North American Oil & Gas: The Gas Digest – Takeaways From AR Update & GPOR Mgmt. Catchup

Research evidence excerpt

North American Oil & Gas: The Gas Digest – Takeaways From AR Update & GPOR Mgmt. Catchup

Global Research

24 June 2026ab

North American Oil & Gas Equities

AmericasThe Gas Digest – Takeaways From AR Update

& GPOR Mgmt. Catchup Energy

Josh Silverstein

Analyst

josh.silverstein@ubs.com

AR Highlighting Long-Term Cost Improvement +1-212-713 3513

In a presentation this week, AR highlighted the potential for >$0.35/mcfe Peyton Dorne

EBITDAX margin improving by YE28 vs. 2025 levels, resulting in ~$300mm of FCF uplift Analyst

at a flat commodity deck. We had discussed cost structure improvements at our recent peyton.dorne@ubs.com

Denver HQ visit (link), but the presentation more formally outlines the path to support to +1-212-713 4359

stronger underlying FCF generation from the asset base. The uplift comes from a $0.70/ William Barber

mcfe cost reduction, offset by a $0.35/mcfe decline in realizations from mix and sales Associate Analyst

locations. A large portion of the cost reduction has already been implemented, with william.barber@ubs.com

$0.30 coming from HG integration and Firm Transport Obligation reduction strategies +1-212-713 5553

to reach the $2.40/mcfe 2Q-4Q26 cost guidance. The remaining $0.40 is mostly coming Nayoung Kim

from the roll off of legacy Firm Transport contracts at YE28 and a small contribution from Analyst

VPP terminations. AR remains our Top Nat Gas Pick. We see this outlook showing nayoung.kim@ubs.com

improving underlying FCF generation improvement over the next three years, with +44-20-7568 4010

potential upside as they execute power supply agreements that can support higher

volumes and improved realizations.

GPOR Management Meeting Takeaways

We also met this week with GPOR's management. GPOR has lagged both the E&P sector