Gulfport Energy Corporation · NYSE:GPOR
Gulfport Energy — Q4 2023 Earnings Presentation
29 slides from Gulfport Energy's earnings presentation, Feb 28, 2024
Slide 1: Investor Presentation February 2024
Investor Presentation Februar y 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) $2.6 Billion YE23 Proved Reserves: 3.2 Net Tcfe 4Q23 Net Production: ~814 MMcfe/day Enterprise Value (‘EV’)(2): $3.3 Billion EV / 2024 EBITDA : (2,7) 4.0x 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 Share Repurchase Program Common Share Repurchases ~$414 million • Common share repurchase program authorizes purchases up to $650 million Repurchased as of of Gulfport outstanding shares February 26, 2024, retiring ~4.5 million • As of February 26, 2024, repu
Slide 6: Adjusted Free Cash Flow Generation Potential
Adjusted Free Cash Flow Generation Potential 2024E – 2028E Adjusted Free Cash Flow(1,2) Illustration ($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 ~$2.2 • Meaningful adjusted free cash flow profile
Slide 7: Fourth Quarter and Full Year 2023 Results
Fourth Quarter and Full Year 2023 Results Initial Guidance 4Q 2023 FY 2023 Key Highlights Full Year 2023 Total 1,063 1,054 1,000 – 1,040 • Allocated ~$48.0 million toward discretionary acreage Net Production MMcfe/day MMcfe/day MMcfe/day acquisitions, adding over 1.5 years of inventory • Developed f
Slide 8: Full Year 2024 Guidance
Full Year 2024 Guidance Total Net Production Incurred Capital Expenditures 1,045 – 1,080 MMcfe/day $380 - $420 Million Delivering relatively flat production Forecasting ~10% lower capital invested while targeting more driven by longer laterals, continued cycle time liquids-rich development, ultimate
Slide 9: Significant Improvement in Operational Efficiencies…
Significant Improvement in Operational Efficiencies… Drilling and Completion Efficiencies Average Total Footage per Day Average Frac Pumping Hours Improved drilling efficiency Improved completion efficiency by ~45% since 2021 by ~40% since 2021 2021 2022 1H2023 2H2023 2021 2022 1H2023 2H2023 Average
Slide 10: …Driving Lower Capital Intensity
…Driving Lower Capital Intensity 2024 Development Program Drilling Completions ~16,000 ~17,600 Similar completed lateral ~14,800 21.9 21.9 footage y-o-y while turning to ~20.5 ~13,500 sales ~20% fewer wells ~17.9 Net Wells Drilled Net Lateral Length (ft) Net Total Measured Depth (ft) Net Wells Turne
Slide 11: 2024 Capital Program and Production Outlook
2024 Capital Program and Production Outlook Capital Program Production • Significantly more capital efficient program associated with longer laterals • Full year 2024 production relatively flat year-over-year with a range of and continued cycle time improvements 1,045 – 1,080 MMcfe/day • Total D&C c
Slide 12: Recent Marcellus Results
Recent Marcellus Results 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 across the river in Hendersho
Slide 13: Utica 2024 Development Plan
Utica 2024 Development Plan Key Highlights 4 Well Pad Spud: 2Q2024 • Recently extended Utica inventory by over 1.5 years through discretionary acreage acquisitions in the liquids-rich area of the play 4 Well Pad • Prioritized for near term development and beginning pad development Spud: 4Q2023 TIL:
Slide 14: SCOOP 2024 Development Plan
SCOOP 2024 Development Plan Key Highlights 2 Well Pad • Returning to more traditional capital allocation in the SCOOP and targeting Spud: 2Q2024 high return, liquids-rich development • Optimized unit development and well designs yielding strong recoveries • Expanding learnings and efficiency gains f
Slide 15: 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 ~16 gross (~15.6 net) ~15,800' Spud 2 gross (2.0 net) ~11,900' Drilled 2
Slide 16: Strong Capital Structure and Financial Profile
Strong Capital Structure and Financial Profile Fourth Quarter 2023 Overview As of December 31, 2023 $900 $900 • $1.9 million of cash equivalents No Significant Credit Facility Cash and Liquidity • ~$720.1 million of liquidity(1) $800 Maturities $700 Until 2026 • $118.0 million borrowings under credi
Slide 17: Natural Gas Hedge Position Summary
Natural Gas Hedge Position Summary Natural Gas Hedge Position(1,2) 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2025 Swap Price $4.04 $4.04 $3.77 $3.77 $4.00 Collar Ceiling $5.14 $5.14 $5.14 $5.14 $4.43 Collar Floor $3.36 $3.36 $3.36 $3.36 $3.53 700,000 600,000 500,000 MMBtu / day 400,000 300,000 200,000 100,
Slide 18: Focused on Continuous Improvement and ESG Excellence
Focused on Continuous Improvement and ESG Excellence • Received an “A” grade MiQ certification for all Appalachia assets For additional information Improved • Initiated multi-year program to convert natural-gas driven pneumatic devices please refer to Gulfport’s Corporate Sustainability Report Metha
Slide 19: Appendix
Gulfport Appendix la
Slide 20: 2023 Proved Reserve Summary
2023 Proved Reserve Summary Net Reserves as of December 31, 2023(1) Gas Oil NGL Total SEC PV-10(3) (Bcf) (MMBbls) (MMBbls) (Bcfe) ($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 21: Full Year 2024 Guidance
Full Year 2024 Guidance FY 2024E FY 2024E Guidance Guidance Production Incurred Capital Expenditures – $ millions Average Net Daily Gas Equivalent – MMcfe/day 1,045 1,080 D&C $330 $360 % Gas ~92% Maintenance Leasehold and Land $50 $60 Total Base Capital Expenditures $380 $420 Realizations (before he
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 Avg. Price Volume Avg. Put Avg. Call Volume Avg. Price Volume Bbl/d MMBtu/d $/MMBtu MMBtu/d $/MMBtu $/MMBtu MMBtu/d $/MMBtu $/Bbl Bbl/d $/
Slide 23: 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 24: 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 25: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure equal to net 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), non-rec
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