Exhibit 99.2
Three months ended March 31, 2023
Supplemental Information of Gulfport Energy
| Table of Contents: | Page: |
| Production Volumes by Asset Area | 2 |
| Production and Pricing | 3 |
| Consolidated Statements of Income | 4 |
| Consolidated Balance Sheets | 5 |
| Consolidated Statement of Cash Flows | 7 |
| 2023E Guidance | 8 |
| Derivatives | 9 |
| Non-GAAP Reconciliations | 10 |
| Definitions | 11 |
| Adjusted Net Income | 12 |
| Adjusted EBITDA | 13 |
| Adjusted Free Cash Flow | 14 |
| Recurring General and Administrative Expenses | 15 |
Production Volumes by Asset Area : Three months ended March 31, 2023
Production Volumes
| Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
| Natural gas (Mcf/day) | ||||||||
| Utica | 718,815 | 761,810 | ||||||
| SCOOP | 225,592 | 162,654 | ||||||
| Other | — | 32 | ||||||
| Total | 944,408 | 924,496 | ||||||
| Oil and condensate (Bbl/day) | ||||||||
| Utica | 590 | 697 | ||||||
| SCOOP | 4,139 | 2,928 | ||||||
| Other | — | 7 | ||||||
| Total | 4,729 | 3,632 | ||||||
| NGL (Bbl/day) | ||||||||
| Utica | 2,690 | 2,183 | ||||||
| SCOOP | 11,406 | 8,111 | ||||||
| Other | — | 1 | ||||||
| Total | 14,096 | 10,294 | ||||||
| Combined (Mcfe/day) | ||||||||
| Utica | 738,497 | 779,089 | ||||||
| SCOOP | 318,861 | 228,885 | ||||||
| Other | 1 | 77 | ||||||
| Total | 1,057,359 | 1,008,052 | ||||||
Totals may not sum or recalculate due to rounding.
Page 2
Production and Pricing : Three months ended March 31, 2023
The
following table summarizes production and related pricing for the three months ended March 31, 2023,
as compared to such data for the
three months ended March 31, 2022:
| Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
| Natural gas sales | ||||||||
| Natural gas production volumes (MMcf) | 84,997 | 83,205 | ||||||
| Natural gas production volumes (MMcf) per day | 944 | 924 | ||||||
| Total sales | $ | 282,534 | $ | 405,212 | ||||
| Average price without the impact of derivatives ($/Mcf) | $ | 3.32 | $ | 4.87 | ||||
| Impact from settled derivatives ($/Mcf) | $ | — | $ | (1.34 | ) | |||
| Average price, including settled derivatives ($/Mcf) | $ | 3.32 | $ | 3.53 | ||||
| Oil and condensate sales | ||||||||
| Oil and condensate production volumes (MBbl) | 426 | 327 | ||||||
| Oil and condensate production volumes (MBbl) per day | 5 | 4 | ||||||
| Total sales | $ | 30,714 | $ | 30,239 | ||||
| Average price without the impact of derivatives ($/Bbl) | $ | 72.16 | $ | 92.51 | ||||
| Impact from settled derivatives ($/Bbl) | $ | (1.04 | ) | $ | (24.91 | ) | ||
| Average price, including settled derivatives ($/Bbl) | $ | 71.12 | $ | 67.60 | ||||
| NGL sales | ||||||||
| NGL production volumes (MBbl) | 1,269 | 926 | ||||||
| NGL production volumes (MBbl) per day | 14 | 10 | ||||||
| Total sales | $ | 39,912 | $ | 45,284 | ||||
| Average price without the impact of derivatives ($/Bbl) | $ | 31.46 | $ | 48.88 | ||||
| Impact from settled derivatives ($/Bbl) | $ | 0.77 | $ | (6.20 | ) | |||
| Average price, including settled derivatives ($/Bbl) | $ | 32.23 | $ | 42.68 | ||||
| Natural gas, oil and condensate and NGL sales | ||||||||
| Natural gas equivalents (MMcfe) | 95,162 | 90,725 | ||||||
| Natural gas equivalents (MMcfe) per day | 1,057 | 1,008 | ||||||
| Total sales | $ | 353,160 | $ | 480,735 | ||||
| Average price without the impact of derivatives ($/Mcfe) | $ | 3.71 | $ | 5.30 | ||||
| Impact from settled derivatives ($/Mcfe) | $ | — | $ | (1.38 | ) | |||
| Average price, including settled derivatives ($/Mcfe) | $ | 3.71 | $ | 3.92 | ||||
| Production Costs: | ||||||||
| Average lease operating expenses ($/Mcfe) | $ | 0.21 | $ | 0.19 | ||||
| Average taxes other than income ($/Mcfe) | $ | 0.11 | $ | 0.14 | ||||
| Average transportation, gathering, processing and compression ($/Mcfe) | $ | 0.92 | $ | 0.93 | ||||
| Total LOE, taxes other than income and midstream costs ($/Mcfe) | $ | 1.24 | $ | 1.27 | ||||
Totals may not sum or recalculate due to rounding.
