false 0000874499 0000874499 2024-02-27 2024-02-27 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): February 27, 2024

 

GULFPORT ENERGY CORPORATION

(Exact Name of Registrant as Specified in Charter)

 

Delaware   001-19514   86-3684669
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (I.R.S. Employer
Identification Number)

 

713 Market Drive

Oklahoma City, Oklahoma

  73114
(Address of principal executive offices)   (Zip code)

 

(405) 252-4600

(Registrant’s telephone number, including area code)

 

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol   Name of each exchange on which registered
Common stock, par value $0.0001 per share   GPOR   The New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On February 27, 2024, Gulfport Energy Corporation (“Gulfport”) issued a press release reporting its financial and operating results for the three months and full year ended December 31, 2023, and provided its 2024 operational and financial guidance. A copy of the press release and supplemental financial information are attached as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K.

 

Item 7.01. Regulation FD Disclosure.

 

Also on February 27, 2024, Gulfport posted an updated investor presentation on its website. The presentation may be found on Gulfport’s website at http://www.gulfportenergy.com by selecting “Investors,” “Company Information” and then “Presentations.”

 

The information in the press release and updated investor presentation is being furnished, not filed, pursuant to Item 2.02 and Item 7.01. Accordingly, the information in the press release and updated investor presentation will not be incorporated by reference into any registration statement filed by Gulfport under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

 

Item 9.01. Financial Statements and Exhibits

 

(d) Exhibits

 

Number   Exhibit
99.1   Press release dated February 27, 2024 entitled “Gulfport Energy Reports Fourth Quarter and Full Year 2023 Financial and Operating Results and Provides 2024 Operational and Financial Guidance.”
99.2   Supplemental Financial Information.
104   Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

 

1

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  GULFPORT ENERGY CORPORATION
   
Date: February 27, 2024 By: /s/ Michael Hodges
    Michael Hodges
    Chief Financial Officer

 

 

2

 

 

Exhibit 99.1

 

 
Gulfport Energy Reports Fourth Quarter and Full Year 2023 Financial and Operating Results and Provides 2024 Operational and Financial Guidance

 

OKLAHOMA CITY (February 27, 2024) Gulfport Energy Corporation (NYSE: GPOR) (“Gulfport” or the “Company”) today reported financial and operating results for the three and twelve months ended December 31, 2023 and provided its 2024 outlook.

 

Fourth Quarter 2023

 

Delivered total net production of 1,063.3 MMcfe per day, above analyst consensus expectations

 

Reported $245.7 million of net income and $190.8 million of adjusted EBITDA(1), above analyst consensus expectations

 

Generated $155.5 million of net cash provided by operating activities and $85.4 million of adjusted free cash flow(1), excluding discretionary acreage acquisitions

 

Incurred capital expenditures, excluding discretionary acreage acquisitions, of $82.9 million

 

Utilized adjusted free cash flow(1) for discretionary acreage acquisitions totaling $23.1 million

 

Repurchased 490 thousand shares of common stock for approximately $66.0 million

 

Full Year 2023 Highlights and Recent Highlights

 

Delivered total net production of 1,054.3 MMcfe per day, at the high end of the Company’s increased guidance range

 

Reported $1.5 billion of net income and $725.0 million of adjusted EBITDA(1), above analyst consensus expectations

 

Generated $723.2 million of net cash provided by operating activities and $198.9 million of adjusted free cash flow(1), excluding discretionary acreage acquisitions

 

Incurred capital expenditures, excluding discretionary acreage acquisitions, of $443.4 million

 

Maintained a strong balance sheet and low financial leverage, with liquidity at December 31, 2023 totaling $720.1 million

 

Expanded common stock repurchase authorization in February 2023 and October 2023, to a total of $650 million with approximately $236 million(2) remaining

 

Returned substantially all full year adjusted free cash flow(1), excluding discretionary acreage acquisitions, to shareholders by repurchasing 1.5 million shares of common stock for approximately $148.9 million

 

 

 

 

Allocated $48.0 million toward discretionary acreage acquisitions, expanding high-quality resource base and adding over 1.5 years of inventory at current development pace

 

Developed first Marcellus two-well pad in Belmont County, Ohio with promising initial results, delineating approximately 50 to 60 locations, representing multiple years of additional liquids-rich drilling inventory

 

Achieved significant operational efficiencies, with average drilling footage per day and completion hours pumped per day improving by 60% and 30% year-over-year, respectively

 

Full Year 2024 Outlook

 

Expect to deliver relatively flat year-over-year net production with a range of 1,045 MMcfe to 1,080 MMcfe per day

 

Plan to invest total base capital expenditures of $380 million to $420 million, including $50 million to $60 million on maintenance leasehold and land investment, a decrease of approximately 10%(3) compared to full year 2023 and focused on more liquids-rich development in the Utica and SCOOP

 

Forecast delivering a significantly more capital efficient program associated with longer laterals and continued cycle time improvements; plan to deliver similar net completed lateral footage compared to 2023 while turning to sales 20% fewer gross wells

 

Plan to continue to allocate substantially all adjusted free cash flow(1), excluding acquisitions, toward common share repurchases

 

“Gulfport’s 2023 results delivered on all fronts, highlighted by our quality resource base and the continued improvement of development efficiencies throughout the year. The Company delivered net production at the high end of the updated guidance range, and well above our initial guidance provided in February 2023. This was accomplished while staying within our initial capital budget range, despite the incremental activity accelerated during the fourth quarter of 2023, as previously disclosed. The company augmented our attractive acreage portfolio by strategically acquiring liquids-rich Utica acreage that extended our inventory base by ~1.5 years and by delineating ~2 years of liquids rich Marcellus locations overlying our Utica acreage at no incremental land cost. This additional inventory provides fundamental value to the company as well as expanded optionality to our go-forward development plans. The 2023 development program led to meaningful adjusted free cash flow generation, and after adjusting for cash flow utilized for attractive discretionary acreage acquisitions, we allocated approximately 99% of our adjusted free cash flow to repurchasing our common stock during 2023. All of this was achieved while maintaining our strong balance sheet, ample liquidity and financial leverage below one times,” commented John Reinhart, CEO of Gulfport.

 

“As we move into 2024, the current natural gas pricing environment is challenged and reinforces the importance of developing our assets in an efficient and sustainable manner. Building on the momentum from 2023, we plan to remain focused on further optimizing our development programs cycle times and operating costs, and we laid out a program today expected to deliver similar production year over year on 10% less capital invested. Furthermore, our development program will focus on more liquids-rich development in both the Utica and SCOOP, ultimately improving margins and supporting our robust expected adjusted free cash flow generation, despite today’s challenging commodity backdrop. We plan to continue the return of capital to our shareholders and, excluding acquisitions, expect to allocate substantially all our full year 2024 adjusted free cash flow towards common stock repurchases.”

 

2

 

 

A company presentation to accompany the Gulfport earnings conference call can be accessed by clicking here.

 

1.A non-GAAP financial measure. Reconciliations of these non-GAAP measures and other disclosures are provided with the supplemental financial tables available on our website at www.gulfportenergy.com.

 

2.As of February 26, 2024.

 

3.Assumes midpoint of 2024 guidance.

