Benzinga | May 18, 2021 08:12AM EDT

Gulfport Energy Reports Successful Completion Of Its Restructuring Process, Emergence From Chapter 11 Bankruptcy Protection



Names New Board of Directors and Leadership Team

Emerges from Bankruptcy with Greatly Improved Balance Sheet and Cost Structure; Poised to Deliver Sustainable Free Cash Flow Generation and Shareholder Returns

OKLAHOMA CITY--(BUSINESS WIRE)-- Gulfport Energy Corporation (NYSE:GPOR) (the "Company" and together with its wholly owned subsidiaries, "Gulfport") today announced that it has successfully completed its restructuring process and emerged from chapter 11 protection. As contemplated by Gulfport's Plan of Reorganization (the "Plan") that was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on April 28, 2021, Gulfport has exited bankruptcy with a new Board of Directors; a strengthened balance sheet, with $853 million of total debt representing more than $1.2 billion of deleveraging through the Chapter 11 process; and approximately $135 million of liquidity. At emergence, Gulfport's net-debt-to-EBITDA is approximately 1.5x. Please refer to Gulfport's emergence presentation for more details which will be provided in a Form 8-K and can also be found on the Company's Investor Relations site: https://ir.gulfportenergy.com.

New Board of Directors and Leadership Team

In accordance with the Plan, the Company has appointed a new Board of Directors effective immediately. The Board is comprised of five new directors who are experienced industry professionals: Timothy J. Cutt (Chairman), David Wolf (Lead Independent Director), Guillermo "Bill" Martinez, Jason Martinez and David Reganato. Biographies for the directors can be found on the Company's website at: https://www.gulfportenergy.com/about/board-of-directors.

The Company also announced the retirement of David M. Wood, the Company's President and Chief Executive Officer effective immediately. Additionally, Quentin Hicks, Gulfport's Chief Financial Officer, has resigned effective immediately to pursue other opportunities. The Board has appointed Chairman Timothy J. Cutt as Interim Chief Executive Officer and William "Bill" J. Buese as Chief Financial Officer. Mr. Cutt will serve in the interim position at least through year end 2021 and the Board will conduct a search for a permanent CEO at the appropriate time.

Message from Timothy J. Cutt, Chairman and Interim Chief Executive Officer

"We want to thank Dave, Quentin and the departing Gulfport Board for their leadership through a complex and challenging Chapter 11 process. Gulfport is emerging from its successful restructuring having materially improved its balance sheet and midstream cost structure, which leaves Gulfport well-positioned for future success. Today, we begin a new chapter at Gulfport with a strategy focused on continuing to reduce costs and generating sustainable free cash flow in an effort to drive shareholder value. In addition, we are committed to an emphasized focus on sustainability, and Gulfport will continue to prioritize safety, environmental stewardship, and maintaining strong relationships with the communities in which we operate."

"I also want to thank the entire Gulfport workforce for their hard work and commitment to the Company and each other through the restructuring process."

Listing on the NYSE

Gulfport's new common shares will be listed on the NYSE under the ticker symbol "GPOR" and is expected to commence trading on May 18, 2021.

Details of the restructuring, the securities issued pursuant to the Plan and the debt and other agreements entered into as part of the Plan will be provided in a Form 8-K which can be viewed on the Company's website or the Securities and Exchange Commission's website at www.sec.gov.

Advisors

Kirkland & Ellis LLP and Jackson Walker L.L.P. served as legal co-counsel, Perella Weinberg Partners and its affiliate, Tudor Pickering Holt & Co. served as financial advisors, and Alvarez & Marsal served as restructuring advisor to the Company.