New CEO takes the reins as liquids production accelerates
- Gulfport produces natural gas, NGLs, oil, and condensate from Appalachia and Oklahoma.
- Domenic Dell'Osso officially took over as President and CEO in May 2026.
- The company announced a $140 million budget for land purchases in 2026.
- Marcellus drilling and completion costs dropped 25% per foot year over year.
- Management expects liquids volumes to jump more than 50% in the second half of 2026.
A cleaner story with aggressive expansion
Domenic Dell'Osso officially became CEO in May 2026, removing the leadership uncertainty that clouded the company earlier in the year. He has quickly articulated a clear capital allocation framework and closed key acreage acquisitions to extend the company's drilling inventory.
The bull case is strengthened by the combination of capital return discipline and high-quality inventory expansion. Operational execution continues to impress, with Marcellus well costs falling 25% per foot year over year. Furthermore, liquids volumes are projected to jump over 50% in the second half of 2026 compared to the first half.
The bear case shifts toward integration and spending risks. The aggressive $140 million land acquisition budget in 2026 reduces the free cash flow available for buybacks or debt paydown in the near term. The company's capital allocation remains dynamic and unpredictable from quarter to quarter.
Finn's overall view remains balanced. The valuation looks attractive, but the next year depends heavily on natural gas prices, integrating the new Belmont County acreage, and sustaining the recent cost reductions across a broader drilling program.
Drill wells, hedge prices, buy stock and land
Gulfport is an independent exploration and production company. It leases acreage, drills wells, sells the gas and liquids it produces, and tries to earn more than it spends on drilling, land, gathering, and debt.
Most output comes from Appalachia, especially the Utica and Marcellus formations in Ohio. The company also owns SCOOP assets in Oklahoma. For 2026, Gulfport expects to spend $400 million to $430 million on capital projects, heavily weighted toward its liquids-rich assets.
The company uses hedges, which are contracts that lock in or protect prices, to reduce swings from gas, oil, and NGL markets. Hedges help cash flow planning, but they do not remove the core risk that Gulfport sells commodities whose prices move constantly.
Returning cash to shareholders is central to the model, alongside opportunistic land buying. The board has a share repurchase authorization of $1.5 billion extended through 2026. In the second quarter of 2026, the company repurchased $70 million of stock, while also spending $83 million on state land leases in Ohio.
Gas base, liquids upside
Natural gas
Natural gas remains the core product and the main source of volume. It also carries the largest price risk because Henry Hub gas prices can swing sharply.
Natural gas liquids
NGLs are a key part of the liquids pivot. Q1 2026 NGL volumes rose 15% year over year, helped by new Utica and Marcellus liquids-window wells.
Oil and condensate
Oil and condensate add higher-value production to Gulfport's mix. Full-year 2025 oil and condensate volumes increased 55% from 2024.
Commodity hedges
Hedges are not production, but they are part of how Gulfport manages cash flow. They can soften price shocks, while also limiting some upside when prices rise.
Appalachia drives the company
The mix is based on full-year 2025 production. Appalachia made up about 81% of total production, while SCOOP in the Anadarko Basin made up about 19%, keeping the company highly concentrated in Ohio.
What can go wrong
Natural gas price shock
High impact · High oddsGulfport is still a natural gas-weighted producer. Lower prices can cut cash flow, reduce buybacks, and force asset write-downs. The heavy concentration in this commodity makes the company highly sensitive to market swings.
Integration of new acreage
Medium impact · Medium oddsGulfport acquired 4,700 net undeveloped acres in Belmont County for $83 million. The risk is that integrating this land and proving up the 16 net future drilling locations could encounter delays or higher costs.
Buybacks become hard to predict
Medium impact · High oddsGulfport is competing for its own cash flow by funding a $140 million land acquisition budget in 2026 alongside share repurchases. Management also said the buyback approach is dynamic and not formulaic, which can disappoint investors expecting steady payouts.
Liquids wells do not hold up
Medium impact · Medium oddsThe liquids strategy has clear proof points, but liquids wells can have shorter plateau periods. This means output can fall faster after early production. If second-half wells miss their targets, the growth story weakens.
Service costs or midstream issues squeeze margins
Medium impact · Medium oddsGulfport depends on drilling crews, completion services, pipelines, and processing systems. If service costs rise or pipelines limit flow, the recent 25% operational cost improvements may not last.
In one breath
What does Gulfport Energy do?
Gulfport drills and produces natural gas, NGLs, oil, and condensate. Its main operating areas are the Utica and Marcellus formations in Ohio and the SCOOP area in Oklahoma.
Who is the CEO of Gulfport Energy?
Domenic Dell'Osso officially took over as President and CEO on May 28, 2026, filling a vacancy left earlier in the year.
Is Gulfport still mostly a natural gas company?
Yes. Gulfport is still natural gas-weighted, but it is shifting more capital to liquids-rich wells. That shift helped oil and condensate volumes rise significantly.
What is the biggest thing to watch next?
Investors are watching to see if Gulfport hits its target of a 50% increase in liquids production in the second half of 2026. They are also monitoring how the new Belmont County acreage performs.
