Financial Analysis

COMMITMENTS AND CONTINGENCIES Commitments Firm Transportation and Gathering Agreements The Company has contractual commitments with midstream and pipeline companies for future gathering and transportation of natural gas from the Company's producing wells to downstream markets. Under certain of these agreements, the Company has minimum daily volume commitments. The Company is also obligated under certain of these arrangements to pay a demand charge for firm capacity rights on pipeline systems regardless of the amount of pipeline capacity utilized by the Company. If the Company does not utilize the capacity, it often can release it to other counterparties, thus reducing the cost of these commitments. Working interest owners and royalty interest owners, where appropriate, will be responsible for their proportionate share of these costs. Commitments related to future firm transportation and gathering agreements are not recorded as obligations in the accompanying consolidated balance sheets; however, costs associated with utilized future firm transportation and gathering agreements are reflected in the Company's estimates of proved reserves. A summary of these commitments at September 30, 2025, are set forth in the table below (in thousands): Remaining 2025 $ 35,189 2026 136,581 2027 135,953 2028 138,121 2029 139,383 Thereafter 493,813 Total $ 1,079,040 Future Firm Sales Commitments The Company has entered into various firm sales contracts to deliver and sell natural gas. The Comp …

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STOCK-BASED COMPENSATION In May 2021, the Board of Directors adopted the Incentive Plan with a share reserve equal to 2.8 million shares of common stock. The Incentive Plan provides for the grant of incentive stock options, nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, dividend equivalents and performance awards or any combination of the foregoing. The Company has granted both restricted stock units and performance vesting restricted stock units to employees and directors pursuant to the Incentive Plan, as discussed below. During the three and nine months ended September 30, 2025, the Company's stock-based compensation expense was $4.4 million and $13.8 million, respectively, of which the Company capitalized $1.4 million and $4.6 million, respectively, relating to its exploration and development efforts. During the three and nine months ended September 30, 2024, the Company's stock-based compensation expense was $4.0 million and $12.6 million, respectively, of which the Company capitalized $1.3 million and $4.1 million, respectively, relating to its exploration and development efforts. Stock compensation expense, net of the amounts capitalized, is included in general and administrative expenses in the accompanying consolidated statements of operations. As of September 30, 2025, the Company has awarded an aggregate of approximately 516,560 restricted stock units and approximately 539,972 performance vesting restricted stock un …

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FAIR VALUE MEASUREMENTS The Company records certain financial and non-financial assets and liabilities on the balance sheet at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. Market or observable inputs are the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. Fair value measurements are classified and disclosed in one of the following categories: Level 1 Quoted prices (unadjusted) in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 2 Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Significant inputs to the valuation model are unobservable. Valuation techniques that maximize the use of observable inputs are favored. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy. …

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"INCOME TAXES The Company records its quarterly tax provision based on an estimate of the annual effective tax rate expected to apply to continuing operations for the various jurisdictions in which it operates. The tax effects of certain items, such as tax rate changes, significant unusual or infrequent items, and certain changes in the assessment of the realizability of deferred taxes, are recognized as discrete items in the period in which they occur and are excluded from the estimated annual effective tax rate. The Company's effective income tax rate was 22.0% and 21.9% for the three and nine months ended September 30, 2025, respectively, and 21.5% and 22.5% for the three and nine months ended September 30, 2024, respectively. The difference between the actual rate and the statutory rate for the three and nine months ended September 30, 2025 is primarily related to the deferred state tax expense recorded during the period. At each reporting period, the Company weighs all available positive and negative evidence to determine whether its deferred tax assets are more likely than not to be realized. A valuation allowance for deferred tax assets, including net operating losses, is recognized when it is more likely than not that some or all of the benefit from the deferred tax assets will not be realized. To assess that likelihood, the Company uses estimates and judgment regarding future taxable income and considers the tax laws in the jurisdiction where such taxable income is g …

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LEASES Nature of Leases The Company has operating leases on certain equipment with remaining lease durations in excess of one year. The Company recognizes a right-of-use asset and lease liability on the balance sheet for all leases with lease terms of greater than one year. Short-term leases that have an initial term of one year or less are not capitalized. The Company has historically entered into contracts for drilling rigs with varying terms with third parties to ensure operational continuity, cost control and rig availability in its operations. At September 30, 2025, the Company did not have any active long-term drilling rig contracts. The Company rents office space for its corporate headquarters, field locations and certain other equipment from third parties, which expire at various dates through 2027. These agreements are typically structured with non-cancelable terms of one year to five years. The Company has determined these agreements represent operating leases with a lease term that equals the primary non-cancelable contract term. The Company has included any renewal options that it has determined are reasonably certain of exercise in the determination of the lease terms. Discount Rate As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company's incremental borrowing rate reflects the estimated …

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LONG-TERM DEBT Long-term debt consisted of the following items as of September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 December 31, 2024 6.750% senior unsecured notes due 2029 $ 650,000 $ 650,000 8.0% senior unsecured notes due 2026 25,702 Credit Facility due 2028 51,000 38,000 Net unamortized debt issuance costs (9,334) (10,845) Total debt, net 691,666 702,857 Less: current maturities of long-term debt Total long-term debt, net $ 691,666 $ 702,857 2029 Senior Notes In September 2024, Gulfport Operating completed a private offering of $650.0 million aggregate principal amount of 6.750% senior notes due September 1, 2029. The 2029 Senior Notes are guaranteed on a senior unsecured basis by the Company and each of the Company's subsidiaries that guarantee the Credit Facility. Interest on the 2029 Senior Notes is payable semi-annually, on March 1 and September 1 of each year. The net proceeds from the offering, together with cash on hand were used to purchase $524.3 million of the 2026 Senior Notes in a tender offer and repay a portion of its outstanding borrowings under the Credit Facility. The 2029 Senior Notes were issued under the 2029 Senior Notes Indenture, dated as of September 13, 2024 and mature on September 1, 2029. The 2029 Senior Notes Indenture contains covenants limiting Gulfport Operatings and its restricted subsidiaries ability to (i) incur additional debt, (ii) make certain restricted payments, (iii) make certain investments, (iv) create …

