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Group 1 - Gulfport Energy's Q2 2025 production was impacted by midstream issues, resulting in a decrease of several percent, but these issues have been largely resolved [2] - The company anticipates a double-digit increase in production for the second half of 2025 [2] - The analysis is provided by Aaron Chow, a seasoned analyst with over 15 years of experience, who has a background in mobile gaming and focuses on value and distressed investment opportunities, particularly in the energy sector [2]

PART I FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited consolidated financial statements for June 30, 2025, show total assets increased to $2.96 billion, with Q2 2025 net income of $184.5 million, a significant turnaround driven by natural gas sales and derivative gains [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $2.96 billion by June 30, 2025, driven by net property and equipment, with total liabilities at $1.16 billion and stockholders' equity at $1.77 billion Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $197,923 | $231,313 | | **Total property and equipment, net** | $2,189,797 | $2,018,271 | | **Total assets** | **$2,959,457** | **$2,865,697** | | **Total current liabilities** | $389,619 | $345,508 | | **Long-term debt** | $695,154 | $702,857 | | **Total liabilities** | **$1,162,422** | **$1,116,956** | | **Total stockholders' equity** | **$1,765,679** | **$1,711,393** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 net income reached $184.5 million, a substantial improvement from a prior year loss, fueled by a 147% revenue increase to $447.6 million from natural gas sales and derivative gains Q2 Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total revenues** | $447,616 | $181,117 | | Natural gas sales | $241,236 | $144,458 | | Net gain (loss) on derivatives | $136,101 | $(8,615) | | **Total operating expenses** | $196,848 | $199,236 | | **Net income (loss)** | **$184,466** | **$(26,212)** | | **Diluted EPS** | **$9.12** | **$(1.51)** | YTD Statement of Operations Highlights (in thousands, except per share data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total revenues** | $644,650 | $464,346 | | Natural gas sales | $522,742 | $332,744 | | Net (loss) gain on derivatives | $(10,447) | $36,521 | | **Total operating expenses** | $381,868 | $400,699 | | **Net income** | **$184,002** | **$25,823** | | **Diluted EPS** | **$9.01** | **$1.09** | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased to $1.77 billion by June 30, 2025, primarily due to $184.0 million in net income, partially offset by $125.9 million in common stock repurchases - Key changes in stockholders' equity for the six months ended June 30, 2025 include net income of **$184.5 million**, stock repurchases under the Repurchase Program of **$125.9 million**, and stock compensation expense of **$9.4 million**[41](index=41&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations for the first six months of 2025 totaled $408.7 million, with significant outflows for investing ($254.0 million) and financing ($152.4 million) activities Consolidated Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$408,683** | **$311,487** | | Net cash used in investing activities | $(253,965) | $(246,498) | | Net cash used in financing activities | $(152,397) | $(65,685) | | **Net change in cash and cash equivalents** | **$2,321** | **$(696)** | | Cash and cash equivalents at end of period | $3,794 | $1,233 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment operations, debt, equity, and derivatives, with key updates including 2026 Senior Notes redemption, an expanded share repurchase program, and preferred stock redemption notice - The company operates as a single reportable segment focused on the exploration, acquisition, and production of natural gas, crude oil, and NGL in the Appalachia and Anadarko basins[47](index=47&type=chunk)[54](index=54&type=chunk) - The company did not record any impairment of its oil and natural gas properties for the three or six months ended June 30, 2025 or 2024, as the net book value was below the calculated ceiling[63](index=63&type=chunk) - Subsequent to quarter end, on August 4, 2025, the Board of Directors increased the authorized share repurchase program from **$1.0 billion to $1.5 billion** and extended it through December 31, 2026[172](index=172&type=chunk) - On August 5, 2025, the company issued a notice of redemption for all its outstanding preferred stock, effective September 5, 2025[173](index=173&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Conditions%20and%20Results%20of%20Operations) Improved Q2 2025 results are attributed to higher natural gas prices and derivative gains, despite a slight production decline, supported by strong liquidity of $884.9 million and ongoing capital return initiatives [2025 Operational and Financial Highlights](index=37&type=section&id=2025%20Operational%20and%20Financial%20Highlights) Q2 2025 highlights include **1,006.3 MMcfe/day** net production, **13.8 net wells** turned to sales, **$231.4 million** operating cash flow, **$65.0 million** in share repurchases, and **$884.9 million** total liquidity - Reported total net production of **1,006.3 MMcfe per day**[185](index=185&type=chunk) - Turned to sales **14 gross (13.8 net) operated wells**[185](index=185&type=chunk) - Generated **$231.4 million of operating cash flows**[185](index=185&type=chunk) - Repurchased **338,886 shares for $65.0 million**[185](index=185&type=chunk) - Exited the quarter with total liquidity of **$884.9 million**[185](index=185&type=chunk) [2025 Production and Drilling Activity](index=37&type=section&id=2025%20Production%20and%20Drilling%20Activity) Q2 2025 net production averaged **1,006.3 MMcfe/day**, a decrease from Q2 2024 due to natural declines and midstream issues, with