Investor Presentation August 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, man ...

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 June 30, 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 Other Jurisdiction of Incorp ...

Financial Data and Key Metrics Changes - The company reported a net income of $257 million and generated $205 million of adjusted EBITDA during Q2 2022 [21] - Free cash flow for the same period was $80 million, with a liquidity position of $469 million at the end of the quarter [6][24] - The leverage ratio was reported at a conservative 0.8x [6] Business Line Data and Key Metrics Changes - Production for the quarter was 960 million cubic feet equivalent per day, driven by the 2021 development program and strong performance from the SCOOP Nelda pad [6][8] - The company expects production to decline slightly in Q3 before significant growth in Q4, with a full-year production guidance range adjusted to 975 million to 1,000 million cubic feet equivalent per day [10][28] Market Data and Key Metrics Changes - The company is experiencing inflationary pressures, now expecting inflation to be up 20% to 25% for the year, an increase from previous estimates [15] - The company has layered on derivative contracts for 2024, including natural gas swap contracts and collar contracts [22] Company Strategy and Development Direction - The company is focused on cost-effective production and capital discipline, with a commitment to returning capital to shareholders through share repurchase programs [17][18] - Plans to implement a continuous rig program in the Utica and potentially in the SCOOP in 2023 to improve drilling efficiency [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating significant free cash flow in future quarters, allowing for continued capital returns to shareholders while maintaining a strong financial position [30] - The company is optimistic about production growth in 2023, expecting to exceed 5% growth over 2022 [10][28] Other Important Information - The Board approved an additional $100 million for the share repurchase program, bringing the total authorization to $300 million [7][26] - The company repurchased approximately 1.4 million common shares at an average price of $90.3 during Q2 2022 [25] Q&A Session Summary Question: Overall free cash flow strategy and shareholder returns - Management believes it can balance shareholder returns through buybacks while also pursuing growth opportunities [35] Question: Efficiency with the top-hole rig and regional capital allocation - The company plans to implement a top-hole rig to enhance drilling efficiency and maintain a continuous fracking program [36][37] Question: Future activity split between Utica and SCOOP - Management indicated that while the long-term split will remain, they are encouraged by results in the SCOOP and are evaluating how to maximize production there [39][40]

Investor Presentation May 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, manage ...

Financial Performance - Total revenues for the three months ended March 31, 2022, were $(307,816) thousand, compared to $247,358 thousand for the same period in 2021, reflecting a significant decrease[33]. - The net loss attributable to common stockholders for Q1 2022 was $(493,422) thousand, compared to a net income of $8,780 thousand in Q1 2021[33]. - The company reported a comprehensive loss of $(491,975) thousand for Q1 2022, compared to a comprehensive income of $11,350 thousand in Q1 2021[36]. - Net loss for the three months ended March 31, 2022, was $491,975, compared to a net income of $8,780 for the same period in 2021[42]. - Basic and diluted earnings per share (EPS) for the Successor Quarter was $(23.23), a significant decrease from $0.05 in the Predecessor Quarter[97]. Revenue and Sales - Natural gas sales increased to $405,212 thousand in Q1 2022 from $235,321 thousand in Q1 2021, representing a growth of approximately 72%[33]. - Total sales for natural gas reached $405,212, a 72% increase from $235,321 in the previous year[170]. - Oil and condensate sales increased by 66% to $30,239, driven by a 74% increase in realized prices[171]. - NGL sales surged by 90% to $45,284, supported by a 56% increase in realized prices and a 22% increase in sales volumes[172]. Assets and Liabilities - Total current assets as of March 31, 2022, were $272,315 thousand, slightly down from $273,551 thousand as of December 31, 2021[31]. - Total liabilities increased to $2,103,185 thousand as of March 31, 2022, from $1,560,858 thousand as of December 31, 2021, indicating a rise of approximately 34.8%[31]. - The company reported a total of $1,898,678 thousand in net property and equipment as of March 31, 2022, compared to $1,855,828 thousand at the end of 2021[31]. - The Company had total debt of $573,996 as of March 31, 2022, down from $712,946 as of December 31, 2021, indicating a reduction of 19.5%[60]. Cash Flow and Operating Activities - Net cash provided by operating activities increased to $253,696 for the Successor Quarter, up from $123,175 in the Predecessor Quarter, representing a growth of 105.6%[42]. - The company generated $253.7 million in net cash from operating activities for the Successor Quarter, compared to $123.2 million for the Predecessor Quarter, primarily due to increased realized commodity prices[203]. - The company incurred $139 million in net debt activity during the Successor Quarter, with $456 million in borrowings and $317 million in repayments on its Credit Facility[207]. Expenses - Operating expenses for Q1 2022 totaled $184,985 thousand, a decrease from $196,501 thousand in Q1 2021[33]. - Total lease operating expenses rose to $17,644, a 39% increase compared to $12,653 in Q1 2021[174]. - General and administrative expenses decreased by 44% to $7,105, down from $12,757 in the previous year[179]. - Interest expense increased to $13,984 in Q1 2022, compared to $3,261 in Q1 2021, due to changes in the debt structure[181]. Derivative Activities - The Company’s derivative activities allow for greater predictability in revenue, mitigating exposure to adverse market price changes for natural gas, oil, and NGL[215]. - The company utilizes various derivative instruments to mitigate exposure to adverse market changes in natural gas, oil, and NGL prices[199]. - The fair value of the company's derivative instruments is determined using established index prices, volatility curves, and option pricing models[220]. - The company cash-settles the difference with counterparties if the applicable monthly price indices are outside the ranges set by the floor and ceiling prices in its costless collars[221]. Stock and Dividends - The Company paid $1.5 million in cash dividends to holders of preferred stock during the Successor Quarter[84]. - The Company has repurchased 438,082 shares for approximately $35.5 million under the stock repurchase program, at a weighted average price of $81.06 per share[76]. - The Company approved an increase in the common stock repurchase program from $100 million to $200 million in April 2022[153]. Production and Operations - Total net production averaged approximately 1,008.1 MMcfe per day during the Successor Quarter, a 3% increase from 982.7 MMcfe per day in the Predecessor Quarter[163]. - Natural gas production volumes increased to 83,205 MMcf in Q1 2022, up from 81,832 MMcf in Q1 2021, representing a 2% increase[169]. - The company spud five gross (5.0 net) wells in the Utica during the Successor Quarter, with three gross (1.7 net) operated wells completed[164]. Environmental and Regulatory - The Company has implemented various policies to mitigate environmental risks and established reserves for probable environmental liabilities[106]. - The Company has potential liabilities exceeding approximately $64 million if it is not permitted to reject a firm transportation contract with Rover Pipeline LLC[102].

