Gulfport Energy Corporation reports financial and operating results for the three and twelve months ended December 31, 2024 and provides its 2025 outlook.

"Building on our momentum from last year, the 2025 development program reflects significant efficiency gains that we expect will allow us to increase operated activity while maintaining total base capital invested and improve our annual operated D&C capital per foot of completed lateral by approximately 20% when compared to 2024. The 2025 plan highlights our transition from delineation to development mode in the Marcellus and includes development targeting the Utica lean condensate acreage recently acquired through our discretionary acreage acquisitions. We forecast this activity to deliver total net liquids production growth of over 30% year over year, increasing our liquids production, as a percent of total production, to double digits and positioning the Company to capture a significant increase in expected adjusted free cash flow generation while maintaining exposure to an improving natural gas environment. The Company plans to remain consistent in our adjusted free cash flow allocation framework and will continue to return substantially all of our 2025 adjusted free cash flow, excluding discretionary acreage acquisitions, through common stock repurchases," commented John Reinhart, President and CEO.

Fourth Quarter 2024

• Delivered total net production of 1.06 Bcfe per day
• Produced total net liquids production of 16.2 MBbl per day, an increase of 7% over third quarter 2024 and 13% over fourth quarter 2023
• Incurred capital expenditures, excluding discretionary acreage acquisitions, of $56.3 million, below analyst consensus expectations
• Reported $273.2 million of net loss, $85.4 million of adjusted net income and $202.8 million of adjusted EBITDA, above analyst consensus expectations
• Generated $148.8 million of net cash provided by operating activities and $125.2 million of adjusted free cash flow 
• Closed on opportunistic discretionary acreage acquisitions totaling $6.0 million
• Repurchased 491 thousand shares of common stock for approximately $80.1 million

Full Year 2024 and Recent Highlights

• Delivered total net production of 1.05 Bcfe per day
• Produced total net liquids production of 14.4 MBbl per day
• Incurred capital expenditures, excluding discretionary acreage acquisitions, of $385.3 million, below analyst consensus expectations
• Reported $261.4 million of net loss, $282.5 million of adjusted net income and $731.1 million of adjusted EBITDA, above analyst consensus expectations
• Generated $650.0 million of net cash provided by operating activities and $256.8 million of adjusted free cash flow
• Maintained a strong balance sheet and low financial leverage, with liquidity at December 31, 2024 totaling $899.7 million
• Expanded common stock repurchase authorization by 54% percent to a total of $1.0 billion, with approximately $406.8 million remaining
• Returned substantially all full-year adjusted free cash flow, excluding discretionary acreage acquisitions, to shareholders by repurchasing 1.2 million shares of common stock for approximately $184.5 million
• Allocated $44.8 million toward discretionary acreage acquisitions, expanding high-quality resource base and adding over a year of Utica liquids-rich inventory at current development pace
• Achieved significant operational efficiencies in the Utica, with average drilling footage per day and completion hours pumped per day improving by approximately 10% and 25% year-over-year, respectively

Full Year 2025 Outlook

• Optimized development program and portfolio allocation expected to drive capital efficiencies and deliver strong corporate margins
• Estimate net daily liquids production increase of over 30% compared to full year 2024, with a range of 18.0 to 20.5 MBbl per day
• Expect to deliver flat year-over-year net daily equivalent production with a range of 1.04 Bcfe to 1.065 Bcfe per day
• Full-year drilling and completion capital per foot of completed lateral expected to decrease by approximately 20% when compared to full year 2024, including approximately 10% well cost reductions
• Plan to invest total base capital expenditures of $370 million to $395 million, including $35 million to $40 million on maintenance leasehold and land investment
• Plan to continue to allocate substantially all adjusted free cash flow, excluding acquisitions, toward common share repurchases

Reinhart continued, "Gulfport's 2024 development program delivered attractive results highlighted by our high-quality resource base and the continued improvement of operating efficiencies leading to strong financial results for the full year. We repurchased approximately 7% of our total common shares outstanding through our ongoing stock repurchase program while maintaining a strong balance sheet and continuing accretive inventory additions in the Utica liquids-rich window, adding over a year of largely lean condensate inventory. After adjusting for adjusted free cash flow utilized for discretionary acreage acquisitions, the Company allocated substantially all of our adjusted free cash flow to repurchasing our common stock during 2024, returning approximately 96% of our adjusted free cash flow to shareholders throughout the year."

Production

Gulfport’s net daily production for the full year of 2024 averaged 1.05 Bcfe per day, primarily consisting of 841.7 MMcfe per day in the Utica and Marcellus and 212.4 MMcfe per day in the SCOOP. For the full year of 2024, Gulfport’s net daily production mix was comprised of approximately 92% natural gas, 6% natural gas liquids ("NGL") and 2% oil and condensate.

Estimated Proved Reserves

Gulfport reported year end 2024 total proved reserves of 4.0 Tcfe, consisting of 3.4 Tcf of natural gas, 22.1 MMBbls of oil and 80.1 MMBbls of natural gas liquids. Gulfport’s year end 2024 total proved reserves decreased approximately 6% when compared to its 2023 total proved reserves, largely a result of downward revisions associated with commodity price changes.