Gulfport Energy sets purchase price for senior notes tender offer

OKLAHOMA CITY - Gulfport Energy (OTC:GPORQ) Corporation (NYSE:GPOR), an independent natural gas-weighted exploration and production company, announced today the pricing terms of its cash tender offer to purchase all outstanding 8.0% Senior Notes due in 2026. The purchase price has been set at $1,023.35 per $1,000 in principal amount of the notes, as specified in the Offer to Purchase document dated September 3, 2024.

The tender offer, which is being conducted by Gulfport Energy Operating Corporation, a wholly owned subsidiary, is part of the company's financial strategy. Noteholders will also receive accrued and unpaid interest from the last payment date up to, but excluding, the initial payment date, which is expected to be September 13, 2024, provided the offer is not extended or terminated earlier.

The offer is contingent upon certain conditions, including the completion of a debt financing by Gulfport Operating that is satisfactory to both the subsidiary and the parent company. The proceeds from this financing are intended to fund the tender offer and to redeem any remaining notes at a redemption price of 100% of the principal amount plus accrued interest by May 17, 2025, the par call date.

Holders of the notes must tender their securities before the expiration time of the offer, which is set for 5:00 p.m. New York City time today, to be eligible for the purchase price. The notes may be withdrawn at any time before this deadline.

J.P. Morgan Securities LLC is acting as the exclusive Dealer Manager for the tender offer, and questions regarding the offer may be directed to their Liability Management Group.

This announcement does not constitute an offer to purchase or a solicitation of an offer to sell any notes in the tender offer and is not a notice of redemption for the notes. The information provided is based on a press release statement.

In other recent news, Gulfport Energy Corporation has made several significant financial moves. The company has upsized its private placement offering of 6.75% Senior Notes due 2029 from $500 million to $650 million. The proceeds from this offering are planned to fund the buyback of its 8.0% Senior Notes due 2026, with any remaining funds aimed at debt repayment and general corporate purposes.

Gulfport Energy's subsidiary, Gulfport Operating, has also initiated a cash tender offer to purchase all outstanding 8.0% Senior Notes due 2026. In addition, the company reported a robust $164 million in adjusted EBITDA and a significant $20 million in adjusted free cash flow during its Second Quarter 2024 Earnings Call.

KeyBanc has raised Gulfport Energy's share price target to $165, citing the company's strong free cash flow generation and potential for organic earnings growth. The analyst also increased the estimated 2025 EBITDA by 3% to $891 million and the forecast for the company's 2025 repurchase program by 60% to $160 million. These recent developments highlight Gulfport Energy's strategic financial management and commitment to shareholder returns.

InvestingPro Insights

Gulfport Energy Corporation (NYSE:GPOR) has been navigating through a challenging period, with several key financial metrics reflecting the company's current state and future expectations. According to InvestingPro data, Gulfport has a market capitalization of around $2.5 billion and is trading at a P/E ratio of 3.37, which is slightly lower than the adjusted P/E ratio for the last twelve months as of Q2 2024 at 3.28. The company's revenue has seen a significant contraction, with a decrease of 48.3% in the last twelve months leading up to Q2 2024.

Despite the revenue decline, Gulfport's gross profit margin remains robust at 56.26%, indicating that the company has been able to maintain a strong profitability ratio in terms of its cost of goods sold. Additionally, the operating income margin is at 46.1%, which suggests that the company is managing its operating expenses effectively relative to its gross profit.

InvestingPro Tips highlight that analysts have revised their earnings expectations downwards for the upcoming period and anticipate a sales decline in the current year. This aligns with the data showing a revenue contraction. Furthermore, the company's stock generally trades with low price volatility, which could be a point of consideration for investors looking for stability in their investments. It's also worth noting that Gulfport does not pay dividends to shareholders, which might influence the investment decisions of income-focused investors.

For those interested in a deeper analysis, InvestingPro offers additional insights, including a total of 8 InvestingPro Tips for Gulfport Energy, which can be found at https://www.investing.com/pro/GPOR. These tips provide valuable context for the company's financial health and future prospects, which can be instrumental for investors making informed decisions.

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