In a note to clients on Monday, Josh Silverstein of Deutsche Bank discussed Gulfport Energy Corporation (NASDAQ: GPOR) and what to look for in the coming year.
“2014 was a year of transition at Gulfport Energy that saw new leadership emerge and a strategy shift from run and gun to a more managed pace of development,” Silverstein wrote. “While the change was initially painful, in our view it was prudent and the company has executed on deliverables since.”
According to Silverstein, the company is set to enter 2015 with underlying production and wells trends “heading in the right direction.” The analyst adds that he has “increased confidence” in the company's Utica resource and that the company is “one of the better” positioned gas-focused companies.
Silverstein expects a year end 2014 exit rate (approximately 60mboepd estimate) and 2015 guidance to be presented by late January. The analyst adds that based on a production standpoint, the company will see a current run rate of turning 14 to 21 wells to sales per quarter continuing into 2015, generating 10+mboepd quarterly growth with a backlog of three to five pads in hand, drill days to decline as well as increased activity in the second half of 2014.
Shares are Buy rated with a $60 price target. < Compares to my Fair Value Estimate of $62.15 - Dan
Gulfport Energy (GPOR)
Gulfport Energy (GPOR)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Gulfport Energy (GPOR)
Topeka Capital Markets initiated coverage on Gulfport Energy Corporation (NASDAQ: GPOR) Monday with a Buy rating and $58 price target.
Analyst Gabriele Sorbara noted that “with the recent reset of expectations and weakness in natural gas prices, we believe a strong entry point has emerged ahead of a tremendous production growth story, driven by the Utica.”
According to Sorbara, the company’s “Utica position has been largely de-risked, and we now believe GPOR is set up to execute, given:
1) “its Utica acreage is primarily in the core (~184,500 net acres) and the transition to greater activity in the dry gas window presents upside;
2) “its strong balance sheet and liquidity position, with options to further enhance liquidity; and
3) “its solid hedge book, with the best firm takeaway capacity in the basin, ensures ongoing activity. Lastly, with its rich asset base and upside potential concentrated in the core Utica shale, we believe GPOR stands out as an attractive takeout candidate.”
Analyst Gabriele Sorbara noted that “with the recent reset of expectations and weakness in natural gas prices, we believe a strong entry point has emerged ahead of a tremendous production growth story, driven by the Utica.”
According to Sorbara, the company’s “Utica position has been largely de-risked, and we now believe GPOR is set up to execute, given:
1) “its Utica acreage is primarily in the core (~184,500 net acres) and the transition to greater activity in the dry gas window presents upside;
2) “its strong balance sheet and liquidity position, with options to further enhance liquidity; and
3) “its solid hedge book, with the best firm takeaway capacity in the basin, ensures ongoing activity. Lastly, with its rich asset base and upside potential concentrated in the core Utica shale, we believe GPOR stands out as an attractive takeout candidate.”
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group