Company: GPOR
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-008043
Chunk: 335

Company: GULFPORT ENERGY CORP
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7A
Chunk 335
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 the Incentive Plan. The number of shares of common stock issued pursuant to the award will be based on a combination of (i) the Company's TSR and (ii) the Company's RTSR for the performance period. Participants will earn from 0% to 200% of the target award based on the Company's TSR and RTSR ranking compared to the TSR of the companies in the Company's designated peer group at the end of the performance period. Awards will be earned and vested at the end of a three-year performance period, subject to earlier termination of the performance period in the event of a change in control. The grant date fair values were determined using the Monte Carlo simulation method and are being recorded ratably over the performance period. The table below summarizes the assumptions used in the Monte Carlo simulation to determine the grant date fair value of awards granted during the years ended December 31, 2022, 2023 and 2024:Grant dateApril 29, 2022January 24, 2023March 3, 2023April 3, 2023March 1, 2024Forecast period (years)33333Risk-free interest rates2.87%3.88%4.64%3.79%4.36%Implied equity volatility88.4%87.2%86.4%70.8%46.7%Stock price on the date of grant$93.98$72.99$82.20$79.50$142.00

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Table of ContentsIndex to Financial Statements

Unrecognized compensation expense as of December 31, 2024, related to performance vesting restricted shares was $8.0 million. The expense is expected to be recognized over a weighted average period of 1.73 years.

8.REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue RecognitionThe Company’s revenues are primarily derived from the sale of natural gas, oil and condensate and NGL. These sales are recognized in the period that the performance obligations are satisfied. The Company generally considers the delivery of each unit (MMBtu or Bbl) to be separately identifiable and represents a distinct performance obligation that is satisfied at the time control of the product is transferred to the customer. Revenue is measured based on consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. These contracts typically include variable consideration that is based on pricing tied to market indices and volumes delivered in the current month. As