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- **Inventory Expansion**: Ohio Marcellus inventory doubled, adding 120-130 gross locations, and U-development unlocked 20 gross wells, extending net inventory to 15 years.
- **Financial Strength**: Completed $31.3 million preferred stock redemption, repurchased $76.3 million in Q3, and plan $125 million in Q4 buybacks, maintaining <1x leverage.
- **Operational Excellence**: Adjusted EBITDA of $213 million, free cash flow of $103 million, and all-in realized price $0.30/Mcfe above NYMEX.
- **Growth Catalysts**: 2025 capital allocation includes $30 million for U-development and $35 million to mitigate 2026 midstream impacts, with 2026 guidance to be announced in February.
- **Shareholder Returns**: Returned $785 million to shareholders since 2022, with 2025 buybacks expected to exceed $325 million.

**【CEO Summary Section】**
- Gulfport achieved a 15% year-over-year increase in revenue, driven by North American market recovery and strategic inventory additions.
- Expanded Ohio Marcellus inventory by 200%, adding 120-130 gross locations with no incremental land cost.
- Validated U-development feasibility with 2 successful wells, unlocking 20 gross locations and enhancing dry gas inventory.
- Total gross undeveloped inventory increased by 40% since 2022, now at ~100 gross locations, with net inventory extended to 15 years.
- Completed redemption of $31.3 million preferred stock, simplifying capital structure, and announced $125 million in Q4 share buybacks.
- 2025 capital allocation includes $30 million for U-development and $35 million to mitigate 2026 midstream impacts.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $213 million and free cash flow of $103 million in Q3, with net cash from operations exceeding capital expenditures.
- All-in realized price of $3.37/Mcfe, outperforming NYMEX by $0.30, driven by differentiated marketing and firm transportation agreements.
- Financial leverage at 0.81x, liquidity of $903 million, and borrowing base reaffirmed at $1.1 billion.
- Repurchased 438,000 shares in Q3, totaling $76.3 million, with cumulative buybacks of $785 million since 2022.
- Maintained strong balance sheet, with plans to allocate $325 million to share buybacks in 2025.

**【Q&A Key Highlights】**
- **Well Performance**: U-development wells achieved 60%+ IRR, with production results aligned with type curves. Marcellus North delineation expected to begin in early 2026.
- **Capital Allocation**: Prioritized inventory expansion over M&A, with high returns on organic opportunities (e.g., $100 million+ in 2023-2025).
- **Production Shape**: Front-loaded capital program expected to mitigate 2026 midstream constraints, with Q4 2025 activity supporting 2026 volumes.
- **NGL Marketing**: New midstream agreement in Marcellus yielded strong NGL recoveries, with wet gas Utica wells also outperforming expectations.
- **Strategic Flexibility**: Maintained financial flexibility to capitalize on future opportunities, including $903 million in liquidity.


Gulfport Energy Corporation (GPOR) Q3 2025 Earnings Call Transcript

- **$100M Acreage Investment**: Expanding Utica Shale inventory with high-return wet gas locations.
- **$1.5B Share Buyback Expansion**: Accelerating equity returns amid undervaluation.
- **Preferred Stock Redemption**: Simplifies capital structure, freeing $379M for buybacks.
- **Q2 Financial Strength**: $212M EBITDA, $64.6M free cash flow, and 0.85x net leverage.
- **Operational Excellence**: Kage pad outperforms by 65%, wet gas pads generate 30%+ revenue premium.
- **2025 Cash Tax Efficiency**: <5% of free cash flow due to NOL benefits.

**【CEO Summary Section】**
- Announced $100 million in discretionary acreage acquisitions for the Utica Shale, targeting 2+ years of inventory runway.
- Increased share repurchase authorization to $1.5 billion, with $65 million repurchased in Q2.
- Redeeming all outstanding preferred stock to simplify capital structure and accelerate equity buybacks.
- Q2 production reached 1.006 Bcfe/d (+8% QoQ), despite 40 MMcf/d midstream impacts.
- Kage pad in Utica condensate zone outperformed expectations, generating 65% more oil than the Lake pad.
- Wet gas development in Northwest Belmont County achieved 30% higher revenue than dry gas at current commodity prices.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $212 million, free cash flow of $64.6 million, and operating cash flow of $198 million.
- Preferred stock redemption could retire 2.2 million shares, equivalent to 10% of diluted share count.
- Liquidity of $885 million supports aggressive capital allocation.
- 2025 cash tax position expected to be negligible (<5% of free cash flow).

**【Q&A Key Highlights】**
- **Acreage Spend**: $75-100 million for 40-50 wells in Belmont County and Northern Monroe County, targeting low-breakeven wet gas.
- **Preferred Redemption**: 30-day holder decision period; Gulfport will use revolver if needed, with free cash flow to deleverage post-transaction.
- **Leverage Target**: 1x by late 2025/early 2026, with focus on equity buybacks and inventory growth.
- **Kage Pad Success**: 120-day performance 65% better than Lake pad, reinforcing wet gas value.
- **SCOOP Activity**: 2-well pad completed with 70%+ IRR, but capital-intensive compared to Utica.
- **Power Contracts**: Exploring in-basin demand opportunities, likely through intermediaries due to size constraints.
- **2026 Outlook**: Front-loaded capital program, flat to +5% production growth, focusing on gas-weighted wells.

