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]

PART I FINANCIAL INFORMATION [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20%28Unaudited%29%3A) Gulfport Energy reported a net loss of $0.5 million for Q1 2025, a significant decline from $52.0 million net income in Q1 2024, primarily due to a $146.5 million derivative loss, with total assets increasing to $2.95 billion and operating cash flow at $177.3 million [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $2.95 billion, total liabilities rose to $1.26 billion due to derivative liabilities, and stockholders' equity decreased to $1.66 billion Consolidated Balance Sheet Highlights (in thousands of US dollars) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $205,294 | $231,313 | | **Total property and equipment, net** | $2,121,446 | $2,018,271 | | **Total assets** | **$2,947,585** | **$2,865,697** | | **Total current liabilities** | $477,538 | $345,508 | | **Total liabilities** | **$1,259,199** | **$1,116,956** | | **Total stockholders' equity** | **$1,655,499** | **$1,711,393** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, the company reported a net loss of $0.5 million, a significant decline from $52.0 million net income in Q1 2024, primarily due to a $146.5 million net loss on derivative instruments Statement of Operations Summary (in thousands of US dollars, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues | $197,034 | $283,229 | | Net (loss) gain on derivatives | $(146,548) | $45,136 | | Income from operations | $12,014 | $81,766 | | Net (loss) income | $(464) | $52,035 | | Net (loss) income per diluted share | $(0.07) | $2.34 | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased from $1.71 billion to $1.66 billion by March 31, 2025, primarily due to a $60.6 million common stock repurchase and a $0.5 million net loss - During Q1 2025, the company repurchased common stock for **$60.6 million**, contributing to a decrease in total stockholders' equity[35](index=35&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was $177.3 million in Q1 2025, with $108.8 million used in investing and $64.6 million in financing activities, resulting in $5.3 million cash at quarter-end Cash Flow Summary (in thousands of US dollars) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $177,280 | $188,022 | | Net cash used in investing activities | $(108,777) | $(118,952) | | Net cash used in financing activities | $(64,634) | $(62,790) | | **Net change in cash** | **$3,869** | **$6,280** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, debt structure, and derivative activities, highlighting the company's single segment operation, no impairment charges, $700.4 million total debt, $149.5 million net derivative liability, and ongoing legal proceedings - The company operates as a single reportable segment focused on natural gas, oil, and NGL production in the Appalachia and Anadarko basins[40](index=40&type=chunk)[48](index=48&type=chunk) - Under the full cost method, the net book value of oil and gas properties was below the calculated ceiling, resulting in no impairment charge for Q1 2025 or Q1 2024[55](index=55&type=chunk) - Total long-term debt as of March 31, 2025, was **$700.4 million**, primarily consisting of **$650.0 million** in 6.750% senior notes due 2029 and **$35.0 million** outstanding on the Credit Facility[61](index=61&type=chunk) - The company is involved in several legal proceedings, including a class action lawsuit alleging underpayment of royalties and a matter with the USEPA regarding alleged untimely repairs under a Consent Decree, which may result in monetary sanctions over **$300,000**[110](index=110&type=chunk)[112](index=112&type=chunk) [Management's Discussion and Analysis of Financial Conditions and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Conditions%20and%20Results%20of%20Operations) Management discusses a decrease in net production to 929.3 MMcfe per day in Q1 2025, an increase in sales revenue (excluding derivatives) by 44% to $343.6 million, a net loss due to derivative impacts, and strong liquidity of $906.5 million [2025 Operational and Financial Highlights](index=33&type=section&id=2025%20Operational%20and%20Financial%20Highlights) Q1 2025 highlights include net production of 929.3 MMcfe per day, $177.3 million in operating cash flow, $60.0 million in share repurchases, and $906.5 million in total liquidity - Key achievements for Q1 2025 include[168](index=168&type=chunk) - Total net production of **929.3 MMcfe per day** - Generated **$177.3 million** of operating cash flows - Repurchased **340,664 shares** for **$60.0 million** - Exited the quarter with total liquidity of **$906.5 million** [2025 Production and Drilling Activity](index=33&type=section&id=2025%20Production%20and%20Drilling%20Activity) Q1 2025 net production averaged 929.3 MMcfe per day, a decrease from Q1 2024, with drilling focused on the Utica/Marcellus region where eight wells were spud and seven turned to sales Average Daily Production | Production | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Natural gas (Mcf/day) | 