GlobeNewswire Inc | Aug 4, 2020 04:01PM EDT

August 04, 2020

OKLAHOMA CITY, Aug. 04, 2020 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (NASDAQ: GPOR) (Gulfport or the Company) today reported financial and operational results for the three months and six months ended June30, 2020 and provided an update on its 2020 activities. Key highlights are as follows:

-- Continued improvement in well costs with Utica Shale and SCOOP total costs per lateral foot for the six-month period declining by 18% and 31%, respectively, versus full year 2019 levels -- Reported net loss of $561.1 million, or $3.51 per diluted share for the second quarter -- Reported adjusted net income (non-GAAP) of $47.1 million, or $0.29 per diluted share for the second quarter -- Generated adjusted EBITDA (non-GAAP) of $145.0 million for the second quarter -- Reported cash provided by operating activities of $116.4 million for the second quarter -- Generated operating cash flow (non-GAAP), excluding working capital changes, of $97.9 million for the second quarter -- Generated free cash flow (non-GAAP) of $43.9 million for the second quarter

See the supplemental tables at the end of this press release for a reconciliation of non-GAAP measures including adjusted net income, EBITDA, adjusted EBITDA, operating cash flow and free cash flow.

2020 Capital ExpendituresThe Company's incurred capital expenditures during the second quarter of 2020 benefited from continued improvement in drilling and completions operations, efficiency gains and lower service costs. During the second quarter of 2020, Gulfport's incurred total capital expenditures were $54.0 million. Gulfports incurred total capital expenditures includes approximately $51.7 million of drilling and completion (D&C) capital expenditures and $2.3 million of land capital expenditures.

For the six-month period ended June30, 2020, Gulfport's incurred total capital expenditures were $189.3 million. Gulfports incurred total capital expenditures includes approximately $182.5 million of D&C capital expenditures and $6.8 million of land capital expenditures.

2020 Operational UpdateAs a result of the current commodity price environment, during the second quarter of 2020 Gulfport made the strategic decision to defer near-term production to later periods in 2020 and early 2021, when natural gas prices are expected to be higher. In addition, Gulfport now plans to complete an additional 7 gross wells in the Utica Shale in the second half of 2020. This additional activity provides incremental production late this year and into early 2021 in the anticipation of higher prices during the winter months. Gulfport expects minimal impact to full year 2020 production levels from this activity and reaffirms its 2020 full year net production to average 1,000 MMcfe to 1,075 MMcfe per day. In addition, based on current pricing levels, Gulfport forecasts its third quarter of 2020 production to average approximately 980 MMcfe to 1,030 MMcfe per day.

Efficient operations and continued improvements in drilling and completions costs allows Gulfport to add this incremental activity projecting 2020 total capital expenditures to be at the low-end of the previously provided range of $285 million to $310 million.

Balance Sheet and LiquidityAs of June 30, 2020, the Companys liquidity totaled approximately $255.7 million, comprised of the $700 million borrowing base plus approximately $2.8 million in cash on hand less $324.1 million outstanding letters of credit and $123.0 million of revolver draw.

Production and Realized PricesGulfports net daily production for the second quarter of 2020 averaged approximately 1,027 MMcfe per day. For the second quarter of 2020, Gulfports net daily production mix was comprised of approximately 91% natural gas, 6% natural gas liquids ("NGL") and 3% oil. For the three-month period ended June30, 2020, key realized price highlights are as follows:

-- Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $1.02 per Mcf, a $0.70 per Mcf differential to the average trade month NYMEX settled price -- Realized oil price, before the impact of derivatives and including transportation costs, averaged $20.14 per barrel, a $7.71 per barrel differential to the average WTI oil price -- Realized natural gas liquids, before the impact of derivatives and including transportation costs, averaged $0.25 per gallon, equivalent to $10.29 per barrel, or approximately 37% of the average WTI oil price

For the six-month period ended June30, 2020, key realized price highlights are as follows:

-- Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $1.14 per Mcf, a $0.70 per Mcf differential to the average trade month NYMEX settled price -- Realized oil price, before the impact of derivatives and including transportation costs, averaged $33.26 per barrel, a $3.71 per barrel differential to the average WTI oil price -- Realized NGL price, before the impact of derivatives and including transportation costs, averaged $0.31 per gallon, equivalent to $12.91 per barrel, or approximately 35% of the average WTI oil price

