Breaking Down Gulfport Energy Corporation (GPOR) Financial Health: Key Insights for Investors

You are looking at Gulfport Energy Corporation (GPOR) and seeing a natural gas producer that is defintely generating significant cash, but you need to know if the underlying value supports the stock's recent run. The headline numbers from the 2025 fiscal year are compelling: analysts project full-year revenue to hit around $1.37 billion and estimate the company could generate a massive $667 million in free cash flow (FCF) at current strip prices, translating to over $30 per share in FCF before discretionary spending. That's a serious amount of capital being generated. Plus, Gulfport is using that cash to aggressively return value, planning to allocate approximately $125 million to common stock repurchases in the fourth quarter of 2025 alone, all while maintaining a strong balance sheet with a net leverage ratio at or below one times. But, what this estimate hides is the volatility in natural gas prices and the risk of midstream outages that impacted Q2 and Q3 production, even as they hit a Q3 net daily production of 1,119.7 MMcfe per day, an 11% increase over the prior quarter. We need to map this near-term operational risk against the long-term opportunity of their expanded inventory, which now includes roughly 700 gross locations across their Utica, Marcellus, and SCOOP assets.

Revenue Analysis

If you're looking at Gulfport Energy Corporation (GPOR), the direct takeaway is that their revenue trajectory in 2025 shows a significant rebound, driven by higher realized prices for their core product. The company's revenue is fundamentally tied to the price and volume of natural gas, and the latest figures reflect a strong upswing in that commodity cycle.

For the nine months ended September 30, 2025, Gulfport Energy Corporation reported total revenue of approximately $1,024.4 million, a substantial increase from the $718.26 million reported for the same period a year prior. That's a year-over-year revenue growth rate of about 42.63%. This isn't just noise; it's a clear signal that operational improvements and market pricing are converging favorably.

The primary revenue streams for Gulfport Energy Corporation are straightforward: the sale of hydrocarbons from their key operating regions, the Appalachia (Utica/Marcellus) and Anadarko (SCOOP) basins. Their business model is heavily weighted toward natural gas, which is the main driver of their top-line performance.

Here's the quick math on their production mix, which is a reliable proxy for the revenue breakdown in an Exploration & Production (E&P) company:

• Natural Gas: Approximately 88% of total production.
• Natural Gas Liquids (NGLs): Approximately 8% of total production.
• Oil and Condensate: Approximately 4% of total production.

The near-term opportunity here is clear: you are betting on the sustained strength of natural gas prices, particularly in the US. Honestly, the company is almost entirely a natural gas play.

The most significant change in the 2025 revenue stream is the dramatic year-over-year growth, primarily fueled by a surge in realized prices. For example, in the third quarter (Q3) of 2025 alone, Gulfport Energy Corporation's revenue reached $379.75 million, marking a nearly 49.56% jump from the $253.91 million reported in Q3 of the previous year. This revenue beat analyst expectations, indicating that the market underestimated the pricing power and operational efficiency gains. The increase in realized prices for natural gas-a 76% rise in the Henry Hub gas index in Q1 2025, for instance-is what translates directly to this revenue growth.

To put the 2025 performance into context, here is a comparison of their recent revenue figures:

What this estimate hides is the volitality of commodity markets; a sudden price drop could defintely erode that full-year projection. Still, the current trend is robust. For a deeper dive into the company's valuation, including a DCF analysis, you should check out our full report: Breaking Down Gulfport Energy Corporation (GPOR) Financial Health: Key Insights for Investors.

Finance: Track the realized natural gas price per Mcf (thousand cubic feet) against the Henry Hub benchmark weekly to map sensitivity to the $1.37 billion full-year revenue projection.

Profitability Metrics

You need to know if Gulfport Energy Corporation (GPOR) is turning its natural gas and liquids production into real profit, and the 2025 numbers show a significant, though volatile, swing toward strong margins. The key takeaway is that GPOR's net profitability is now outpacing industry averages, largely due to cost discipline and improved pricing, but the quarterly swings are something you must watch.

Here's the quick math on profitability for the first nine months of 2025, which tells a story of recovery and operational leverage. The company's year-to-date (YTD) revenues through Q3 2025 hit approximately $1.02 billion. That top-line growth is translating to solid bottom-line figures, with YTD net income attributable to common stockholders at $263.7 million.

