Financial Highlights - Gulfport's estimated FCF for 2024 is ~$2.1 Billion, and for 2025 is ~$2.9 Billion[2] - Gulfport has a meaningful adjusted free cash flow profile, generating 80% - 130%+ of market capitalization over the next five years[55] - Gulfport's 2023 Adjusted Free Cash Flow Yield is estimated to be ~9%[63] - Gulfport has a common share repurchase program authorizing purchases up to $650 million of its outstanding shares[54] - As of October 26, 2023, Gulfport repurchased ~$335 million of shares at an average price of $86.14 per share, retiring ~3.9 million shares[54,76] Operational Performance - Gulfport plans to allocate ~$40 million toward accretive acreage that extends high quality resource depth and provides optionality for near term development[9] - Gulfport's Utica footprint provides for future Marcellus development[17] - Gulfport's recent development plan has yielded strong results, with 60%+ improvement since 2020 in gross 2-Stream Volume (Bcfe / 1,000' of Lateral)[22] - Gulfport is focused on continuously improving cycle times and reducing operating costs[64] - Gulfport improved methane intensity rate by 25% in 2022 compared to 2021[27]

Financial Performance & Valuation - Gulfport's 2023 adjusted free cash flow yield is estimated to be around 10%[7] - The company's market capitalization is approximately $1.9 billion[27] - The enterprise value is $2.5 billion, with an EV/2023 adjusted EBITDA multiple of 3.5x[27] - Gulfport has liquidity of approximately $732 million[27] - As of July 27, 2023, Gulfport repurchased approximately $325 million of its shares at an average price of $85.51 per share[22] Production & Capital Allocation - Gulfport's Q2 2023 net production was approximately 769.2 MMcfe/day in Utica/Marcellus and 270.1 MMcfe/day in SCOOP[15] - The company plans to allocate approximately $40 million towards discretionary acreage acquisitions in 2023[23] - The total base capital expenditure for 2023 is projected to be between $425 million and $475 million[27] - Gulfport expects to turn-to-sales 20 gross Utica wells and 2 gross Marcellus wells[50] Reserves & Hedging - Gulfport's YE22 proved reserves were 2.9 net Tcfe in Utica/Marcellus and 1.1 net Tcfe in SCOOP[15] - Approximately 55% of the company's projected 2023 production is hedged[72, 74]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of approximately $145 million during the second quarter, with net cash provided by operating activities before changes in working capital totaling approximately $134 million, which funded capital expenditures despite a soft gas macro environment [9][24][47] - The average daily production totaled 1.039 billion cubic feet equivalent per day, exceeding analyst expectations, driven by accelerated well completions and strong performance from the development program [41][67] - The company has reduced its operating unit cost guidance for the full year 2023 to $1.16 to $1.24 per million cubic feet equivalent, an improvement of approximately 4% based on the midpoint of previously issued guidance [6][67] Business Line Data and Key Metrics Changes - The company drilled and rig released eight gross wells during the second quarter, with seven in the Utica, and completed 13 gross wells, including 11 in the Utica and two in the SCOOP [41][63] - The company’s three well Barber Ridge pad in Monroe County continues to outperform historic results, producing in excess of 70 million cubic feet equivalent per day [65] - The average EUR for 1000 feet of lateral in the Utica has improved by over 50% since 2020, while the SCOOP area has seen a 75% improvement in program average EUR per 1000 feet of lateral since 2020 [43][32] Market Data and Key Metrics Changes - The company expects its natural gas basis differential before hedges to average $0.20 to $0.35 below NYMEX for the full year, with current forward prices suggesting a wider differential towards the end of the year [10][33] - The all-in realized price during the second quarter was $2.76 per Mcfe, which is $0.66 above the NYMEX Henry Hub Index price, highlighting the benefits of the company’s diverse marketing portfolio [71] Company Strategy and Development Direction - The company remains focused on disciplined growth, lowering costs, improving operational cycle times, and enhancing returns while maintaining a strong balance sheet [27][69] - The company plans to allocate approximately $40 million from its adjusted free cash flow towards discretionary acreage acquisitions to enhance its high-quality resource depth [28] - The company is committed to returning capital to shareholders through common stock repurchases, having reduced outstanding shares by over 13% since initiating the program [8][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in the natural gas macro environment but expressed confidence in the company’s valuation and operational execution capabilities, viewing the current landscape as a significant investment opportunity [14] - The company anticipates accelerating adjusted free cash flow in the second half of the year, driven by improved commodity prices and operational efficiencies [24][72] - Management emphasized the importance of developing assets efficiently and sustainably, focusing on enhancing margins and optimizing efficiencies [69] Other Important Information - The company incurred capital expenditures of $110.6 million related to drilling and completion activity and $18.7 million related to leasehold and land investment during the second quarter [48] - The company’s liquidity remains strong, totaling $732 million, providing flexibility for future development needs [50][73] Q&A Session Summary Question: What should be expected regarding Marcellus de-risking results? - Management indicated that early results are as expected and they are looking to delineate the liquids content to better understand the economic viability and production profiles [76][77] Question: Is the current hedge position satisfactory for 2024? - Management expressed comfort with the existing hedge position for 2024, indicating flexibility to adjust based on market conditions [83] Question: What is the outlook for capital allocation in the SCOOP area? - Management noted plans to allocate more capital to the Oklahoma SCOOP area in 2024, with expectations of returning to a more historic level of development activity [32][84]

PART I FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Presents unaudited consolidated financial statements, highlighting increased assets and equity, decreased liabilities, and a net income turnaround [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Metric | Dec 31, 2022 (in thousands) | Jun 30, 2023 (in thousands) | Change (in thousands) | :------------------------------------------------------ | :-------------------------- | :-------------------------- | :-------------------- | | Total Assets | $2,534,479 | $2,555,724 | $21,245 | | Total Liabilities | $1,653,349 | $1,131,149 | $(522,200) | | Total Stockholders' Equity | $828,835 | $1,378,116 | $549,281 | | Cash and cash equivalents | $7,259 | $5,269 | $(1,990) | | Accounts receivable—oil, natural gas, and natural gas liquids sales | $278,404 | $92,104 | $(186,300) | | Short-term derivative instruments (asset) | $87,508 | $140,686 | $53,178 | | Short-term derivative instruments (liability) | $343,522 | $59,367 | $(284,155) | | Long-term debt | $694,155 | $648,267 | $(45,888) | | Retained Earnings | $381,872 | $996,028 | $614,156 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Three Months Ended June 30 | Metric | 2023 (in thousands) | 2022 (in thousands) | Change (in thousands) | % Change | | :--------------------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Natural gas sales | $159,246 | $539,090 | $(379,844) | -70.46% | | Oil and condensate sales | $22,602 | $45,009 | $(22,407) | -49.78% | | Natural gas liquid sales | $26,070 | $54,106 | $(28,036) | -51.82% | | Net gain (loss) on natural gas, oil and NGL derivatives | $96,788 | $(172,871) | $269,659 | N/A | | Total revenues | $304,706 | $465,334 | $(160,628) | -34.52% | | Total operating expenses | $202,123 | $190,238 | $11,885 | 6.25% | | Income from operations | $102,583 | $275,096 | $(172,513) | -62.71% | | NET INCOME | $93,687 | $256,580 | $(162,893) | -63.49% | | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $78,365 | $215,610 | $(137,245) | -63.65% | | Basic EPS | $4.23 | $10.42 | $(6.19) | -59.40% | | Diluted EPS | $4.18 | $10.34 | $(6.16) | -59.57% | Six Months Ended June 30 | Metric | 2023 (in thousands) | 2022 (in thousands) | Change (in thousands) | % Change | | :--------------------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Natural gas sales | $441,780 | $944,302 | $(502,522) | -53.22% | | Oil and condensate sales | $53,316 | $75,248 | $(21,932) | -29.15% | | Natural gas liquid sales | $65,982 | $99,390 | $(33,408) | -33.61% | | Net gain (loss) on natural gas, oil and NGL derivatives | $474,849 | $(961,422) | $1,436,271 | N/A | | Total revenues | $1,035,927 | $157,518 | $878,409 | 557.65% | | Total operating expenses | $410,757 | $375,223 | $35,534 | 9.47% | | INCOME (LOSS) FROM OPERATIONS | $625,170 | $(217,705) | $842,875 | N/A | | NET INCOME (LOSS) | $616,741 | $(235,395) | $852,136 | N/A | | NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $521,545 | $(238,223) | $759,768 | N/A | | Basic EPS | $27.91 | $(11.36) | $39.27 | N/A | | Diluted EPS | $27.60 | $(11.36) | $38.96 | N/A | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Metric | Jan 1, 2023 (in thousands) | Jun 30, 2023 (in thousands) | Change (in thousands) | :----------------------------------- | :------------------------- | :-------------------------- | :-------------------- | | Total Stockholders' Equity | $828,835 | $1,378,116 | $549,281 | | Retained Earnings | $381,872 | $996,028 | $614,156 | | Net income (Q1 2023) | N/A | $523,054 | N/A | | Net income (Q2 2023) | N/A | $93,687 | N/A | | Repurchase of common stock | N/A | $(74,231) | N/A | | Dividends on preferred stock | N/A | $(2,585) | N/A | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Metric | Six Months Ended Jun 30, 2023 (in thousands) | Six Months Ended Jun 30, 2022 (in thousands) | Change (in thousands) | :--------------------------------------- | :------------------------------------------- | :------------------------------------------- | :-------------------- | | Net cash provided by operating activities | $411,406 | $383,200 | $28,206 | | Net cash used in investing activities | $(281,593) | $(181,265) | $(100,328) | | Net cash used in financing activities | $(131,803) | $(198,614) | $66,811 | | Net (decrease) increase in cash and cash equivalents | $(1,990) | $3,321 | $(5,311) | | Cash and cash equivalents at end of period | $5,269 | $6,581 | $(1,312) | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Basis of Presentation](index=12&type=section&id=1.%20Basis%20of%20Presentation) - Gulfport is an independent natural gas-weighted E&P company operating in the Utica, Marcellus, and SCOOP Woodford and Springer formations[49](index=49&type=chunk) - Financial statements are unaudited, prepared under GAAP and SEC rules, and assume going concern[50](index=50&type=chunk)[51](index=51&type=chunk) Accounts Payable and Accrued Liabilities (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :------------------------------------------ | :------------ | :---------------- | | Revenue payable and suspense | $149,232 | $222,721 | | Accounts payable | $59,382 | $37,807 | | Accrued transportation, gathering, processing and compression | $34,135 | $56,138 | | Accrued capital expenditures | $30,640 | $36,464 | | Accrued contract rejection damages and shares held in reserve | $1,996 | $40,996 | | Other accrued liabilities | $32,335 | $43,258 | | Total accounts payable and accrued liabilities | $307,720 | $437,384 | - "Other, net" for H1 2023 included **$17.8 million** from an interim TC claim distribution and a **$5.0 million** recoupment of previously placed collateral[53](index=53&type=chunk) [2. Property and Equipment](index=13&type=section&id=2.%20Property%20and%20Equipment) Property and Equipment (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :------------------------------------------ | :------------ | :---------------- | | Proved oil and natural gas properties | $2,695,104 | $2,418,666 | | Unproved properties | $188,461 | $178,472 | | Total property and equipment, net | $2,185,831 | $2,057,730 | | Accumulated DD&A | $(705,153) | $(545,771) | - **No impairment** of **oil and natural gas properties** recorded for Q2 or H1 2023/2022[56](index=56&type=chunk) - Capitalized G&A costs were **$10.5 million** for H1 2023, up from **$9.7 million** for H1 2022[57](index=57&type=chunk) Asset Retirement Obligation (in thousands) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Asset retirement obligation, beginning of period | $33,171 | $28,264 | | Liabilities incurred | $73 | $22 | | Liabilities settled | $(165) | $0 | | Liabilities removed due to divestitures | $(919) | $(7) | | Accretion expense | $1,478 | $1,384 | | Total asset retirement obligation, end of period | $33,638 | $29,663 | [3. Debt](index=14&type=section&id=3.