Gulfport Energy(GPOR) - 2024 Q3 - Quarterly Results

Production Volumes by Asset Area This section details Gulfport Energy's natural gas, oil, and NGL production volumes for both quarterly and year-to-date periods Production Volumes (Q3 2024) Gulfport Energy's total combined production for Q3 2024 remained stable year-over-year at 1,057,164 Mcfe/day. Natural gas production saw a slight decrease, while oil and condensate, and NGL production experienced mixed changes, with a notable increase in Utica & Marcellus oil and condensate | Metric | Q3 2024 | Q3 2023 | YoY Change | | :---------------------- | :---------- | :---------- | :--------- | | Natural gas (Mcf/day) | 966,522 | 971,352 | -0.5% | | Oil and condensate (Bbl/day) | 4,618 | 3,195 | +44.5% | | NGL (Bbl/day) | 10,489 | 11,061 | -5.2% | | Combined (Mcfe/day) | 1,057,164 | 1,056,887 | +0.03% | - Total combined production remained stable year-over-year at 1,057,164 Mcfe/day, with a notable increase in oil and condensate production[2] Production Volumes (YTD Q3 2024) For the nine months ended September 30, 2024, total combined production slightly increased to 1,053,687 Mcfe/day compared to the prior year. Natural gas production saw an increase, while oil and condensate, and NGL production experienced declines, primarily in the SCOOP region for NGLs | Metric | YTD Q3 2024 | YTD Q3 2023 | YoY Change | | :---------------------- | :---------- | :---------- | :--------- | | Natural gas (Mcf/day) | 970,842 | 953,989 | +1.8% | | Oil and condensate (Bbl/day) | 3,569 | 3,813 | -6.5% | | NGL (Bbl/day) | 10,239 | 12,387 | -17.4% | | Combined (Mcfe/day) | 1,053,687 | 1,051,188 | +0.2% | - Total combined production slightly increased year-over-year for the nine-month period, driven by higher natural gas volumes, while NGL and oil/condensate production declined[3] Production and Pricing This section analyzes Gulfport Energy's sales volumes, total sales, average prices, and production costs for natural gas, oil, and NGLs Production and Pricing (Q3 2024) In Q3 2024, natural gas sales volumes slightly decreased, but the average price including settled derivatives increased. Oil and condensate sales volumes and total sales increased significantly, while NGL sales volumes and total sales decreased. Production costs per Mcfe generally increased | Metric | Q3 2024 | Q3 2023 | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Natural gas production volumes (MMcf) | 88,920 | 89,364 | -0.5% | | Natural gas total sales ($) | 159,862 | 177,401 | -9.9% | | Avg. natural gas price (incl. derivatives) ($/Mcf) | 2.75 | 2.53 | +8.7% | | Oil & condensate production volumes (MBbl) | 425 | 294 | +44.6% | | Oil & condensate total sales ($) | 29,467 | 22,896 | +28.7% | | Avg. oil & condensate price (incl. derivatives) ($/Bbl) | 69.57 | 70.65 | -1.5% | | NGL production volumes (MBbl) | 965 | 1,018 | -5.3% | | NGL total sales ($) | 26,617 | 26,953 | -1.2% | | Avg. NGL price (incl. derivatives) ($/Bbl) | 27.42 | 29.11 | -5.8% | | Total sales (all products) ($) | 215,946 | 227,250 | -5.0% | | Avg. lease operating expenses ($/Mcfe) | 0.19 | 0.16 | +18.8% | | Avg. transportation, gathering, processing and compression ($/Mcfe) | 0.92 | 0.89 | +3.4% | - Average natural gas price, including settled derivatives, increased by 8.7% year-over-year, while total natural gas sales decreased by 9.9%[4] - Oil and condensate production volumes and total sales increased significantly by 44.6% and 28.7% respectively[4] Production and Pricing (YTD Q3 2024) For the nine months ended September 30, 2024, natural gas production volumes increased, but total sales and average price without derivatives decreased significantly. Oil and condensate, and NGL sales volumes and total sales also declined. Average prices including settled derivatives remained relatively stable for natural gas but decreased for NGLs. Production costs per Mcfe remained stable or slightly decreased | Metric | YTD Q3 2024 | YTD Q3 2023 | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Natural gas production volumes (MMcf) | 266,011 | 260,439 | +2.1% | | Natural gas total sales ($) | 492,606 | 619,181 | -20.4% | | Avg. natural gas price (incl. derivatives) ($/Mcf) | 