GULFPORT ENERGY CORPORATIONPRODUCTION SCHEDULE(Unaudited) Three months ended Six months ended June 30, June 30,Production 2020 2019 2020 2019Volumes: Natural gas (MMcf) 84,988 111,603 171,047 213,682 Oil (MBbls) 417 649 948 1,261 NGL (MGal) 41,829 57,189 88,346 113,019 Gas equivalent 93,463 123,668 189,359 237,394 (MMcfe)Gas equivalent 1,027,065 1,358,989 1,040,432 1,311,567 (Mcfe per day) Average Realized Prices(after deducts for transportation costs and before the impact of derivatives): Natural gas (per $ 1.02 $ 2.02 $ 1.14 $ 2.35 Mcf)Oil (per Bbl) $ 20.14 $ 56.85 $ 33.26 $ 55.03 NGL (per Gal) $ 0.25 $ 0.45 $ 0.31 $ 0.51 Gas equivalent $ 1.13 $ 2.33 $ 1.34 $ 2.65 (per Mcfe) Average Realized Prices:(after deducts for transportation costs and including cash-settlement ofderivatives): Natural gas (per $ 2.01 $ 2.20 $ 1.99 $ 2.32 Mcf)Oil (per Bbl) $ 117.26 $ 57.42 $ 85.93 $ 55.34 NGL (per Gal) $ 0.25 $ 0.51 $ 0.31 $ 0.55 Gas equivalent $ 2.46 $ 2.52 $ 2.37 $ 2.64 (per Mcfe)

The table below summarizes Gulfports second quarter of 2020 production by asset area:

GULFPORT ENERGY CORPORATIONPRODUCTION BY AREA(Unaudited) Three months ended Six months ended June 30, June 30, 2020 2020 2020 2019Utica Shale Natural gas (MMcf) 70,531 92,301 142,037 178,002 Oil (MBbls) 28 57 82 122 NGL (MGal) 9,676 20,827 21,897 44,163 Gas equivalent (MMcfe) 72,082 95,616 145,657 185,044 Gas equivalent (Mcfe per 792,106 1,050,724 800,313 1,022,341 day) SCOOP Natural gas (MMcf) 14,452 19,283 29,002 35,649 Oil (MBbls) 381 446 852 844 NGL (MGal) 32,146 36,342 66,443 68,822 Gas equivalent (MMcfe) 21,330 27,149 43,604 50,543 Gas equivalent (Mcfe per 234,396 298,343 239,583 279,243 day) Other Natural gas (MMcf) 5 19 8 31 Oil (MBbls) 8 147 15 295 NGL (MGal) 7 19 6 34 Gas equivalent (MMcfe) 51 903 97 1,807 Gas equivalent (Mcfe per 563 9,922 536 9,983 day)

Operational Update The table below summarizes Gulfport's activity for the three-month and six-month period ended June30, 2020:

GULFPORT ENERGY CORPORATIONACTIVITY SUMMARY(Unaudited) Three months ended Three months ended March 31, June 30, Guidance 2020 2020 2020Net Wells Spud Utica - Operated 7.0 4.1 15SCOOP - Operated 4.5 0.7 8Total 11.5 4.8 Net Wells Completed Utica - Operated 15.0 7.0 SCOOP - Operated 3.8 ? Total 18.8 7.0 Net Wells Turned-to-Sales Utica - Operated 3.0 10.0 25SCOOP - Operated 3.8 ? 4Total 6.8 10.0

Utica ShaleIn the Utica Shale, during the second quarter of 2020, Gulfport spud five gross (4.1 net) operated wells. The wells drilled during this period had an average lateral length of approximately 8,300 feet. In addition, Gulfport turned-to-sales 10 gross (10 net) operated wells with an average stimulated lateral length of approximately 9,500 feet.

