Gulfport Energy Corporation · NYSE:GPOR
Gulfport Energy — Q3 2023 Earnings Presentation
27 slides from Gulfport Energy's earnings presentation, Nov 1, 2023
Slide 1: Investor Presentation
Investor Presentation October 2023
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 YE22 Net Acres: ~188,000 Market Cap : (1) $2.3 Billion YE22 Proved Reserves: 2.9 Net Tcfe 3Q23 Net Production: ~812 MMcfe/day Enterprise Value (‘EV’)(2): $3.0 Billion EV / 2024 EBITDA : (2,7) 3.3x Liquidity : (3) ~$746.4 Million Leverage(4): 0
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: Third Quarter 2023 Results and Guidance
Third Quarter 2023 Results Incurred Adjusted Total Per Unit Current Capital Free Cash Flow(5) Net Operating Leverage Expenditures (excluding discretionary (Net Debt(2) to Production (excluding discretionary Cost(1) acreage acquisitions) Adjusted EBITDA(3)) acreage acquisitions) 3Q 2023 1,057 MMcfe/d
Slide 6: Delivering Value For Shareholders
Delivering Value For Shareholders Common Share Repurchase Program Common Share Repurchases ~$335 million • Common share repurchase program authorizes purchases up to $650 million Repurchased as of of Gulfport outstanding shares October 26, 2023, retiring ~3.9 million • As of October 26, 2023, repurc
Slide 7: Adjusted Free Cash Flow Generation Potential
Adjusted Free Cash Flow Generation Potential 2024 – 2028E Adjusted Free Cash Flow(1,2) Illustration ($MM) Key Highlights $3.50 NYMEX & $75 WTI $4.00 NYMEX & $75 WTI • Sustainable free cash generation underpinned by high quality assets ~$2.9 Billion • Meaningful adjusted free cash flow profile genera
Slide 8: 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 To
Slide 9: 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 10: Full Year 2023 Guidance
Full Year 2023 Guidance Total Net Production Incurred Base Capital Discretionary Acreage Acquisitions Reaffirmed 1,045 – 1,055 MMcfe/day Updated Updated $435 - $455 Million ~$40 Million Prudent single digit production growth Includes $50 – $60 million of Plan to allocate ~$40 million toward accretiv
Slide 11: 2023 Capital Program and Production Outlook
2023 Capital Program and Production Outlook Capital Program Production • Reducing base total capital to $435 million – $455 million • Raising FY2023 production to be in the range of 1,045 – 1,055 MMcfe/day • Planning discretionary acreage acquisitions of ~$40 million • Strong production performance
Slide 12: Operational Cycle Time Improvements
Operational Cycle Time Improvements Average Cycle Time(1) (Days) • Fully integrated operational planning to minimize Utica SCOOP development risk and increase efficiencies Planning • Continuously optimized operational planning to ~265 reduce non-productive time between phases ~35% ~230 improvement o
Slide 13: Utica and Marcellus 2023 Development Plan
Utica and Marcellus 2023 Development Plan Key Highlights 5 Well Pad Spud: 4Q2022 TIL: 3Q2023 2 Well Pad • Continue to optimize well designs yielding consistent EUR’s per well Spud: 1Q2023 TIL: 2Q2023 ADDED • Utica 2023 turn-in-lines outperforming with an average 4 Well Pad EUR above 2.2 Bcfe / 1,000
Slide 14: SCOOP 2023 Development Plan
SCOOP 2023 Development Plan Key Highlights 2 Well Pad • Optimized unit development and well designs yielding increased recoveries Spud: 1Q2023 TIL: 2Q2023 • SCOOP 2023 turn-in-lines outperforming with an average EUR above 2.5 Bcfe / 1,000’ • Drilled and turned to sales 2 gross wells during 2023 • Pl
Slide 15: Strong Capital Structure and Financial Profile
Strong Capital Structure and Financial Profile Third Quarter 2023 Overview As of September 30, 2023 $900 $900 • $8.3 million of cash equivalents No Significant Credit Facility Cash and Liquidity • ~$746.4 million of liquidity(1) $800 Maturities $700 Until 2026 • $95.0 million borrowings under credit
Slide 16: Natural Gas Hedge Position Summary
Natural Gas Hedge Position Summary Natural Gas Hedge Position(1) 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2025 Swap Price $4.36 $4.04 $4.04 $4.05 $4.05 $4.08 Collar Ceiling $4.78 $5.14 $5.14 $5.14 $5.14 $4.54 Collar Floor $2.93 $3.36 $3.36 $3.36 $3.36 $3.62 ~60% of 4Q2023 600,000 production hedged
Slide 17: Focused on Continuous Improvement and ESG Excellence
Focused on Continuous Improvement and ESG Excellence • Received an “A” grade MiQ certification for all Appalachia assets For additional information Improved • Initiated multi-year program to convert natural-gas driven pneumatic devices please refer to Gulfport’s Corporate Sustainability Report Metha
Slide 18: Appendix
Gulfport Appendix la
Slide 19: 2022 Proved Reserve Summary
2022 Proved Reserve Summary Net Reserves as of December 31, 2022(1) Gas Oil NGL Total SEC PV-10(2) (Bcf) (MMBbls) (MMBbls) (Bcfe) ($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 20: Full Year 2023 Guidance
Full Year 2023 Guidance FY 2023E FY 2023E Guidance Guidance PREVIOUS UPDATED Incurred Capital Expenditures – PREVIOUS UPDATED Production $ millions Average Net Daily Gas Equivalent – MMcfe/day 1,000 1,040 1,045 1,055 D&C $375 $400 $385 $395 % Gas ~90% ~90% Maintenance Leasehold and Land $50 $75 $50
Slide 21: Development Plan Overview
Development Plan Overview Utica Marcellus PREVIOUS UPDATED 2023 Operated Activity 2023 Operated Activity 2023 Operated Activity Well Count Lateral Length Well Count Lateral Length Well Count Lateral Length Spud 15 - 17 gross (13 -15 net) ~17,000' Spud 2 gross (2.0 net) ~12,000' Spud 19 gross (17.4 n
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: 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, deferred income tax benefit, depreciation, depletion and amortization and accretion, net non-cash derivative loss (gain), non-recurr
Slide 24: 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 25: 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 26: 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 27: Thank You.
Thank You. Investor Relations 405.252.4550 investor_relations@gulfportenergy.com www.gulfportenergy.com