GPOR 25.1% int in TUSK
GPOR 25.1% int in TUSK
GPOR has a 25.1% int in Mammoth Energy Services (“TUSK”). Gulfport values its interest at $377 million in latest presentation equivalent to about 20% of market cap of GPOR. RJ has raised its target price for TUSK to $48based upon major reconstruction projects in Puerto RICO in addition to its oilfield services in the shale basins. More upside for GPOR.
Re: GPOR 25.1% int in TUSK
I have posted here many times that GPOR is one of the most profitable companies in the Sweet 16. 2017 actual results were EPS of $2.38 and operating CFPS of $3.45.
Wall Street has been overly negative on all of the gassers because EIA keeps preaching that we have a HUGE surge in natural gas supply coming online "any day now". EIA's predicted over-supply definitely has not shown up in the weekly ngas storage report. Just remember that the Wall Street Herd can change directions quickly. If ngas storage is over 400 Bcf below the 5-year average at the end of June, it should cause a lot more interest in the high quality gassers like AR, GPOR and RRC.
I have followed GPOR closely for over 8 years. I have a high level of confidence in the management team and in my forecast/valuation model for this one.
First Call's Price Target of $14.26 has slowly started to inch higher. Still a long way from my valuation of $28.00.
The ngas prices that I'm using in my 2018 forecast for GPOR now look about $0.20/mcf too low. Improving NGL market is also a big deal for GPOR, AR and RRC.
Wall Street's perception of a company sets the share price, but reality will win out in the end.
Wall Street has been overly negative on all of the gassers because EIA keeps preaching that we have a HUGE surge in natural gas supply coming online "any day now". EIA's predicted over-supply definitely has not shown up in the weekly ngas storage report. Just remember that the Wall Street Herd can change directions quickly. If ngas storage is over 400 Bcf below the 5-year average at the end of June, it should cause a lot more interest in the high quality gassers like AR, GPOR and RRC.
I have followed GPOR closely for over 8 years. I have a high level of confidence in the management team and in my forecast/valuation model for this one.
First Call's Price Target of $14.26 has slowly started to inch higher. Still a long way from my valuation of $28.00.
The ngas prices that I'm using in my 2018 forecast for GPOR now look about $0.20/mcf too low. Improving NGL market is also a big deal for GPOR, AR and RRC.
Wall Street's perception of a company sets the share price, but reality will win out in the end.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GPOR 25.1% int in TUSK
Your valuation is good. GPOR’s value will eventually get recognized and investors will profit. You uncovered a gem on this one.
Re: GPOR 25.1% int in TUSK
When Gulfport entered the Oklahoma SCOOP/STACK play several Wall Street analysts were critical of the deal. I like it because it gives Gulfport a second core area were wells produce more liquids. Big acquisitions take time to play out, but "long-term" on Wall Street is now around six months.
In addition to their ownership in TUSK, a profitable oilfield services company, Gulfport has a 25% stake In Grizzly. Grizzly is a Canadian Oil Sands company.
Mammoth Energy Services, Inc. (TUSK) operates as an integrated oilfield service company. The company operates in four segments: Pressure Pumping Services, Infrastructure Services, Natural Sand Proppant Services, and Contract Land and Directional Drilling Services. The Pressure Pumping Services segment provides high-pressure hydraulic fracturing services to enhance the production of oil and natural gas from formations having low permeability. The Infrastructure Services segment offers a range of services on electric transmission and distribution networks, and substation facilities, which include the construction, upgrade, maintenance, and repair of high voltage transmission lines, substations, and lower voltage overhead and underground distribution systems; storm repair and restoration services; and commercial services comprising installation, maintenance, and repair of commercial wiring. The Natural Sand Proppant Services segment is involved in mining, processing, and selling proppant for hydraulic fracturing; buying processed sand from suppliers on the spot market and reselling that sand; and providing logistics solutions to facilitate delivery of frac sand products. The Contract Land and Directional Drilling Services segment offers drilling rigs and crews for operators, as well as rental equipment, such as mud motors and operational tools for vertical and horizontal drilling. The company also other energy services, including coil tubing, pressure control, flowback, cementing, and remote accommodation services. Mammoth Energy Services, Inc. serves companies engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves, government-funded utilities, private and public investor owned utilities, and co-operative utilities. The company was founded in 2014 and is headquartered in Oklahoma City, Oklahoma.
In addition to their ownership in TUSK, a profitable oilfield services company, Gulfport has a 25% stake In Grizzly. Grizzly is a Canadian Oil Sands company.
Mammoth Energy Services, Inc. (TUSK) operates as an integrated oilfield service company. The company operates in four segments: Pressure Pumping Services, Infrastructure Services, Natural Sand Proppant Services, and Contract Land and Directional Drilling Services. The Pressure Pumping Services segment provides high-pressure hydraulic fracturing services to enhance the production of oil and natural gas from formations having low permeability. The Infrastructure Services segment offers a range of services on electric transmission and distribution networks, and substation facilities, which include the construction, upgrade, maintenance, and repair of high voltage transmission lines, substations, and lower voltage overhead and underground distribution systems; storm repair and restoration services; and commercial services comprising installation, maintenance, and repair of commercial wiring. The Natural Sand Proppant Services segment is involved in mining, processing, and selling proppant for hydraulic fracturing; buying processed sand from suppliers on the spot market and reselling that sand; and providing logistics solutions to facilitate delivery of frac sand products. The Contract Land and Directional Drilling Services segment offers drilling rigs and crews for operators, as well as rental equipment, such as mud motors and operational tools for vertical and horizontal drilling. The company also other energy services, including coil tubing, pressure control, flowback, cementing, and remote accommodation services. Mammoth Energy Services, Inc. serves companies engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves, government-funded utilities, private and public investor owned utilities, and co-operative utilities. The company was founded in 2014 and is headquartered in Oklahoma City, Oklahoma.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group