GPOR - Credit Suisse says NAV is $35.00

[dan_s]

In a Credit Suisse report dated March 24, 2017 they do an extensive analysis of Gulfport Energy (GPOR) and come to a Net Asset Value of $35/share. My valuation remains $40/share, primarily because I assume higher natural gas and NGL prices. - Dan

"While we understand the debate around the SCOOP given the lack of historic results,
GPOR's selloff relative to its peers (FIG 10) appears overdone given the market is pricing
GPOR's equity value ~$500mm lower despite having an asset which the company paid
$1.85bn for. In other words, rough math would indicate that the market expects the
acreage to have -$500mm of NAV (that's half-cycle math and putting strip price movement
and debt effects aside), a number that also does not give any value to the relatively safe
PDP production (~$570MM above). In comparison, we have $450MM of undeveloped
value in our NAV ($33/sh) and see upside to $900MM with proper execution ($35/sh),
especially considering GPOR closed last night at $15.89."