2.76 | 2.75 | +0.4% | | Oil & condensate production volumes (MBbl) | 978 | 1,041 | -6.1% | | Oil & condensate total sales ($) | 70,295 | 76,212 | -7.7% | | Avg. oil & condensate price (incl. derivatives) ($/Bbl) | 71.72 | 70.92 | +1.1% | | NGL production volumes (MBbl) | 2,805 | 3,382 | -17.0% | | NGL total sales ($) | 80,870 | 92,935 | -13.0% |\ | Avg. NGL price (incl. derivatives) ($/Bbl) | 28.28 | 29.36 | -3.7% | | Total sales (all products) ($) | 643,771 | 788,328 | -18.3% | | Avg. lease operating expenses ($/Mcfe) | 0.18 | 0.18 | 0.0% | | Avg. transportation, gathering, processing and compression ($/Mcfe) | 0.91 | 0.91 | 0.0% | - Total sales for natural gas, oil, and NGLs decreased by 18.3% year-over-year, primarily due to a 20.4% decline in natural gas sales revenue despite a slight increase in volume[7] - Average natural gas price without the impact of derivatives decreased significantly from $2.38/Mcf to $1.85/Mcf[7] Consolidated Statements of Income This section presents Gulfport's financial performance, detailing revenues, expenses, and net income for both quarterly and year-to-date periods Consolidated Statements of Income (Q3 2024) Gulfport reported a net loss of $14.0 million in Q3 2024, a significant decline from a net income of $608.4 million in Q3 2023. This was primarily driven by lower natural gas sales, an impairment of oil and natural gas properties, and a loss on debt extinguishment, despite a higher net gain on derivatives | Metric | Q3 2024 ($) | Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Total revenues | 253,912 | 266,667 | -4.8% | | Net gain on derivatives | 37,966 | 39,417 | -3.7% | | Impairment of oil and natural gas properties| 30,487 | 0 | N/A | | Loss on debt extinguishment | 13,388 | 0 | N/A | | Total operating expenses | 239,325 | 199,483 | +20.0% | | Income from operations | 14,587 | 67,184 | -78.3% | | Net (Loss) Income | (13,967) | 608,444 | -102.3% | | Net (Loss) Income Attributable to Common Stockholders | (15,060) | 517,555 | -102.9% | | Basic EPS ($) | (0.83) | 27.72 | -103.0% | - Net income shifted from a $608.4 million gain in Q3 2023 to a $14.0 million loss in Q3 2024[9] - Impairment of oil and natural gas properties ($30.5 million) and loss on debt extinguishment ($13.4 million) significantly impacted Q3 2024 results[9] Consolidated Statements of Income (YTD Q3 2024) For the nine months ended September 30, 2024, net income dramatically decreased to $11.9 million from $1,225.2 million in the prior year. Total revenues fell significantly due to lower natural gas sales and a substantial reduction in net gain on derivatives. Operating expenses increased, further contributing to the decline in profitability | Metric | YTD Q3 2024 ($) | YTD Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Total revenues | 718,258 | 1,302,594 | -44.9% | | Net gain on derivatives | 74,487 | 514,266 | -85.5% | | Impairment of oil and natural gas properties| 30,487 | 0 | N/A | | Loss on debt extinguishment | 13,388 | 0 | N/A | | Total operating expenses | 640,024 | 610,240 | +4.9% | | Income from operations | 78,234 | 692,354 | -88.7% | | Net Income | 11,856 | 1,225,185 | -99.0% | | Net Income Attributable to Common Stockholders | 7,304 | 1,041,073 | -99.3% | | Basic EPS ($) | 0.40 | 55.72 | -99.3% | - Net income decreased by over 99% YoY, from $1,225.2 million to $11.9 million[11] - Total revenues declined by 44.9% YoY, largely due to a significant drop in net gain on derivatives (from $514.3 million to $74.5 million)[11] Consolidated Balance Sheets As of September 30, 2024, Gulfport's total assets decreased slightly to $3.18 billion from $3.27 billion at December 31, 2023, primarily due to a reduction in current assets, particularly short-term derivative instruments and accounts receivable. Total liabilities saw a modest increase, while total stockholders' equity decreased | Metric | Sep 30, 2024 ($) | Dec 31, 2023 ($) | Change ($) | % Change | | :------------------------------------------ | :----------- | :----------- | :---------- | :------- | | Cash and cash equivalents | 3,220 | 1,929 | 1,291 | +66.9% | | Total current assets | 223,445 | 396,806 | (173,361) | -43.7% | | Total