Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of approximately $212 million during the quarter, with adjusted free cash flow of $64.6 million, reflecting over 70% growth quarter over quarter [15][16] - Net cash provided by operating activities before changes in working capital totaled approximately $198 million, more than funding capital expenditures and common share repurchases while maintaining balance sheet strength [15][16] - The trailing twelve-month net leverage as of June 30 was approximately 0.85 times, down from the prior quarter, benefiting from increasing EBITDA [17][18] Business Line Data and Key Metrics Changes - Average daily production totaled 1,006 million cubic feet equivalent per day, an increase of 8% over the previous year, despite midstream outages impacting production [9][10] - The company executed across all five development areas, with strong well performance noted, particularly in the Utica condensate pad in Southwest Harrison County, which delivered approximately 65% more cumulative oil than Gulfport's lake pad [10][11] Market Data and Key Metrics Changes - The all-in realized price for the second quarter was $3.61 per Mcfe, which is $0.17 above the NYMEX Henry Hub index price, highlighting the benefits of Gulfport's differentiated hedge position [16] - Rising natural gas demand is driven by LNG expansion and increased power generation needs, presenting opportunities for Gulfport and its peers [17] Company Strategy and Development Direction - The company plans to allocate up to $100 million toward discretionary acreage acquisitions to secure future drilling opportunities in the Utica Shale [6][8] - The share repurchase program authorization has been increased by 50% from $1 billion to $1.5 billion, with $65 million of common shares purchased during the quarter [7][21] - The company is committed to maintaining a strong balance sheet while pursuing strategic initiatives that enhance long-term shareholder value [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial position and operational performance, emphasizing a focus on efficiency and shareholder returns [13][22] - The company anticipates a strong natural gas commodity environment in late 2025 and 2026, which should support cash flow growth [19][20] Other Important Information - The company has invested approximately $17 million on maintenance leasehold and land investment through June 30, 2025, with plans to allocate $75 million to $100 million in total during 2025 and early 2026 [12] - The redemption of all outstanding preferred stock is expected to simplify the capital structure and potentially accelerate share repurchase efforts [19][21] Q&A Session Summary Question: Can you elaborate on the leasehold spend and its geographical focus? - The company is targeting 40 to 50 wells in Belmont County, Ohio, and Northern Monroe County, focusing on low breakeven high-quality acreage [24][25] Question: What are the mechanics of the preferred stock redemption? - The company issued a notice for preferred stockholders to decide on conversion or repurchase by September 5, with plans to use liquidity for the redemption [28][30] Question: How will the company allocate free cash flow post-redemption? - The company aims for a leverage target of around one times and will continue to evaluate opportunities for shareholder returns and reinvestment in high-quality locations [35][36] Question: What is the competitive return outlook for the condensate area? - The condensate area remains strong with above 70% IRR, and the company will continue to monitor commodity prices for future activity [41][42] Question: How does the company view participation in power contracting? - The company is likely to participate in power contracting through intermediaries, expecting rising in-basin prices due to increased demand [56][58] Question: What is the production outlook considering midstream constraints? - Most midstream issues have been mitigated, and production is expected to return to normal rates as ongoing projects are completed [84][86] Question: Will there be any impact on share repurchases due to preferred stock redemption? - The company can still execute share repurchases while managing cash flow for the preferred stock redemption, with flexibility in its approach [90][92] Question: Can you discuss the potential for ongoing discretionary acreage acquisitions? - The company has successfully identified opportunities for acquisitions in the Utica and is optimistic about continuing this strategy in the coming years [94][96]