Gulfport energy's accounts payable and accrued liabilities
Gulfport Energy reports later this week. Strangely one of the balance sheet items that most intrigues me is their accounts payable and accrued liabilities.
Here is the current liability section from the last 10-Q.
GULFPORT ENERGY CORPORATIONCONSOLIDATED BALANCE SHEETS(Unaudited)September 30,
2012December 31,
2011
Current liabilities:Accounts payable and accrued liabilities$107,058,000
$43,872,000
Asset retirement obligation - current60,000
620,000
Short-term derivative instruments8,816,000
—
Current maturities of long-term debt147,000
141,000
Total current liabilities116,081,000
44,633,000
I just want you to note that accounts payable and accrued liabilities are just over 107 million. That is up from 44 million at December 2011 and from 96 million in the second quarter.
And here is the profit loss statement listing all expenses for the past nine months.
GULFPORT ENERGY CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)Three Months Ended September 30,Nine Months Ended September 30,2012201120122011Revenues:Oil and condensate sales$58,609,000
$56,447,000
$187,633,000
$154,559,000
Gas sales973,000
923,000
2,127,000
3,155,000
Natural gas liquids sales874,000
653,000
2,374,000
2,346,000
Other income81,000
58,000
189,000
248,000
60,537,000
58,081,000
192,323,000
160,308,000
Costs and expenses:Lease operating expenses6,638,000
5,744,000
18,201,000
15,103,000
Production taxes7,070,000
6,281,000
22,411,000
18,520,000
Depreciation, depletion, and amortization25,377,000
14,736,000
70,424,000
40,606,000
General and administrative3,098,000
2,034,000
9,370,000
6,209,000
Accretion expense176,000
168,000
529,000
491,000
42,359,000
28,963,000
120,935,000
80,929,000
INCOME FROM OPERATIONS:18,178,000
29,118,000
71,388,000
79,379,000
I want you to notice that the only expenses in the past nine months are:
18.2 million of lease operating expenses
22.4 million of production taxes
70.4 million of depreciation, depletion and amortization
9.4 million of general administrative expenses, and
0.5 million of accretion expense (though I am not sure I know what that is).
The depreciation, depletion and amortization is - I presume - non cash. Cash expenses for the nine months add up to about $50 million.
I presume most of those were paid relatively promptly. (It does not endear you to regulators for instance if you do not pay your production taxes.)
Simple question
What sort of business is it that accrues $107 million in (unpaid) current liabilities but incurs only about $50 million of expense over the past nine months?
I have spent a bit of time puzzling out the answer - but I will leave that for another post.
John
Disclosure: short Gulfport.