Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Gulfport Energy (GPOR) - Gulfport Energy currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - GPOR shares have increased by 4.01% over the past week, outperforming the Zacks Oil and Gas - Exploration and Production - United States industry, which rose by 2.43% [5] - Over the past month, GPOR's price change is 14.94%, compared to the industry's 10.86% [5] - In the last quarter, GPOR shares have risen by 37.05%, and over the past year, they have gained 51.03%, while the S&P 500 has only increased by 4.32% and 27.01%, respectively [6] Trading Volume - The average 20-day trading volume for GPOR is 287,671 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, two earnings estimates for GPOR have been revised upwards, with the consensus estimate increasing from $14.38 to $14.43 [9] - For the next fiscal year, four estimates have moved higher, with no downward revisions during the same period [9] Conclusion - Given the positive performance metrics and earnings outlook, GPOR is positioned as a strong buy with a Momentum Score of B, making it a compelling investment option [11]

Economic Environment - The favorable December inflation reading has alleviated concerns regarding the Federal Reserve's ability to justify rate cuts in 2025, contributing to positive market sentiment [1] - Uncertainty remains with Donald Trump resuming the presidency, as key policies such as higher trade tariffs and tighter immigration controls are anticipated to impact markets [2] Investment Strategy - Value investing is highlighted as a strategy to profit from stocks trading at a discount to their intrinsic values, with a focus on earnings yield as a key metric [3][5] - Earnings yield is calculated as annual earnings per share (EPS) divided by market price, providing insight into the anticipated return from earnings for each dollar invested [5][6] - A stock's earnings yield should be compared to the 10-year Treasury yield to assess its relative value; a higher yield indicates undervaluation [7] Stock Selection Criteria - An earnings yield greater than 10% is set as a primary screening criterion, supplemented by estimated EPS growth greater than or equal to the S&P 500 and an average daily volume of at least 100,000 [8][9] - Stocks must have a current price of at least $5 and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) to be considered for investment [10] Recommended Stocks - **Harmony Biosciences (HRMY)**: Expected year-over-year growth of 18% in sales and 33% in earnings for 2025, with a Zacks Rank 1 and Value Score of A [12] - **Ingevity Corporation (NGVT)**: Anticipated growth of 2% in sales and 62% in earnings for 2025, holding a Zacks Rank 1 and Value Score of B [13] - **Gulfport Energy (GPOR)**: Projected year-over-year growth of 22% in sales and 55% in earnings for 2025, also with a Zacks Rank 1 and Value Score of B [14] - **Pitney Bowes (PBI)**: Expected earnings growth of 184% for 2025, with a Zacks Rank 1 and Value Score of A [15]

Earnings Outlook and Stock Performance - Gulfport Energy (GPOR) shows a noticeable improvement in its earnings outlook, making it an attractive investment option [1] - The stock has been a strong performer recently, and the momentum is expected to continue as analysts raise their earnings estimates [1] - The stock has risen 9.4% over the past four weeks due to strong estimate revisions and increased investor interest [7] Analyst Sentiment and Estimate Revisions - Analysts are increasingly optimistic about Gulfport's earnings prospects, leading to rising trend in estimate revisions [2] - Two estimates have moved higher for the current quarter over the last 30 days, with no negative revisions, resulting in a 6.25% increase in the Zacks Consensus Estimate [4] - For the full year, one estimate has moved higher over the past month, with no negative revisions, boosting the consensus estimate by 6.73% [5] Earnings Estimates and Growth - Gulfport is expected to earn $4.07 per share for the current quarter, representing a year-over-year increase of 31.29% [4] - For the full year, the company is expected to earn $14.43 per share, reflecting a year-over-year growth of 108.53% [5] Zacks Rank and Investment Potential - Gulfport has earned a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions [6] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, with Zacks 1 Ranked stocks generating an average annual return of +25% since 2008 [3][6] - The Zacks Rank system is a proven tool for identifying stocks with strong earnings estimate revisions and investment potential [6]