Financial Data and Key Metrics Changes - The company reported a net loss of $492 million for Q1 2022, primarily due to a $664 million unrealized loss from its commodity derivative portfolio [16] - Adjusted EBITDA for the quarter was $235 million, with net cash provided by operating activities totaling $254 million [17] - Free cash flow generated during the quarter was $117 million, with liquidity at $568 million at the end of the quarter [5][22] Business Line Data and Key Metrics Changes - The company achieved production of over 1 billion cubic feet equivalent of gas per day, driven by the outperformance of the 2021 development program and the addition of five new SCOOP wells [5][6] - Production is expected to decline in Q2 and Q3 before significant growth in Q4, with an overall year-on-year production growth expectation of more than 5% [6][12] Market Data and Key Metrics Changes - The company experienced inflationary pressures on capital costs, with expectations of inflation rising to 10% to 20% [10] - Operating costs increased slightly to $1.26 per Mcfe, attributed to higher production taxes and seasonal increases in LOE [11] Company Strategy and Development Direction - The company is focused on cost-effective production and capital discipline, with plans to return approximately 50% of expected free cash flow to shareholders through share repurchases [12][25] - There is an ongoing evaluation of opportunities to increase land positions in the Utica, which could lead to sustainable organic growth [7][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the asset base and the improved balance sheet, which supports a low reinvestment rate while returning capital to shareholders [28] - The company remains optimistic about achieving its production guidance despite the casing failure incident, which is viewed as a timing issue rather than a long-term operational risk [9][56] Other Important Information - The board approved an increase in the share repurchase program to $200 million, representing about 50% of expected free cash flow for 2022 [5][25] - The company has entered into commodity derivative contracts to hedge and lock in future cash flow generation [18][19] Q&A Session Summary Question: Asset allocation and capital efficiency - Management indicated that the program will continue to be balanced, with potential for a more continuous drilling program in the SCOOP [33] Question: Additional acreage acquisition - Management is considering acquiring additional acreage in the Utica, particularly in the wet gas window, to enhance economic outcomes [35] Question: Shareholder returns and dividends - Management is currently focused on share repurchases due to the stock's undervaluation, but all alternatives, including dividends, are being considered [38][39] Question: Casing failure in the Utica - Management explained that the casing failure was due to a seam issue in the pipe, and they are taking precautions to prevent recurrence by using seamless pipe in future wells [44] Question: Buyback pace and strategy - Management stated that the pace of buybacks will depend on share price and market conditions, with a commitment to continue repurchasing shares as long as they are undervalued [46] Question: Well completions delay in the Utica - Management clarified that delays were due to the casing issue, which required additional work before proceeding with completions [55]

PART I [Business](index=12&type=section&id=ITEM%201%2E%20BUSINESS) Gulfport is a natural gas E&P company that emerged from bankruptcy in 2021 with a renewed focus on free cash flow generation - Gulfport is an independent natural gas-weighted exploration and production company with principal properties in the **Utica** and **SCOOP** formations[56](index=56&type=chunk) - The company emerged from Chapter 11 bankruptcy on May 17, 2021, reducing its total indebtedness by **$1.4 billion** and focusing on sustainable free cash flow[59](index=59&type=chunk)[61](index=61&type=chunk) Proved Reserves by Area (December 31, 2021) | Area | Oil (MMBbl) | Natural Gas (Bcf) | NGL (MMBbl) | Total (Bcfe) | | :--- | :--- | :--- | :--- | :--- | | **Utica** | 7 | 2,555 | 13 | 2,673 | | **SCOOP** | 10 | 921 | 40 | 1,223 | | **Total Proved** | **16** | **3,478** | **54** | **3,898** | Changes in Proved Reserves (2021, in Bcfe) | Category | Volume (Bcfe) | | :--- | :--- | | **Proved Reserves, Dec 31, 2020** | **2,588** | | Extensions and discoveries | 695 | | Revisions of prior reserve estimates | 982 | | Current production | (366) | | **Proved Reserves, Dec 31, 2021** | **3,898** | - Upward revisions of **982.2 Bcfe** in 2021 were primarily driven by higher commodity prices, with the average natural gas price increasing to **$3.60/MMBtu**[77](index=77&type=chunk) 2021 Production and Pricing Summary (Combined Period) | Metric | Natural Gas | Oil & Condensate | NGL | | :--- | :--- | :--- | :--- | | **Production Volume** | 332,921 MMcf | 1,699 MBbl | 3,869 MBbl | | **Avg. Daily Production** | 912 MMcf/d | 5 MBbl/d | 11 MBbl/d | | **Avg. Price (w/o derivatives)** | $3.76 /Mcf | $65.01 /Bbl | $36.68 /Bbl | | **Avg. Price (w/ derivatives)** | $2.85 /Mcf | $59.29 /Bbl | $33.33 /Bbl | - For 2022, the company plans a capital expenditure program of **$340 million to $380 million**, expecting to generate **975 to 1,025 MMcfe per day** of production[63](index=63&type=chunk)[64](index=64&type=chunk) [Risk Factors](index=30&type=section&id=ITEM%201A%2E%20RISK%20FACTORS) The company faces significant risks from commodity price volatility, reserve replacement challenges, and extensive environmental regulations - The company's financial performance is significantly dependent on volatile **natural gas, oil, and NGL prices**, which are beyond its control[138](index=138&type=chunk)[140](index=140&type=chunk) - Future success is highly dependent on the ability to find, develop, or acquire additional economically recoverable reserves to replace production[159](index=159&type=chunk) - Approximately **44% of total estimated proved reserves** were proved undeveloped (PUDs) as of December 31, 2021, requiring significant future capital[162](index=162&type=chunk) - The company is subject to extensive and changing governmental regulations regarding environmental matters, which could increase costs or restrict operations[204](index=204&type=chunk)[209](index=209&type=chunk)[212](index=212&type=chunk) - The recent emergence from Chapter 11 bankruptcy may adversely affect business relationships and makes historical financial information not comparable[225](index=225&type=chunk)[226](index=226&type=chunk) - The company has minimum volume commitments under midstream contracts, representing a long-term contractual obligation of approximately **$1.8 billion**[193](index=193&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=50&type=section&id=ITEM%205%2E%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's new common stock began trading on the NYSE in May 2021, and a $100 million stock repurchase program was authorized - Upon emergence from bankruptcy on May 17, 2021, predecessor common stock was cancelled and new stock was issued on the NYSE under the symbol **"GPOR"**[243](index=243&type=chunk)[244](index=244&type=chunk) - No dividends were paid on New Common Stock in 2021, but **$1.5 million in cash** and paid-in-kind shares were issued for New Preferred Stock[246](index=246&type=chunk)[248](index=248&type=chunk) - On November 2, 2021, the Board authorized a stock repurchase program for up to **$100 million** of common stock, though no shares were repurchased in 2021[249](index=249&type=chunk)[250](index=250&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=ITEM%207%2E%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Post-bankruptcy operations saw higher revenues from commodity prices, improved liquidity, and a focus on funding development within cash flow - The company emerged from Chapter 11 in May 2021, reducing total indebtedness by **$1.4 billion** and focusing on sustainable free cash flow[259](index=259&type=chunk)[260](index=260&type=chunk) - In October 2021, the company entered into a new credit facility with an initial borrowing base of **$850 million**, increasing liquidity by over $160 million[264](index=264&type=chunk)[271](index=271&type=chunk) - The 2022 capital expenditure program is budgeted at **$340 million to $380 million**, with anticipated inflationary pressures on costs[270](index=270&type=chunk) [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Higher commodity prices drove an 88% revenue increase in 2021, offset by derivative losses and lower production volumes Revenue and Production Comparison (Combined 2021 vs. 2020) | Metric | Combined 2021 | 2020 | | :--- | :--- | :--- | | **Total Sales (unhedged)** | $1,502.9 M | $801.3 M | | **Total Production (MMcfe/d)** | 1,003 | 1,037 | | **Avg. Price (unhedged, $/Mcfe)** | $4.10 | $2.11 | | **Avg. Price (hedged, $/Mcfe)** | $3.21 | $2.53 | - The **88% increase in unhedged revenue** was primarily driven by