Gulfport Energy Q3 2026 Production Rises 10% as Liquids Jump

Gulfport Energy Corp. (NYSE: GPOR) reported a roughly 10% sequential increase in third-quarter 2026 production, driven by new liquids-rich Utica pads, while reaffirming its full-year production and capital-spending guidance. Liquids output climbed about 67% from the second quarter, giving the natural gas producer a larger contribution from oil and natural gas liquids during the period.

Total net production averaged 1.06 Bcfe per day in the quarter, including 23.5 MBbl per day of liquids, which represented about 13% of total volumes. Appalachia remained Gulfport’s largest producing region, with approximately 890 MMcfe per day from the Utica and Marcellus, while the SCOOP contributed about 168 MMcfe per day.

GAAP net income was $96.4 million, down from $111.4 million a year earlier. Adjusted EBITDA, a non-GAAP measure, increased to $226.5 million from $213.1 million. Net cash provided by operating activities declined to $183.6 million from $209.1 million.

Adjusted free cash flow was $89.0 million, compared with $103.4 million in the third quarter of 2025. The measure excludes discretionary acreage acquisitions and share repurchases. Incurred capital expenditures excluding those acreage purchases totaled $111.7 million for the quarter.

For the first nine months of 2026, Gulfport generated $214.3 million of adjusted free cash flow, up from $204.6 million in the comparable 2025 period. The company estimates full-year adjusted free cash flow will increase by more than 15% from 2025 under a flat-price scenario of $3 per MMBtu for natural gas and $80 per barrel for oil.

Utica activity lifts liquids volumes

The quarter’s production growth was led by liquids-rich Utica development. Gulfport’s 2026 plan calls for drilling 18 gross Utica wells and turning 20 gross wells to sales. In the Marcellus, the company expects to drill six gross wells and turn four to sales during the year. Gulfport has completed its 2026 SCOOP development program, including two gross wells brought online.

The company said its inventory exceeds 700 estimated gross operated locations, up more than 40% since the end of 2022 through acreage acquisitions, Marcellus delineation and development optimization. Gulfport estimates that its portfolio includes about 13 years of high-quality net locations with break-even prices below $2.50 per MMBtu, based on a continuous two-rig development cadence and the assumptions detailed in the presentation.

Gulfport completed $83.0 million of Ohio state land lease acquisitions and spent another $46.9 million on discretionary acreage acquisitions during the quarter. It had invested $87.1 million toward its 2026 discretionary acreage program through September and said it remained on track to complete the planned $140 million program by year-end. The company expects the program to add about 40 net locations in core Utica wet-gas and dry-gas areas.

Marcellus delineation has also expanded the company’s estimated resource opportunity. Gulfport said peer activity and its own development results increased Marcellus inventory by about 200%, bringing estimated drillable inventory to approximately 95 to 105 net locations.

Full-year guidance maintained

Gulfport reaffirmed its 2026 production guidance of 1.030 Bcfe to 1.055 Bcfe per day, including liquids production of 18.0 MBbl to 21.0 MBbl per day. Natural gas is expected to account for about 89% of full-year volumes.

The company continues to expect approximately $430 million of total capital expenditures, comprising about $395 million of operated drilling and completion spending and roughly $35 million for maintenance land and seismic activity.

Management is evaluating a continuous two-rig Appalachia program beginning in 2027. Gulfport said the approach could reduce idle capital, lower drilling and completion costs per foot and support production growth beginning in 2028. The near-term mix of wells turned to sales is expected to remain weighted toward liquids-rich areas. The program remains under evaluation rather than a confirmed development plan.

Gulfport also signed a supply agreement covering 50,000 MMBtu per day for Midwest demand, bringing premium-priced supply contracts to about 10% of forecast net production. In addition, it secured an electric fracturing fleet for Appalachia that is expected to begin operating in mid-2027.

Share repurchases and balance sheet

The company repurchased approximately $36.2 million of common stock during the third quarter and expanded its repurchase authorization by 33% to $2.0 billion. Since the program began, Gulfport had repurchased approximately $1.2 billion of stock through Sept. 30, retiring about 8.8 million shares at an average price of $135.84. Roughly $800 million remained available under the authorization.

At quarter-end, Gulfport had about $646 million of liquidity, including $2.6 million of cash and $643.1 million of borrowing-base availability. Debt consisted of $419 million of credit-facility borrowings and $650 million of senior notes due in 2029. Net debt to trailing-12-month adjusted EBITDA was approximately 1.17 times. The company’s $1.1 billion borrowing base was reaffirmed in its fall redetermination.

Gulfport’s outlook remains sensitive to commodity prices, development costs, well performance, transportation constraints and the availability of drilling services and equipment. The company also identified U.S. trade policy, the war in Ukraine, Middle East conflicts and potential disruption in the Strait of Hormuz among factors that could affect its business and the broader economy. Production forecasts depend in part on assumed decline rates and future drilling activity, while reserve estimates may change as additional operating and geological data become available.