Core Viewpoint - Natural gas prices have surged approximately 70% since mid-October, benefiting companies like Gulfport Energy, which has seen a 30% stock increase over the past three months, outperforming peers [1][5]. Company Overview - Gulfport Energy is a natural gas-focused exploration and production company based in Oklahoma City, primarily operating in the Utica Shale in Ohio and the SCOOP play in Oklahoma. The company has emerged from bankruptcy with a stronger balance sheet and a strategy focused on free cash flow [4]. Financial Performance - Gulfport Energy is projected to deliver significant earnings growth, with Zacks Consensus Estimates indicating year-over-year EPS growth of 108.5% for 2024 and 51% for 2025. The stock is currently trading at a forward price/earnings ratio of 8.49, below the industry average [6][7]. - The company reported $73 million in adjusted free cash flow during Q3 2024, exceeding expectations, and has expanded its stock repurchase authorization by 54% to $1 billion, repurchasing 5.2 million shares [9][8]. Operational Efficiency - Gulfport has achieved over $25 million in capital savings in 2024 due to cost management and operational efficiencies, allowing a reduction in capital expenditure guidance by approximately 4% to a range of $325-$335 million [10]. - The company is focusing on liquids-weighted assets, with over 60% of 2025 turn-in-line wells expected to produce liquids, enhancing profitability [11]. Strategic Positioning - Gulfport holds 4.2 trillion cubic feet equivalent of proved reserves in resource-rich regions, supporting long-term production stability and enabling the company to capitalize on favorable market conditions [12]. - The company has hedged 65% of its 2024 production at $3.63/MMBtu, providing short-term stability against price volatility [13]. Investment Outlook - Gulfport Energy is identified as a strong investment opportunity in the natural gas sector, with robust free cash flow, disciplined cost management, and a favorable growth outlook. The stock's current undervaluation and promising EPS growth reinforce its status as a strong buy [14].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Gulfport Energy (GPOR) - Gulfport Energy currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - GPOR shares have increased by 8.4% over the past week, outperforming the Zacks Oil and Gas - Exploration and Production - United States industry, which rose by 6.02% [5] - Over the last quarter, GPOR shares have risen by 25.21%, and over the past year, they have increased by 46.86%, while the S&P 500 has only moved 4.3% and 28.89% respectively [6] - The average 20-day trading volume for GPOR is 232,509 shares, indicating a bullish sign with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for GPOR has increased, while none have decreased, raising the consensus estimate from $14.38 to $14.40 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [9] Conclusion - Given the positive performance metrics and earnings outlook, GPOR is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Following Wednesday’s FOMC meeting and press conference from Jerome Powell, it seems 2025 may be shaping up to be a bit more uncertain than investors were expecting. Powell expressed his concern about rising inflation and signaled the central bank was going to be more hawkish moving forward. Fortunately, investors need not try to predict what is going to happen next year, and would be better served by picking a diverse portfolio of stocks that will benefit from various future outcomes.While 2024 brought str ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of approximately $178 million for Q3 2024, exceeding analyst expectations, driven by strong liquids production and operating cost performance [30] - Adjusted free cash flow for the same period was approximately $73 million, also better than expected [30] - Net cash provided by operating activities before changes in working capital totaled approximately $160 million, more than sufficient to fund capital expenditures and common share repurchases [29] - The company lowered its full year 2024 capital guidance by approximately 4% at the midpoint, now forecasting D&C capital to be in the range of $325 million to $335 million [12] Business Line Data and Key Metrics Changes - High-margin condensate production increased by 68% quarter-over-quarter [7] - Production for Q3 averaged 1.06 billion cubic feet equivalent per day, consistent with the first half of 2024, but included a significant increase in high-margin oil volumes [31] - The company expects over 60% of total turn-in lines in 2025 to be liquids-rich, up from approximately 37% in 2024 [22] Market Data and Key Metrics Changes - The all-in realized price for Q3 was $3.09 per Mcfe, which is 43% above the NYMEX Henry Hub Index price [32] - The company realized a cash hedging gain of approximately $85 million for the quarter, demonstrating the value of its hedge book [32] - Approximately 15% of natural gas has firm delivery to the Gulf Coast at attractive premiums [35] Company Strategy and Development Direction - The company is focusing on enhancing shareholder value through share repurchases, with a 54% increase in the common stock repurchase authorization to $1 billion [7][40] - There is a strategic shift towards high-margin liquids development, with plans to allocate the majority of capital savings to shareholder returns [11][27] - The company aims to maintain flexibility in its asset base, allowing for shifts between liquids and gas depending on market conditions [50][81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gas price outlook for 2025 and 2026, indicating a constructive view on future commodity prices [33] - The company is committed to emission intensity reductions and has achieved an A grade under the MIQ methane emission standard for its natural gas production [9] - Management highlighted the importance of operational efficiencies and cost reductions, attributing two-thirds of capital savings to efficiency gains [46] Other Important Information - The company completed drilling on five gross wells in Ohio during Q3 and concluded its 2024 turn-in-line program in the Utica [13] - The company has extended the maturity of its long-term senior notes by about 3.2 years and lowered the weighted average interest rate on its long-term senior notes by approximately 1.2% [36] Q&A Session Summary Question: Could you walk us through where the savings came from? - Management attributed two-thirds of the capital savings to efficiency gains and one-third to service cost reductions, with no material shifts in planned activity [45][46] Question: How do you think about your inventory ranking? - Management stated that they have several liquids window options and are focusing on high-quality inventory with returns generally within 15% to 20% [47][49] Question: Is the 60% liquids weight on TILs in 2025 the new normal? - Management indicated that the shift towards liquids will be a continuous presence in the company's portfolio, driven by high-quality acreage and commodity price outlook [54][55] Question: Can you characterize the pressure management program? - Management explained that the program is applied across the portfolio and varies with commodity prices, providing benefits such as increased plateau periods and reduced potential damage [57][60] Question: Can you discuss the decision process behind the capital budget adjustments? - Management described a hybrid approach, balancing shareholder returns with some redeployment into drilling activity [63] Question: What is the trajectory of oil production from here? - Management expects a significant increase in liquids production moving into next year, with a shift from a high percentage of gas to a more balanced mix [65] Question: How do you see discretionary acreage opportunities developing in 2025? - Management plans to remain opportunistic in acquiring high-quality acreage, having added significant inventory in recent years [74][76] Question: What is driving the widening of oil differentials? - Management clarified that the widening is a mathematical function due to back-weighted production and not an operational change [78] Question: How flexible is the company regarding the liquids mix? - Management confirmed the ability to pivot between liquids and gas based on commodity price changes, with a focus on maximizing returns [81]

