Gulfport CEO glad handed right out the front door despite quasi Utica production from ersatz oil & gas wells in southern Ohio.

http://ir.gulfportenergy.com/releasedetail.cfm?ReleaseID=821940

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Permalink Reply by scott peterson on February 2, 2014 at 11:33am

He retired...

Permalink Reply by Bluflame on February 5, 2014 at 5:29am

   I feel compelled to respond to this posting. It's hard to criticize a CEO who increased GPOR enterprise value from $200MM to ~$5B during an eight year CEO tenure. Most Boards would reward that kind of performance with a handsome parting golden handshake. To Jim Palm's everlasting credit, he chose to quietly exit the company into retirement (he's reportedly approaching 70 yrs old) with minimal fanfare and no outlandish payoff.

   Very reliable sources have informed me that Mr. Palm is a terrific, unassuming human being in addition to a results-producing CEO. This episode would seem to confirm that assertion. I can only offer a heart-felt "well done" to Mr. Palm and a sincere thank you for being the pioneer who unlocked the southern sweet spot of the Utica Shale. Lots of Go Marcellus Utica Shale landowners (including me) have benefitted from your wildcatting spirit.

   Have a long, terrific retirement, Mr. Palm!

BluFlame

Permalink Reply by scott peterson on February 5, 2014 at 5:38am

Amen to that!

Permalink Reply by Paul Butler on February 5, 2014 at 5:50am

Your comment is not very analytical and very short on specifics. 

Does hagiography really fit well in a discussion concerning oil folks from Oklahoma?

You did hit the high note, but failed to mention it was done with other peoples' money and what the resulting debt means on the financial statements today.

I don't believe in coincidence.  Never have.

Permalink Reply by Chris on February 5, 2014 at 8:33am

Most new oil and gas companies use "other peoples money".

Permalink Reply by DS on February 5, 2014 at 9:40am

Exactly.  Since few homeowners buy their initial homes (and often not even their subsequent homes) with 100% cash, every homeowner who ever obtained a mortgage used "other people's money."

Our civilization would operate with a pretty primitive financial structure if it did not include leverage as an option.

Permalink Reply by Paul Butler on February 5, 2014 at 10:06am

The "new" company at issue borrowed enough for a lot of homes. 

The disparity in numbers would seem to forbid the comparison. 

Why don't you tighten up the argument a little.  Throw something in there about your Daddy's service in the Korean and Vietnam wars and how he survived following experienced veterans.  

I've seen similar nonsensical  arguments used effectively on GMS.

Don't agree with anybody calling the company at issue "new."  Then you're going to have to deal with how the new company got the money in the first place.  You don't want to get into that.

Permalink Reply by Bluflame on February 5, 2014 at 11:00am

Paul,

  At 12/31/12, GPOR had a debt/equity ratio of .26. They haven't yet published 2013 numbers, but they sold some Texas assets, increased their bank credit line and issued new equity to fund their 2014 Utica drilling program consisting of ~90 HZ wells. Specifically, they plan to spend ~ $1B in 2014 for their capital program. In the Utica sweet spot (where GPOR resides), well paybacks are averaging less than one year, sometimes significantly less. Seems to make economic sense to me.

  You've hinted in your last two messages that you have some knowledge of their financial statements and "how the company got the money in the first place". Please share your information. 

BluFlame

Permalink Reply by Paul Butler on February 5, 2014 at 11:20am

If you believe the numbers, many of the wells will pay out in 60 days. 

I don't believe the numbers.

What you need to remember is that half the truth, represented to be the whole truth, is in fact a lie.

Permalink Reply by scott peterson on February 5, 2014 at 12:50pm

Gulfport has done right be me so far as a lessor and a shareholder and hopefully as a drilling partner on my land within the near future. I have no issues with them at all and think they are heading in the right direction.

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