Company: GPOR
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-008043
Chunk: 0

Company: GULFPORT ENERGY CORP
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1A
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Table of ContentsIndex to Financial Statements

SUMMARY RISK FACTORS

Financial, Liquidity and Commodity Price Risks

•Natural gas, oil and NGL prices fluctuate widely, and lower prices for extended time periods are likely to have a material adverse effect on our business.

•Our commodity price risk management activities may limit the benefit we would receive from increases in commodity prices and involve risk that our counterparties may be unable to satisfy their obligations to us.

•Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase.

•Our debt and other financial commitments may limit our financial and operating flexibility.

•Our development, acquisition and exploration operations require substantial capital, and we may be unable to obtain needed capital or financing on satisfactory terms or at all, which could lead to a loss of properties and a decline in our oil and natural gas reserves. 

•Under our method of accounting for oil and natural gas properties, declines in commodity prices may result in impairment of asset value. 

•A change of control could limit our use of net operating losses to reduce future taxable income.

Industry, Business and Operational Risks

•The oil and gas development, exploration and production industry is very competitive, and some of our competitors have greater financial and other resources than we do.

•The actual quantities of and future net revenues from our proved reserves may be less than our estimates. 

•Our development and exploratory drilling efforts and our well operations may not be profitable or achieve our targeted returns.

•Part of our strategy involves using the latest available horizontal drilling and completion techniques; therefore, the results of our planned drilling in these plays are subject to risks associated with drilling and completion techniques and drilling results may not meet our expectations for reserves or production.

•Our undeveloped acreage must be drilled before lease expiration to hold the acreage by production. In highly competitive markets for acreage, failure to drill sufficient wells to hold acreage could result in a substantial lease renewal cost or, if renewal is not feasible, loss of our lease and prospective drilling opportunities. 

•Oil and natural gas operations are uncertain and involve substantial costs and risks. Operating hazards and uninsured risks may result in substantial losses and could prevent us from realizing profits.

•Multi-well pad drilling may result in volatility in our operating results and delay the conversion of our PUD reserves. 

•We are not the operator of all our oil and natural gas properties and therefore are not positioned to control the timing of development efforts, the associated costs or the