We are currently offering a free two-week trial to Distressed Value Investing . Join our community to receive exclusive research about various companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies.Gulfport Energy Corporation ( GPOR ) reported Q3 2025 results that were in line with expectations. The expectation was for a significant increase in second-half production and free cash flow due to the timing of well ...

Core Insights - Gulfport Energy Corporation has attracted new investment from GeoSphere Capital Management, which acquired a $4 million position, indicating confidence in the company's operational momentum [1][2][6]. Company Overview - Gulfport Energy Corporation is an independent exploration and production company focused on natural gas and liquids-rich resource development in the United States, with significant assets in the Utica Shale and SCOOP plays [5]. - As of the latest report, Gulfport's market capitalization is $4.2 billion, with a revenue of $1.3 billion and a net income of $22.2 million for the trailing twelve months (TTM) [4]. Financial Performance - In the latest quarter, Gulfport reported a net income of $111.4 million and adjusted EBITDA of $213.1 million, with free cash flow reaching $103.4 million [7][8]. - Production increased by 11% sequentially, and the company expanded its undeveloped Marcellus inventory by approximately 125 gross locations [8]. Investment Activity - GeoSphere Capital's new position represents 3% of its $131.7 million in reportable U.S. equity assets, highlighting the significance of this investment relative to the fund's overall portfolio [2]. - Gulfport's stock price has risen 23% over the past year, outperforming the S&P 500, which increased by about 12.5% during the same period [3]. Strategic Initiatives - Gulfport plans to repurchase $325 million of stock in 2025, including $125 million in the fourth quarter, reflecting a commitment to returning capital to shareholders [8]. - The company is focused on growing its inventory and enhancing capital efficiency, which aligns with the interests of specialist investors [6][8].

Core Insights - Silver Point Capital has significantly increased its investment in Gulfport Energy, acquiring an additional 1.7 million shares in Q3, raising its total position to 3.7 million shares valued at approximately $677 million [2][3] - Gulfport Energy's stock has risen 23% over the past year, outperforming the S&P 500, which increased by 13% during the same period [3] Company Overview - Gulfport Energy Corporation is an independent energy producer with a market capitalization of $4.2 billion, generating $1.3 billion in revenue and $22.2 million in net income over the trailing twelve months [4][5] - The company focuses on the exploration, development, and production of natural gas, crude oil, and natural gas liquids, primarily in the Utica Shale and SCOOP regions [5] Recent Performance - In its latest quarter, Gulfport achieved an 11% sequential production growth, generating $213.1 million in adjusted EBITDA and $103.4 million in adjusted free cash flow [8] - The company expanded its undeveloped Marcellus inventory by 200% and repurchased approximately $76 million of its stock, supporting a total planned equity repurchase of $325 million for the year [8] Investment Implications - Silver Point's increased allocation to Gulfport, now constituting 49.1% of its assets under management, indicates strong institutional confidence in the company's growth potential and operational momentum [3][9] - Gulfport's combination of expanding inventory, rising free cash flow, and shareholder returns aligns with the interests of sophisticated energy-focused investors [9]

Core Insights - Gemmstock Limited, a London-based investment manager, has increased its holdings in Gulfport Energy Corporation to over $34 million, reflecting a bullish stance on U.S. energy production and natural gas prices as winter approaches [1][5]. Company Overview - Gulfport Energy Corporation is an independent exploration and production company focused on large-scale natural gas and liquids development in resource-rich shale plays, primarily generating revenue through the exploration, development, and production of hydrocarbon reserves [1][2]. Financial Performance - As of November 11, 2025, Gulfport Energy's shares were priced at $211.88, representing a 29.16% increase over the prior year, outperforming the S&P 500 by 22.65 percentage points [3]. - The stock has generated a total return of 151% since 2022, with a compound annual growth rate (CAGR) of 36%, significantly surpassing the S&P 500's total return of 71% and CAGR of 19.7% during the same period [6]. Institutional Investment Activity - Gemmstock Ltd. disclosed the purchase of 109,979 shares of Gulfport Energy, increasing its stake by approximately $18.33 million, which now accounts for 7.01% of the firm's U.S. equity assets under management (AUM) [4][5]. - The total value of Gemmstock's 13F filing includes 15 reportable U.S. equity positions totaling $486.11 million [4]. Market Position - Gulfport Energy has outperformed key exchange-traded funds (ETFs) in the energy sector, such as the State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the Energy Select Sector SPDR Fund (XLE), which have produced total returns of -9% and 7%, respectively [7]. Investment Consideration - Given the recent large institutional purchase and Gulfport's strong performance history against market and industry benchmarks, it may be a compelling option for investors seeking exposure to the energy sector [8].