837,816 | 973,564 | | Oil and condensate (Bbl/day) | 5,282 | 3,329 | | NGL (Bbl/day) | 9,962 | 10,031 | | **Combined (Mcfe/day)** | **929,280** | **1,053,722** | - Drilling activity in Q1 2025 was focused on the Utica/Marcellus, where eight gross wells were spud and seven were turned to sales[165](index=165&type=chunk)[166](index=166&type=chunk) - No wells were spud or turned to sales in the SCOOP[165](index=165&type=chunk)[166](index=166&type=chunk) [Comparison of Quarter-to-Date](index=34&type=section&id=Comparison%20of%20Quarter-to-Date) Q1 2025 saw natural gas sales revenue increase by 50% due to a 76% rise in realized prices, despite a $146.5 million net derivative loss, while LOE increased 21% and DD&A decreased 18% Revenue and Production Cost Comparison (per Mcfe) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Avg. price w/o derivatives ($/Mcfe) | $4.11 | $2.48 | | Avg. price w/ settled derivatives ($/Mcfe) | $3.99 | $3.16 | | Avg. lease operating expenses ($/Mcfe) | $0.24 | $0.18 | | Avg. DD&A ($/Mcfe) | $0.78 | $0.83 | | Avg. interest expense ($/Mcfe) | $0.16 | $0.16 | - The increase in natural gas sales was due to a **76%** increase in realized prices, as the average Henry Hub index rose from **$2.24/Mcf** in Q1 2024 to **$3.65/Mcf** in Q1 2025[171](index=171&type=chunk) - Total and per-unit LOE increased primarily due to higher costs for water hauling, labor, and winter weather operations[175](index=175&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through operating cash flow and its Credit Facility, with total funded debt at $710.7 million, a $1.1 billion borrowing base, and estimated 2025 capital expenditures of $335-$355 million - As of March 31, 2025, the company had **$5.3 million** in cash, **$35.0 million** outstanding on its Credit Facility, and total principal debt of **$710.7 million**[186](index=186&type=chunk) - The 2025 capital expenditure budget is estimated at **$335-$355 million** for drilling and completions, plus **$35-$40 million** for land and leasehold investments[199](index=199&type=chunk) Major Sources and Uses of Cash (Q1 2025, in thousands of US dollars) | Item | Amount | | :--- | :--- | | Net cash from operating activities | $177,280 | | Additions to oil and natural gas properties | $(108,231) | | Repurchases of common stock | $(57,809) | | Debt activity, net | $(3,000) | [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages commodity price and interest rate risks through derivatives, holding a $149.5 million net derivative liability as of March 31, 2025, with a 10% price change impacting it by $94-$97 million - The company's primary market risk is commodity price volatility, which it manages through a hedging program using swaps, collars, and other derivatives[208](index=208&type=chunk)[210](index=210&type=chunk) - As of March 31, 2025, the company had a net derivative liability of **$149.5 million**[215](index=215&type=chunk) - A hypothetical **10%** increase in commodity prices would increase this liability by about **$97.2 million**[215](index=215&type=chunk) - The company is exposed to interest rate risk through its Credit Facility[216](index=216&type=chunk) - At March 31, 2025, **$35.0 million** was outstanding under this floating-rate facility[216](index=216&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[218](index=218&type=chunk) - No changes occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting[220](index=220&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) Details on legal proceedings, including class action lawsuits and USEPA disputes, are provided in Note 9 of the consolidated financial statements - For details on legal proceedings, refer to Note 9 of the consolidated financial statements[222](index=222&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the company's 2024 Annual Report on Form 10-K - The company refers to the risk factors disclosed in its 2024 Annual Report on Form 10-K, indicating no material changes[223](index=223&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities in Q1 2025, but repurchased 340,664 shares for approximately $60.0 million under its repurchase program - There were no unregistered sales of equity securities in Q1 2025[224](index=224&type=chunk) Issuer Repurchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 25,086 | $185.83 | | Feb 2025 | 44,127 | $181.09 | | Mar 2025 | 288,271 | $174.52 | | **Total** | **357,484** | **$176.13** | [Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[226](index=226&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[227](index=227&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 trading plans or arrangements during Q1 2025 - No officers or directors adopted or terminated a Rule 10b5-1 trading plan during Q1 2025[228](index=228&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits include required CEO and CFO certifications pursuant to the Securities Exchange Act of 1934 and the Sarbanes-Oxley Act of 2002[231](index=231&type=chunk)

