GULFPORT ENERGY CORP

Gulfport Energy Corporation is an independent natural gas-weighted exploration and production company with assets primarily located in the Appalachia and Anadarko basins. The company's principal operations target the Utica and Marcellus formations in eastern Ohio and the SCOOP Woodford and Springer formations in central Oklahoma. As of December 31, 2025, the company had 4.3 Tcfe of proved reserves with a Standardized Measure of $3.4 billion and a PV-10 of $3.6 billion ¹.

The oil and natural gas industry is intensely competitive, and Gulfport competes with many other companies that have greater resources. Competitors include multinational oil companies, independent production companies, and individual producers and operators. Many competitors not only explore for and produce oil and natural gas but also have midstream and further downstream operations and market a variety of hydrocarbon products on a regional, national or worldwide basis. The company's competitive advantages include its focus on the economic development of its significant resource plays in the Utica/Marcellus and SCOOP operating areas, deploying leading drilling and completion techniques, and generating sustainable free cash flow.

Gulfport generates revenue from the sale of natural gas, oil and condensate, and natural gas liquids (NGL) produced from its oil and natural gas properties. The company's revenue is primarily transactional, derived from spot and term sales contracts. The company's primary customer segments are purchasers of natural gas, oil, and NGL, with one customer, Customer A, accounting for 14% of total natural gas, oil and NGL sales in 2025 ². The company also enters into long-term gathering, processing and transportation contracts with various parties.

In the Utica/Marcellus operating area, the company has approximately 223,000 net reservoir acres located primarily in Belmont, Harrison, Jefferson and Monroe Counties in eastern Ohio, and has identified approximately 35,000 net reservoir acres for Marcellus development. During 2025, the Utica/Marcellus produced approximately 841 MMcfe per day net to the company's interests and accounted for approximately 81% of total production ³. In the SCOOP operating area, the company has approximately 74,000 net reservoir acres located primarily in Garvin, Grady and Stephens Counties, targeting the Woodford, Sycamore and Springer formations. During 2025, the SCOOP produced approximately 197 MMcfe per day net to the company's interests and accounted for approximately 19% of total production ⁴.

The company's proved reserves as of December 31, 2025 totaled 4,253 Bcfe, consisting of 24 MMBbl of oil, 3,612 Bcf of natural gas, and 83 MMBbl of NGL ⁵. Proved developed reserves were 2,404 Bcfe and proved undeveloped reserves were 1,848 Bcfe ⁶. The Utica & Marcellus accounted for 3,328 Bcfe of total proved reserves, while the SCOOP accounted for 925 Bcfe ⁷. The company's total production for the year ended December 31, 2025 was 379,182 MMcfe, or 1,039 MMcfe per day ⁸.

During 2025, the company repurchased 1.8 million shares for $336.3 million at a weighted average price of $188.65 per share under its Repurchase Program ⁹. On August 4, 2025, the Board of Directors approved an increase to the authorized Repurchase Program from $1.0 billion to $1.5 billion and extended the authorization through December 31, 2026 ¹⁰. On September 5, 2025, the company redeemed its remaining outstanding preferred stock for cash totaling $31.3 million, with direct transaction-related costs of $1.1 million ¹¹. The company also entered into the Fifth Amendment to its Credit Agreement on October 30, 2025, which reaffirmed the borrowing base at $1.1 billion and maintained elected commitments at $1.0 billion ¹².

For the year ended December 31, 2025, the company reported total revenues of $1,422,583 thousand, compared to $958,131 thousand in 2024 ¹³. Net income was $427,810 thousand for 2025, compared to a net loss of $261,386 thousand in 2024 ¹⁴. Net cash provided by operating activities was $803,193 thousand in 2025, compared to $650,033 thousand in 2024 ¹⁵. The company maintained a strong balance sheet, exiting the year with total liquidity of $806.1 million and total principal debt of approximately $797.0 million ¹⁶.

The company's 2026 capital expenditure program is expected to be in a range of $400 million to $430 million, including $35 million to $40 million on maintenance land and seismic investments ¹⁷. In the Utica, the company intends to complete drilling on approximately 18 gross (17.5 net) operated horizontal wells and commence sales on approximately 20 gross (19.5 net) operated horizontal wells. In the Marcellus, the company intends to complete drilling on approximately 6 gross (5.6 net) and commence sales on approximately 4 gross (4.0 net) operated horizontal wells. In the SCOOP, the company intends to complete drilling and commence sales on approximately 2 gross (1.7 net) operated horizontal wells. The company expects this development program to result in approximately 1.030 to 1.055 Bcfe per day of production in 2026 ¹⁸.