Financial Performance - Total revenues for the three months ended September 30, 2025, increased to $379,745,000, up 49.5% from $253,912,000 for the same period in 2024[34] - Natural gas sales for the nine months ended September 30, 2025, reached $759,543,000, a 54.1% increase compared to $492,606,000 for the same period in 2024[37] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $81,407,000, compared to a loss of $15,060,000 in the same period of 2024[34] - The company reported a net income of $295,395,000 for the nine months ended September 30, 2025, compared to $11,856,000 for the same period in 2024[37] - The company reported a net loss of $13,967,000 for the quarter ending September 30, 2024, compared to a net loss of $26,212,000 for the previous quarter[40] - The company reported a net income of $111.4 million for Q3 2025, resulting in a basic EPS of $4.49, compared to a net loss of $14.0 million and an EPS of $(0.83) in Q3 2024[117] - For the nine months ended September 30, 2025, net income was $295.4 million, leading to a basic EPS of $14.73, compared to $11.9 million and an EPS of $0.40 in the same period of 2024[119] Assets and Liabilities - Total assets as of September 30, 2025, were $2,934,995,000, an increase from $2,865,697,000 as of December 31, 2024[32] - Total liabilities decreased slightly to $1,100,686,000 as of September 30, 2025, from $1,116,956,000 as of December 31, 2024[32] - The company’s cash and cash equivalents increased to $3,367,000 as of September 30, 2025, from $1,473,000 as of December 31, 2024[32] - Accounts payable and accrued liabilities totaled $313,900 as of September 30, 2025, compared to $298,081 at the end of 2024, indicating an increase of about 5.3%[54] - Total long-term debt, net, decreased from $702,857,000 as of December 31, 2024, to $691,666,000 as of September 30, 2025[70] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended September 30, 2025, was $617,761, compared to $501,185 in 2024, reflecting an increase of about 23.2%[55] - Capital expenditures for the nine months ended September 30, 2025, totaled $415,639, compared to $393,563 in 2024, showing an increase of approximately 5.6%[61] - The Company plans to invest approximately $355.0 million in operated base drilling and completion capital expenditures for 2025[241] - The Company incurred total lease costs of $24.96 million for the nine months ended September 30, 2025, compared to $30.99 million in 2024[168] Shareholder Activities - The company reported a total of 19.5 million common shares outstanding as of September 30, 2025, compared to 17.8 million as of December 31, 2024[32] - The Share Repurchase Program was increased to $1.5 billion and extended through December 31, 2026[99] - In Q3 2025, the company repurchased 438,266 shares for a total dollar value of $76.3 million, with an average price of $174.01 per share, compared to 341,132 shares for $49.9 million at an average price of $146.17 in Q3 2024[100] - For the nine months ended September 30, 2025, the company repurchased 1,117,816 shares for $201.3 million at an average price of $180.05 per share, up from 711,829 shares for $104.4 million at an average price of $146.60 in the same period of 2024[101] - Since the inception of the Repurchase Program, the company has repurchased a total of 6.7 million shares for $785.4 million at a weighted average price of $117.45 per share[102] Derivative Instruments and Commitments - The company has volume commitments for natural gas delivery totaling 168,000 MMBtu per day, with 80,000 MMBtu per day expected in the remaining 2025[125] - The company has entered into fixed price swap contracts for natural gas with a daily volume of 270,000 MMBtu at an average price of $3.82 per MMBtu for the remaining 2025[140] - The company has a costless collar position for natural gas with a daily volume of 240,000 MMBtu, having a floor price of $3.42 and a ceiling price of $4.27 for the remaining 2025[142] - The company has total commitments related to firm transportation and gathering agreements amounting to $1,079,040,000[123] Legal and Regulatory Matters - The company is involved in various litigation and regulatory proceedings, with total accrued liabilities estimated on a case-by-case basis, indicating potential financial impacts[127] - The company has a consent agreement with the USEPA resolving violations for $454,403 as of September 30, 2025[129] - The company has been named in lawsuits alleging underpayment of royalties, with potential liabilities currently indeterminate[131] Accounting and Tax Matters - The effective income tax rate was 22.0% for the