assets | 3,178,156 | 3,267,613 | (89,457) | -2.7% | | Total current liabilities | 327,077 | 344,454 | (17,377) | -5.0% | | Long-term debt | 694,389 | 667,382 | 27,007 | +4.0% | | Total liabilities | 1,078,171 | 1,061,719 | 16,452 | +1.5% | | Total stockholders' equity | 2,056,240 | 2,161,680 | (105,440) | -4.9% | - Total current assets decreased by 43.7% from $396.8 million to $223.4 million, mainly driven by a reduction in short-term derivative instruments[13] - Long-term debt increased from $667.4 million to $694.4 million, while total stockholders' equity decreased by 4.9%[16][17] Consolidated Statement of Cash Flows This section outlines Gulfport's cash flow activities from operations, investing, and financing for both quarterly and year-to-date periods Consolidated Statement of Cash Flows (Q3 2024) In Q3 2024, net cash provided by operating activities increased to $189.7 million from $156.3 million in Q3 2023, despite a net loss. This was largely due to higher net cash receipts on settled derivative instruments. Net cash used in financing activities increased significantly due to debt extinguishment and common stock repurchases | Metric | Q3 2024 ($) | Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Net (loss) income | (13,967) | 608,444 | -102.3% | | Net cash provided by operating activities | 189,698 | 156,274 | +21.4% | | Net cash used in investing activities | (132,553) | (138,388) | -4.2% | | Net cash used in financing activities | (55,158) | (14,830) | +272.0% | | Net change in cash and cash equivalents | 1,987 | 3,056 | -35.0% | - Net cash provided by operating activities increased by 21.4% year-over-year, largely due to $84.9 million in net cash receipts on settled derivative instruments[18] - Net cash used in financing activities surged by 272.0% to $55.2 million, driven by principal payments on Credit Facility, issuance and early retirement of Senior Notes, and increased common stock repurchases[18] Consolidated Statement of Cash Flows (YTD Q3 2024) For the nine months ended September 30, 2024, net cash provided by operating activities decreased to $501.2 million from $567.7 million in the prior year. This was primarily due to a lower net income, partially offset by higher net cash receipts on settled derivative instruments. Net cash used in financing activities decreased, mainly due to the issuance of 2029 Senior Notes | Metric | YTD Q3 2024 ($) | YTD Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Net income | 11,856 | 1,225,185 | -99.0% | | Net cash provided by operating activities | 501,185 | 567,680 | -11.7% | | Net cash used in investing activities | (379,051) | (419,981) | -9.7% | | Net cash used in financing activities | (120,843) | (146,633) | -17.6% | | Net change in cash and cash equivalents | 1,291 | 1,066 | +21.1% | - Net cash provided by operating activities decreased by 11.7% year-over-year, primarily due to the significant drop in net income, partially offset by higher net cash receipts on settled derivative instruments ($240.9 million vs $101.9 million)[19] - Net cash used in financing activities decreased by 17.6%, influenced by the issuance of $650 million in 2029 Senior Notes and the early retirement of $524.3 million in 2026 Senior Notes[19] Updated 2024E Guidance Gulfport Energy updated its 2024 guidance, projecting average daily gas equivalent production between 1,055 and 1,070 MMcfe/day, with approximately 92% gas. The company anticipates specific differentials for natural gas, NGLs, and oil, and provided expense guidance for lease operating, taxes, and transportation costs. Total base capital expenditures are projected between $375 million and $395 million | Metric | 2024E Low | 2024E High | | :------------------------------------------ | :---------- | :---------- | | Average daily gas equivalent (MMcfe/day) | 1,055 | 1,070 | | % Gas | ~92% | ~92% | | Natural gas differential to NYMEX ($/Mcf) | (0.20) | (0.35) | | NGL (% of WTI) | 35% | 40% | | Oil differential to NYMEX WTI ($/Bbl) | (5.50) | (6.50) | | Lease operating expense ($/Mcfe) | 0.17 | 0.19 | | Taxes other than income ($/Mcfe) | 0.08 | 0.10 | | Transportation, gathering, processing and compression ($/Mcfe) | 0.90 | 0.94 | | D&C Capital expenditures (incurred) ($) | 325 | 335 | | Maintenance leasehold and land ($) | 50 | 60 | | Total base capital expenditures ($) | 375 | 395 | - Gulfport projects average daily gas equivalent production for 2024 to be between 1,055 and 1,070 MMcfe/day, with approximately 92% natural gas[22] - Total base capital expenditures for 2024 are guided to be between $375 million and $395 million, excluding discretionary acreage acquisitions[23] Derivatives As of October 28, 2024, Gulfport Energy has various hedging positions for natural gas, oil, and NGLs extending into 2025 and 2026. These include fixed price swaps, fixed price collars, and fixed price calls sold for natural gas, as well as basis hedges for different natural gas hubs. Oil and NGL contracts primarily consist of fixed price swaps and collars for Q4 2024 and full year 2025 | Natural Gas Contract Summary (NYMEX) | 4Q2024 Volume (BBtupd) | 4Q2024 Wtd Avg Price ($/MMBtu) | FY2025 Volume (BBtupd) | FY2025 Wtd Avg Price ($/MMBtu) | FY2026 Volume (BBtupd) | FY2026 Wtd Avg Price ($/MMBtu) | | :----------------------------------- | :--------------------- | :----------------------------- | :--------------------- | :----------------------------- | :--------------------- | :----------------------------- | | Fixed Price Swaps | 400 | $3.77 | 250 | $3.82 | 160 | $3.59 | | Fixed Price Collars (Floor) | 225 | $3.36 | 220 | $3.37 | 70 | $3.31 | | Fixed Price Collars (Ceiling) | 225 | $5.14 | 220 | $4.23 | 70 | $4.06 | | Fixed Price Calls Sold | 202 | $3.33 | 193 | $5.80 | — | — | | Oil Contract Summary (WTI) | 4Q2024 Volume (Bblpd) | 4Q2024 Wtd Avg Price ($/Bbl) | FY2025 Volume (Bblpd) | FY2025 Wtd Avg Price ($/Bbl) | | :----------------------------------- | :--------------------- | :----------------------------- | :--------------------- | :----------------------------- | | Fixed Price Swaps | 500 | $77.50 | 2,000 | $74.50 | | Fixed Price Collars (Floor) | 1,000 | $62.00 | — | — | | Fixed Price Collars (Ceiling) | 1,000 | $80.00 | — | — | | NGL Contract Summary (C3 Propane) | 4Q2024 Volume (Bblpd) | 4Q2024 Wtd Avg Price ($/Bbl) | FY2025 Volume (Bblpd) | FY2025 Wtd Avg Price ($/Bbl) | | :----------------------------------- | :--------------------- | :----------------------------- | :--------------------- | :----------------------------- | | Fixed Price Swaps | 2,500 | $30.25 | 2,000 | $30.09 | - Gulfport has significant natural gas hedging in place for 4Q2024 (400 BBtupd fixed price swaps, 225 BBtupd fixed price collars) and extending into 2025 and 2026[25] - Oil hedging includes 500 Bblpd fixed price swaps and 1,000 Bblpd fixed price collars for 4Q2024, with 2,000 Bblpd fixed price swaps for FY2025[25] Non-GAAP Reconciliations This section provides reconciliations of non-GAAP financial measures, including Adjusted Net Income, Adjusted EBITDA, Adjusted Free Cash Flow, and Recurring G&A, to their most directly comparable GAAP measures Non-GAAP Definitions This section defines key non-GAAP financial measures used by Gulfport Energy, including Adjusted Net Income, Adjusted EBITDA, Adjusted Free Cash Flow, and Recurring General and Administrative Expense. These metrics are used by management for planning and evaluation, and are provided to investors as supplementary information, not as substitutes for GAAP measures - Non-GAAP measures like Adjusted Net Income, Adjusted EBITDA, Adjusted Free Cash Flow, and Recurring G&A are used for internal evaluation and investor insight, but are not GAAP substitutes[26][27] - Adjusted Net Income excludes non-cash derivative loss/gain, impairment, non-recurring G&A, stock-based compensation, restructuring costs, debt extinguishment loss, and other non-material items, along with their tax effects[27] - Adjusted EBITDA adds back interest, deferred tax, DD&A, impairment, accretion, non-cash derivative loss/gain, non-recurring G&A, stock-based compensation, restructuring costs, debt extinguishment loss, and other items to net income[28] Adjusted Net Income This section reconciles GAAP net income to Adjusted Net Income, excluding non-cash and non-recurring items for a clearer view of operational profitability Adjusted Net Income (Q3 