Gulfport Energy Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

BASIS OF PRESENTATION

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2023

Description of Company

Gulfport Energy Corporation (the "Company" or "Gulfport") is an independent natural gas-weighted exploration and production company focused on the production of natural gas, crude oil and NGL in the United States. The Company's principal properties are located in eastern Ohio targeting the Utica and Marcellus and in central Oklahoma targeting the SCOOP Woodford and Springer formations.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Gulfport were prepared in accordance with GAAP and the rules and regulations of the SEC.

This Quarterly Report on Form 10-Q (this “Form 10-Q”) relates to the financial position and periods as of and for the three months ended March 31, 2023, and the three months ended March 31, 2022. The Company's annual report on Form 10-K for the year ended December 31, 2022, should be read in conjunction with this Form 10-Q. The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of our condensed consolidated financial statements and accompanying notes and include the accounts of our wholly-owned subsidiaries. Intercompany accounts and balances have been eliminated. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following at March 31, 2023 and December 31, 2022 (in thousands):


	March 31, 2023		December 31, 2022
Revenue payable and suspense	$	195,318	$	222,721
Accounts payable	55,417		37,807
Accrued capital expenditures	50,972		36,464
Accrued transportation, gathering, processing and compression	30,754		56,138
Accrued contract rejection damages and shares held in reserve	1,996		40,996
Other accrued liabilities	43,580		43,258
Total accounts payable and accrued liabilities	$	378,037	$	437,384

Other, net (in thousands)

Other, net in the Company's consolidated statements of operations for the three months ended March 31, 2023, included $17.8 million related to the interim TC claim distribution as discussed in Note 9. The timing and amount of any future distributions to Gulfport are not certain, and the total amount will be impacted by the liquidating trust's distributions and resolution of other remaining bankruptcy claims. Additionally, as discussed in Note 9, Other, net includes a $1 million cash payment to satisfy the Rover administrative claim.

Other, net in the Company's consolidated statements of operations for the three months ended March 31, 2022, included $11.5 million related to the initial TC claim distribution as discussed in Note 9.

Supplemental Cash Flow and Non-Cash Information (in thousands)


	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
Supplemental disclosure of cash flow information:
Interest payments, net of amounts capitalized	$	2,353	$	2,110
Changes in operating assets and liabilities:
Decrease in accounts receivable - oil and natural gas sales	$	158,541	$	25,985
Increase in accounts receivable - joint interest and other	(1,837)		(17,722)
(Decrease) increase in accounts payable and accrued liabilities	(82,671)		2,135
Decrease in prepaid expenses	764		6,811
Increase in other assets	(38)		(17)
Total changes in operating assets and liabilities	$	74,759	$	17,192
Supplemental disclosure of non-cash transactions:
Capitalized stock-based compensation	$	864	$	597
Asset retirement obligation capitalized	$	—	$	16
Asset retirement obligation removed due to divestiture	$	(919)	$	—
Release of common stock held in reserve	$	—	$	28,220
Interest capitalized	$	824	$	—