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Gulfport Energy ROIC %

: 66.14% (As of Jun. 2022)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Gulfport Energy's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2022 was 66.14%.

As of today (2022-08-19), Gulfport Energy's WACC % is 9.99%. Gulfport Energy's ROIC % is 38.53% (calculated using TTM income statement data). Gulfport Energy generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Gulfport Energy ROIC % Historical Data

The historical data trend for Gulfport Energy's ROIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Gulfport Energy Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.39 9.38 2.90 -1.23 -

Gulfport Energy Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROIC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 33.25 - 48.45 66.14

Competitive Comparison

For the Oil & Gas E&P subindustry, Gulfport Energy's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Gulfport Energy ROIC % Distribution

For the Oil & Gas industry and Energy sector, Gulfport Energy's ROIC % distribution charts can be found below:

* The bar in red indicates where Gulfport Energy's ROIC % falls into.



Gulfport Energy ROIC % Calculation

Gulfport Energy's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

ROIC % (A: Dec. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2020 ) + Invested Capital (A: Dec. 2021 ))/ count )
=0 * ( 1 - 0% )/( (2395.505 + 2135.598)/ 2 )
=0/2265.5515
=0.00 %

where

Invested Capital(A: Dec. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2539.871 - 244.903 - ( 89.861 - max(0, 510.287 - 409.75+89.861))
=2395.505

Gulfport Energy's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2022 is calculated as:

ROIC % (Q: Jun. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Jun. 2022 ))/ count )
=1794.636 * ( 1 - 0% )/( (2759.633 + 2667.521)/ 2 )
=1794.636/2713.577
=66.14 %

where

Invested Capital(Q: Mar. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2211.52 - 398.067 - ( 5.898 - max(0, 1218.495 - 272.315+5.898))
=2759.633

Invested Capital(Q: Jun. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2374.661 - 453.088 - ( 6.581 - max(0, 1127.656 - 381.708+6.581))
=2667.521

Note: The Operating Income data used here is four times the quarterly (Jun. 2022) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Gulfport Energy  (NYSE:GPOR) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Gulfport Energy's WACC % is 9.99%. Gulfport Energy's ROIC % is 38.53% (calculated using TTM income statement data). Gulfport Energy generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases. Gulfport Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Gulfport Energy ROIC % Related Terms

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Gulfport Energy Business Description

Gulfport Energy logo
Traded in Other Exchanges
Address
3001 Quail Springs Parkway, Oklahoma City, OK, USA, 73134
Gulfport Energy Corp is an independent exploration and development company. The company operates through Utica Shale and Scoop properties. The Utica Shale is located in the Appalachian Basin of the United States and Canada. The Scoop (South Central Oklahoma Oil Province) play of Oklahoma is located in the southeast portion of the prolific Anadarko Basin.
Executives
Moses Robert John officer: SVP, Operations & Drilling 3001 QUAIL SPRINGS PARKWAY OKLAHOMA CITY OK 73134
Silver Point Capital L.p. director, 10 percent owner TWO GREENWICH PLAZA, FIRST FLOOR GREENWICH CT 06830
Mule Edward A director, 10 percent owner C/O SILVER POINT CAPITAL L.P. TWO GREENWICH PLAZA, FIRST FLOOR GREENWICH CT 06830
O'shea Robert J director, 10 percent owner C/O SILVER POINT CAPITAL L.P. TWO GREENWICH PLAZA, FIRST FLOOR GREENWICH CT 06830
Reganato David A director TWO GREENWICH PLAZA GREENWICH CT 06830
Wolf David D director 5221 N. O'CONNOR BOULEVARD 11TH FLOOR IRVING TX 75039
Martinez Jason Joseph director 1 TOKENEKE TRAIL HOUSTON TX 77024
Martinez Guillermo director 2425 BINZ ST. HOUSTON TX 77004
Cutt Timothy J. director, officer: Interim CEO 3001 QUAIL SPRINGS PKWY OKLAHOMA CITY OK 73134
Buese William J officer: Chief Financial Officer 3001 QUAIL SPRINGS PKWY OKLAHOMA CITY OK 73134
Somerhalder John W Ii director 76 SOUTH MAIN STREET AKRON OH 44308
Wood David M. director, officer: President & CEO 200 PEACH STREET P.O. BOX 7000 EL DORADO AR 71730
Hicks Quentin R officer: CFO 1000 LOUISIANA STREET, SUITE 6700 HOUSTON TX 77002
Sluiter Michael officer: SVP of Reservoir Engineering 3001 QUAIL SPRINGS PARKWAY OKLAHOMA CITY OK 73134
Moore Donnie G officer: COO 3001 QUAIL SPRINGS PARKWAY OKLAHOMA CITY OK 73134

Gulfport Energy Headlines

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