Financial Highlights - Gulfport Energy's market capitalization is $3.1 billion as of April 30, 2025 [7] - The enterprise value (EV) is $3.8 billion, with an EV/2026 EBITDA multiple of 3.8x [7] - The company has approximately $906 million in liquidity [7] - Gulfport has a leverage ratio of 0.92x [7] - Gulfport has a common stock repurchase program authorizing purchases up to $1.0 billion of outstanding shares [15, 19] Production and Capital Expenditure - The company's 2025E total base capital is projected to be between $370 million and $395 million [7] - Gulfport anticipates a 2025E total net equivalent production of 1,040 to 1,065 MMcfe/day [7] - Net liquids production for 2025E is estimated to be 18.0 to 20.5 MBbl/day [7] - Approximately 89% of the company's production is natural gas [7] - Gulfport expects liquids production to increase by over 30% compared to FY 2024 [29] Reserves and Acreage - Gulfport's YE24 proved reserves in Utica and Marcellus are 3.0 Net Tcfe across approximately 228,500 net reservoir acres [6] - SCOOP YE24 proved reserves are 1.0 Net Tcfe across approximately 73,000 net reservoir acres [6]

[Production Volumes by Asset Area](index=2&type=section&id=Production%20Volumes%20by%20Asset%20Area) 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](index=3&type=section&id=Production%20and%20Pricing) 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 $3.73/Mcf**, which was the primary driver for the **44% increase in total sales revenue** despite lower production volumes[5](index=5&type=chunk) Production Costs per Mcfe | Cost Category ($/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](index=4&type=section&id=Consolidated%20Statements%20of%20Income) 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](index=7&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) 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](index=9&type=chunk) - The company initiated a treasury stock position, holding **$2.2 million** in repurchased shares as of March 31, 2025[11](index=11&type=chunk) [Consolidated Statement of Cash Flows](index=7&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) 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 **$29.5 million in Q1 2024**[13](index=13&type=chunk) [Reaffirmed 2025E Guidance](index=8&type=section&id=Reaffirmed%202025E%20Guidance) Gulfport reaffirmed its full-year 2025 guidance, which anticipates average daily production of 1,040 to 1,065 MMcfepd with approximately 89% being natural gas Full Year 2025 Guidance | Metric | Low | High | | :--- | :--- | :--- | | **Production** | | | | Average daily gas equivalent (MMcfepd) | 1,040 | 1,065 | | Average daily liquids production (MBbl/day) | 18.0 | 20.5 | | **Operating Costs ($/Mcfe)** | | | | Lease operating expense | $0.19 | $0.22 | | Transportation, gathering, etc. | $0.93 | $0.97 | | **Capital Expenditures (in millions)** | | | | Total base capital expenditures | $370 | $395 | [Derivatives](index=9&type=section&id=Derivatives) This section outlines Gulfport's hedging positions as of April 30, 2025, covering natural gas, oil, and NGLs 2025 Natural Gas Hedging Summary (NYMEX) | Contract Type | Volume (BBtupd) | Weighted Avg. Price ($/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](index=18&type=chunk) - 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](index=18&type=chunk) [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) 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](index=10&type=section&id=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](index=22&type=chunk) - **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](index=23&type=chunk) - **Adjusted Free Cash Flow:** Defined as Adjusted EBITDA plus certain non-cash items, less interest expense, current income taxes, and capital expenditures[24](index=24&type=chunk) [Adjusted Net Income](index=11&type=section&id=Adjusted%20Net%20Income) 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](index=11&type=section&id=Adjusted%20EBITDA) 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](index=12&type=section&id=Adjusted%20Free%20Cash%20Flow) 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](index=12&type=section&id=Recurring%20General%20and%20Administrative%20Expenses) 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** |

Core Viewpoint - The U.S. Energy Department reported a higher-than-expected increase in natural gas supplies, leading to a decline in futures prices despite resilient market conditions driven by limited production growth and strong global demand [1][2]. Natural Gas Market Overview - Natural gas stockpiles in the lower 48 states rose by 9 billion cubic feet (Bcf) for the week ended March 14, exceeding analysts' expectations of a 3 Bcf increase [3]. - Total natural gas stocks reached 1,707 Bcf, which is 624 Bcf (26.8%) below the 2024 level and 190 Bcf (10%) lower than the five-year average [4]. - Daily natural gas consumption fell to 104.3 Bcf from 110.1 Bcf the previous week, primarily due to lower residential and commercial usage caused by warm weather [5]. Price Dynamics - Natural gas prices fell by 3% to $3.98 per MMBtu following the larger-than-expected inventory injection, although prices remain elevated after recently hitting a two-year high of $4.491 [6][7]. - The market