Gulfport Energy - Bankruptcy

Gulfport Energy filed for bankruptcy in federal court in Houston on Fri. 13th, 2020. They will attempt to reorganize and dump about $2.5 billion in debt and liabilities. Check your lease for bankruptcy provisions. These companies are usually able to continue operating and paying royalties while in bankruptcy. This could last 6 months or more. My guess is that after they emerge without all of the long term debt, they will be taken over by EQT or SWN. SWN took over Montage Resources (which was Eclipse) on Friday in an all-stock deal. And EQT (which took over Rice) also took over Chevron's assets recently for $750 million recently. Consolidation is the future, for better or worse.

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Replies to This Discussion

Permalink Reply by Shower Bath on November 18, 2020 at 2:26am

Gulfport has been granted authority to continue paying royalties, their employees, and their other bills. Here's a link to a current story on Seeking Alpha.

https://www.seekingalpha.com/news/3637336-gulfport-seeks-to-shed-ga...

Permalink Reply by Shower Bath on November 27, 2020 at 4:06am

For updated/current info on the bankruptcy of Gulfport, check the link below.....

http://www.gulfportenergy.com/restructuring

Permalink Reply by Robert Bond on November 30, 2020 at 12:58pm

 Thank you for the information .

Permalink Reply by Al Cramblett on December 1, 2020 at 6:58am

Shower bath, thanks for your posts. You provide very valuable information for the members of this website.

Permalink Reply by Robert Bond on December 1, 2020 at 7:18am

 I agree and hope we start seeing more information about what is going on.  I realize drilling has slowed a lot.  Hope we do not see more restrictions on fracking and the use of fossil fuels.

Permalink Reply by Shower Bath on March 26, 2022 at 2:36am

Guess I was wrong on who might have an interest in a takeover of Gulfport. There was an article on Bloomberg yesterday disclosing a possible merger/acquisition with Ascent Resources, with Ascent being the operator going forward. Their leaseholds are complimentary and Gulfport has weak management and is unable to expand their operations since their bankruptcy. Ascent has been far more active than Gulfport in Harrison county and we might see some drilling return to the area if this takeover happens. My question is whether Ascent is a good partner for landowners, or do they play games with production deductions?

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