Company: GPOR
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-022951
Chunk: 97

Company: GULFPORT ENERGY CORP
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 97
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 shares of preferred stock outstanding at March 31, 2025, would convert to approximately 2.3 million shares of common stock if all holders of preferred stock exercised their Conversion Right.Gulfport may redeem all, but not less than all, of the outstanding shares of preferred stock by notice to the holders of preferred stock, at the greater of (i) the aggregate value of the preferred stock, calculated by the Current Market Price (as defined in the Preferred Terms) of the number of shares of common stock into which, subject to redemption, such preferred stock would have been converted if such shares were converted pursuant to the Conversion Right at the time of such redemption and (ii) the Liquidation Preference (the “Redemption Price”).Following the Emergence Date, if there is a Fundamental Change (as defined in the Preferred Terms), Gulfport is required to redeem all, but not less than all, of the outstanding shares of preferred stock by cash payment of the Redemption Price per share of preferred stock within three (3) business days of the occurrence of such Fundamental Change. Notwithstanding the foregoing, in the event of a redemption pursuant to the preceding sentence, if Gulfport lacks sufficient cash to redeem all outstanding shares of preferred stock, the Company is required to redeem a pro rata portion of each holder’s shares of preferred stock. The preferred stock has no stated maturity and will remain outstanding indefinitely unless repurchased or redeemed by Gulfport or converted into common stock.The preferred stock has been classified as mezzanine equity in the accompanying consolidated balance sheets due to the redemption features noted above.Dividends and ConversionsDuring the three months ended March 31, 2025 and 2024, the Company paid $0.9 million and $1.1 million, respectively, of cash dividends to holders of our preferred stock. The following table summarizes activity of the Company's preferred stock for the three months ended March 31, 2025 and 2024:Three Months Ended March 31, 2025Three Months Ended March 31, 2024Preferred stock, beginning of period37,348 44,214 Conversion of preferred stock(4,461)(11)Preferred stock, end of period32,887 44,203 

6.EQUITY

In May 2021, the Company filed an amended and restated certificate of incorporation with the Delaware Secretary of State to provide for, among other things, (i) the authority to issue 42 million shares of common stock with a par value of $