GULFPORT ENERGY CORP
For the period ended Mar 31, 2025. Filed May 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
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3. Property and Equipment
- PROPERTY AND EQUIPMENT
The major categories of property and equipment and related accumulated DD&A are as follows (in thousands):
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Proved oil and natural gas properties | $3,524,497 | $3,349,805 |
| Unproved properties | 215,154 | 221,650 |
| Other depreciable property and equipment | 11,448 | 10,905 |
| Land | 386 | 386 |
| Total property and equipment | 3,751,485 | 3,582,746 |
| Accumulated DD&A and impairment | (1,630,039) | (1,564,475) |
| Property and equipment, net | $2,121,446 | $2,018,271 |
Oil and Natural Gas Properties
Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the Company's oil and natural gas properties. At March 31, 2025 and 2024, the net book value of the Company's oil and gas properties was below the calculated ceiling. As a result, the Company didnot record an impairment of its oil and natural gas properties for the three months ended March 31, 2025 or 2024.
General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. All general and administrative costs not directly associated with exploration and development activities are charged to expense as they are incurred. Capitalized general and administrative costs were approximately $6.2 million and $5.7 million for the three months ended March 31, 2025 and 2024, respectively.
The Company evaluates the costs excluded from its amortization calculation at least annually. Individually insignificant unevaluated properties are grouped for evaluation and periodically transferred to evaluated properties over a timeframe consistent with their expected development schedule.
The following table summarizes the Company’s non-producing properties excluded from amortization by area (in thousands):
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Utica & Marcellus | $191,063 | $197,513 |
| SCOOP | 24,091 | 24,137 |
| Total unproved properties | $215,154 | $221,650 |
Asset Retirement Obligation
The following table provides a reconciliation of the Company’s asset retirement obligation for the three months ended March 31, 2025 and 2024 (in thousands):
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | |
|---|---|---|
| Asset retirement obligation, beginning of period | $32,949 | $29,941 |
| Liabilities incurred | 53 | 214 |
| Liabilities settled | (1,266) | — |
| Accretion expense | 618 | 555 |
| Total asset retirement obligation, end of period | $32,354 | $30,710 |
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