Exhibit 99.2
Three months and nine months ended September 30, 2024
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 | |
| Updated 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: Three months ended September 30, 2024
Production Volumes
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||
| Natural gas (Mcf/day) | ||||||||
| Utica & Marcellus | 822,015 | 795,191 | ||||||
| SCOOP | 144,507 | 176,161 | ||||||
| Total | 966,522 | 971,352 | ||||||
| Oil and condensate (Bbl/day) | ||||||||
| Utica & Marcellus | 3,105 | 528 | ||||||
| SCOOP | 1,513 | 2,667 | ||||||
| Total | 4,618 | 3,195 | ||||||
| NGL (Bbl/day) | ||||||||
| Utica & Marcellus | 3,491 | 2,271 | ||||||
| SCOOP | 6,998 | 8,790 | ||||||
| Total | 10,489 | 11,061 | ||||||
| Combined (Mcfe/day) | ||||||||
| Utica & Marcellus | 861,592 | 811,985 | ||||||
| SCOOP | 195,572 | 244,902 | ||||||
| Total | 1,057,164 | 1,056,887 | ||||||
| Totals may not sum or recalculate due to rounding. | ||||||||
Page 2
Production Volumes by Asset Area: Nine months ended September 30, 2024
Production Volumes
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||
| Natural gas (Mcf/day) | ||||||||
| Utica & Marcellus | 816,788 | 755,372 | ||||||
| SCOOP | 154,054 | 198,616 | ||||||
| Total | 970,842 | 953,989 | ||||||
| Oil and condensate (Bbl/day) | ||||||||
| Utica & Marcellus | 1,815 | 558 | ||||||
| SCOOP | 1,754 | 3,256 | ||||||
| Total | 3,569 | 3,813 | ||||||
| NGL (Bbl/day) | ||||||||
| Utica & Marcellus | 2,610 | 2,466 | ||||||
| SCOOP | 7,629 | 9,921 | ||||||
| Total | 10,239 | 12,387 | ||||||
| Combined (Mcfe/day) | ||||||||
| Utica & Marcellus | 843,339 | 773,512 | ||||||
| SCOOP | 210,348 | 277,676 | ||||||
| Total | 1,053,687 | 1,051,188 | ||||||
| Totals may not sum or recalculate due to rounding. | ||||||||
Page 3
Production and Pricing: Three months ended September 30, 2024
The following table summarizes production and related pricing for the three months ended September 30, 2024, as compared to such data for the three months ended September 30, 2023. Some totals below may not sum or recalculate due to rounding.
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||
| Natural gas sales | ||||||||
| Natural gas production volumes (MMcf) | 88,920 | 89,364 | ||||||
| Natural gas production volumes (MMcf) per day | 967 | 971 | ||||||
| Total sales | $ | 159,862 | $ | 177,401 | ||||
| Average price without the impact of derivatives ($/Mcf) | $ | 1.80 | $ | 1.99 | ||||
| Impact from settled derivatives ($/Mcf) | $ | 0.95 | $ | 0.54 | ||||
| Average price, including settled derivatives ($/Mcf) | $ | 2.75 | $ | 2.53 | ||||
| Oil and condensate sales | ||||||||
| Oil and condensate production volumes (MBbl) | 425 | 294 | ||||||
| Oil and condensate production volumes (MBbl) per day | 5 | 3 | ||||||
| Total sales | $ | 29,467 | $ | 22,896 | ||||
| Average price without the impact of derivatives ($/Bbl) | $ | 69.35 | $ | 77.90 | ||||
| Impact from settled derivatives ($/Bbl) | $ | 0.22 | $ | (7.25 | ) | |||
| Average price, including settled derivatives ($/Bbl) | $ | 69.57 | $ | 70.65 | ||||
| NGL sales | ||||||||
| NGL production volumes (MBbl) | 965 | 1,018 | ||||||
| NGL production volumes (MBbl) per day | 10 | 11 | ||||||
| Total sales | $ | 26,617 | $ | 26,953 | ||||
| Average price without the impact of derivatives ($/Bbl) | $ | 27.58 | $ | 26.49 | ||||
| Impact from settled derivatives ($/Bbl) | $ | (0.16 | ) | $ | 2.62 | |||
| Average price, including settled derivatives ($/Bbl) | $ | 27.42 | $ | 29.11 | ||||
| Natural gas, oil and condensate and NGL sales | ||||||||
| Natural gas equivalents (MMcfe) | 97,259 | 97,234 | ||||||
| Natural gas equivalents (MMcfe) per day | 1,057 | 1,057 | ||||||
| Total sales | $ | 215,946 | $ | 227,250 | ||||
| Average price without the impact of derivatives ($/Mcfe) | $ | 2.22 | $ | 2.34 | ||||
| Impact from settled derivatives ($/Mcfe) | $ | 0.87 | $ | 0.50 | ||||
| Average price, including settled derivatives ($/Mcfe) | $ | 3.09 | $ | 2.84 | ||||
| Production Costs: | ||||||||
| Average lease operating expenses ($/Mcfe) | $ | 0.19 | $ | 0.16 | ||||
| Average taxes other than income ($/Mcfe) | $ | 0.07 | $ | 0.07 | ||||
| Average transportation, gathering, processing and compression ($/Mcfe) | $ | 0.92 | $ | 0.89 | ||||
| Total lease operating expenses, midstream costs and production taxes ($/Mcfe) | $ | 1.18 | $ | 1.12 | ||||
Page 4
Production and Pricing: Nine months ended September 30, 2024
The following table summarizes production and related pricing for the nine months ended September 30, 2024, as compared to such data for the nine months ended September 30, 2023. Some totals below may not sum or recalculate due to rounding.