Financial Data and Key Metrics Changes - The company reported net cash provided by operating activities before changes in working capital of approximately $207 million during the first quarter, exceeding capital expenditures despite a capital program that is roughly 75% weighted to the first half of 2025 [12][15] - Adjusted EBITDA for the quarter was approximately $218 million, with adjusted free cash flow of $36.6 million, supported by strong realized pricing and GAAP differentials better than expectations [12][13] - The average realized price for the first quarter was $4.11 per Mcfe, which is $0.45 or 12% above the NYMEX Henry Hub index price, highlighting the benefits of the company's diverse marketing portfolio [14][15] Business Line Data and Key Metrics Changes - Average daily production totaled 929 million cubic feet equivalent per day, aligning with company expectations and on track to meet full year production guidance of 1.04 to 1.065 billion cubic feet equivalent per day [6] - The company completed drilling on 13 gross wells in Ohio during the first quarter, with seven targeting Ohio Utica, four targeting Ohio Marcellus, and two in the SCOOP targeting the Woodford [7] - The company achieved a 28% improvement in footage drilled per day compared to full year 2024, with average spud to rig release days decreasing by over 30% [10] Market Data and Key Metrics Changes - The company is optimistic about opportunities to increase its leasehold footprint, particularly in dry gas and wet gas areas, while remaining cautious about market volatility [7][28] - The natural gas price differential before hedges was an $0.08 per Mcf premium to the average daily NYMEX settled price during the quarter, ahead of analyst consensus expectations [15] Company Strategy and Development Direction - The company plans to shift capital allocation towards natural gas drilling in the second half of 2025, reaffirming full year guidance driven by a forecasted 20% growth in natural gas volumes by the fourth quarter of 2025 [5][11] - The company is focused on maintaining an attractive balance sheet, generating significant free cash flow, and executing a robust shareholder return program [5][11] - The company is committed to developing assets responsibly and allocating capital to the highest value opportunities, with a focus on operational efficiencies [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on a strengthening commodity environment as it enters 2026, improving free cash flow generation and prioritizing capital returns to shareholders [11][16] - The macro environment for natural gas is viewed positively, with expectations for a constructive setup for gas-weighted areas in the portfolio [37][60] Other Important Information - The company repurchased 341,000 shares of common stock for approximately $60 million during the first quarter, with a total of approximately 5.9 million shares repurchased since the inception of the program [16][17] - The company has approximately $356 million available under its $1 billion share repurchase program and plans to return substantially all adjusted free cash flow to shareholders through common stock repurchases [17] Q&A Session Summary Question: Concerns about front-loaded capital program and production decline - Management acknowledged the planned lower volumes in the first quarter and emphasized the shift towards dry gas to stabilize production levels and accelerate cash flows moving forward [21][22] Question: Opportunities in dry gas and wet gas markets - Management indicated a focus on high cash flow opportunities in dry gas and wet gas areas, while remaining cautious about market volatility and ensuring any acquisitions are attractive [26][28] Question: Outperformance of the cage pad compared to the lake pad - Management attributed the outperformance to improved frac design, effective cluster spacing, and better understanding of reservoir dynamics [32][34] Question: Future growth expectations for 2026 - Management noted that while specific guidance for 2026 is not provided, the macro environment for gas is favorable, and the company is shifting towards a more gas-weighted program [37][38] Question: Drilling efficiencies and CapEx guidance - Management confirmed that current efficiencies are modeled into the 2025 CapEx guidance, with potential for further improvements [42][51] Question: Interest in the Borealis pipeline expansion - Management stated that they assess projects like the Borealis pipeline on a netback basis and are open to opportunities that improve netbacks [44][46] Question: Pivot to dry gas Utica acreage - Management explained that the decision to pivot was based on maximizing returns and favorable macro conditions for gas, while still recognizing the economic viability of Marcellus condensate wells [58][60] Question: Changes in hedging strategy with increased liquids exposure - Management indicated that the hedging strategy remains consistent, focusing on protecting downside while maintaining flexibility in decision-making [61][62]

Investor Presentation May 2025 Forward Looking Statements & Non-GAAP Financial Measures This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different fro ...

