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Cleveland based Key Bank is now covering Gulfport Energy Corporation and its initial report is bullish for Ohio’s Utica shale play and also for Oklahoma based Gulfport Energy. Gulfport is now the second most active driller (after Chesapeake) in the Ohio portion of the Utica.  The report states: 

“We are initiating coverage of Gulfport Energy Corporation (GPOR-NASDAQ) with a BUY rating and price target of $70 per share. While we are not necessarily early to the Utica story, we see very compelling upside over the next 12 months after a series of infrastructure related growing pains in 2013. We estimate that GPOR will be able to increase production by almost 10x from current levels by the end of 2015, following 318% estimated growth in 2014 and 81% in 2015, more than 4x the closest peer in 2014. What stands out in particular for GPOR is the ability to generate this growth by only outspending cash flow by 34% in 2014 and actually generating free cash in 2015, even after an aggressive leasing budget comprising 25% of annual capex.” 

More coverage is available here.

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