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||
| Natural gas sales | ||||||||
| Natural gas production volumes (MMcf) | 266,011 | 260,439 | ||||||
| Natural gas production volumes (MMcf) per day | 971 | 954 | ||||||
| Total sales | $ | 492,606 | $ | 619,181 | ||||
| Average price without the impact of derivatives ($/Mcf) | $ | 1.85 | $ | 2.38 | ||||
| Impact from settled derivatives ($/Mcf) | $ | 0.91 | $ | 0.37 | ||||
| Average price, including settled derivatives ($/Mcf) | $ | 2.76 | $ | 2.75 | ||||
| Oil and condensate sales | ||||||||
| Oil and condensate production volumes (MBbl) | 978 | 1,041 | ||||||
| Oil and condensate production volumes (MBbl) per day | 4 | 4 | ||||||
| Total sales | $ | 70,295 | $ | 76,212 | ||||
| Average price without the impact of derivatives ($/Bbl) | $ | 71.89 | $ | 73.21 | ||||
| Impact from settled derivatives ($/Bbl) | $ | (0.17 | ) | $ | (2.29 | ) | ||
| Average price, including settled derivatives ($/Bbl) | $ | 71.72 | $ | 70.92 | ||||
| NGL sales | ||||||||
| NGL production volumes (MBbl) | 2,805 | 3,382 | ||||||
| NGL production volumes (MBbl) per day | 10 | 12 | ||||||
| Total sales | $ | 80,870 | $ | 92,935 | ||||
| Average price without the impact of derivatives ($/Bbl) | $ | 28.83 | $ | 27.48 | ||||
| Impact from settled derivatives ($/Bbl) | $ | (0.55 | ) | $ | 1.88 | |||
| Average price, including settled derivatives ($/Bbl) | $ | 28.28 | $ | 29.36 | ||||
| Natural gas, oil and condensate and NGL sales | ||||||||
| Natural gas equivalents (MMcfe) | 288,710 | 286,974 | ||||||
| Natural gas equivalents (MMcfe) per day | 1,054 | 1,051 | ||||||
| Total sales | $ | 643,771 | $ | 788,328 | ||||
| Average price without the impact of derivatives ($/Mcfe) | $ | 2.23 | $ | 2.75 | ||||
| Impact from settled derivatives ($/Mcfe) | $ | 0.83 | $ | 0.35 | ||||
| Average price, including settled derivatives ($/Mcfe) | $ | 3.06 | $ | 3.10 | ||||
| Production Costs: | ||||||||
| Average lease operating expenses ($/Mcfe) | $ | 0.18 | $ | 0.18 | ||||
| Average taxes other than income ($/Mcfe) | $ | 0.08 | $ | 0.09 | ||||
| Average transportation, gathering, processing and compression ($/Mcfe) | $ | 0.91 | $ | 0.91 | ||||
| Total lease operating expenses, midstream costs and production taxes ($/Mcfe) | $ | 1.16 | $ | 1.18 | ||||
Page 5
Consolidated Statements of Income: Three months ended September 30, 2024
(In thousands, except per share data)
(Unaudited)
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||
| REVENUES: | ||||||||
| Natural gas sales | $ | 159,862 | $ | 177,401 | ||||
| Oil and condensate sales | 29,467 | 22,896 | ||||||
| Natural gas liquid sales | 26,617 | 26,953 | ||||||
| Net gain on natural gas, oil and NGL derivatives | 37,966 | 39,417 | ||||||
| Total revenues | 253,912 | 266,667 | ||||||
| OPERATING EXPENSES: | ||||||||
| Lease operating expenses | 18,218 | 15,627 | ||||||
| Taxes other than income | 6,833 | 7,216 | ||||||
| Transportation, gathering, processing and compression | 89,900 | 86,602 | ||||||
| Depreciation, depletion and amortization | 82,825 | 79,505 | ||||||
| Impairment of oil and natural gas properties | 30,487 | — | ||||||
| General and administrative expenses | 10,479 | 9,894 | ||||||
| Accretion expense | 583 | 639 | ||||||
| Total operating expenses | 239,325 | 199,483 | ||||||
| INCOME FROM OPERATIONS | 14,587 | 67,184 | ||||||
| OTHER EXPENSE (INCOME): | ||||||||
| Interest expense | 15,866 | 14,919 | ||||||
| Loss on debt extinguishment | 13,388 | — | ||||||
| Other, net | 3,133 | (1,438 | ) | |||||
| Total other expense | 32,387 | 13,481 | ||||||
| (LOSS) INCOME BEFORE INCOME TAXES | (17,800 | ) | 53,703 | |||||
| INCOME TAX BENEFIT: | ||||||||
| Current | — | — | ||||||
| Deferred | (3,833 | ) | (554,741 | ) | ||||
| Total income tax benefit | (3,833 | ) | (554,741 | ) | ||||
| NET (LOSS) INCOME | $ | (13,967 | ) | $ | 608,444 | |||
| Dividends on preferred stock | (1,093 | ) | (1,133 | ) | ||||
| Participating securities - preferred stock | — | (89,756 | ) | |||||
| NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (15,060 | ) | $ | 517,555 | |||
| NET (LOSS) INCOME PER COMMON SHARE: | ||||||||
| Basic | $ | (0.83 | ) | $ | 27.72 | |||
| Diluted | $ | (0.83 | ) | $ | 27.37 | |||
| Weighted average common shares outstanding—Basic | 18,062 | 18,670 | ||||||
| Weighted average common shares outstanding—Diluted | 18,062 | 18,954 | ||||||
Page 6
