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)

Core Viewpoint - Gulfport Energy (GPOR) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on August 5, with a consensus EPS estimate of $5.03 per share, reflecting a year-over-year increase of +72.9%. Revenues are projected to be $334.57 million, up 84.7% from the previous year [3][2]. - The consensus EPS estimate has been revised 13.93% lower over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that Gulfport's Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%. The stock currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [12]. - Historically, Gulfport has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +8.14% in the last reported quarter [13][14]. Industry Context - In the broader industry context, W&T Offshore (WTI) is expected to report a loss of $0.14 per share for the same quarter, indicating a year-over-year change of -180%. Its revenue is projected to be $135.53 million, down 5.1% from the previous year [18]. - W&T Offshore's consensus EPS estimate has been revised 6.3% lower, but it has a positive Earnings ESP of +16.28%, suggesting a likelihood of beating the consensus EPS estimate [19][20].

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]

Financial Highlights - Gulfport Energy's market capitalization is $3.1 billion as of April 30, 2025 [7] - The enterprise value (EV) is $3.8 billion, with an EV/2026 EBITDA multiple of 3.8x [7] - The company has approximately $906 million in liquidity [7] - Gulfport has a leverage ratio of 0.92x [7] - Gulfport has a common stock repurchase program authorizing purchases up to $1.0 billion of outstanding shares [15, 19] Production and Capital Expenditure - The company's 2025E total base capital is projected to be between $370 million and $395 million [7] - Gulfport anticipates a 2025E total net equivalent production of 1,040 to 1,065 MMcfe/day [7] - Net liquids production for 2025E is estimated to be 18.0 to 20.5 MBbl/day [7] - Approximately 89% of the company's production is natural gas [7] - Gulfport expects liquids production to increase by over 30% compared to FY 2024 [29] Reserves and Acreage - Gulfport's YE24 proved reserves in Utica and Marcellus are 3.0 Net Tcfe across approximately 228,500 net reservoir acres [6] - SCOOP YE24 proved reserves are 1.0 Net Tcfe across approximately 73,000 net reservoir acres [6]

[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** |