2024) For Q3 2024, Adjusted Net Income was $61.8 million, a decrease from $65.0 million in Q3 2023. This adjustment removes significant non-cash and non-recurring items, such as the GAAP net loss, non-cash derivative loss, impairment, and debt extinguishment loss, providing a clearer view of operational profitability | Metric | Q3 2024 ($) | Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Net (Loss) Income (GAAP) | (13,967) | 608,444 | -102.3% | | Non-cash derivative loss | 46,911 | 9,644 | +386.9% | | Impairment of oil and natural gas properties| 30,487 | 0 | N/A | | Loss on debt extinguishment | 13,388 | 0 | N/A | | Tax effect of adjustments | (20,801) | (554,741) | -96.2% | | Adjusted Net Income (Non-GAAP) | 61,848 | 64,969 | -4.9% | - Adjusted Net Income for Q3 2024 was $61.8 million, a 4.9% decrease from $65.0 million in Q3 2023, after removing significant non-cash and non-recurring items[33] - The tax effect of adjustments was significantly lower in Q3 2024 ($20.8 million benefit) compared to Q3 2023 ($554.7 million benefit), due to the release of a valuation allowance in the prior year[33] Adjusted Net Income (YTD Q3 2024) For the nine months ended September 30, 2024, Adjusted Net Income was $185.4 million, down from $251.0 million in the prior year. Key adjustments included a non-cash derivative loss in 2024 versus a gain in 2023, and the impact of impairment charges and debt extinguishment loss in 2024 | Metric | YTD Q3 2024 ($) | YTD Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Net Income (GAAP) | 11,856 | 1,225,185 | -99.0% | | Non-cash derivative loss (gain) | 166,454 | (412,319) | N/A | | Impairment of oil and natural gas properties| 30,487 | 0 | N/A | | Loss on debt extinguishment | 13,388 | 0 | N/A | | Tax effect of adjustments | (50,272) | (554,741) | -90.9% | | Adjusted Net Income (Non-GAAP) | 185,414 | 250,968 | -26.2% | - Adjusted Net Income for YTD Q3 2024 decreased by 26.2% to $185.4 million from $251.0 million in the prior year[35] - The non-cash derivative adjustment shifted from a $412.3 million gain in 2023 to a $166.5 million loss in 2024, significantly impacting the adjusted net income[35] Adjusted EBITDA This section reconciles GAAP net income to Adjusted EBITDA, providing a measure of operational performance before non-cash and non-operating items Adjusted EBITDA (Q3 2024) Gulfport's Adjusted EBITDA for Q3 2024 increased to $178.1 million from $160.0 million in Q3 2023. This improvement was driven by higher DD&A, impairment, and accretion, as well as a non-cash derivative loss, which offset the GAAP net loss | Metric | Q3 2024 ($) | Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Net (Loss) Income (GAAP) | (13,967) | 608,444 | -102.3% | | Interest expense | 15,866 | 14,919 | +6.3% | | Deferred income tax benefit | (3,833) | (554,741) | -93.1% | | DD&A, impairment and accretion | 113,895 | 80,144 | +42.1% | | Non-cash derivative loss | 46,911 | 9,644 | +386.9% | | Loss on debt extinguishment | 13,388 | 0 | N/A | | Adjusted EBITDA (Non-GAAP) | 178,090 | 160,032 | +11.3% | - Adjusted EBITDA increased by 11.3% to $178.1 million in Q3 2024, compared to $160.0 million in Q3 2023[37] - The increase was primarily driven by higher DD&A, impairment, and accretion, and a larger non-cash derivative loss in Q3 2024[37] Adjusted EBITDA (YTD Q3 2024) For the nine months ended September 30, 2024, Adjusted EBITDA slightly decreased to $528.3 million from $534.2 million in the prior year. While DD&A, impairment, and accretion increased, the significant shift from a non-cash derivative gain in 2023 to a loss in 2024 contributed to the modest decline | Metric | YTD Q3 2024 ($) | YTD Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Net Income (GAAP) | 11,856 | 1,225,185 | -99.0% | | Interest expense | 46,027 | 42,402 | +8.6% | | Deferred income tax expense (benefit) | 3,433 | (554,741) | N/A | | DD&A, impairment and accretion | 273,593 | 240,864 | +13.6% | | Non-cash derivative loss (gain) | 166,454 | (412,319) | N/A | | Loss on debt extinguishment | 13,388 | 0 | N/A | | Adjusted EBITDA (Non-GAAP) | 528,252 | 534,234 | -1.1% | - Adjusted EBITDA for YTD Q3 2024 slightly decreased by 1.1% to $528.3 million from $534.2 million in the prior year[39] - The shift from a non-cash derivative gain of $412.3 million in 2023 to a loss of $166.5 million in 2024 was a major factor in the slight decline[39] Adjusted Free Cash Flow This section reconciles net cash from operating activities to Adjusted Free Cash Flow, highlighting cash available for discretionary uses after capital expenditures Adjusted Free Cash Flow (Q3 2024) Adjusted Free Cash Flow for Q3 2024 significantly increased to $72.6 million from $48.9 million in Q3 2023. This improvement was driven by higher net cash provided by operating activities and lower capital expenditures incurred | Metric | Q3 2024 ($) | Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Net cash provided by operating activity (GAAP) | 189,698 | 156,274 | +21.4% | | Adjusted EBITDA (Non-GAAP) | 178,090 | 160,032 | +11.3% | | Capitalized expenses incurred | (6,413) | (5,611) | +14.3% | | Capital expenditures incurred | (83,254) | (90,584) | -8.1% | | Adjusted Free Cash Flow (Non-GAAP) | 72,557 | 48,918 | +48.3% | - Adjusted Free Cash Flow increased significantly by 48.3% to $72.6 million in Q3 2024, compared to $48.9 million in Q3 2023[41] - This increase was driven by higher net cash from operating activities and a decrease in capital expenditures incurred[41] Adjusted Free Cash Flow (YTD Q3 2024) For the nine months ended September 30, 2024, Adjusted Free Cash Flow increased to $131.6 million from $113.4 million in the prior year. This was primarily due to lower capital expenditures incurred, despite a decrease in net cash provided by operating activities | Metric | YTD Q3 2024 ($) | YTD Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | Net cash provided by operating activity (GAAP) | 501,185 | 567,680 | -11.7% | | Adjusted EBITDA (Non-GAAP) | 528,252 | 534,234 | -1.1% | | Capitalized expenses incurred | (17,991) | (16,117) | +11.6% | | Capital expenditures incurred | (332,633) | (362,298) | -8.1% | | Adjusted Free Cash Flow (Non-GAAP) | 131,601 | 113,417 | +16.0% | - Adjusted Free Cash Flow for YTD Q3 2024 increased by 16.0% to $131.6 million from $113.4 million in the prior year[43] - The increase was primarily due to a reduction in capital expenditures incurred, which offset the decrease in net cash provided by operating activities[43] Recurring General and Administrative Expenses This section presents recurring General and Administrative Expenses, adjusted for capitalization and non-recurring items, to provide a comparable view of core G&A costs Recurring G&A Expenses (Q3 2024) Recurring General and Administrative Expenses (before capitalization) for Q3 2024 increased to $16.9 million from $14.9 million in Q3 2023. This non-GAAP measure provides a view of G&A expenses comparable to peer companies using the successful efforts method | Metric | Q3 2024 ($) | Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | General and administrative expense (GAAP) | 10,479 | 9,894 | +5.9% | | Capitalized general and administrative expense | 6,495 | 5,658 | +14.8% | | Non-recurring general and administrative expense | (33) | (700) | -95.3% | | Recurring G&A before capitalization (Non-GAAP) | 16,941 | 14,852 | +14.1% | - Recurring General and Administrative Expenses (before capitalization) increased by 14.1% to $16.9 million in Q3 2024[45] Recurring G&A Expenses (YTD Q3 2024) For the nine months ended September 30, 2024, Recurring General and Administrative Expenses (before capitalization) increased to $47.4 million from $41.0 million in the prior year. This increase reflects higher cash and non-cash G&A components | Metric | YTD Q3 2024 ($) | YTD Q3 2023 ($) | YoY Change | | :------------------------------------------ | :---------- | :---------- | :--------- | | General and administrative expense (GAAP) | 30,429 | 27,238 | +11.7% | | Capitalized general and administrative expense | 18,530 | 16,186 | +14.5% | | Non-recurring general and administrative expense | (1,561) | (2,435) | -35.9% | | Recurring G&A before capitalization (Non-GAAP) | 47,398 | 40,989 | +15.6% | - Recurring General and Administrative Expenses (before capitalization) increased by 15.6% to $47.4 million for YTD Q3 2024[46]