three months ended September 30, 2025, compared to 21.5% for the same period in 2024[171] - The Company has an $82.4 million valuation allowance associated with its federal and state deferred tax assets[172] - There have been no significant changes in the Company's critical accounting policies from those disclosed in the 2024 Annual Report on Form 10-K as of September 30, 2025[255] Stock-Based Compensation - The stock-based compensation expense for Q3 2025 was $4.4 million, compared to $4.0 million in Q3 2024, with total expenses for the nine months reaching $13.8 million versus $12.6 million in the prior year[104] - The aggregate fair value of share-based awards that vested in Q3 2025 was approximately $2.1 million, down from $6.3 million in Q3 2024, while for the nine months, it was $28.9 million compared to $55.5 million in the previous year[109] - As of September 30, 2025, unrecognized compensation expense related to restricted stock units was $15.4 million, expected to be recognized over a weighted average period of 1.9 years[111] - Unrecognized compensation expense related to performance vesting restricted stock units was $9.3 million, expected to be recognized over a weighted average period of 1.75 years[113]

Financial Data and Key Metrics Changes - Gulfport Energy reported net cash provided by operating activities before changes in working capital of approximately $198 million during Q3 2025, which more than funded capital expenditures and common share repurchases [16] - Adjusted EBITDA for the quarter was approximately $213 million, with adjusted free cash flow of approximately $103 million, including about $12.4 million of discretionary capital expenditures [16] - The all-in realized price for Q3 was $3.37 per Mcfe, reflecting a premium of $0.30 above the NYMEX Henry Hub Index price [16][17] Business Line Data and Key Metrics Changes - Average daily production totaled 1.12 billion cubic feet equivalent per day, an increase of 11% over Q2 2025, with a full-year production target of approximately 1.04 billion cubic feet equivalent per day [7] - The company achieved a significant milestone by completing the redemption of preferred equity, simplifying its capital structure and complementing its ongoing equity repurchase program [6][20] Market Data and Key Metrics Changes - Gulfport's marketing and takeaway arrangements improved realized prices, with firm transportation agreements accessing markets that averaged more than $0.50 above the NYMEX Henry Hub index price during Q3 [18] - The company noted an exciting time for the natural gas market driven by LNG expansion and increased demand for natural gas power generation [17] Company Strategy and Development Direction - Gulfport is focused on expanding and responsibly developing high-quality low breakeven inventory while prioritizing shareholder returns [15] - The company has invested over $100 million since mid-2023 towards high-quality, low breakeven locations, enhancing optionality across its portfolio [5] - Gulfport plans to allocate approximately $325 million to common stock repurchases during the year while maintaining financial leverage at or below 1x [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the natural gas market and the company's ability to benefit from improving fundamentals, with a focus on operational execution and optimization [17][27] - The company is positioned to deliver offsetting volumes into a favorable economic commodity price environment, with proactive capital investments planned for 2025 [10][18] Other Important Information - Gulfport's gross undeveloped inventory has increased by more than 40% since year-end 2022, now estimated at approximately 700 gross locations [5] - The company has returned $785 million to shareholders since March 2022 and plans to allocate an incremental $125 million towards repurchases during Q4 2025 [6][20] Q&A Session Summary Question: Improvement in well results - Management highlighted the team's focus on operational execution and optimization of completions and drilling, leading to improved well results [25][26] Question: Capital allocation strategy - Management discussed the balance between share buybacks and potential M&A opportunities, emphasizing the attractiveness of organic growth through existing assets [32][33] Question: Appraisal development wells - The decision to add appraisal development wells this year was driven by robust cash flow and favorable commodity prices, positioning the company for future growth [37][41] Question: Production shape and guidance - Management indicated a front-loaded capital program, expecting strong production in Q3 and Q4, with a slight dip in early 2026 due to midstream constraints [51][54] Question: NGL recoveries and marketing - The company reported strong NGL recoveries from new developments, with favorable contracts enhancing netbacks despite market challenges [94][96] Question: Ohio Energy Opportunity Initiative - Management noted increasing interest in Ohio for data center development and natural gas demand, viewing it as a positive momentum for the region [101][104]