 

Operational Update

 

The table below summarizes Gulfport’s operated drilling and completion activity for the full year of 2023:

 

   Year Ended December 31, 2023 
   Gross   Net   Lateral Length 
Spud            
Utica & Marcellus   20    17.9    17,100 
SCOOP   5    3.2    11,800 
                
Drilled               
Utica & Marcellus   22    20.2    15,400 
SCOOP   2    1.7    8,600 
                
Completed               
Utica & Marcellus   22    20.2    14,000 
SCOOP   2    1.7    8,600 
                
Turned-to-Sales               
Utica & Marcellus   22    20.2    14,000 
SCOOP   2    1.7    8,600 

 

3

 

 

Gulfport’s net daily production for the full year of 2023 averaged 1,054.3 MMcfe per day, primarily consisting of 783.8 MMcfe per day in the Utica and Marcellus and 270.4 MMcfe per day in the SCOOP. For the full year of 2023, Gulfport’s net daily production mix was comprised of approximately 91% natural gas, 7% natural gas liquids (“NGL”) and 2% oil and condensate.

 

   Three Months
Ended
December 31,
2023
   Three Months
Ended
December 31,
2022
   Year Ended
December 31,
2023
   Year Ended
December 31,
2022
 
Production                
Natural gas (Mcf/day)   976,820    934,763    959,743    883,195 
Oil and condensate (Bbl/day)   3,498    4,959    3,733    4,412 
NGL (Bbl/day)   10,923    14,520    12,018    12,281 
Total (Mcfe/day)   1,063,341    1,051,637    1,054,251    983,354 
Average Prices                    
Natural gas:                    
Average price without the impact of derivatives ($/Mcf)  $2.37   $5.45   $2.37   $6.20 
Impact from settled derivatives ($/Mcf)  $0.54   $(2.88)  $0.42   $(3.11)
Average price, including settled derivatives ($/Mcf)  $2.91   $2.57   $2.79   $3.09 
Oil and condensate:                    
Average price without the impact of derivatives ($/Bbl)  $73.47   $79.27   $73.27   $91.58 
Impact from settled derivatives ($/Bbl)  $(3.32)  $(16.89)  $(2.53)  $(24.32)
Average price, including settled derivatives ($/Bbl)  $70.15   $62.38   $70.74   $67.26 
NGL:                    
Average price without the impact of derivatives ($/Bbl)  $26.65   $30.85   $27.29   $41.26 
Impact from settled derivatives ($/Bbl)  $2.72   $0.92   $2.07   $(2.80)
Average price, including settled derivatives ($/Bbl)  $29.37   $31.77   $29.36   $38.46 
Total:                    
Average price without the impact of derivatives ($/Mcfe)  $2.69   $5.64   $2.73   $6.49 
Impact from settled derivatives ($/Mcfe)  $0.51   $(2.63)  $0.40   $(2.94)
Average price, including settled derivatives ($/Mcfe)  $3.20   $3.01   $3.13   $3.55 
Selected operating metrics                    
Lease operating expenses ($/Mcfe)  $0.17   $0.18   $0.18   $0.18 
Taxes other than income ($/Mcfe)  $0.08   $0.15   $0.09   $0.17 
Transportation, gathering, processing and compression expense  ($/Mcfe)  $0.91   $0.99   $0.91   $1.00 
Recurring cash general and administrative expenses ($/Mcfe) (non-GAAP)  $0.15   $0.13   $0.12   $0.12 
Interest expenses ($/Mcfe)  $0.16   $0.17   $0.15   $0.17 

 

4

 

 

Capital Investment

 

Capital investment was $443.4 million (on an incurred basis) for the full year of 2023, of which $388.6 million related to drilling and completion (“D&C”) activity and $54.8 million related to maintenance leasehold and land investment. In addition, Gulfport invested approximately $48.0 million in discretionary acreage acquisitions.

 

Common Stock Repurchase Program

 

Gulfport repurchased approximately 490 thousand shares of common stock during the fourth quarter for approximately $66.0 million. As of February 26, 2024, the Company had repurchased approximately 4.5 million shares of common stock at a weighted average price of $92.41 per share since the program initiated in March 2022, totaling approximately $413.6 million in aggregate. The Company currently has approximately $236.4 million of remaining capacity under the share repurchase program.

 

Financial Position and Liquidity

 

As of December 31, 2023, Gulfport had approximately $1.9 million of cash and cash equivalents, $118.0 million of borrowings under its revolving credit facility, $63.8 million of letters of credit outstanding and $550 million of outstanding 2026 senior notes.

 

Gulfport’s liquidity at December 31, 2023, totaled approximately $720.1 million, comprised of the $1.9 million of cash and cash equivalents and approximately $718.2 million of available borrowing capacity under its revolving credit facility.

 

During 2023, the Company paid $4.8 million of cash dividends to holders of its preferred stock.

 

2024 Guidance

 

Gulfport released operational guidance and outlook for the full year 2024, including full year expense estimates and projections for production and capital expenditures. Gulfport’s 2024 guidance assumes commodity strip prices as of February 13, 2024, adjusted for applicable commodity and location differentials, and no property acquisitions or divestitures.

 

5

 

 

   Year Ending 
   December 31, 2024 
   Low   High 
Production        
Average daily gas equivalent (MMcfe/day)   1,045    1,080 
% Gas   ~92% 
           
Realizations (before hedges)          
Natural gas (differential to NYMEX settled price) ($/Mcf)  $(0.20)  $(0.35)
NGL (% of WTI)   35%   40%
Oil (differential to NYMEX WTI) ($/Bbl)  $(4.75)  $(5.75)
           
Expenses          
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   $0.94 
Recurring cash general and administrative(1,2)  ($/Mcfe)  $0.11   $0.13 

 

   Total 
Capital expenditures (incurred)  (in millions) 
D&C  $330   $360 
Maintenance leasehold and land  $50   $60 
Total base capital expenditures  $380   $420 

 

(1)Recurring cash G&A includes capitalization. It excludes non-cash stock compensation and expenses related to the continued administration of our prior Chapter 11 filing.
(2)This is a non-GAAP measure. Reconciliations of these non-GAAP measures and other disclosures are provided with the supplemental financial tables available on our website at www.gulfportenergy.com.

 

Derivatives

 

Gulfport enters into commodity derivative contracts on a portion of its expected future production volumes to mitigate the Company’s exposure to commodity price fluctuations. For details, please refer to the “Derivatives” section provided with the supplemental financial tables available on our website at ir.gulfportenergy.com.

 

6

 

 

Estimated Proved Reserves

 

Gulfport reported year end 2023 total proved reserves of 4.2 Tcfe, consisting of 3.7 Tcf of natural gas, 18.6 MMBbls of oil and 62.8 MMBbls of natural gas liquids. Gulfport’s year end 2023 total proved reserves increased approximately 4% when compared to its 2022 total proved reserves.

 

The table below provides information regarding the components driving the 2023 net proved reserve adjustments:

 

   Total (Bcfe) 
Proved Reserves, December 31, 2022   4,048 
Extensions and discoveries   996 
Revisions of prior reserve estimates   (445)
Current production   (385)
Proved Reserves, December 31, 2023   4,214 

 

Proved developed reserves totaled approximately 2,203 Bcfe as of December 31, 2023 or approximately 52% of Gulfport’s proved reserves. Proved undeveloped reserves totaled approximately 2,011 Bcfe as of December 31, 2023.

