Gulfport Energy
$1.05B Targeting Utica
November 5, 2013
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Diamondback Energy
$425 to $475 Million
November 5, 2013
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Sandridge Energy
Capex Flat at $1.5B
November 6, 2013
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Goodrich Petroleum
$375MM TMS Focus
November 05, 2013
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Gulfport Energy has presences in the Permian, Niobrara, WCSB, South Louisiana and even Thailand, but its focus is the Utica where Gulfport reported 7,200 boepd in Q3 (more than double Q2 and 55% of total 3Q13 production of 13,000 boepd). It is spending ~$700 million ex-acreage next year, up 21% YOY, with 88% of total and nearly all YOY capex increase in the Utica, as well as another $250 million toward Utica leaseholds. Gulfport expects 2014 production of 50,000-60,000 boepd, up 323% from current levels and 86% from year-end exit projections, with a massive ~600% increase in the Utica to ~49,500 boepd. On Nov. 4, 2013, GPOR had a market cap of $4.7 billion and EV of $4.9 billion.
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Diamondback is a red-hot pure play Midland Basin company in the Permian (shares are up 175% YTD and 204% since its October 17, 2012 IPO) leveraging the shift toward horizontal activity in the play to solid growth and lower costs (down 42% in Q3 vs. fiscal 2012). Next year’s drilling and infrastructure capex is projected at $425-$475 million, a 48% ex-acquisition increase YOY, with 85% targeting horizontal drilling and completion. Production should average 15,000-16,000 boepd next year, more than doubling from Q3 levels. Horizontal well costs should run $6.9-$7.4 million while vertical wells are $2.0 to $2.2 million. FANG is expected to add a 5th horizontal rig in Q214 and maintain one vertical rig.
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SandRidge Energy 2014 capex will be virtually flat, up just 3% from $1.45 billion to $1.5 billion. In its Midcon/Mississippian area, SD is planning a flat 308 net wells with D&C costs expected to be down from $1.03 billion to $965 million in 2014. On a % basis SD is making much larger cuts to its smaller Permian and GOM/Gulf Coast efforts, but cuts are fairly uniform on a dollar basis in the $35-$70 million range. The company is losing $215 million payable in JV carries vs. last year , and has cut back to cover the decrease. Despite cuts however, production is expected to grow 8% YOY to 99,500 boepd (42% oil). The Mississippian Lime play will generate 62% of 2014 production volumes followed by GOM/GC with 23%.
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Goodrich is allocating 80% of its 2014 $375 million capex budget to the TMS. GDR also has Eagle Ford production and Haynesville gas optionality. Production is down YTD from 85.8MMcfe/d to 79.4MMcfe/d, but oil has increased from 21% to 30% of total. The company just upsized 2013 capex from $230 to $255 million, then guided to $375 million in 2014, with $300 million in the TMS up from just $75 million last year. Eagle Ford spend will drop from $100 million to $30 million. Goodrich has yet to book any proved reserves in the Tuscaloosa, but the play holds half of the company’s potential reserves. Goodrich's Crosby 12H-1 well, the most promising well in the play, has sparked renewed vigor in the area.
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