SCHEDULE: Silver Point Converts Gulfport Preferred Stock to Common

Silver Point Capital and its principals converted all their Gulfport Energy preferred stock into common shares following a redemption notice, increasing their common stock holdings to 19.4%.

Summary

• Silver Point Capital, L.P., Edward A. Mule, and Robert J. O'Shea (Reporting Persons) converted 23,743 shares of Gulfport Energy Corporation Preferred Stock into 1,741,150 shares of Common Stock.
• This conversion occurred on September 4, 2025, in response to Gulfport Energy's notice of redemption for the Preferred Stock.
• Following the conversion, the Reporting Persons beneficially own 3,739,920 shares of Common Stock.
• This represents approximately 19.4% of Gulfport Energy's Common Stock, calculated based on 17,561,724 shares outstanding as of July 30, 2025, plus the newly converted shares.
• An Issuer's Form 8-K filed on September 5, 2025, indicated that approximately 2.1 million additional shares of Common Stock became outstanding due to conversions, which would adjust the Reporting Persons' beneficial ownership to approximately 19.0%.

Sentiment

Score: 6

Explanation: The conversion of preferred stock to common stock is a neutral to slightly positive event, as it simplifies the capital structure and eliminates fixed dividend obligations for the company. While it increases common share count, this was an expected outcome of the preferred stock terms.

Positives

• The conversion of preferred stock into common stock can simplify the capital structure for Gulfport Energy Corporation.
• The redemption of preferred stock eliminates a fixed dividend obligation for Gulfport Energy, potentially improving cash flow.

Negatives

• The increase in common stock outstanding due to the conversion could lead to dilution for existing common shareholders, although this specific conversion was anticipated.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance from the company or the reporting persons beyond the factual reporting of the conversion event.

Industry Context

This filing reflects a common event in corporate finance where preferred stock, often issued during restructuring or as a financing tool, is either redeemed by the issuer or converted by holders into common equity. For an energy company like Gulfport, simplifying the capital structure can be seen positively by the market, especially if it reduces fixed obligations.

Comparison to Industry Standards

• The conversion of preferred stock to common stock is a standard mechanism, particularly when preferred shares are callable or have conversion features.
• Many energy companies, especially those that have undergone financial restructuring, utilize preferred stock as part of their capital structure, and the eventual conversion or redemption is a typical step towards a more streamlined equity base.
• No specific comparable companies or projects are mentioned in the filing to allow for a direct comparison of results.

Corporate Governance

Stakeholder Impact

• Shareholders (Common): Potential for slight dilution due to increased common shares outstanding, but also a simplified capital structure.
• Shareholders (Preferred): Their preferred shares were converted into common shares, changing their investment type.
• Company (Gulfport Energy): Simplified capital structure, elimination of preferred stock dividend obligations.

Next Steps

• Gulfport Energy Corporation will continue to operate with a simplified capital structure.
• Silver Point Capital, L.P. and its principals will continue to hold their common stock position in Gulfport Energy Corporation.

Key Dates

Recommendation

The filing details a routine conversion of preferred stock to common stock following a redemption notice, which was an expected event. While it slightly increases the common share count, it also simplifies the company's capital structure by eliminating preferred stock. This event does not introduce new material information that would fundamentally alter the investment thesis for Gulfport Energy, thus a 'hold' recommendation is appropriate for existing investors.

Keywords

Gulfport Energy, Silver Point Capital, Preferred Stock Conversion, Common Stock, Beneficial Ownership, SEC Filing, Schedule 13D, Shareholder Activity, Capital Structure