GPOR - Gulfport Energy: Reviewing Its Potential 2024 Outlook (Rating Upgrade)
2024-01-31 21:14:13 ET
Summary
- Gulfport Energy increased its 2023 production guidance while trimming its capex budget.
- It may be able to grow production in the low single digits with around $450 million in capex per year.
- This could allow it to generate $450 million to $500 million in unhedged free cash flow in 2025 at long-term $3.75 NYMEX gas.
- 2024 natural gas prices are considerably lower, but Gulfport has close to 60% of its natural gas production hedged.
- Thus, despite low natural gas prices, Gulfport is currently projected to generate $283 million in 2024 free cash flow.
Gulfport Energy ( GPOR ) is well hedged on natural gas in 2024 and that should allow it to generate a solid amount of free cash flow this year despite weak natural gas strip prices. At $2.50 to $2.55 NYMEX gas in 2024, I estimate that Gulfport can generate $283 million in free cash flow, of which $255 million would come from its hedges. This would be close to $13 per share (including the impact of all its remaining preferred shares being converted into common shares) in free cash flow....
Gulfport Energy: Reviewing Its Potential 2024 Outlook (Rating Upgrade)