GPOR
Posted: Tue Apr 30, 2019 9:27 am
That is a good article that matches up with my forecast/valuation model for GPOR.
All four of the "gassers" will have a tough time getting much "love" from the Wall Street Gang this time of year. We are in the middle of the first "Shoulder Season" when the weekly storage reports will show big builds week-after-week. In June, we should see the builds getting smaller because we have many more gas fired power plants that fire up when the summer heat arrives.
I just finished working on the SWN profile update. Despite "Kick Ass" Q1 results, an 8% drop in their outstanding shares and a MUCH STRONGER balance sheet, SWN is still trading at 2X operating cash flow per share.
SWN trades at a PE ratio under 3. That is insane.
AR, GPOR, RRC and SWN all trade at less than the Net Asset Value of just their proven reserves (P1). Again, that is insane.
Over the years I have found that natural gas can stay out-of-favor with the Wall Street Gang until it isn't. BTW global demand for natural gas is growing at ~3X the rate of growth of crude oil.