Gulfport Energy Corporation

Greetings and welcome to the Gulfport Energy Corporation second quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jessica Antle, Vice President of Investor Relations.

Thank you and good morning. Welcome to Goldfort Energy Corporation's second quarter 2025 earnings conference call. I am Jessica Ansell. Speakers on today's call include John Reinhart, President and Chief Executive Officer, Michael Hodges, Executive Vice President and Chief Financial Officer, and in addition, Matthew Rucker, Executive Vice President and Chief Operating Officer will be available for the Q&A portion of today's call. I would like to remind everybody that during this conference call, the participants may make certain forward-looking statements relating to the company's financial condition results of operations, plans, objectives, future performance, and business. We caution you that the actual results could differ materially from those that are indicated in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the company's filings with the SEC. In addition, we may reference non-GAAP measures. Reconciliations to the comparable GAAP measures will be posted on our website. An updated Gulfport presentation was posted yesterday evening to our website in conjunction with the earnings announcement. At this time, I would like to turn the call over to John Reinhart, President and CEO.

Thank you, Jessica, and thank you for joining our call today. We're excited to announce several strategic initiatives alongside our second quarter results, highlighting our focus on enhancing the underlying fundamental value of the company and delivering long-term value to our shareholders. First, we are pleased to share our plans to allocate up to $100 million toward discretionary acreage acquisitions in the coming months. securing future drilling opportunities and strengthening our inventory runway in the core of the Utica Shale. The announcement further demonstrates our commitment to identifying, capturing, and developing high-quality, low-break-even resources. This level of reinvestment marks Gulfport's highest leasehold spend in over six years, bringing our three-year allocation of discretionary land spending to nearly $200 million. Together with our Marcellus delineation focus, these efforts are cumulatively targeting approximately six and a half years of incremental inventory runway since the beginning of 2023. Next, we are increasing our share or purchase program authorization by 50% from $1.0 billion to $1.5 billion to facilitate our ongoing investment in our equity. The company opportunistically purchased $65 million of Gulfport common shares during the quarter and has already returned $125 million to our shareholders in the first half of 2025. Finally, our announcement to redeem all of our outstanding preferred stock has the potential to meaningfully accelerate our share repurchase efforts, allowing Gulfport to take advantage of the current undervalued nature of our equity while simplifying our capital structure in a way that is accretive to our key per share cash flow metrics moving forward. We remain committed to upholding our strong balance sheet, and the initiatives announced today demonstrate our disciplined capital allocation and the strength of our current and projected financial position. Gulfport delivered a solid second quarter, marked by high single-digit quarterly production growth strong operating cost performance, and consistent operational execution, resulting in capital spending and cash flow results that beat analysts' expectations. Operationally, the company executed across all five of our development areas and experienced strong world performance despite a series of unplanned third-party midstream challenges. Our average daily production totaled 1.006 billion cubic feet equivalent per day, an increase of 8% over the first quarter of 2025, and includes a quarterly impact of approximately 40 million cubic feet per day from midstream outages and constraints. These issues included downtime following weather-related infrastructure disruptions and unplanned processing plant outages, which we are pleased to report have both been restored and normal production operations have resumed in these areas. In addition, short-term constraints associated with compression and gas quality are being prioritized with mitigating projects underway by our midstream partners that target further increases to midstream capacity. While these production targets, while these production impacts have been resolved or actively being mitigated, The cumulative effect of these occurrences result in our four-year total net production to trend toward the low end of our previously stated production guidance range. Offsetting these impacts, we continue to execute at high levels of efficiency and have seen very strong well results across our development program during the first half of the year. Our cage development, a four-well Utica condensate pad in southwest Harrison County, continues to perform very well under our revised managed pressure flow back strategy. We took the completion, production, and facilities learnings from our nearby highly productive lake development, which facilitated increased initial production rates at the cage pad, allowing us to maximize returns in the current commodity environment while also preserving long-term well productivity. Following 120 days online, the CAGE development continues to exhibit strong oil performance and has delivered approximately 65% more cumulative oil than Gulfport's lake pad, as shown in our investor deck on slide 12. These results, in combination with the strong performance of both Gulfport and nearby pier activity, reinforce the prospective nature of this acreage and the development optionality that it possesses. During the second quarter, the company also brought online a four-well Utica wet gas pad in Northwest Belmont County. This pad marks the first pad turned to sales as a product of our discretionary acreage acquisitions and is located in an area of the play where we have secured over two years of nearby inventory. This area of the play produces at well-level production rates comparable to our Utica dry gas development on a volume equivalent basis but with enhanced cash flows and economics driven by the associated liquids production. Assuming $3.50 natural gas and $65 oil and our corporate cost structure is provided in our guidance, we forecast the first 12 months of production in this area of the play generating approximately 30% more revenue than our top tier dry gas development. When considering this leasing activity began in late 2023, The development underscores the strategic value of our discretionary acreage acquisition efforts and reinforces the continued development of this high-return wet gas area of the play for years to come. On the land front, through June 30, 2025, we have invested roughly $17 million on maintenance, leasehold, and land investments. focused on bolstering our near-term drilling programs with increases of working interest and lateral footage in units we plan to drill near-term. As previously noted, the company is also providing further detail regarding the discretionary acreage acquisitions being pursued over the coming months. We have been actively pursuing these opportunities primarily in the dry gas and wet gas windows of the Utica and have invested approximately $7 million during the second quarter of 2025 as part of our plan to allocate $75 to $100 million in total during the second half of 2025 and into early 2026. Upon successful completion of our plans, we anticipate this level of spend will add more than two years of cordial inventory at our current development pace. reinforcing our ongoing commitment to organically grow our undeveloped well counts and increase development optionality. In summary, we're pleased with the progress made in the first six months of 2025, and the strategic announcements today demonstrate our continued focus on what lies ahead. While navigating a dynamic commodity environment, we are committed to continuing delivering on our financial, and strategic objectives, driving continued efficiency across our operations, delivering value to our shareholders through equity repurchases, and bolstering the company's already high-quality resource base, all positioning the company for long-term success. Now I'll turn the call over to Michael to discuss our financial results.