Gulfport Energy Corporation · NYSE:GPOR
Gulfport Energy — Q3 2024 Earnings Presentation
29 slides from Gulfport Energy's earnings presentation, Nov 6, 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertain
Slide 3: Gulfport Energy Overview
Gulfport Energy Overview Key Highlights Utica and Marcellus NYSE: GPOR YE23 Net Reservoir Acres(6): ~210,000 Market Cap : (1) $2.5 Billion YE23 Proved Reserves: 3.2 Net Tcfe 3Q24 Net Production: ~862 MMcfe/day Enterprise Value (‘EV’)(2): $3.3 Billion EV / 2025 EBITDA : (2,7) 3.9x Liquidity : (3) ~$9
Slide 4: Focused Strategy and Compelling Valuation
Focused Strategy and Compelling Valuation High Quality Asset Base • Multi-basin portfolio provides diversification and capital allocation optionality Natural Gas Weighted with • Capture value accretion through liquids-rich development in the Utica, Marcellus and SCOOP Liquids Opportunities • Low bre
Slide 5: Delivering Value For Shareholders
Delivering Value For Shareholders Common Stock Repurchase Program Common Stock Repurchases ~$481 million ~$519 million • Recently expanded common stock repurchase program authorizes purchases Available under Repurchased as of up to $1.0 billion of Gulfport outstanding shares current October 28, 2024
Slide 6: Adjusted Free Cash Flow Generation Potential
Adjusted Free Cash Flow Generation Potential 2025E – 2029E Adjusted Free Cash Flow(1,2,3) Illustration ($MM) Key Highlights $3.50 NYMEX & $70 WTI $4.00 NYMEX & $70 WTI • Sustainable free cash generation underpinned by high-quality assets ~$3.3 Billion • Meaningful adjusted free cash flow profile gen
Slide 7: Third Quarter 2024 Results
Third Quarter 2024 Results Full Year 2024 3Q2024 YTD 2024 Key Highlights Guidance Total 1,057.2 1,053.7 1,055 – 1,070 • Turned-in-line 7 gross Utica wells and 3 gross SCOOP wells, Net Production MMcfe/day MMcfe/day MMcfe/day delivering total net production of 1,057.2 MMcfe/day Incurred Capital $82.5
Slide 8: Full Year 2024 Guidance
Full Year 2024 Guidance Total Net Production Incurred Base Capital Discretionary Acreage Acquisitions Reaffirmed Reaffirmed 1,055 – 1,070 MMcfe/day Updated $375 – $395 Million ~$45 Million Focusing on liquids-rich development, Operational efficiencies reduce future Allocating ~$45 million toward acc
Slide 9: Significant Improvement in Operational Efficiencies
Significant Improvement in Operational Efficiencies Ohio Drilling and Completion Efficiencies Average Total Footage per Day Average Frac Pumping Hours Improved drilling efficiency Improved completion efficiency by ~55% since 2022 by ~50% since 2022 2022 2023 YTD 2024 2022 2023 YTD 2024 Average Plugs
Slide 10: 2024 Capital Program and Production Outlook
2024 Capital Program and Production Outlook Capital Program Production • Continuing to benefit from operating momentum and capital efficiencies • Reaffirming full year 2024 production guidance of 1,055 – 1,070 MMcfe/day • Reducing drilling and completion capital expenditures to $325 million – • Incr
Slide 11: Managed Pressure Program Yielding Higher Recoveries
Managed Pressure Program Yielding Higher Recoveries Gulfport Utica Dry Gas Well Performance(1) Key Highlights 1,000 Normalized Cumulative Well Performance per 1,000’ of Lateral • Enhances productivity by maintaining stimulated reservoir conductivity • Lowers initial well costs by decreasing facility
Slide 12: Recent Condensate Performance Providing Strong Results
Recent Condensate Performance Providing Strong Results Key Highlights Recent Condensate Well Performance • Exhibits attractive liquids production rates with minimal Lake VII Pad Daily Production History 1,200 10,000 pressure drawdown during initial 90-day period Gross Gas (Mcf/d) / Flowing Pressure
Slide 13: Utica and Marcellus Development Plan
Utica and Marcellus Development Plan ADDED Utica Key Highlights 4 Well Pad 4 Well Pad Spud: 4Q2024 • Extended Utica inventory by over 1.5 years through discretionary acreage Spud: 2Q2024 acquisitions in the liquids-rich area of the play during 2023 4 Well Pad 4 Well Pad • Prioritized for near term d
Slide 14: SCOOP Development Plan
SCOOP Development Plan Key Highlights 2 Well Pad • Targeting high return, liquids-rich development in the SCOOP Spud: 4Q2024 • Optimized unit development and well designs yielding strong recoveries • Expanding learnings and efficiency gains from Utica development to our SCOOP development program • R
Slide 15: Advantaged Firm Portfolio Provides Access to Diverse Markets