For the six-month period ended June30, 2020, Gulfport spud 12 gross (11.1 net) operated wells. The wells drilled during this period had an average lateral length of approximately 9,500 feet. Normalizing to an 8,000 foot lateral length, Gulfport's average drilling days from spud to rig release totaled approximately 18.5 days, an improvement of 6% from the 2019 average. In addition, Gulfport turned-to-sales 13 gross (13 net) operated wells with an average stimulated lateral length of approximately 10,800 feet. Total well costs per lateral foot were $915 in the six-month period ended June30, 2020, an improvement of 18% versus full year 2019 levels.

At present, Gulfport has one operated drilling rig running in the play and expects to continue running one rig through the third quarter of 2020.

SCOOPIn the SCOOP, during the second quarter of 2020, Gulfport spud one gross (0.7 net) operated well which had an average lateral length of approximately 9,200 feet.

For the six-month period ended June30, 2020, Gulfport spud six gross (5.2 net) operated wells. The wells drilled during this period had an average lateral length of approximately 9,400 feet. Normalizing to an 8,000 foot lateral length, Gulfport's average drilling days from spud to rig release totaled approximately 37.0 days, an improvement of 32% from the 2019 average. Total well costs per lateral foot were $1,065 in the six-month period ended June30, 2020, an improvement of 31% versus full year 2019 levels.

At present, Gulfport has one operated drilling rig running in the play and expects to continue running one rig for the remainder of 2020.

DerivativesThe table below details the Company's hedging positions as of August 4, 2020:

GULFPORT ENERGY CORPORATIONCOMMODITY DERIVATIVES - HEDGE POSITION(Unaudited) 3Q2020 4Q2020 Natural Gas: Swap Contracts (NYMEX) Volume (BBtupd) 378 470 Price ($ per MMBtu) $ 2.87 $ 2.71 Basis Swap Contracts (OGT) Volume (BBtupd) 10 10 Differential ($ per MMBtu) $ (0.54 ) $ (0.54 ) Basis Swap Contracts (Transco Zone 4) Volume (BBtupd) 60 60 Differential ($ per MMBtu) $ (0.05 ) $ (0.05 ) Oil: Swap Contracts (WTI) Volume (Bblpd) 3,000 3,000 Price ($ per Bbl) $ 35.49 $ 35.49 NGL: C3 Propane Swap Contracts Volume (Bblpd) 1,500 1,500 Price ($ per Gal) $ 0.48 $ 0.48 2020(1) 2021 2022 2023Natural Gas: Swap Contracts (NYMEX) Volume (BBtupd) 424 ? ? ? Price ($ per MMBtu) $ 2.78 $ ? $ ? $ ? Collars (NYMEX) Volume (BBtupd) ? 250 ? ? Weighted Average Floor Purchase Price $ ? $ 2.46 $ ? $ ? ($ per MMBtu)Weighted Average Ceiling Sold Price ($ $ ? $ 2.81 $ ? $ ? per MMBtu) Call Option Contracts Sold (NYMEX) Volume (BBtupd) ? ? 628 628 Price ($ per MMBtu) $ ? $ ? $ 2.90 $ 2.90 Basis Swap Contracts (OGT) Volume (BBtupd) 10 ? ? ? Differential ($ per MMBtu) $ (0.54 ) $ ? $ ? $ ? Basis Swap Contracts (Transco Zone 4) Volume (BBtupd) 60 ? ? ? Differential ($ per MMBtu) $ (0.05 ) $ ? $ ? $ ? Oil: Swap Contracts (WTI) Volume (Bblpd) 3,000 ? ? ? Price ($ per Bbl) $ 35.49 $ ? $ ? $ ? NGL: C3 Propane Swap Contracts Volume (Bblpd) 1,500 ? ? ? Price ($ per Gal) $ 0.48 $ ? $ ? $ ? (1) July 1 - December 31, 2020

PresentationAn updated presentation has been posted to the Companys website. The presentation can be found at www.gulfportenergy.com under the Company Information section on the Investor Relations page. Information on the Companys website does not constitute a portion of this press release.

Conference Call Gulfport will host its second quarter of 2020 earnings conference call onWednesday, August5, 2020 at 9:00 a.m. Central Time.

Interested parties may listen to the call via Gulfports website at www.gulfportenergy.com or by calling toll-free at 866-373-3408 or 412-902-1039 for international callers. A replay of the call will be available for two weeks at 877-660-6853 or 201-612-7415 for international callers. The replay passcode is 13707137. The webcast will also be available for two weeks on the Companys website and can be accessed on the Companys Investor Relations page.

About GulfportGulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America and is one of the largest producers of natural gas in the contiguous United States. Headquartered in Oklahoma City, Gulfport holds significant acreage positions in the Utica Shale of Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. In addition, Gulfport holds non-core assets that include an approximately 22% equity interest in Mammoth Energy Services, Inc. (NASDAQ: TUSK) and has a position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC. For more information, please visit www.gulfportenergy.com.

Forward Looking StatementsThis press release includes forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Gulfport expects or anticipates will or may occur in the future, including such things as the expected impact of the COVID-19 pandemic on our business, our industry and the global economy, production and financial guidance, future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strength, goals, expansion and growth of Gulfports business and operations, plans, market conditions, references to future success, reference to intentions as to future matters and other such matters are forward-looking statements. These statements are based on certain assumptions and analyses made by Gulfport in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with Gulfports expectations and predictions is subject to a number of risks and uncertainties, general economic, market, credit or business conditions that might affect the opportunities (or lack thereof) that may be presented to and pursued by Gulfport; Gulfports ability to identify, complete and integrate acquisitions of properties and businesses; Gulfports ability to achieve the anticipated benefits of its strategic initiatives; competitive actions by other oil and gas companies; changes in laws or regulations; and other factors, many of which are beyond the control of Gulfport. Information concerning these and other factors can be found in the Companys filings with the Securities and Exchange Commission ("SEC"), including its Forms 10-K, 10-Q and 8-K. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and there can be no assurances that the actual results or developments anticipated by Gulfport will be realized, or even if realized, that they will have the expected consequences to or effects on Gulfport, its business or operations. Gulfport has no intention, and disclaims any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

Factors that could cause actual results to differ materially from expected results include those described under "Risk Factors" in Item 1A of our annual report on Form 10-K and any updates to those factors set forth in Gulfport's subsequent quarterly reports on Form 10-Q or current reports on Form 8-K (available at http://www.ir.gulfportenergy.com/all-sec-filings). These risk factors include the expected impact of the COVID-19 pandemic on our business; our ability to comply with the covenants under our revolving credit facilities and other indebtedness and the related impact on our ability to continue as a going concern, the volatility of oil, natural gas and NGL prices; the limitations our level of indebtedness may have on our financial flexibility; our inability to access the capital markets on favorable terms; the availability of cash flows from operations and other funds to finance our operations, fund our capital needs, respond to changing conditions and engage in other business activities that may be in our best interests; downgrades in our credit rating requiring us to post more collateral under certain commercial arrangements; significant reduction in our borrowing base under our revolving credit facility as a result of periodic borrowing base redeterminations; write-downs of our oil and natural gas asset carrying values due to low commodity prices; our ability to replace reserves and sustain production; uncertainties inherent in estimating quantities of oil, natural gas and NGL reserves and projecting future rates of production and the amount and timing of development expenditures; our ability to generate profits or achieve targeted results in drilling and well operations; failure to meet our firm commitment delivery obligations under our firm transportation contracts, which will result in fees and may have a material adverse effect on our operations; drilling and operating risks and resulting liabilities; numerous uncertainties in estimating quantities of bitumen reserves and resources in connection with our equity investment in Grizzly; leasehold terms expiring before production can be established; commodity derivative activities resulting in lower prices realized on oil, natural gas and NGL sales; the need to secure derivative liabilities and the inability of counterparties to satisfy their obligations; adverse developments or losses from pending or future litigation and regulatory proceedings; operating hazards and uninsured risks may result in substantial losses and could prevent us from realizing profits; limited control over properties we do not operate; recent decisions by the Ohio Supreme Court interpreting the Ohio Dormant Mineral Act relating to preservation of mineral rights by surface owners; impacts of potential legislative and regulatory actions addressing climate change; impacts of potential legislative and regulatory actions addressing climate change; effects of environmental protection laws and regulation on our business; federal and state tax proposals affecting our industry; competition in the oil and gas exploration and production industry; pipeline and gathering system capacity constraints and transportation interruptions; ability to dispose of nonstrategic assets on attractive terms; a deterioration in general economic, business or industry conditions; negative public perceptions of our industry; terrorist activities and cyber-attacks adversely impacting our operations; an interruption in operations at our headquarters due to a catastrophic event; failure to remediate material weakness and maintain effective internal controls; our inability to increase or maintain our liquidity through capital exchanges, or other means; change of control limiting our use of net operating losses to reduce future taxable income.

