Gulfport Energy(GPOR) - 2025 Q1 - Quarterly Results

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