Consolidated Statements of Income: Nine months ended September 30, 2024
(In thousands, except per share data)
(Unaudited)
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||
| REVENUES: | ||||||||
| Natural gas sales | $ | 492,606 | $ | 619,181 | ||||
| Oil and condensate sales | 70,295 | 76,212 | ||||||
| Natural gas liquid sales | 80,870 | 92,935 | ||||||
| Net gain on natural gas, oil and NGL derivatives | 74,487 | 514,266 | ||||||
| Total revenues | 718,258 | 1,302,594 | ||||||
| OPERATING EXPENSES: | ||||||||
| Lease operating expenses | 50,843 | 51,644 | ||||||
| Taxes other than income | 22,111 | 25,849 | ||||||
| Transportation, gathering, processing and compression | 263,048 | 259,883 | ||||||
| Depreciation, depletion and amortization | 241,401 | 238,747 | ||||||
| Impairment of oil and natural gas properties | 30,487 | — | ||||||
| General and administrative expenses | 30,429 | 27,238 | ||||||
| Restructuring costs | — | 4,762 | ||||||
| Accretion expense | 1,705 | 2,117 | ||||||
| Total operating expenses | 640,024 | 610,240 | ||||||
| INCOME FROM OPERATIONS | 78,234 | 692,354 | ||||||
| OTHER EXPENSE (INCOME): | ||||||||
| Interest expense | 46,027 | 42,402 | ||||||
| Loss on debt extinguishment | 13,388 | — | ||||||
| Other, net | 3,530 | (20,492 | ) | |||||
| Total other expense | 62,945 | 21,910 | ||||||
| INCOME BEFORE INCOME TAXES | 15,289 | 670,444 | ||||||
| INCOME TAX EXPENSE (BENEFIT): | ||||||||
| Current | — | — | ||||||
| Deferred | 3,433 | (554,741 | ) | |||||
| Total income tax expense (benefit) | 3,433 | (554,741 | ) | |||||
| NET INCOME | $ | 11,856 | $ | 1,225,185 | ||||
| Dividends on preferred stock | (3,293 | ) | (3,718 | ) | ||||
| Participating securities - preferred stock | (1,259 | ) | (180,394 | ) | ||||
| NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 7,304 | $ | 1,041,073 | ||||
| NET INCOME PER COMMON SHARE: | ||||||||
| Basic | $ | 0.40 | $ | 55.72 | ||||
| Diluted | $ | 0.40 | $ | 55.08 | ||||
| Weighted average common shares outstanding—Basic | 18,133 | 18,686 | ||||||
| Weighted average common shares outstanding—Diluted | 18,463 | 18,937 | ||||||
Page 7
Consolidated Balance Sheets
(In thousands)
| September 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,220 | $ | 1,929 | ||||
| Accounts receivable—oil, natural gas, and natural gas liquids sales | 88,931 | 122,479 | ||||||
| Accounts receivable—joint interest and other | 14,274 | 22,221 | ||||||
| Prepaid expenses and other current assets | 5,944 | 16,951 | ||||||
| Short-term derivative instruments | 111,076 | 233,226 | ||||||
| Total current assets | 223,445 | 396,806 | ||||||
| Property and equipment: | ||||||||
| Oil and natural gas properties, full-cost method | ||||||||
| Proved oil and natural gas properties | 3,276,165 | 2,904,519 | ||||||
| Unproved properties | 224,370 | 204,233 | ||||||
| Other property and equipment | 11,314 | 9,165 | ||||||
| Total property and equipment | 3,511,849 | 3,117,917 | ||||||
| Less: accumulated depletion, depreciation, amortization and impairment | (1,137,464 | ) | (865,618 | ) | ||||
| Total property and equipment, net | 2,374,385 | 2,252,299 | ||||||
| Other assets: | ||||||||
| Long-term derivative instruments | 23,073 | 47,566 | ||||||
| Deferred tax asset | 521,723 | 525,156 | ||||||
| Operating lease assets | 8,666 | 14,299 | ||||||
| Other assets | 26,864 | 31,487 | ||||||
| Total other assets | 580,326 | 618,508 | ||||||
| Total assets | $ | 3,178,156 | $ | 3,267,613 | ||||
Page 8
Consolidated Balance Sheets
(In thousands, except share data)
| September 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| Liabilities, Mezzanine Equity and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 282,413 | $ | 309,532 | ||||
| Short-term derivative instruments | 36,758 | 21,963 | ||||||
| Current portion of operating lease liabilities | 7,906 | 12,959 | ||||||
| Total current liabilities | 327,077 | 344,454 | ||||||
| Non-current liabilities: | ||||||||
| Long-term derivative instruments | 23,618 | 18,602 | ||||||
| Asset retirement obligation | 32,327 | 29,941 | ||||||
| Non-current operating lease liabilities | 760 | 1,340 | ||||||
| Long-term debt | 694,389 | 667,382 | ||||||
| Total non-current liabilities | 751,094 | 717,265 | ||||||
| Total liabilities | $ | 1,078,171 | $ | 1,061,719 | ||||
| Commitments and contingencies (Note 9) | ||||||||
| Mezzanine equity: | ||||||||