 

The table below summarizes the Company’s 2023 net proved reserves:

 

   December 31, 2023 
  

Oil
(MMBbl)

  

Natural Gas
(Bcf)

  

NGL
(MMBbl)

  

Total
(Bcfe)

 
Utica & Marcellus                
Proved developed(1)   2    1,520    7    1,576 
Proved undeveloped(1)   10    1,421    17    1,585 
Total proved(1)   13    2,941    24    3,160 
                     
SCOOP                    
Proved developed   4    459    24    627 
Proved undeveloped   2    325    15    426 
Total proved   6    785    39    1,053 
                     
Total                    
Proved developed   6    1,980    31    2,203 
Proved undeveloped   12    1,746    32    2,011 
Total proved   19    3,725    63    4,214 

 

Totals may not sum or recalculate due to rounding.

 

 

 

(1)Includes approximately 17 Bcfe and 108 Bcfe of net developed and undeveloped reserves, respectively, located in the Marcellus target formation.

 

7

 

 

The following table reconciles the standardized measure of future net cash flows to the PV-10 value of Gulfport’s proved reserves:

 

   Proved
Developed
   Proved
Undeveloped
   Total
Proved
 
   ($ in millions) 
Estimated future net revenue(1)  $2,535   $2,235   $4,769 
Present value of estimated future net revenue (PV-10)(1)  $1,590   $819   $2,409 
Standardized measure(1)            $2,383 

 

Totals may not sum due to rounding.

 

 

 

(1)Estimated future net revenue represents the estimated future revenue to be generated from the production of proved reserves, net of estimated production and future development costs, using prices and costs under existing economic conditions as of December 31, 2023, and assuming commodity prices as set forth below. For the purpose of determining prices used in our reserve reports, we used the unweighted arithmetic average of the prices on the first day of each month within the 12-month period ended December 31, 2023. The prices used in our PV-10 measure were the average West Texas Intermediate Spot price of $78.21 per barrel and the average Henry Hub Spot price of $2.64 per MMBtu, before basis differential adjustments. These prices should not be interpreted as a prediction of future prices, nor do they reflect the value of our commodity derivative instruments in place as of December 31, 2023. The amounts shown do not give effect to non-property-related expenses, such as corporate general and administrative expenses and debt service, or to depreciation, depletion and amortization. The present value of estimated future net revenue typically differs from the standardized measure because the former does not include the effects of estimated future income tax expense of $26 million as of December 31, 2023.

 

Management uses PV-10, which is calculated without deducting estimated future income tax expenses, as a measure of the value of the Company’s current proved reserves and to compare relative values among peer companies. We also understand that securities analysts and rating agencies use this measure in similar ways. While estimated future net revenue and the present value thereof are based on prices, costs and discount factors which may be consistent from company to company, the standardized measure of discounted future net cash flows is dependent on the unique tax situation of each individual company. PV-10 should not be considered in isolation or as a substitute for the standardized measure of discounted future net cash flows or any other measure of a company’s financial or operating performance presented in accordance with GAAP.

 

A reconciliation of the standardized measure of discounted future net cash flows to PV-10 is presented above. Neither PV-10 nor the standardized measure of discounted future net cash flows purport to represent the fair value of our proved oil and gas reserves.

 

8

 

 

Fourth Quarter and Full Year 2023 Conference Call

 

Gulfport will host a teleconference and webcast to discuss its fourth quarter and full year 2023 results, as well as its 2024 outlook, beginning at 9:00 a.m. ET (8:00 a.m. CT) on Wednesday, February 28, 2024.

 

The conference call can be heard live through a link on the Gulfport website, www.gulfportenergy.com. In addition, you may participate in the conference call by dialing 888-428-7458 domestically or 862-298-0702 internationally. A replay of the conference call will be available on the Gulfport website and a telephone audio replay will be available from February 28, 2024 to March 13, 2024, by calling 877-660-6853 domestically or 201-612-7415 internationally and then entering the replay passcode 13744254. 

 

Financial Statements and Guidance Documents

 

Fourth quarter and full year 2023 earnings results and supplemental information regarding quarterly data such as production volumes, pricing, financial statements, and non-GAAP reconciliations are available on our website at ir.gulfportenergy.com.

 

Non-GAAP Disclosures

 

This news release includes non-GAAP financial measures. Such non-GAAP measures should be not considered as an alternative to GAAP measures. Reconciliations of these non-GAAP measures and other disclosures are provided with the supplemental financial tables available on our website at ir.gulfportenergy.com.

 

About Gulfport

 

Gulfport is an independent natural gas-weighted exploration and production company focused on the exploration, acquisition and production of natural gas, crude oil and NGL in the United States with primary focus in the Appalachia and Anadarko basins. Our principal properties are located in eastern Ohio targeting the Utica and Marcellus formations and in central Oklahoma targeting the SCOOP Woodford and SCOOP Springer formations.

 

Forward Looking Statements

 

This press release includes “forward-looking statements” for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements other than statements of historical fact. They include statements regarding Gulfport’s current expectations, management’s outlook guidance or forecasts of future events, projected cash flow and liquidity, inflation, share repurchases and other return of capital plans, its ability to enhance cash flow and financial flexibility, future production and commodity mix, plans and objectives for future operations, the ability of our employees, portfolio strength and operational leadership to create long-term value and the assumptions on which such statements are based. Gulfport believes the expectations and forecasts reflected in the forward-looking statements are reasonable, Gulfport can give no assurance they will prove to have been correct. They can be affected by inaccurate or changed assumptions or by known or unknown risks and uncertainties. Important risks, assumptions and other important factors that could cause future results to differ materially from those expressed in the forward-looking statements are described under “Risk Factors” in Item 1A of Gulfport’s annual report on Form 10-K for the year ended December 31, 2023 and any updates to those factors set forth in Gulfport’s subsequent quarterly reports on Form 10-Q or current reports on Form 8-K (available at https://www.gulfportenergy.com/investors/sec-filings). Gulfport undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

 

Investors should note that Gulfport announces financial information in SEC filings, press releases and public conference calls. Gulfport may use the Investors section of its website (www.gulfportenergy.com) to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on Gulfport’s website is not part of this filing.

