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GULFPORT ENERGY CORP (GPOR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered stronger profitability with net income of $184.5M and adjusted free cash flow of $64.6M despite ~40 MMcfe/d midstream outages; adjusted EBITDA was $212.3M .
  • Management expanded the stock repurchase authorization by 50% to $1.5B and announced the redemption of all Series A Convertible Preferred Stock; completion occurred on Sept 5 with ~2.1M shares converted and $31.3M cash redemption for remaining preferreds .
  • Production rose 8% q/q to 1,006.3 MMcfe/d, with liquids up 26% q/q to 19.2 MBbl/d; full-year 2025 total net production is “trending toward the low end” of guidance due to midstream constraints .
  • Versus S&P Global consensus: EPS beat ($5.42 vs $5.20*), EBITDA beat materially on a GAAP basis* while adjusted EBITDA aligned near expectations; revenue missed ($306.2M vs $335.1M*)—a function of GAAP classification/hedge treatment. Stock rose ~4.3% AH post-release .
    Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

  • Liquids growth: total net liquids production reached 19.2 MBbl/d (+26% q/q), supporting enhanced cash flows from wet gas pads and strong Utica condensate performance .
  • Capital returns: buyback authorization expanded to $1.5B; Q2 buybacks were ~$65.0M at ~$191.80/share; capacity now ~$790.9M post-expansion (subject to preferred redemption cash usage) .
  • Strategic inventory extension: $6.9M discretionary acreage acquisitions; management targets $75–$100M additional acquisitions to extend inventory by >2 years. “We anticipate this investment will expand our high-quality, low-breakeven inventory by more than two years.” — John Reinhart, CEO .

What Went Wrong

  • Midstream outages/constraints reduced Q2 output by ~40 MMcfe/d and pushed full-year production to the low end of guidance; outages included infrastructure disruptions and processing plant issues .
  • Operating costs modestly higher: LOE rose to $0.19/Mcfe (Q2) vs $0.17/Mcfe (prior-year Q2), and TGP&C was $0.94/Mcfe vs $0.91/Mcfe (prior-year Q2) .
  • Revenue below S&P Global consensus ($306.2M vs $335.1M*) despite strong liquids contribution; underscores sensitivity to commodity realizations and GAAP classification of hedging gains. Values retrieved from S&P Global.*

Financial Results

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$185.1M*$279.7M*$338.1M*$306.2M*
Diluted EPS ($)-$1.39*-$15.34*-$0.07*$5.42*
EBITDA ($USD Millions)$61.6M*$82.2M*$77.6M*$325.6M*
EBITDA Margin (%)33.3%*29.4%*23.0%*106.3%*
EBIT ($USD Millions)-$18.1M*$27.7M*$12.0M*$250.8M*
EBIT Margin (%)-9.8%*9.9%*3.6%*81.9%*
Net Income ($USD Millions)-$26.2M*-$273.2M*-$0.5M $184.5M
Net Income Margin (%)-14.2%*-97.7%*-0.14%*60.2%*
Values retrieved from S&P Global.* Citations: Q1 and Q2 2025 net income from company releases .

Q2 2025 vs Consensus (S&P Global):

MetricActualConsensusSurprise
Primary EPS$5.42*$5.20*+$0.22*
Revenue ($USD Millions)$306.2M*$335.1M*-$28.9M (-8.6%)*
EBITDA ($USD Millions, GAAP)$325.6M*$208.5M*+$117.1M (+56.1%)*
Values retrieved from S&P Global.*

Company-Reported KPIs:

KPIQ1 2025Q2 2025
Total net production (MMcfe/d)929.31,006.3
Net liquids production (MBbl/d)15.219.2
Net cash provided by operating activities ($M)177.3231.4
Adjusted EBITDA ($M, non-GAAP)218.3212.3
Adjusted free cash flow ($M, non-GAAP)36.664.6
Incurred capital expenditures ($M)159.8124.2
Shares repurchased ($M)~60.0~65.0
LOE ($/Mcfe)$0.24$0.19
TGP&C ($/Mcfe)$0.99$0.94
Citations: .

Segment/Area Production Mix:

AreaQ1 2025 (MMcfe/d)Q2 2025 (MMcfe/d)
Utica/Marcellus731.1800.6
SCOOP198.2205.7
Citations: .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/CommentaryChange
Average daily gas equivalent (MMcfe/d)FY 20251,040–1,065 Trending toward low end due to midstream constraints Maintained; bias lower end
Average daily liquids production (MBbl/d)FY 202518.0–20.5 Liquids growth progressing; 19.2 MBbl/d in Q2 Maintained
% Gas mixFY 2025~89% Q2 mix ~88% gas, 7% NGL, 5% oil Maintained
LOE ($/Mcfe)FY 2025$0.19–$0.22 Q2 at $0.19/Mcfe Maintained
TGP&C ($/Mcfe)FY 2025$0.93–$0.97 Q2 at $0.94/Mcfe Maintained
Recurring cash G&A ($/Mcfe)FY 2025$0.12–$0.14 Q2 at $0.13/Mcfe Maintained
Operated D&C ($M)FY 2025$335–$355 No change disclosed in Q2 release Maintained
Total base capex ($M)FY 2025$370–$395 No change disclosed in Q2 release Maintained
Share repurchases authorizationThrough 2026$1.0B Expanded to $1.5B Raised
Preferred stock2025Outstanding Series A Announced redemption in Q2; completed Sept 5 (2,449 shares redeemed; 28,907 converted to ~2.1M common) Simplified capital structure