higher commodity prices, with the average Henry Hub index rising to **$3.89/MMBtu** in 2021[275](index=275&type=chunk) - The company experienced derivative settlement losses of **$326.2 million** for the combined 2021 period, compared to gains of $159.4 million in 2020[277](index=277&type=chunk) - Transportation and gathering costs decreased on a per-unit basis from **$1.20/Mcfe to $1.02/Mcfe** due to midstream contract renegotiations[280](index=280&type=chunk)[281](index=281&type=chunk) - A non-cash impairment charge of **$117.8 million** was recorded on oil and gas properties in the Successor period, compared to a $1.4 billion impairment in 2020[283](index=283&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) The company significantly reduced debt post-bankruptcy and secured a new credit facility to support its 2022 capital program - As of December 31, 2021, the company had a cash balance of $3.3 million and total principal debt of **$714.0 million**, a significant reduction from $2.3 billion at year-end 2020[299](index=299&type=chunk) - In October 2021, the company entered into a new credit facility with an initial borrowing base of **$850.0 million** and an initial elected commitment of $700.0 million[302](index=302&type=chunk) - The 2022 drilling and completion capital expenditure program is budgeted to be between **$320 million and $360 million**[315](index=315&type=chunk) Contractual Obligations as of December 31, 2021 (in thousands) | Contractual Obligations | Total | 2022 | 2023-2024 | 2025-2026 | 2027 and Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | | **Long-term debt (Principal & Interest)** | $906,500 | $44,000 | $88,000 | $774,500 | $0 | | **Firm transportation and gathering contracts** | $1,778,093 | $225,200 | $438,514 | $268,131 | $846,248 | | **Operating lease liabilities** | $322 | $182 | $140 | $0 | $0 | [Critical Accounting Policies and Estimates](index=66&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key accounting policies include fresh start accounting, the full cost method for oil and gas properties, and reserve estimation - The company applied **fresh start accounting** upon emergence from Chapter 11, making financial statements after May 17, 2021, not comparable to prior periods[324](index=324&type=chunk)[325](index=325&type=chunk) - Gulfport uses the **full cost method** of accounting, requiring a quarterly ceiling test that is highly sensitive to commodity prices and reserve estimates[326](index=326&type=chunk)[329](index=329&type=chunk) - Estimates of oil and natural gas reserves are critical for calculating **DD&A** and are a primary factor in the impairment ceiling test[330](index=330&type=chunk) - A full valuation allowance of **$907.4 million** was established against the company's net deferred tax asset as of December 31, 2021[332](index=332&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=ITEM%207A%2E%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks are commodity price volatility, managed through derivatives, and interest rate fluctuations - The company's main market risk is **commodity price volatility**, which it manages using derivative instruments to achieve more predictable cash flows[336](index=336&type=chunk)[337](index=337&type=chunk) - As of December 31, 2021, the company had a net liability derivative position of **$402.0 million** due to rising commodity prices[342](index=342&type=chunk) - A **10% change in commodity prices** would alter the company's derivative liability by approximately **$171 million to $183 million**[342](index=342&type=chunk) - The company is exposed to interest rate risk from its floating-rate credit facility, where a **1% rate increase** would raise annual interest expense by approximately **$2 million**[344](index=344&type=chunk) [Financial Statements and Supplementary Data](index=70&type=section&id=ITEM%208%2E%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section contains the audited consolidated financial statements, which reflect the application of fresh start accounting in 2021 [Supplemental Information On Oil And Gas Exploration And Production Activities](index=125&type=section&id=20%2E%20Supplemental%20Information%20On%20Oil%20And%20Gas%20Exploration%20And%20Production%20Activities) Supplemental data shows a significant increase in proved reserves and their discounted future net cash flows due to higher prices Proved Reserve Changes (in Bcfe) | Category | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Beginning Balance** | 2,588 | 4,528 | 4,743 | | Extensions and discoveries | 695 | 240 | 1,097 | | Revisions of prior estimates | 982 | (1,725) | (734) | | Production | (366) | (380) | (502) | | Sales of reserves | 0 | (75) | (77) | | **Ending Balance** | **3,898** | **2,588** | **4,528** | - Proved undeveloped reserves (PUDs) constituted **44% of total proved reserves** at year-end 2021, totaling 1,733 Bcfe[591](index=591&type=chunk) Standardized Measure of Discounted Future Net Cash Flows (in millions) | Year | Standardized Measure | | :--- | :--- | | **2021 (Successor)** | $4,138 | | **2020 (Predecessor)** | $540 | | **2019 (Predecessor)** | $1,703 | - The significant increase in the standardized measure in 2021 was primarily driven by net positive changes in prices and costs, which contributed **$2.6 billion**[601](index=601&type=chunk) [Controls and Procedures](index=131&type=section&id=ITEM%209A%2E%20CONTROLS%20AND%20PROCEDURES) Management and the independent auditor concluded that the company's disclosure controls and internal controls were effective as of year-end 2021 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2021[608](index=608&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2021, supported by an unqualified audit opinion[612](index=612&type=chunk)[613](index=613&type=chunk)[617](index=617&type=chunk) - Changes to internal controls during 2021 included the addition of key controls related to the company's reorganization after emerging from bankruptcy[610](index=610&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=134&type=section&id=ITEM%2010%2E%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information regarding directors, officers, and corporate governance is incorporated by reference from the 2022 Proxy Statement - Information for this item, including details on directors and corporate governance, is **incorporated by reference** from the 2022 Proxy Statement[629](index=629&type=chunk) [Executive Compensation](index=134&type=section&id=ITEM%2011%2E%20EXECUTIVE%20COMPENSATION) Information regarding executive compensation is incorporated by reference from the 2022 Proxy Statement - Information regarding executive compensation is **incorporated by reference** from the 2022 Proxy Statement[630](index=630&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=134&type=section&id=ITEM%2012%2E%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Information regarding security ownership is incorporated by reference from the 2022 Proxy Statement - Information regarding security ownership is **incorporated by reference** from the 2022 Proxy Statement[631](index=631&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=134&type=section&id=ITEM%2013%2E%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information regarding related transactions and director independence is incorporated by reference from the 2022 Proxy Statement - Information regarding related party transactions and director independence is **incorporated by reference** from the 2022 Proxy Statement[632](index=632&type=chunk) [Principal Accounting Fees and Services](index=134&type=section&id=ITEM%2014%2E%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Information regarding accounting fees and services is incorporated by reference from the 2022 Proxy Statement - Information regarding principal accounting fees and services is **incorporated by reference** from the 2022 Proxy Statement[633](index=633&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=135&type=section&id=ITEM%2015%2E%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including the reserve report - This section provides an index of all exhibits filed with the Form 10-K, including the plan of reorganization, new debt indentures, and credit agreements[635](index=635&type=chunk)[637](index=637&type=chunk) - The independent petroleum engineering firm Netherland, Sewell & Associates, Inc. provided a summary reserve report, which is included as **Exhibit 99.1**[90](index=90&type=chunk)[638](index=638&type=chunk)

Gulfport Energy Corporation (NYSE:GPOR) Q4 2021 Earnings Conference Call March 1, 2022 9:00 AM ET Company Participants Jessica Antle - Director of Investor Relations Timothy Cutt - Chairman and Chief Executive Officer William Buese - Executive Vice President and Chief Financial Officer Conference Call Participants Neal Dingmann - Truist Securities, Inc. Leo Mariani - KeyBanc Capital Markets Inc. Zachary Parham - JPMorgan Chase & Co. Operator Greetings. Welcome to the Gulfport's Fourth Quarter 2021 Conferenc ...

