S&P Global Ratings upgraded Gulfport Energy Corp’s (NYSE:GPLC) long‑term credit rating to BB‑ from B+ and affirmed its senior unsecured notes at BB‑, while revising the recovery rating to 3 from 2; the outlook remains stable. The agency expects the company’s funds‑from‑operations to debt ratio to stay around 100% and its debt‑to‑EBITDA leverage near 1x over the next twelve months, even after accounting for shareholder returns. Gulfport posted an all‑in replacement ratio of 185% in 2025 and an average of 118% over the prior three years, and it has added inventory in both the Utica wet‑gas and dry‑gas windows. Operational discipline, a consistent hedging policy and capital efficiencies are projected to sustain stable EBITDA and free operating cash flow for the next 12‑24 months.
S&P forecasts stable EBITDA of $950 million to $1 billion per year for the next 24 months, based on an assumed Henry Hub natural‑gas price of $3.50 per million British thermal units. The firm targets a debt‑to‑EBITDA ratio of about 1x and plans to use reserve‑based lending capacity to fund share‑repurchase programmes, assuming roughly $300 million of buybacks each year.
Capital expenditures are expected to be $420 million for the current year, down from $520 million in 2025, reflecting reduced land‑acquisition spending of $30‑$35 million. Gulfport will operate a single rig in the Utica formation for the remainder of 2026, down from two rigs previously, prioritising shareholder returns over production growth amid a weak gas‑price environment. Production is projected to remain in the range of 1.0‑1.1 billion cubic‑feet‑equivalent per day.
S&P warned that the rating could be lowered if the funds‑from‑operations to debt ratio falls below 60% or if debt‑to‑EBITDA rises above 2x for a sustained period. Such a scenario could arise if debt‑financed share repurchases exceed current expectations or if natural‑gas prices drop below the $3.50 per MMBtu assumption and the company does not adjust capital spending or shareholder‑return policies accordingly.