| Preferred stock - $0.0001 par value, 110.0 thousand shares authorized, 43.7 thousand issued and outstanding at September 30, 2024, and 44.2 thousand issued and outstanding at December 31, 2023 | 43,745 | 44,214 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock - $0.0001 par value, 42.0 million shares authorized, 17.8 million issued and outstanding at September 30, 2024, and 18.3 million issued and outstanding at December 31, 2023 | 2 | 2 | ||||||
| Additional paid-in capital | 200,196 | 315,726 | ||||||
| Common stock held in reserve, 0 shares at September 30, 2024 and 62.0 thousand shares at December 31, 2023 | — | (1,996 | ) | |||||
| Retained earnings | 1,856,511 | 1,847,948 | ||||||
| Treasury stock, at cost - 3.1 thousand shares at September 30, 2024 and 0 shares at December 31, 2023 | (469 | ) | — | |||||
| Total stockholders’ equity | $ | 2,056,240 | $ | 2,161,680 | ||||
| Total liabilities, mezzanine equity and stockholders’ equity | $ | 3,178,156 | $ | 3,267,613 | ||||
Page 9
Consolidated Statement of Cash Flows: Three months ended September 30, 2024
(In thousands)
(Unaudited)
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | (13,967 | ) | $ | 608,444 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depletion, depreciation and amortization | 82,825 | 79,505 | ||||||
| Impairment of oil and natural gas properties | 30,487 | — | ||||||
| Loss on debt extinguishment | 13,388 | — | ||||||
| Net gain on derivative instruments | (37,965 | ) | (39,417 | ) | ||||
| Net cash receipts on settled derivative instruments | 84,876 | 49,061 | ||||||
| Deferred income tax benefit | (3,833 | ) | (554,741 | ) | ||||
| Stock-based compensation expense | 2,664 | 2,360 | ||||||
| Other, net | 1,485 | 1,683 | ||||||
| Changes in operating assets and liabilities, net | 29,738 | 9,379 | ||||||
| Net cash provided by operating activities | 189,698 | 156,274 | ||||||
| Cash flows from investing activities: | ||||||||
| Additions to oil and natural gas properties | (132,059 | ) | (137,726 | ) | ||||
| Proceeds from sale of oil and natural gas properties | — | (1 | ) | |||||
| Other, net | (494 | ) | (661 | ) | ||||
| Net cash used in investing activities | (132,553 | ) | (138,388 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Principal payments on Credit Facility | (314,000 | ) | (230,000 | ) | ||||
| Borrowings on Credit Facility | 214,000 | 226,000 | ||||||
| Issuance of 2029 Senior Notes | 650,000 | — | ||||||
| Early retirement of 2026 Senior Notes | (524,298 | ) | — | |||||
| Premium paid on 2026 Senior Notes | (12,941 | ) | — | |||||
| Debt issuance costs and loan commitment fees | (14,714 | ) | (45 | ) | ||||
| Dividends on preferred stock | (1,093 | ) | (1,131 | ) | ||||
| Repurchase of common stock under Repurchase Program | (25,228 | ) | (8,241 | ) | ||||
| Repurchase of common stock under Repurchase Program - related party | (24,862 | ) | — | |||||
| Shares exchanged for tax withholdings | (2,022 | ) | (1,411 | ) | ||||
| Other | — | (2 | ) | |||||
| Net cash used in financing activities | (55,158 | ) | (14,830 | ) | ||||
| Net change in cash and cash equivalents | 1,987 | 3,056 | ||||||
| Cash and cash equivalents at beginning of period | 1,233 | 5,269 | ||||||
| Cash and cash equivalents at end of period | $ | 3,220 | $ | 8,325 | ||||
Page 10
Consolidated Statement of Cash Flows: Nine months ended September 30, 2024
(In thousands)
(Unaudited)
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 11,856 | $ | 1,225,185 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depletion, depreciation and amortization | 241,401 | 238,747 | ||||||
| Impairment of oil and natural gas properties | 30,487 | — | ||||||
| Loss on debt extinguishment | 13,388 | — | ||||||
| Net gain on derivative instruments | (74,487 | ) | (514,266 | ) | ||||
| Net cash receipts on settled derivative instruments | 240,941 | 101,947 | ||||||
| Deferred income tax expense (benefit) | 3,433 | (554,741 | ) | |||||
| Stock-based compensation expense | 8,410 | 7,403 | ||||||
| Other, net | 4,509 | 5,867 | ||||||
| Changes in operating assets and liabilities, net | 21,247 | 57,538 | ||||||
| Net cash provided by operating activities | 501,185 | 567,680 | ||||||
| Cash flows from investing activities: | ||||||||
| Additions to oil and natural gas properties | (376,910 | ) | (421,132 | ) | ||||
| Proceeds from sale of oil and natural gas properties | — | 2,647 | ||||||
| Other, net | (2,141 | ) | (1,496 | ) | ||||
