Company: GPOR
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-022951
Chunk: 91

Company: GULFPORT ENERGY CORP
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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 PropertiesUnder the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the Company's oil and natural gas properties. At March 31, 2025 and 2024, the net book value of the Company's oil and gas properties was below the calculated ceiling. As a result, the Company did not record an impairment of its oil and natural gas properties for the three months ended March 31, 2025 or 2024. General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. All general and administrative costs not directly associated with exploration and development activities are charged to expense as they are incurred. Capitalized general and administrative costs were approximately $6.2 million and $5.7 million for the three months ended March 31, 2025 and 2024, respectively.The Company evaluates the costs excluded from its amortization calculation at least annually. Individually insignificant unevaluated properties are grouped for evaluation and periodically transferred to evaluated properties over a timeframe consistent with their expected development schedule. 

10

The following table summarizes the Company’s non-producing properties excluded from amortization by area (in thousands):March 31, 2025December 31, 2024Utica & Marcellus$191,063 $197,513 SCOOP24,091 24,137 Total unproved properties$215,154 $221,650 Asset Retirement ObligationThe following table provides a reconciliation of the Company’s asset retirement obligation for the three months ended March 31, 2025 and 2024 (in thousands):Three Months Ended March 31, 2025Three Months Ended March 31, 2024Asset retirement obligation, beginning of period$32,949 $29,941 Liabilities incurred53 214 Liabilities settled(1,266)— Accretion expense618 555 Total asset retirement obligation, end of period$32,354 $30,710 

4.LONG-TERM DEBT

Long-term debt consisted of the following items as of March 31, 2025 and December 31, 2024 (in thousands):March 31, 2025December 31, 20246.750% senior unsecured notes due 2029$650