Gulfport Energy (GPOR) Q2 2024 earnings summary

Executive summary

• Net production averaged 1,050.1 MMcfe per day in Q2 2024, with 92% natural gas, 6% NGL, and 2% oil and condensate, driven by development in Utica/Marcellus.

• Achieved strong operational execution, maximizing free cash flow, lowering costs, and prioritizing share repurchases and discretionary acreage acquisitions.

• Multi-basin portfolio provides diversification, capital allocation flexibility, and over 12 years of inventory at attractive returns.

• Committed to ESG excellence, operational efficiency, and returning capital to shareholders through significant stock repurchases.

• Exited Q2 2024 with total liquidity of $707.4 million.

Financial highlights

• Q2 2024 adjusted EBITDA was $164.4 million and adjusted free cash flow was $20.2 million.

• Q2 2024 revenues were $181.1 million, down from $304.7 million in Q2 2023, primarily due to lower realized commodity prices.

• Net cash from operating activities before working capital changes was $149 million, exceeding capital expenditures for the quarter.

• All-in realized price was $2.93 per Mcfe, 55% above NYMEX Henry Hub, aided by hedging and liquids uplift.

• Lease operating expenses were $0.17/Mcfe, transportation and processing $0.91/Mcfe, and recurring cash G&A $0.12/Mcfe.

Outlook and guidance

• 2024 net production guidance narrowed to 1,055–1,070 MMcfe/day, with a flat production profile and focus on efficiency.

• 2024 drilling and completion capital expenditures estimated at $330–$360 million, with $50–$60 million for maintenance leasehold and land.

• Expect accelerating adjusted free cash flow in the second half of 2024 as commodity prices improve.

• Plan to allocate ~$45 million to discretionary acreage acquisitions in 2024, with $19 million deployed in Q2.

• Substantially all 2024 adjusted free cash flow, after acquisitions, to be used for share repurchases.