008 2009 Weighted Average Weighted Average Month Barrels Per Day Month Barrels Per Day Daily Price Daily Price July-08 $85.89 3500 January-09 $89.06 3000 A
Slide 27: Expanding Cash Margins
Expanding Cash Margins 80.00 1H2008 Averages Net cash margin (per boe) Interest expense 70.00 Realized G&A Price Production Tax $77.37 60.00 Lease Operating Expense 1H2008 Net 50.00 Cash Margin: $53.47 40.00 30.00 Net Interest Exp: $1.43 20.00 G&A: $4.06 Production Taxes: $8.56 10.00 LOE: $9.85 - 20
Slide 28: Compelling Portfolio
Compelling Portfolio Low-risk cash generation through developmental drilling in S. Louisiana and now the Permian Basin Activity commencing in the Bakken, one of North America’s hottest plays Canadian Oil Sands investment adds substantial upside value Conservative financial structure with hedges in p
Slide 29: Corporate Information
Corporate Information Common Stock – NASDAQ: GPOR Gulfport Energy Headquarters: 14313 N. May Ave, Suite 100 Contact: Oklahoma City, OK 73134 Michael G. Moore Vice President & Chief Financial Officer (405) 848-8807 www.gulfportenergy.com Paul K. Heerwagen Investor Relations (405) 242-4888 28
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