Gross, Operating, and Net Margins

When we break down the margins-the real measure of a company's financial health-GPOR shows a powerful ability to control its direct production costs. Gross profit margin is your first line of defense, showing what's left after paying for the gas and oil out of the ground (lifting costs). For Q3 2025, with revenues of $379.7 million and per-unit production costs at approximately $1.21/Mcfe, we estimate the gross margin is sitting around a robust 67.2%. That is defintely a high-quality margin in the exploration and production (E&P) space.

Moving down the income statement, the operating profit margin (what's left before interest and taxes) shows a more mixed picture. Q1 2025 saw income from operations of only $12.0 million on $197.0 million in revenue, resulting in a thin operating margin of about 6.09%. This highlights the impact of non-production costs like depreciation and general expenses. Still, the adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) remained strong, consistently over $212 million in both Q2 and Q3 2025, which is the cash-flow metric most E&P investors care about.

The net profit margin-the ultimate measure-has been volatile but impressive. After a net loss of $0.5 million in Q1 2025, the company rebounded sharply, reporting a Q2 net income of $184.5 million and a Q3 net income of $111.4 million. This puts the Q3 net profit margin at approximately 29.34%. One analyst even cited a net margin of 52.34% as of June 30, 2025, which is an exceptional number that surpasses industry standards.

• Q1 2025 Net Margin: Nearly flat (-0.25% loss).
• Q3 2025 Net Margin: Strong rebound to 29.34%.
• Industry Comparison: GPOR's net margin of 52.34% (Q2 2025) surpasses industry standards.

Operational Efficiency and Cost Management

The trend in profitability is one of decisive operational improvement, which is a clear action item from management. They are getting better at drilling. For example, GPOR achieved significant drilling efficiencies in Q1 2025, with average drilling footage per day improving approximately 28% over the full year 2024 performance. This kind of efficiency directly lowers the all-in cost of a new well, which is what drives that high gross margin.

The company's focus on cost management is clear in the per-unit costs. The total per-unit production cost for Q3 2025, which includes Lease Operating Expense (LOE), taxes, and transportation, was just $1.21/Mcfe. Keeping these costs low is critical, especially in a volatile commodity price environment. This operational discipline, coupled with strategic hedging, is what allows their net margin to jump so far ahead of peers, even as they invest capital. You can see more on their strategic focus at Breaking Down Gulfport Energy Corporation (GPOR) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You want to know if Gulfport Energy Corporation (GPOR) is leaning too heavily on debt to fund its growth, and the short answer is no, not by industry standards. The company maintains a conservative and healthy balance sheet, prioritizing equity return through buybacks while keeping its financial leverage low. This is a deliberate strategy to create a more resilient capital structure.

As of the third quarter of 2025, Gulfport Energy Corporation's debt-to-equity (D/E) ratio stood at a very manageable 0.42. To put that into perspective, the average D/E ratio for the Oil and Gas Exploration and Production (E&P) sub-sector is typically around 0.50. This means Gulfport is using less debt relative to its equity than its typical peer, which is a strong indicator of financial stability and lower risk.

Here's the quick math on their core debt components as of September 30, 2025:

• Long-Term Debt: The main component is $650.0 million in outstanding 6.750% Senior Notes due 2029.
• Short-Term Debt: Borrowings under the revolving credit facility were only $51.0 million.
• Total Debt: Approximately $701.0 million.

The company's liquidity is also strong, with its borrowing base on the revolving credit facility reaffirmed at $1.1 billion in October 2025, with elected commitments of $1.0 billion. That's a huge cushion.

The company has been actively managing its debt profile. In September 2024, Gulfport Energy Corporation issued $650.0 million of 6.750% Senior Notes due 2029 to refinance a significant portion of its 8.0% Senior Notes due 2026, which is a smart move to push out maturity dates and lower interest costs. Also, in a move to simplify its capital structure, Gulfport completed the optional redemption of all its preferred stock in Q3 2025 for approximately $31.3 million. This is defintely a clean-up play.

