Gulfport Current price $139.18
Excerpts credit to Elephant Analytics
Gulfport Energy (NYSE:GPOR) is refinancing its May 2026 notes with new September 2029 notes that carry a 1.25% lower interest rate. This pushes Gulfport's note maturity out by over three years and also end up saving it roughly $6 million per year in interest costs.
Near-term natural gas prices are fairly weak, but with the help of hedges, Gulfport is projected to generate $173 million in 2H 2024 free cash flow and $350 million to $400 million in 2025 free cash flow at current strip.
Operational efficiencies and the impact of continued share repurchases, increases my estimate of its value by $5 per share compared to a few months ago. I now estimate its value at $159 to $176 per share, and consider it a buy at its current sub-$140 share price.
Estimated Valuation
At the current strip for 2025 (including $3.15 NYMEX), I believe that Gulfport can generate $350 million to $400 million in free cash flow after hedges. This is a scenario that involves modest production growth and does not include spending on discretionary acreage acquisitions.