%20Debt) Debt (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :----------------------------------- | :------------ | :---------------- | | 8.0% senior unsecured notes due 2026 | $550,000 | $550,000 | | Credit Facility due 2027 | $99,000 | $145,000 | | Total long-term debt, net | $648,267 | $694,155 | - **Credit Facility elected commitments increased** from **$700 million** to **$900 million**, **borrowing base increased** from **$1 billion** to **$1.1 billion**, and **maturity extended** to May 2027[66](index=66&type=chunk)[217](index=217&type=chunk) - As of June 30, 2023, **$99.0 million** was **outstanding** under the **Credit Facility**, with a weighted average interest rate of **8.13%** for Q2 2023 and **7.85%** for H1 2023[71](index=71&type=chunk) - Fair value of 2026 **Senior Notes** was **$554.3 million** at June 30, 2023, compared to a carrying value of **$549.3 million**[75](index=75&type=chunk) [4. Mezzanine Equity](index=16&type=section&id=4.%20Mezzanine%20Equity) - **Preferred stock decreased** from **52,295 shares** (Dec 31, 2022) to **46,459 shares** (Jun 30, 2023) due to conversions[83](index=83&type=chunk) - **Preferred stock** holders receive **10%** cash or **15%** PIK cumulative quarterly dividends[77](index=77&type=chunk) - **Preferred stock outstanding** at June 30, 2023, could convert to approximately **3.3 million common shares**[78](index=78&type=chunk) [5. Equity](index=17&type=section&id=5.%20Equity) - **Common stock outstanding** was **18.7 million shares** at June 30, 2023, compared to **19.1 million** at December 31, 2022[33](index=33&type=chunk) - The Board approved an **increase** to the share repurchase program from **$300 million** to **$400 million**, expiring March 31, 2024[90](index=90&type=chunk)[163](index=163&type=chunk) Share Repurchase Program Activity (in thousands, except per share) | Period | Shares Purchased | Dollar Value | Average Price Paid | | :----------------- | :--------------- | :----------- | :----------------- | | First quarter 2023 | 459 | $32,873 | $71.61 | | Second quarter 2023 | 442 | $41,358 | $93.67 | | Total H1 2023 | 901 | $74,231 | $82.42 | - As of June 30, 2023, approximately **$75 million remained authorized** under the **$400 million** repurchase program[257](index=257&type=chunk) [6. Stock-Based Compensation](index=19&type=section&id=6.%20Stock-Based%20Compensation) - H1 2023 **stock-based compensation expense** was **$5.6 million** (**$1.9 million** capitalized), up from **$3.9 million** (**$1.3 million** capitalized) in H1 2022[92](index=92&type=chunk) - **Unrecognized compensation expense** for restricted stock units was **$15.7 million** (**2.23 years** weighted average) and for performance vesting restricted shares was **$7.4 million** (**1.99 years** weighted average) as of June 30, 2023[94](index=94&type=chunk)[96](index=96&type=chunk) [7. Restructuring Costs](index=21&type=section&id=7.%20Restructuring%20Costs) - H1 2023 **restructuring costs totaled $4.8 million**, including **$1.3 million** from accelerated vesting of share-based grants, due to CEO change and organizational restructuring[97](index=97&type=chunk)[202](index=202&type=chunk) [8. Earnings (Loss) Per Share](index=21&type=section&id=8.%20Earnings%20(Loss)%20Per%20Share) Net Income (Loss) Per Common Share (in thousands, except per share) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--------------------------------------- | :------ | :------ | :------ | :------- | | Net income (loss) attributable to common stockholders | $78,365 | $215,610 | $521,545 | $(238,223) | | Basic EPS | $4.23 | $10.42 | $27.91 | $(11.36) | | Diluted EPS | $4.18 | $10.34 | $27.60 | $(11.36) | | Weighted average common shares outstanding—Basic | 18,518 | 20,684 | 18,688 | 20,961 | | Weighted average common shares outstanding—Diluted | 18,805 | 20,877 | 18,930 | 20,961 | - **3.3 million potential common shares** from convertible **preferred stock** were dilutive for Q2/H1 2023, and **3.8 million** for Q2/H1 2022[99](index=99&type=chunk) [9. Commitments and Contingencies](index=22&type=section&id=9.