- Gulfport Energy (GPOR +23.1%) received approval for its "first day" motions by the bankruptcy court authorizing it to continue paying royalties, employee wages and benefits, and certain vendors and suppliers.
- The bankruptcy court also authorized Gulfport to borrow up to $90M in debtor-in-possession financing.
- Gulfport wants the court to reject its firm gas transportation agreements with Rockies Express Pipeline, Rover Pipeline and several TC Energy (NYSE:TRP) units, and to block Federal Energy Regulatory Commission actions that might "usurp" the court's role.
- Rejection of the REX and Rover agreements would save the debtors $18M/year in net costs, or ~$222M over the remaining term of the firm transportation agreements, Gulfport told the court.
- Commitments with TC Energy have put the debtors on the hook for $700M in aggregate gross costs for remaining terms for firm capacity that is unneeded for the debtors' operations, Gulfport also said.
- Gulfport Energy's bankruptcy reorganization plan is "irrational because it does not reduce debt enough," WYCO Researcher writes in a bearish report posted recently on Seeking Alpha.