Gulfport Energy (GPOR)
Posted: Mon Aug 29, 2016 2:31 pm
I will be sending out an updated profile on Gulfport later today. I have double checked all of my numbers in the Gulfport forecast model, just making a few minor adjustments. My valuation remains $45.00, compared to First Call's price target of $35.54.
Gulfport is adding a 4th drilling rig in September and they will be completing over a dozen high volume wells to gathering systems before year-end.
With over 80% of their 2H 2016 gas production hedged at $3.20/mmbtu, their cash flows from operations will be solid. If natural gas prices average $3.25 at Henry Hub in 2017, Gulfport should be able to fund ~25% annual production growth with cash flows from operations. They have over 800 low-risk / high-volume horizontal drilling locations in the heart of the Utica Shale play. Midstream companies are adding more takeaway capacity that will allow Gulfport to get their gas and NGLs to better markets in 2017.
If you listened to my podcast, you know that the outlook for natural gas and NGLs is rapidly improving. GPOR is one of my Top Picks in this space.
Gulfport is adding a 4th drilling rig in September and they will be completing over a dozen high volume wells to gathering systems before year-end.
With over 80% of their 2H 2016 gas production hedged at $3.20/mmbtu, their cash flows from operations will be solid. If natural gas prices average $3.25 at Henry Hub in 2017, Gulfport should be able to fund ~25% annual production growth with cash flows from operations. They have over 800 low-risk / high-volume horizontal drilling locations in the heart of the Utica Shale play. Midstream companies are adding more takeaway capacity that will allow Gulfport to get their gas and NGLs to better markets in 2017.
If you listened to my podcast, you know that the outlook for natural gas and NGLs is rapidly improving. GPOR is one of my Top Picks in this space.