%20Commitments%20and%20Contingencies) Future Firm Transportation and Gathering Commitments (in thousands) | Period | Amount | | :------------- | :----------- | | Remaining 2023 | $113,028 | | 2024 | $218,797 | | 2025 | $137,795 | | 2026 | $134,324 | | 2027 | $136,492 | | Thereafter | $737,104 | | Total | $1,477,540 | - Other **operational commitments** for inventory and materials are **$39.6 million** for 2023 and **$31.2 million** for 2024[105](index=105&type=chunk) - Received **$17.8 million interim distribution** for TC claim in Q1 2023; **finalized settlement** with Rover including a **$1.0 million** administrative claim payment[107](index=107&type=chunk)[204](index=204&type=chunk) - **Ongoing litigation** includes disputes over restrictive covenants on mineral rights and alleged trespass for production beyond specified shale formations[109](index=109&type=chunk)[110](index=110&type=chunk) [10. Derivative Instruments](index=25&type=section&id=10.%20Derivative%20Instruments) - Company uses **derivatives** (swaps, basis swaps, costless collars, options) to mitigate natural gas, oil, and NGL price risks, hedging **30-70%** of current year production and for **12-36 months**[114](index=114&type=chunk)[115](index=115&type=chunk)[238](index=238&type=chunk) Total Commodity Derivative Position (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :-------------------------- | :------------ | :---------------- | | Short-term derivative asset | $140,686 | $87,508 | | Long-term derivative asset | $54,308 | $26,525 | | Short-term derivative liability | $(59,367) | $(343,522) | | Long-term derivative liability | $(61,557) | $(118,404) | | Total commodity derivative position | $74,070 | $(347,893) | - **Net gain on derivatives** for H1 2023 was **$474.8 million**, a significant **turnaround** from a **$961.4 million net loss** in H1 2022, driven by **decreased** futures pricing[126](index=126&type=chunk)[196](index=196&type=chunk) - Subsequent to June 30, 2023, the company entered into additional basis swaps, swaps, and costless collars for 2024 and 2025[152](index=152&type=chunk) [11. Fair Value Measurements](index=29&type=section&id=11.%20Fair%20Value%20Measurements) - **Fair value measurements** are classified into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs), and **Level 3** (unobservable inputs)[130](index=130&type=chunk)[131](index=131&type=chunk) Financial Assets and Liabilities by Valuation Level (June 30, 2023, in thousands) | Category | Level 1 | Level 2 | Level 3 | | :------------------------------------------ | :------ | :-------- | :-------- | | Derivative instruments (assets) | $0 | $194,994 | $0 | | Contingent consideration arrangement (assets) | $0 | $0 | $3,100 | | Derivative instruments (liabilities) | $0 | $120,924 | $0 | - **Contingent consideration arrangement** fair value was **$3.1 million** at June 30, 2023 (**Level 3**), with a **$1.2 million** loss recognized for H1 2023[132](index=132&type=chunk) [12. Revenue from Contracts with Customers](index=30&type=section&id=12.%20Revenue%20from%20Contracts%20with%20Customers) - **Revenues** from natural gas, oil, and NGL sales are recognized when control of the product is transferred to the customer[135](index=135&type=chunk) - Most contracts are short-term or have variable consideration, exempting disclosure of **remaining** performance obligations[137](index=137&type=chunk)[138](index=138&type=chunk) - **Receivables** from contracts with customers **decreased** from **$278.4 million** (Dec 31, 2022) to **$92.1 million** (Jun 30, 2023)[139](index=139&type=chunk) [13. Leases](index=31&type=section&id=13.%20Leases) - **Operating leases** for equipment, drilling rigs, and office space are recognized on the balance sheet for terms over one year[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) Total Lease Cost (in thousands) | Metric | H1 2023 | H1 2022 | | :---------------- | :-------- | :-------- | | Operating lease cost | $6,886 | $100 | | Short-term lease cost | $17,298 | $18,782 | | Total lease cost | $24,184 | $18,882 | - **Weighted-average remaining lease term** was **1.68 years**, and the **weighted-average discount rate** was **6.71%** as of June 30, 2023[146](index=146&type=chunk) [14. Income Taxes](index=32&type=section&id=14.%20Income%20Taxes) - **Effective tax rate** was **0%** for H1 2023 due to a full valuation allowance on net deferred tax assets[148](index=148&type=chunk) - A full valuation allowance is maintained as it's more likely than not that some or all deferred tax asset benefits won't be realized, but future positive evidence could lead to adjustment[149](index=149&type=chunk)[150](index=150&type=chunk) [15. Related Party Transactions](index=33&type=section&id=15.