| Net cash used in investing activities | (379,051 | ) | (419,981 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Principal payments on Credit Facility | (825,000 | ) | (748,000 | ) | ||||
| Borrowings on Credit Facility | 737,000 | 698,000 | ||||||
| Issuance of 2029 Senior Notes | 650,000 | — | ||||||
| Early retirement of 2026 Senior Notes | (524,298 | ) | — | |||||
| Premium paid on 2026 Senior Notes | (12,941 | ) | — | |||||
| Debt issuance costs and loan commitment fees | (14,820 | ) | (6,965 | ) | ||||
| Dividends on preferred stock | (3,293 | ) | (3,718 | ) | ||||
| Repurchase of common stock under Repurchase Program | (64,021 | ) | (62,326 | ) | ||||
| Repurchase of common stock under Repurchase Program - related party | (39,864 | ) | (20,431 | ) | ||||
| Shares exchanged for tax withholdings | (23,606 | ) | (3,191 | ) | ||||
| Other | — | (2 | ) | |||||
| Net cash used in financing activities | (120,843 | ) | (146,633 | ) | ||||
| Net change in cash and cash equivalents | 1,291 | 1,066 | ||||||
| Cash and cash equivalents at beginning of period | 1,929 | 7,259 | ||||||
| Cash and cash equivalents at end of period | $ | 3,220 | $ | 8,325 | ||||
Page 11
Updated 2024E Guidance
Gulfport's 2024 guidance assumes commodity strip prices as of October 18, 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) | 1,055 | 1,070 | ||||||
| % 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) | $ | (5.50 | ) | $ | (6.50 | ) | ||
| 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 | ||||||||
| (in millions) | ||||||||
| Capital expenditures (incurred) | ||||||||
| D&C | $ | 325 | $ | 335 | ||||
| Maintenance leasehold and land | $ | 50 | $ | 60 | ||||
| Total base capital expenditures | $ | 375 | $ | 395 | ||||
| Discretionary acreage acquisitions | ~$45 | |||||||
| (1) | Recurring cash G&A includes capitalization. It excludes non-cash stock compensation and expenses related to the continued administration of our prior Chapter 11 filing. |
| (2) | This is a non-GAAP measure. Reconciliations of these non-GAAP measures and other disclosures are provided with the supplemental financial tables available on our website at www.gulfportenergy.com. |
Page 12
Derivatives
The below details Gulfport's hedging positions as of October 28, 2024:
| 4Q2024 | Full Year 2025 | Full Year 2026 | ||||||||||
| Natural Gas Contract Summary (NYMEX): | ||||||||||||
| Fixed Price Swaps | ||||||||||||
| Volume (BBtupd) | 400 | 250 | 160 | |||||||||
| Weighted Average Price ($/MMBtu) | $ | 3.77 | $ | 3.82 | $ | 3.59 | ||||||
| Fixed Price Collars | ||||||||||||
| Volume (BBtupd) | 225 | 220 | 70 | |||||||||
| Weighted Average Floor Price ($/MMBtu) | $ | 3.36 | $ | 3.37 | $ | 3.31 | ||||||
| Weighted Average Ceiling Price ($/MMBtu) | $ | 5.14 | $ | 4.23 | $ | 4.06 | ||||||
| Fixed Price Calls Sold | ||||||||||||
| Volume (BBtupd) | 202 | 193 | — | |||||||||
| Weighted Average Price ($/MMBtu) | $ | 3.33 | $ | 5.80 | $ | — | ||||||
| Rex Zone 3 Basis | ||||||||||||
| Volume (BBtupd) | 150 | 110 | 40 | |||||||||
| Differential ($/MMBtu) | $ | (0.15 | ) | $ | (0.20 | ) | $ | (0.19 | ) | |||
| Tetco M2 Basis | ||||||||||||
| Volume (BBtupd) | 230 | 230 | 130 | |||||||||
| Differential ($/MMBtu) | $ | (0.94 | ) | $ | (0.96 | ) | $ | (0.98 | ) | |||
| NGPL TX OK Basis | ||||||||||||
| Volume (BBtupd) | 70 | 40 | — | |||||||||
| Differential ($/MMBtu) | $ | (0.31 | ) | $ | (0.29 | ) | $ | — | ||||
| TGP 500 Basis | ||||||||||||
| Volume (BBtupd) | — | 10 | 10 | |||||||||
| Differential ($/MMBtu) | $ | — | $ | 0.31 | $ | 0.54 | ||||||
| Transco Station 85 Basis | ||||||||||||
| Volume (BBtupd) | — | 5 | 5 | |||||||||
| Differential ($/MMBtu) | $ | — | $ | 0.38 | $ | 0.52 | ||||||
| Oil Contract Summary (WTI): | ||||||||||||
| Fixed Price Swaps | ||||||||||||
| Volume (Bblpd) | 500 | 2,000 | — | |||||||||
| Weighted Average Price ($/Bbl) | $ | 77.50 | $ | 74.50 | $ | — | ||||||
| Fixed Price Collars | ||||||||||||
| Volume (Bblpd) | 1,000 | — | — | |||||||||
| Weighted Average Floor Price ($/Bbl) | $ | 62.00 | $ | — | $ | — | ||||||
| Weighted Average Ceiling Price ($/Bbl) | $ | 80.00 | $ | — | $ | — | ||||||
| NGL Contract Summary: | ||||||||||||
| C3 Propane Fixed Price Swaps | ||||||||||||
| Volume (Bblpd) | 2,500 | 2,000 | — | |||||||||