Investors should note that Gulfport announces financial information in SEC filings, press releases and public conference calls. Gulfport may use the Investors section of its website (www.gulfportenergy.com) to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on Gulfports website is not part of this filing.

Investor Contact:Jessica Antle Director, Investor Relationsjantle@gulfportenergy.com405-252-4550

Media ContactReevemarkPaul Caminiti / Hugh Burns / Nicholas Leasure212-433-4600

GULFPORT ENERGY CORPORATIONCONSOLIDATED BALANCE SHEETS

June 30, 2020 December 31, 2019 (Unaudited) (In thousands, except share data)Assets Current assets: Cash and cash equivalents $ 2,817 $ 6,060 Accounts receivable?oil and natural gas sales 65,645 121,210 Accounts receivable?joint interest and other 19,389 47,975 Prepaid expenses and other current assets 10,862 4,431 Short-term derivative instruments 53,188 126,201 Total current assets 151,901 305,877 Property and equipment: Oil and natural gas properties, full-costaccounting, $1,564,189 and $1,686,666 excluded 10,730,992 10,595,735 from amortization in 2020 and 2019, respectivelyOther property and equipment 96,838 96,719 Accumulated depletion, depreciation, amortization (8,457,464 ) (7,228,660 )and impairmentProperty and equipment, net 2,370,366 3,463,794 Other assets: Equity investments 13,052 32,044 Long-term derivative instruments 4,298 563 Deferred tax asset ? 7,563 Operating lease assets 3,640 14,168 Operating lease assets?related parties ? 43,270 Other assets 37,000 15,540 Total other assets 57,990 113,148 Total assets $ 2,580,257 $ 3,882,819 Liabilities and Stockholders? Equity Current liabilities: Accounts payable and accrued liabilities $ 315,575 $ 415,218 Short-term derivative instruments 8,540 303 Current portion of operating lease liabilities 3,356 13,826 Current portion of operating lease ? 21,220 liabilities?related partiesCurrent maturities of long-term debt 649 631 Total current liabilities 328,120 451,198 Long-term derivative instruments 45,615 53,135 Asset retirement obligation 61,371 60,355 Uncertain tax position liability 3,209 3,127 Non-current operating lease liabilities 284 342 Non-current operating lease liabilities?related ? 22,050 partiesLong-term debt, net of current maturities 1,910,318 1,978,020 Total liabilities 2,348,917 2,568,227 Commitments and contingencies Preferred stock, $0.01 par value; 5.0 millionshares authorized (30 thousand authorized as ? ? redeemable 12% cumulative preferred stock, SeriesA), and none issued and outstandingStockholders? equity: Common stock - $0.01 par value, 200.0 millionshares authorized, 160.1 million issued and 1,601 1,597 outstanding at June30, 2020 and 159.7 million atDecember31, 2019Paid-in capital 4,211,062 4,207,554 Accumulated other comprehensive loss (54,991 ) (46,833 )Accumulated deficit (3,926,332 ) (2,847,726 )Total stockholders? equity 231,340 1,314,592 Total liabilities and stockholders? equity $ 2,580,257 $ 3,882,819

GULFPORT ENERGY CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)

Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (In thousands, except share data)REVENUES: Natural gas sales $ 86,797 $ 225,257 $ 195,344 $ 501,273 Oil and condensate 8,390 36,910 31,541 69,392 salesNatural gas liquid 10,252 25,687 27,165 57,812 salesNet gain on naturalgas, oil and NGL 26,971 171,140 125,237 151,095 derivativesTotal Revenues 132,410 458,994 379,287 779,572 OPERATING EXPENSES: Lease operating 15,686 22,388 31,672 42,195 expensesProduction taxes 3,605 8,098 8,404 16,019 Midstream gatheringand processing 59,974 72,015 117,870 142,297 expensesDepreciation,depletion and 64,790 124,951 142,818 243,384 amortizationImpairment of oiland natural gas 532,880 ? 1,086,225 ? propertiesGeneral andadministrative 10,470 11,727 26,639 21,784 expensesAccretion expense 755 1,359 1,496 2,426 Total Operating 688,160 240,538 1,415,124 468,105 Expenses(LOSS) INCOME FROM (555,750 ) 218,456 (1,035,837 ) 311,467 OPERATIONSOTHER EXPENSE (INCOME):Interest expense 32,366 36,418 65,356 72,039 Interest income (78 ) (159 ) (230 ) (311 )Gain on debt (34,257 ) ? (49,579 ) ? extinguishmentLoss from equitymethod investments, 45 125,582 10,834 121,309 netOther expense 7,242 990 9,098 563 Total Other Expense 5,318 162,831 35,479 193,600 (LOSS) INCOME (561,068 ) 55,625 (1,071,316 ) 117,867 BEFORE INCOME TAXESIncome Tax Expense ? (179,331 ) 7,290 (179,331 )(Benefit)NET (LOSS) INCOME $ (561,068 ) $ 234,956 $ (1,078,606 ) $ 297,198 NET (LOSS) INCOME PER COMMON SHARE:Basic $ (3.51 ) $ 1.47 $ (6.75 ) $ 1.85 Diluted $ (3.51 ) $ 1.47 $ (6.75 ) $ 1.84 Weighted averagecommon shares 159,933,739 159,324,909 159,846,981 161,064,787 outstanding?BasicWeighted averagecommon shares 159,933,739 159,506,826 159,846,981 161,590,087 outstanding?Diluted

GULFPORT ENERGY CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

Six months ended June 30, 2020 2019 (In thousands)Cash flows from operating activities: Net (loss) income $ (1,078,606 ) $ 297,198 Adjustments to reconcile net (loss) income to net cash provided by operating activities:Depletion, depreciation and amortization 142,818 243,384 Impairment of oil and natural gas properties 1,086,225 ? Loss (income) from equity investments 10,834 121,449 Gain on debt extinguishment (49,579 ) ? Net gain on derivative instruments (125,237 ) (151,095 )Net cash receipts (payments) on settled derivative 195,232 (1,494 )instrumentsDeferred income tax expense 7,290 (179,331 )Other, net 9,844 11,341 Changes in operating assets and liabilities: Decrease in accounts receivable?oil and natural 55,565 78,525 gas salesDecrease (increase) in accounts receivable?joint 29,159 (24,148 )interest and other(Decrease) increase in accounts payable and (30,620 ) 3,220 accrued liabilitiesOther, net (5,703 ) 720 Net cash provided by operating activities 247,222 399,769 Cash flows from investing activities: Additions to oil and natural gas properties (274,851 ) (508,315 )Proceeds from sale of oil and natural gas 45,185 745 propertiesAdditions to other property and equipment (575 ) (4,298 )Proceeds from sale of other property and equipment 151 130 Contributions to equity method investments ? (432 )Distributions from equity method investments ? 1,945 Net cash used in investing activities (230,090 ) (510,225 )Cash flows from financing activities: Principal payments on borrowings (323,322 ) (345,350 )Borrowings on line of credit 326,000 455,000 Repurchases of senior notes (22,827 ) ? Payments for repurchases of stock under approved ? (30,000 )stock repurchase programOther, net (226 ) (714 )Net cash (used in) provided by financing (20,375 ) 78,936 activitiesNet decrease in cash, cash equivalents and (3,243 ) (31,520 )restricted cashCash, cash equivalents and restricted cash at 6,060 52,297 beginning of periodCash, cash equivalents and restricted cash at end $ 2,817 $ 20,777 of periodSupplemental disclosure of cash flow information: Interest payments $ 60,523 $ 67,472 Income tax receipts $ ? $ (1,794 )Supplemental disclosure of non-cash transactions: Capitalized stock-based compensation $ 1,891 $ 2,252 Asset retirement obligation capitalized $ 1,553 $ 6,230 Asset retirement obligation removed due to $ (2,033 ) $ ? divestitureInterest capitalized $ 710 $ 1,771 Fair value of contingent consideration asset on $ 23,090 $ ? date of divestitureForeign currency translation (loss) gain on equity $ (8,158 ) $ 7,411 method investments