Page 3
Consolidated Statements of Income: Three months ended March 31, 2023
(In thousands, except per share data)
(Unaudited)
| Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
| REVENUES: | ||||||||
| Natural gas sales | $ | 282,534 | $ | 405,212 | ||||
| Oil and condensate sales | 30,714 | 30,239 | ||||||
| Natural gas liquid sales | 39,912 | 45,284 | ||||||
| Net gain (loss) on natural gas, oil and NGL derivatives | 378,061 | (788,551 | ) | |||||
| Total revenues | 731,221 | (307,816 | ) | |||||
| OPERATING EXPENSES: | ||||||||
| Lease operating expenses | 19,862 | 17,644 | ||||||
| Taxes other than income | 10,695 | 12,468 | ||||||
| Transportation, gathering, processing and compression | 87,617 | 84,792 | ||||||
| Depreciation, depletion and amortization | 79,094 | 62,284 | ||||||
| General and administrative expenses | 8,733 | 7,105 | ||||||
| Restructuring costs | 1,869 | — | ||||||
| Accretion expense | 764 | 692 | ||||||
| Total operating expenses | 208,634 | 184,985 | ||||||
| INCOME (LOSS) FROM OPERATIONS | 522,587 | (492,801 | ) | |||||
| OTHER (INCOME) EXPENSE: | ||||||||
| Interest expense | 13,756 | 13,984 | ||||||
| Other, net | (14,223 | ) | (14,810 | ) | ||||
| Total other (income) expense | (467 | ) | (826 | ) | ||||
| INCOME (LOSS) BEFORE INCOME TAXES | 523,054 | (491,975 | ) | |||||
| Income tax expense | — | — | ||||||
| NET INCOME (LOSS) | $ | 523,054 | $ | (491,975 | ) | |||
| Dividends on preferred stock | $ | (1,307 | ) | $ | (1,447 | ) | ||
| Participating securities - preferred stock | $ | (86,221 | ) | $ | — | |||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 435,526 | $ | (493,422 | ) | |||
| NET INCOME (LOSS) PER COMMON SHARE: | ||||||||
| Basic | $ | 23.08 | $ | (23.23 | ) | |||
| Diluted | $ | 22.90 | $ | (23.23 | ) | |||
| Weighted average common shares outstanding—Basic | 18,868 | 21,242 | ||||||
| Weighted average common shares outstanding—Diluted | 19,049 | 21,242 | ||||||
Page 4
Consolidated Balance Sheets
(In thousands, except share data)
| March
31, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,460 | $ | 7,259 | ||||
| Accounts receivable—oil, natural gas, and natural gas liquids sales | 119,863 | 278,404 | ||||||
| Accounts receivable—joint interest and other | 23,315 | 21,478 | ||||||
| Prepaid expenses and other current assets | 6,388 | 7,621 | ||||||
| Short-term derivative instruments | 137,869 | 87,508 | ||||||
| Total current assets | 290,895 | 402,270 | ||||||
| Property and equipment: | ||||||||
| Oil and natural gas properties, full-cost method | ||||||||
| Proved oil and natural gas properties | 2,564,378 | 2,418,666 | ||||||
| Unproved properties | 183,456 | 178,472 | ||||||
| Other property and equipment | 7,174 | 6,363 | ||||||
| Total property and equipment | 2,755,008 | 2,603,501 | ||||||
| Less: accumulated depletion, depreciation and amortization | (625,019 | ) | (545,771 | ) | ||||
| Total property and equipment, net | 2,129,989 | 2,057,730 | ||||||
| Other assets: | ||||||||
| Long-term derivative instruments | 62,834 | 26,525 | ||||||
| Operating lease assets | 23,682 | 26,713 | ||||||
| Other assets | 19,739 | 21,241 | ||||||
| Total other assets | 106,255 | 74,479 | ||||||
| Total assets | $ | 2,527,139 | $ | 2,534,479 | ||||
Page 5
Consolidated Balance Sheets
(In thousands, except share data)
| March
31, 2023 | December 31, 2022 | |||||||
| Liabilities, Mezzanine Equity and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 378,037 | $ | 437,384 | ||||
| Short-term derivative instruments | 80,858 | 343,522 | ||||||