| Weighted Average Price ($/Bbl) | $ | 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 tools 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 net income (loss) less non-cash derivative loss (gain), impairment of oil and natural gas properties, non-recurring general and administrative expenses comprised of expenses related to the continued administration of our prior Chapter 11 filing, stock-based compensation expenses, restructuring costs, loss on debt extinguishment, other items which include items related to our Chapter 11 filing and other non-material expenses and the tax effect of the adjustments to net income.
Adjusted EBITDA is a non-GAAP financial measure equal to net income (loss), the most directly comparable GAAP financial measure, plus interest expense, deferred income tax expense (benefit), depreciation, depletion, amortization, impairment and accretion, 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, stock-based compensation, restructuring costs, loss on debt extinguishment 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, capitalized expenses incurred and capital expenditures incurred excluding discretionary acreage acquisitions. Gulfport includes an 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 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 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: Three months ended September 30, 2024
(In thousands)
(Unaudited)
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||
| Net (Loss) Income (GAAP) | $ | (13,967 | ) | $ | 608,444 | |||
| Adjustments: | ||||||||
| Non-cash derivative loss | 46,911 | 9,644 | ||||||
| Impairment of oil and natural gas properties | 30,487 | — | ||||||
| Non-recurring general and administrative expense | 33 | 700 | ||||||
| Stock-based compensation expense | 2,664 | 2,360 | ||||||
| Loss on debt extinguishment | 13,388 | — | ||||||
| Other, net(1) | 3,133 | (1,438 | ) | |||||
| Tax effect of adjustments(2) | (20,801 | ) | (554,741 | ) | ||||
| Adjusted Net Income (Non-GAAP) | $ | 61,848 | $ | 64,969 | ||||
| (1) | For the three months ended September 30, 2024, “Other, net” included approximately $3.0 million related to changes in the Company’s legal reserves for certain litigation and regulatory proceedings. |
| (2) | Deferred income taxes were approximately 22% for the three months ended September 30, 2024. For the three months ended September 30, 2023, the Company released a significant portion of its valuation allowance during the period. As a result, the Company adjusted the total impact of the deferred income tax benefit from its adjusted net income during the period. |
Page 16
Adjusted Net Income: Nine months ended September 30, 2024
(In thousands)
(Unaudited)
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||
| Net Income (GAAP) | $ | 11,856 | $ | 1,225,185 | ||||
| Adjustments: | ||||||||
| Non-cash derivative loss (gain) | 166,454 | (412,319 | ) | |||||
| Impairment of oil and natural gas properties | 30,487 | — | ||||||
| Non-recurring general and administrative expense | 1,561 | 2,435 | ||||||
| Stock-based compensation expense | 8,410 | 6,138 | ||||||
| Restructuring costs | — | 4,762 | ||||||
| Loss on debt extinguishment | 13,388 | — | ||||||
| Other, net(1,2) | 3,530 | (20,492 | ) | |||||
| Tax effect of adjustments(3) | (50,272 | ) | (554,741 | ) | ||||
| Adjusted Net Income (Non-GAAP) | $ | 185,414 | $ | 250,968 | ||||
| (1) | For the nine months ended September 30, 2024, “Other, net” included approximately $3.0 million related to changes in the Company’s legal reserves for certain litigation and regulatory proceedings. |
| (2) | For the nine months ended September 30, 2023, “Other, net” included a $17.8 million receipt of funds related to our interim claim distribution from our Chapter 11 Plan of Reorganization and a $1 million administrative payment to Rover as part of the executed settlement. For more discussion, refer to Note 1 of our consolidated financial statements included in our Quarterly Report on Form 10-Q for the nine months ended September 30, 2024. Additionally, “Other, net” included a $5.0 million recoupment of previously placed collateral for certain firm transportation commitments during our Chapter 11 filing. |
| (3) | Deferred income taxes were approximately 22% for the nine months ended September 30, 2024. For the nine months ended September 30, 2023, the Company’s effective tax rate was significantly impacted by the partial release of its valuation allowance during the third quarter of 2023. As a result, the Company adjusted the total impact of the deferred income tax benefit from its adjusted net income during the period. |