[Production Volumes by Asset Area](index=2&type=section&id=Production%20Volumes%20by%20Asset%20Area) This section details the company's production volumes for natural gas, oil, and NGLs for the first quarter of 2025 compared to the same period in 2024, broken down by the Utica & Marcellus and SCOOP asset areas Production Volumes by Asset Area (Q1 2025 vs Q1 2024) | Production Volumes | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Natural gas (Mcf/day)** | | | | | Utica & Marcellus | 686,964 | 811,357 | -15.3% | | SCOOP | 150,851 | 162,207 | -7.0% | | **Total** | **837,816** | **973,564** | **-14.0%** | | **Oil and condensate (Bbl/day)** | | | | | Utica & Marcellus | 3,861 | 1,348 | +186.4% | | SCOOP | 1,420 | 1,980 | -28.3% | | **Total** | **5,282** | **3,329** | **+58.7%** | | **NGL (Bbl/day)** | | | | | Utica & Marcellus | 3,495 | 1,981 | +76.4% | | SCOOP | 6,467 | 8,050 | -19.7% | | **Total** | **9,962** | **10,031** | **-0.7%** | | **Combined (Mcfe/day)** | | | | | **Total** | **929,280** | **1,053,722** | **-11.8%** | [Production and Pricing](index=3&type=section&id=Production%20and%20Pricing) This section provides a detailed breakdown of production volumes, sales revenue, and average realized prices for natural gas, oil, and NGLs for Q1 2025 versus Q1 2024 Production and Pricing Summary (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Sales (in thousands)** | $343,582 | $238,093 | | **Total Production (MMcfe)** | 83,635 | 95,889 | | **Avg. Price w/o Derivatives ($/Mcfe)** | $4.11 | $2.48 | | **Avg. Price w/ Derivatives ($/Mcfe)** | $3.99 | $3.16 | - The average realized price for natural gas, before derivatives, increased by **75% year-over-year** from **$2.13/Mcf to $3.73/Mcf**, which was the primary driver for the **44% increase in total sales revenue** despite lower production volumes[5](index=5&type=chunk) Production Costs per Mcfe | Cost Category ($/Mcfe) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Lease operating expenses | $0.24 | $0.18 | | Transportation, gathering, etc. | $0.99 | $0.90 | | **Total Costs** | **$1.31** | **$1.16** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) The company reported a net loss of $0.5 million for Q1 2025, a significant downturn from the $52.0 million net income in Q1 2024 Consolidated Statements of Income (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $197,034 | $283,229 | | Total operating expenses | $185,020 | $201,463 | | **INCOME FROM OPERATIONS** | **$12,014** | **$81,766** | | (LOSS) INCOME BEFORE INCOME TAXES | $(640) | $66,888 | | **NET (LOSS) INCOME** | **$(464)** | **$52,035** | | **NET (LOSS) INCOME PER COMMON SHARE - Diluted** | **$(0.07)** | **$2.34** | - A significant factor in the net loss was the swing in derivative performance, from a **$45.1 million gain in Q1 2024** to a **$146.5 million loss in Q1 2025**[7](index=7&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Gulfport's total assets stood at $2.95 billion, a slight increase from $2.87 billion at year-end 2024 Balance Sheet Summary (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $205,294 | $231,313 | | **Total property and equipment, net** | $2,121,446 | $2,018,271 | | **Total assets** | **$2,947,585** | **$2,865,697** | | **Total current liabilities** | $477,538 | $345,508 | | **Total liabilities** | **$1,259,199** | **$1,116,956** | | **Total stockholders' equity** | **$1,655,499** | **$1,711,393** | - Cash and cash equivalents increased to **$5.3 million** from **$1.5 million** at the end of 2024[9](index=9&type=chunk) - The company initiated a treasury stock position, holding **$2.2 million** in repurchased shares as of March 31, 2025[11](index=11&type=chunk) [Consolidated Statement of Cash Flows](index=7&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the first quarter of 2025, net