Gulfport Energy

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 25 Feb 2026, plus the 10-Q filed 4 Aug 2026 and 5 later 8-Ks.

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

• We are subject to extensive governmental regulation and ongoing regulatory changes, which could adversely impact our business.

  Could happen

  Climate Change. Continuing political and social attention to the issue of climate change has resulted in legislative, regulatory and other initiatives to reduce greenhouse gas emissions, such as carbon dioxide and methane, and incentivizing energy conservation or the use of alternative energy sources. Policy makers at both the federal and state levels have introduced legislation and proposed new regulations designed to quantify and limit the emission of greenhouse gases through inventories, limitations or taxes on greenhouse gas emissions and encourage consumers to the alternative energy sources. The IRA 2022, both imposes new climate related requirements on oil and gas operations and appropriates significant federal funding for renewable energy initiatives. Also, for the first time ever, the law imposes a fee on GHG emissions from certain facilities. The emissions fee and funding provisions of the IRA 2022 could increase our operating costs and accelerate the transition away from fossil fuels, which could in turn adversely affect our business, results of operations and financial position. Under the Trump Administration, however, there has been a shift away from the previous administration's GHG program. For example, in February 2025, the U.S. House and Senate approved a joint resolution of disapproval under the Congressional Review Act to repeal the methane emissions charge rule, which President Trump signed into law. In September 2025, the USEPA announced a proposal to end the GHG Reporting Program for all sectors except petroleum and natural gas systems (excluding reporting for natural gas distribution, which would also be eliminated under the proposal) and deferring reporting for petroleum and natural gas systems until 2034. In December 2025, the USEPA issued a final rule extending several compliance deadlines and timeframes associated with its 2024 methane rules. On February 12, 2026, the USEPA announced the repeal of its 2009 “Endangerment Finding” under the Clean Air Act, which found that GHGs endanger the public health and welfare of current and future generations and emissions of GHGs from motor vehicles contribute to GHG pollution. The repeal calls into question EPA's authority to regulate GHGs, as well as EPA's prior scientific assessment of climate change risks. Litigation regarding the repeal is anticipated and it is unclear how the repeal will impact EPA's regulation of GHG emissions going forward. However, state and local GHG initiatives may continue despite shifts in the federal approach to climate change.

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• The 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.

  Could happen

  In addition, the oil and gas industry is characterized by rapid technological change and the introduction of new products and services. Competitors that develop or adopt new technologies more quickly may gain a significant advantage, which could require us to incur substantial costs to remain competitive. Some industry participants have greater financial, technical, and personnel resources, enabling them to implement innovations sooner and more effectively than we can. Our ability to respond to these changes in a timely and cost efficient manner is uncertain, and if technologies we rely on become obsolete, our business, financial condition, or results of operations could be materially and adversely affected.

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