Investor Presentation Februar y 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, ...

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents Gulfport Energy Corporation's unaudited financial statements and management's analysis, detailing the impact of its Chapter 11 emergence and fresh start accounting [Item 1. Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements of Gulfport Energy Corporation, distinguishing between the 'Successor' (post-May 17, 2021, Chapter 11 emergence) and 'Predecessor' (prior to May 17, 2021) periods, reflecting the significant impact of fresh start accounting and the company's reorganization [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, highlighting assets, liabilities, and equity before and after its Chapter 11 emergence Consolidated Balance Sheet Highlights (in thousands) | Metric | September 30, 2021 (Successor) | December 31, 2020 (Predecessor) | | :-------------------------------- | :------------------------------- | :------------------------------- | | Total Assets | $2,088,208 | $2,539,871 | | Total Liabilities | $2,039,219 | $2,840,371 | | Total Stockholders' Equity (Deficit) | $(8,931) | $(300,500) | | Current Assets | $220,724 | $409,750 | | Property and Equipment, Net | $1,840,993 | $2,086,269 | | Current Liabilities | $1,056,928 | $510,287 | | Liabilities Subject to Compromise | $0 | $2,293,480 | - Current assets decreased significantly, primarily due to a reduction in **cash and cash equivalents** and **prepaid expenses**[28](index=28&type=chunk) - Current liabilities increased substantially, largely driven by a significant rise in **short-term derivative instrument liabilities** and **accounts payable**[31](index=31&type=chunk) - Liabilities subject to compromise were eliminated, reflecting the company's emergence from Chapter 11[31](index=31&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income or loss across different reporting periods, reflecting the impact of reorganization Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2021 (Successor) | Three Months Ended Sep 30, 2020 (Predecessor) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Total Revenues | $(242,528) | $136,176 | | Net Loss | $(461,313) | $(380,963) | | Basic Net Loss Per Common Share | $(22.50) | $(2.37) | | Metric | May 18, 2021 - Sep 30, 2021 (Successor) | Jan 1, 2021 - May 17, 2021 (Predecessor) | Nine Months Ended Sep 30, 2020 (Predecessor) | | :------------------------------------ | :-------------------------------------- | :--------------------------------------- | :----------------------------------------- | | Total Revenues | $(236,804) | $273,037 | $621,815 | | Net (Loss) Income | $(670,898) | $250,996 | $(1,459,569) | | Basic Net (Loss) Income Per Common Share | $(32.87) | $1.56 | $(9.12) | - Total revenues for the three months ended September 30, 2021, showed a significant loss, primarily due to a **net loss on natural gas, oil, and NGL derivatives**[34](index=34&type=chunk) - The Successor period (May 18 - Sep 30, 2021) reported a substantial **net loss**, contrasting with the Predecessor period (Jan 1 - May 17, 2021) which showed **net income**[36](index=36&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section presents the comprehensive income or loss, including net income and other comprehensive income items, for various reporting periods Consolidated Statements of Comprehensive Income (Loss) Highlights (in thousands) | Metric | Three Months Ended Sep 30, 2021 (Successor) | Three Months Ended Sep 30, 2020 (Predecessor) | | :------------------------ | :------------------------------------------ | :------------------------------------------ | | Comprehensive Loss | $(461,313) | $(377,302) | | Metric | May 18, 2021 - Sep 30, 2021 (Successor) | Jan 1, 2021 - May 17, 2021 (Predecessor) | Nine Months Ended Sep 30, 2020 (Predecessor) | | :------------------------ | :-------------------------------------- | :--------------------------------------- | :----------------------------------------- | | Comprehensive (Loss) Income | $(670,898) | $250,996 | $(1,464,066) | [Consolidated Statements of Stockholders' Equity (Deficit)](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) This section outlines changes in stockholders' equity, reflecting the impact of the Chapter 11 reorganization, stock issuance, and accumulated deficit Total Stockholders' Equity (Deficit) (in thousands) | Date | Amount | | :------------------- | :------- | | September 30, 2021 (Successor) | $(8,931) | | December 31, 2020 (Predecessor) | $(300,500) | - The statements reflect the cancellation of Predecessor common stock and the issuance of **New Common Stock** and **New Preferred Stock** on the Emergence Date (May 17, 2021) as part of the Chapter 11 reorganization[43](index=43&type=chunk)[63](index=63&type=chunk) - Additional paid-in capital saw significant adjustments due to the extinguishment of Predecessor paid-in capital and the issuance of new common stock[43](index=43&type=chunk)[85](index=85&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section details the cash inflows and outflows from operating, investing, and financing activities across different periods, post-reorganization Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | May 18, 2021 - Sep 30, 2021 (Successor) | Jan 1, 2021 - May 17, 2021 (Predecessor) | Nine Months Ended Sep 30, 2020 (Predecessor) | | :------------------------------------ | :-------------------------------------- | :--------------------------------------- | :----------------------------------------- | | Net Cash Provided by Operating Activities | $164,637 | $172,155 | $200,001 | | Net Cash Used in Investing Activities | $(116,144) | $(97,831) | $(290,696) | | Net Cash (Used in) Provided by Financing Activities | $(103,425) | $(104,768) | $135,678 | | Cash, Cash Equivalents and Restricted Cash at End of Period | $4,485 | $59,417 (at May 17, 2021) | $51,043 (at Sep 30, 2020) | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, including accounting policies and significant events [1. BASIS OF PRESENTATION](index=12&type=section&id=1.%20BASIS%20OF%20PRESENTATION) This note describes the company's business, its Chapter 11 reorganization, and the application of fresh start accounting for financial reporting - Gulfport Energy Corporation is an independent natural gas-weighted exploration and production company with assets primarily in the **Appalachia and Anadarko basins**[49](index=49&type=chunk) - The Company filed for voluntary reorganization under **Chapter 11 of the Bankruptcy Code** on November 13, 2020, and emerged on May 17, 2021[49](index=49&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - Financial statements distinguish between the 'Successor' (post-May 17, 2021) and 'Predecessor' (on or prior to May 17, 2021) periods, and the Company applied **FASB ASC Topic 852 - Reorganizations** and **fresh start accounting**[49](index=49&type=chunk)[57](index=57&type=chunk) [2. CHAPTER 11 EMERGENCE](index=14&type=section&id=2.%20CHAPTER%2011%20EMERGENCE) This note details the company's emergence from Chapter 11, including the effective date, cancellation of old stock, and issuance of new securities - The Plan of Reorganization was confirmed on April 28, 2021, and became effective on **May 17, 2021**, marking the Company's emergence from Chapter 11[54](index=54&type=chunk)[62](index=62&type=chunk) - All Predecessor common stock and outstanding obligations under Predecessor Senior Notes were cancelled[63](index=63&type=chunk) - The Company issued **19,845,780 shares of New Common Stock** and **55,000 shares of New Preferred Stock**[63](index=63&type=chunk) - A Second Amended and Restated Credit Agreement (Exit Credit Agreement) was entered into, providing for an **Exit Facility** and a **First-Out Term Loan**, and **$550 million aggregate principal amount of 8.000% Successor Senior Notes due 2026** were issued[63](index=63&type=chunk)[65](index=65&type=chunk) [3. FRESH START ACCOUNTING](index=16&type=section&id=3.