Gulfport Energy (GPOR) - Update

[dan_s]

In the last 3 months, 8 ranked analysts set 12-month price targets for GPOR. The average price target among the analysts is $18.81. The price targets range from $15 to $26.

GPOR closed at $12.76 on Friday, December 29.

I have updated my forecast/valuation model and it will be posted to the EPG website later today. My valuation increases by $1.00 to $31.00.

Things to remember about Gulfport:
> It is a "gasser" and Wall Street is not recommending gassers to their clients today. That can change very quickly.
> Gulfport is one of the most profitable companies in the Sweet 16. GAAP EPS for 2017 s/b $1.80 to $2.00, giving it the lowest PE ratio in the Sweet 16.
> Gulfport YOY production growth will be 50% to 54% in 2017, primarily because of the big SCOOP acquisition they made.
> Production mix today is 88% natural gas, 8% NGLs and 4% crude oil.
> The company has two core areas of operation; the Utica in Ohio and SCOOP in Oklahoma.
> Well results in SCOOP will determine where this stock price goes in 2018. So far, well results have been quite good. The SCOOP wells produce a lot of liquids. Liquids prices are going up. An improving production mix and solid earning quarter after quarter should draw more favorable comments from the Wall Street Gang.
> My forecast model is in-line with First Call Revenue, EPS and CFPS estimates for 2018 and 2019. In my opinion, my forecast is based on conservative production and commodity price assumptions.

If you want exposure to natural gas and NGLs, then GPOR is one you should consider. If not, then you should not invest in it, AR or RRC. They are the three "gassers" in our Sweet 16.