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Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures (Topic 740). The amendment requires entities to disclose on an annual basis additional categories of information about federal, state, and foreign income taxes in the rate reconciliation table and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The ASU is effective for annual periods beginning after December 15, 2024, and the resulting new annual disclosure requirements will be reflected in our annual report on Form 10-K for the year ending December 31, 2025. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact that the adoption of this accounting standard will have on its financial disclosures.

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RELATED PARTY TRANSACTIONS Share Repurchase Program The following table summarizes the Company's purchases of its common stock from Silver Point Capital, L.P. for the nine months ended September 30, 2024 and 2025 (dollar value of shares purchased shown in thousands): Date of Transaction Shares Repurchased Repurchase Amount Closing Date March 19, 2024 97,219 $ 15,002 March 19, 2024 September 19, 2024 170,000 $ 24,863 September 25, 2024 May 14, 2025 76,986 $ 15,000 May 20, 2025 The repurchases are part of the Company's existing Repurchase Program. Upon closing of the transactions, the repurchased common stock was canceled.

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REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition The Companys revenues are primarily derived from the sale of natural gas, oil, condensate and NGL. These sales are recognized in the period that the performance obligations are satisfied. The Company generally considers the delivery of each unit (MMBtu or Bbl) to be separately identifiable and represents a distinct performance obligation that is satisfied at the time control of the product is transferred to the customer. Revenue is measured based on consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. These contracts typically include variable consideration that is based on pricing tied to market indices and volumes delivered in the current month. As such, this market pricing may be constrained (i.e., not estimable) at the inception of the contract but will be recognized based on the applicable market pricing, which will be known upon transfer of the goods to the customer. The payment date is usually within 30 days of the end of the calendar month in which the commodity is delivered. Gathering, processing and compression fees attributable to gas processing, as well as any transportation fees, including firm transportation fees, incurred to deliver the product to the purchaser, are presented as transportation, gathering, processing and compression expense in the accompanying consolidated statements of operations. Transaction Price Allocated to Remainin …

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SEGMENT INFORMATION The Company's assets and operations consist of one reportable segment with all revenues, operating expenses and assets attributable to this segment reflected in the consolidated financial statements. The Company derives its revenue from the sale of natural gas, oil and condensate and NGL produced from its oil and natural gas properties located in the United States. The CODM of the Company is its Chief Executive Officer. The CODM assesses entity-wide operating results and performance and decides how to allocate resources based on net income (loss), which is reported on the consolidated statement of operations. The measure of segment assets is reported on the consolidated balance sheets as total assets. The following tables present selected financial information with respect to the Company's one operating segment for the three and nine months ended September 30, 2025 and 2024 (in thousands): Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 Total revenues $ 379,745 $ 253,912 Significant segment expenses Lease operating expenses 20,793 18,218 Taxes other than income 7,925 6,833 Transportation, gathering, processing and compression 96,390 89,900 Depreciation, depletion, and amortization 83,216 82,825 Impairment of oil and natural gas properties 30,487 General and administrative 11,835 10,479 Interest expense 13,590 15,866 Loss on debt extinguishment 13,388 Other segment expenses (1) 3,193 3,716 Income tax expense (benefit) 31,410 (3,8 …

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"MEZZANINE EQUITY The Company's amended and restated certificate of incorporation provides for, among other things, (i) the authority to issue 42 million shares of common stock with a par value of $0.0001 per share and (ii) the designation of 110,000 shares of preferred stock, with a par value of $0.0001 per share and a liquidation preference of $1,000 per share (the ""Liquidation Preference""). Preferred Stock In May 2021, the Company issued 55,000 shares of Series A Convertible Preferred Stock (""the preferred stock""). Prior to the redemption of the preferred stock noted below, holders of preferred stock were entitled to receive cumulative quarterly dividends at a rate of 10% per annum of the Liquidation Preference with respect to cash dividends and 15% per annum of the Liquidation Preference with respect to dividends paid in kind as additional shares of preferred stock (PIK Dividends). Gulfport had the option to pay either cash dividends or PIK Dividends on a quarterly basis. Each holder of shares of preferred stock had the right (the Conversion Right), at its option and at any time, to convert all or a portion of the shares of preferred stock that it holds into a number of shares of common stock equal to the quotient obtained by dividing (x) the product obtained by multiplying (i) the Liquidation Preference times (ii) an amount equal to one (1) plus the Per Share Makewhole Amount (as defined in the Preferred Terms) on the date of conversion, by (y) $14.00 per share (as m …

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SUBSEQUENT EVENTS Natural Gas, Oil and NGL Derivative Instruments Subsequent to September 30, 2025, as of October 29, 2025, the Company entered into the following derivative contracts: Period Type of Derivative Instrument Index Daily Volume Weighted Average Price Natural Gas (MMBtu/d) ($/MMBtu) 2026 Basis Swaps TETCO M2 20,000 $(0.82) 2027 Swaps NYMEX Henry Hub 10,000 $4.00 Credit Facility Redetermination On October 30, 2025, Gulfport completed its semi-annual borrowing base redetermination under its Credit Facility during which the borrowing base was reaffirmed at $1.1 billion with elected commitments remaining at $1.0 billion.

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