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Production trajectoryFY25 guide flat YoY; efficiency gains and liquids growth 8% q/q production increase; full-year trending low end due to midstream Improving volumes but constrained by midstream
Liquids strategyLiquids +30% YoY target in 2025 Liquids up 26% q/q; wet gas pad delivering enhanced cash flows Positive mix shift toward liquids
Capital returnsBuyback authorization $1.0B; continuous repurchases Authorization raised to $1.5B; ~$65M Q2 buybacks Accelerated returns
Inventory additions2024 additions expanded liquids-rich runway $6.9M Q2; targeting $75–$100M additional acquisitions (>2 years runway) Active organic inventory build
Midstream capacityNot highlightedOutages/constraints (~40 MMcfe/d) impacted Q2; capacity enhancements ongoing Headwind being mitigated
ESG/methane—Expanded Bridger Photonics methane detection to MidCon; sustained MiQ “A” grade Ongoing emissions reduction emphasis

Management Commentary

  • “We are pleased to announce our plans to allocate $75 million to $100 million towards targeted discretionary acreage acquisition opportunities in the coming months and anticipate this investment will expand our high-quality, low-breakeven inventory by more than two years.” — John Reinhart, CEO .
  • “To support the redemption of the preferred stock and enable the Company to continue our ongoing repurchase program, we expanded our stock repurchase authorization by 50% to $1.5 billion.” — John Reinhart, CEO .
  • “Production volumes during the quarter increased approximately 8% over the first quarter… we currently forecast our full year 2025 total net production is trending toward the low end of our guidance range.” — John Reinhart, CEO .
  • “Collaborating with Bridger Photonics to conduct routine flyovers in Appalachia has been instrumental in helping us proactively manage and reduce our methane emissions.” — Matt Rucker, COO .

Q&A Highlights

  • Analysts probed discretionary acreage spending (Belmont/Monroe Counties), power contracting opportunities, preferred stock redemption mechanics, and 2026 production/capex trajectory .
  • Participant roster included JPMorgan, Wolfe, TD Cowen, TPH, BofA, UBS, KeyBanc, per transcript listings .
  • Post-call tone: constructive on liquids-rich development and inventory extension; cautious near-term on midstream capacity timing .

Estimates Context

  • Q2 2025 EPS beat: $5.42 vs $5.20* (+$0.22), supported by strong liquids performance and disciplined costs. Values retrieved from S&P Global.*
  • Revenue missed: $306.2M vs $335.1M*, reflecting commodity price realizations and GAAP classification of hedging impacts; adjusted EBITDA ($212.3M) tracked close to consensus ($208.5M*), while GAAP EBITDA printed higher at $325.6M* due to non-GAAP adjustments . Values retrieved from S&P Global.*
  • Expect modest estimate recalibration: lower full-year volume bias to low end, but stronger liquids and continued buybacks could lift cash flow and EPS trajectories .

Key Takeaways for Investors

  • Liquids momentum and wet gas economics are driving cash flow resiliency; Q2 liquids up 26% q/q with enhanced pad performance .
  • Capital returns accelerating: $1.5B authorization and preferred redemption simplify equity and sustain buybacks; ~$790.9M remaining capacity .
  • Near-term volume risk tied to midstream projects (capacity constraints), but mitigations largely underway; full-year production biased to the low end .
  • Inventory runway extension through $75–$100M targeted acreage—raising multi-year optionality in Utica liquids-rich and Marcellus .
  • Non-GAAP vs GAAP: adjusted EBITDA ($212.3M) better aligns with Street frameworks; reconcile GAAP volatility (hedges/derivatives) when interpreting EBITDA/margins .
  • Trading lens: EPS beat and buyback expansion were positive catalysts; AH stock reaction ~+4.3% signaled investor focus on returns and inventory .
  • Medium-term thesis: liquids mix shift, cost discipline (LOE/TGP&C within guide), and balance sheet liquidity ($884.9M) support sustained FCF and repurchases .

Notes:

  • All company-reported operational and cash flow metrics come from Gulfport’s Q2 2025, Q1 2025, and Q4 2024 press releases .
  • Values retrieved from S&P Global.*