%20Related%20Party%20Transactions) - Gulfport repurchased **215,060 common shares** from Silver Point Capital, L.P. for **$20.4 million** on June 26, 2023, as part of its share repurchase program[151](index=151&type=chunk) [16. Subsequent Events](index=33&type=section&id=16.%20Subsequent%20Events) - As of July 27, 2023, new **derivatives** contracts include **2024 basis swaps** (Rex Zone 3, NGPL TXOK), **2024 Mont Belvieu C3 swaps**, and **2024/2025 NYMEX WTI/Henry Hub costless collars**[152](index=152&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Conditions%20and%20Results%20of%20Operations) Management discusses financial condition, operations, and liquidity, covering recent developments, production, and financial results influenced by commodity prices [2023 Operational and Financial Highlights](index=35&type=section&id=2023%20Operational%20and%20Financial%20Highlights) - Q2 2023 highlights include **1,039.3 MMcfe/day net production**, **13 gross** (**11.9 net**) **wells turned to sales**, **$107.4 million operating cash flow**, and repurchase of **441,512 shares** for **$41.4 million**[167](index=167&type=chunk) - **Credit Facility borrowing base increased** to **$1.1 billion**, **elected commitment** to **$900 million**, and **maturity extended** to May 2027[167](index=167&type=chunk) [2023 Production and Drilling Activity](index=36&type=section&id=2023%20Production%20and%20Drilling%20Activity) Production Volumes (Q2 2023 vs Q2 2022) | Metric | Q2 2023 | Q2 2022 | % Change | | :-------------------------- | :-------- | :-------- | :------- | | Natural gas (Mcf/day) | 945,910 | 858,481 | 10.18% | | Oil and condensate (Bbl/day) | 3,533 | 4,678 | -24.48% | | NGL (Bbl/day) | 12,036 | 12,093 | -0.47% | | Combined (Mcfe/day) | 1,039,323 | 959,106 | 8.36% | Production Volumes (H1 2023 vs H1 2022) | Metric | H1 2023 | H1 2022 | % Change | | :-------------------------- | :-------- | :-------- | :------- | | Natural gas (Mcf/day) | 945,163 | 891,306 | 6.04% | | Oil and condensate (Bbl/day) | 4,128 | 4,158 | -0.72% | | NGL (Bbl/day) | 13,060 | 11,198 | 16.63% | | Combined (Mcfe/day) | 1,048,292 | 983,444 | 6.59% | - In Q2 2023, **2 gross** (**1.67 net**) **Utica wells** were spud, and **11 gross** (**10.15 net**) **Utica wells** and **2 gross** (**1.74 net**) **SCOOP wells** commenced sales[171](index=171&type=chunk)[172](index=172&type=chunk) [Comparison of Quarter-to-Date](index=38&type=section&id=Comparison%20of%20Quarter-to-Date) Q2 Sales and Pricing (YoY Change) | Metric | Q2 2023 (Avg Price w/o derivatives) | Q2 2022 (Avg Price w/o derivatives) | % Change (Price) | % Change (Volume) | | :----------------------------------- | :---------------------------------- | :---------------------------------- | :--------------- | :---------------- | | Natural gas ($/Mcf) | $1.85 | $6.90 | -73.19% | 10.18% | | Oil and condensate ($/Bbl) | $70.30 | $105.72 | -33.50% | -24.48% | | NGL ($/Bbl) | $23.80 | $49.17 | -51.59% | -0.47% | | Total sales (in thousands) | $207,918 | $638,205 | -67.42% | N/A | Q2 Operating Expenses (YoY Change) | Metric | Q2 2023 (in thousands) | Q2 2022 (in thousands) | % Change | | :----------------------------------- | :--------------------- | :--------------------- | :------- | | Lease operating expenses | $16,155 | $14,239 | 13.46% | | Taxes other than income | $7,938 | $16,682 | -52.42% | | Transportation, gathering, processing and compression | $85,664 | $87,752 | -2.38% | | Depreciation, depletion and amortization | $80,148 | $62,602 | 28.00% | | General and administrative expenses, net | $8,611 | $8,271 | 4.11% | | Restructuring costs | $2,893 | $0 | N/A | | Interest expense | $13,727 | $14,234 | -3.56% | - **Net gain on derivatives** was **$96.8 million** in Q2 2023, compared to a **net loss** of **$172.9 million** in Q2 2022, primarily due to **decreased** futures pricing[179](index=179&type=chunk) [Comparison of Year-to-Date](index=43&type=section&id=Comparison%20of%20Year-to-Date) H1 Sales and Pricing (YoY Change) | Metric | H1 2023 (Avg Price w/o derivatives) | H1 2022 (Avg Price w/o derivatives) | % Change (Price) | % Change (Volume) | | :----------------------------------- | :---------------------------------- | :---------------------------------- | :--------------- | :---------------- | | Natural gas ($/Mcf) | $2.58 | $5.85 | -55.90% | 6.04% | | Oil and condensate ($/Bbl) | $71.36 | $99.99 | -28.59% | -0.72% | | NGL ($/Bbl) | $27.91 | $49.03 | -43.08% | 16.63% | | Total sales (in thousands) | $561,078 | $1,118,940 | -49.86% | N/A | H1 Operating Expenses (YoY Change) | Metric | H1 2023 (in thousands) | H1 2022 (in thousands) | % Change | | :----------------------------------- | :--------------------- | :--------------------- | :------- | | Lease operating expenses | $36,017 | $31,883 | 13.09% | | Taxes other than income | $18,633 | $29,150 | -36.08% | | Transportation, gathering, processing and compression | $173,281 | $172,544 | 0.43% | | Depreciation, depletion and amortization | $159,242 | $124,886 | 27.51% | | General and administrative expenses, net | $17,344 | $15,376 | 12.79% | | Restructuring costs | $4,762 | $0 | N/A | | Interest expense | $27,483 | $28,218 | -2.59% | - **Net gain on derivatives** was **$474.8 million** in H1 2023, compared to a **net loss** of **$961.4 million** in H1 2022, primarily due to a significant **decrease** in futures pricing[196](index=196&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) - Gulfport maintains **liquidity** through **operating cash flows**, **cash on hand**, and **Credit Facility**, using **derivatives** to manage **commodity price** volatility[208](index=208&type=chunk)[209](index=209&type=chunk) - As of June 30, 2023, cash and cash equivalents were **$5.3 million**, **Credit Facility** borrowings were **$99.0 million**, and 2026 **Senior Notes outstanding** were **$550 million**[212](index=212&type=chunk) Sources and Uses of Cash (H1 2023 vs H1 2022, in thousands) | Metric | H1 2023 | H1 2022 | Change | | :--------------------------------------- | :-------- | :-------- | :------- | | Net cash provided by operating activities | $411,406 | $383,200 | $28,206 | | Additions to oil and natural gas properties | $(283,406) | $(181,787) | $(101,619) | | Repurchases of common stock | $(74,516) | $(155,212) | $80,696 | | Preferred stock dividends | $(2,587) | $(2,828) | $241 | - 2023 **capital expenditures** are estimated at **$375-$400 million** for **drilling/completion**, **$50-$75 million** for **maintenance leasehold/land**, and **$40 million** for **discretionary acreage acquisitions**[226](index=226&type=chunk)[227](index=227&type=chunk) - **Off-balance sheet arrangements** include **$74.4 million** in **letters of credit** and **$37.8 million** in **surety bonds**, plus **$39.6 million** (2023) and **$31.2 million** (2024) in **operational commitments for inventory/materials**[235](index=235&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Manages commodity price risk via derivatives, shifting to a net asset position, and addresses interest rate risk on its floating-rate Credit Facility - Gulfport uses **derivative instruments** (swaps, options, costless collars) to mitigate exposure to volatile natural gas, oil, and NGL prices[238](index=238&type=chunk)[240](index=240&type=chunk)[244](index=244&type=chunk) - **Net derivative position changed** from a **$347.9 million liability** (Dec 31, 2022) to a **$74.1 million asset** (Jun 30, 2023)[245](index=245&type=chunk) - A **10% increase** in **commodity prices** would **increase derivative liability** by approximately **$119.5 million**, while a **10% decrease** would **decrease** it by approximately **$115.6 million**[245](index=245&type=chunk) - **Credit Facility** has **floating interest rates**; weighted average rate was **7.85%** for H1 2023. No interest rate swaps were in place as of June 30, 2023[246](index=246&type=chunk) [Item 4. Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and no material changes in internal control over financial reporting as of June 30, 2023 - CEO and CFO concluded that **disclosure controls and procedures** were **effective** as of June 30, 2023[248](index=248&type=chunk) - **No material changes** in **internal control over financial reporting** occurred during the last fiscal quarter[250](index=250&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings are detailed in Note 9 of the consolidated financial statements, covering commitments and contingencies - **Legal proceedings** information is provided in Note 9 of the consolidated financial statements[253](index=253&type=chunk) [Item 1A. Risk Factors](index=54&type=page&id=Item%201A.