 

Investor Contact:

 

Jessica Antle – Vice President, Investor Relations

jantle@gulfportenergy.com

405-252-4550

 

 

9

 

 

 

Exhibit 99.2

 

Year ended December 31, 2023

Supplemental Information of Gulfport Energy

  

Table of Contents:   Page:
Production Volumes by Asset Area   2
Production and Pricing   4
Consolidated Statements of Income   6
Consolidated Balance Sheets   8
Consolidated Statement of Cash Flows   10
2024E Guidance   12
Derivatives   13
Non-GAAP Reconciliations   14
Definitions   15
Adjusted Net Income   16
Adjusted EBITDA   18
Adjusted Free Cash Flow   20
Recurring General and Administrative Expenses   22

 

 

 

 

 

Production Volumes by Asset Area : Quarter ended, December 31, 2023

Production Volumes

 

   Three Months
Ended
December 31,
2023
   Three Months
Ended
December 31,
2022
 
Natural gas (Mcf/day)        
Utica & Marcellus   795,776    702,041 
SCOOP   181,044    232,722 
Total   976,820    934,763 
Oil and condensate (Bbl/day)          
Utica & Marcellus   1,116    612 
SCOOP   2,382    4,347 
Total   3,498    4,959 
NGL (Bbl/day)          
Utica & Marcellus   1,991    2,937 
SCOOP   8,932    11,584 
Total   10,923    14,520 
Combined (Mcfe/day)          
Utica & Marcellus   814,415    723,334 
SCOOP   248,926    328,303 
Total   1,063,341    1,051,637 

 

Totals may not sum or recalculate due to rounding. 

 

Page 2

 

 

 

Production Volumes by Asset Area : Year ended, December 31, 2023

Production Volumes

 

   Year Ended
December 31,
2023
   Year Ended
December 31,
2022
 
Natural gas (Mcf/day)        
Utica & Marcellus   765,556    674,314 
SCOOP   194,187    208,881 
Total   959,743    883,195 
Oil and condensate (Bbl/day)          
Utica & Marcellus   698    670 
SCOOP   3,035    3,743 
Total   3,733    4,412 
NGL (Bbl/day)          
Utica & Marcellus   2,346    2,424 
SCOOP   9,672    9,857 
Total   12,018    12,281 
Combined (Mcfe/day)          
Utica & Marcellus   783,822    692,877 
SCOOP   270,429    290,477 
Total   1,054,251    983,354 

 

Totals may not sum or recalculate due to rounding.

 

Page 3

 

 

 

Production and Pricing : Quarter ended, December 31, 2023

 

The following table summarizes production and related pricing for the quarter ended December 31, 2023, as compared to such data for the quarter ended December 31, 2022:

 

   Three Months
Ended
December 31,
2023
   Three Months
Ended
December 31,
2022
 
Natural gas sales        
Natural gas production volumes (MMcf)   89,867    85,998 
Natural gas production volumes (MMcf) per day   977    935 
Total sales  $212,631   $468,554 
Average price without the impact of derivatives ($/Mcf)  $2.37   $5.45 
Impact from settled derivatives ($/Mcf)  $0.54   $(2.88)
Average price, including settled derivatives ($/Mcf)  $2.91   $2.57 
           
Oil and condensate sales          
Oil and condensate production volumes (MBbl)   322    456 
Oil and condensate production volumes (MBbl) per day   3    5 
Total sales  $23,642   $36,146 
Average price without the impact of derivatives ($/Bbl)  $73.47   $79.27 
Impact from settled derivatives ($/Bbl)  $(3.32)  $(16.89)
Average price, including settled derivatives ($/Bbl)  $70.15   $62.38 
           
NGL sales          
NGL production volumes (MBbl)   1,005    1,336 
NGL production volumes (MBbl) per day   11    15 
Total sales  $26,782   $41,222 
Average price without the impact of derivatives ($/Bbl)  $26.65   $30.85 
Impact from settled derivatives ($/Bbl)  $2.72   $0.92 
Average price, including settled derivatives ($/Bbl)  $29.37   $31.77 
           
Natural gas, oil and condensate and NGL sales          
Natural gas equivalents (MMcfe)   97,827    96,751 
Natural gas equivalents (MMcfe) per day   1,063    1,052 
Total sales  $263,055   $545,922 
Average price without the impact of derivatives ($/Mcfe)  $2.69   $5.64 
Impact from settled derivatives ($/Mcfe)  $0.51   $(2.63)
Average price, including settled derivatives ($/Mcfe)  $3.20   $3.01 
           
Production Costs:          
Average lease operating expenses ($/Mcfe)  $0.17   $0.18 
Average taxes other than income ($/Mcfe)  $0.08   $0.15 
Average transportation, gathering, processing and compression ($/Mcfe)  $0.91   $0.99 
Total lease operating expenses, midstream costs and production taxes ($/Mcfe)  $1.16   $1.32 

 

Page 4

 

 

 

Production and Pricing : Year ended, December 31, 2023

 

The following table summarizes production and related pricing for the year ended December 31, 2023, as compared to such data for the year ended December 31, 2022:

 

   Year Ended
December 31,
2023
   Year Ended
December 31,
2022
 
Natural gas sales        
Natural gas production volumes (MMcf)   350,306    322,366 
Natural gas production volumes (MMcf) per day   960    883 
Total sales  $831,812   $1,998,452 
Average price without the impact of derivatives ($/Mcf)  $2.37   $6.20 
Impact from settled derivatives ($/Mcf)  $0.42   $(3.11)
Average price, including settled derivatives ($/Mcf)  $2.79   $3.09 
           
Oil and condensate sales          
Oil and condensate production volumes (MBbl)   1,363    1,610 
Oil and condensate production volumes (MBbl) per day   4    4 
Total sales  $99,854   $147,444 
Average price without the impact of derivatives ($/Bbl)  $73.27   $91.58 
Impact from settled derivatives ($/Bbl)  $(2.53)  $(24.32)
Average price, including settled derivatives ($/Bbl)  $70.74   $67.26 
           
NGL sales          
NGL production volumes (MBbl)   4,386    4,483 
NGL production volumes (MBbl) per day   12    12 
Total sales  $119,717   $184,963 
Average price without the impact of derivatives ($/Bbl)  $27.29   $41.26 
Impact from settled derivatives ($/Bbl)  $2.07   $(2.80)
Average price, including settled derivatives ($/Bbl)  $29.36   $38.46 
           
Natural gas, oil and condensate and NGL sales          
Natural gas equivalents (MMcfe)   384,802    358,924 
Natural gas equivalents (MMcfe) per day   1,054    983 
Total sales  $1,051,383   $2,330,859 
Average price without the impact of derivatives ($/Mcfe)  $2.73   $6.49 
Impact from settled derivatives ($/Mcfe)  $0.40   $(2.94)
Average price, including settled derivatives ($/Mcfe)  $3.13   $3.55 
           
Production Costs:          
Average lease operating expenses ($/Mcfe)  $0.18   $0.18 
Average taxes other than income ($/Mcfe)  $0.09   $0.17 
Average transportation, gathering, processing and compression ($/Mcfe)  $0.91   $1.00 
Total lease operating expenses, midstream costs and production taxes ($/Mcfe)  $1.17   $1.34 

 

Totals may not sum or recalculate due to rounding.