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Company Overview - Gulfport Energy's Utica and Marcellus shale holdings include approximately 249,000 net reservoir acres with year-end 2024 proved reserves of 30 Tcfe and 3Q25 net production of approximately 917 MMcfe/day[7] - The company's SCOOP holdings include approximately 73,000 net reservoir acres with year-end 2024 proved reserves of 10 Tcfe and 3Q25 net production of approximately 203 MMcfe/day[7] - Gulfport Energy has a market capitalization of $35 billion and an enterprise value of $42 billion, with an EV/2026 EBITDA multiple of 42x[9] - The company's liquidity is approximately $903 million and leverage is approximately 081x[9] - Gulfport Energy estimates its 2025 total base capital to be approximately $390 million and total net equivalent production to be approximately 1,040 MMcfe/day[9] Financial Performance and Strategy - Gulfport Energy's equity repurchase program authorizes purchases up to $15 billion, with approximately $785 million repurchased as of September 30, 2025, retiring approximately 67 million shares[18] - The company expects to repurchase approximately $325 million of its outstanding equity during 2025, inclusive of approximately $125 million planned for 4Q2025[18] - Gulfport Energy estimates $28 billion to $36 billion in cumulative adjusted free cash flow from 2026E to 2030E under different NYMEX price scenarios[21] - The company plans to invest $75 million to $100 million on discretionary acreage acquisitions by the end of 1Q2026, expanding net inventory by approximately 2 years[31, 55] Operational Highlights - Gulfport Energy's gross undeveloped inventory has increased by more than 40% since year-end 2022, driven by targeted discretionary acreage acquisitions, Marcellus delineation, and U-development initiatives[31] - The company estimates approximately 700 gross locations and roughly 15 years of net inventory with break-evens below $250 per MMBtu[31] - Gulfport Energy expanded undeveloped Marcellus inventory by approximately 125 gross locations, an increase of 200% in Ohio Marcellus inventory[48]

分组1 - Gulfport Energy reported quarterly earnings of $3.29 per share, missing the Zacks Consensus Estimate of $4.77 per share, and showing a decrease from $3.37 per share a year ago, resulting in an earnings surprise of -31.03% [1] - The company posted revenues of $379.75 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 10.66%, and up from $253.91 million year-over-year [2] - Gulfport has surpassed consensus revenue estimates two times over the last four quarters [2] 分组2 - The stock has added about 5.8% since the beginning of the year, underperforming the S&P 500's gain of 16.5% [3] - The current consensus EPS estimate for the coming quarter is $5.50 on revenues of $359.42 million, and for the current fiscal year, it is $20.93 on revenues of $1.36 billion [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is currently in the bottom 20% of over 250 Zacks industries, indicating potential underperformance [8]

Revenue and Income - Total revenues for the three months ended September 30, 2025, increased to $379.745 million, up from $253.912 million in the same period of 2024, representing a 49.5% increase[10] - For the nine months ended September 30, 2025, total revenues reached $968.038 million, compared to $643.771 million in the same period of 2024, marking a 50.4% increase[11] - Total revenues for the nine months ended September 30, 2025, increased to $1,024,395 thousand, up 42.5% from $718,258 thousand in the same period of 2024[12] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $81.407 million, compared to a net loss of $15.060 million in the same period of 2024[10] - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $263,743 thousand, compared to $7,304 thousand in 2024, representing a significant increase[12] - Basic net income per common share rose to $14.73 for the nine months ended September 30, 2025, compared to $0.40 in the prior year[12] - Net income for the nine months ended September 30, 2025, was $295,395 thousand, a significant increase from $11,856 thousand in the