Gulfport Energy Corporation Reports Quarterly Results for the Period Ended March 31, 2025

Gulfport Energy’s Q1 2025 Financial Performance: Navigating Volatility and Delivering Shareholder Value

Gulfport Energy, an independent natural gas-weighted exploration and production company, has reported its financial results for the first quarter of 2025. The company’s performance during this period reflects its ability to navigate the challenges of commodity price volatility while continuing to execute on its strategic priorities.

Production and Drilling Activity

Gulfport’s total net production averaged approximately 929.3 MMcfe per day during the first quarter of 2025, a decrease from the 1,053.7 MMcfe per day recorded in the same period of 2024. This decline was primarily due to natural production declines, partially offset by the company’s 2024 and 2025 development programs.

In the Utica/Marcellus region, Gulfport spud eight gross (7.98 net) wells targeting the Utica formation and commenced sales on seven gross (6.99 net) operated Utica wells during the first quarter of 2025. As of April 30, 2025, the company had two operated drilling rigs running in Ohio.

In the SCOOP region, Gulfport did not spud or commence sales on any operated wells during the first quarter of 2025. As of April 30, 2025, the company did not have an operated drilling rig running in the SCOOP.

Financial Performance

Gulfport’s financial performance during the first quarter of 2025 was marked by several key highlights:

Revenue and Pricing

• Natural gas sales increased by 50% compared to the first quarter of 2024, driven by a 76% increase in realized natural gas prices, partially offset by a 15% decrease in sales volumes.
• Oil and condensate sales increased by 44% due to a 57% increase in sales volumes, partially offset by an 8% decrease in realized prices.
• NGL sales increased by 10% due to a 12% increase in realized prices, partially offset by a 2% decrease in NGL sales volumes.

Derivative Impacts

• Gulfport recognized a total loss of $146.5 million on its natural gas, oil, and NGL derivative instruments during the first quarter of 2025, compared to a total gain of $45.1 million in the same period of 2024. This change was primarily due to fluctuations in futures pricing for these commodities.

Expenses

• Lease operating expenses (LOE) increased by 21% compared to the first quarter of 2024, primarily due to higher water hauling, labor, and winter weather-related costs.
• Taxes other than income decreased by 20%, mainly driven by a reduction in property taxes.
• Transportation, gathering, processing, and compression expenses increased by 10% on a per-unit basis, reflecting the higher proportion of natural gas liquids and oil and condensate sales and a 12% decrease in total production volumes.
• Depreciation, depletion, and amortization (DD&A) decreased by 18% on a total basis and 6% on a per-unit basis, primarily due to a lower depletion rate resulting from prior impairments and the decline in production.
• General and administrative (G&A) expenses, net of reimbursements and capitalized amounts, decreased by 2% compared to the first quarter of 2024.
• Interest expense decreased by 11%, primarily due to the tender offer for the 2026 Senior Notes and the issuance of the 2029 Senior Notes.

Income Taxes

• Gulfport recorded an income tax benefit of $0.2 million for the first quarter of 2025, compared to an income tax expense of $14.9 million in the same period of 2024.

Liquidity and Capital Resources

Gulfport maintained a strong liquidity position during the first quarter of 2025, with $906.5 million in total liquidity as of March 31, 2025. The company’s primary sources of capital resources have been internally generated cash flows from operations and access to the debt markets, while its primary uses of cash have been for development of its oil and natural gas properties, share repurchases, and dividend payments on its preferred stock.

Key liquidity and capital resource highlights include:

• As of March 31, 2025, Gulfport had $5.3 million in cash and cash equivalents, $35.0 million in outstanding borrowings under its Credit Facility, and $710.7 million in total principal amount of funded debt.
• In May 2025, Gulfport completed its semi-annual borrowing base redetermination under its Credit Facility, with the borrowing base reaffirmed at $1.1 billion and elected commitments remaining at $1 billion.
• Gulfport continues to utilize derivative contracts to reduce the financial impact of commodity price volatility and provide a level of certainty to its cash flows.
• The company’s capital expenditures for the first quarter of 2025 totaled $159.8 million, with $148.6 million related to drilling and completion activities and $11.2 million for maintenance leasehold and land investment.
• Gulfport’s estimated capital expenditures for the full year 2025 are currently in the range of $335 million to $355 million for operated drilling and completion activities, and $35 million to $40 million for maintenance leasehold and land investment.

Shareholder Returns

Gulfport remains committed to returning capital to shareholders, as evidenced by its ongoing share repurchase program. During the first quarter of 2025, the company repurchased 340,664 shares for $60.0 million at a weighted average price of $176.13 per share. Since the inception of the Repurchase Program, Gulfport has repurchased 5.9 million shares for $644.1 million at a weighted average price of $108.99 per share.

Additionally, the company continues to pay quarterly dividends to holders of its preferred stock, with $0.9 million in cash dividends paid during the first quarter of 2025.

Outlook and Challenges

Gulfport’s performance in the first quarter of 2025 demonstrates its ability to navigate the challenges of the current operating environment, which includes volatility in commodity prices, an uncertain regulatory landscape, and potential impacts from tariffs and trade relationships.

The company’s focus on prudent capital allocation, operational efficiency, and financial discipline has positioned it to generate sustainable cash flow and return capital to shareholders. However, the company remains vigilant in monitoring and addressing potential risks, such as natural production declines, changes in government policies, and the ongoing effects of global trade tensions.

As Gulfport looks to the future, it remains committed to its strategy of developing its assets in a safe and environmentally responsible manner, while generating sustainable cash flow, improving margins and operating efficiencies, and returning capital to shareholders. The company’s strong liquidity position, diversified asset base, and disciplined approach to capital allocation provide a solid foundation for weathering the challenges ahead and delivering long-term value to its shareholders.