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Gastar Exploration Inc.

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2018 10-Q, filed Nov 14, 2018. Its latest SEC filing is a SC 13G/A from Feb 14, 2020.

The sections below describe the company as of the FY2017 annual report.

What Did They Do?

Produces oil, natural gas and natural gas liquids for oil and gas buyers, and explores and develops unconventional properties in Oklahoma’s STACK Play.

How Did They Make Money?

Sells oil, condensate and natural gas liquids in spot transactions and natural gas under spot-market contracts. Sales are based on production volumes and contracted prices when products are delivered to a pipeline or collected from a tank.

FY2017 revenue

Who Were Their Customers?

Oil and condensate are sold through spot transactions to purchasers including Sunoco; natural gas is sold under spot-market contracts, and Superior Pipeline Company buys natural gas and natural gas liquids.

Customers above 10% of revenue, FY2017
of revenue from two customers (61%, 14%)
FY2015: 90% from three customers

Did Revenues Turn Into Profits?

No. It lost $46.8M in FY2017.

Operating income, FY2017
6% of revenue
▲ Now profitable vs FY2016 (−$53.8M, −92%)
Net income, FY2017
−65% of revenue
▼ −48% (Loss) vs FY2016 (−$89.1M, −153%)

How Were They Changing?

Since the FY2017 annual report
Latest quarter: Q3 FY2018, the three months to Sep 30, 2018
Revenue
▲ +21%
vs $15.3M in Q3 FY2017
Net income
▲ +43% (Loss)
vs −$12.3M in Q3 FY2017
  • Jan 22, 2019 Gastar emerged from Chapter 11 as a private company The restructuring eliminated more than $350 million of debt and preferred equity obligations; Gastar became an LLC and existing shares were canceled.
  • Dec 28, 2018 Bankruptcy court confirmed Gastar’s reorganization plan
  • Nov 1, 2018 Gastar filed for Chapter 11 bankruptcy The plan proposed eliminating funded debt and preferred equity, canceling existing common shares and providing new financing for operations.

Shrank. Revenue fell 18% in 4 years, from $87.8M in FY2013 to $72.1M in FY2017, about 5% a year.

From multiple regions to STACK The older report describes development in Oklahoma’s Hunton play alongside Marcellus and Utica projects in West Virginia; the latest report says Gastar focused solely on the STACK Play after selling its Appalachian Basin assets.

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