Gulfport Energy (GPOR) Update - October 17

[dan_s]

OKLAHOMA CITY, Oct. 16, 2019 (GLOBE NEWSWIRE) -- My comments in blue.- Dan.

Gulfport Energy Corporation (GPOR) (“Gulfport” or the “Company”) today provided an update for the three-months and nine-months ended September 30, 2019. Key information includes the following:

Net production during the third quarter of 2019 averaged 1,527.0 MMcfe per day, a 12% increase over the second quarter of 2019. < Compares to my Q3 production forecast of 1,401 MMcfepd.

Gulfport's realized commodity prices, including the cash settlements on their hedges during the quarter exceeded my forcasts.
> Oil cash price of $56.40/bbl, compared to my forecast of $53.00
> Natural gas cash price of $2.21/mcf, compared to my forecast of $2.00
> NGL cash price of $20.58/bbl, compared to my forecast of $20.00

Gulfport drilled 2 gross and net operated wells in the Utica Shale and 1 gross and net operated well in the SCOOP during the third quarter of 2019 and had 1 gross well drilling at the end of the third quarter of 2019.
Gulfport completed 3 gross (1.8 net) operated wells in the Utica Shale during the third quarter of 2019 and had 2 gross wells in various stages of completion at the end of the third quarter of 2019.
Gulfport turned-to-sales 16 gross (10.5 net) operated wells in the Utica Shale during the third quarter of 2019.
Forecasted 2019 full year net production is estimated to average at the midpoint of the Company's previously provided guidance range of 1,360 MMcfe to 1,400 MMcfe per day.
Third Quarter 2019 Production and Realized Prices
Gulfport’s net daily production for the third quarter of 2019 averaged approximately 1,527.0 MMcfe per day. For the third quarter of 2019, Gulfport’s net daily production mix was comprised of approximately 93% natural gas, 5% NGL and 2% oil. < The only negative is that Gulfport's production was a bit more "gassy" than I forecast.

Third Quarter 2019 Conference Call Information
Gulfport will hold a conference call on Friday, November 1, 2019 at 8:00 a.m. CDT to discuss its third quarter of 2019 financial and operational results and to provide an update on the Company’s recent activities. Gulfport's third quarter of 2019 earnings are scheduled to be released after the market close on Thursday, October 31, 2019.

Interested parties may listen to the call via Gulfport’s website at www.gulfportenergy.com or by calling toll-free at 866-373-3408 or 412-902-1039 for international callers. A replay of the call will be available for two weeks at 877-660-6853 or 201-612-7415 for international callers. The replay passcode is 13695468. The webcast will also be available for two weeks on the Company’s website and can be accessed on the Company’s “Investor Relations” page.

About Gulfport
Gulfport is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America and is one of the largest producers of natural gas in the contiguous United States. Headquartered in Oklahoma City, Gulfport holds significant acreage positions in the Utica Shale of Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. In addition, Gulfport holds an approximately 22% equity interest in Mammoth Energy Services, Inc. (TUSK) and has a position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC. For more information, please visit www.gulfportenergy.com.

[dan_s]

GPOR closed at $2.81 today. Since the company released Q2 results three analysts have updated their price targets to $3.00, $6.00 and $7.00. First Call's price target is $5.04, but it does include some very old forecasts.

GPOR is profitable and funding all of their capital expenditures with cash flow from operations. It should generate close to $100 million of FREE CASH FLOW FROM OPERATIONS this year.

Actual results:
2017: $2.38 EPS and $3.45 operating CFPS
2018: $2.64 EPS and $5.09 operating CFPS
1H 2019: $1.86 EPS and $2.17 operating CFPS
First Call's full year forecast for 2019 is EPS of $2.43 and operating CFPS of $4.39, so GPOR's PE ratio is slightly over 1.

Over 95% of Gulfport's natural gas in 2H 2019 is hedged at $2.81/mcf with Swaps.

The Wall Street Gang is negative on the "gassers" and that probably won't change until we get a cold winter that pushes natural gas prices higher. Until that happens, Gulfport will just keep reporting solid results quarter-after-quarter. First Call's Q3 forecast is $0.26 EPS and $1.16 operating cash flow per share (CFPS).