Company: GPOR
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038172
Chunk: 79

Company: GULFPORT ENERGY CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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,403 Variable lease cost— — Short-term lease cost7,472 5,998 Total lease cost(1)$7,681 $9,401 Six Months Ended June 30, 2025Six Months Ended June 30, 2024Operating lease cost$1,635 $6,806 Variable lease cost— — Short-term lease cost16,382 15,949 Total lease cost(1)$18,017 $22,755 _____________________(1)    The majority of the Company's total lease cost was capitalized to the full cost pool, and the remainder was included in either lease operating expenses or general and administrative expenses in the accompanying consolidated statements of operations.

The weighted average remaining lease term as of June 30, 2025 was 1.20 years. The weighted average discount rate used to determine the operating lease liability as of June 30, 2025 was 6.10%. 

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14.INCOME TAXES

The Company records its quarterly tax provision based on an estimate of the annual effective tax rate expected to apply to continuing operations for the various jurisdictions in which it operates. The tax effects of certain items, such as tax rate changes, significant unusual or infrequent items, and certain changes in the assessment of the realizability of deferred taxes, are recognized as discrete items in the period in which they occur and are excluded from the estimated annual effective tax rate.The Company's effective income tax rate was 21.9% and 21.9% for the three and six months ended June 30, 2025, respectively, and 22.8% and 22.0% for the three and six months June 30, 2024, respectively. The difference between the actual rate and the statutory rate for the three and six months ended June 30, 2025 is primarily related to the deferred state tax expense recorded during the period.At each reporting period, the Company weighs all available positive and negative evidence to determine whether its deferred tax assets are more likely than not to be realized. A valuation allowance for deferred tax assets, including net operating losses, is recognized when it is more likely than not that some or all of the benefit from the deferred tax assets will not be realized. To assess that likelihood, the Company uses estimates and judgment regarding future taxable income and considers the tax laws in the jurisdiction where such taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include current financial