cash provided by operating activities was $177.3 million, a decrease from $188.0 million in Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$177,280** | **$188,022** | | **Net cash used in investing activities** | **$(108,777)** | **$(118,952)** | | **Net cash used in financing activities** | **$(64,634)** | **$(62,790)** | | Net change in cash and cash equivalents | $3,869 | $6,280 | | Cash and cash equivalents at end of period | $5,342 | $8,209 | - The company significantly increased its stock repurchase program, spending **$57.8 million in Q1 2025** compared to a combined **$29.5 million in Q1 2024**[13](index=13&type=chunk) [Reaffirmed 2025E Guidance](index=8&type=section&id=Reaffirmed%202025E%20Guidance) Gulfport reaffirmed its full-year 2025 guidance, which anticipates average daily production of 1,040 to 1,065 MMcfepd with approximately 89% being natural gas Full Year 2025 Guidance | Metric | Low | High | | :--- | :--- | :--- | | **Production** | | | | Average daily gas equivalent (MMcfepd) | 1,040 | 1,065 | | Average daily liquids production (MBbl/day) | 18.0 | 20.5 | | **Operating Costs ($/Mcfe)** | | | | Lease operating expense | $0.19 | $0.22 | | Transportation, gathering, etc. | $0.93 | $0.97 | | **Capital Expenditures (in millions)** | | | | Total base capital expenditures | $370 | $395 | [Derivatives](index=9&type=section&id=Derivatives) This section outlines Gulfport's hedging positions as of April 30, 2025, covering natural gas, oil, and NGLs 2025 Natural Gas Hedging Summary (NYMEX) | Contract Type | Volume (BBtupd) | Weighted Avg. Price ($/MMBtu) | | :--- | :--- | :--- | | Fixed Price Swaps | 270 | $3.82 | | Fixed Price Collars | 238 | Floor: $3.41 / Ceiling: $4.26 | | Fixed Price Calls Sold | 191 | $5.81 | - The company utilizes various basis swaps (Rex Zone 3, Tetco M2, etc.) to hedge against regional price differentials for its natural gas production[18](index=18&type=chunk) - For 2026, Gulfport has **200 BBtupd of natural gas hedged** with fixed-price swaps at an average price of **$3.64/MMBtu** and **170 BBtupd hedged with collars**[18](index=18&type=chunk) [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section presents financial measures not calculated in accordance with Generally Accepted Accounting Principles (GAAP), used by management for internal planning and performance evaluation [Definitions](index=10&type=section&id=Definitions) This sub-section defines the non-GAAP financial measures used throughout the report, clarifying adjustments made to corresponding GAAP measures - **Adjusted Net Income:** Excludes non-cash derivative effects, non-recurring G&A, stock-based compensation, and their tax effects from GAAP Net Income[22](index=22&type=chunk) - **Adjusted EBITDA:** Calculated by adding back interest expense, taxes, DD&A, non-cash derivative losses, and other non-recurring items to GAAP Net Income[23](index=23&type=chunk) - **Adjusted Free Cash Flow:** Defined as Adjusted EBITDA plus certain non-cash items, less interest expense, current income taxes, and capital expenditures[24](index=24&type=chunk) [Adjusted Net Income](index=11&type=section&id=Adjusted%20Net%20Income) Adjusted Net Income for Q1 2025 was $100.6 million, a significant increase from $70.1 million in Q1 2024, primarily adjusting for a $136.7 million non-cash derivative loss Reconciliation of Net (Loss) Income to Adjusted Net Income (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net (Loss) Income (GAAP)** | **$ (464)** | **$ 52,035** | | Non-cash derivative loss | 136,658 | 20,186 | | Other adjustments | (34,907) | (2,054) | | **Adjusted Net Income (Non-GAAP)** | **$ 100,587** | **$ 70,084** | [Adjusted EBITDA](index=11&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA rose to $218.3 million in Q1 2025, up 17.5% from $185.7 