CapitalOne Reiterates Overweight Rating on Gulfport Energy (GPOR)

CapitalOne analyst Brian Velie reiterated an Overweight rating and $199.00 price target on Gulfport Energy (NYSE: GPOR)

The analyst comments "We spent time with CEO John Reinhart, CFO Michael Hodges, and VP of IR Jessica Antle while visiting with investors in Chicago and Toronto last week. To summarize, Gulfport intends to add meaningful scale inorganically as soon as a synergistic deal that benefits its shareholders emerges. In the meantime, the operational focus will be on maintaining a flattish production profile that prioritizes free cash flow generation and its subsequent return to shareholders via buybacks. Our key takeaways on this broader long-term plan and several other topics of interest are below. • "Relevant scale": Gulfport has no interest in growing through the drill-bit. Neither does it intend to bolt on nickel and dime deals that bump production by 100 MMcfe/d at a time. Instead, management is seeking a single deal that takes pro-forma production from its current ~1 Bcfe/d to something closer to 2x - 3x that level. The company believes that a move of that magnitude is required for its stock price to re-rate. Management made no predictions of when such a deal could materialize, or even what the pro-forma company might look like, but it is confident that such a day will come."

For an analyst ratings summary and ratings history on Gulfport Energy click here. For more ratings news on Gulfport Energy click here.

Shares of Gulfport Energy closed at $147.00 yesterday.

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