drilling focused in Utica/Marcellus and SCOOP regions Average Daily Production by Basin (Q2) | Basin | Q2 2025 (Mcfe/day) | Q2 2024 (Mcfe/day) | | :--- | :--- | :--- | | Utica & Marcellus | 800,557 | 836,892 | | SCOOP | 205,742 | 213,245 | | **Total** | **1,006,299** | **1,050,137** | - The decline in daily production was primarily due to natural declines from the timing of development programs and the impact of unplanned, third-party midstream outages and constraints[184](index=184&type=chunk) - Drilling activity in Q2 2025 included spudding **4.0 net wells** in the Utica and turning to sales **8.0 net Utica wells**, **4.0 net Marcellus wells**, and **1.8 net SCOOP wells**[188](index=188&type=chunk)[189](index=189&type=chunk) [Comparison of Quarter-to-Date (Q2 2025 vs Q2 2024)](index=39&type=section&id=Comparison%20of%20Quarter-to-Date) Q2 2025 total sales revenue increased **64% to $311.5 million**, driven by an **82% rise** in natural gas prices, while LOE increased **11%** and interest expense decreased **9%** Average Realized Price Comparison (Q2) | Commodity | Avg. Price Q2 2025 (w/o derivatives) | Avg. Price Q2 2024 (w/o derivatives) | | :--- | :--- | :--- | | Natural Gas ($/Mcf) | $2.97 | $1.63 | | Oil & Condensate ($/Bbl) | $58.20 | $76.51 | | NGL ($/Bbl) | $27.91 | $28.18 | - The increase in natural gas sales was due to an **82% increase in realized prices**, driven by a higher Henry Hub index, partially offset by an **8% decrease in sales volumes**[194](index=194&type=chunk) - Total lease operating expenses (LOE) increased by **11% to $17.6 million**, primarily due to higher water hauling and labor expenses[198](index=198&type=chunk) - Interest expense decreased by **9%** due to the tender offer and redemption of the 2026 Senior Notes, partially offset by interest on the new 2029 Senior Notes[203](index=203&type=chunk) [Comparison of Year-to-Date (Six Months 2025 vs 2024)](index=44&type=section&id=Comparison%20of%20Year-to-Date) YTD 2025 total sales revenue increased **53% to $655.1 million**, driven by a **78% rise** in natural gas prices, with LOE up **16%** and DD&A expense down **12%** Average Realized Price Comparison (YTD) | Commodity | Avg. Price YTD 2025 (w/o derivatives) | Avg. Price YTD 2024 (w/o derivatives) | | :--- | :--- | :--- | | Natural Gas ($/Mcf) | $3.34 | $1.88 | | Oil & Condensate ($/Bbl) | $61.22 | $73.84 | | NGL ($/Bbl) | $30.92 | $29.48 | - The increase in natural gas sales was due to a **78% increase in realized prices**, partially offset by a **12% decrease in sales volumes**[207](index=207&type=chunk) - Total LOE increased by **16% to $37.9 million**, primarily due to higher costs for water hauling, labor, and weather-related operations[211](index=211&type=chunk) - Depreciation, depletion, and amortization (DD&A) decreased by **12%** due to a lower depletion rate resulting from full cost ceiling test impairments recorded in 2024[214](index=214&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Gulfport reported **$3.8 million** in cash and **$705.0 million** in funded debt, supported by a **$1.1 billion** credit facility borrowing base and **$408.7 million** in YTD operating cash flow - As of June 30, 2025, the company had **$3.8 million in cash**, **$55.0 million outstanding** on its Credit Facility, and **$650.0 million of 2029 Senior Notes**[222](index=222&type=chunk) - The Credit Facility borrowing base was reaffirmed at **$1.1 billion** with elected commitments of **$1.0 billion** as of May 5, 2025[226](index=226&type=chunk) - The company redeemed the remaining **$25.7 million balance** of its 2026 Senior Notes in May 2025[224](index=224&type=chunk) 2025 Capital Expenditure Guidance | Category | Estimated Range | | :--- | :--- | | Operated Drilling & Completion | $335.0M - $355.0M | | Maintenance Leasehold & Land | $35.0M - $40.0M | | Discretionary Acreage Acquisitions | $75.0M - $100.0M | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Gulfport faces commodity price and interest rate risks, mitigated by derivative instruments like swaps and costless collars, with a net derivative liability of **$32.9 million** as of June 30, 2025 - The company's primary market risks are commodity price volatility and interest rate fluctuations on its Credit Facility[248](index=248&type=chunk)[256](index=256&type=chunk) - Gulfport uses derivative instruments, including swaps and costless collars, to manage commodity price risk and enhance revenue predictability[248](index=248&type=chunk)[254](index=254&type=chunk) - As of June 30, 2025, the company's derivative portfolio had a net liability fair value of **$32.9 million**. A hypothetical **10% increase** in commodity prices would increase this liability by approximately **$99.3 million**[255](index=255&type=chunk) [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during Q2 2025 - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[258](index=258&type=chunk) - No changes in internal control over financial reporting occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[260](index=260&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory proceedings, including lawsuits related to lease formations, environmental compliance, and royalty disputes, as detailed in Note 9 - Information regarding legal proceedings is detailed in Note 9 of the consolidated financial statements[262](index=262&type=chunk) [Item 1A. Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - The company refers to the Risk Factors section in its Annual Report on Form 10-K for the year ended December 31, 2024, for a description of factors that could materially affect its business[263](index=263&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, Gulfport repurchased **350,896 shares** of common stock at an average price of **$191.70 per share**, with **338,886 shares** under its publicly announced program Common Stock Repurchase Activity (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 49,264 | $171.91 | | May 2025 | 250,865 | $194.51 | | June 2025 | 50,767 | $196.98 | | **Total** | **350,896** | **$191.70** | - As of June 30, 2025, the approximate maximum dollar value of shares that may yet be purchased under the plans or programs was **$290.9 million**[265](index=265&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, none of the company's officers or directors adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - No officers or directors adopted or terminated any Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[268](index=268&type=chunk) [Item 6. Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The report includes required certifications from the Chief Executive Officer and Chief Financial Officer pursuant to SEC rules, as well as XBRL interactive data files[271](index=271&type=chunk)

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of approximately $212 million during the quarter, with adjusted free cash flow of $64.6 million, reflecting over 70% growth quarter over quarter [15][16] - Net cash provided by operating activities before changes in working capital totaled approximately $198 million, more than funding capital expenditures and common share repurchases while maintaining balance sheet strength [15][16] - The trailing twelve-month net leverage as of June 30 was approximately 0.85 times, down from the prior quarter, benefiting from increasing EBITDA [17][18] Business Line Data and Key Metrics Changes - Average daily production totaled 1,006 million cubic feet equivalent per day, an increase of 8% over the previous year, despite midstream outages impacting production [9][10] - The company executed across all five development areas, with strong well performance noted, particularly in the Utica condensate pad in Southwest Harrison County, which delivered approximately 65% more cumulative oil than Gulfport's lake pad [10][11] Market Data and Key Metrics Changes - The all-in realized price for the second quarter was $3.61 per Mcfe, which is $0.17 above the NYMEX Henry Hub index price, highlighting the benefits of Gulfport's differentiated hedge position [16] - Rising natural gas demand is driven by LNG expansion and increased power generation needs, presenting opportunities for Gulfport and its peers [17] Company Strategy and Development Direction - The company plans to allocate up to $100 million toward discretionary acreage acquisitions to secure future drilling opportunities in the Utica Shale [6][8] - The share repurchase program authorization has been increased by 50% from $1 billion to $1.5 billion, with $65 million of common shares purchased during the quarter [7][21] - The company is committed to maintaining a strong balance sheet while pursuing strategic initiatives that enhance long-term shareholder value [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial position and operational performance, emphasizing a focus on efficiency and shareholder returns [13][22] - The company anticipates a strong natural gas commodity environment in late 2025 and 2026, which should support cash flow growth [19][20] Other Important Information - The company has invested approximately $17 million on maintenance leasehold and land investment through June 30, 2025, with plans to allocate $75 million to $100 million in total during 2025 and early 2026 [12] - The redemption of all outstanding preferred stock is expected to simplify the capital structure and potentially accelerate share repurchase efforts [19][21] Q&A Session Summary Question: Can you elaborate on the leasehold spend and its geographical focus? - The company is targeting 40 to 50 wells in Belmont County, Ohio, and Northern Monroe County, focusing on low breakeven high-quality acreage [24][25] Question: What are the mechanics of the preferred stock redemption? - The company issued a notice for preferred stockholders to decide on conversion or repurchase by September 5, with plans to use liquidity for the redemption [28][30] Question: How will the company allocate free cash flow post-redemption? - The company aims for a leverage target of around one times and will continue to evaluate opportunities for shareholder returns and reinvestment in high-quality locations [35][36] Question: What is the competitive return outlook for the condensate area? - The condensate area remains strong with above 70% IRR, and the company will continue to monitor commodity prices for future activity [41][42] Question: How does the company view participation in power contracting? - The company is likely to participate in power contracting through intermediaries, expecting rising in-basin prices due to increased demand [56][58] Question: What is the production outlook considering midstream constraints? - Most midstream issues have been mitigated, and production is expected to return to normal rates as ongoing projects are completed [84][86] Question: Will there be any impact on share repurchases due to preferred stock redemption? - The company can still execute share repurchases while managing cash flow for the preferred stock redemption, with flexibility in its approach [90][92] Question: Can you discuss the potential for ongoing discretionary acreage acquisitions? - The company has successfully identified opportunities for acquisitions in the Utica and is optimistic about continuing this strategy in the coming years [94][96]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of approximately $212 million during the quarter, with adjusted free cash flow of $64.6 million, reflecting over 70% growth quarter over quarter [12][13] - Net cash provided by operating activities before changes in working capital totaled approximately $198 million during the second quarter, exceeding capital expenditures and common share repurchases while maintaining