Gulfport Energy (GPOR) risk factors, FY2024 10-K

Financial, Liquidity and Commodity Price Risks

1. 01Natural gas, oil and NGL prices fluctuate widely, and lower prices for an extended period of time are likely to have a material adverse effect on our business
2. 02Index to Financial Statements
3. 03Our commodity price risk management activities may limit the benefit we would receive from increases in commodity prices, may require us to provide collateral for derivative liabilities and involve risk that our counterparties may be unable to satisfy their obligations to us
4. 04Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase
5. 05Our debt and other financial commitments may limit our financial and operating flexibility
6. 06Our 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
7. 07Under our method of accounting for oil and natural gas properties, declines in commodity prices may result in impairment of asset value
8. 08A change of control could limit our use of net operating losses to reduce future taxable income

Industry, Business and Operational Risks

1. 09The 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
2. 10The actual quantities of and future net revenues from our proved reserves may be less than our estimates
3. 11Our development and exploratory drilling efforts and our well operations may not be profitable or achieve our targeted returns
4. 12Part 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
5. 13Oil 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
6. 14The occurrence of one or more of these factors could result in a partial or total loss of our investment in a particular property, as well as significant liabilities
7. 15Multi-well pad drilling may result in volatility in our operating results and delay the conversion of our PUD reserves
8. 16We are not the operator of all of our oil and natural gas properties and therefore are not in a position to control the timing of development efforts, the associated costs or the rate of production of the reserves on such properties
9. 17All of our producing properties are located in eastern Ohio and central Oklahoma, making us vulnerable to risks associated with operating in only these regions
10. 18The loss of one or more of the purchasers of our production could adversely affect our business, results of operations, financial condition and cash flows
11. 19The unavailability, high cost or shortages of rigs, equipment, raw materials, supplies, oilfield services or personnel may restrict our operations
12. 20Our operations may be adversely affected by pipeline, trucking and gathering system capacity constraints and may be subject to interruptions that could adversely affect our cash flow
13. 21We are required to pay fees to some of our midstream service providers based on minimum volumes regardless of actual volume throughput
14. 22A deterioration in general economic, business or industry conditions would have a material adverse effect on our results of operations, liquidity and financial condition
15. 23Terrorist activities could materially and adversely affect our business and results of operations
16. 24Cyber-attacks targeting systems and infrastructure used by the oil and gas industry and related regulations may adversely impact our operations and, if we are unable to obtain and maintain adequate protection for our data, our business may be harmed
17. 25We may engage in acquisition and divestiture activities that involve substantial risks
18. 26We are subject to extensive governmental regulation and ongoing regulatory changes, which could adversely impact our business
19. 27Legislation or regulatory initiatives intended to address seismic activity could restrict our drilling and production activities, as well as our ability to dispose of produced water gathered from such activities, which could have a material adverse effect on our business
20. 28Increased attention to ESG matters may impact our business, financial results, or stock price
21. 29Future U.S. and state tax legislation may adversely affect our business, results of operations, financial condition and cash flow
22. 30Our business is subject to complex and evolving laws and regulations regarding privacy and data protection
23. 31The market price of our securities is subject to volatility
24. 32Future sales or the availability for sale of substantial amounts of our common stock, or the perception that these sales may occur, could adversely affect the trading price of our common stock and could impair our ability to raise capital through future sales of equity securities
25. 33Certain of our stockholders own a significant portion of our outstanding equity securities and their interests may not always coincide with the interests of other holders of the common stock
26. 34There may be future dilution of our common stock, which could adversely affect the market price of our common stock