| Current portion of operating lease liabilities | 12,583 | 12,414 | ||||||
| Total current liabilities | 471,478 | 793,320 | ||||||
| Non-current liabilities: | ||||||||
| Long-term derivative instruments | 90,044 | 118,404 | ||||||
| Asset retirement obligation | 32,851 | 33,171 | ||||||
| Non-current operating lease liabilities | 11,099 | 14,299 | ||||||
| Long-term debt, net of current maturities | 549,210 | 694,155 | ||||||
| Total non-current liabilities | 683,204 | 860,029 | ||||||
| Total liabilities | $ | 1,154,682 | $ | 1,653,349 | ||||
| Commitments and contingencies (Note 9) | ||||||||
| Mezzanine Equity: | ||||||||
| Preferred stock - $0.0001 par value, 110.0 thousand shares authorized, 52.3 thousand issued and outstanding at March 31, 2023, and 52.3 thousand issued and outstanding at December 31, 2022 | 52,295 | 52,295 | ||||||
| Stockholders’ Equity: | ||||||||
| Common stock - $0.0001 par value, 42.0 million shares authorized, 18.6 million issued and outstanding at March 31, 2023, and 19.1 million issued and outstanding at December 31, 2022 | 2 | 2 | ||||||
| Additional paid-in capital | 419,024 | 449,243 | ||||||
| Common stock held in reserve, 62 thousand shares at March 31, 2023, and 62 thousand shares at December 31, 2022 | (1,996 | ) | (1,996 | ) | ||||
| Retained earnings | 903,619 | 381,872 | ||||||
| Treasury stock, at cost - 6.1 thousand shares at March 31, 2023, and 3.9 thousand shares at December 31, 2022 | (487 | ) | (286 | ) | ||||
| Total stockholders’ equity | $ | 1,320,162 | $ | 828,835 | ||||
| Total liabilities, mezzanine equity and stockholders’ equity | $ | 2,527,139 | $ | 2,534,479 | ||||
Page 6
Consolidated Statement of Cash Flows: Three months ended March 31, 2023
(In thousands)
(Unaudited)
| Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | 523,054 | $ | (491,975 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depletion, depreciation and amortization | 79,094 | 62,284 | ||||||
| Net (gain) loss on derivative instruments | (378,061 | ) | 788,551 | |||||
| Net cash receipts (payments) on settled derivative instruments | 367 | (125,046 | ) | |||||
| Other, net | 4,842 | 2,690 | ||||||
| Changes in operating assets and liabilities, net | 74,759 | 17,192 | ||||||
| Net cash provided by operating activities | 304,055 | 253,696 | ||||||
| Cash flows from investing activities: | ||||||||
| Additions to oil and natural gas properties | (130,400 | ) | (80,271 | ) | ||||
| Proceeds from sale of oil and natural gas properties | 2,463 | — | ||||||
| Other, net | (644 | ) | (7 | ) | ||||
| Net cash used in investing activities | (128,581 | ) | (80,278 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Principal payments on Credit Facility | (313,000 | ) | (456,000 | ) | ||||
| Borrowings on Credit Facility | 168,000 | 317,000 | ||||||
| Debt issuance costs and loan commitment fees | (7 | ) | (61 | ) | ||||
| Dividends on preferred stock | (1,307 | ) | (1,447 | ) | ||||
| Repurchase of common stock under Repurchase Program | (32,672 | ) | (30,192 | ) | ||||
| Other, net | (287 | ) | (80 | ) | ||||
| Net cash used in financing activities | (179,273 | ) | (170,780 | ) | ||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (3,799 | ) | 2,638 | |||||
| Cash, cash equivalents and restricted cash at beginning of period | 7,259 | 3,260 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 3,460 | $ | 5,898 | ||||
Page 7
2023E Guidance
Gulfport’s 2023 guidance assumes commodity strip prices as of April 17, 2023, adjusted for applicable commodity and location differentials, and no property acquisitions or divestitures.
