Gulfport Energy's Accounts Payable In Addition To Accrued Liabilities

Gulfport Energy reports afterwards this week. Strangely ane of the residual canvas items that most intrigues me is their accounts payable as well as accrued liabilities.

Here is the electrical flow liability department from the concluding 10-Q.

GULFPORT ENERGY CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited)
	September 30, 2012				December 31, 2011
Current liabilities:
Accounts payable as well as accrued liabilities	$	107,058,000			$	43,872,000
Asset retirement obligation - current	60,000				620,000
Short-term derivative instruments	8,816,000				—
Current maturities of long-term debt	147,000				141,000
Total electrical flow liabilities	116,081,000				44,633,000

I simply desire you lot to regime annotation that accounts payable as well as accrued liabilities are simply over 107 million. That is upwards from 44 1000000 at Dec 2011 as well as from 96 1000000 inward the second quarter.

And hither is the lucre loss tilt listing all expenses for the by ix months.

GULFPORT ENERGY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2012				2011				2012				2011
Revenues:
Oil as well as condensate sales	$	58,609,000			$	56,447,000			$	187,633,000			$	154,559,000
Gas sales	973,000				923,000				2,127,000				3,155,000
Natural gas liquids sales	874,000				653,000				2,374,000				2,346,000
Other income	81,000				58,000				189,000				248,000
	60,537,000				58,081,000				192,323,000				160,308,000
Costs as well as expenses:
Lease operating expenses	6,638,000				5,744,000				18,201,000				15,103,000
Production taxes	7,070,000				6,281,000				22,411,000				18,520,000
Depreciation, depletion, as well as amortization	25,377,000				14,736,000				70,424,000				40,606,000
General as well as administrative	3,098,000				2,034,000				9,370,000				6,209,000
Accretion expense	176,000				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 desire you lot to honour that the exclusively expenses inward the by ix months are:

• 18.2 1000000 of lease operating expenses
• 22.4 1000000 of production taxes
• 70.4 1000000 of depreciation, depletion as well as amortization
• 9.4 1000000 of full general administrative expenses, and
• 0.5 1000000 of accretion expense (though I am non certain I know what that is).

The depreciation, depletion as well as amortization is - I presume - non cash. Cash expenses for the ix months add together upwards to virtually $50 million.

I presume most of those were paid relatively promptly. (It does non endear you lot to regulators for event if you lot create non pay your production taxes.)

Simple question

What classify of concern is it that accrues $107 1000000 inward (unpaid) electrical flow liabilities but incurs exclusively virtually $50 1000000 of expense over the by ix months?

I convey spent a fighting of fourth dimension puzzling out the response - but I volition teach out that for to a greater extent than or less other post.






John

Disclosure: brusk Gulfport.