Gulfport Energy Corporation (NYSE:GPOR) Q4 2022 Earnings Call Transcript

Neal Dingmann: And if I could just add one last one just on that macro focus you mentioned, Bill, you mentioned the hedges a little bit. Would into day’s market are you adding more hedges or would you wait until kind of see what prices do. I’m just wanting me the future curve still looks quite positive. So just I was wondering on your earlier comments, how much you are adding – are you – would you add in 2024, are you adding 2024, would you add in 2025, just your thoughts on hedging here? Thanks.

William Buese: Yes. Good question. So the answer is. Yes, we are going to continue to layer on hedges, that is our philosophy as a company, we will continue to do that. We put some measures on the 24 as recently as last week. So we will continue to do that and we will as I mentioned in my comments, we started doing 23 basis, you can expect us to start looking at 24 basis as well going forward. So we take a methodical approach to hedging and we will continue to do it, as opportunities present themselves.

Neal Dingmann: Glad you are doing it. Thanks guys.

John Reinhart: Thanks Neal.

Operator: Thank you. Our next question will be from Tim Rezvan with KeyBanc Capital Markets. Please proceed with your question.

Tim Rezvan: Good morning, everybody. Thank you for taking my call. I would like to start with digging into Slide 11, a little bit on your 2023 development plan. Can you talk about why you chose the spot you bid in Southeast Belmont for that Marcellus pad?

John Reinhart: Yes. Good morning Tim and thanks for the question. As we look at our leasehold around the area, I think what’s attractive to that particularly is, we have an existing pad out there with infrastructure lease roads that we wanted to take advantage of. There is also right across river a lot of activity in the Marcellus that looks very attractive to us. So whenever you step back and take a look at, where the delineation test is, it gives us a lot of assurances that we are in a good spot here for a test. We can actually drill to the Southeast and Northwest to get a better handle on liquid’s content to see how prolific this side of the river is. So that is basically the genesis of the location in Southeast Belmont for the test.

Tim Rezvan: Okay, I appreciate that. And then looking for the north, excuse me, in Ohio, a four well pad is planted in Western Harrison County, without knowing, where exactly the phased windows lie on this map. Is that a dry gas target, is that liquids rich and how are you thinking about liquid rich and dry gas overall in Ohio?

John Reinhart: Yes. No, that is a great question. So this is targeting as it shows for late in the year for us. So this particular window here is definitely liquids rich and wet gas. As we view at the Marcellus to me is, we are going to be drilling as liquids rich as well. The economics on these things should compete with regards to capital or we wouldn’t be prioritizing. So we feel pretty bullish about where it stands as far as ranks on the economic scale. So I think as we look at it between the mix, we have a lot of liquids rich production in the SCOOP. That is a toggle for us. We have some Western type Utica acreage that we could kind of toggle for some liquids rich. We have dry gas that is solid in the core of the Utica from Jefferson and Belmont down in a row.

And now we are introducing a test in the Marcellus, which gives us more optionality. So the more triggers we have to pull and the more toggles we have, for a variety of commodity type environment, depending on where prices go. It is nice to have a portfolio like that so you can kind of ebb and flow and reprioritize as needed.