million in Q1 2024, reflecting stronger underlying operational performance Reconciliation of Net (Loss) Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net (Loss) Income (GAAP)** | **$ (464)** | **$ 52,035** | | Interest expense | 13,356 | 15,003 | | Income tax (benefit) expense | (176) | 14,853 | | DD&A and accretion | 66,240 | 80,578 | | Non-cash derivative loss | 136,658 | 20,186 | | Other adjustments | 2,703 | 3,088 | | **Adjusted EBITDA (Non-GAAP)** | **$ 218,317** | **$ 185,743** | [Adjusted Free Cash Flow](index=12&type=section&id=Adjusted%20Free%20Cash%20Flow) The company generated $36.6 million in Adjusted Free Cash Flow in Q1 2025, a slight decrease from $38.8 million in the prior-year quarter Adjusted Free Cash Flow Calculation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Adjusted EBITDA (Non-GAAP)** | **$ 218,317** | **$ 185,743** | | Interest expense | (13,356) | (15,003) | | Current income tax benefit | 169 | — | | Capitalized expenses incurred | (6,165) | (5,654) | | Capital expenditures incurred | (162,362) | (126,238) | | **Adjusted free cash flow (Non-GAAP)** | **$ 36,603** | **$ 38,848** | [Recurring General and Administrative Expenses](index=12&type=section&id=Recurring%20General%20and%20Administrative%20Expenses) Total recurring G&A expenses, including capitalized amounts, were $14.9 million in Q1 2025, compared to $14.1 million in Q1 2024 Recurring G&A Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | G&A expense (GAAP) | $9,001 | $9,198 | | Capitalized G&A expense | $6,232 | $5,706 | | Non-recurring G&A expense | $(365) | $(810) | | **Recurring G&A before capitalization (Non-GAAP)** | **$14,868** | **$14,093** |

Core Insights - Gulfport Energy (GPOR) is positioned to potentially continue its earnings-beat streak in upcoming reports, particularly in the oil and gas exploration and production sector [1] - The company has a history of exceeding earnings estimates, with an average surprise of 18.46% over the last two quarters [1] Earnings Performance - For the last reported quarter, Gulfport achieved earnings of $4.80 per share, surpassing the Zacks Consensus Estimate of $3.90 per share, resulting in a surprise of 23.08% [2] - In the previous quarter, Gulfport's earnings were $3.37 per share against an expected $2.96 per share, delivering a surprise of 13.85% [2] Earnings Estimates and Predictions - Recent estimates for Gulfport have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5] - The current Earnings ESP for Gulfport is +9.31%, suggesting increased analyst optimism regarding its near-term earnings potential [8] Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]

Company Overview - Gulfport Energy Corporation, founded in 1997 and based in Oklahoma City, OK, is involved in the acquisition, exploration, development, and production of oil and natural gas properties in the United States. The company's asset base is primarily focused on natural gas, concentrated in the Utica Shale of Ohio and the SCOOP play in Oklahoma. Gulfport has a combined inventory of over 3,000 gross drilling locations in its two primary plays [12]. Investment Ratings - Gulfport Energy (GPOR) currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of B. The company has a Momentum Style Score of A, and its shares have increased by 3.1% over the past four weeks [13][14]. Earnings Estimates - For fiscal 2025, two analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing from $21.95 to $25.38 per share. Gulfport Energy boasts an average earnings surprise of 3.7% [13].

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.With natural gas strip prices at around $4.50 for 2025 now, Gulfport Energy (NYSE: GPOR ) may be able to generate over $650 million in free cash flow before spending on discretionary acreage acquisitions.Aaron Chow, ...