Explanation and Reconciliation of Non-GAAP Financial MeasuresRecurring general and administrative expense is a non-GAAP financial measure equal to general and administrative expense presented on the income statement, plus capitalized G&A and less any non-recurring general and administrative expense. EBITDA is a non-GAAP financial measure equal to net (loss) income, the most directly comparable GAAP financial measure, plus interest expense, income tax (benefit) expense, accretion expense, depreciation, depletion and amortization and impairment of oil and gas properties. Adjusted EBITDA is a non-GAAP financial measure equal to EBITDA less non-cash derivative loss (gain), rig terminations fees, gain on debt extinguishment, non-recurring general and administrative expense, non-cash stock-based compensation expense and (income) loss from equity method investments. Cash flow from operating activities before changes in operating assets and liabilities is a non-GAAP financial measure equal to cash provided by operating activity before changes in operating assets and liabilities and inclusive of capitalized expenses incurred during the given period. Free cash flow is a non-GAAP measure defined as cash flow from operating activities before changes in operating assets and liabilities (as defined above) less capital expenditures incurred. Adjusted net income is a non-GAAP financial measure equal to pre-tax net (loss) income less non-cash derivative loss (gain), impairment of oil and gas properties, rig terminations fees, gain on debt extinguishment, non-recurring general and administrative expense, non-cash stock-based compensation expense and (income) loss from equity method investments. The Company has presented recurring general and administrative expense, EBITDA, adjusted EBITDA, adjusted net income, cash flow from operating activities before changes in operating assets and liabilities and free cash flow because it uses these measures as an integral part of its internal reporting to evaluate its performance and the performance of its senior management. These measures are considered important indicators of the operational strength of the Companys business and eliminate the uneven effect of considerable amounts of non-cash depletion, depreciation of tangible assets and amortization of certain intangible assets. A limitation of these measures, however, is that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Companys business. Management evaluates the costs of such tangible and intangible assets and the impact of related impairments through other financial measures, such as capital expenditures, investment spending and return on capital. Therefore, the Company believes that these measures provide useful information to its investors regarding its performance and overall results of operations. recurring general and administrative expense, EBITDA, adjusted EBITDA, adjusted net income, cash flow from operating activities before changes in operating assets and liabilities and free cash flow are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, either net income as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. In addition, recurring general and administrative expense, EBITDA, adjusted EBITDA, adjusted net income and cash flow from operating activities before changes in operating assets and liabilities are not intended to represent funds available for reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The recurring general and administrative expense, EBITDA, adjusted EBITDA, adjusted net income, cash flow from operating activities before changes in operating assets and liabilities and free cash flow presented in this press release may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in the Companys various agreements.

GULFPORT ENERGY CORPORATIONRECONCILIATION OF GENERAL AND ADMINISTRATIVE EXPENSES(Unaudited) Three months ended June 30, 2020 2019 (In thousands) Cash Non-Cash Total Cash Non-Cash TotalGeneral andadministrative $ 9,272 $ 1,198 $ 10,470 $ 10,019 $ 1,708 $ 11,727 expense (GAAP)Capitalizedgeneral and 7,205 957 8,162 7,696 1,138 8,834 administrativeexpenseNon-recurringgeneral and (3,818 ) ? (3,818 ) (676 ) ? (676 )administrativeexpense^(1)Recurringgeneral andadministrative $ 12,659 $ 2,155 $ 14,814 $ 17,039 $ 2,846 $ 19,885 beforecapitalization Six months ended June 30, 2020 2019 (In thousands) Cash Non-Cash Total Cash Non-Cash TotalGeneral andadministrative $ 24,271 $ 2,368 $ 26,639 $ 18,405 $ 3,379 $ 21,784 expense (GAAP)Capitalizedgeneral and 11,701 1,891 13,592 14,277 2,252 16,529 administrativeexpenseNon-recurringgeneral and (7,723 ) ? (7,723 ) (1,214 ) ? (1,214 )administrativeexpense^(1)Recurringgeneral andadministrative $ 28,249 $ 4,259 $ 32,508 $ 31,468 $ 5,631 $ 37,099 beforecapitalization (1) Includes non-recurring general and administrative expenses related tocertain legal, financial advisory and consulting charges.

