12:44 pm ET
*Gulfport Energy shares are trading lower [.58] after Morgan Stanley maintained an Underweight rating on the stock and lowered its price target from $0.75 to $0.25.
==Benzinga
Bk? Opinions?
GPOR
Re: GPOR
Balance Sheet and Liquidity from August 4, 2020 press release
As of June 30, 2020, the Company’s liquidity totaled approximately $255.7 million, comprised of the $700 million borrowing base plus approximately $2.8 million in cash on hand less $324.1 million outstanding letters of credit and $123.0 million of revolver draw.
My forecast model is based on the low end of their 8/4/2020 updated guidance.
~44% of 2H 2020 natural gas is hedged at $2.78/Mmbtu.
Gulfport is generating FCF today and gas price are going a lot higher this winter.
Higher NGL prices should give revenues a nice boost.
As of June 30, 2020, the Company’s liquidity totaled approximately $255.7 million, comprised of the $700 million borrowing base plus approximately $2.8 million in cash on hand less $324.1 million outstanding letters of credit and $123.0 million of revolver draw.
My forecast model is based on the low end of their 8/4/2020 updated guidance.
~44% of 2H 2020 natural gas is hedged at $2.78/Mmbtu.
Gulfport is generating FCF today and gas price are going a lot higher this winter.
Higher NGL prices should give revenues a nice boost.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GPOR
Some of the debt holders of companies filing for Chapter 11 must not understand the process. Debt holders don't come out ahead in Chapter 11; lawyers do.
With natural gas prices heading to over $3.00 in just a few months, GPOR should be fine. The debt holders would be foolish to push them over the edge, but there are a lot of foolish people running around these days.
Based on much lower gas prices than we have TODAY, Gulfport's proved reserves (just P1) had a PV10 valuation of $1.7 Billion at December 31, 2019. Using $3.00 gas price they may be over $3 Billion.
With natural gas prices heading to over $3.00 in just a few months, GPOR should be fine. The debt holders would be foolish to push them over the edge, but there are a lot of foolish people running around these days.
Based on much lower gas prices than we have TODAY, Gulfport's proved reserves (just P1) had a PV10 valuation of $1.7 Billion at December 31, 2019. Using $3.00 gas price they may be over $3 Billion.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group