GULFPORT ENERGY CORP

Comparison of the Three Month Periods Ended March 31, 2025 and 2024

Natural Gas, Oil and Condensate and NGL Production and Pricing (sales totals in thousands)

The following table summarizes our natural gas, oil and condensate and NGL production, and related pricing for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Some totals below may not sum or recalculate due to rounding.

Natural Gas, Oil and Condensate and NGL Sales (in thousands)

The increase in natural gas sales without the impact of derivatives when comparing the three months ended March 31, 2025, to the three months ended March 31, 2024 was due to a 76% increase in realized natural gas prices, partially offset by a 15% decrease in sales volumes. The realized price change was primarily driven by the increase in the average Henry Hub gas index from $2.24 per Mcf in the three months ended March 31, 2024, to $3.65 per Mcf during the three months ended March 31, 2025. The 15% decrease in natural gas production was primarily due to natural declines partially offset by our 2024 and 2025 development programs.

The increase in oil and condensate sales without the impact of derivatives when comparing the three months ended March 31, 2025, to the three months ended March 31, 2024, was due to a 57% increase in sales volumes, partially offset by an 8% decrease in realized prices. The 57% increase in oil and condensate production was primarily due to commencement of sales on new wells targeting the Utica liquids window. The realized price change was primarily driven by the decrease in the average WTI crude index from $76.96 per barrel in the three months ended March 31, 2024, to $71.42 per barrel during the three months ended March 31, 2025.

The increase in NGL sales without the impact of derivatives when comparing the three months ended March 31, 2025, to the three months ended March 31, 2024, was due to a 12% increase in realized prices, partially offset by a 2% decrease in NGL sales volumes. The realized price change was driven by the increase in the average Mont Belvieu NGL index from $30.46 per barrel in the three months ended March 31, 2024, to $34.42 per barrel during the three months ended March 31, 2025. The 2% decrease in NGL production was primarily due to natural declines partially offset by our 2024 and 2025 development programs.

Natural Gas, Oil and NGL Derivatives (in thousands)

We recognize fair value changes on our natural gas, oil and NGL derivative instruments in each reporting period. The changes in fair value resulted from new positions and settlements that occurred during each period, as well as the relationship between contract prices and the associated forward curves. The change in the total gain (loss) for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, was primarily the result of changes in futures pricing for oil, natural gas, and NGLs during each period. See Note 10 of our consolidated financial statements for hedged volumes and pricing.

Lease Operating Expenses (in thousands, except per unit)

The increase in our total and per unit LOE for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, was primarily the result of an increase in water hauling, labor and costs associated with winter weather operations.

Taxes Other Than Income (in thousands, except per unit)

The decrease in total and per unit taxes other than income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, was primarily related to a decrease in property taxes.

Transportation, Gathering, Processing and Compression (in thousands, except per unit)

Transportation, gathering, processing and compression for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, increased on a per unit basis primarily as a result of an increase in the proportion of natural gas liquids and oil and condensate sales and a 12% decrease in total production volumes due to natural declines and the timing of our 2024 and 2025 development programs during the three months ended March 31, 2025.

Depreciation, Depletion and Amortization (in thousands, except per unit)

The total and per unit depreciation, depletion and amortization of our oil and gas properties for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, decreased primarily due to a lower depletion rate resulting from a decline in our amortization base from the full cost ceiling test impairments recorded during 2024, combined with a decrease in our production as noted above.

General and Administrative Expenses (in thousands, except per unit)

The decrease in general and administrative expenses for the three months ended March 31, 2025 compared to March 31, 2024, was primarily driven by lower legal expenses partially offset by increased headcount and compensation expenses.

Interest Expense (in thousands, except per unit)

Due to the tender offer for the 2026 Senior Notes in the third quarter of 2024, interest paid on the 2026 Senior Notes decreased 95% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The Company also incurred $11.0 million of interest on the 2029 Senior Notes for the three months ended March 31, 2025. Interest expense on our Credit Facility decreased 55% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, as a result of a lower average interest rate and balance outstanding. Amortization of loan costs increased 38% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, as a result of the Fourth Amendment to the Credit Facility which increased the elected commitments. See Note 4 of our consolidated financial statements for further details of our Credit Facility. The Company also capitalized $1.4 million and $1.1 million in interest expense for the three months ended March 31, 2025 and 2024, respectively.

Income Taxes

We recorded an income tax benefit of $0.2 million for the three months ended March 31, 2025 compared to income tax expense of $14.9 million for the three months ended March 31, 2024. See Note 14 of our consolidated financial statements for further discussion of our income tax benefit.