Company: GPOR
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038172
Chunk: 17

Company: GULFPORT ENERGY CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 17
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 On May 5, 2025, Gulfport completed its semi-annual borrowing base redetermination under its Credit Facility during which the borrowing base was reaffirmed at $1.1 billion with elected commitments remaining at $1.0 billion.

See Note 4 of our consolidated financial statements for additional discussion of our outstanding debt.

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Dividends on Preferred Stock. As discussed in Note 5 of our consolidated financial statements, holders of preferred stock are entitled to receive cumulative quarterly dividends at a rate of 10% per annum of the Liquidation Preference with respect to cash dividends and 15% per annum of the Liquidation Preference with respect to dividends paid in kind as additional shares of preferred stock (“PIK Dividends”). We currently have the option to pay either cash dividends or PIK Dividends on a quarterly basis. 

The Company paid $0.8 million and $1.7 million of cash dividends to holders of our preferred stock during the three and six months ended June 30, 2025, respectively, and $1.1 million and $2.2 million during the three and six months ended June 30, 2024, respectively. 

Redemption of Preferred Stock. On August 5, 2025, Gulfport issued a notice of redemption for its preferred stock for cash. The optional redemption will be effective on the Redemption Date with respect to any shares of the preferred stock that have not been converted and remain outstanding at that date. Shares of preferred stock may be converted to common stock pursuant to their terms up to, but not including, the Redemption Date. The total cash amount payable by Gulfport in connection with the redemption will vary depending on the number of shares of preferred stock converted prior to the Redemption Date and the price of Gulfport's common stock.

Supplemental Guarantor Financial Information. The 2026 Senior Notes were guaranteed on a senior unsecured basis by all existing consolidated subsidiaries that guarantee our Credit Facility or certain other debt (the “2026 Senior Notes Guarantors”). The 2026 Senior Notes were not guaranteed by Grizzly Holdings or Mule Sky, LLC. The 2026 Senior Notes Guarantors were 100% owned by the Parent, and the guarantees are full, unconditional, joint and several. There were no significant restrictions on the ability of the Parent or the 2026 Senior Notes Guarantors to obtain funds from each other in the form of a dividend or loan. The guarantees rank equally in the right of payment with