balance sheet strength [12][13] - Trailing twelve-month net leverage as of June 30 was approximately 0.85 times, down from the prior quarter, indicating improved financial momentum [15][16] Business Line Data and Key Metrics Changes - Average daily production totaled 1,006 million cubic feet equivalent per day, an increase of 8% year-over-year, despite midstream outages impacting production [7][8] - The company executed across all five development areas, achieving strong well performance, particularly in the Utica condensate pad in Southwest Harrison County, which delivered approximately 65% more cumulative oil than Gulfport's lake pad [9][10] Market Data and Key Metrics Changes - The all-in realized price for the second quarter was $3.61 per Mcfe, which is $0.17 above the NYMEX Henry Hub index price, highlighting the benefits of the company's differentiated hedge position and marketing portfolio [14] - Rising natural gas demand is driven by LNG expansion and increased power generation needs, presenting opportunities for Gulfport and its peers [14][15] Company Strategy and Development Direction - The company plans to allocate up to $100 million toward discretionary acreage acquisitions to secure future drilling opportunities and strengthen its inventory runway in the Utica Shale [5][11] - The share repurchase program authorization has been increased by 50% from $1 billion to $1.5 billion, demonstrating a commitment to returning value to shareholders [6][18] - The company aims to redeem all outstanding preferred stock, which could accelerate share repurchase efforts and simplify its capital structure [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic commodity environment while focusing on financial and strategic objectives [12][19] - The company anticipates continued efficiency across operations and plans to bolster its resource base, positioning itself for long-term success [12][19] Other Important Information - The company has invested approximately $17 million on maintenance leasehold and land investment through June 30, 2025, focusing on near-term drilling programs [11] - The company expects its cash tax position to be negligible for 2025, benefiting from a significant NOL position [19] Q&A Session Summary Question: Can you elaborate on the leasehold spend and its geographical focus? - The company is targeting 40 to 50 wells in Belmont County, Ohio, and Northern Monroe County, focusing on low breakeven high-quality acreage [21][22][23] Question: What are the mechanics of the preferred stock redemption? - The company issued a notice for preferred stockholders to decide on conversion or repurchase by September 5, with plans to lean on liquidity for cash redemption [24][26] Question: How will the company allocate free cash flow post-redemption? - The company aims for a leverage target around one times and will continue to evaluate opportunities for high-quality locations while considering shareholder returns [31][32][33] Question: What is the competitive return outlook for the condensate area? - The condensate area remains strong with above 70% IRR, and the company plans to maintain a balanced portfolio while monitoring commodity prices [37][38] Question: Will Gulfport participate in power contracting momentum? - The company is likely to participate through intermediaries and expects rising in-basin prices due to increased demand [54][55] Question: How will the company treat preferred equity post-redemption? - The company plans to absorb cash repurchase under its RBL, with a focus on maintaining leverage around one turn [61][62] Question: What is the expected production trajectory heading into 2026? - The company anticipates a 10% uptick in Q3, with a relatively flat Q4 leading into 2026, focusing on gas and wet gas production [68][69] Question: Will the company consider instituting a base dividend? - The management is monitoring the situation and is satisfied with the current share repurchase strategy, but is open to changes in the future [70][72]

Financial Overview - Gulfport's market capitalization is $3.1 billion as of July 30, 2025[9, 12] - The enterprise value (EV) is $3.8 billion, with an EV/2026 EBITDA multiple of 3.6x[9, 13] - The company has approximately $885 million in liquidity[9] - Gulfport's leverage ratio is approximately 0.85x[9] Production and Capital Expenditure - The estimated total net equivalent production for 2025 is between 1,040 and 1,065 MMcfe/day[9] - Net liquids production for 2025 is estimated to be between 18.0 and 20.5 MBbl/day, with approximately 89% being natural gas[9] - The D&C capital expenditure is projected to be between $335 and $355 million, with an additional $35 to $40 million for maintenance leasehold capital, resulting in a total base capital of $370 to $395 million for 2025[9] - Approximately 80% of the 2025 capital program is allocated to Utica/Marcellus, and 20% to SCOOP[11] - Production mix for 2025 is estimated to be approximately 83% from Utica/Marcellus, 7% from SCOOP, and 10% from Land[11] Shareholder Value and Equity Repurchase - Gulfport has an equity repurchase program with a $1.5 billion authorization, with approximately $709 million already repurchased as of June 30, 2025, retiring approximately 6.2 million shares[17] - The company expects to allocate substantially all FY 2025 adjusted free cash flow, excluding discretionary acreage acquisitions, towards the redemption of preferred equity and common stock repurchases[21] - The total illustrative redemption value for preferred shares is approximately $390 million as of July 30, 2025[26] Reserves and Acreage - Gulfport's YE24 proved reserves in Utica and Marcellus are 3.0 Net Tcfe, with approximately 228,500 net reservoir acres[7] - In SCOOP, the YE24 proved reserves are 1.0 Net Tcfe, with approximately 73,000 net reservoir acres[7]

