GULFPORT ENERGY CORPGPOR

GULFPORT ENERGY CORP Earnings Per Share Disclosure

10-KFiled Feb 25, 20262 min read
EARNINGS (LOSS) PER SHARE
Basic income or loss per share attributable to common stockholders is computed as (i) net income or loss less (ii) dividends paid to holders of preferred stock less (iii) net income or loss attributable to participating securities divided by (iv) weighted average basic shares outstanding. Diluted net income or loss per share attributable to common stockholders is computed as (i) basic net income or loss attributable to common stockholders plus (ii) diluted adjustments to income allocable to participating securities divided by (iii) weighted average diluted shares outstanding. The “if-converted” method is used to determine the dilutive impact for the Company's convertible preferred stock and the treasury stock method is used to determine the dilutive impact of unvested restricted stock.
During the year ended December 31, 2025, the Company redeemed 2,449 shares of preferred stock for cash totaling $31.3 million. Additionally, direct transaction-related costs of $1.1 million were incurred as part of the redemption. The excess of the cash settlement and direct transaction-related costs over the carrying value of the redeemed shares of preferred stock, totaling approximately $29.9 million, was treated as a deemed dividend and recorded as a reduction to retained earnings. The deemed dividend reduced net income available to common shareholders and impacted both basic and diluted earnings per share.
Restricted stock awards resulted in 0.2 million dilutive shares for the year ended December 31, 2025, 0.3 million anti-dilutive shares for the year ended December 31, 2024, and 0.3 million dilutive shares year ended December 31, 2023. There were 2.7 million and 3.2 million potential shares of common stock issuable due to the Company's convertible preferred stock for the years ended December 31, 2024 and 2023, respectively. The Company redeemed all outstanding preferred stock during the year ended December 31, 2025.
Reconciliations of the components of basic and diluted net income (loss) per common share are presented in the table below (in thousands):
Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
Net income (loss)$427,810 $(261,386)$1,470,916 
Dividends on preferred stock(1,666)(4,230)(4,840)
Deemed dividend on preferred stock(1)
(29,986)— — 
Participating securities - preferred stock(2)
— — (212,360)
Net income (loss) attributable to common stockholders$396,158 $(265,616)$1,253,716 
Re-allocation of participating securities— — 2,475 
Diluted net income (loss) attributable to common stockholders$396,158 $(265,616)$1,256,191 
Basic Shares18,223 18,050 18,645 
Dilutive Shares18,440 18,050 18,902 
Basic EPS$21.74 $(14.72)$67.24 
Dilutive EPS$21.48 $(14.72)$66.46 
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(1)    Reflects the difference between the carrying value of the preferred stock and the cash settlement upon redemption, including $1.1 million in direct transaction-related costs.
(2)    Preferred stock represents participating securities because it participates in any dividends on shares of common stock on a pari passu, pro rata basis. However, preferred stock does not participate in undistributed net losses.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Mar 1, 2023
2021Mar 1, 2022
2020Mar 5, 2021
2019Feb 27, 2020
2018Feb 28, 2019
2017Feb 22, 2018
2016Feb 15, 2017
2015Feb 19, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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