The balance between debt and equity funding is clear: Gulfport Energy Corporation is self-funding its growth and returning capital to shareholders. Management is committed to maintaining financial leverage-specifically, its Debt to Adjusted EBITDA ratio-at or below an attractive 1x. This disciplined approach allows them to allocate substantial capital to equity, with plans to allocate approximately $325 million to common stock repurchases during the full year 2025. This strategy signals confidence in their cash flow generation and intrinsic value, making equity the preferred avenue for capital return, not just a funding source. You can read more about their corporate focus here: Mission Statement, Vision, & Core Values of Gulfport Energy Corporation (GPOR).

For a quick view of their capital structure health, consider this:

Finance: draft a comparison of Gulfport Energy Corporation's 2029 Senior Notes coupon rate to recent E&P peer issuances by next Tuesday.

Liquidity and Solvency

You're looking for a clear picture of Gulfport Energy Corporation's (GPOR) ability to meet its near-term obligations, and the quick answer is that while their traditional liquidity ratios look tight, their substantial, available credit facility is the real backstop. The company is intentionally managing a negative working capital position, but it's more of a financing strategy than a red flag.

The core of Gulfport Energy Corporation's financial health isn't just in the cash on hand; it's in their access to capital. As of September 30, 2025, the company's total liquidity was approximately $903.7 million, which is a massive cushion. This figure is comprised of only $3.4 million in cash and cash equivalents, plus a hefty $900.3 million in available borrowing capacity under their revolving credit facility. That's a strong safety net. The borrowing base was recently reaffirmed at $1.1 billion, so the banks are defintely comfortable with their asset base.

Current and Quick Ratios

When you look at the raw numbers for the current and quick ratios, you see a picture that might alarm a traditional manufacturing investor, but it's common for a financially-savvy exploration and production (E&P) company. Here's the quick math based on the September 30, 2025 balance sheet data:

• Current Ratio: 0.54 (Current Assets of $186.6 million / Current Liabilities of $345.5 million)
• Quick Ratio: Approximately 0.51 (Quick Assets $\approx$ $177.8 million / Current Liabilities of $345.5 million)

These ratios are below the 1.0 threshold that signals a company can cover its short-term debt with short-term assets. But in this case, the low ratio is largely due to the company's negative working capital of approximately -$158.9 million, which is a deliberate choice to efficiently manage cash and use their revolving credit facility for flexibility, rather than holding excess cash on the balance sheet.

Cash Flow Statements Overview

The cash flow statement for the first nine months of 2025 tells a much more positive story, showing the company is generating significant cash from its operations to fund its capital program and return capital to shareholders. This is what truly matters for an E&P company.

Here's a snapshot of the key cash flow trends through Q3 2025:

The operating cash flow is robust, easily covering the combined capital expenditures and the substantial stock repurchases. For example, in Q3 2025 alone, Gulfport Energy Corporation generated $209.1 million in net cash from operating activities, which more than funded its capital expenditures and share repurchases. This strong operational cash generation is the real source of liquidity, not the small cash balance.

Near-Term Liquidity Strengths and Actions

The primary strength is the massive, unused capacity on the revolving credit facility, which acts as a ready source of funds for any short-term needs. Gulfport Energy Corporation is actively using its cash flow for capital allocation, not hoarding it.

The company plans to allocate an additional $125 million toward common stock repurchases in the fourth quarter of 2025, which is a clear signal of management's confidence in its cash flow generation and balance sheet strength. They are prioritizing shareholder returns and strategic acreage acquisitions-like the approximately $15.7 million deployed for acreage acquisitions through Q3 2025-over maintaining a large cash balance. This is a growth-oriented, return-focused capital strategy. If you want to dive deeper into who is buying and why, you should check out Exploring Gulfport Energy Corporation (GPOR) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Gulfport Energy Corporation (GPOR) and wondering if the market has it right. My take is that GPOR is currently priced near fair value, but with a slight upside potential-a classic Moderate Buy situation, which is the consensus among analysts. The stock's recent performance has been strong, but the valuation metrics suggest the easy money has already been made, so you need to be defintely precise about your entry point.

Is Gulfport Energy Corporation (GPOR) Overvalued or Undervalued?

