Gulfport Energy Corporation · NYSE:GPOR
Gulfport Energy — Q2 2024 Earnings Presentation
28 slides from Gulfport Energy's earnings presentation, Aug 7, 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
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 and Marcellus NYSE: GPOR YE23 Net Reservoir Acres(6): ~210,000 Market Cap : (1) $2.7 Billion YE23 Proved Reserves: 3.2 Net Tcfe 2Q24 Net Production: ~837 MMcfe/day Enterprise Value (‘EV’)(2): $3.4 Billion EV / 2025 EBITDA : (2,7) 3.7x Liquidity : (3) ~$7
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 ~$461 million • Common stock repurchase program authorizes purchases up to $650 million Repurchased as of of Gulfport outstanding shares July 29, 2024, retiring ~4.8 million shares • As of July 29, 2024, repur
Slide 6: Adjusted Free Cash Flow Generation Potential
Adjusted Free Cash Flow Generation Potential 2024E – 2028E Adjusted Free Cash Flow(1,2,3) Illustration ($MM) Key Highlights $3.50 NYMEX & $75 WTI $4.00 NYMEX & $75 WTI • Sustainable free cash generation underpinned by high-quality assets ~$3.0 Billion • Meaningful adjusted free cash flow profile gen
Slide 7: Second Quarter 2024 Results
Second Quarter 2024 Results Full Year 2024 2Q2024 1H2024 Key Highlights Guidance Total 1,050.1 1,051.9 1,055 – 1,070 • Turned-in-line 4 gross Utica wells and delivered total net Net Production MMcfe/day MMcfe/day MMcfe/day production of 1,050.1 MMcfe/day Incurred Capital $122.2 Million $246.5 Millio
Slide 8: Full Year 2024 Guidance
Full Year 2024 Guidance Total Net Production Incurred Base Capital Discretionary Acreage Acquisitions Reaffirmed 1,055 – 1,070 MMcfe/day Updated $380 – $420 Million ~$45 Million Updated Delivering relatively flat production Forecasting ~10% lower capital Plan to allocate ~$45 million toward accretiv
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 ~50% since 2022 by ~50% since 2022 2022 2023 1H2024 2022 2023 1H2024 Average Plugs Dri
Slide 10: 2024 Capital Program and Production Outlook
2024 Capital Program and Production Outlook Capital Program Production • Forecasting over $25 million in capital savings from operating efficiencies • Narrowing full year 2024 production to 1,055 – 1,070 MMcfe/day, on drilling and completion activities during 2024 relatively flat year-over-year • Pl
Slide 11: Strong Marcellus Results Confirm Stacked Pay Potential
Strong Marcellus Results Confirm Stacked Pay Potential Key Highlights Attractive Rates of Return(2) ($3.50 / Mcf & $75.00 / Bbl Oil) • Hendershot pad delivering strong oil High-quality asset base providing returns in excess of 65% IRR production compared to Marcellus wells in Monroe County, Ohio and
Slide 12: Utica 2024 Development Plan
Utica 2024 Development Plan Key Highlights 4 Well Pad • 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 • Prioritized for near term development Spud: 4Q2023 • Planning to allocate increment
Slide 13: SCOOP 2024 Development Plan
SCOOP 2024 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 in 2023 to our development prog
Slide 14: 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 15: Strong Capital Structure and Financial Profile
Strong Capital Structure and Financial Profile Second Quarter 2024 Overview As of June 30, 2024 $900 $900 • $1.2 million of cash equivalents No Significant Credit Facility Cash and Liquidity • ~$707.4 million of liquidity(1) $800 Maturities $700 Until 2026 • $130.0 million borrowings under credit fa
Slide 16: Focused on Continuous Improvement and ESG Excellence
Focused on Continuous Improvement and ESG Excellence • Received an “A” grade MiQ certification for all Appalachia assets For additional information Improved • Initiated multi-year program to convert natural-gas driven pneumatic devices please refer to Gulfport’s Corporate Sustainability Report Metha
Slide 17: Appendix
Gulfport Appendix la
Slide 18: 2023 Proved Reserve Summary
2023 Proved Reserve Summary Net Reserves as of December 31, 2023(1) Gas Oil NGL Total SEC PV-10(3) (Bcf) (MMBbls) (MMBbls) (Bcfe) ($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 19: 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 1,045 1,080 1,055 1,070 D&C $330 $360 $330 $360 % Gas ~92% ~92% Maintenance Leasehold and Land $50 $60 $50
Slide 20: 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 ~17 gross (~16.8 net) ~14,800' Spud 2 gross (2.0 net) ~11,900' Drilled 2
Slide 21: 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 22: 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 23: 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 24: 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 and accretion, net non-cash derivative loss (gain),
Slide 25: 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 26: 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 27: 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 28: Thank You.
Thank You. Investor Relations 405.252.4550 investor_relations@gulfportenergy.com www.gulfportenergy.com