Gulfport Energy (GPOR) Update - Feb 18

[dan_s]

I have updated my forecast/valuation model for GPOR and posted it to the EPG website.

GPOR is trading at $1.28 today, which compares to First Call's price target of $2.71

Gulfport is one of three "Gassers" in our Small-Cap Growth Portfolio.
> It is profitable and it is generating free cash flow from operations today.
> Capex program for 2020 s/b totally covered by cash flow from operations.
> Q4 2019 should include ~$25 million gain on debt extinguishment. They booked a $23.6 million gain on debt extinguishment in Q3 2019 as they continue to buy back debt at a nice discount.
> GPOR has no near-term liquidity problem.
> Net asset value using P1 reserves as of 12/31/2018 and debt as of 9/30/2019 is $6.23. < NAV is (Current Assets + PV10 of P1 reserves)/outstanding shares
> ~42% of 2020 gas production is hedged at $2.88/MMBtu
> During first three quarters of 2019, Gulfport received $80.7 million cash settlements on their hedges.