Advantaged Firm Portfolio Provides Access to Diverse Markets • Diversified and right-sized takeaway capacity • 625,000 MMBtu/d(1) of firm takeaway from the Utica • 200,000 MMBtu/d(1) of firm takeaway from the SCOOP • Strategic connectivity from wellhead provides access to premium basin egress pipeli
Slide 16: Strong Capital Structure and Financial Profile
Strong Capital Structure and Financial Profile Third Quarter 2024 Overview As of September 30, 2024 $1,000 • $3.2 million of cash equivalents $1,000 No Significant Cash and Liquidity Credit • ~$910 million of liquidity(1) $900 Maturities Facility • $30.0 million borrowings under credit facility $800
Slide 17: Focused on Continuous Improvement and ESG Excellence
Focused on Continuous Improvement and ESG Excellence • Achieved overall “A” rating for Appalachia assets from MiQ for For additional information Improved second consecutive year please refer to Gulfport’s Corporate Sustainability Report Methane Intensity Rate Environmental • Lowered Scope 1 methane
Slide 18: Appendix
Gulfport Appendix la
Slide 19: 2023 Proved Reserve Summary
2023 Proved Reserve Summary Net Reserves as of December 31, 2023(1) Gas Oil NGL Total SEC PV-10(3) (Bcf) (MMBbls) (MMBbls) (Bcfe) ($MM) Proved Developed Producing 1,969 6 30 2,188 $1,574 Proved Developed Non-Producing 10 0 1 15 16 Proved Undeveloped(2) 1,746 12 32 2,011 819 Total Proved Reserves 3,7
Slide 20: Full Year 2024 Guidance
Full Year 2024 Guidance FY 2024E FY 2024E Guidance Guidance PREVIOUS UPDATED Incurred Capital Expenditures – PREVIOUS UPDATED Production $ millions Average Net Daily Gas Equivalent – MMcfe/day 1,055 1,070 1,055 1,070 D&C $330 $360 $325 $335 % Gas ~92% ~92% Maintenance Leasehold and Land $50 $60 $50
Slide 21: Development Plan Overview
Development Plan Overview Utica Marcellus 2023 Operated Activity 2024 Operated Activity 2023 Operated Activity Well Count Lateral Length Well Count Lateral Length Well Count Lateral Length Spud 18 gross (15.9 net) ~17,700' Spud ~20 gross (~19.7 net) ~15,200' Spud 2 gross (2.0 net) ~11,900' Drilled 2
Slide 22: Hedged Production
Hedged Production Hedge Book(1) Natural Gas Oil Propane Swaps Collars Calls Sold Swaps Collars Swaps Volume Avg. Price Volume Avg. Put Avg. Call Volume Avg. Call Volume Avg. Price Volume Avg. Put Avg. Call Volume Avg. Price MMBtu/d $/MMBtu MMBtu/d $/MMBtu $/MMBtu MMBtu/d $/MMBtu Bbl/d $/Bbl Bbl/d $/
Slide 23: Recent Utica Well Performance
Recent Utica Well Performance Gulfport Utica Well Productivity Outperforming Peers(1) Top 20 Performing Utica Wells(1) Normalized Cumulative Production (MMcfe / 1,000’ ft of lateral) 12 Month Normalized Production by Well (MMcfe / 1,000’ of lateral) - 100 200 300 400 500 600 700 - 200 400 600 800 To
Slide 24: Recent SCOOP Well Performance
Recent SCOOP Well Performance Gulfport Oklahoma Well Productivity Outperforming Peers(1) Top 20 Performing SCOOP / STACK Wells(1) Normalized Cumulative Production (MMcfe / 1,000’ ft of lateral) 12 Month Normalized Production by Well (MMcfe / 1,000’ of lateral) - 100 200 300 400 500 600 700 - 200 400
Slide 25: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure equal to net (loss) income, the most directly comparable GAAP financial measure, plus interest expense, deferred income tax expense (benefit), depreciation, depletion and amortization, impairment and accretion, net non-cash derivative l
Slide 26: Adjusted Free Cash Flow
Adjusted Free Cash Flow Adjusted free cash flow is a non-GAAP measure defined as adjusted EBITDA plus certain non-cash items that are included in net cash provided by (used in) operating activities but excluded from adjusted EBITDA less interest expense, capitalized expenses incurred and capital exp
Slide 27: Recurring General and Administrative (G&A) Expense
Recurring General and Administrative (G&A) Expense Recurring general and administrative expense is a non-GAAP financial measure equal to general and administrative expense (GAAP) plus capitalized general and administrative expense, less non-recurring general and administrative expenses comprised of
Slide 28: Present value of estimated future net revenue (PV-10)
Present value of estimated future net revenue (PV-10) PV – 10 is a non-GAAP measure derived from standardized measure of discounted future new cash flows (GAAP). Management uses PV-10, which is calculated without deducting estimated future income tax expenses, as a measure of the value of the Compan
Slide 29: Thank You.
Thank You. Investor Relations 405.252.4550 investor_relations@gulfportenergy.com www.gulfportenergy.com