is experiencing upward pressure on prices due to a combination of cold weather, supply disruptions, and strong global demand, particularly from Europe and Asia [7][9]. Future Outlook - The EIA projects that U.S. natural gas inventories will end the withdrawal season in March about 4% below the five-year average, which could support prices around $4/MMBtu in the near term [10]. Company Highlights - **Antero Resources (AR)**: A leading natural gas producer with a strong production outlook, reporting 316 billion cubic feet equivalent (Bcfe) in the most recent quarter, over 60% of which was natural gas. The Zacks Consensus Estimate for AR's 2025 earnings per share indicates a remarkable 1,381% year-over-year growth [12][13]. - **Coterra Energy (CTRA)**: An independent upstream operator with a significant presence in the Marcellus Shale, Coterra's expected earnings per share growth rate for the next three to five years is 15.5%, outperforming the industry average of 11.4% [13][14]. - **Gulfport Energy (GPOR)**: Focused on natural gas exploration and production, Gulfport has emerged from bankruptcy with a stronger balance sheet. The Zacks Consensus Estimate for GPOR's 2025 earnings per share indicates a 62.2% year-over-year growth [15][16].

Core Insights - Gulfport Energy (NYSE: GPOR) is projected to generate over $650 million in free cash flow for 2025, based on natural gas strip prices around $4.50 [1] Company Overview - Gulfport Energy is positioned to benefit from favorable natural gas pricing, which may enhance its financial performance significantly in the upcoming year [1] Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and has co-founded a mobile gaming company that was acquired by PENN Entertainment [2] - The focus of the investing group Distressed Value Investing is on value opportunities and distressed plays, particularly in the energy sector [2]

Financial Data and Key Metrics Changes - For Q4 2024, net cash provided by operating activities before changes in working capital totaled approximately $185 million, more than triple the capital expenditures for the quarter [23] - Adjusted EBITDA for the quarter was reported at $203 million, with adjusted free cash flow of $125 million, marking the best quarter of 2024 from a free cash flow perspective [24] - Cash operating costs for Q4 totaled $1.19 per million cubic feet equivalent, better than analyst expectations and within the full year 2024 guidance range [25] Business Line Data and Key Metrics Changes - The company drilled 21 gross wells in 2024, primarily focused in the Utica, and completed 19 gross wells, including three SCOOP wells and twelve Utica dry gas wells [16] - The 2025 development program is expected to maintain flat total production while growing liquids production by 30% year over year [9][13] - The company anticipates total equivalent production to be relatively flat compared to full year 2024, with an increasing production profile as the year progresses [14] Market Data and Key Metrics Changes - The all-in realized price for Q4 was $3.36 per Mcfe, a $0.57 premium to NYMEX Henry Hub index prices, driven by a differentiated hedge position and diverse marketing portfolio [28] - The company has downside protection covering roughly 50% of 2025 natural gas production at an average floor price of $3.62 per MMBtu [29] Company Strategy and Development Direction - The 2025 development program reflects significant efficiency gains and capital allocation optimizations, allowing for a focus on liquids-rich production while maintaining a low decline production base [9][12] - The company plans to return substantially all 2025 adjusted free cash flow, excluding discretionary acreage acquisitions, through common stock repurchases [10][32] - The company is focused on operational improvements and optimizing asset development to maximize free cash flow generation and value for investors [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate significant free cash flow in 2025, potentially more than double compared to 2024, driven by rising natural gas prices and operational efficiencies [31] - The company remains constructive on gas prices in 2025 and 2026, with a strategic hedge position allowing for participation in prices above $4.00 per MMBtu [29] Other Important Information - The company repurchased approximately 7% of its common shares outstanding in 2024, returning 96% of available adjusted free cash flow to shareholders [15] - The proved reserve base increased by approximately 6% when excluding the impact of pricing revisions, reflecting high-quality inventory additions and operational improvements [33][34] Q&A Session Summary Question: Liquids volume sustainability and bolt-on opportunities - Management confirmed that the 30% liquids growth is sustainable and that they have flexibility to allocate towards liquids or gas depending on market conditions [41][43] - The company prefers sizable undeveloped assets for bolt-on opportunities rather than PDP-heavy assets [45][46] Question: Capital efficiency and future capital allocation - Management indicated that front-loaded capital programs are conducive to driving capital efficiencies and that this approach is expected to continue [54] - The company continuously assesses free cash flow