 

Page 5

 

 

 

Consolidated Statements of Income: Quarter ended, December 31, 2023

 

(In thousands, except per share data)

(Unaudited)

 

   Three Months
Ended
December 31,
2023
   Three Months
Ended
December 31,
2022
 
REVENUES:        
Natural gas sales  $212,631   $468,554 
Oil and condensate sales   23,642    36,146 
Natural gas liquid sales   26,782    41,222 
Net gain on natural gas, oil and NGL derivatives   226,053    436,570 
Total revenues   489,108    982,492 
OPERATING EXPENSES:          
Lease operating expenses   17,004    17,544 
Taxes other than income   7,868    14,460 
Transportation, gathering, processing and compression   88,748    95,468 
Depreciation, depletion and amortization   80,968    78,456 
General and administrative expenses   11,362    11,176 
Accretion expense   665    689 
Total operating expenses   206,615    217,793 
INCOME FROM OPERATIONS   282,493    764,699 
OTHER EXPENSE:          
Interest expense   14,667    16,094 
Other, net   (7,490)   37 
Total other expense   7,177    16,131 
INCOME BEFORE INCOME TAXES   275,316    748,568 
INCOME TAX EXPENSE:          
Current        
Deferred   29,585     
Total income tax expense   29,585     
NET INCOME  $245,731   $748,568 
Dividends on Preferred Stock   (1,122)   (1,308)
Participating securities - Preferred Stock   (35,629)   (121,659)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS  $208,980   $625,601 
NET INCOME PER COMMON SHARE:          
Basic  $11.28   $32.57 
Diluted  $11.13   $32.35 
Weighted average common shares outstanding—Basic   18,524    19,208 
Weighted average common shares outstanding—Diluted   18,829    19,366 

 

Page 6

 

 

 

Consolidated Statements of Income: Year ended, December 31, 2023

 

(In thousands, except per share data)

(Unaudited)

 

   Year Ended
December 31,
2023
   Year Ended
December 31,
2022
 
REVENUES:        
Natural gas sales  $831,812   $1,998,452 
Oil and condensate sales   99,854    147,444 
Natural gas liquid sales   119,717    184,963 
Net gain (loss) on natural gas, oil and NGL derivatives   740,319    (999,747)
Total revenues   1,791,702    1,331,112 
OPERATING EXPENSES:          
Lease operating expenses   68,648    64,790 
Taxes other than income   33,717    60,139 
Transportation, gathering, processing and compression   348,631    357,246 
Depreciation, depletion and amortization   319,715    267,761 
General and administrative expenses   38,600    35,304 
Restructuring costs   4,762     
Accretion expense   2,782    2,746 
Total operating expenses   816,855    787,986 
INCOME FROM OPERATIONS   974,847    543,126 
OTHER EXPENSE (INCOME):          
Interest expense   57,069    59,773 
Other, net   (27,982)   (11,348)
Total other expense   29,087    48,425 
INCOME BEFORE INCOME TAXES   945,760    494,701 
INCOME TAX BENEFIT:          
Current        
Deferred   (525,156)    
Total income tax benefit   (525,156)    
NET INCOME  $1,470,916   $494,701 
Dividends on Preferred Stock   (4,840)   (5,444)
Participating securities - Preferred Stock   (212,360)   (76,401)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS  $1,253,716   $412,856 
NET INCOME PER COMMON SHARE:          
Basic  $67.24   $20.45 
Diluted  $66.46   $20.32 
Weighted average common shares outstanding—Basic   18,645    20,185 
Weighted average common shares outstanding—Diluted   18,902    20,347 

 

Page 7

 

 

 

Consolidated Balance Sheets

 

(In thousands, except share data)

(Unaudited)

 

   December 31,
2023
   December 31,
2022
 
Assets        
Current assets:        
Cash and cash equivalents  $1,929   $7,259 
Accounts receivable—oil, natural gas, and natural gas liquids sales   122,479    278,404 
Accounts receivable—joint interest and other   22,221    21,478 
Prepaid expenses and other current assets   16,951    7,621 
Short-term derivative instruments   233,226    87,508 
Total current assets   396,806    402,270 
Property and equipment:          
Oil and natural gas properties, full-cost method          
Proved oil and natural gas properties   2,904,519    2,418,666 
Unproved properties   204,233    178,472 
Other property and equipment   9,165    6,363 
Total property and equipment   3,117,917    2,603,501 
Less: accumulated depletion, depreciation and amortization   (865,618)   (545,771)
Total property and equipment, net   2,252,299    2,057,730 
Other assets:          
Long-term derivative instruments   47,566    26,525 
Deferred tax asset   525,156     
Operating lease assets   14,299    26,713 
Other assets   31,487    21,241 
Total other assets   618,508    74,479 
Total assets  $3,267,613   $2,534,479 

 

Page 8

 

 

 

Consolidated Balance Sheets

 

(In thousands, except share data)

(Unaudited)

 

   December 31,
2023
   December 31,
2022
 
Liabilities, Mezzanine Equity and Stockholders’ Equity        
Current liabilities:        
Accounts payable and accrued liabilities  $309,532   $437,384 
Short-term derivative instruments   21,963    343,522 
Current portion of operating lease liabilities   12,959    12,414 
Total current liabilities   344,454    793,320 
Non-current liabilities:          
Long-term derivative instruments   18,602    118,404 
Asset retirement obligation   29,941    33,171 
Non-current operating lease liabilities   1,340    14,299 
Long-term debt   667,382    694,155 
Total non-current liabilities   717,265    860,029 
Total liabilities  $1,061,719   $1,653,349 
Commitments and contingencies          
Mezzanine equity:          
Preferred Stock - $0.0001 par value, 110.0 thousand shares authorized, 44.2 thousand and outstanding at December 31, 2023, and 52.3 thousand issued and outstanding at December 31, 2022   44,214    52,295 
Stockholders’ equity:          
Common Stock - $0.0001 par value, 42.0 million shares authorized, 18.3 million issued and outstanding at December 31, 2023, and 19.1 million issued and outstanding at December 31, 2022   2    2 
Additional paid-in capital   315,726    449,243 
Common Stock held in reserve, 62.0 thousand shares at December 31, 2023, and 62.0 thousand shares at December 31, 2022   (1,996)   (1,996)
Retained earnings   1,847,948    381,872 
Treasury stock, at cost - 0.0 thousand shares at December 31, 2023, and 3.9 thousand shares at December 31, 2022       (286)
Total stockholders’ equity  $2,161,680   $828,835 
Total liabilities, mezzanine equity and stockholders’ equity  $3,267,613   $2,534,479 

 

Page 9

 

 

 

Consolidated Statement of Cash Flows: Quarter ended, December 31, 2023

 

(In thousands)

(Unaudited)

 

   Three Months
Ended
December 31,
2023
   Three Months
Ended
December 31,
2022
 
Cash flows from operating activities:        
Net income  $245,731   $748,568 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depletion, depreciation and amortization   80,968    78,456 
Net gain on derivative instruments   (226,053)   (436,570)
Net cash receipts (payments) on settled derivative instruments   50,252    (254,394)
Deferred income tax expense   29,585     
Stock-based compensation expense   2,077    1,566 
Other, net   1,778    1,382 
Changes in operating assets and liabilities, net   (28,837)   48,987 
Net cash provided by operating activities   155,501    187,995 
Cash flows from investing activities:          
Additions to oil and natural gas properties   (116,228)   (128,786)
Proceeds from sale of oil and natural gas properties   12    150 
Other, net   (1,030)   (339)
Net cash used in investing activities   (117,246)   (128,975)
Cash flows from financing activities:          
Principal payments on Credit Facility   (250,000)   (570,000)
Borrowings on Credit Facility   273,000    536,000 
Debt issuance costs and loan commitment fees   (103)   (23)
Dividends on preferred stock   (1,122)   (1,308)
Repurchase of common stock under Repurchase Program   (46,408)   (24,691)
Repurchase of common stock under Repurchase Program - related party   (20,000)    
Other, net   (18)   (26)
Net cash used in financing activities   (44,651)   (60,048)
Net change in cash, cash equivalents and restricted cash   (6,396)   (1,028)
Cash and cash equivalents at beginning of period   8,325    8,287 
Cash and cash equivalents at end of period  $1,929   $7,259 