Page 17
Adjusted EBITDA: Three months ended September 30, 2024
(In thousands)
(Unaudited)
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||
| Net (Loss) Income (GAAP) | $ | (13,967 | ) | $ | 608,444 | |||
| Adjustments: | ||||||||
| Interest expense | 15,866 | 14,919 | ||||||
| Deferred income tax benefit | (3,833 | ) | (554,741 | ) | ||||
| DD&A, impairment and accretion | 113,895 | 80,144 | ||||||
| Non-cash derivative loss | 46,911 | 9,644 | ||||||
| Non-recurring general and administrative expenses | 33 | 700 | ||||||
| Stock-based compensation expense | 2,664 | 2,360 | ||||||
| Loss on debt extinguishment | 13,388 | — | ||||||
| Other, net(1) | 3,133 | (1,438 | ) | |||||
| Adjusted EBITDA (Non-GAAP) | $ | 178,090 | $ | 160,032 | ||||
| (1) | For the three months ended September 30, 2024, “Other, net” included approximately $3.0 million related to changes in the Company’s legal reserves for certain litigation and regulatory proceedings. |
Page 18
Adjusted EBITDA: Nine months ended September 30, 2024
(In thousands)
(Unaudited)
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||
| Net Income (GAAP) | $ | 11,856 | $ | 1,225,185 | ||||
| Adjustments: | ||||||||
| Interest expense | 46,027 | 42,402 | ||||||
| Deferred income tax expense (benefit) | 3,433 | (554,741 | ) | |||||
| DD&A, impairment and accretion | 273,593 | 240,864 | ||||||
| Non-cash derivative loss (gain) | 166,454 | (412,319 | ) | |||||
| Non-recurring general and administrative expenses | 1,561 | 2,435 | ||||||
| Stock-based compensation expense | 8,410 | 6,138 | ||||||
| Restructuring costs | — | 4,762 | ||||||
| Loss on debt extinguishment | 13,388 | — | ||||||
| Other, net(1,2) | 3,530 | (20,492 | ) | |||||
| Adjusted EBITDA (Non-GAAP) | $ | 528,252 | $ | 534,234 | ||||
| (1) | For the nine months ended September 30, 2024, “Other, net” included approximately $3.0 million related to changes in the Company’s legal reserves for certain litigation and regulatory proceedings. |
| (2) | For the nine months ended September 30, 2023, “Other, net” included a $17.8 million receipt of funds related to our interim claim distribution from our Chapter 11 Plan of Reorganization and a $1 million administrative payment to Rover as part of the executed settlement. For more discussion, refer to Note 1 of our consolidated financial statements included in our Quarterly Report on Form 10-Q for the nine months ended September 30, 2024. Additionally, “Other, net” included a $5.0 million recoupment of previously placed collateral for certain firm transportation commitments during our Chapter 11 filing. |
Page 19
Adjusted Free Cash Flow: Three months ended September 30, 2024
(In thousands)
(Unaudited)
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||
| Net cash provided by operating activity (GAAP) | $ | 189,698 | $ | 156,274 | ||||
| Adjustments: | ||||||||
| Interest expense | 15,866 | 14,919 | ||||||
| Non-recurring general and administrative expenses | 33 | 700 | ||||||
| Other, net(1) | 2,231 | (2,482 | ) | |||||
| Changes in operating assets and liabilities, net: | ||||||||
| Accounts receivable - oil, natural gas, and natural gas liquids sales | (5,415 | ) | 14,627 | |||||
| Accounts receivable - joint interest and other | (6,936 | ) | (5,519 | ) | ||||
| Accounts payable and accrued liabilities | (15,900 | ) | (17,175 | ) | ||||
| Prepaid expenses | (1,499 | ) | (1,329 | ) | ||||
| Other assets | 12 | 17 | ||||||
| Total changes in operating assets and liabilities, net | $ | (29,738 | ) | $ | (9,379 | ) | ||
| Adjusted EBITDA (Non-GAAP) | $ | 178,090 | $ | 160,032 | ||||
| Interest expense | (15,866 | ) | (14,919 | ) | ||||
| Capitalized expenses incurred(2) | (6,413 | ) | (5,611 | ) | ||||
| Capital expenditures incurred(3,4,5) | (83,254 | ) | (90,584 | ) | ||||
| Adjusted free cash flow (Non-GAAP) | $ | 72,557 | $ | 48,918 | ||||
| (1) | For the three months ended September 30, 2024, “Other, net” included approximately $3.0 million related to changes in the Company’s legal reserves for certain litigation and regulatory proceedings. |
| (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) | For the three months ended September 30, 2024, includes $0.8 million of non-D&C capital and excludes targeted discretionary acreage acquisitions of $19.8 million that the Company has guided to an anticipated total of approximately $45 million of discretionary acreage acquisitions in 2024. |