GULFPORT ENERGY CORPORATIONRECONCILIATION OF EBITDA(Unaudited) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (In thousands) (In thousands) Net (loss) income $ (561,068 ) $ 234,956 $ (1,078,606 ) $ 297,198 (GAAP)Interest expense 32,366 36,418 65,356 72,039 Income tax expense ? (179,331 ) 7,290 (179,331 )Accretion expense 755 1,359 1,496 2,426 Depreciation,depletion and 64,790 124,951 142,818 243,384 amortizationImpairment of oil 532,880 ? 1,086,225 ? and gas propertiesEBITDA $ 69,723 $ 218,353 $ 224,579 $ 435,716

GULFPORT ENERGY CORPORATIONRECONCILIATION OF ADJUSTED EBITDA(Unaudited) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (In thousands) (In thousands) EBITDA $ 69,723 $ 218,353 $ 224,579 $ 435,716 Adjustments: Non-cash derivative 97,529 (147,798 ) 68,615 (152,589 )loss (gain)Non-cash loss onchanges in fair value 3,190 ? 4,361 ? of contingentpaymentsRig termination fees 3,762 ? 5,411 ? Gain on debt (34,257 ) ? (49,579 ) ? extinguishmentNon-recurring generaland administrative 3,818 676 7,723 1,214 expenseStock-based 1,198 1,708 2,368 3,379 compensation expenseLoss from equity 45 125,582 10,834 121,309 method investments Adjusted EBITDA $ 145,008 $ 198,521 $ 274,312 $ 409,029

GULFPORT ENERGY CORPORATIONRECONCILIATION OF CASH FLOW(Unaudited) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (In thousands) (In thousands) Cashprovided byoperating $ 116,384 $ 160,004 $ 247,222 $ 399,769 activity(GAAP)Adjustments: Changes inoperating (9,845) 4,188 (48,401) (58,317) assets andliabilitiesCapitalizedexpenses (8,685) (9,839) (14,302) (18,300) incurred^(1)Operating $ 97,854 $ 154,353 $ 184,519 $ 323,152 cash flowCapitalexpenditures (53,988) (184,231) (189,293) (459,178) incurred^(2)Free cash $ 43,866 $ (29,878) $ (4,774) $ (136,026) flow (1) Includes capitalized general and administrative expense incurred andcapitalized interest expenses incurred(2) Incurred capital expenditures and cash capital expenditures may vary fromperiod to period due to the cash payment cycle

GULFPORT ENERGY CORPORATIONRECONCILIATION OF ADJUSTED NET INCOME(Unaudited) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (In thousands, except share (In thousands, except share data) data) (Loss) incomebefore income $ (561,068) $ 55,625 $ (1,071,316) $ 117,867 taxes (GAAP)Adjustments: Non-cashderivative loss 97,529 (147,798) 68,615 (152,589) (gain)Non-cash losson changes infair value of 3,190 ? 4,361 ? contingentpaymentsImpairment ofoil and gas 532,880 ? 1,086,225 ? propertiesRig termination 3,762 ? 5,411 ? feesGain on debt (34,257) ? (49,579) ? extinguishmentNon-recurringgeneral and 3,818 676 7,723 1,214 administrativeexpenseStock-basedcompensation 1,198 1,708 2,368 3,379 expenseLoss fromequity method 45 125,582 10,834 121,309 investmentsPre-tax netincome $ 47,097 $ 35,793 $ 64,642 $ 91,180 excludingadjustments Adjusted net $ 47,097 $ 35,793 $ 64,642 $ 91,180 income Adjusted netincome per common share:Basic $ 0.29 $ 0.22 $ 0.40 $ 0.57 Diluted $ 0.29 $ 0.22 $ 0.40 $ 0.56 Basic weightedaverage shares 159,933,739 159,324,909 159,846,981 161,064,787 outstandingDilutedweighted 161,215,512 159,596,826 161,457,553 161,590,087 average sharesoutstanding