Financial Data and Key Metrics Changes - In Q4 2024, net cash provided by operating activities before changes in working capital totaled approximately $185 million, more than triple the capital expenditures for the quarter [23] - Reported adjusted EBITDA was $203 million, with adjusted free cash flow of $125 million for the same period, marking the best quarter of 2024 from an adjusted free cash flow perspective [24] - Cash operating costs for Q4 totaled $1.19 per million cubic feet equivalent, better than analyst expectations and within the full year 2024 guidance range [25] Business Line Data and Key Metrics Changes - The company plans to maintain flat total production while growing expected liquids production by 30% year over year in 2025 [9] - In 2024, Gulfport drilled 21 gross wells, primarily focused in the Utica, and completed 19 gross wells, including three SCOOP wells and twelve Utica dry gas wells [16] - The 2025 development program is expected to deliver a reduction of annual operated drilling and completion capital on a per foot basis by approximately 20% compared to 2024 [11] Market Data and Key Metrics Changes - The all-in realized price for Q4 was $3.36 per Mcfe, a $0.57 premium to NYMEX Henry Hub index prices [28] - The company has downside protection covering roughly 50% of 2025 natural gas production at an average floor price of $3.62 per MMBtu [29] - The liquidity as of December 31, 2024, totaled $900 million, providing significant flexibility for future development needs [30] Company Strategy and Development Direction - The 2025 development program focuses on sustaining exposure to a constructive natural gas environment and enhancing hydrocarbon diversification by targeting lean condensate Utica and low-cost Marcellus condensate windows [9] - The company aims to return substantially all 2025 adjusted free cash flow, excluding discretionary acreage acquisitions, through common stock repurchases [10] - Gulfport's strategy includes continuous operational improvements and optimizing asset development to maximize free cash flow generation [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate significant free cash flow in 2025, potentially more than double compared to 2024 [31] - The company remains optimistic about the natural gas price outlook for 2025 and 2026, with plans to maintain significant upside through collar structures on hedges [29] - Management highlighted the strong operational performance and the potential for further capital and production efficiency improvements in future years [36] Other Important Information - The company repurchased approximately 7% of its common shares outstanding in 2024, returning 96% of available adjusted free cash flow to shareholders [15] - The proved reserve base increased by approximately 6% when excluding the impact of pricing revisions, reflecting high-quality inventory additions and operational efficiencies [33] Q&A Session Summary Question: Liquids volume sustainability and bolt-on opportunities - Management confirmed that the 30% liquids growth is sustainable and highlighted the flexibility to allocate resources between gas and liquids [41][43] - The preference for bolt-on opportunities leans towards sizable undeveloped assets rather than PDP-heavy assets [45][46] Question: Capital efficiency and future capital allocation - Management indicated that front-loaded capital programs are conducive to driving capital efficiencies and will likely continue in the future [54] - The company continuously assesses capital allocation options, focusing on share repurchases and inventory additions [58][60] Question: Development strategy and inventory allocation - Management explained the rationale behind the Marcellus development pace and emphasized a long-term commitment to the area [72][74] - The company plans to develop its Marcellus asset over the next several years, utilizing the identified locations [74] Question: Production cadence and capital efficiency - Management noted that production is expected to increase throughout the year, with a focus on optimizing the timing of well turn-ins [82][84] - There is ongoing potential for further efficiency improvements, although gains may be more moderate compared to previous years [87] Question: NGL realizations and market conditions - Management attributed improved NGL realizations to favorable contract terms and strong market conditions for propane and butane [98]

Gulfport Energy Corporation (NYSE:GPOR) Q4 2024 Results Conference Call February 26, 2025 10:00 AM ET Company Participants Jessica Antle - Vice President, Investor Relations John Reinhart - President & Chief Executive Officer Michael Hodges - Executive Vice President & Chief Financial Officer Conference Call Participants Bert Donnes - Truist Securities Jon Mardini - KeyBanc Capital Markets Carlos Escalante - Wolfe Research. Brian Velie - Capital One Securities Noah Hungness - Bank of America Operator Greeti ...