Oil & Gas Market Update (podcast) - Oct 20
Posted: Sat Oct 20, 2018 2:33 pm
Here is the link to this week's podcast: https://youtu.be/AhAkPvjyFKA
In the podcast I spend about six minutes going over the Gulfport Energy (GPOR) forecast/valuation model.
> I picked GPOR just because they provided an operations update last week that included the realized oil, gas and NGL prices that they actually were paid for their production in Q3.
> My point is to show you how profitable GPOR and all of the Sweet 16 companies are at much lower commodity prices than we have today.
> I also want to show you how valuable the forecast models can be if you just take 30 minutes to understand them.
> The models are "macro driven", so when you change any of the assumptions at the bottom, they automatically update Revenues, EPS and operating CFPS.
> Notice how significant an impact that a $0.25/mcf increase in realized gas prices has on Gulfport's EPS.
> BTW Gulfport's realized gas price is sure to be much higher in Q4 than it was in Q3.
One thing that I forgot to mention is that Gulfport has a aggressive stock buyback program in place because they believe their stock is grossly oversold. I do too.
In the podcast I spend about six minutes going over the Gulfport Energy (GPOR) forecast/valuation model.
> I picked GPOR just because they provided an operations update last week that included the realized oil, gas and NGL prices that they actually were paid for their production in Q3.
> My point is to show you how profitable GPOR and all of the Sweet 16 companies are at much lower commodity prices than we have today.
> I also want to show you how valuable the forecast models can be if you just take 30 minutes to understand them.
> The models are "macro driven", so when you change any of the assumptions at the bottom, they automatically update Revenues, EPS and operating CFPS.
> Notice how significant an impact that a $0.25/mcf increase in realized gas prices has on Gulfport's EPS.
> BTW Gulfport's realized gas price is sure to be much higher in Q4 than it was in Q3.
One thing that I forgot to mention is that Gulfport has a aggressive stock buyback program in place because they believe their stock is grossly oversold. I do too.