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

Tim Rezvan: Okay. I appreciate that color. And if I could sneak one last one in. I know post restructuring, you have been sort of — there has been an intermittent program across your assets and you can sort of see the spud to pox schedule the variability across these pads. How do you think about running a more continuous program, as I guess you get through 2023 and beyond. You have talked about reducing cycle times. Is your plan to kind of get rid of these extended spud to pop cycles or I guess, how do you think about that in terms of driving more efficiencies through the business?

John Reinhart: No, it is a great question actually, Tim. I appreciate it. I think, as we look at it from purely a pad level type rate of returns. So, minimizing and optimizing that cycle time when you spend money and when you deliver revenue. And what that means is there is going to be some overlap, certainly in 2023, where we have a couple frac crews running, and there will be times when we have zero frac crews running. And I think as long as we keep those balances within a cadence of one to two crews very manageable and quite frankly, it is much more efficient and it is much more efficient from a capital efficiency standpoint and actually a return on the investment. So, you are going to see some rigs, kind of the cadence of them will come, there will be some overlap.

You are going to see frat crews somewhat overlap, but generally speaking, it will be that one and a quarter type rig and generally, one frac crew throughout the year. There will be though, however, some overlap as we look to optimize these cycle times and bring some value forward to the company.

Tim Rezvan: Okay thanks John. I appreciate all the color.

John Reinhart: Okay, you bet. Thank you very much.

Operator: Thank you. There are no further questions at this time. I would like to hand the floor back over to John Reinhart for any closing comments.

John Reinhart: Yes, I would like to thank everybody for joining our call today. Appreciate the questions. We are very excited about 2023 and the development plan. The Company is in a great position to be able to generate free cash flow at a variety of commodity prices. And we are very focused, again, to reiterate on when actually focusing and targeting those funds to increase value of the company. And, and the toggles that we are using are the Share repurchase program, which we have recently announced an extension on, as well as incremental leasehold to bolster our total footprint and grow some scale from an inventory perspective. So, again very excited about 2023 and look forward to sharing more about the results for our next quarter’s call. So thank you very much.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.