Gulfport Energy restates some Q3 results

Gulfport Energy Corp. on Thursday filed an amended 10-Q report with the U.S. Securities and Exchange Commission, and said it was restating its consolidated financial statements for the three months and for the nine months ended Sept. 30, 2019.

Gulfport said a routine year-end financial review by its new management team "identified an error related to the transfer of certain unevaluated leasehold costs to the amortization base. Based upon the evaluation of the error, Gulfport concluded that the error resulted from a material weakness in our internal controls over financial reporting."

The company also said, "our management is currently evaluating our policies and procedures related to its process of accounting for unproved oil and gas properties. We plan to design and implement additional controls to ensure that we are properly and timely identifying and transferring leasehold costs associated acreage expirations, lease transfers, and proved reserve additions from the unevaluated capitalized cost pool to the evaluated amortization base."

As a result of its restatement, Gulfport said, it was reporting a third-quarter net loss of $484.8 million, greater than the originally reported net loss of $48.7 million. On a per share basis, the company reported a net loss of $3.04, higher than the originally reported loss of 31 cents.

Gulfport shares were rising in Thursday’s after-hours session, gaining 5.52% at 4:43 p.m. EST to trade at 95 cents a share on volume of just over 14,000 shares. The company’s stock finished the day’s regular-trading session with a 9.97% loss, closing at 90 cents a share.

–Write to Stephen Nakrosis at [email protected]

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