%20FRESH%20START%20ACCOUNTING) This note explains the application of fresh start accounting, revaluation of assets and liabilities, and the resulting non-comparability of financial statements - The Company qualified for and applied fresh start accounting on the Emergence Date (May 17, 2021), as existing voting shareholders received less than **50% of the Successor's equity** and reorganization value was less than post-petition liabilities and allowed claims[67](index=67&type=chunk) - The enterprise value of the Successor was estimated between **$1.3 billion and $1.9 billion**, with management concluding **$1.6 billion** as the best estimate[69](index=69&type=chunk) - Assets and liabilities were revalued to their estimated fair values, making post-May 17, 2021, financial statements not comparable to prior periods[68](index=68&type=chunk) Reorganization Items, Net (Predecessor Period Jan 1, 2021 - May 17, 2021, in thousands) | Item | Amount | | :------------------------------------------ | :------- | | Net gain on liabilities subject to compromise | $575,182 | | Legal and professional advisory fees | $(81,565) | | Fresh start adjustments, net | $(160,756) | | Elimination of predecessor accumulated other comprehensive income | $(40,430) | | Debt issuance costs | $(3,150) | | Other items, net | $(22,383) | | **Total reorganization items, net** | **$266,898** | [4. PROPERTY AND EQUIPMENT](index=24&type=section&id=4.%20PROPERTY%20AND%20EQUIPMENT) This note details the company's property and equipment, including oil and natural gas properties, impairment charges, and unevaluated properties by area Property and Equipment, Net (in thousands) | Date | Amount | | :------------------- | :------- | | September 30, 2021 (Successor) | $1,840,993 | | December 31, 2020 (Predecessor) | $2,086,269 | - No impairment of oil and natural gas properties was recorded during the third quarter of 2021, as the net book value was below the calculated ceiling[94](index=94&type=chunk) - The Company recorded impairment charges of **$117.8 million** for its oil and natural gas properties during the Current Combined YTD Period[94](index=94&type=chunk) Unevaluated Properties by Area at September 30, 2021 (in thousands) | Area | Amount | | :----- | :------- | | Utica | $179,449 | | SCOOP | $36,905 | | Other | $3 | | **Total** | **$216,357** | [5. LONG-TERM DEBT](index=25&type=section&id=5.%20LONG-TERM%20DEBT) This note outlines the company's long-term debt structure post-emergence, including the Exit Facility, Term Loan, and Senior Notes, and prior debt termination Total Debt (in thousands) | Date | Amount | | :------------------- | :------- | | September 30, 2021 (Successor) | $749,502 | | December 31, 2020 (Predecessor) | $2,258,962 | - Post-emergence debt at September 30, 2021, included **$35.6 million** outstanding under the Exit Facility, **$165.0 million** under the First-Out Term Loan, and **$550.0 million** in 8.000% senior unsecured notes due 2026[106](index=106&type=chunk)[107](index=107&type=chunk) - The Exit Credit Facility was subsequently amended and refinanced with the **New Credit Facility** on October 14, 2021[101](index=101&type=chunk)[102](index=102&type=chunk) - Predecessor Senior Notes, the DIP Credit Facility, and the Pre-Petition Revolving Credit Facility were terminated or converted upon the Emergence Date[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) [6. EQUITY](index=28&type=section&id=6.%20EQUITY) This note describes the changes in equity due to the Chapter 11 reorganization, including the cancellation of old stock and issuance of new common and preferred shares - On the Emergence Date, all existing shares of Predecessor common stock were cancelled, and approximately **19.8 million shares of New Common Stock** and **55,000 shares of New Preferred Stock** were issued[119](index=119&type=chunk)[120](index=120&type=chunk) - Holders of New Preferred Stock are entitled to cumulative quarterly dividends at a rate of **10% per annum for cash dividends** and **15% per annum for PIK Dividends**, with PIK dividends required if the Total Net Funded Debt to EBITDAX ratio is equal to or greater than 1.50[121](index=121&type=chunk) - New Preferred Stock is convertible into New Common Stock at the holder's option[122](index=122&type=chunk) New Preferred Stock Outstanding | Date | Shares | | :------------------- | :----- | | May 18, 2021 (Successor) | 55,000 | | September 30, 2021 (Successor) | 57,920 | [7. STOCK-BASED COMPENSATION](index=29&type=section&id=7.%20STOCK-BASED%20COMPENSATION) This note details the impact of Chapter 11 on stock-based awards, the adoption of a new incentive plan, and related compensation expenses - Predecessor stock-based compensation awards were cancelled upon emergence, resulting in the recognition of **$4.4 million of previously unamortized expense**[127](index=127&type=chunk) - The Company adopted the **Gulfport Energy Corporation 2021 Stock Incentive Plan**, reserving **2,828,123 shares of New Common Stock** for issuance[65](index=65&type=chunk)[128](index=128&type=chunk) - Stock-based compensation expense for the Current Successor Quarter was **$1.4 million**, with **$0.5 million capitalized**[128](index=128&type=chunk) - Unrecognized compensation expense as of September 30, 2021, was **$12.2 million for restricted stock units** (expected over 3.05 years) and **$6.3 million for performance vesting restricted shares** (expected over 2.8 years)[131](index=131&type=chunk)[132](index=132&type=chunk) [8. EARNINGS (LOSS) PER SHARE](index=31&type=section&id=8.%20EARNINGS%20(LOSS)%20PER%20SHARE) This note presents the basic and diluted earnings per share for various periods, considering the impact of the company's net loss and preferred stock Net (Loss) Income Per Common Share | Period | Basic EPS | Diluted EPS | | :------------------------------------------ | :-------- | :---------- | | Three Months Ended Sep 30, 2021 (Successor) | $(22.50) | $(22.50) | | May 18, 2021 - Sep 30, 2021 (Successor) | $(32.87) | $(32.87) | | Jan 1, 2021 - May 17, 2021 (Predecessor) | $1.56 | $1.56 | | Nine Months Ended Sep 30, 2020 (Predecessor) | $(9.12) | $(9.12) | - New Preferred Stock is considered a participating security but was anti-dilutive for the Current Successor YTD Period due to the Company's net loss[139](index=139&type=chunk)[140](index=140&type=chunk) [9. COMMITMENTS AND CONTINGENCIES](index=32&type=section&id=9.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's future firm transportation and gathering commitments, along with details of significant settlement agreements Future Firm Transportation and Gathering Commitments (in thousands) | Period | Amount | | :------------- | :--------- | | Remaining 2021 | $61,609 | | 2022 | $224,537 | | 2023 | $222,730 | | 2024 | $215,865 | | 2025 | $137,116 | | Thereafter | $977,616 | | **Total** | **$1,839,473** | - The Company finalized a settlement agreement with TC Energy Corporation in September 2021, rejecting firm transportation contracts for a **$43.8 million cash payment**, with substantially all of this amount expected to be recovered through assigned claims[148](index=148&type=chunk)[233](index=233&type=chunk) - An agreement in principle was reached with Stingray Pressure Pumping LLC in September 2021, fully resolving the litigation between the parties[153](index=153&type=chunk)[237](index=237&type=chunk) - Settlements were reached with Muskie for **$3.1 million** and Bryon Lefort for approximately **$0.7 million**, resolving respective claims[155](index=155&type=chunk)[156](index=156&type=chunk) [10. DERIVATIVE INSTRUMENTS](index=35&type=section&id=10.%20DERIVATIVE%20INSTRUMENTS) This note describes the company's use of derivative instruments to manage commodity price volatility and details the net loss on these derivatives - The Company uses **fixed price swaps, sold natural gas call options, costless collars, and natural gas basis swaps** to mitigate commodity price volatility for natural gas, oil, and NGL[161](index=161&type=chunk)[162](index=162&type=chunk)[164](index=164&type=chunk)[166](index=166&type=chunk)[169](index=169&type=chunk) Total Commodity Derivative Position (in thousands) | Date | Amount | | :------------------- | :----------- | | September 30, 2021 (Successor) | $(830,554) | | December 31, 2020 (Predecessor) | $(20,777) | Net Loss on Natural Gas, Oil and NGL Derivatives (in thousands) | Period | Amount | | :------------------------------------------ | :----------- | | Three Months Ended Sep 30, 2021 (Successor) | $(622,476) | | May 18, 2021 - Sep 30, 2021 (Successor) | $(762,134) | [11. FAIR VALUE MEASUREMENTS](index=37&type=section&id=11.