Oklahoma City’s Gulfport Energy is going full-steam ahead in its natural gas exploration of the Marcellus shale play, as indicated in the firm’s third quarter financial results.
The company cited $111.4 million of net income and $213.1 million of adjusted EBITDA during the quarter. It also generated $209.1 million in net cash from operating activities and $103.4 million of adjusted free cash flow.
Gulfport reported it increased its Marcellus inventory during the quarter by nearly 200% or approximately 125 gross locations. It is also moving forward with investments to successfully test the drilling feasibility of U-development in the Utica play and recently reached total depth on two U-development wells and unlocking 20 gross Utica dry gas locations.
John Reinhart, President and CEO, commented, “We are pleased to announce a significant expansion of our drillable inventory, driven by further delineation of the Ohio Marcellus across our acreage position as well as our team’s successful execution in drilling our first U-development wells within our Utica acreage footprint.”
Gulfport also plans more investments in the plays totaling $75 million to $100 million toward discretionary acreage acquisitions by end of first quarter of 2026, of which $15.7 million was deployed at the end of the third quarter of 2025
Reinhart continued, “Since year-end 2022, Gulfport has grown our gross undeveloped inventory by more than 40%, driven by targeted discretionary acreage acquisitions, Marcellus delineation and U-development initiatives. We now estimate the Company holds approximately 700 gross locations across our asset base. These inventory additions unlock substantial value across our core assets, increasing economic inventory by approximately three years and bringing our total net inventory to roughly 15 years with break-evens below $2.50 per MMBtu, underscoring the high-quality, go-forward development opportunities in our portfolio.”
THIRD Quarter results
- Delivered total net production of 1,119.7 MMcfe per day, an increase of approximately 11% over second quarter 2025
- Produced total net liquids production of 22.0 MBbl per day, an increase of approximately 15% over second quarter 2025
- Incurred base capital expenditures of $74.9 million, which includes $68.7 million of base operated D&C capital expenditures and $6.2 million of maintenance land and leasehold spending
- Invested incremental $12.4 million on discretionary capital expenditures
- Reported $111.4 million of net income and $213.1 million of adjusted EBITDA(1)
- Generated $209.1 million of net cash provided by operating activities and $103.4 million of adjusted free cash flow(1), which includes the impact of approximately $12.4 million of incremental discretionary capital expenditures
- Repurchased approximately 438.3 thousand shares of common stock (including preferred stock on an as-converted basis) for approximately $76.3 million, including the optional redemption of all the Company’s outstanding preferred stock of approximately $31.3 million
- Completed opportunistic discretionary acreage acquisitions totaling $8.9 million
- Issued annual Corporate Sustainability Report, providing transparency around the Company’s sustainability initiatives, progress and commitment to environmental stewardship
Updated Full Year 2025 Outlook
- Forecast full year 2025 net daily equivalent production to be approximately 1.04 Bcfe per day
- Expect to invest total base capital expenditures of approximately $390 million, including $355 million of base operated drilling and completion expenditures and $35 million of maintenance leasehold and land investment
- Plan to allocate a total of $30 million toward discretionary appraisal projects, including drilled but uncompleted (“DUC”) and recompletion activity and the Company’s first U-development in the Utica, unlocking approximately 20 gross locations of drillable inventory with attractive returns
- Plan to allocate a total of $35 million toward discretionary development activity that is anticipated to mitigate the production impact of offset operator simultaneous operations and planned midstream maintenance downtime anticipated in early 2026
- Expect to repurchase approximately $325 million of Gulfport’s outstanding equity during 2025, inclusive of approximately $125 million planned for the fourth quarter of 2025