Core Viewpoint - Gulfport Energy reported quarterly earnings of $4.24 per share, missing the Zacks Consensus Estimate of $5.03 per share, representing an earnings surprise of -15.71% [1] - The company posted revenues of $447.62 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 33.79% [2] Financial Performance - Earnings per share (EPS) for the same quarter last year was $2.91, indicating a year-over-year increase [1] - Gulfport has surpassed consensus EPS estimates three times over the last four quarters [2] - The company has topped consensus revenue estimates just once over the last four quarters [2] Stock Performance - Gulfport shares have declined approximately 9.4% since the beginning of the year, while the S&P 500 has gained 7.6% [3] - The current Zacks Rank for Gulfport is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $6.29, with expected revenues of $366.77 million [7] - For the current fiscal year, the consensus EPS estimate is $22.78 on revenues of $1.44 billion [7] - The outlook for the industry, specifically the Oil and Gas - Exploration and Production - United States sector, is currently in the bottom 31% of Zacks industries, which may impact Gulfport's stock performance [8]

[Production Volumes by Asset Area](index=2&type=section&id=Production%20Volumes%20by%20Asset%20Area) [Production Volumes by Asset Area: Three Months Ended June 30, 2025](index=2&type=section&id=Production%20Volumes%20by%20Asset%20Area%3A%20Three%20months%20ended%20June%2030%2C%202025) For the three months ended June 30, 2025, total natural gas production decreased by 8.3% year-over-year, while oil and condensate production significantly increased by 185.5% Production Volumes by Asset Area: Three Months Ended June 30, 2025 | Production Type | June 30, 2025 (Mcf/day or Bbl/day) | June 30, 2024 (Mcf/day or Bbl/day) | YoY Change (%) | | :---------------- | :--------------------------------- | :--------------------------------- | :------------- | | Natural gas (Total) | 891,359 | 972,487 | -8.3% | | Oil and condensate (Total) | 7,843 | 2,747 | 185.5% | | NGL (Total) | 11,313 | 10,195 | 11.0% | | Combined (Total Mcfe/day) | 1,006,299 | 1,050,137 | -4.2% | - Utica & Marcellus remained the dominant asset area for natural gas production (**736,420 Mcf/day**) and combined equivalents (**800,557 Mcfe/day**) for the three months ended June 30, 2025[3](index=3&type=chunk) [Production Volumes by Asset Area: Six Months Ended June 30, 2025](index=3&type=section&id=Production%20Volumes%20by%20Asset%20Area%3A%20Six%20months%20ended%20June%2030%2C%202025) Over the six months ended June 30, 2025, total natural gas production decreased by 11.1% compared to the prior year, while oil and condensate production more than doubled Production Volumes by Asset Area: Six Months Ended June 30, 2025 | Production Type | June 30, 2025 (Mcf/day or Bbl/day) | June 30, 2024 (Mcf/day or Bbl/day) | YoY Change (%) | | :---------------- | :--------------------------------- | :--------------------------------- | :------------- | | Natural gas (Total) | 864,735 | 973,025 | -11.1% | | Oil and condensate (Total) | 6,570 | 3,038 | 116.3% | | NGL (Total) | 10,641 | 10,113 | 5.2% | | Combined (Total Mcfe/day) | 968,002 | 1,051,929 | -8.0% | - Similar to the three-month period, Utica & Marcellus was the largest contributor to natural gas (**711,829 Mcf/day**) and combined equivalent production (**766,023 Mcfe/day**) for the six months ended June 30, 2025[5](index=5&type=chunk) [Production and Pricing](index=4&type=section&id=Production%20and%20Pricing) [Production and Pricing: Three Months Ended June 30, 2025](index=4&type=section&id=Production%20and%20Pricing%3A%20Three%20months%20ended%20June%2030%2C%202025) For the three months ended June 30, 2025, total sales significantly increased by 64.2% year-over-year, driven by higher natural gas and oil prices Production and Pricing: Three Months Ended June 30, 2025 | Metric | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :-------------------------------------------------- | :------------ | :------------ | :------------- | | Total Sales (Natural gas, oil, NGL) | $311,515 | $189,732 | 64.2% | | Natural Gas Production Volumes (MMcf) | 81,114 | 88,496 | -8.3% | | Oil and Condensate Production Volumes (MBbl) | 714 | 250 | 185.6% | | NGL Production Volumes (MBbl) | 1,030 | 928 | 11.0% | | Average Price, including settled derivatives ($/Mcf) - Natural Gas | $3.19 | $2.66 | 19.9% | | Average Price, including settled derivatives ($/Bbl) - Oil | $61.58 | $75.43 | -18.3% | | Average Price, including settled derivatives ($/Bbl) - NGL | $27.65 | $27.93 | -1.0% | | Total Production Costs ($/Mcfe) | $1.22 | $1.14 | 7.0% | - The impact from settled derivatives on natural gas prices decreased significantly from **$1.03/Mcf** in 2024 to **$0.22/Mcf** in 2025, while for oil, it shifted from a negative impact of **($1.08)/Bbl** to a positive **$3.38/Bbl**[7](index=7&type=chunk) [Production and Pricing: Six Months Ended June 30, 2025](index=5&type=section&id=Production%20and%20Pricing%3A%20Six%20months%20ended%20June%2030%2C%202025) For the six months ended June 30, 2025, total sales increased by 53.1% year-over-year, primarily due to higher natural gas and oil prices Production and Pricing: Six Months Ended June 30, 2025 | Metric | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :-------------------------------------------------- | :------------ | :------------ | :------------- | | Total Sales (Natural gas, oil, NGL) | $655,097 | $427,825 | 53.1% | | Natural Gas Production Volumes (MMcf) | 156,517 | 177,091 | -11.6% | | Oil and Condensate Production Volumes (MBbl) | 1,189 | 553 | 115.0% | | NGL Production Volumes (MBbl) | 1,926 | 1,841 | 4.6% | | Average Price, including settled derivatives ($/Mcf) - Natural Gas | $3.39 | $2.77 | 22.4% | | Average Price, including settled derivatives ($/Bbl) - Oil | $63.68 | $73.38 | -13.2% | | Average