Gulfport Energy Corporation · NYSE:GPOR
Gulfport Energy — Q1 2023 Earnings Presentation
26 slides from Gulfport Energy's earnings presentation, May 3, 2023
Slide 1: Investor Presentation May 2023
Investor Presentation M ay 2 0 2 3
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This presentation includes “forward-looking statements” for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securitie
Slide 3: Gulfport Energy Overview
Gulfport Energy Overview Key Highlights Utica NYSE: GPOR ~188,000 Net Acres Market Cap(1): $1.5 Billion 1Q23 Net Production: ~738 MMcfe/d YE22 Proved Reserves: 2.9 Net Tcfe Enterprise Value (‘EV’)(2): $2.1 Billion EV / 2023 Adjusted EBITDA(5): 2.8x Liquidity(3): ~$829 Million Leverage(4): 0.7x 2023
Slide 4: Focused Strategy and Compelling Valuation
Focused Strategy and Compelling Valuation • Multi basin portfolio provides diversification and capital allocation optionality High Quality Asset Base • Capture value enhancement through Marcellus stacked pay opportunity Natural Gas Weighted • Low breakeven inventory supports sustainable returns and
Slide 5: Return of Capital Summary
Return of Capital Summary Common Share Repurchase Program Key Highlights ~$288 million • Common share repurchase program authorizes purchases up to Repurchased as of $400 million of Gulfport outstanding shares April 26, 2023, retiring ~3.4 • As of April 26, 2023, repurchased ~$288 million at an aver
Slide 6: First Quarter 2023 Results
First Quarter 2023 Results Total Incurred Per Unit Current Adjusted Leverage Net Capital Operating Free Cash Flow(2) (Net Debt(3) to Production Expenditures Cost(1) Adjusted EBITDA(2)) 1Q 2023 1,057 MMcfepd $147 Million $1.24 per Mcfe ~$63 Million 0.7x Guidance Top-quartile Maintain FY 2023 1,000 –
Slide 7: Recent Utica Well Performance
Recent Utica Well Performance Gulfport Utica Well Productivity Outperforming Peers(1) Top 15 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 1
Slide 8: Recent SCOOP Well Performance
Recent SCOOP Well Performance Gulfport Oklahoma Well Productivity Outperforming Peers(1) Top 15 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 9: Reaffirm Full Year 2023 Guidance
Reaffirm Full Year 2023 Guidance Total Net Production Incurred Capital Expenditures 1,000 – 1,040 MMcfepd $425 - $475 Million Prudent low single digit production growth Includes $50 to $75 million of leasehold capital, targeting driven by the Utica development plan expanded lateral lengths and incre
Slide 10: 2023 Capital Program and Production Outlook
2023 Capital Program and Production Outlook Capital Program Production • Reaffirm plans to spend ~$450 million(1) of total capital expenditures • Full year 2023 production to be in the range of 1,000 – 1,040 MMcfepd • Expect ~60% - 65% of D&C capital to be allocated during 1H2023 • Strong production
Slide 11: Utica and Marcellus 2023 Development Plan
Utica and Marcellus 2023 Development Plan Key Highlights 5 Well Pad Spud: 4Q2022 2 Well Pad TIL: 3Q2023 2 Well Pad • Continue to optimize well designs yielding consistent EUR’s per well Spud: 4Q2023 Spud: 1Q2023 TIL: 2Q2023 • Plan to turn-to-sales 18 to 20 gross Utica wells and 2 gross Marcellus wel
Slide 12: SCOOP 2023 Development Plan
SCOOP 2023 Development Plan Key Highlights • Optimized unit development and well designs yielding increased recoveries • SCOOP 2022 turn-in-lines outperforming with an average EUR of 2.5 Bcfe / 1,000’ • Plan to drill and turn to sales 2 gross wells during 2023 2 Well Pad Spud: 1Q2023 • Expect increa
Slide 13: Revolving Credit Facility Update
Revolving Credit Facility Update Key Terms and Conditions Transaction Overview Description Key Terms • Increased borrowing base from $1.0 billion to $1.1 billion • Increased elected commitments from $700 million to $900 million Facility Size $1.5 billion • Added two additional financial institutions
Slide 14: Strong Capital Structure and Financial Profile
Strong Capital Structure and Financial Profile First Quarter 2023 Overview As of March 31, 2023(3) $900 $900 • $3.5 million of cash equivalents No Significant Credit Facility Cash and Liquidity • ~$829.1 million of pro forma liquidity(1) $800 Maturities $700 Until 2026 • No borrowings under credit f
Slide 15: Hedge Position Summary
Hedge Position Summary Natural Gas Hedge Position(1) Key Highlights 600,000 • Hedge position provides certainty to cash flow and reduces 500,000 commodity price risk 400,000 • Currently have downside hedge protection of ~50%(1) of projected MMBtu / day 300,000 2023 production and significant portion
Slide 16: Focused on Continuous Improvement and ESG Excellence
Focused on Continuous Improvement and ESG Excellence • Goal in 2023 to certify Utica natural gas production under the MiQ For additional information please refer to Gulfport’s Decreased standard for methane emissions measurement and management Corporate Sustainability Report Total Recordable Inciden
Slide 17: Appendix
Gulfport Appendix la
Slide 18: 2022 Proved Reserve Summary
2022 Proved Reserve Summary Net Reserves as of December 31, 2022(1) Gas Oil NGL Total SEC PV-10(2) (Bcf) (MMBbls) (MMBbls) (Bcfe) ($MM) Proved Developed Producing 2,017 9 33 2,271 $5,747 Proved Developed Non-Producing 17 0 1 24 57 Proved Undeveloped 1,578 9 20 1,752 3,721 Total Proved Reserves 3,612
Slide 19: Reaffirm 2023 Guidance
Reaffirm 2023 Guidance FY 2023E FY 2023E Guidance Guidance Production Incurred Capital Expenditures Average Net Daily Gas Equivalent – MMcfe/d 1,000 1,040 D&C - $ millions $375 $400 % Gas ~90% Leasehold and Land - $ millions $50 $75 Total Incurred Capital Expenditures – $ millions $425 $475 Realizat
Slide 20: Development Plan Overview
Development Plan Overview Utica Marcellus 2022 Operated Activity 2023 Operated Activity 2023 Operated Activity Well Count Lateral Length Well Count Lateral Length Well Count Lateral Length Spud 19 gross (17.4 net) 14,200' Spud 15 - 17 gross (13 -15 net) ~17,000' Spud 2 gross (2.0 net) 12,200' Drille
Slide 21: Hedged Production
Hedged Production Hedge Book(1) Natural Gas Oil Propane Swaps Collars Calls Sold Swaps Swaps Volume Avg. Price Volume Avg. Put Avg. Call Volume Avg. Call Volume Avg. Price Volume Avg. Price MMBtu/d $/MMBtu MMBtu/d $/MMBtu $/MMBtu MMBtu/d $/MMBtu Bbl/d $/Bbl Bbl/d $/Bbl 2Q 2023 180,000 $3.98 285,000
Slide 22: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure equal to net income (loss), the most directly comparable GAAP financial measure, plus interest expense, depreciation, depletion and amortization and accretion, non- cash derivative (gain) loss, non-recurring general and administrative e
Slide 23: 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 24: 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 25: 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 26: Thank You.
Thank You. Investor Relations 405.252.4550 investor_relations@gulfportenergy.com www.gulfportenergy.com