The company's primary growth vector is the continued development of its significant resource plays in the Utica/Marcellus and SCOOP operating areas. In 2025, the company drilled, completed, and turned to sales its first four well development pad in the Marcellus, and has 25 PUD Marcellus locations. The company's strategy is to develop its assets in a safe, environmentally responsible manner, while generating sustainable cash flow, enhancing margins and operating efficiencies and returning capital to shareholders. The company generally allocates capital to projects it believes offer the highest rate of return and deploys leading drilling and completion techniques and technologies in its development efforts.

The company's strategy also includes increasing its resource depth through incremental leasehold opportunities that provide optionality to future development plans. During 2025, the company incurred $62.9 million related to discretionary acreage acquisitions ¹⁹. The company's 2026 capital expenditure program includes $35 million to $40 million on maintenance land and seismic investments, primarily focused on near-term drilling programs and facilitating increases in working interests and lateral footage in units planned to drill in 2026, 2027 and 2028 ²⁰.

The company's focus going into 2026 is on reducing cycle times and operating costs to improve margins and enhance expected free cash flow generation. The company plans to maintain capital discipline, prioritizing free cash flow generation and preserving its strong financial position. The company's drilling and completion capital expenditures for 2026 are currently estimated to be in the range of $365 million to $390 million ²¹.

The company expects to fund its 2026 capital expenditures with its operating cash flow and borrowings under its Credit Facility. The company's 2026 capital expenditure program is expected to be in a range of $400 million to $430 million ²². The company expects to continue returning capital to shareholders through its Repurchase Program, which had $579.6 million remaining as of December 31, 2025 and expires on December 31, 2026 ²³.

As of December 31, 2025, the company had $579.6 million remaining on its Repurchase Program, which expires on December 31, 2026 ²⁴. The company's 2026 capital expenditure program is expected to be in a range of $400 million to $430 million ²⁵. The company expects to fund these expenditures with its operating cash flow and borrowings under its Credit Facility.

The company faces headwinds from the volatility of natural gas, oil and NGL prices, which fluctuate widely and can have a material adverse effect on the business. During 2025, WTI prices ranged from $55.44 to $80.73 per barrel and the Henry Hub spot market price of natural gas ranged from $2.65 to $9.86 per MMBtu ²⁶. The company's commodity price risk management activities may limit the benefit it would receive from increases in commodity prices. The company also faces risks from its variable rate indebtedness under its Credit Facility, which subjects it to interest rate risk.

The company's operations are subject to extensive federal, tribal, state, and local laws and regulations, including with respect to environmental matters, worker health and safety, and conservation policies. Regulatory changes could restrict production levels, impose price controls, alter environmental protection requirements and increase taxes, royalties and other amounts payable to the government. The company's undeveloped leasehold acreage must be drilled before the lease's expiration date to hold the lease by production, and failure to drill sufficient wells could result in loss of lease and prospective drilling opportunities.

Natural gas, oil and NGL prices fluctuate widely, and lower prices for extended time periods are likely to have a material adverse effect on the business. During 2025, WTI prices ranged from $55.44 to $80.73 per barrel and the Henry Hub spot market price of natural gas ranged from $2.65 to $9.86 per MMBtu ²⁷. The company's commodity price risk management activities may limit the benefit it would receive from increases in commodity prices. The company's total principal debt was approximately $797.0 million at December 31, 2025, and its variable rate indebtedness under the Credit Facility subjects it to interest rate risk, with a 1% increase in the average interest rate increasing interest expense by approximately $1.5 million based on outstanding borrowings at December 31, 2025 ²⁸. The company's development, acquisition and exploration operations require substantial capital, and it may be unable to obtain needed capital or financing on satisfactory terms. Under the full cost method of accounting, declines in commodity prices may result in impairment of asset value, and the company recognized ceiling test impairments of $373.2 million during 2024 ²⁹. The company's undeveloped leasehold acreage must be drilled before the lease's expiration date to hold the lease by production, and approximately 84% of its Utica/Marcellus acreage is held by existing production, with the remaining acreage subject to expiration.

Management's message emphasizes the company's strategy to create sustainable value through the economic development of its significant resource plays, generating sustainable free cash flow, enhancing margins and operating efficiencies, and returning capital to shareholders. The company's 2026 capital expenditure program is expected to be in a range of $400 million to $430 million, including $35 million to $40 million on maintenance land and seismic investments ³⁰. The company expects this development program to result in approximately 1.030 to 1.055 Bcfe per day of production in 2026 ³¹. Key strategic priorities include maintaining capital discipline, prioritizing free cash flow generation, preserving a strong financial position, returning capital to shareholders, and increasing resource depth through incremental leasehold opportunities.