Price, including settled derivatives ($/Bbl) - NGL | $30.07 | $28.73 | 4.7% | | Total Production Costs ($/Mcfe) | $1.26 | $1.15 | 9.6% | - The average price for natural gas without the impact of derivatives increased from **$1.88/Mcf** in 2024 to **$3.34/Mcf** in 2025, contributing significantly to the overall sales increase[8](index=8&type=chunk) [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) [Consolidated Statements of Income: Three Months Ended June 30, 2025](index=6&type=section&id=Consolidated%20Statements%20of%20Income%3A%20Three%20months%20ended%20June%2030%2C%202025) For the three months ended June 30, 2025, Gulfport Energy reported a significant turnaround, moving from a net loss to substantial net income Consolidated Statements of Income: Three Months Ended June 30, 2025 | Metric (in thousands, except per share) | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :-------------------------------------- | :------------ | :------------ | :------------- | | Total Revenues | $447,616 | $181,117 | 147.1% | | Net gain (loss) on derivatives | $136,101 | ($8,615) | N/A | | Income (Loss) from Operations | $250,768 | ($18,119) | N/A | | Net Income (Loss) | $184,466 | ($26,212) | N/A | | Net Income (Loss) Attributable to Common Stockholders | $163,040 | ($27,307) | N/A | | Basic EPS | $9.21 | ($1.51) | N/A | | Diluted EPS | $9.12 | ($1.51) | N/A | - Income tax expense shifted from a benefit of **($7,587) thousand** in 2024 to an expense of **$51,670 thousand** in 2025, reflecting the company's improved profitability[10](index=10&type=chunk) [Consolidated Statements of Income: Six Months Ended June 30, 2025](index=7&type=section&id=Consolidated%20Statements%20of%20Income%3A%20Six%20months%20ended%20June%2030%2C%202025) For the six months ended June 30, 2025, Gulfport Energy reported a substantial increase in net income and income from operations compared to the prior year Consolidated Statements of Income: Six Months Ended June 30, 2025 | Metric (in thousands, except per share) | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :-------------------------------------- | :------------ | :------------ | :------------- | | Total Revenues | $644,650 | $464,346 | 38.8% | | Net (loss) gain on derivatives | ($10,447) | $36,521 | N/A | | Income from Operations | $262,782 | $63,647 | 312.9% | | Net Income | $184,002 | $25,823 | 612.5% | | Net Income Attributable to Common Stockholders | $161,951 | $20,154 | 703.6% | | Basic EPS | $9.10 | $1.11 | 719.8% | | Diluted EPS | $9.01 | $1.09 | 726.6% | - Operating expenses decreased by **4.7%** year-over-year, contributing to the significant increase in income from operations[12](index=12&type=chunk) [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) [Consolidated Balance Sheets as of June 30, 2025](index=8&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025) As of June 30, 2025, Gulfport Energy's total assets increased by 3.3% from December 31, 2024, primarily driven by an increase in net property and equipment Consolidated Balance Sheets as of June 30, 2025 | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change (%) | | :-------------------------------------- | :------------ | :---------------- | :--------- | | Total Assets | $2,959,457 | $2,865,697 | 3.3% | | Total Current Assets | $197,923 | $231,313 | -14.4% | | Total Property and Equipment, Net | $2,189,797 | $2,018,271 | 8.5% | | Total Liabilities | $1,162,422 | $1,116,956 | 4.1% | | Total Current Liabilities | $389,619 | $345,508 | 12.8% | | Long-term debt | $695,154 | $702,857 | -1.1% | | Total Stockholders' Equity | $1,765,679 | $1,711,393 | 3.2% | - Cash and cash equivalents increased significantly from **$1,473 thousand** at December 31, 2024, to **$3,794 thousand** at June 30, 2025, representing a **157.6%** increase[14](index=14&type=chunk) - Accounts receivable—oil, natural gas, and natural gas liquids sales decreased by **17.5%** from **$155,942 thousand** to **$128,614 thousand**[14](index=14&type=chunk) [Consolidated Statement of Cash Flows](index=10&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) [Consolidated Statement of Cash Flows: Three Months Ended June 30, 2025](index=10&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%3A%20Three%20months%20ended%20June%2030%2C%202025) For the three months ended June 30, 2025, net cash provided by operating activities increased significantly, primarily due to a shift from net loss to net income and a large net gain on derivative instruments Consolidated Statement of Cash Flows: Three Months Ended June 30, 2025 | Metric (in thousands) | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :-------------------------------------- | :------------ | :------------ | :------------- | | Net cash provided by operating activities | $231,403 | $123,465 | 87.4% | | Net cash used in investing activities | ($145,188) | ($127,546) | 13.8% | | Net cash used in financing activities | ($87,763) | ($2,895) | 2931.2% | | Net change in cash and cash equivalents | ($1,548) | ($6,976) | -77.8% | | Cash and cash equivalents at end of period | $3,794 | $1,233 | 207.7% | - Principal payments on the Credit Facility increased from **$208,000 thousand** in 2024 to **$286,000 thousand** in 2025, and common stock repurchases under the Repurchase Program increased from **$24,302 thousand** to **$51,691 thousand**[18](index=18&type=chunk) [Consolidated Statement of Cash Flows: Six Months Ended June 30, 2025](index=11&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%3A%20Six%20months%20ended%20June%2030%2C%202025) For the six months ended June 30, 2025, net cash provided by operating activities increased significantly, driven by higher net income Consolidated Statement of Cash Flows: Six Months Ended June 30, 2025 | Metric (in thousands) | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :-------------------------------------- | :------------ | :------------ | :------------- | | Net cash provided by operating activities | $408,683 | $311,487 | 31.2% | | Net cash used in investing activities | ($253,965) | ($246,498) | 3.0% | | Net cash used in financing activities | ($152,397) | ($65,685) | 132.0% | | Net change in cash and cash equivalents | $2,321 | ($696) | N/A | | Cash and cash equivalents at end of period | $3,794 | $1,233 | 207.7% | - Repurchase of common stock under the Repurchase Program increased from **$38,793 thousand** in 2024 to **$109,500 thousand** in 2025. The company also had an early retirement of 2026 Senior Notes totaling **$25,702 thousand**[20](index=20&type=chunk) [2025E Guidance](index=12&type=section&id=2025E%20Guidance) Gulfport Energy's 2025 guidance projects average daily gas equivalent production between 1,040 and 1,065 MMcfe/day, with liquids production ranging from 18.0 to 20.5 MBbl/day 2025E Guidance Metrics | Metric | Low | High | | :-------------------------------------------------- | :---- | :---- | | Average daily gas equivalent (MMcfe/day) | 1,040 | 1,065 | | Average daily liquids production (MBbl/day) | 18.0 | 20.5 | | % Gas | ~89% | | | Natural gas differential to NYMEX settled price ($/Mcf) | ($0.20) | ($0.35) | | NGL (% of WTI) | 40% | 50% | | Oil differential to NYMEX WTI ($/Bbl) | ($5.50) | ($6.50) | | Lease operating expense ($/Mcfe) | $0.19 | $0.22 | | Taxes other than income ($/Mcfe) | $0.08 | $0.10 | | Transportation, gathering, processing and compression ($/Mcfe) | $0.93 | $0.97 | | Recurring cash general and administrative ($/Mcfe) | $0.12 | $0.14 | | Total base capital expenditures (in millions) | $370 | $395 | - The guidance assumes commodity strip prices as of July 14, 2025, adjusted for applicable differentials, and no property acquisitions or divestitures[21](index=21&type=chunk) [Derivatives](index=13&type=section&id=Derivatives) As of July 30, 2025, Gulfport Energy has various hedging positions across natural gas, oil, and NGLs for 3Q2025, 4Q2025, and full years 2025, 2026, and 2027 Derivative Positions as of July 30, 2025 | Contract Type | Period | Volume (BBtupd/Bblpd) | Weighted Average Price ($/MMBtu or $/Bbl) | | :-------------------------------- | :----- | :-------------------- | :---------------------------------------- | | Natural Gas Fixed Price Swaps | Full Year 2025 | 270 | $3.82 | | Natural Gas Fixed Price Collars | Full Year 2025 | 240 | Floor: $3.42, Ceiling: $4.27 | | Natural Gas Fixed Price Calls Sold | Full Year 2025 | 187 | $5.84 | | Oil Fixed Price Swaps | Full Year 2025 | 3,000 | $73.29 | | C3 Propane Fixed Price Swaps | Full Year 2025 | 3,000 | $29.89 | | Tetco M2 Basis Differential | Full Year 2025 | 230 | ($0.96) | | Rex Zone 3 Basis Differential | Full Year 2025 | 110 | ($0.20) | - Gulfport has natural gas fixed price swaps extending through **2027** and collars through **2027**, indicating a long-term hedging strategy for a portion of its natural gas production[25](index=25&type=chunk) - Oil fixed price swaps are in place for **3Q2025**, **4Q2025**, and **Full Year 2025**, but no oil swaps are listed for **2026** or **2027**[25](index=25&type=chunk) [Non-GAAP Reconciliations](index=14&type=section&id=Non-GAAP%20Reconciliations) [Definitions of Non-GAAP Financial Measures](index=14&type=section&id=Definitions) Gulfport Energy utilizes several non-GAAP financial measures, including Adjusted Net Income, Adjusted EBITDA, Adjusted Free Cash Flow, and Recurring General and Administrative Expense, to evaluate performance and provide additional insights to investors - Adjusted Net Income is defined as net income (loss) adjusted for non-cash derivative loss (gain), non-recurring G&A, stock-based compensation, other non-material expenses, and the tax effect of these adjustments[29](index=29&type=chunk) - Adjusted EBITDA is calculated as net income (loss) plus interest expense, income tax expense (benefit), DD&A and accretion, non-cash derivative loss (gain), non-recurring G&A, stock-based compensation, and other non-material expenses[30](index=30&type=chunk) - Adjusted Free Cash Flow is defined as adjusted EBITDA plus certain non-cash items from operating activities, less interest expense, current income tax expense, capitalized expenses incurred, and capital expenditures incurred[31](index=31&type=chunk) [Adjusted Net Income](index=15&type=section&id=Adjusted%20Net%20Income) Adjusted Net Income, a non-GAAP measure, showed a significant increase for both the three and six months ended June 30, 2025, compared to the prior year Adjusted Net Income: Three and Six Months Ended June 30 **Three Months Ended June 30:** | Metric (in thousands) | 2025 | 2024 | YoY Change (%) | | :-------------------- | :--- | :--- | :------------- | | Net Income (Loss) (GAAP) | $184,466 | ($26,212) | N/A | | Non-cash derivative (gain) loss | ($116,661) | $99,357 | N/A | | Tax effect of adjustments | $24,469 | ($23,730) | N/A | | Adjusted Net Income (Non-GAAP) | $97,104 | $53,998 | 79.8% | **Six Months Ended June 30:** | Metric (in thousands) | 2025 | 2024 | YoY Change (%) | | :-------------------- | :--- | :--- | :------------- | | Net Income (GAAP) | $184,002 | $25,823 | 612.5% | | Non-cash derivative loss | $19,997 | $119,543 | -83.3% | | Tax effect of adjustments | ($6,021) | ($27,936) | -78.5% | | Adjusted Net Income (Non-GAAP) | $205,511 | $125,101 | 64.3% | - Income taxes were approximately **22%** for both the three and six months ended June 30, 2025, consistent with the prior year[34](index=34&type=chunk)[37](index=37&type=chunk) [Adjusted EBITDA](index=17&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA, a key non-GAAP liquidity measure, demonstrated strong growth for both the three and six months ended June 30, 2025 Adjusted EBITDA: Three and Six Months Ended June 30 **Three Months Ended June 30:** | Metric (in thousands) | 2025 | 2024 | YoY Change (%) | | :-------------------- | :--- | :--- | :------------- | | Net Income (Loss) (GAAP) | $184,466 | ($26,212) | N/A | | DD&A and accretion | $74,230 | $79,120 | -6.2% | | Non-cash derivative (gain) loss | ($116,661) | $99,357 | N/A | | Adjusted EBITDA (Non-GAAP) | $212,266 | $164,419 | 29.1% | **Six Months Ended June 30:** | Metric (in thousands) | 2025 | 2024 | YoY Change (%) | | :-------------------- | :--- | :--- | :------------- | | Net Income (GAAP) | $184,002 | $25,823 | 612.5% | | DD&A and accretion | $140,470 | $159,698 | -12.0% | | Non-cash derivative loss | $19,997 | $119,543 | -83.3% | | Adjusted EBITDA (Non-GAAP) | $430,583 | $350,162 | 23.0% | - The significant positive adjustment for non-cash derivative gain in 2025 (three months) and a smaller loss in 2025 (six months) compared to large losses in 2024, played a crucial role in the higher Adjusted EBITDA[39](index=39&type=chunk)[41](index=41&type=chunk) [Adjusted Free Cash Flow](index=19&type=section&id=Adjusted%20Free%20Cash%20Flow) Adjusted Free Cash Flow, a non-GAAP measure indicating cash available after capital expenditures, saw substantial increases for both the three and six months ended June 30, 2025 Adjusted Free Cash Flow: Three and Six Months Ended June 30 **Three Months Ended June 30:** | Metric (in thousands) | 2025 | 2024 | YoY Change (%) | | :-------------------- | :--- | :--- | :------------- | | Net cash provided by operating activity (GAAP) | $231,403 | $123,465 | 87.4% | | Capital expenditures incurred | ($127,399) | ($123,141) | 3.5% | | Adjusted Free Cash Flow (Non-GAAP) | $64,589 | $20,196 | 219.8% | **Six Months Ended June 30:** | Metric (in thousands) | 2025 | 2024 | YoY Change (%) | | :-------------------- | :--- | :--- | :------------- | | Net cash provided by operating activity (GAAP) | $408,683 | $311,487 | 31.2% | | Capital expenditures incurred | ($289,762) | ($249,379) | 16.2% | | Adjusted Free Cash Flow (Non-GAAP) | $101,191 | $59,044 | 71.4% | - For the three months ended June 30, 2025, incurred capital expenditures included **$2.9 million** of non-D&C capital and **$0.3 million** of non-operated capital expenditures, excluding **$6.9 million** in targeted discretionary acreage acquisitions[44](index=44&type=chunk) - For the six months ended June 30, 2025, incurred capital expenditures included **$4.3 million** of non-D&C capital and **$1.5 million** of non-operated capital expenditures, also excluding **$6.9 million** in targeted discretionary acreage acquisitions[49](index=49&type=chunk) [Recurring General and Administrative Expenses](index=21&type=section&id=Recurring%20General%20and%20Administrative%20Expenses) Recurring General and Administrative (G&A) expenses, a non-GAAP measure, showed a slight increase for both the three and six months ended June 30, 2025 Recurring General and Administrative Expenses: Three and Six Months Ended June 30 **Three Months Ended June 30:** | Metric (in thousands) | 2025 | 2024 | YoY Change (%) | | :-------------------- | :--- | :--- | :------------- | | General and administrative expense (GAAP) | $10,926 | $10,752 | 1.6% | | Capitalized general and administrative expense | $6,433 | $6,330 | 1.6% | | Non-recurring general and administrative expense | ($666) | ($718) | -7.2% | | Recurring general and administrative before capitalization (Non-GAAP) | $16,693 | $16,364 | 2.0% | **Six Months Ended June 30:** | Metric (in thousands) | 2025 | 2024 | YoY Change (%) | | :-------------------- | :--- | :--- | :------------- | | General and administrative expense (GAAP) | $19,927 | $19,950 | -0.1% | | Capitalized general and administrative expense | $12,665 | $12,035 | 5.2% | | Non-recurring general and administrative expense | ($1,031) | ($1,528) | -32.6% | | Recurring general and administrative before capitalization (Non-GAAP) | $31,561 | $30,457 | 3.6% | - The non-recurring general and administrative expenses, related to the administration of the prior Chapter 11 filing, decreased for both periods, indicating a reduction in these specific costs[53](index=53&type=chunk)[55](index=55&type=chunk)

Zacks Consensus Estimate This natural gas producer is expected to post quarterly earnings of $5.03 per share in its upcoming report, which represents a year-over-year change of +72.9%. Revenues are expected to be $334.57 million, up 84.7% from the year-ago quarter. Estimate Revisions Trend Gulfport Energy (GPOR) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the ...

Core Viewpoint - Gulfport Energy Corporation's stock is experiencing a nearly 5% increase as investors anticipate strong second-quarter earnings due to a strategic reevaluation of capital spending plans [1] Group 1: Strategic Changes - The company is reallocating resources towards dry gas development, including the addition of a four-well dry gas Utica pad, while adjusting the schedule for its wet gas Marcellus pad [1][4] - This proactive approach may allow Gulfport to accelerate completions if natural gas market conditions remain favorable, potentially leading to low single-digit growth in 2026 [2][6] Group 2: Analyst Outlook - JP Morgan analyst Zach Parham has reiterated an Overweight rating on Gulfport Energy, raising the price forecast from $208 to $236, anticipating a robust second quarter [3][4] - Parham estimates cash flow per share (CFPS) at $11.07, slightly above the Street estimate of $10.77, with EBITDA forecasted at $208 million, modestly below the consensus of $223 million [6] Group 3: Production and Financials - Estimated production is projected at 1,037 MMcfe/d, representing a 12% sequential increase, with oil output expected at 8.1 MBo/d, exceeding the 7.0 MBo/d consensus [7] - Capital expenditures for the quarter are expected to be around $124 million, slightly exceeding consensus, with an anticipated $65 million in free cash flow, of which $58 million is allocated to share buybacks [7][8]