| Year Ending | ||||||||
| December 31, 2023 | ||||||||
| Low | High | |||||||
| Production | ||||||||
| Average daily gas equivalent (MMcfepd) | 1,000 | 1,040 | ||||||
| % Gas | ~90% | |||||||
| Realizations (before hedges) | ||||||||
| Natural gas (differential to NYMEX settled price) ($/Mcf) | $ | (0.20 | ) | $ | (0.35 | ) | ||
| NGL (% of WTI) | 40 | % | 45 | % | ||||
| Oil (differential to NYMEX WTI) ($/Bbl) | $ | (3.00 | ) | $ | (4.00 | ) | ||
| Operating costs | ||||||||
| Lease operating expense ($/Mcfe) | $ | 0.16 | $ | 0.18 | ||||
| Taxes other than income ($/Mcfe) | $ | 0.10 | $ | 0.12 | ||||
| Transportation, gathering, processing and compression ($/Mcfe) | $ | 0.95 | $ | 0.99 | ||||
| Recurring cash general and administrative(1,2) ($/Mcfe) | $ | 0.11 | $ | 0.13 | ||||
| Total | ||||||||
| Capital expenditures (incurred) | (in millions) | |||||||
| D&C | $ | 375 | $ | 400 | ||||
| Leasehold and land | $ | 50 | $ | 75 | ||||
| Total | $ | 425 | $ | 475 | ||||
| (1) | Recurring cash G&A includes capitalization. It excludes non-cash stock compensation and expenses related to the continued administration of our prior Chapter 11 filing. |
| (2) | This is a non-GAAP measure. Reconciliations of these non-GAAP measures and other disclosures are provided with the supplemental financial tables available on our website at www.gulfportenergy.com. |
Page 8
Derivatives
The below details Gulfport’s hedging positions as of May 2, 2023:
2Q2023 | 3Q2023 | 4Q2023 | Full
Year | Full
Year | Full
Year | |||||||||||||||||||
| Natural Gas Contract Summary (NYMEX): | ||||||||||||||||||||||||
| Fixed Price Swaps | ||||||||||||||||||||||||
| Volume (BBtupd) | 180 | 200 | 280 | 220 | 235 | 70 | ||||||||||||||||||
| Weighted Average Price ($/MMBtu) | $ | 3.98 | $ | 3.93 | $ | 4.36 | $ | 4.13 | $ | 4.26 | $ | 4.08 | ||||||||||||
| Fixed Price Collars | ||||||||||||||||||||||||
| Volume (BBtupd) | 285 | 285 | 285 | 285 | 180 | — | ||||||||||||||||||
| Weighted Average Floor Price ($/MMBtu) | $ | 2.93 | $ | 2.93 | $ | 2.93 | $ | 2.93 | $ | 3.43 | $ | — | ||||||||||||
| Weighted Average Ceiling Price ($/MMBtu) | $ | 4.78 | $ | 4.78 | $ | 4.78 | $ | 4.78 | $ | 5.49 | $ | — | ||||||||||||
| Fixed Price Calls Sold | ||||||||||||||||||||||||
| Volume (BBtupd) | 408 | 408 | 408 | 408 | 202 | 193 | ||||||||||||||||||
| Weighted Average Price ($/MMBtu) | $ | 3.21 | $ | 3.21 | $ | 3.21 | $ | 3.21 | $ | 3.33 | $ | 5.80 | ||||||||||||
| Rex Zone 3 Basis | ||||||||||||||||||||||||
| Volume (BBtupd) | 140 | 140 | 140 | 140 | 90 | — | ||||||||||||||||||
| Differential ($/MMBtu) | $ | (0.22 | ) | $ | (0.22 | ) | $ | (0.22 | ) | $ | (0.22 | ) | $ | (0.15 | ) | $ | — | |||||||
| Tetco M2 Basis | ||||||||||||||||||||||||
| Volume (BBtupd) | 130 | 210 | 210 | 184 | 70 | — | ||||||||||||||||||
| Differential ($/MMBtu) | $ | (0.89 | ) | $ | (0.91 | ) | $ | (0.91 | ) | $ | (0.91 | ) | $ | (0.89 | ) | $ | — | |||||||
| NGPL TX OK Basis | ||||||||||||||||||||||||
| Volume (BBtupd) | 80 | 80 | 80 | 80 | 60 | — | ||||||||||||||||||