 

Page 10

 

 

 

Consolidated Statement of Cash Flows: Year ended, December 31, 2023

 

(In thousands)

(Unaudited)

 

   Year Ended
December 31,
2023
   Year Ended
December 31,
2022
 
Cash flows from operating activities:        
Net income  $1,470,916   $494,701 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depletion, depreciation and amortization   319,715    267,761 
Net (gain) loss on derivative instruments   (740,319)   999,747 
Net cash receipts (payments) on settled derivative instruments   152,199    (1,053,810)
Deferred income tax benefit   (525,156)    
Stock-based compensation expense   9,480    5,723 
Other, net   7,645    5,528 
Changes in operating assets and liabilities, net   28,701    19,427 
Net cash provided by operating activities   723,181    739,077 
Cash flows from investing activities:          
Additions to oil and natural gas properties   (537,360)   (460,780)
Proceeds from sale of oil and natural gas properties   2,659    3,360 
Other, net   (2,526)   (875)
Net cash used in investing activities   (537,227)   (458,295)
Cash flows from financing activities:          
Principal payments on Credit Facility   (998,000)   (2,082,000)
Borrowings on Credit Facility   971,000    2,063,000 
Debt issuance costs and loan commitment fees   (7,068)   (234)
Dividends on Preferred Stock   (4,840)   (5,444)
Repurchase of Common Stock under Repurchase Program   (108,735)   (250,482)
Repurchase of Common Stock under Repurchase Program - related party   (40,430)    
Other, net   (3,211)   (1,623)
Net cash used in financing activities   (191,284)   (276,783)
Net increase (decrease) in cash and cash equivalents   (5,330)   3,999 
Cash and cash equivalents at beginning of period   7,259    3,260 
Cash and cash equivalents at end of period   1,929    7,259 

 

Page 11

 

 

 

2024E Guidance

 

Gulfport's 2024 guidance assumes commodity strip prices as of February 13, 2024, adjusted for applicable commodity and location differentials, and no property acquisitions or divestitures.

 

   Year Ending 
   December 31, 2024 
   Low   High 
Production        
Average daily gas equivalent (MMcfe/day)   1,045    1,080 
% Gas   ~92% 
           
Realizations (before hedges)          
Natural gas (differential to NYMEX settled price) ($/Mcf)  $(0.20)  $(0.35)
NGL (% of WTI)   35%   40%
Oil (differential to NYMEX WTI) ($/Bbl)  $(4.75)  $(5.75)
           
Expenses          
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   $0.94 
Recurring cash general and administrative(1,2) ($/Mcfe)  $0.11   $0.13 

 

   Total 
Capital expenditures (incurred)  (in millions) 
D&C  $330   $360 
Maintenance leasehold and land  $50   $60 
Total base capital expenditures  $380   $420 

 

(1)Recurring cash G&A includes capitalization. It excludes non-cash stock compensation and expenses related to the continued administration of our prior Chapter 11 filing.

(2)This is a non-GAAP measure. Reconciliations of these non-GAAP measures and other disclosures are provided with the supplemental financial tables available on our website at www.gulfportenergy.com.

 

Page 12

 

 

 

Derivatives

 

The below details Gulfport's hedging positions as of February 27, 2024.

 

   1Q2024   2Q2024   3Q2024   4Q2024   Full Year
2024
   Full Year
2025
 
Natural Gas Contract Summary (NYMEX):                        
Fixed Price Swaps                        
Volume (BBtupd)   330    330    400    400    365    180 
Weighted Average Price ($/MMBtu)  $4.04   $4.04   $3.77   $3.77   $3.89   $4.00 
                               
Fixed Price Collars                              
Volume (BBtupd)   225    225    225    225    225    130 
Weighted Average Floor Price ($/MMBtu)  $3.36   $3.36   $3.36   $3.36   $3.36   $3.53 
Weighted Average Ceiling Price ($/MMBtu)  $5.14   $5.14   $5.14   $5.14   $5.14   $4.43 
                               
Fixed Price Calls Sold                              
Volume (BBtupd)   202    202    202    202    202    193 
Weighted Average Price ($/MMBtu)  $3.33   $3.33   $3.33   $3.33   $3.33   $5.80 
                               
Rex Zone 3 Basis                              
Volume (BBtupd)   150    150    150    150    150     
Differential ($/MMBtu)  $(0.15)  $(0.15)  $(0.15)  $(0.15)  $(0.15)  $ 
                               
Tetco M2 Basis                              
Volume (BBtupd)   203    210    190    190    198    100 
Differential ($/MMBtu)  $(0.93)  $(0.93)  $(0.92)  $(0.92)  $(0.93)  $(0.99)
                               
NGPL TX OK  Basis                              
Volume (BBtupd)   70    70    70    70    70     
Differential ($/MMBtu)  $(0.31)  $(0.31)  $(0.31)  $(0.31)  $(0.31)  $ 
                               
Oil Contract Summary (WTI):                              
Fixed Price Swaps                              
Volume (Bblpd)   500    500    500    500    500     
Weighted Average Price ($/Bbl)  $77.50   $77.50   $77.50   $77.50   $77.50   $ 
                               
Fixed Price Collars                              
Volume (Bblpd)   1,000    1,000    1,000    1,000    1,000     
Weighted Average Floor Price ($/Bbl)  $62.00   $62.00   $62.00   $62.00   $62.00   $ 
Weighted Average Ceiling Price ($/Bbl)  $80.00   $80.00   $80.00   $80.00   $80.00   $ 
                               
NGL Contract Summary:                              
C3 Propane Fixed Price Swaps                              
Volume (Bblpd)   2,500    2,500    2,500    2,500    2,500    2,000 
Weighted Average Price ($/Bbl)  $30.25   $30.25   $30.25   $30.25   $30.25   $30.09 

  

Page 13

 

 

 

 

Non-GAAP Reconciliations

 

Gulfport’s management uses certain non-GAAP financial measures for planning, forecasting and evaluating business and financial performance, and believes that they are useful tool to assess Gulfport’s operating results. Although these are not measures of performance calculated in accordance with generally accepted accounting principles (GAAP), management believes that these financial measures are useful to an investor in evaluating Gulfport because (i) analysts utilize these metrics when evaluating company performance and have requested this information as of a recent practicable date, (ii) these metrics are widely used to evaluate a company’s operating performance, and (iii) we want to provide updated information to investors. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with GAAP. In addition, because all companies do not calculate these measures identically, these measures may not be comparable to similarly titled measures of other companies

 

These non-GAAP financial measures include adjusted net income, adjusted EBITDA, adjusted free cash flow, and recurring general and administrative expense. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. These non-GAAP measure should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP.