allocation options, balancing share repurchases and inventory additions [58][60] Question: Development strategy and inventory allocation - Management clarified that the Marcellus development will be paced responsibly, with a focus on corporate inventory life rather than specific area allocations [72][74] Question: Production cadence and capital efficiency - Management noted that production is expected to increase throughout the year, with a focus on optimizing the timing of well turn-ins [82][84] - Continuous improvement in operational efficiency is anticipated, although future gains may be more moderate compared to past improvements [86] Question: NGL realizations and market conditions - Management highlighted strong NGL realizations due to favorable contracts and market conditions, particularly in Appalachia [97][98]

Financial Data and Key Metrics Changes - In Q4 2024, net cash provided by operating activities before changes in working capital totaled approximately $185 million, more than triple the capital expenditures for the quarter [16] - Adjusted EBITDA for the quarter was $203 million, with adjusted free cash flow of $125 million, driven by robust natural gas pricing and strong liquids production [16][18] - The company repurchased approximately 491,000 shares of common stock for about $80 million during Q4 2024, representing a significant return of capital to shareholders [21] Business Line Data and Key Metrics Changes - The 2025 development program is expected to maintain flat total production while growing liquids production by 30% year over year [6][9] - In 2024, the company drilled 21 gross wells, primarily in the Utica, and completed 19 gross wells, including three SCOOP wells and 12 Utica dry gas wells [10] - The company anticipates that approximately 50% of total production will be liquids-rich in 2025, with liquids production expected to increase to between 18,000 and 20,500 barrels per day [9] Market Data and Key Metrics Changes - The all-in realized price for Q4 2024 was $3.36 per Mcfe, a 0.57 premium to NYMEX Henry Hub index prices [18] - The company has downside protection covering roughly 50% of 2025 natural gas production at an average floor price of $3.62 per MMBtu [19] - The liquidity as of December 31, 2024, totaled $900 million, providing sufficient funds for future development needs [21] Company Strategy and Development Direction - The company is focused on enhancing hydrocarbon diversification by targeting lean condensate in the Utica and low-cost Marcellus condensate windows [7] - The 2025 capital expenditure is projected to be flat, in the range of $370 million to $395 million, with a focus on operational efficiencies and cost reductions [8] - The company plans to return substantially all 2025 adjusted free cash flow to shareholders through common stock repurchases, excluding discretionary acreage acquisitions [7][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the natural gas pricing environment in 2025 and 2026, indicating a belief in improving macro conditions [20] - The company expects 2025 to be a transformative year for cash flow generation, with adjusted free cash flow potentially more than doubling compared to 2024 [21][24] - Management highlighted the importance of continuous operational improvements and optimizing asset development to maximize free cash flow generation [15][24] Other Important Information - The company achieved a 20% reduction in annual operated drilling and completion capital on a per foot basis compared to 2024, driven by operational efficiencies and service cost improvements [8] - The proved reserve base increased by approximately 6% when excluding the impact of pricing revisions, reflecting successful leasing efforts and operational efficiencies [22][23] Q&A Session Summary Question: Can you discuss the sustainability of the liquids growth and its impact on potential acquisitions? - Management confirmed that the 30% liquids growth is sustainable and highlighted the flexibility to allocate resources between gas and liquids as needed [27][28][30] Question: How does the front-loaded CapEx program affect capital efficiencies? - Management indicated that a front-loaded capital program is conducive to driving capital efficiencies and maximizing cash flows throughout the year [36][37] Question: What is the outlook for future capital allocation given the potential for significant free cash flow? - Management stated that the framework for capital allocation has been effective, focusing on share repurchases and inventory additions while continuously assessing opportunities [38][40] Question: How does the Lake Seven pad inform future Utica development? - Management noted that the results from the Lake Seven pad will influence future development strategies, allowing for adjustments in production rates based on observed performance [44][45] Question: Can you clarify the cadence of capital allocation across different operational areas? - Management explained that capital allocation varies by area and emphasized the importance of developing assets responsibly while maintaining a corporate inventory perspective [48][50]

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 September 30, 2020 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 I ...