| Differential ($/MMBtu) | $ | (0.35 | ) | $ | (0.35 | ) | $ | (0.35 | ) | $ | (0.35 | ) | $ | (0.31 | ) | $ | — | |||||||
| Oil Contract Summary (WTI): | ||||||||||||||||||||||||
| Fixed Price Swaps | ||||||||||||||||||||||||
| Volume (Bblpd) | 3,000 | 3,000 | 3,000 | 3,000 | — | — | ||||||||||||||||||
| Weighted Average Price ($/Bbl) | $ | 74.47 | $ | 74.47 | $ | 74.47 | $ | 74.47 | $ | — | $ | — | ||||||||||||
| NGL Contract Summary: | ||||||||||||||||||||||||
| C3 Propane Fixed Price Swaps | ||||||||||||||||||||||||
| Volume (Bblpd) | 3,000 | 3,000 | 3,000 | 3,000 | — | — | ||||||||||||||||||
| Weighted Average Price ($/Bbl) | $ | 38.07 | $ | 38.07 | $ | 38.07 | $ | 38.07 | $ | — | $ | — |
| (1) | April 2023 - December 2023. |
Page 9
Non-GAAP Reconciliations
Gulfport’s management uses certain non-GAAP financial measures for planning, forecasting and evaluating business and financial performance, and believes that they are useful tool to assess Gulfport’s operating results. Although these are not measures of performance calculated in accordance with generally accepted accounting principles (GAAP), management believes that these financial measures are useful to an investor in evaluating Gulfport because (i) analysts utilize these metrics when evaluating company performance and have requested this information as of a recent practicable date, (ii) these metrics are widely used to evaluate a company’s operating performance, and (iii) we want to provide updated information to investors. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with GAAP. In addition, because all companies do not calculate these measures identically, these measures may not be comparable to similarly titled measures of other companies.
These non-GAAP financial measures include adjusted net income, adjusted EBITDA, adjusted free cash flow, and recurring general and administrative expense. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. These non-GAAP measure should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP.
Page 10
Definitions
Adjusted net income is a non-GAAP financial measure equal to income (loss) before income taxes less non-cash derivative (gain) loss, non-recurring general and administrative expenses comprised of expenses related to the continued administration of our prior Chapter 11 filing, stock-based compensation expenses, restructuring costs and other items which include items related to our Chapter 11 filing and other non-material expenses.
Adjusted EBITDA is a non-GAAP financial measure equal to net income (loss), the most directly comparable GAAP financial measure, plus interest expense, depreciation, depletion and amortization, and impairment of oil and gas properties, property and equipment, accretion, non-cash derivative (gain) loss, non-recurring general and administrative expenses comprised of expenses related to the continued administration of our prior Chapter 11 filing, stock-based compensation, restructuring costs and other items which include items related to our Chapter 11 filing and other non-material expenses.
