Tue, Sep. 1, 5:18 PM
- SunTrust’s energy team suggests four E&P stocks it believes “can thrive at $55 and easily survive at $35" oil: Carrizo Oil & Gas (NASDAQ:CRZO), Concho Resources (NYSE:CXO), Gulfport Energy (NASDAQ:GPOR) and PDC Energy (NASDAQ:PDCE).
- The firm believes the four companies can grow production 200%-plus next year if oil surpasses $50/bbl but more importantly can spend relatively within cash flow while doing so, with the option of dramatically cutting spending and activity if oil falls toward $35, yet their cash flow coverage actually could increase slightly.
- SunTrust says the companies are best positioned to take advantage of either type of oil environment, and rates each of them a Buy.
Tue, Aug. 25, 12:18 PM
- Occidental Petroleum (OXY +3.7%), Diamondback Energy (FANG +1.2%), Gulfport Energy (GPOR +3.3%) and Rice Energy (RICE +1.3%) are recommended by Sterne Agee CRT analyst Tim Rezvan as "high conviction long ideas" in the energy sector for investors wary of the group amid structural issues facing global oil markets that appear unlikely to abate this year.
- OXY shares are "an attractive port amid the current oil volatility storm," Rezvan writes, believing the sustainable 4.6% yield - vs. other less stable, higher yielding energy equities - should provide a floor for the shares near the current level.
- FANG is seen as an underlevered pure-play in a premier oil shale basin with no legacy assets to weigh on operating expenses, which the firm says maintains the lowest full-cycle costs in its coverage group.
Wed, Aug. 5, 4:05 PM
Tue, Jul. 28, 6:43 PM
- The days of oil companies getting “free passes” is over and investors should stick with “durable names” such as Gulfport Energy (NASDAQ:GPOR), Memorial Resource Development (NASDAQ:MRD) and RSP Permian (NYSE:RSPP), Wunderlich analysts say.
- The firm believes many E&P companies were given a reprieve this spring with a generous equity market and a fairly benign credit redetermination period, but it expects H2 "to look very different with no more free passes on the equity front... The fall bank redeterminations could be particularly challenging, especially in light of increased regulatory scrutiny. We would not be surprised to see many credit lines reduced significantly and those with ample funds drawn in a tough spot."
- Continue to "bank on the stronger names, as there will be more pain to come for the weaker names,” the firm says; aside from GPOR, RSPP and MRD, its Buy-rated names include PDC Energy (NASDAQ:PDCE) and Synergy Resources (NYSEMKT:SYRG).
Mon, Jul. 27, 3:58 PM
- Gulfport Energy (GPOR -5.4%) sinks to a 52-week low despite reporting Q2 net production of 473.9MM cfe/day, beating its previously estimated guidance of 445MM-455MM cfe/day.
- GPOR says its Q2 Utica Shale production totaled 457.6MM cfe/day, or 97% of aggregate net production vs. 93% and 79% during Q1 and in Q2 2014, respectively.
- GPOR says it spud nine gross (6.7 net) wells and turned-to-sales 19 gross (14.5 net) wells during the quarter, all located within the dry gas phase window of the play; as of June 30, the company had ~137 gross (103.8 net) wells producing in the Utica Shale.
Mon, Jul. 20, 2:29 PM
- Whiting Petroleum (WLL -4.1%) is upgraded to Positive from Neutral with a $33 price target at Susquehanna, saying it now believes the valuations of many E&P stocks are finally starting to look more reasonable.
- Drivers from WLL include the company’s reserve growth potential via its positions in the Bakken and Niobara, and improvement in capital efficiency due to its focus on enhanced completions, Susquehanna says.
- The firm names Newfield Exploration (NFX -1.2%), Continental Resources (CLR -2.6%) and Devon Energy (DVN -2.3%) as its preferred oil names and Gulfport Energy (GPOR -3.7%) as its favorite gas play.
- Last week's news of sales of two WLL non-core conventional properties for $185M piques the interest of Capital One Securities, which says WLL's Belfield and Robinson Lake gas plants could be next on the chopping block and could take 2015 asset sale proceeds to the top end of WLL's guided range of $500M-$1B for the year.
Tue, Jun. 16, 5:45 PM
- The strained finances at U.S. E&P shale companies caused by collapsing crude oil prices is well known, and some analysts say the pain may be compounded by a steep drop in prices for natural gas liquids caused by oversupply, partly due to infrastructure constraints.
- SM Energy (NYSE:SM) said yesterday the price it is receiving for NGLs at the Mont Belvieu delivery point fell 36% Q/Q to $16.67/bbl and that the price declines would lower its 2015 total budgeted revenue by ~$25M while not affecting its drilling or production.
- Barclays recently said Chesapeake Energy (NYSE:CHK) could see 2016 cash flow cut by up to 3% if NGL price weakness persists, while Range Resources (NYSE:RRC) may see its cash flow cut by up to 5%; APC, DVN, PXD, QEP, SWN, ECA and EOG also could see reduced cash flow related to NGL pricing, the firm said.
- Analysts at Tudor Pickering have a more optimistic view and expect an NGL pricing recovery next year, as cresting U.S. nat gas and crude production looks to be flat-to-declining through 2016, giving U.S. infrastructure time to catch up; the firm upgrades SWN to Accumulate from Hold, with GPOR, MRD, COG, RICE and ECA as other top picks, and UPL and EQT recommended on weakness.
