BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2023

Description of Company

Gulfport Energy Corporation (the "Company" or "Gulfport") is an independent natural gas-weighted exploration and production company focused on the production of natural gas, crude oil and NGL in the United States. The Company's principal properties are located in eastern Ohio targeting the Utica and Marcellus and in central Oklahoma targeting the SCOOP Woodford and Springer formations.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Gulfport were prepared in accordance with GAAP and the rules and regulations of the SEC.

This Quarterly Report on Form 10-Q (this “Form 10-Q”) relates to the financial position and periods as of and for the three and nine months ended September 30, 2023, and the three and nine months ended September 30, 2022. The Company's annual report on Form 10-K for the year ended December 31, 2022, should be read in conjunction with this Form 10-Q. The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of our condensed consolidated financial statements and accompanying notes and include the accounts of our wholly-owned subsidiaries. Intercompany accounts and balances have been eliminated. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Revenue payable and suspense	$	154,200	$	222,721
Accounts payable	45,526		37,807
Accrued transportation, gathering, processing and compression	34,368		56,138
Accrued capital expenditures	25,501		36,464
Accrued contract rejection damages and shares held in reserve	1,996		40,996
Other accrued liabilities	48,993		43,258
Total accounts payable and accrued liabilities	$	310,584	$	437,384

Other, net (in thousands)

Other, net in the Company's consolidated statements of operations for the nine months ended September 30, 2023, included $17.8 million related to the interim TC claim distribution and a $1 million administrative payment to Rover as part of the executed settlement. The distribution and settlement is more fully described in Note 9. The timing and amount of any future distributions to Gulfport are not certain, and the total amount will be impacted by the liquidating trust's distributions and resolution of other remaining bankruptcy claims. Additionally, Other, net included a $5.0 million recoupment of previously placed collateral for certain firm transportation commitments during our Chapter 11 filing.

Other, net in the Company's consolidated statements of operations for the nine months ended September 30, 2022, included $11.5 million related to the TC claim distribution received as discussed in Note 9. Additionally, Other, net included a $5.1 million payment to settle certain gas imbalance positions and a $5.2 million receipt of funds from a litigation settlement.

Supplemental Cash Flow and Non-Cash Information (in thousands)


	Nine Months Ended September 30, 2023		Nine Months Ended September 30, 2022
Supplemental disclosure of cash flow information:
Interest payments, net of amounts capitalized	$	29,073	$	30,102
Changes in operating assets and liabilities, net:
Accounts receivable - oil and natural gas sales	$	171,673	$	(84,674)
Accounts receivable - joint interest and other	9,114		(14,947)
Accounts payable and accrued liabilities	(123,657)		65,648
Prepaid expenses	356		3,061
Other assets	52		1,352
Total changes in operating assets and liabilities, net	$	57,538	$	(29,560)
Supplemental disclosure of non-cash transactions:
Capitalized stock-based compensation	$	3,023	$	2,141
Asset retirement obligation capitalized	$	505	$	53
Asset retirement obligation removed due to divestiture and settlements	$	(1,267)	$	(7)
Release of common stock held in reserve	$	—	$	28,220