Gulfport Energy Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2025

Basic income or loss per share attributable to common stockholders is computed as (i) net income or loss less (ii) dividends paid to holders of preferred stock less (iii) net income or loss attributable to participating securities divided by (iv) weighted average basic shares outstanding. Diluted net income or loss per share attributable to common stockholders is computed as (i) basic net income or loss attributable to common stockholders plus (ii) diluted adjustments to income allocable to participating securities divided by (iii) weighted average diluted shares outstanding. The “if-converted” method is used to determine the dilutive impact for the Company's convertible preferred stock and the treasury stock method is used to determine the dilutive impact of unvested restricted stock.

During the year ended December 31, 2025, the Company redeemed 2,449 shares of preferred stock for cash totaling $31.3 million. Additionally, direct transaction-related costs of $1.1 million were incurred as part of the redemption. The excess of the cash settlement and direct transaction-related costs over the carrying value of the redeemed shares of preferred stock, totaling approximately $29.9 million, was treated as a deemed dividend and recorded as a reduction to retained earnings. The deemed dividend reduced net income available to common shareholders and impacted both basic and diluted earnings per share.

Restricted stock awards resulted in 0.2 million dilutive shares for the year ended December 31, 2025, 0.3 million anti-dilutive shares for the year ended December 31, 2024, and 0.3 million dilutive shares year ended December 31, 2023. There were 2.7 million and 3.2 million potential shares of common stock issuable due to the Company's convertible preferred stock for the years ended December 31, 2024 and 2023, respectively. The Company redeemed all outstanding preferred stock during the year ended December 31, 2025.

Reconciliations of the components of basic and diluted net income (loss) per common share are presented in the table below (in thousands):


	Year Ended December 31, 2025		Year Ended December 31, 2024		Year Ended December 31, 2023
Net income (loss)	$	427,810	$	(261,386)	$	1,470,916
Dividends on preferred stock	(1,666)		(4,230)		(4,840)
Deemed dividend on preferred stock(1)	(29,986)		—		—
Participating securities - preferred stock(2)	—		—		(212,360)
Net income (loss) attributable to common stockholders	$	396,158	$	(265,616)	$	1,253,716
Re-allocation of participating securities	—		—		2,475
Diluted net income (loss) attributable to common stockholders	$	396,158	$	(265,616)	$	1,256,191
Basic Shares	18,223		18,050		18,645
Dilutive Shares	18,440		18,050		18,902
Basic EPS	$	21.74	$	(14.72)	$	67.24
Dilutive EPS	$	21.48	$	(14.72)	$	66.46

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(1) Reflects the difference between the carrying value of the preferred stock and the cash settlement upon redemption, including $1.1 million in direct transaction-related costs.

(2) Preferred stock represents participating securities because it participates in any dividends on shares of common stock on a pari passu, pro rata basis. However, preferred stock does not participate in undistributed net losses.