U.S. gas producer Gulfport Energy explores sale -sources

Gulfport Energy

23/09/2021 19:54

By David French
    NEW YORK, Sept 23 (Reuters) - Gulfport Energy Corp  GPOR.N ,
a U.S. natural gas exploration and production company which
emerged from bankruptcy earlier this year, is exploring
strategic options including a possible sale, according to people
familiar with the matter.
    The Oklahoma City-headquartered company, which has a market
value of about $1.6 billion, is working with an investment bank
on its options and to help solicit potential acquisition
interest, the sources said.
    No deal is certain, the sources added, asking not to be
identified because the matter is confidential.
    Gulfport declined to comment.
    Gulfport was pushed into bankruptcy last year after the
COVID-19 pandemic temporarily eviscerated demand for energy and
left it unable to pay its debts.  urn:newsml:reuters.com:*:nL1N2I00CQ
    Control of Gulfport was handed in May to its creditors, many
of them hedge funds, upon completion of a Chapter 11 bankruptcy
process which swapped around $1.2 billion of debt for shares in
the company.
    U.S. natural gas prices spiked to a seven-year high earlier
this month, tempting the gas producer to explore a sale.
    Gulfport owns 266,000 net acres across the Utica shale basin
of Ohio and Oklahoma's SCOOP formation. It estimated in a
presentation to investors in August that 90% of its 2021
production will be natural gas, with a further 7% natural gas
liquids.
    Gulfport is currently seeking to renegotiate two contracts
with pipeline companies. Scrapping them could help it save
money. The company estimated in the August presentation that
annual gross transportation fees could drop 55% to $131 million
if both contracts are replaced by cheaper arrangements.
    

 (Reporting by David French in New York
Editing by Nick Zieminski)
 ((davidj.french@thomsonreuters.com;))