GULFPORT ENERGY CORP (GPOR)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 delivered solid operational and cash results with adjusted EBITDA of $202.8M and adjusted free cash flow of $125.2M, while GAAP results showed a net loss of $273.2M driven by a non‑cash impairment under SEC pricing; total net production was 1.06 Bcfe/d and liquids rose 7% QoQ and 13% YoY .
• 2025 outlook targets a >30% liquids production increase to 18.0–20.5 MBbl/d on flat total Bcfe, with base capex of $370–$395M and per‑foot D&C capital ~20% lower YoY; management intends to return substantially all 2025 adjusted FCF via buybacks .
• Cost performance remained strong (cash operating costs $1.19/Mcfe in Q4), and a new Marcellus midstream agreement supports enhanced NGL realizations; management highlighted hedging that secures downside while preserving upside via collars .
• Capital returns were active with $80.1M repurchases (491k shares) in Q4; authorization stands at $1.0B with ~$406.8M remaining capacity as of 2/20/25 .

What Went Well and What Went Wrong

What Went Well

• Adjusted EBITDA ($202.8M) and adjusted free cash flow ($125.2M) were strong, helped by liquids uplift, robust realized pricing ($3.36/Mcfe incl. hedges), and operating cost excellence; CFO: “Needless to say, it was an outstanding quarter” .
• Liquids strategy gaining traction: liquids production up 7% QoQ to 16.2 MBbl/d, with 2025 development targeting Utica lean condensate and Marcellus to drive >30% liquids growth .
• Efficiency gains: 2025 D&C capital per foot expected ~20% lower; 2024 saw +10% drilling footage/day and +25% completion hours/day improvements in Utica .

What Went Wrong

• GAAP net loss of $273.2M in Q4 due to non‑cash impairment tied to SEC pricing (Henry Hub $2.13/MMBtu), despite strong non‑GAAP performance .
• Proved reserves decreased ~6% YoY primarily from price revisions, even as extensions/discoveries and performance revisions were positive .
• Management expects slightly higher 2025 per‑unit LOE and midstream costs ($1.20–$1.29/Mcfe) due to liquids‑weighted activity, though margin uplift more than offsets .

Financial Results

GAAP (YoY) – Revenue and EPS

Non‑GAAP (Sequential) – P&L and Cash Metrics

Unit Economics and Realizations

Production KPIs

Segment Breakdown (Q4 2024)

Notes:

• EBITDA Margin (Adj. EBITDA / Total Revenues) Q4 2024 ≈ 84.6% (derived from and ); YoY comparison is not meaningful due to large derivative gains in Q4 2023 affecting revenues .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “The 2025 development program…will allow us to maintain flat total production…while substantially growing the company’s expected liquids production by 30% year‑over‑year” – CEO John Reinhart .
• “Adjusted free cash flow…has the potential to more than double compared to 2024” – CFO Michael Hodges .
• “We now expect our 2025 Utica per well cost to be below $900 per foot of lateral or ~10% lower than full year 2024” – CEO John Reinhart .
• “We reached an agreement…for the gathering, processing and fractionation of our Marcellus development…enhancing…economics” – CFO Michael Hodges .

Q&A Highlights

• Liquids sustainability: Management views 30% liquids growth as sustainable, with mix flex across windows; bolt‑on preference for undeveloped inventory to leverage operating prowess .
• Capital cadence/efficiency: Front‑loaded capex remains a norm to maximize capital efficiency and cash flow timing .
• Capital allocation: Free cash flow primarily returned via buybacks; inorganic opportunities must clear high bars versus repurchases/inventory adds .
• Lake VII learnings: Higher rates tested post‑120 days; encouraging results will inform Utica condensate development type curves .
• 2025 per‑unit costs: Slightly higher LOE/midstream with liquids tilt, offset by stronger margins; hedge structure retains upside .

Estimates Context

• S&P Global consensus estimates for Q4 2024 EPS, revenue, and EBITDA were unavailable due to data access limits during retrieval. As a result, explicit consensus comparison cannot be provided at this time (Values retrieved from S&P Global)*.
• The company reported multiple items “above analyst consensus expectations,” including adjusted EBITDA and adjusted net income in Q4, and capex below consensus, but did not disclose the Street numbers; this limits precision in quantifying the beat/miss .

Key Takeaways for Investors

• Liquids‑weighted development is the key 2025 catalyst: >30% liquids growth on flat Bcfe should expand margins and cash generation despite modest per‑unit cost increases .
• Strong non‑GAAP cash performance versus GAAP optics: impairment under SEC pricing drove Q4 GAAP loss; adjusted EBITDA/free cash flow trajectory and hedging program support valuation resilience .
• Capital efficiency and well‑mix optimization are material: ~20% YoY per‑foot D&C cost reduction and midstream enhancements in Marcellus should lift returns and NGL realizations .
• Buybacks remain priority use of cash: ~$80M repurchased in Q4 and ~$406.8M authorization capacity remaining; management reiterates returning substantially all adjusted FCF .
• Operational flexibility is a differentiator: ability to pivot between Utica dry gas, lean condensate, Marcellus, and SCOOP provides optionality against commodity volatility .
• Watch basis/realizations and LNG corridor exposure: diverse FT portfolio and Gulf Coast delivery provide premium pricing; collars preserve upside into an improving gas macro .
• Near‑term trading lens: narrative favors liquids‑led cash flow acceleration and capital returns; potential upside catalysts include continued condensate pad performance, Marcellus TILs under new midstream agreement, and gas price improvements .

Citations:
Press releases and 8‑K exhibits:
Q4 2024 earnings call transcript:
Q3 2024 materials:
Q2 2024 materials:

Disclaimer: S&P Global consensus estimates were not retrievable at the time of analysis; where estimates are referenced qualitatively, explicit numeric comparisons are unavailable (Values retrieved from S&P Global)*.