Gulfport Energy(US:GPOR)2026-02-25 18:00Financial Performance - Net cash provided by operating activities was $803.2 million for the year ended December 31, 2025, compared to $650.0 million for the year ended December 31, 2024, primarily due to an increase in natural gas revenues [289]. - The company reported $48.7 million in letters of credit and $45.3 million in surety bonds as part of its off-balance sheet arrangements [283]. - The company did not record an impairment of its oil and natural gas properties for the year ended December 31, 2025, after recognizing ceiling test impairments of $373.2 million during 2024 [303]. - The company derives almost all of its revenue from the sale of natural gas, crude oil, and NGL, with revenue recorded in the month the product is delivered to the purchaser [306]. Capital Expenditures - Capital expenditures for the year ended December 31, 2025, totaled $526.1 million, with $428.4 million allocated to drilling and completion activities [284]. - Cash capital expenditures for oil and natural gas properties for the year ended December 31, 2025, were $527.6 million, an increase from $454.1 million in 2024, reflecting a rise in drilling and completion costs to $404.2 million from $325.1 million [291]. - The company expects drilling and completion capital expenditures for 2026 to be in the range of $365 million to $390 million, aiming for production of approximately 1.030 to 1.055 Bcfe per day [285]. Debt and Obligations - Total contractual cash obligations as of December 31, 2025, amounted to $2.05 billion, including $797 million in long-term debt principal and $200.1 million in interest [279]. - The company had $1.4 billion in borrowings and $1.2 billion in repayments on its Credit Facility during the year ended December 31, 2025, with $219.0 million in borrowings outstanding as of February 19, 2026 [290]. - The company’s variable rate indebtedness exposes it to interest rate risk, which could increase debt service obligations [46]. Operational Activities - In the year ended December 31, 2025, the company spud 24 gross (23.9 net) operated wells and commenced sales from 30 gross (30.0 net) operated wells at a total cost of approximately $401.0 million [290]. - The company’s operations are concentrated in eastern Ohio and central Oklahoma, making it vulnerable to regional operational risks [46]. Shareholder Returns - The company repurchased 1.8 million shares for approximately $336.3 million at a weighted average price of $188.65 per share in 2025, compared to 1.2 million shares for $184.5 million at a weighted average price of $153.35 per share in 2024 [293]. - The company redeemed 2,449 shares of preferred stock for cash totaling $31.3 million on the Redemption Date, with direct transaction-related costs of $1.1 million incurred [294]. - The company paid $1.7 million in cash dividends to preferred stockholders in 2025, down from $4.2 million in 2024, with no cash dividends paid after the Redemption Date [296]. - The company settled performance vesting restricted stock units awards in cash for $12.3 million during the year ended December 31, 2025 [295]. Market Conditions - During 2025, WTI prices ranged from $55.44 to $80.73 per barrel, while the Henry Hub spot market price of natural gas ranged from $2.65 to $9.86 per MMBtu [286]. - The company has entered into various derivative contracts, including natural gas swaps for 2026 with a daily volume of 36,603 MMBtu at a weighted average price of $3.86 [279].