Gulfport Energy Reports $261.4 Million Net Loss and 46% Revenue Decline for Fiscal Year 2024

Gulfport Energy Corporation reported a net loss of $261.4 million for the fiscal year ending December 31, 2024, a significant decline from a net income of $1.5 billion in 2023. The company's total revenues decreased by 46% to $958.1 million, down from $1.79 billion the previous year. This decline was primarily attributed to a 14% drop in natural gas sales, which totaled $714.2 million, alongside a decrease in average realized prices for natural gas, oil, and natural gas liquids (NGLs). The average price for natural gas fell to $2.02 per Mcf from $2.37 in 2023, while oil prices also saw a decline.

In terms of operational performance, Gulfport's total production remained stable at approximately 1,054 MMcfe per day, with production from the Utica and Marcellus regions accounting for about 80% of total output. The company turned to sales 19 gross operated wells during the year, reflecting ongoing development efforts in its key operating areas. However, Gulfport faced challenges with its proved reserves, reporting a total of 4.0 Tcfe as of December 31, 2024, which included significant impairments due to lower commodity prices. The company recorded a non-cash ceiling test impairment of $373.2 million in 2024, primarily driven by a decrease in the average trailing price for natural gas.

Strategically, Gulfport has made notable changes to its capital structure, including the issuance of $650 million in 2029 Senior Notes and the retirement of approximately 95% of its 2026 Senior Notes. This restructuring effort has extended the maturity of its debt and improved liquidity, with total liquidity reported at $899.7 million at year-end. The company also expanded its stock repurchase program to $1 billion, repurchasing 1.2 million shares for $184.5 million during 2024, as part of its strategy to return capital to shareholders.

Looking ahead, Gulfport plans to maintain a capital expenditure program estimated between $370 million and $395 million for 2025, focusing on drilling and completing approximately 27 gross operated wells across its key regions. The company anticipates production levels to range between 1,040 and 1,065 MMcfe per day in 2025. Gulfport's management remains committed to generating sustainable free cash flow while navigating the volatile commodity price environment, which has seen natural gas prices fluctuate significantly in recent months. The company has implemented hedging strategies to mitigate risks associated with price volatility, securing approximately 46% of its expected 2025 production at an average floor price of $3.59 per Mcf.