To figure out if Gulfport Energy Corporation (GPOR) is a buy, a hold, or a sell, we need to look past the headline stock price and dive into the multiples. Right now, the valuation metrics paint a picture of a company that is reasonably valued in the energy sector, especially when you consider its strong operational performance in the Appalachian and Anadarko basins.

Here's a quick look at the core valuation ratios based on the latest 2025 fiscal year data:

• Price-to-Earnings (P/E): The Forward P/E ratio is 8.90.
• Price-to-Book (P/B): The P/B ratio stands at 2.25.
• Enterprise Value-to-EBITDA (EV/EBITDA): This multiple is 6.55.

The Forward P/E of 8.90 is a good sign; it's lower than the broader market and suggests that GPOR's future earnings are not overly discounted. However, the trailing P/E is negative (-29.47) due to a net loss in the third quarter of 2025, which is a key nuance. You must focus on the forward-looking metrics here. An EV/EBITDA of 6.55 is also quite reasonable for an exploration and production (E&P) company, indicating the enterprise value isn't bloated compared to its operating cash flow proxy.

Stock Price Trends and Analyst Consensus

The stock has had a solid run over the last 12 months. The 52-week trading range for Gulfport Energy Corporation (GPOR) is between a low of $153.27 and a high of $215.57. The stock's recent price, sitting around $211.63 as of November 2025, is near its 12-month high. This represents a substantial increase of about 30.17% over the last year, which shows strong investor confidence in its natural gas-weighted strategy.

The Wall Street consensus echoes this balanced view. Out of 12 analysts covering the stock, the rating is a 'Moderate Buy.' Specifically, six analysts rate it a Buy, one a Strong Buy, and five a Hold. The average 12-month price target is set at $221.25. Here's the quick math: that target implies an upside of about 5.05% from the current price, suggesting a limited but clear runway for appreciation.

Dividend Policy and Shareholder Return

If you are an income investor, Gulfport Energy Corporation (GPOR) is not for you. The company does not currently pay a common stock dividend. Its trailing twelve-month (TTM) dividend yield is 0.00%, and the payout ratio is not applicable. This is common for E&P companies that prioritize capital expenditure and debt reduction over shareholder distributions, especially given its recent restructuring. The focus here is on capital appreciation, not income.

The company's shareholder return strategy is centered on share repurchases instead of a cash dividend. This is a capital allocation decision that favors reducing the share count and boosting earnings per share (EPS), which can be more tax-efficient for some investors. What this estimate hides is the potential for a future dividend, but for now, it's a growth and buyback story.

Risk Factors

You're looking for the clear-eyed view of what could derail Gulfport Energy Corporation (GPOR)'s strong 2025 performance, and the biggest risk is still the one you can't fully control: commodity price volatility. The company is heavily weighted toward natural gas, so any significant downturn in prices will hit revenue and profitability hard. Still, GPOR is not sitting still; they are actively managing this exposure.

External and Market Risks: The Price of Natural Gas

Gulfport Energy Corporation's financial health is inherently tied to the volatile market for natural gas. As a natural gas-weighted exploration and production company, a major drop in commodity prices could severely impact their cash flow, even with their recent financial resilience. For the nine months ended September 30, 2025, GPOR reported total revenues of $1,024.4 million, a significant rise from the previous year, but this is a direct reflection of the current market environment. If the price curve flattens or dips, that revenue growth is immediately at risk.

To mitigate this, GPOR employs a disciplined hedging strategy, using derivative instruments (like swaps and collars) to lock in a floor price for a portion of its production. This strategy paid off in the third quarter of 2025, where the net gain on natural gas, oil, and natural gas liquids (NGL) derivatives was a substantial $66.8 million. This is your safety net, but remember, hedging limits the upside when prices skyrocket. GPOR typically hedges between 30% to 70% of its forecasted current year annual production.

• Commodity Price Volatility: Natural gas prices are a constant threat.
• Regulatory Changes: New environmental or drilling regulations could raise operating costs.
• Industry Competition: Fierce competition from other natural gas producers pressures margins.

Operational and Financial Risks

Beyond the market itself, GPOR faces operational and financial hurdles that require constant attention. A key operational risk highlighted in the 2025 reports is the reliance on third-party midstream infrastructure (pipelines, processing plants). In the second quarter of 2025, unplanned third-party midstream outages and constraints negatively impacted GPOR's net daily production by approximately 40 million cubic feet equivalent per day (MMcfe per day). That's a tangible hit to volume.