Adjusted free cash flow is a non-GAAP measure defined as adjusted EBITDA plus certain non-cash items that are included in net cash provided by (used in) operating activities but excluded from adjusted EBITDA less interest expense, capitalized expenses incurred and capital expenditures incurred. Gulfport includes a adjusted free cash flow estimate for 2023. We are unable, however, to provide a quantitative reconciliation of the forward-looking non-GAAP measure to its most directly comparable forward-looking GAAP measure because management cannot reliably quantify certain of the necessary components of such forward-looking GAAP measure. Accordingly, Gulfport is relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude such reconciliation. Items excluded in net cash provided by (used in) operating activities to arrive at adjusted free cash flow include interest expense, income taxes, capitalized expenses as well as one-time items or items whose timing or amount cannot be reasonably estimated.
Recurring general and administrative expense is a non-GAAP financial measure equal to general and administrative expense (GAAP) plus capitalized general and administrative expense, less non-recurring general and administrative expenses comprised of expenses related to the continued administration of our prior Chapter 11 filing. Gulfport includes a recurring general and administrative expense estimate for 2023. We are unable, however, to provide a quantitative reconciliation of the forward-looking non-GAAP measure to its most directly comparable forward-looking GAAP measure because management cannot reliably quantify certain of the necessary components of such forward-looking GAAP measure. Accordingly, Gulfport is relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude such reconciliation. Items excluded in general and administrative expense to arrive at recurring general and administrative expense include capitalized expenses as well as one-time items or items whose timing or amount cannot be reasonably estimated. The non-GAAP measure recurring general and administrative expenses allows investors to compare Gulfport’s total general and administrative expenses, including capitalization, to peer companies that account for their oil and gas operations using the successful efforts method.
Page 11
Adjusted Net Income: Three months ended March 31, 2023
(In thousands)
(Unaudited)
| Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
| Pre-Tax Net Income (Loss) (GAAP) | $ | 523,054 | $ | (491,975 | ) | |||
| Adjustments: | ||||||||
| Non-cash derivative (gain) loss | (377,694 | ) | 663,505 | |||||
| Non-recurring general and administrative expense | 1,297 | 495 | ||||||
| Stock-based compensation expense | 1,754 | 1,158 | ||||||
| Restructuring costs | 1,869 | — | ||||||
| Other, net(1)(2) | (14,223 | ) | (14,810 | ) | ||||
| Adjusted Net Income (Non-GAAP) | $ | 136,057 | $ | 158,373 | ||||
| (1) | For the three months ended March 31, 2023, “Other, net” included a $17.8 million receipt of funds related to our interim claim distribution from our Chapter 11 Plan of Reorganization and a $1 million administrative payment to Rover as part of the executed settlement. The distribution and settlement is more fully described in Note 9 of our consolidated financial statements included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023. Additionally, “Other, net” included a $0.5 million expense to terminate one of our short-term drilling commitments. |
| (2) | For the three months ended March 31, 2022, “Other, net” included $11.5 million receipt of funds related to our initial claim distribution from our Chapter 11 Plan or Reorganization. The distribution is more fully described in Note 9 of our consolidated financial statements included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023. |
Page 12
Adjusted EBITDA: Three months ended March 31, 2023
(In thousands)
(Unaudited)
| Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
| Net Income (Loss) (GAAP) | $ | 523,054 | $ | (491,975 | ) | |||
| Adjustments: | ||||||||
| Interest expense | 13,756 | 13,984 | ||||||
| DD&A and accretion | 79,858 | 62,976 | ||||||
| Non-cash derivative (gain) loss | (377,694 | ) | 663,505 | |||||
| Non-recurring general and administrative expenses | 1,297 | 495 | ||||||
| Stock-based compensation expense | 1,754 | 1,158 | ||||||
| Restructuring costs | 1,869 | — | ||||||
