Gulfport Energy Stock Earnings Reports

Key points for investors:

- Leadership: Gulfport announced that Nick Delazzo will join as President and Chief Executive Officer on May 28, 2026, marking a leadership transition the company views as value-accretive.

- Strong Q1 financials: Q1 2026 adjusted EBITDA of $264 million and adjusted free cash flow of $119 million. Average production was ~997 MMcfe/d, consistent with guidance and on track for full-year production guidance of 1.03 – 1.055 Bcfe/d.

- Costs and guidance: Q1 cash operating costs were $1.38/Mcfe (a seasonal high); Gulfport reaffirmed full-year per-unit operating cost guidance of $1.23 – $1.34/Mcfe.

- Capital activity: Q1 drilling & completion capital of $118 million and $4 million for maintenance/land/seismic. The company completed a discretionary acreage program (~$102 million over the past four quarters) adding >2 years of high-quality inventory (part of >4.5 years added since 2022).

- Balance sheet & liquidity: Spring borrowing base reaffirmed at $1.1 billion with elected commitments up 10%. Trailing-12 month net leverage ~0.9x and liquidity of $872 million (cash + revolver capacity). Gulfport intends to operate with leverage at or below 1.0x.

- Share repurchases: Record Q1 repurchases—866k shares for ~$172.8 million. Since program inception (including preferred redemption) ~8.2 million shares retired (~$1.1 billion) and nearly 10% of shares outstanding repurchased over the last two quarters. Management expects repurchases to remain an attractive priority in 2026, funded by free cash flow and revolver capacity.

- Operations: Continued efficiency gains across plays (Utica, Marcellus, SCOOP). Plan to reduce running rigs to one in Ohio for the remainder of 2026. Zero recordable incidents or spills in the quarter. Notable drilling efficiency records (Utica top hole 5.4 days, SCOOP pad spud-to-rig-release ~40 days/well).

- Commodity mix & hedging: Two-thirds of remaining 2026 turn-in-lines include a meaningful liquids component; management expects liquids % to move to the low-teens in the back half of 2026 (from ~9% in Q1). Target hedge coverage for 2027 roughly 30–40% (dynamic approach to further layering hedges).

- Capital allocation approach: Management will remain dynamic—prioritizing high-return discretionary acreage where near-term drill timing is available while continuing opportunistic share buybacks, with flexibility to use revolver capacity in quarters with lower free cash flow.

- Outlook: Management emphasized durable cash generation, disciplined capital allocation, continued buybacks while preserving financial flexibility, and confidence in the company’s operational and financial trajectory under incoming CEO leadership.