 

Page 14

 

 

 

 

Definitions

 

Adjusted net income is a non-GAAP financial measure equal to income (loss) before deferred income tax expense (benefit), non-cash derivative loss (gain), non-recurring general and administrative expenses comprised of expenses related to the continued administration of our prior Chapter 11 filing, restructuring costs, stock-based compensation expenses and other items which include items related to our Chapter 11 filing and other non-material expenses.

 

Adjusted EBITDA is a non-GAAP financial measure equal to net income (loss), the most directly comparable GAAP financial measure, plus interest expense, income tax expense (benefit), depreciation, depletion and amortization of oil and gas properties, property and equipment, accretion, non-cash derivative (gain) loss, non-recurring general and administrative expenses comprised of expenses related to the continued administration of our prior Chapter 11 filing, restructuring costs, stock-based compensation and other items which include items related to our Chapter 11 filing and other non-material expenses.

 

Adjusted free cash flow is a non-GAAP measure defined as adjusted EBITDA plus certain non-cash items that are included in net cash provided by operating activities but excluded from adjusted EBITDA less interest expense, capital expenses incurred and capital expenditures incurred, excluding discretionary acreage acquisitions. Gulfport includes a adjusted free cash flow estimate for 2024. We are unable, however, to provide a quantitative reconciliation of the forward-looking non-GAAP measure to its most directly comparable forward-looking GAAP measure because management cannot reliably quantify certain of the necessary components of such forward-looking GAAP measure. Accordingly, Gulfport is relying on the exception provided by Item 10(e)(1)(i) (B) of Regulation S-K to exclude such reconciliation. Items excluded in net cash provided by (used in) operating activities to arrive at adjusted free cash flow include interest expense, income taxes, capitalized expenses as well as one-time items or items whose timing or amount cannot be reasonably estimated.

 

Recurring general and administrative expense is a non-GAAP financial measure equal to general and administrative expense (GAAP) plus capitalized general and administrative expense, less non-recurring general and administrative expenses comprised of expenses related to the continued administration of our prior Chapter 11 filing. Gulfport includes a recurring general and administrative expense estimate for 2023. We are unable, however, to provide a quantitative reconciliation of the forward-looking non-GAAP measure to its most directly comparable forward-looking GAAP measure because management cannot reliably quantify certain of the necessary components of such forward-looking GAAP measure. Accordingly, Gulfport is relying on the exception provided by Item 10(e)(1)(i) (B) of Regulation S-K to exclude such reconciliation. Items excluded in general and administrative expense to arrive at recurring general and administrative expense include capitalized expenses as well as one-time items or items whose timing or amount cannot be reasonably estimated. The non-GAAP measure recurring general and administrative expenses allows investors to compare Gulfport’s total general and administrative expenses, including capitalization, to peer companies that account for their oil and gas operations using the successful efforts method.

 

Page 15

 

 

 

 

Adjusted Net Income: Quarter ended, December 31, 2023

 

(In thousands)

(Unaudited)

 

   Three Months
Ended
December 31,
2023
   Three Months
Ended
December 31,
2022
 
Net Income (GAAP)  $245,731   $748,568 
           
Adjustments:          
Deferred income tax expense   29,585     
Non-cash derivative gain   (175,801)   (690,964)
Non-recurring general and administrative expense   409    1,479 
Stock-based compensation expense   2,077    1,566 
Other, net(1)   (7,490)   37 
Adjusted Net Income (Non-GAAP)  $94,511   $60,686 

 

(1)For the three months ended December 31, 2023, “Other, net” included $8.3 million receipt of funds related to Gulfport’s TC claim distribution. Gulfport does not expect to receive additional distributions from the liquidating trust for its TC claim. The distribution is more fully described in Note 19 of our consolidated financial statements in our Annual Report on Form 10-K filing for the year ended December 31, 2023.

 

Page 16

 

 

 

 

Adjusted Net Income: Year ended, December 31, 2023

(In thousands)

(Unaudited)

 

   Year Ended
December 31,
2023
   Year Ended
December 31,
2022
 
         
Net Income (GAAP)   1,470,916   $494,701 
           
Adjustments:          
Deferred income tax benefit   (525,156)    
Non-cash derivative gain   (588,120)   (54,063)
Non-recurring general and administrative expense   2,844    3,152 
Restructuring costs   4,762     
Stock-based compensation expense   8,215    5,723 
Other, net(1,2)   (27,982)   (11,348)
Adjusted Net Income (Non-GAAP)  $345,479   $438,165 

 

(1)For the year ended December 31, 2023, “Other, net” included $17.8 million receipt of funds related to the interim TC claim distribution and a $1 million administrative payment to Rover as part of the executed settlement that occurred in the first quarter of 2023. Additionally, in the fourth quarter of 2023, Gulfport received an additional $8.3 million distribution related to its TC claim. Gulfport does not expect to receive additional distributions from the liquidating trust for its TC claim. The distributions and settlement is more fully described in Note 19 of our consolidated financial statements in our Annual Report on Form 10-K filing  for the year ended December 31, 2023. In the second quarter 2023, “Other, net” included a $5.0 million recoupment of previously placed collateral for certain firm transportation commitments during our Chapter 11 filing.
(2)For the year ended December 31, 2022, “Other, net” included $11.5 million related to our initial claim distribution from our Chapter 11 Plan of Reorganization. The distribution is more fully described in Note 19 of our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.

  

Page 17

 

 

 

Adjusted EBITDA: Quarter ended, December 31, 2023

 

(In thousands)

(Unaudited)

 

   Three Months
Ended
December 31,
2023
   Three Months
Ended
December 31,
2022
 
         
Net Income (GAAP)  $245,731   $748,568 
           
Adjustments:          
Interest expense   14,667    16,094 
Deferred income tax expense   29,585     
DD&A and accretion   81,633    79,145 
Non-cash derivative gain   (175,801)   (690,964)
Non-recurring general and administrative expenses   409    1,479 
Stock-based compensation expense   2,077    1,566 
Other, net(1)   (7,490)   37 
Adjusted EBITDA (Non-GAAP)  $190,811   $155,925 

 

(1)For the three months ended December 31, 2023, “Other, net” included $8.3 million receipt of funds related to Gulfport’s TC claim distribution. Gulfport does not expect to receive additional distributions from the liquidating trust for its TC claim. The distribution is more fully described in Note 19 of our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.

 

Page 18

 

 

 

Adjusted EBITDA: Year ended, December 31, 2023

 

(In thousands)

(Unaudited)

 

   Year Ended
December 31,
2023
   Year Ended
December 31,
2022
 
         
Net Income (GAAP)   1,470,916    494,701 
           
Adjustments:          
Interest expense   57,069    59,773 
Deferred income tax benefit   (525,156)    
DD&A and accretion   322,497    270,507 
Non-cash derivative gain   (588,120)   (54,063)
Non-recurring general and administrative expenses   2,844    3,152 
Restructuring costs   4,762     
Stock-based compensation expense   8,215    5,723 
Other, net(1,2)   (27,982)   (11,348)
Adjusted EBITDA (Non-GAAP)  $725,045   $768,445 

 

(1) For the year ended December 31, 2023, “Other, net” included $17.8 million receipt of funds related to the interim TC claim distribution and a $1 million administrative payment to Rover as part of the executed settlement that occurred in the first quarter of 2023. Additionally, in the fourth quarter of 2023, Gulfport received an additional $8.3 million distribution related to its TC claim. Gulfport does not expect to receive additional distributions from the liquidating trust for its TC claim. The distributions and settlement is more fully described in Note 19 of our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. In the second quarter of 2023, “Other, net” included a $5.0 million recoupment of previously placed collateral for certain firm transportation commitments during our Chapter 11 filing.
(2) For the year ended December 31, 2022, “Other, net” included $11.5 million related to our initial claim distribution from our Chapter 11 Plan of Reorganization. The distribution is more fully described in Note 19 of our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.