On the financial side, while GPOR has a strong liquidity position of approximately $903.7 million as of September 30, 2025, and a manageable leverage ratio of 0.81x, managing its debt load remains a challenge. For the nine months ended September 30, 2025, the company incurred $40.7 million in interest expense. You need to watch that expense, especially if interest rates fluctuate.

Strategic Risks and Actionable Insight

A strategic risk to watch is the execution of their capital allocation plan, which heavily favors shareholder returns. GPOR is committed to returning substantially all of its adjusted free cash flow to shareholders, primarily through stock repurchases, with approximately $715.0 million remaining capacity under the program as of September 30, 2025. This is great for per-share metrics, but it limits the capital flexibility for rapid deleveraging or large, unexpected strategic acquisitions if market conditions defintely worsen. You can read more about their priorities here: Mission Statement, Vision, & Core Values of Gulfport Energy Corporation (GPOR).

Here's the quick math: GPOR's focus on returns means less cash immediately available for opportunistic growth outside of their planned $75 million to $100 million discretionary acreage acquisitions. The company's proactive spend of approximately $35 million toward discretionary development in late 2025 to mitigate 2026 production impacts is a smart move, showing they are focused on execution. Your next step is to track their Q4 2025 production volumes against their full-year guidance to see if these mitigation efforts are working.

Growth Opportunities

You're looking at Gulfport Energy Corporation (GPOR) and wondering where the next dollar of growth comes from, especially in a volatile natural gas market. The immediate takeaway is this: Gulfport is prioritizing capital discipline and shareholder returns over aggressive, unbridled production growth, but they are still strategically expanding their core asset base and testing new drilling concepts. This is a trend-aware, realist approach.

Their future revenue is underpinned by a stable production profile and targeted inventory expansion. For the full fiscal year 2025, the consensus revenue estimate sits around $1.37 billion, with earnings projected at approximately $23.18 per share. These estimates reflect a focus on efficiency, not just volume, which is a key distinction from past cycles.

Here's the quick math on their strategic growth drivers-it's about depth, not just breadth:

• Inventory Expansion: Gulfport plans to invest $75 million to $100 million on discretionary acreage acquisitions by the first quarter of 2026, which is expected to extend their net inventory by an incremental two years. They had already deployed $15.7 million of this capital by the end of Q3 2025.
• Product Innovation: They are investing approximately $30 million in appraisal capital for 2025. This includes successfully drilling two 'U-development' wells in the Utica, a key technical test that unlocked 20 gross Utica dry gas locations. They also doubled their net drillable inventory in the Ohio Marcellus by extending resource viability northward.
• Production Growth: Total net production for the full year 2025 is forecast to be around 1.04 Bcfe per day, with natural gas comprising about 89% of that volume. This is a measured, high-margin growth plan, not a volume race.

The biggest strategic initiative, though, is the commitment to shareholder value through capital returns. The company has a massive $1.5 billion equity repurchase program authorized, and as of September 30, 2025, they had already deployed approximately $785 million. This aggressive buyback program is defintely a core part of the investment thesis, signaling management's confidence in their intrinsic value.

Gulfport Energy Corporation (GPOR) maintains a strong competitive advantage through its low-cost structure and high-quality asset base across the Utica, Marcellus, and SCOOP plays. Their economic inventory has break-even costs under $2.50 per MMBtu, which provides a significant buffer against natural gas price volatility. Plus, their strategic use of derivative instruments to hedge commodity prices resulted in a net gain of $66.8 million in Q3 2025, securing predictable cash flow. This financial discipline is what separates the long-term winners in the exploration and production (E&P) space.

For a deeper dive into who is betting on this strategy, you should read Exploring Gulfport Energy Corporation (GPOR) Investor Profile: Who's Buying and Why?

Here is a summary of the 2025 financial outlook and capital allocation:

The company is clearly focused on a capital returns model, using its strong free cash flow to shrink the share count while making small, accretive investments in its inventory. This is a low-risk, high-return strategy in the current commodity environment.