| Other, net(1)(2) | (14,223 | ) | (14,810 | ) | ||||
| Adjusted EBITDA (Non-GAAP) | $ | 229,671 | $ | 235,333 | ||||
| (1) | For the three months ended March 31, 2023, “Other, net” included a $17.8 million receipt of funds related to our interim claim distribution from our Chapter 11 Plan of Reorganization and a $1 million administrative payment to Rover as part of the executed settlement. The distribution and settlement is more fully described in Note 9 of our consolidated financial statements included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023. Additionally, “Other, net” included a $0.5 million expense to terminate one of our short-term drilling commitments. |
| (2) | For the three months ended March 31, 2022, “Other, net” included $11.5 million receipt of funds related to our initial claim distribution from our Chapter 11 Plan or Reorganization. The distribution is more fully described in Note 9 of our consolidated financial statements included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023. |
Page 13
Adjusted Free Cash Flow: Three months ended March 31, 2023
(In thousands)
(Unaudited)
| Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||
| Net cash provided by operating activity (GAAP) | $ | 304,055 | $ | 253,696 | ||||
| Adjustments: | ||||||||
| Interest expense | 13,756 | 13,984 | ||||||
| Non-recurring general and administrative expenses | 1,297 | 495 | ||||||
| Restructuring costs | 1,869 | — | ||||||
| Other, net(1)(2) | (16,547 | ) | (15,650 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Decrease in accounts receivable - oil, natural gas, and natural gas liquids sales | (158,541 | ) | (25,985 | ) | ||||
| Increase in accounts receivable - joint interest and other | 1,837 | 17,722 | ||||||
| Decrease (increase) in accounts payable and accrued liabilities | 82,671 | (2,135 | ) | |||||
| Decrease in prepaid expenses | (764 | ) | (6,811 | ) | ||||
| Increase in other assets | 38 | 17 | ||||||
| Total changes in operating assets and liabilities | $ | (74,759 | ) | $ | (17,192 | ) | ||
| Adjusted EBITDA (Non-GAAP) | $ | 229,671 | $ | 235,333 | ||||
| Interest expense | (13,756 | ) | (13,984 | ) | ||||
| Capitalized expenses incurred(3) | (5,083 | ) | (4,147 | ) | ||||
| Capital expenditures incurred(4) | (147,687 | ) | (100,367 | ) | ||||
| Adjusted free cash flow (Non-GAAP) | $ | 63,145 | $ | 116,835 | ||||
| (1) | For the three months ended March 31, 2023, “Other, net” included a $17.8 million receipt of funds related to our interim claim distribution from our Chapter 11 Plan of Reorganization and a $1 million administrative payment to Rover as part of the executed settlement. The distribution and settlement is more fully described in Note 9 of our consolidated financial statements included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023. Additionally, “Other, net” included a $0.5 million expense to terminate one of our short-term drilling commitments. |
| (2) | For the three months ended March 31, 2022, “Other, net” included $11.5 million receipt of funds related to our initial claim distribution from our Chapter 11 Plan or Reorganization. The distribution is more fully described in Note 9 of our consolidated financial statements included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023. |
| (3) | Includes cash capitalized general and administrative expense and incurred capitalized interest expenses. |
| (4) | Incurred capital expenditures and cash capital expenditures may vary from period to period due to the cash payment cycle. |
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Recurring General and Administrative Expenses:
Three months ended March 31, 2023
(In thousands)
(Unaudited)
| Three
Months Ended March 31, 2023 | Three
Months Ended March 31, 2022 | |||||||||||||||||||||||
| Cash | Non-Cash | Total | Cash | Non-Cash | Total | |||||||||||||||||||
| General and administrative expense (GAAP) | $ | 6,979 | $ | 1,754 | $ | 8,733 | $ | 5,947 | $ | 1,158 | $ | 7,105 | ||||||||||||
| Capitalized general and administrative expense | 4,259 | 864 | 5,123 | 4,147 | 597 | 4,744 | ||||||||||||||||||
| Non-recurring general and administrative expense | (1,297 | ) | — | (1,297 | ) | (495 | ) | — | (495 | ) | ||||||||||||||
| Recurring general and administrative before capitalization (Non-GAAP) | $ | 9,941 | $ | 2,618 | $ | 12,559 | $ | 9,599 | $ | 1,755 | $ | 11,354 | ||||||||||||
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