Gulfport Energy Reports Significant Decline in Revenues and Net Income in Q3 2024 Due to Lower Natural Gas Prices and Increased Operating Expenses

Gulfport Energy Corporation reported significant financial changes in its third quarter and year-to-date results for 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues decreased to $253.9 million from $266.7 million in Q3 2023, primarily due to a 10% decline in natural gas sales, which fell to $159.9 million from $177.4 million. However, oil and condensate sales increased by 29%, reaching $29.5 million, up from $22.9 million. The overall decrease in revenue was attributed to lower realized prices for natural gas, which dropped from $2.55 per Mcf in Q3 2023 to $2.16 per Mcf in Q3 2024.

Operating expenses rose significantly to $239.3 million in Q3 2024, compared to $199.5 million in the prior year, leading to a sharp decline in income from operations to $14.6 million from $67.2 million. The company reported a net loss of $14.0 million for Q3 2024, a stark contrast to a net income of $608.4 million in Q3 2023. This resulted in a basic and diluted net loss per share of $(0.83), compared to earnings of $27.72 per share in the same quarter last year.

For the nine months ended September 30, 2024, total revenues were $718.3 million, down from $1.3 billion in 2023. Natural gas sales for this period decreased by 20% to $492.6 million, while oil and condensate sales saw a slight decline of 8% to $70.3 million. The net income for the nine months was $11.9 million, significantly lower than $1.2 billion in 2023, resulting in a basic and diluted net income per share of $0.40, down from $55.72.

Strategically, Gulfport completed a private offering of $650 million in senior notes due 2029 in September 2024, using the proceeds to repurchase a substantial portion of its 2026 Senior Notes, which extended their maturity. The company also amended its Credit Facility, increasing the aggregate elected commitment amounts to $1.0 billion and reaffirming the borrowing base at $1.1 billion, with an extended maturity to September 2028.

Production metrics showed a slight increase, with total net production averaging 1,057.2 MMcfe per day in Q3 2024, up from 1,056.9 MMcfe per day in Q3 2023. Natural gas production from the Utica and Marcellus regions increased to 822,015 Mcf/day, while oil and condensate production rose significantly due to new wells in the Utica liquids window.

The company also recorded a non-cash ceiling test impairment of $30.5 million for oil and gas properties due to declining natural gas prices. Overall, Gulfport's financial performance reflects the challenges posed by fluctuating commodity prices and increased operational costs, alongside strategic financial maneuvers to manage its debt obligations.