%20FAIR%20VALUE%20MEASUREMENTS) This note explains the fair value measurements for derivative instruments and other assets and liabilities, including the impact of fresh start accounting - Derivative instruments are classified as **Level 2 fair value measurements**, utilizing industry-standard models with observable inputs[181](index=181&type=chunk) - The contingent consideration arrangement from the SCOOP water infrastructure sale is a **Level 3 fair value measurement**, valued at **$5.3 million** as of September 30, 2021, based on unobservable inputs[182](index=182&type=chunk) - The application of fresh start accounting on the Emergence Date resulted in assets and liabilities being recorded at fair value, with oil and natural gas properties and asset retirement obligations primarily using **Level 3 unobservable inputs**[186](index=186&type=chunk) [12. REVENUE FROM CONTRACTS WITH CUSTOMERS](index=39&type=section&id=12.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) This note details the company's revenue recognition policies for natural gas, oil, and NGL sales, and presents receivables from customer contracts - Revenues are primarily derived from the sale of natural gas, oil, and NGL, recognized in the period that performance obligations are satisfied, generally upon transfer of control of the product[187](index=187&type=chunk) Receivables from Contracts with Customers (in thousands) | Date | Amount | | :------------------- | :------- | | September 30, 2021 | $185,900 | | December 31, 2020 | $119,900 | - The Company utilizes practical expedients for short-term contracts (one year or less) and variable consideration allocated to wholly unsatisfied performance obligations, exempting certain disclosures[189](index=189&type=chunk)[190](index=190&type=chunk) [13. EQUITY INVESTMENTS](index=40&type=section&id=13.%20EQUITY%20INVESTMENTS) This note discusses the revaluation of equity investments, specifically the interest in Grizzly Oil Sands, and the settlement of claims with previously owned shares - The Company's approximate **24.5% interest in Grizzly Oil Sands ULC** was revalued to zero upon the Emergence Date due to suspended operations and no anticipated future funding, leading to the cessation of equity method accounting[196](index=196&type=chunk)[197](index=197&type=chunk) - Previously owned shares of Mammoth Energy Services, Inc. were used to settle Class 4A claims as part of the Chapter 11 reorganization[198](index=198&type=chunk) [14. RESTRUCTURING AND LIABILITY MANAGEMENT](index=41&type=section&id=14.%20RESTRUCTURING%20AND%20LIABILITY%20MANAGEMENT) This note details the restructuring and liability management charges, primarily due to workforce reductions, aligning with the company's operating environment Restructuring and Liability Management Charges (in thousands) | Period | Reduction in Workforce | Liability Management | Total | | :------------------------------------------ | :--------------------- | :------------------- | :------ | | Three Months Ended Sep 30, 2021 (Successor) | $2,858 | $0 | $2,858 | | May 18, 2021 - Sep 30, 2021 (Successor) | $2,858 | $0 | $2,858 | | Nine Months Ended Sep 30, 2020 (Predecessor) | $1,460 | $8,141 | $9,601 | - Restructuring charges in the Current Successor Quarter were primarily due to a **workforce reduction**, aligning the workforce and leadership structure to the current operating environment[199](index=199&type=chunk) [15. LEASES](index=41&type=section&id=15.%20LEASES) This note provides information on the company's operating leases, including remaining lease terms, maturities of liabilities, and total lease costs - The Company has operating leases on certain equipment and field offices, with a weighted-average remaining lease term of **0.89 years** as of September 30, 2021[201](index=201&type=chunk)[206](index=206&type=chunk) Maturities of Operating Lease Liabilities at September 30, 2021 (in thousands) | Period | Amount | | :------------- | :----- | | Remaining 2021 | $10 | | 2022 | $25 | | **Total Lease Payments** | **$35** | | Less: Imputed interest | $(1) | | **Total** | **$34** | Total Lease Cost (in thousands) | Period | Amount | | :------------------------------------------ | :----- | | Three Months Ended Sep 30, 2021 (Successor) | $2,883 | | May 18, 2021 - Sep 30, 2021 (Successor) | $5,051 | | Jan 1, 2021 - May 17, 2021 (Predecessor) | $4,537 | | Nine Months Ended Sep 30, 2020 (Predecessor) | $16,373 | [16. INCOME TAXES](index=43&type=section&id=16.%20INCOME%20TAXES) This note discusses the impact of cancellation of indebtedness income on tax attributes, the valuation allowance against deferred tax assets, and income tax expense - The estimated **cancellation of indebtedness income (CODI)** of approximately **$708.8 million**, resulting from debt discharge during Chapter 11, will reduce the Company's tax attributes[207](index=207&type=chunk) - The Company maintains a **full valuation allowance** against its net deferred tax assets as of May 17, 2021, and September 30, 2021, indicating that it is more likely than not that some or all of the benefit from these assets will not be realized[209](index=209&type=chunk) - An income tax expense of **$0.7 million** was recognized for the Current Successor Quarter, attributable to an adjustment related to an Oklahoma refund claim[211](index=211&type=chunk) [17. SUBSEQUENT EVENTS](index=44&type=section&id=17.%20SUBSEQUENT%20EVENTS) This note discloses significant events occurring after the reporting period, including a new credit facility, stock repurchase program, and additional derivative contracts - On October 14, 2021, the Company entered into a **Third Amended and Restated Credit Agreement (New Credit Facility)** with an initial borrowing base of **$850.0 million** and an initial aggregate elected commitment amount of **$700.0 million**, maturing in October 2025[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) - On November 1, 2021, the Board of Directors approved a **stock repurchase program** to acquire up to **$100.0 million of its New Common Stock** through December 31, 2022[218](index=218&type=chunk) - Subsequent to September 30, 2021, the Company entered into additional natural gas derivative contracts, including **basis swaps and fixed price swaps for 2021-2023**[220](index=220&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operations](index=48&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Conditions%20and%20Results%20of%20Operations) This section provides management's perspective on Gulfport's financial condition, results of operations, and liquidity, highlighting the impact of its Chapter 11 emergence and fresh start accounting [Introduction](index=48&type=section&id=Introduction) This introduction outlines Gulfport's business, strategic focus, and management's approach to presenting financial results post-reorganization - Gulfport is an independent natural gas-weighted exploration and production company with principal properties in **Eastern Ohio (Utica formation)** and **central Oklahoma (SCOOP Woodford and Springer formations)**[223](index=223&type=chunk) - The Company's strategy focuses on developing assets to generate **sustainable cash flow**, improve **margins and operating efficiencies**, and enhance **Environmental, Social and Governance (ESG) and safety performance**[223](index=223&type=chunk) - Management views operating results for the nine months ended September 30, 2021, by combining the Successor and Predecessor periods ('Current Combined YTD Period') for a more meaningful comparison to prior periods, despite not complying with GAAP[224](index=224&type=chunk) [Recent Developments](index=48&type=section&id=Recent%20Developments) This section highlights key recent events, including the company's Chapter 11 emergence, leadership changes, new credit