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, record-setting field performance, and positive free cash flow despite volatile commodity prices.

• Generated $123.5 million in operating cash flows and repurchased 160,622 shares for $25.0 million during Q2 2024.

• 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.

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.

• Capital expenditures were $122.2 million in Q2 2024, below analyst consensus.

• Liquidity at June 30, 2024, totaled $707.4 million, with leverage at 0.97x net debt to TTM adjusted EBITDA.

• Repurchased $461.2 million in common stock as of July 29, 2024, reducing shares outstanding by 16% since March 2022.

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, plus $50–$60 million for leasehold and land.

• Forecasting over $25 million in capital expenditure savings from operating efficiencies in 2024.

• Plan to allocate ~$45 million to discretionary acreage acquisitions, with $19.0 million deployed in Q2.

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