Gulfport Energy Corporation (GPOR) Q2 2025 Earnings Call Transcript

- **Q1 Production Beats Expectations**: 929 MMcfe/d, on track for 20% natural gas volume growth by Q4 2025.
- **Strategic Shift to Dry Gas**: Deferred Marcellus pad to 2026, prioritizing 4-well Utica pad to capitalize on gas price outlook.
- **Financial Strength**: $218M EBITDA, $36.6M free cash flow, 0.9x net leverage, $906M liquidity.
- **Share Buybacks**: $60M in Q1, $356M remaining under $1B program, with 17% share count reduction since inception.
- **Operational Excellence**: 28% YoY drilling efficiency improvement, Cage Pad outperforming Lake VII by doubling early production rates.
- **2026 Outlook**: Potential dry gas growth, cautious on liquids-heavy drilling, evaluating pipeline expansion opportunities.

**【CEO Opening Remarks】**
- Q1 2025 production of 929 MMcfe/d aligned with expectations, on track for full-year guidance of 1.04-1.065 MMcfe/d.
- Shifted 2025 capital allocation to prioritize 4-well dry gas Utica pad, deferring a 4-well Marcellus pad to 2026 to capitalize on natural gas price outlook.
- Achieved $0.45/Mcfe premium to NYMEX Henry Hub, driven by strong marketing and liquids portfolio.
- Reaffirmed full-year guidance for 20% natural gas volume growth by Q4 2025.
- Completed 13 gross wells in Q1, including 7 Utica, 4 Marcellus, and 2 SCOOP, with 1 rig remaining in Ohio for 2025.
- Cage Pad in Southwest Harrison County outperformed Lake VII Pad with early production rates nearly double, due to optimized frac design and managed pressure flowback strategy.
- Drilling efficiency improved 28% YoY, with spud-to-rig-release days down 30%.

**【CFO Financial Commentary】**
- Adjusted EBITDA: $218M (Q1 2025), Adjusted Free Cash Flow: $36.6M.
- Operating costs: $1.31/Mcfe (Q1), expected to decline to $1.20-1.29/Mcfe for full year.
- All-in realized price: $4.11/Mcfe, 12% premium to NYMEX.
- Net cash from operations: $207M, supporting $335-355M D&C capex guidance.
- Share repurchases: 341K shares ($60M) in Q1, total $356M remaining under $1B program.
- Balance sheet: $906M liquidity, 0.9x trailing 12-month net leverage.

**【Q&A Highlights】**
- **Capital Allocation**: CEO emphasized flexibility to shift towards dry gas drilling due to oil price volatility, with 2025 capex 75% front-loaded.
- **A&D Strategy**: No Q1 acreage spend, but evaluating opportunities in dry and wet gas areas with attractive economics.
- **Drilling Efficiency**: Utica D&C costs below $900/foot, with continuous improvements in frac performance (e.g., 105-hour continuous pumping on a dry gas pad).
- **2026 Outlook**: CEO hinted at potential dry gas growth, noting constructive macro for natural gas and cautious approach to liquids-heavy drilling.
- **Pipeline Expansion**: CFO stated willingness to evaluate FTE projects if they improve netbacks, leveraging Gulfport's uncommitted volumes.
- **Hedging Strategy**: Maintained strategic approach, with collar positions to protect gas price upside while preserving liquidity for growth.


Gulfport Energy (GPOR)-7 May 25-2025 Q1 Earnings call transcript

- **30%+ Liquids Growth**: 2025 liquids production to surge 30% YoY via focus on Utica lean condensate and Marcellus development.
- **$400M+ Free Cash Flow**: 2025 free cash flow >$200M, with >$400M allocated to share buybacks and strategic acreage.
- **Cost Efficiency**: 20% per-foot D&C cost reduction, 9%+ drilling cycle time improvement, and 10%+ well cost savings.
- **Gas Hedge Flexibility**: 50% of 2025 gas production hedged at $3.62/MMBtu floor, 40% in collars to participate in upside >$4/MMBtu.
- **Balance Sheet Strength**: <1x net leverage, $900M liquidity, no debt maturities until 2027.

**【CEO Opening Remarks】**
- Gulfport's 2025 development program targets flat total production while growing liquids production by 30% YoY, driven by focus on Utica lean condensate and Marcellus condensate windows.
- 2025 capital spend projected at $370M-$395M, with 75% of drilling/completion capital allocated to Q1-Q2.
- Drilling and completion costs per foot of lateral reduced by 20% YoY, enabled by operational efficiencies and well mix optimization.
- Free cash flow expected to more than double 2024 levels, with ~$400M-$500M allocated to share buybacks.

**【CFO Financial Highlights】**
- 2024 adjusted free cash flow: $125M/Q4, $42M hedging gain, total repurchases of 5.6M shares (17% reduction in share count).
- 2025 free cash flow forecast: >$200M, driven by flat production, higher liquids weighting, and improved midstream contracts.
- Balance sheet strength: $900M liquidity, <1x net leverage, no debt maturities until 2027.
- 2025 operating costs: $1.20-$1.29/Mcfe, reflecting liquids-rich mix but offset by margin improvements.

**【Q&A Key Takeaways】**
- Liquids growth sustainability: 30%+ YoY target achievable through 2025, with flexibility to pivot to gas if macro shifts.
- Capital allocation: ~$400M-$500M free cash flow to be used for share buybacks and strategic acreage additions.
- Utica development: Managed pressure testing shows potential for higher initial rates without compromising long-term well performance.
- Marcellus midstream: New contract enables NGL extraction, enhancing liquids margin upside.
- 2026 outlook: Positioning for gas price recovery with 50% of 2025 gas production hedged at $3.62/MMBtu floor, 40% in collar structures to capture upside above $4/MMBtu.

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