same period of 2024[44] Production and Sales - Natural gas production volumes for the three months ended September 30, 2025, were 90.873 million Mcf, compared to 88.920 million Mcf in the same period of 2024, reflecting a 2.2% increase[7] - Total sales from oil and condensate for the three months ended September 30, 2025, were $37.406 million, up from $29.467 million in the same period of 2024, a 27% increase[10] - Natural gas production volumes for the nine months ended September 30, 2025, were 247.390 million Mcf, down from 266.011 million Mcf in the same period of 2024, a decrease of 7%[8] - Average price of natural gas, including settled derivatives, rose to $2.95 per Mcf for the three months ended September 30, 2025, compared to $2.75 per Mcf in the same period of 2024, a 7.3% increase[7] - Average price of oil and condensate, including settled derivatives, decreased to $63.31 per Bbl for the nine months ended September 30, 2025, from $71.72 per Bbl in the same period of 2024, a decline of 11.7%[8] Operating Expenses and Cash Flow - Total operating expenses decreased to $602,624 thousand for the nine months ended September 30, 2025, from $640,024 thousand in 2024, a reduction of approximately 5.8%[12] - The company reported a net cash provided by operating activities of $617,761 thousand for the nine months ended September 30, 2025, compared to $501,185 thousand in 2024, an increase of 23.2%[20] - Adjusted free cash flow for the nine months ended September 30, 2025, was $204,628 thousand, compared to $131,601 thousand in 2024, representing a growth of approximately 55%[51] - For the three months ended September 30, 2025, adjusted free cash flow was $103,436 thousand, compared to $72,557 thousand in 2024, marking an increase of approximately 42%[46] Capital Expenditures and Debt - Capital expenditures for 2025 are estimated at approximately $390 million for base operations, with an additional $30 million for discretionary appraisal and $35 million for discretionary development[22] - Capital expenditures incurred for the nine months ended September 30, 2025, totaled $379,615 thousand, an increase from $332,633 thousand in the same period of 2024[51] - The company’s long-term debt as of September 30, 2025, was $691,666 thousand, slightly down from $702,857 thousand as of December 31, 2024[16] - Interest expense for the nine months ended September 30, 2025, was $40,677 thousand, down from $46,027 thousand in 2024, reflecting a decrease of about 12%[51] Adjusted Metrics - Adjusted net income for the three months ended September 30, 2025, is reported at $90.25 million, compared to $61.85 million for the same period in 2024[36] - Adjusted EBITDA for the three months ended September 30, 2025, is $213.10 million, an increase from $178.09 million in the prior year[41] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $643,682 thousand, compared to $528,252 thousand for the same period in 2024, reflecting a growth of approximately 22%[44] Operational Efficiency - The company reported a total change in operating assets and liabilities of $(14,555) thousand for the nine months ended September 30, 2025, compared to $(21,247) thousand in 2024, indicating improved operational efficiency[51] - Non-recurring general and administrative expenses for the nine months ended September 30, 2025, were $1,438 thousand, slightly lower than $1,561 thousand in 2024[51] Future Guidance and Plans - The company plans to maintain its 2025 guidance based on commodity strip prices as of October 14, 2025, without any property acquisitions or divestitures[21] - Average daily gas equivalent production is projected to be approximately 1,040 MMcfe/day for the year ending December 31, 2025[22] - Average daily liquids production is expected to range from 18.0 MBbl/day to 20.5 MBbl/day, with gas comprising about 89% of total production[22] - The company anticipates lease operating expenses to be between $0.19 and $0.22 per Mcfe for 2025[22] - The company anticipates total discretionary acreage acquisitions between $75 million and $100 million, with targeted acquisitions of $15.7 million for the nine months ended September 30, 2025[52] Derivative Gains and Losses - Non-cash derivative gains/losses for the three months ended September 30, 2025, include a gain of $33.05 million, contrasting with a loss of $46.91 million in the same period of 2024[41] - The company has fixed price swaps for natural gas totaling 270 BBtupd at a weighted average price of $3.82 per MMBtu for 2025[25] - The company’s oil fixed price swaps volume is 3,000 Bblpd at a weighted average price of $73.29 per Bbl[25]