Gulfport Energy Corporation today reported financial and operating results for the three months ended June 30, 2022 and provided an update on its 2022 development plan.

Second Quarter 2022 and Recent Highlights

• Delivered total net production of 959.1 MMcfe per day
• Reported $256.6 million of net income and $204.5 million of adjusted EBITDA(1)
• Generated $129.5 million of net cash provided by operating activities and $80.3 million of free cash flow(1)
• Increased borrowing base to $1.0 billion from $850 million with a $700 million elected commitment
• Repurchased approximately 2.2 million shares of common stock for a total of $189.3 million as of July 28, 2022
• Expanded common stock repurchase program from $200 million to $300 million

"Gulfport delivered another strong quarter, driven by the continued outperformance of our historical development program and the robust productivity from our 2022 SCOOP turn in lines. We generated a significant amount of free cash flow during the first six months of 2022, allowing us to return capital to our shareholders while also maintaining our strong financial position, exiting the quarter with a conservative leverage ratio below 1.0x. We have repurchased a total of 2.2 million shares since initiating and expanding the program, decreasing our common shares outstanding by roughly 8% compared to the start of the program," commented Tim Cutt, CEO of Gulfport.

“As we enter our period of peak activity in the third quarter, the inflationary effects impacting the industry have led us to increase our capital outlook for the year. In addition, the required casing remediation we discussed in the previous quarter caused us to release our Utica frac unit and delay the completion program in 2022. After an approximately 45-day delay, we returned to executing the Utica completion program and plan to bring the next pad online in mid-August. This impacted our ability to achieve the high end of our previously provided production guidance range, despite the very strong start to the year."

"Our outlook for free cash flow remains strong with our free cash flow guidance unchanged and we continue to prioritize the return of capital to our shareholders through common stock repurchases while also evaluating all additional opportunities of return of capital. Our commitment to returning capital to shareholders is further demonstrated by the Board’s $100 million increase to the share repurchase program.”

Production

Gulfport’s net daily production for the second quarter of 2022 averaged 959.1 MMcfe per day, primarily consisting of 654.8 MMcfe per day in the Utica and 304.3 MMcfe per day in the SCOOP. For the second quarter of 2022, Gulfport’s net daily production mix was comprised of approximately 90% natural gas, 7% natural gas liquids ("NGL") and 3% oil and condensate.

Updated Full Year 2022 Guidance

Driven by inflationary effects, Gulfport has updated its forecasted capital expenditures for D&C activity and expects to invest in a range of $375 million to $405 million during 2022. In addition, based on activity to date and planned activity, Gulfport has increased its forecasted leasehold and land investment by approximately $10 million during 2022.