facility, and stock repurchase program - The Company emerged from Chapter 11 voluntary reorganization on May 17, 2021, reducing total indebtedness by **$1.4 billion** and strengthening its balance sheet[225](index=225&type=chunk)[227](index=227&type=chunk) - Timothy Cutt fully assumed the role of Chief Executive Officer, dropping the 'Interim' designation, effective September 2, 2021[228](index=228&type=chunk) - A New Credit Facility was entered into on October 14, 2021, with an aggregate maximum principal amount of up to **$1.5 billion**, an initial borrowing base of **$850.0 million**, and an initial elected commitment of **$700.0 million**[229](index=229&type=chunk) - A **$100.0 million stock repurchase program** for New Common Stock was approved on November 1, 2021, authorized to extend through December 31, 2022[230](index=230&type=chunk) [2021 Operational and Financial Highlights](index=49&type=section&id=2021%20Operational%20and%20Financial%20Highlights) This section summarizes significant operational and financial achievements in 2021, including settlement agreements, drilling activities, and enhanced liquidity - Finalized a settlement agreement with TC Energy Corporation in September 2021, rejecting firm transportation contracts for a **$43.8 million cash payment**, with substantially all of this amount expected to be recovered through assigned claims[233](index=233&type=chunk)[234](index=234&type=chunk) - Reached an agreement in principle with Stingray Pressure Pumping LLC in September 2021, fully resolving longstanding litigation[237](index=237&type=chunk) - Completed the six-well Angelo pad in the Utica in September 2021, which came online in early October at a combined gross production rate of **250 MMcfe per day**[237](index=237&type=chunk) - The New Credit Facility, effective October 14, 2021, increased the elected commitment from **$580 million to $700 million**, enhancing liquidity by over **$160 million**[237](index=237&type=chunk) [2021 Production and Drilling Activity](index=50&type=section&id=2021%20Production%20and%20Drilling%20Activity) This section details the company's net production volumes and drilling activities in the Utica and SCOOP regions for the current and prior periods Total Net Production (MMcfe/day) | Period | Amount | | :------------------------------------------ | :----- | | Current Successor Quarter (Q3 2021) | 973.3 | | Prior Predecessor Quarter (Q3 2020) | 992.0 | | Current Combined YTD Period (2021) | 981.7 | | Prior Predecessor YTD Period (2020) | 1,024.2 | - The **2% decrease in Q3 2021 production** and **4% decrease in Current Combined YTD production** were largely due to the timing of development activity in the Utica[235](index=235&type=chunk)[238](index=238&type=chunk) - During the Current Combined YTD Period, the Company spud **12 gross (11.6 net) wells in the Utica** and **4 gross (3.9 net) wells in the SCOOP**[239](index=239&type=chunk)[240](index=240&type=chunk) - As of October 28, 2021, the Company had **two operated drilling rigs running in the Utica** and **one in the SCOOP**, with plans to add another SCOOP rig in the fourth quarter of 2021[240](index=240&type=chunk)[241](index=241&type=chunk) [Current Successor Quarter Compared to Prior Predecessor Quarter](index=52&type=section&id=Current%20Successor%20Quarter%20Compared%20to%20Prior%20Predecessor%20Quarter) This section compares key financial and operational metrics for the third quarter of 2021 (Successor) against the third quarter of 2020 (Predecessor) Key Financial and Operational Metrics (Q3 2021 vs Q3 2020) | Metric | Q3 2021 (Successor) | Q3 2020 (Predecessor) | Change (%) | | :------------------------------------------ | :------------------ | :------------------ | :--------- | | Natural Gas Sales (without derivatives, $k) | $301,516 | $155,163 | +94.3% | | Oil and Condensate Sales (without derivatives, $k) | $33,279 | $16,012 | +107.8% | | NGL Sales (without derivatives, $k) | $45,153 | $18,824 | +139.9% | | Total Sales (without derivatives, $k) | $379,948 | $189,999 | +100.0% | | Net Loss on Derivatives ($k) | $(622,476) | $(53,823) | -1056.6% | | Transportation, Gathering, Processing and Compression ($/Mcfe) | $0.94 | $1.21 | -22.3% | | General and Administrative Expenses, net ($k) | $16,691 | $20,331 | -17.8% | - The significant increase in sales revenues (without derivatives) was driven by a substantial increase in realized commodity prices across **natural gas (+102%)**, **oil and condensate (+87%)**, and **NGL (+94%)**[245](index=245&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk) - Net loss on natural gas, oil, and NGL derivatives increased significantly due to the rise in both realized and futures pricing for commodities[248](index=248&type=chunk) - Transportation, gathering, processing, and compression costs decreased primarily due to savings associated with rejected midstream contracts and renegotiation through the bankruptcy process[251](index=251&type=chunk) [Current Successor YTD Period and Current Predecessor YTD Period Compared to Prior Predecessor YTD Period](index=57&type=section&id=Current%20Successor%20YTD%20Period%20and%20Current%20Predecessor%20YTD%20Period%20Compared%20to%20Prior%20Predecessor%20YTD%20Period) This section analyzes combined year-to-date financial and operational performance for 2021 against the prior year, highlighting significant changes Key Financial and Operational Metrics (Current Combined YTD 2021 vs Prior Predecessor YTD 2020) | Metric | Current Combined YTD 2021 | Prior Predecessor YTD 2020 | Change (%) | | :------------------------------------------ | :------------------------ | :------------------------- | :--------- | | Natural Gas Sales (without derivatives, $k) | $757,624 | $456,859 | +65.8% | | Oil and Condensate Sales (without derivatives, $k) | $79,972 | $47,553 | +68.1% | | NGL Sales (without derivatives, $k) | $98,010 | $45,989 | +113.1% | | Total Sales (without derivatives, $k) | $935,606 | $550,401 | +70.0% | | Net (Loss) Gain on Derivatives ($k) | $(899,373) | $71,414 | N/A (shift from gain to loss) | | Lease Operating Expenses ($/Mcfe) | $0.14 | $0.15 | -6.7% | | Transportation, Gathering, Processing and Compression ($/Mcfe) | $1.07 | $1.19 | -10.1% | | Impairment of Oil and Gas Properties ($k) | $117,813 | $1,357,099 | -91.3% | - Total sales revenues (without derivatives) increased significantly due to **higher realized commodity prices**, despite a slight decrease in sales volumes[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) - The Company experienced a significant shift from a net gain to a **net loss on natural gas, oil, and NGL derivatives**, primarily due to a substantial increase in futures pricing[264](index=264&type=chunk) - Lease operating expenses and transportation, gathering, processing, and compression costs decreased due to **ongoing cost reduction initiatives**, rejected midstream contracts, and lower production[265](index=265&type=chunk)[267](index=267&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity strategy, funded debt, and capital expenditure plans, emphasizing cash flow and borrowing capacity - The Company aims to maintain sufficient liquidity through internally generated cash flows from operations, derivative contracts, and borrowing capacity under the New Credit Facility[280](index=280&type=chunk)[282](index=282&type=chunk) Funded Debt and Liquidity (in thousands) | Metric | September 30, 2021 | October 28, 2021 (Post New Credit Facility) | | :------------------------------------------ | :----------------- | :------------------------------------------ | | Cash and Cash Equivalents | $4,485 | $6,200 | | Borrowings under Exit/New Credit Facility | $35,600 | $246,000 | | Borrowings under First-Out Term Loan | $165,000 | N/A (refinanced) | | Letters of Credit Outstanding | $115,500 | $97,100 | | Outstanding 2026 Notes | $550,000 | $550,000 | | **Total Principal Amount of Funded Debt** | **$750,600** | **$796,000** | - Estimated capital expenditures for drilling and completion activities in 2021 are in the range of **$270 million to $290 million**[298](index=298&type=chunk) - A **$100.0 million stock repurchase