GULFPORT ENERGY CORP has recently released its 10-Q report. Gulfport Energy Corporation is an independent U.S. natural gas-weighted exploration and production company that acquires, explores and produces natural gas, crude oil and natural gas liquids. Its main operating areas are the Appalachia and Anadarko basins, with principal properties in eastern Ohio targeting the Utica and Marcellus formations and in central Oklahoma targeting the SCOOP Woodford and Springer formations.
In Item 2, Management’s Discussion and Analysis said Gulfport’s second-quarter 2026 net production averaged 962.8 MMcfe per day, down from 1,006.3 MMcfe per day a year earlier. For the first six months of 2026, average net production was 979.7 MMcfe per day, up from 968.0 MMcfe per day in the same 2025 period. During the quarter, the company spud 7 gross, 6.7 net Utica wells, started sales on 4 gross, 3.9 net operated Utica wells and 4 gross, 4.0 net operated Marcellus wells, and brought on 2 gross, 1.6 net operated SCOOP wells.
Gulfport’s second-quarter 2026 total natural gas, oil and NGL sales were $261.6 million, down 16% from $311.5 million a year earlier. Natural gas sales fell 18% to $198.3 million, oil and condensate sales dropped 21% to $32.8 million, and NGL sales rose 6% to $30.5 million. Average realized natural gas pricing, including settled derivatives, was $3.00 per Mcf versus $3.19 a year earlier; oil and condensate averaged $72.36 per barrel versus $61.58; and NGLs averaged $33.30 per barrel versus $27.65.
The company said the decline in natural gas sales reflected a 17% drop in realized prices and a 1% decline in sales volumes. Oil and condensate sales were pressured by a 46% drop in volumes, partly offset by a 48% increase in realized prices. NGL sales increased because of a 22% rise in realized prices, which more than offset a 13% volume decline.
Derivative gains totaled $61.7 million in the quarter, down from $136.1 million in the prior-year quarter. Natural gas derivatives contributed $50.2 million of gains, compared with $126.2 million a year earlier, while oil derivatives added $8.5 million and NGL derivatives added $3.0 million.
Lease operating expenses rose 12% to $19.8 million, or $0.23 per Mcfe, from $17.6 million, or $0.19 per Mcfe, a year earlier. Gulfport said the increase was driven mainly by higher compression, repairs and maintenance, and labor costs in Utica. Transportation, gathering, processing and compression costs were $84.6 million, down 2% from $86.5 million, while depreciation, depletion and amortization was $73.1 million, essentially flat with the prior-year quarter.
Net general and administrative expense was $10.7 million, compared with $10.9 million a year earlier. Gross G&A was $21.7 million, with $4.5 million reimbursed by third parties and $6.5 million capitalized. The company said lower legal expenses were offset by costs tied to the CEO transition.
Interest expense increased 15% to $15.8 million from $13.7 million, mainly because of higher borrowings on the credit facility. Interest on the 2029 senior notes was $11.0 million in both periods, while interest on the credit facility rose to $5.0 million from $2.3 million. Income tax expense was $24.0 million, down from $51.7 million in the second quarter of 2025.
On May 28, 2026, Domenic J. Dell’Osso, Jr. was named president, chief executive officer and director, and the Office of the Chairman was discontinued. On May 1, 2026, Gulfport completed its semi-annual borrowing base redetermination, with the borrowing base reaffirmed at $1.1 billion and elected commitments increased to $1.1 billion. In June 2026, the company announced an agreement to acquire about 4,700 net undeveloped acres in Belmont County, Ohio for about $83.0 million, a transaction expected to add about 16 net future drilling locations.
For the second quarter, Gulfport reported operating cash flows of $149.9 million, repurchased 392,222 shares for $70.0 million, and ended the period with total liquidity of $772.4 million. The market has reacted to these announcements by moving the company's shares -4.59% to a price of $156.325. For more information, read the company's full 10-Q submission here.
