The onshore gas producer, which is valued at around $1.6bn, is being helped by an investment bank in evaluating its options
US-based upstream company Gulfport Energy is reportedly weighing strategic options for its business, which includes a potential sale.
The company, which is valued at around $1.6bn, is being helped by an investment bank in assessing its options, reported Reuters, citing people having knowledge about the development.
The investment bank is also said to help the exploration and production company in soliciting potential acquisition interest.
The sources told the publication that no deal can be assured.
Headquartered in Oklahoma City, Gulfport Energy had emerged from bankruptcy in May 2021. The company entered into bankruptcy last year, owing to the impact of Covid-19 on energy demand, which left it struggling to clear its debts.
Gulfport Energy’s control was transferred to its creditors in May. Many of the creditors are hedge funds, which had exchanged nearly $1.2bn of debt for the shares of the company.
The company is focused on exploring, acquiring, and producing natural gas, crude oil and natural gas liquids (NGL) in the US.
Its main focus of operations is in the Appalachia and Anadarko basins.
The key assets of Gulfport Energy are located in Eastern Ohio, which target the Utica formation. The company also has properties in central Oklahoma, which target the SCOOP Springer and SCOOP Woodford formations.
According to the publication, currently, the company is planning to renegotiate two contracts with pipeline operators. Cancelling the contracts could help in saving money, reported the news agency.
In another development in the US oil and gas industry, ConocoPhillips is planning to divest conventional oil and gas properties worth nearly $500m in a major oil basin in the US, Reuters reported, citing a marketing document seen by it.