Gulfport Energy Corporation has recently released its 10-K report, providing an insight into the company's financial condition and operational performance. Gulfport is an independent natural gas-weighted exploration and production company with assets primarily located in the Appalachia and Anadarko basins. Its principal properties are located in eastern Ohio targeting the Utica and Marcellus and in central Oklahoma targeting the SCOOP Woodford and Springer formations. The company's strategy is to develop its assets in a safe, environmentally responsible manner, while generating sustainable cash flow, improving margins and operating efficiencies, and returning capital to shareholders.
The Management's Discussion and Analysis of Financial Condition and Results of Operations in the 10-K report highlights several key developments. In 2024, Gulfport reported a net loss of $261.4 million, compared to a net income of $1.5 billion in 2023. The company reported total net production of 1,054 MMcfe per day and generated $650.0 million of operating cash flows. Gulfport also extended the maturity of substantially all long-term senior notes from 2026 to 2029 and increased the available commitments under the Credit Facility by $100 million. The company repurchased 1.2 million shares for $184.5 million at a weighted average price of $153.35 per share during the year ended December 31, 2024.
In terms of production and pricing, Gulfport reported a decrease in natural gas sales without the impact of derivatives primarily due to a 15% decrease in realized natural gas prices, partially offset by a 1% increase in sales volumes. The company also reported an increase in oil and condensate sales due to a 7% increase in sales volumes, partially offset by a 5% decrease in realized oil prices. Moreover, Gulfport reported a decrease in NGL sales due to a 13% decrease in NGL sales volumes, partially offset by an 8% increase in realized prices.
The 10-K report also includes details about Gulfport's derivatives, lease operating expenses, taxes other than income, transportation, gathering, processing and compression expenses, and depreciation, depletion, and amortization. Notably, the company recorded a non-cash ceiling test impairment of $342.7 million in the fourth quarter of 2024 due to declines in the full cost ceiling, primarily resulting from the significant decrease in the 12-month average trailing price for natural gas.
Gulfport's primary focus going into 2025 is its continued attention on reducing cycle times and operating costs to improve margins and support expected free cash flow generation. The company aims to maintain capital discipline, prioritize free cash flow generation, and preserve its strong financial position while returning capital to shareholders and increasing resource depth through incremental leasehold opportunities. Gulfport expects continued volatility in natural gas prices and has entered into natural gas swaps and collars, representing approximately 46% of its expected 2025 production, at an average floor price of $3.59 per Mcf. The company's 2025 capital expenditure program is expected to be in a range of $370 million to $395 million. The market has reacted to these announcements by moving the company's shares -3.0% to a price of $172.63. For more information, read the company's full 10-K submission here.
