Section 382 Rights Plans continue to gain momentum. Various companies, including Gulfport Energy Corporation, are putting them in place to protect their tax NOLs.
On April 30, 2020 Gulfport Energy Corporation (NASDAQ: GPOR) announced that its Board of Directors unanimously adopted a tax benefits preservation plan.
Gulfport is an independent natural gas and oil company.
As of December 31, 2019, Gulfport had approximately $1.3 billion of federal NOLs available.
These NOLS could be used to offset its future taxable income.
Section 382 could impair Gulfport’s ability to use these NOLs. Due to recent high volatility and trading volumes in the Company’s stock , Gulfport determined to adopt the Tax Benefits Preservation Plan to prevent an inadvertent impairment of its NOLs.
The Tax Benefits Preservation Plan is similar to plans adopted by other companies with significant NOLs.
The Tax Benefits Preservation Plan expires on April 29, 2021.