Gulfport Energy Corp (NYSE:GPOR) Q2 2022 Earnings Conference Call August 3, 2022 9:00 AM ET

Company Participants

Jessica Antle - Director, IR

Timothy Cutt - CEO & Chairman

William Buese - EVP & CFO

Conference Call Participants

Neal Dingmann - Truist Securities

Operator

Good day, ladies and gentlemen, and welcome to your Gulfport Energy Corporation Second Quarter 2022 Earnings Call. (Operator Instructions) At this time, it is my pleasure to turn the floor over to your host, Jessica Antle. Ma'am, the floor is yours.

Jessica Antle

Thank you, Melinda, and good morning. Welcome to Gulfport Energy Corporation's Second Quarter 2022 Earnings Conference Call. I am Jessica Antle, Director of Investor Relations. Speaker on today's call include Tim Cutt, Chief Executive Officer; and Bill Buese, Executive Vice President and Chief Financial Officer.

I would like to remind everybody that during this conference call, the participants may make certain forward-looking statements relating to the company's financial conditions, results of operations, plans, objectives, future performance and business. We caution you that actual results could differ materially from those that are indicated in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the company's filings with the SEC.

In addition, we may reference non-GAAP measures. Reconciliations to the comparable GAAP measures will be posted on our website. An updated Gulfport presentation was posted yesterday evening to our website in conjunction with the earnings announcement. Please review at your leisure.

At this time, I would like to turn the call over to Tim.

Timothy Cutt

Thanks, Jessica, and good morning, and thank you for joining the call. I will begin this morning with a summary of the second quarter highlights followed by an operational update before turning the call to Bill to discuss the financials.

As you saw from our release, we had a strong quarter, delivering 960 million cubic feet equivalent per day of production and $80 million of free cash flow. We exited the quarter with a conservative leverage ratio of 0.8x and liquidity of $469 million.

We made significant progress in our share repurchase program and have repurchased $189 million year-to-date, decreasing our outstanding shares by 8% and representing approximately 50% of full year 2022 expected free cash flow. In addition, the Board has recently approved an incremental $100 million of share repurchases, taking the program to $300 million in total.

Turning to production. Our strong second quarter results were driven by the continued outperformance of our 2021 development program, excellent uptime across our operations and the robust productivity from our SCOOP Nelda pad brought online in March of 2022. Given the timing of our development program, we expect production to decline slightly in the third quarter before growing significantly in the fourth quarter.