Part I Financial Information [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Presents Gulfport Energy Corporation's unaudited consolidated financial statements, including balance sheets, income, and cash flows, highlighting asset growth and net income [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $6.47 billion, driven by property and equipment, while liabilities and equity also rose Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Current Assets** | $343,491 | $316,953 | | **Property and equipment, net** | $5,724,111 | $5,479,405 | | **Total Assets** | **$6,465,470** | **$6,051,036** | | **Total Current Liabilities** | $533,459 | $539,432 | | **Long-term debt, net** | $2,198,678 | $2,086,765 | | **Total Liabilities** | **$2,858,062** | **$2,723,268** | | **Total Stockholders' Equity** | **$3,607,408** | **$3,327,768** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Net income for the six months ended June 30, 2019, significantly increased to $297.2 million, driven by derivative gains and tax benefits Six Months Ended June 30, (in thousands, except per share data) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | **Total Revenues** | $779,572 | $578,132 | | Net gain (loss) on derivatives | $151,095 | $(87,074) | | **Income from Operations** | $308,428 | $124,109 | | **Net Income** | **$297,198** | **$201,409** | | **Diluted EPS** | **$1.84** | **$1.13** | Three Months Ended June 30, (in thousands, except per share data) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | **Total Revenues** | $458,994 | $252,740 | | Net gain (loss) on derivatives | $171,140 | $(70,545) | | **Income from Operations** | $216,918 | $13,791 | | **Net Income** | **$234,956** | **$111,319** | | **Diluted EPS** | **$1.47** | **$0.64** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $309.0 million, while investing activities used more cash and financing activities provided cash Cash Flow Summary for Six Months Ended June 30, (in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $308,989 | $411,044 | | **Net cash used in investing activities** | $(419,445) | $(360,465) | | **Net cash provided by (used in) financing activities** | $78,936 | $(30,906) | | **Net (decrease) increase in cash** | $(31,520) | $19,673 | | **Cash at end of period** | $20,777 | $119,230 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed disclosures on accounting policies, including property, debt, derivatives, and income tax, along with subsequent events [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Conditions%20and%20Results%20of%20Operations) Management discusses financial performance, production, and liquidity, highlighting increased net income, disciplined capital allocation, and a $565-$600 million capital expenditure plan - The company's strategy involves internal prospect identification, land acquisition, and evaluation, primarily in the **Utica Shale (Ohio)** and **SCOOP plays (Oklahoma)**[148](index=148&type=chunk) - Responding to declining natural gas prices, the company is shifting to disciplined capital allocation and operating within cash flow for 2019, reducing planned capital expenditures by approximately **29%** compared to 2018[208](index=208&type=chunk) 2019 Capital Expenditure Budget (in millions) | Category | Estimated 2019 Capex | | :--- | :--- | | Drilling & Completion | $525.0 - $550.0 | | Non-Drilling & Completion | $40.0 - $50.0 | | **Total** | **$565.0 - $600.0** | [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Q2 2019 net income increased to $235.0 million, driven by derivative gains and tax benefits, despite an impairment loss on Mammoth Energy investment - The **$123.7 million** increase in net income for Q2 2019 was primarily due to a **$206.3 million** increase in oil and natural gas revenues (driven by derivatives) and a **$179.3 million** income tax benefit[164](index=164&type=chunk) - The company recorded a **$125.4 million** impairment loss on its investment in Mammoth Energy for the six months ended June 30, 2019[164](index=164&type=chunk)[175](index=175&type=chunk) Production and Pricing Comparison (Three Months Ended June 30) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | **Total Production (MMcfe)** | 123,668 | 121,061 | | **Avg. Natural Gas Price ($/Mcf)** | $2.20 | $2.32 | | **Avg. Oil Price ($/Bbl)** | $57.42 | $55.29 | | **Total Production Costs ($/Mcfe)** | $0.83 | $0.84 | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) Primary funding sources include cash flow from operations, a $1.4 billion revolving credit facility, and $2.0 billion in senior notes, with a new $400 million stock repurchase program - Net cash provided by operating activities decreased by **$102.0 million** to **$309.0 million** for the first six months of 2019, primarily due to lower cash receipts from oil and gas sales[188](index=188&type=chunk) - As of June 30, 2019, the company had **$155.0 million** outstanding on its revolving credit facility and **$593.5 