- ETFs: UNG, UGAZ, DGAZ, BOIL, GAZ, KOLD, UNL, DCNG
Thu, Jun. 11, 2:58 PM
- Gulfport Energy (GPOR +0.7%) recovers some of yesterday's 2% loss that followed its ~$406M purchase of Utica Shale acreage and assets and concurrent 10M-share public offering.
- Morgan Stanley analyst Drew Venker says the deal strengthens GPOR's existing position in the area, and the $9,500/undeveloped net acre transaction price compares favorably to an average price of $14K/acre for recent acquisitions in the Dry Gas window.
- The firm also says GPOR's intention to add one rig to operate on the acquired acreage beginning in Q1 2016 increases its 2016 production growth estimate to 50% Y/Y from 37% previously.
Tue, Jun. 9, 6:53 PM
- Gulfport Energy (NASDAQ:GPOR) -4.8% AH after agreeing to buy more than 35K acres from Aubrey McClendon-backed American Energy-Utica in the Utica Shale play in Ohio for ~$406M.
- The acreage in eastern Ohio's Belmont, Monroe and Jefferson counties is considered some of the best counties for natural gas production in the state.
- Once the deals go through, GPOR will hold 243K acres under lease in the heart of the shale play.
- To fund the deal, GPOR is launching a public offering of 10M common shares, with an underwriters option to purchase up to an additional 1.5M shares.
Fri, Jun. 5, 10:53 AM
- Gulfport Energy (GPOR +1.5%) is upgraded to Outperform from Market Perform with a $55 price target, raised from $50, at FBR Capital, which sees an attractive entry point following a 15% pullback since mid-April and visible asset catalysts that should materialize this summer.
- FBR says several quarters of strong execution offer confidence that GPOR's Utica operations are at an inflection point, while the company's strong balance sheet can facilitate peer-leading production growth; continued execution on GPOR's growth strategy also should drive valuation multiple expansion.
Mon, Jun. 1, 12:57 PM
- Gulfport Energy (GPOR +0.3%) is upgraded to Outperform from Market Perform at Wells Fargo, citing GPOR's assets, improving operational track record and reasonable valuation.
- The firm thinks GPOR is reaching an inflection point in the development of its Utica asset as it transitions more heavily toward the high impact dry gas window, which should drive strong production growth and capital efficiency gains going forward.
- Wells expects GPOR's 2015 guidance to prove conservative, given Q1's strong production results; GPOR has indicated it intends to add a fourth rig on its Paloma properties, following the completion of the Paloma acquisition in Q2, which the firm foresees leading to nearly 50% Y/Y growth in 2016.
Mon, May 18, 7:45 PM
- Goldman Sachs had a lot to say about all corners of the energy sector today in addition to the cut in its long-term oil price forecast, its Sell recommendations for oil majors BP, Statoil (NYSE:STO) and Chevron (NYSE:CVX), and its gloomy outlook for offshore drillers Transocean (NYSE:RIG), Diamond Offshore (NYSE:DO) and Atwood Oceanics (NYSE:ATW).
- Goldman awards a Buy rating for Exxon Mobil (NYSE:XOM), "the only U.S. or European major that can generate sufficient free cash flow to cover its dividend near $60/bbl in 2016-17"; while the firm says other oil majors will be struggling to keep the dividend flat, XOM will be in a position to increase the dividend for the next several years.
- With its expectation for long-term weakness in oil and gas prices, Goldman sees risk exposure in many names that are reliant on commodity prices, suggesting selling LINE, DPM, NGLS, while predicting PAGP and NS would benefit from a removal of the U.S. crude oil export ban.
- The firm thinks many midstream MLP names now offer attractive valuations, recommending ENB, EPD, ETE, PAA, SXL, WNRL.
- Goldman sees an upturn for frac sand provider Emerge Energy (NYSE:EMES), upgrading shares to Buy from Neutral.
- Other Buys: CLR, NFX, CQP, HEP.
- Other Sells: TRP, TCP, GPOR, MUR, GTE
Wed, May 13, 5:42 PM
- U.S. oil exploration and production companies could be back drilling again sooner than expected, Susquehanna analysts say, seeing an improving landscape for many oil projects due to higher well productivity and lower service costs.
- Commentary from several Permian operators has indicated the possibility of boosting activity levels in H2, and the firm thinks producers likely will start adding rigs if oil prices remain over $60/bbl in H2, when there should be more clarity around the upcoming OPEC meeting and possible lifting of Iran sanctions, both of which have been cited as variables that could drive oil prices lower.
- Susquehanna has a generally bullish view on E&P stocks at current prices, and has a Positive rating on CLR, DVN, EOG, GPOR, NFX and RRC.
Tue, May 5, 4:37 PM
Mon, May 4, 5:35 PM
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Wed, Apr. 15, 4:47 PM
- Gulfport Energy (NASDAQ:GPOR) -2.6% AH on news it agrees to acquire Macquarie subsidiary Paloma Partners III for $300M; Paloma holds ~24K net non-producing acres in the core of the dry gas window of the Utica Shale in Ohio.
- To help pay for the deal, GPOR announces a public offering of 7.5M common shares, with an underwriters option to purchase up to additional 1.125M shares, and proposes to offer $300M of senior notes due 2023.
- Also, GPOR says it produced oil and natural gas sales volumes of 424MM cfe/day during Q1, beating its previous guidance of 378MM-390MM cfe/day; for Q1, GPOR's production mix was 68% natural gas and 32% oil and natural gas liquids.
GPOR vs. ETF Alternatives
Gulfport Energy Corp is an independent oil and natural gas exploration and production company focused on the exploration, exploitation, acquisition and production of crude oil, natural gas liquids and natural gas in the United States.
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