| (5) | For the three months ended September 30, 2023, includes $0.7 million of non-D&C capital and excludes targeted discretionary acreage acquisitions of $19.4 million. |
Page 20
Adjusted Free Cash Flow: Nine months ended September 30, 2024
(In thousands)
(Unaudited)
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||
| Net cash provided by operating activity (GAAP) | $ | 501,185 | $ | 567,680 | ||||
| Adjustments: | ||||||||
| Interest expense | 46,027 | 42,402 | ||||||
| Non-recurring general and administrative expenses | 1,561 | 2,435 | ||||||
| Restructuring costs | — | 4,762 | ||||||
| Other, net(1,2) | 726 | (25,507 | ) | |||||
| Changes in operating assets and liabilities, net: | ||||||||
| Accounts receivable - oil, natural gas, and natural gas liquids sales | (33,548 | ) | (171,673 | ) | ||||
| Accounts receivable - joint interest and other | (7,947 | ) | (9,114 | ) | ||||
| Accounts payable and accrued liabilities | 21,117 | 123,657 | ||||||
| Prepaid expenses | (850 | ) | (356 | ) | ||||
| Other assets | (19 | ) | (52 | ) | ||||
| Total changes in operating assets and liabilities, net | $ | (21,247 | ) | $ | (57,538 | ) | ||
| Adjusted EBITDA (Non-GAAP) | $ | 528,252 | $ | 534,234 | ||||
| Interest expense | (46,027 | ) | (42,402 | ) | ||||
| Capitalized expenses incurred(3) | (17,991 | ) | (16,117 | ) | ||||
| Capital expenditures incurred(4,5,6) | (332,633 | ) | (362,298 | ) | ||||
| Adjusted free cash flow (Non-GAAP) | $ | 131,601 | $ | 113,417 | ||||
| (1) | For the nine months ended September 30, 2024, “Other, net” included approximately $3.0 million related to changes in the Company’s legal reserves for certain litigation and regulatory proceedings. |
| (2) | For the nine months ended September 30, 2023, “Other, net” included a $17.8 million receipt of funds related to our interim claim distribution from our Chapter 11 Plan of Reorganization and a $1 million administrative payment to Rover as part of the executed settlement. For more discussion, refer to Note 1 of our consolidated financial statements included in our Quarterly Report on Form 10-Q for the nine months ended September 30, 2024. Additionally, “Other, net” included a $5.0 million recoupment of previously placed collateral for certain firm transportation commitments during our Chapter 11 filing. |
| (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) | For the nine months ended September 30, 2024, includes $3.7 million of non-D&C capital and excludes targeted discretionary acreage acquisitions of $38.8 million that the Company has guided to an anticipated total of approximately $45 million of discretionary acreage acquisitions in 2024. |
| (6) | For the nine months ended September 30, 2023, includes $1.7 million of non-D&C capital and excludes targeted discretionary acreage acquisitions of $24.9 million. |
Page 21
Recurring General and Administrative Expenses:
Three months ended September 30, 2024
(In thousands)
(Unaudited)
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||||||||||||||||||
| Cash | Non-Cash | Total | Cash | Non-Cash | Total | |||||||||||||||||||
| General and administrative expense (GAAP) | $ | 7,815 | $ | 2,664 | $ | 10,479 | $ | 7,534 | $ | 2,360 | $ | 9,894 | ||||||||||||
| Capitalized general and administrative expense | 5,183 | 1,312 | 6,495 | 4,496 | 1,162 | 5,658 | ||||||||||||||||||
| Non-recurring general and administrative expense | (33 | ) | — | (33 | ) | (700 | ) | — | (700 | ) | ||||||||||||||
| Recurring general and administrative before capitalization (Non-GAAP) | $ | 12,965 | $ | 3,976 | $ | 16,941 | $ | 11,330 | $ | 3,522 | $ | 14,852 | ||||||||||||
Page 22
Recurring General and Administrative Expenses:
Nine months ended September 30, 2024
(In thousands)
(Unaudited)
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
| Cash | Non-Cash | Total | Cash | Non-Cash | Total | |||||||||||||||||||
| General and administrative expense (GAAP) | $ | 22,019 | $ | 8,410 | $ | 30,429 | $ | 21,100 | $ | 6,138 | $ | 27,238 | ||||||||||||
| Capitalized general and administrative expense | 14,388 | 4,142 | 18,530 | 13,163 | 3,023 | 16,186 | ||||||||||||||||||
| Non-recurring general and administrative expense | (1,561 | ) | — | (1,561 | ) | (2,435 | ) | — | (2,435 | ) | ||||||||||||||
| Recurring general and administrative before capitalization (Non-GAAP) | $ | 34,846 | $ | 12,552 | $ | 47,398 | $ | 31,828 | $ | 9,161 | $ | 40,989 | ||||||||||||
Page 23