million** available for borrowing[192](index=192&type=chunk) - In January 2019, the board approved a new stock repurchase program to acquire up to **$400 million** of common stock over 24 months, with approximately **$30.0 million** repurchased as of July 26, 2019[151](index=151&type=chunk)[210](index=210&type=chunk) - Subsequent to quarter end, in July 2019, the company repurchased **$104.4 million** in aggregate principal of its outstanding senior notes for **$80.3 million**[142](index=142&type=chunk)[151](index=151&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages commodity price volatility through derivatives, with a 10% price change impacting fair value by $99.7-$99.8 million, and faces interest rate risk on its revolving credit facility - The company's main market risk is the volatility of oil and natural gas prices, mitigated through derivative contracts[224](index=224&type=chunk) Open Natural Gas Fixed Price Swaps as of June 30, 2019 | Period | Location | Daily Volume (MMBtu/day) | Weighted Average Price | | :--- | :--- | :--- | :--- | | Remaining 2019 | NYMEX Henry Hub | 1,380,000 | $2.81 | | 2020 | NYMEX Henry Hub | 204,000 | $2.77 | Open Oil Fixed Price Swaps as of June 30, 2019 | Period | Location | Daily Volume (Bbls/day) | Weighted Average Price | | :--- | :--- | :--- | :--- | | Remaining 2019 | NYMEX WTI | 6,000 | $60.81 | | 2020 | NYMEX WTI | 6,000 | $59.82 | - The company is exposed to interest rate risk on its revolving credit facility, with **$155.0 million** outstanding at a weighted average rate of **3.93%** as of June 30, 2019[229](index=229&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2019[231](index=231&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[232](index=232&type=chunk) Part II Other Information [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) Gulfport is involved in legal and regulatory proceedings, including coastal management violations, an SEC investigation into former management, and EPA Clean Air Act allegations - The company is a defendant in two complaints filed by the State of Louisiana alleging violations of the State and Local Coastal Resources Management Act[235](index=235&type=chunk) - The SEC has an ongoing investigation into actions by former management, including alleged improper personal use of company assets and potential Sarbanes-Oxley Act violations[237](index=237&type=chunk) - The company received several Findings of Violation from the USEPA alleging Clean Air Act violations in Ohio, potentially resulting in monetary sanctions over **$100,000**[240](index=240&type=chunk)[241](index=241&type=chunk) [Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) No new material risk factors are reported for the quarter, referring to disclosures in the 2018 Form 10-K - No new risk factors are reported; the company refers to those disclosed in its **2018 Form 10-K**[243](index=243&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred; 296,587 shares were repurchased at $7.65 per share under a new $400 million program Issuer Repurchases of Equity Securities (Q2 2019) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2019 | 296,587 | $7.65 | | May 2019 | — | $— | | June 2019 | — | $— | | **Total** | **296,587** | **$7.65** | - In January 2019, the board approved a new stock repurchase program to acquire up to **$400 million** of common stock within a 24-month period[245](index=245&type=chunk) [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) Key corporate governance updates include stockholder approval of a new stock incentive plan, new indemnification agreements, and new employment agreements for executives - Stockholders approved the **2019 Amended and Restated Stock Incentive Plan**, increasing the share reserve by **5,000,000 shares** and extending the plan's expiration to **2029**[251](index=251&type=chunk) - On August 1, 2019, the company entered into new indemnification agreements with its directors and key executives[252](index=252&type=chunk) - Effective August 1, 2019, new employment agreements were established for the CEO, COO, and General Counsel with initial terms extending through **December 31, 2023**[253](index=253&type=chunk)[254](index=254&type=chunk) [Exhibits](index=65&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including corporate governance documents, senior note indentures, incentive plans, and executive employment agreements - Filed exhibits include the **2019 Amended and Restated Stock Incentive Plan**, a form of Indemnification Agreement, and new Employment Agreements for **David M. Wood (CEO)**, **Donnie Moore (COO)**, and **Patrick K. Craine (General Counsel)**[259](index=259&type=chunk)[260](index=260&type=chunk)

Table of Contents Index to Financial Statements UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ý ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-19514 Gulfport Energy Corporation (Exact Name of Registrant As Specified in Its Charter) Delaware 73- ...