Company: GPOR
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-008043
Chunk: 291

Company: GULFPORT ENERGY CORP
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7A
Chunk 291
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 without regard to the risk of specific properties. The estimated future costs to develop proved developed non-producing and proved undeveloped reserves are approximately $280.2 million in 2025, $318.8 million in 2026 and $259.2 million in 2027. Estimated future development costs include capital spending on major development projects. Gulfport believes cash flow from its operating activities, cash on hand and borrowings under its Credit Facility will be sufficient to cover these estimated future development costs.The assumptions used to derive the standardized measure of discounted future net cash flows are those required by accounting standards and do not necessarily reflect the Company's expectations. The information may be useful for certain comparative purposes but should not be solely relied upon in evaluating Gulfport or its performance. Furthermore, information contained in the following table may not represent realistic assessments of future cash flows, nor should the standardized measure of discounted future net cash flows be viewed as representative of the current value of the Company's reserves. Management believes that the following factors should be considered when reviewing the information below:•Future commodity prices received for selling the Company's net production will likely differ from those required to be used in these calculations.•Future operating and capital costs will likely differ from those required to be used in these calculations and do not reflect cost savings of Company owned midstream operations on future operating expenses.•Future market conditions, government regulations, reservoir conditions and risks inherent in the production of oil and condensate and gas may cause production rates in future years to vary significantly from those rates used in the calculations.•Future revenues may be subject to different production, severance and property taxation rates.•The selection of a 10% discount rate is arbitrary and may not be a reasonable factor in adjusting for future economic conditions or in considering the risk that is part of realizing future net cash flows from the reserves.The following table summarizes estimated future net cash flows from natural gas and crude oil reserves (in millions):Year Ended December 31, 2024Year Ended December 31, 2023Year Ended December 31, 2022Future cash flows$10,474 $12,338 $26,677 Future development and abandonment costs(1,498)(1,625)(1,588)Future production costs(5,268)(5,641)(5,872)Future production taxes(212)(303)(553)Future income taxes(23)(63)(2,609)Future net cash flows3,473 4,706 16,055 10% discount to reflect timing of