15 Dec 2016capital raising announcement● NeutralMajor
Gulfport agreed on December 13, 2016 to buy assets from Vitruvian II Woodford, LLC (an unrelated seller) for about $1.85 billion, made up of $1.35 billion in cash and about 18.8 million Gulfport shares. The assets are 46,400 net surface acres in the Woodford and Springer formations in Grady, Stephens and Garvin Counties, Oklahoma, with about 183 Mmcfepd of net production for October 2016 and about 1.1 Tcfe of estimated proved reserves. It is expected to close in February 2017. To pay the cash portion, Gulfport launched a 29,000,000-share public stock offering (plus an option for 4,350,000 more) and a proposed $600 million of Senior Notes due 2025. It also amended its credit facility with The Bank of Nova Scotia, extending maturity to December 13, 2021, raising the interest rate on all loans by 0.5%, and raising the permitted senior notes to $1.6 billion. This is Gulfport's first entry into Oklahoma and follows the December 14 shelf registration and prospectus supplement.