Nicholas Pope

Nicholas Pope inquired about the total water disposal capacity across the basin and Chord Energy's comfort level with it in the near term.

Answer

CEO Danny Brown confirmed that total disposal capacity in the basin is "totally fine," but it's more localized than oil or gas export capacity, necessitating some ongoing capital spend to bring disposal closer to wellbores. This is already factored into economics.

Nicholas Pope asked about water disposal optimization, the uptick in midstream spend for water disposal in 2026, and if anything has materially changed with field-level water production or total basin disposal capacity.

Answer

Chief Strategy Officer and Chief Commercial Officer Michael Lou explained that moving into lower GOR areas (western acreage) results in slightly higher water production. He noted that while oil/gas midstream is mature, water systems are more localized, requiring some capital investment to bring disposal closer to wellbores to boost E&P returns. CEO Danny Brown confirmed overall disposal capacity is "totally fine," but its localized nature necessitates ongoing capital spend.

Nicholas Pope asked about the $100 million discretionary acreage acquisitions program, its expected completion in Q1, and Gulfport Energy's future strategy for acreage acquisitions beyond this current push. He also inquired about the data collection efforts for Marcellus North, specifically what data is needed, what information is already available, and how it helps de-risk future potential.

Answer

President and CEO John Reinhart expressed pride in the acreage acquisition program, highlighting substantial inventory growth (40% gross locations since 2023) and the high quality of the acquired acreage. He views it as a favorable investment and will communicate future plans after the Q1 completion. EVP and COO Matthew Rucker stated that Marcellus North data collection (sidewall cores, logging, tests) is for proper frac design, not expecting significant differences from the southern Marcellus. John Reinhart clarified it's more of a 'production mix test' to understand production profiles and pressures, informing midstream infrastructure and processing agreements for full development, rather than a delineation effort.

Nicholas Pope inquired about Gulfport Energy's future plans for acreage acquisitions beyond the current $100 million program concluding in Q1, specifically if the company intends to re-up or continue such programs. He also asked about the data collection efforts for the Marcellus North development, including what data is needed, current status, and existing information to de-risk the potential.

Answer

John Reinhart, President and Chief Executive Officer, expressed pride in the current acreage acquisition program's success, highlighting substantial inventory growth and high-quality acreage as a high-value use of free cash flow, and indicated the company would communicate future plans for similar investments. Matthew Rucker, Executive Vice President and Chief Operating Officer, clarified that sidewall cores, logging, and tests for Marcellus North are for proper frac design, not delineation, as the acreage is already de-risked. John Reinhart added that the primary goal is to understand production mix, profile, and pressures to design midstream infrastructure for full development.

Nicholas Pope inquired about the performance of the Delhi Field following the cessation of third-party CO2 purchases, specifically how the asset performs with only recycled CO2 injection. He also asked if production volumes are expected to return to the 600 barrels per day rate and sought clarification on the allocation of the $4.5 million spent on Haynesville minerals between fiscal Q2 and Q3.

Answer

Mark Bunch, Chief Operating Officer, stated that it's difficult to quantify the exact impact due to facility issues and summer heat affecting injectivity. He emphasized that the field remains very profitable even with reduced rates because of significantly lower operating costs from not purchasing CO2. Kelly Loyd, President and CEO, added that the full results of relying on 84% recycled CO2 and increased water injection are yet to be seen, especially with a compressor down for the entire quarter. Ryan Stash, Senior Vice President, Chief Financial Officer and Treasurer, clarified that the majority of the $4.5 million CapEx for Haynesville minerals, approximately $4 million, would be recognized in fiscal Q3, with less than $1 million spent at the very end of fiscal Q2.

Nicholas Pope asked about the performance of the Delhi Field after ceasing third-party CO2 purchases, specifically if production volumes are expected to return to 600 barrels per day, and sought clarification on the allocation of the $4.5 million spent on Haynesville minerals between fiscal Q2 and Q3.

Answer

Mark Bunch, Chief Operating Officer, explained that quantifying Delhi's performance is difficult due to compressor downtime and summer heat, but emphasized increased profitability from reduced CO2 purchase costs. Kelly Loyd, President and CEO, added that the full impact of increased water injection is still unclear. Ryan Stash, Senior Vice President, Chief Financial Officer and Treasurer, clarified that the majority of the $4.5 million spent on Haynesville minerals would be recognized in fiscal Q3, with less than $1 million in fiscal Q2.