%20Risk%20Factors) Business risks are detailed in this section and the 2022 Annual Report on Form 10-K - **Business risks** are detailed in this section and the 2022 Annual Report on Form 10-K[254](index=254&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales; Q2 2023 saw 457,919 common shares repurchased, with $75 million remaining in the program - **No unregistered sales of equity securities**[255](index=255&type=chunk) Common Stock Repurchase Activity (Q2 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----------------- | :----------------------------- | :--------------------------- | | April 1 - April 30 | 62,209 | $81.26 | | May 1 - May 31 | 89,709 | $95.01 | | June 1 - June 30 | 306,001 | $95.66 | | Total | 457,919 | $93.58 | - Approximately **$75 million remained authorized** under the **$400 million** repurchase program as of June 30, 2023[257](index=257&type=chunk) [Item 3. Defaults Upon Senior Securities](index=54&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - **No defaults upon senior securities**[258](index=258&type=chunk) [Item 4. Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[259](index=259&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) Board changes include a director resignation, a new appointment to the Board and committees, and a promotion to Chief Accounting Officer - Guillermo (Bill) Martinez **resigned** from the **Board of Directors effective** July 31, 2023[261](index=261&type=chunk) - Jeannie Powers was **appointed** to the **Board**, **Audit Committee**, and **Nominating, Environmental, Social & Governance Committee**, **effective** July 31, 2023[262](index=262&type=chunk) - Matthew B. Willrath was **promoted** to Vice President and **Chief Accounting Officer effective** August 2, 2023[266](index=266&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including organizational documents, credit agreement amendments, and certifications - **Exhibits** include **organizational documents**, **credit agreement amendments**, **officer certifications**, and **XBRL data files**[269](index=269&type=chunk) [Signatures](index=58&type=section&id=Signatures) Report signed by Michael Hodges, Chief Financial Officer, on August 2, 2023 - Report signed by Michael Hodges, **Chief Financial Officer**, on August 2, 2023[274](index=274&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-19514 Gulfport Energy Corporation (Exact Name of Registrant As Specified in Its Charter) (State or Other Jurisdiction of Incor ...

Total Capital Expenditures Total Net Production $0 $25 $50 $75 $100 $125 $150 1Q2023 2Q2023 3Q2023 4Q2023 $ Millions Utica / Marcellus SCOOP Land Actual - 250 500 750 1,000 1Q2023 2Q2023 3Q2023 4Q2023 MMcfepd Utica / Marcellus SCOOP Actual Production GPOR | 10 Key Highlights • Plan to turn-to-sales 18 to 20 gross Utica wells and 2 gross Marcellus wells • Potential for 40 – 50 locations across Gulfport's existing acreage Gulfport Utica Well Performance by Vintage Bcfe / 1,000' of Lateral Gulfport's proved re ...

Gulfport Energy Corporation (NYSE:GPOR) Q1 2023 Earnings Conference Call May 3, 2023 9:00 AM ET Company Participants Jessica Antle - Director, Investor Relations John Reinhart - President & Chief Executive Officer Michael Hodges - Executive Vice President & Chief Financial Officer Matthew Rucker - Senior Vice President, Operations Conference Call Participants Neal Dingmann - Truist Securities Tim Rezvan - KeyBanc Capital Markets Operator Hello, and welcome to the Gulfport Energy Corporation’s First Quarter ...

Table of Contents Index to Financial Statements UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-19514 Gulfport Energy Corporation (Exact Name of Registrant As Specified in Its Charter) (State or Ot ...

Gulfport Energy Corporation (NYSE:GPOR) Q4 2022 Results Conference Call March 1, 2023 9:00 AM ET Company Participants Jessica Antle - Director of Investor Relations John Reinhart - President and Chief Executive Officer William Buese - Executive Vice President and Chief Financial Officer Conference Call Participants Neal Dingmann - Truist Securities Tim Rezvan - KeyBanc Capital Markets Operator Greetings, and welcome to the Gulfport Energy Corporation’s Fourth Quarter 2022 Earnings Call. At this time, all pa ...

Investor Presentation November 2022 Forward Looking Statements & Non-GAAP Financial Measures This presentation includes "forward-looking statements" for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements other than statements of historical fact. They include statements regarding Gulfport's current expectations, m ...