program** was approved on November 1, 2021, to opportunistically acquire New Common Stock[304](index=304&type=chunk) [Critical Accounting Policies and Estimates](index=66&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms that there have been no significant changes to the company's critical accounting policies and estimates since the last annual report - There have been no significant changes in the Company's critical accounting policies from those disclosed in its 2020 Annual Report on Form 10-K[308](index=308&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses Gulfport's exposure to market risks, primarily commodity price volatility for natural gas, oil, and NGL, and interest rate risk on its floating-rate debt [Natural Gas, Oil and Natural Gas Liquids Derivative Instruments](index=67&type=section&id=Natural%20Gas%2C%20Oil%20and%20Natural%20Gas%20Liquids%20Derivative%20Instruments) This section details the company's use of derivative instruments to manage commodity price volatility and quantifies the potential impact of price changes - The Company uses various derivative instruments, including **swaps, basis swaps, call options, and costless collars**, to mitigate exposure to adverse market price changes for natural gas, oil, and NGL[316](index=316&type=chunk)[318](index=318&type=chunk)[322](index=322&type=chunk) Net Liability Derivative Position (in millions) | Date | Amount | | :------------------- | :------- | | September 30, 2021 | $(830.6) | | September 30, 2020 | $(80.6) | - A **10% increase in underlying commodity prices** would increase the Company's derivative liability by approximately **$231.5 million**, while a **10% decrease** would decrease it by approximately **$220.3 million**[323](index=323&type=chunk) [Interest Rate Risk](index=68&type=section&id=Interest%20Rate%20Risk) This section addresses the company's exposure to interest rate fluctuations on its floating-rate debt and the absence of hedging instruments - The Company's revolving credit agreement is structured under **floating rate terms**, making its interest expense sensitive to fluctuations in prime rates or Eurodollar rates[324](index=324&type=chunk) Borrowings Outstanding and Weighted Average Interest Rates at September 30, 2021 | Facility | Amount (in millions) | Weighted Average Rate | | :-------------------- | :------------------- | :-------------------- | | Exit Facility | $35.6 | 4.50% | | First-Out Term Loan | $165.0 | 5.50% | - As of September 30, 2021, the Company did not have any interest rate swaps to hedge interest rate risks[324](index=324&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of Gulfport's disclosure controls and procedures as of September 30, 2021, and reports that there have been no material changes in internal control over financial reporting during the last fiscal quarter [Evaluation of Disclosure Control and Procedures](index=69&type=section&id=Evaluation%20of%20Disclosure%20Control%20and%20Procedures) This section reports on the evaluation of the company's disclosure controls and procedures, concluding their effectiveness as of September 30, 2021 - An evaluation of the effectiveness of the design and operation of disclosure controls and procedures was performed under the supervision of the Chief Executive Officer and Chief Financial Officer[325](index=325&type=chunk)[326](index=326&type=chunk) - Based on the evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of September 30, 2021[326](index=326&type=chunk) [Changes in Internal Control over Financial Reporting](index=69&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section confirms that no material changes occurred in internal control over financial reporting during the last fiscal quarter - There have been no changes in internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting[328](index=328&type=chunk) [PART II OTHER INFORMATION](index=70&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers additional information not included in the financial statements, such as legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the detailed discussion of legal proceedings and related contingencies provided in Note 9 to the consolidated financial statements [Legal Proceedings](index=70&type=section&id=Legal%20Proceedings) This section directs readers to Note 9 for comprehensive information regarding the company's ongoing legal proceedings - Information regarding legal proceedings is set forth in **Note 9** in the accompanying condensed consolidated financial statements[331](index=331&type=chunk) [Item 1A. Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the Company's Annual Report on Form 10-K for the year ended December 31, 2020, and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, for a comprehensive discussion of factors that could materially adversely affect the business [Risk Factors](index=70&type=section&id=Risk%20Factors) This section refers to previous filings for a detailed discussion of factors that could materially adversely affect the company's business - Factors that could materially adversely affect the Company's business, financial condition, operating results, or liquidity are described in **Item 1A of the Annual Report on Form 10-K for the year ended December 31, 2020**, and the **Quarterly Report on Form 10-Q for the quarter ended June 30, 2021**[332](index=332&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or issuer repurchases of equity securities during the reporting period [Unregistered Sales of Equity Securities](index=70&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities) This section confirms that no unregistered sales of equity securities occurred during the reporting period - None[333](index=333&type=chunk) [Issuer Repurchases of Equity Securities](index=70&type=section&id=Issuer%20Repurchases%20of%20Equity%20Securities) This section confirms that no issuer repurchases of equity securities occurred during the reporting period - None[334](index=334&type=chunk) [Item 3. Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section reports that there were no defaults upon senior securities during the reporting period [Defaults Upon Senior Securities](index=70&type=section&id=Defaults%20Upon%20Senior%20Securities) This section confirms that no defaults upon senior securities occurred during the reporting period - None[335](index=335&type=chunk) [Item 4. Mine Safety Disclosures](index=70&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that this item is not applicable to the Company [Mine Safety Disclosures](index=70&type=section&id=Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company's operations - Not applicable[336](index=336&type=chunk) [Item 5. Other Information](index=70&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report under this item [Other Information](index=70&type=section&id=Other%20Information) This section confirms that no additional information is required to be reported under this item - None[337](index=337&type=chunk) [Item 6. Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section provides a list of exhibits filed as part of the Form 10-Q, including key agreements and certifications [INDEX OF EXHIBITS](index=71&type=section&id=INDEX%20OF%20EXHIBITS) This section lists all exhibits accompanying the report, including organizational documents, credit agreements, and officer certifications - Exhibits include the **Amended Joint Chapter 11 Plan of Reorganization, Amended and Restated Certificate of Incorporation and Bylaws, Third Amended and Restated Credit Agreement, CEO Agreement Amendment**, and various certifications (CEO, CFO)[340](index=340&type=chunk) [Signatures](index=73&type=section&id=Signatures) This section confirms the official signing of the Form 10-Q report by the authorized representative of Gulfport Energy Corporation [SIGNATURES](index=73&type=section&id=SIGNATURES) This section formally attests to the accuracy and completeness of the report through the signature of the Chief Financial Officer - The report was signed on November 3, 2021, by **William Buese, Chief Financial Officer**, on behalf of Gulfport Energy Corporation[345](index=345&type=chunk)