Gulfport Energy Q2 Output Hits Record, Cash Flow Jumps 39%

Gulfport Energy posted record second-quarter production and a 39% jump in adjusted free cash flow, driven by higher natural gas volumes and a tight rein on costs in the Utica Shale.

Production averaged 1,199 million cubic feet equivalent per day, up 7% from a year earlier and above the midpoint of Gulfport's guidance range. The company credited better-than-expected well performance in Ohio and a faster pace of completions through the spring.

Adjusted free cash flow reached $103 million, compared with $74 million in the same quarter last year. That came even as realized natural gas prices slipped 11% to $2.70 per thousand cubic feet, reflecting a softer market for 2026 baseload deliveries. Gulfport locked in hedges on roughly 70% of its second-half output at an average floor price of $3.05, which should buffer further downside.

Domenic Dell'Osso, Gulfport's CEO, said the company is sticking to its single-rig program in the Utica and has no plans to add activity even if gas prices rally. "We are not going to chase the commodity," he told analysts on the earnings call. "Our plan works at $2.50 gas. Anything above that is upside."

Capital spending totaled $92 million in the quarter, within the guided range. Gulfport left its full-year capex plan unchanged at $370 million to $410 million. The company's net debt fell to $1.1 billion, its lowest level since emerging from bankruptcy in 2022.

Matthew Rucker, Gulfport's chief operating officer, said the company drilled 10 wells and turned 11 to sales in the quarter, with average lateral lengths exceeding 10,000 feet. Cycle times from spud to first sales have compressed by roughly 15% compared with last year, he said.

Gulfport has not issued any equity this year and has no near-term debt maturities until 2028. The company bought back $25 million in shares during the quarter, part of a $150 million repurchase authorization that expires in mid-2027.

Analysts on the call pressed Dell'Osso on whether Gulfport would consider an acquisition in the Appalachian Basin if valuations fall further. He said the company would be "disciplined" and that any deal would need to compete with share buybacks on a return basis.

Gulfport's shares have fallen 18% this year, in line with a broader selloff in natural gas producers as the forward curve weakened. The stock trades at roughly 6.5 times estimated 2026 cash flow, a discount to peers such as Range Resources and EQT Corp.

The company's record production and cash flow growth in a lower-price environment suggest the current operating plan is generating returns even at depressed strip prices. The key variable for 2027 is whether Gulfport holds output flat or begins a modest decline. Dell'Osso said the board will review the 2027 plan in October.

For more context on Gulfport's positioning, see the GPOR stock page.