 

Page 19

 

 

 

Adjusted Free Cash Flow: Quarter ended, December 31, 2023

 

(In thousands)

(Unaudited)

 

   Three Months
Ended
December 31,
2023
   Three Months
Ended
December 31,
2022
 
         
Net cash provided by operating activity (GAAP)  $155,501   $187,995 
Adjustments:          
Interest expense   14,667    16,094 
Non-recurring general and administrative expenses   409    1,479 
Other, net(1)   (8,603)   (656)
Changes in operating assets and liabilities, net:          
Accounts receivable - oil, natural gas, and natural gas liquids sales   15,748    (39,124)
Accounts receivable - joint interest and other   9,857    (13,852)
Accounts payable and accrued liabilities   2,672    5,769 
Prepaid expenses   571    (1,802)
Other assets   (11)   22 
Total changes in operating assets and liabilities, net  $28,837   $(48,987)
Adjusted EBITDA (Non-GAAP)  $190,811   $155,925 
Interest expense   (14,667)   (16,094)
Capitalized expenses incurred(2)   (6,794)   (4,722)
Capital expenditures incurred(3,4)   (83,904)   (101,918)
Adjusted free cash flow (Non-GAAP)(3)  $85,446   $33,191 

 

(1) For the three months ended December 31, 2023, “Other, net” included $8.3 million receipt of funds related to its TC claim distribution. Gulfport does not expect to receive additional distributions from the liquidating trust for its TC claim. The distribution is more fully described in Note 19 of our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.
(2) Includes cash capitalized general and administrative expense and incurred capitalized interest expenses.
(3) Incurred capital expenditures and cash capital expenditures may vary from period to period due to the cash payment cycle.
(4) Includes $1.0 million of non-O&G capital and excludes targeted discretionary acreage acquisitions of $23.1 million.

 

Page 20

 

 

 

Adjusted Free Cash Flow: Year ended, December 31, 2023

 

(In thousands)

(Unaudited)

 

   Year Ended
December 31,
2023
   Year Ended
December 31,
2022
 
         
Net cash provided by operating activity (GAAP)  $723,181   $739,077 
Adjustments:          
Interest expense   57,069    59,773 
Non-recurring general and administrative expenses   2,844    3,152 
Restructuring costs   4,762     
Other, net(1,2)   (34,110)   (14,130)
Changes in operating assets and liabilities, net:          
Accounts receivable - oil, natural gas, and natural gas liquids sales   (155,925)   45,550 
Accounts receivable - joint interest and other   743    1,095 
Accounts payable and accrued liabilities   126,329    (59,879)
Prepaid expenses   215    (4,863)
Other assets   (63)   (1,330)
Total changes in operating assets and liabilities  $(28,701)  $(19,427)
Adjusted EBITDA (Non-GAAP)  $725,045   $768,445 
Interest expense   (57,069)   (59,773)
Capitalized expenses incurred(3)   (22,911)   (17,208)
Capital expenditures incurred(4,5)   (446,202)   (450,879)
Adjusted free cash flow (Non-GAAP)(5)  $198,863   $240,585 

 

(1) For the year ended December 31, 2023, “Other, net” included $17.8 million receipt of funds related to the interim TC claim distribution and a $1 million administrative payment to Rover as part of the executed settlement that occurred in the first quarter of 2023. Additionally, in the fourth quarter of 2023, Gulfport received an additional $8.3 million distribution related to its TC claim. Gulfport does not expect to receive additional distributions from the liquidating trust for its TC claim. The distributions and settlement is more fully described in Note 19 of our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. In the second quarter of 2023, “Other, net” included a $5.0 million recoupment of previously placed collateral for certain firm transportation commitments during our Chapter 11 filing.
(2) For the year ended December 31, 2022, “Other, net” included $11.5 million related to our initial claim distribution from our Chapter 11 Plan of Reorganization. The distribution is more fully described in Note 19 of our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.
(3) Includes cash capitalized general and administrative expense and incurred capitalized interest expenses.
(4) Incurred capital expenditures and cash capital expenditures may vary from period to period due to the cash payment cycle.
(5) Includes $2.8 million of non-O&G capital and excludes targeted discretionary acreage acquisitions of $48.0 million.

 

Page 21

 

 

 

Recurring General and Administrative Expenses:

 

Quarter ended, December 31, 2023

 

(In thousands)

(Unaudited)

 

   Three Months Ended
December 31, 2023
   Three Months Ended
December 31, 2022
 
   Cash   Non-Cash   Total   Cash   Non-Cash   Total 
                         
General and administrative expense (GAAP)  $9,285   $2,077   $11,362   $9,611   $1,565   $11,176 
Capitalized general and administrative expense   5,601    1,023    6,624    4,722    807    5,529 
Non-recurring general and administrative expense   (409)       (409)   (1,479)       (1,479)
Recurring general and administrative before capitalization (Non-GAAP)  $14,477   $3,100   $17,577   $12,854   $2,372   $15,226 

 

Page 22

 

 

 

Recurring General and Administrative Expenses:

 

Year ended, December 31, 2023

 

(In thousands)

(Unaudited)

 

   Year Ended
December 31, 2023
   Year Ended
December 31, 2022
 
   Cash   Non-Cash   Total   Cash   Non-Cash   Total 
                         
General and administrative expense (GAAP)  $30,385   $8,215   $38,600   $29,582   $5,722   $35,304 
Capitalized general and administrative expense   18,764    4,046    22,810    17,208    2,949    20,157 
Non-recurring general and administrative expense   (2,844)       (2,844)   (3,152)       (3,152)
Recurring general and administrative before capitalization (Non-GAAP)  $46,305   $12,261   $58,566   $43,638   $8,671   $52,309 

 

 

Page 23

 
v3.24.0.1
Cover
Feb. 27, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Feb. 27, 2024
Entity File Number 001-19514
Entity Registrant Name GULFPORT ENERGY CORPORATION
Entity Central Index Key 0000874499
Entity Tax Identification Number 86-3684669
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 713 Market Drive
Entity Address, City or Town Oklahoma City
Entity Address, State or Province OK
Entity Address, Postal Zip Code 73114
City Area Code 405
Local Phone Number 252-4600
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.0001 per share
Trading Symbol GPOR
Security Exchange Name NYSE
Entity Emerging Growth Company false

Gulfport Energy (NYSE:GPOR)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Gulfport Energy Charts.
Gulfport Energy (NYSE:GPOR)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Gulfport Energy Charts.