Gulfport Energy's Q1 2025 Earnings Call: Unraveling Contradictions in Capital Strategy and Gas Production Outlook

Capital efficiency and front-loaded capital programs, gas production outlook for 2026, liquids production strategy, focus on dry gas vs liquids development, capital expenditure efficiency and savings are the key contradictions discussed in Gulfport Energy's latest 2025Q1 earnings call.



Strong Operational Performance:
- Gulfport Energy reported adjusted EBITDA of approximately $218 million and adjusted free cash flow of $36.6 million for Q1 2025, exceeding internal expectations.
- This performance was driven by strong realized pricing and operational efficiencies.

Production and Cost Management:
- The company's average daily production totaled 929 million cubic feet equivalent per day, aligning with expectations.
- Operational cost management led to a decline in fixed charges, with cash operating costs expected to decline throughout the year.

Capital Allocation and Shareholder Returns:
- Gulfport repurchased 60 million shares at attractive prices and has returned approximately 17% of its share count through buybacks.
- The company plans to return substantially all adjusted free cash flow to shareholders through share repurchases.

Natural Gas Growth Strategy:
- Gulfport plans a 20% growth in natural gas volumes by the fourth quarter of 2025, driven by a shift in capital allocation towards natural gas drilling.
- This strategic shift is in response to favorable macroeconomic conditions and market dynamics.