Gulfport Energy (GPOR) came out with quarterly earnings of $2.91 per share, beating the Zacks Consensus Estimate of $2.88 per share. This compares to earnings of $1.85 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.04%. A quarter ago, it was expected that this natural gas producer would post earnings of $4.32 per share when it actually produced earnings of $3.31, delivering a surprise of -23.38%. Over the last four quarter ...

6381380/iStock Editorial via Getty Images Gulfport Energy (NYSE:GPOR) is a US natural gas producer with production in Oklahoma's Anadarko and Ohio's developing Utica play. It is a comeback company, having gone into bankruptcy in November 2020 and recovered through investment by companies like Silver Point Capital LP (at 29% of equity on March 31, 2024) and a careful gas hedging program. Gulfport does have a share repurchase program. Its stock is up 16% since my last review and has 32% upside to its one-year ...

Financial Performance - Total revenues for Q1 2024 were $283.229 million, a decrease of 61.3% compared to $731.221 million in Q1 2023[36] - Natural gas sales in Q1 2024 were $188.286 million, down 33.4% from $282.534 million in Q1 2023[36] - Net income attributable to common stockholders for Q1 2024 was $43.398 million, a decline of 90.0% from $435.526 million in Q1 2023[36] - Basic net income per common share for Q1 2024 was $2.39, compared to $23.08 in Q1 2023[36] - Net income for the three months ended March 31, 2024, was $52,035, compared to $523,054 for the same period in 2023, reflecting a significant decrease[41] - Net cash provided by operating activities decreased to $188,022 from $304,055 year-over-year, a decline of approximately 38.3%[41] - Operating expenses for Q1 2024 totaled $201.463 million, a slight decrease from $208.634 million in Q1 2023[36] - Total sales for natural gas, oil, and NGL decreased by 33% to $238.1 million for the three months ended March 31, 2024, compared to $353.2 million in 2023[155] - The average price of natural gas, including settled derivatives, was $3.16 per Mcfe for the three months ended March 31, 2024, down from $3.71 per Mcfe in 2023[155] Assets and Liabilities - Total current assets decreased to $353.510 million as of March 31, 2024, from $396.806 million at December 31, 2023[34] - Total property and equipment, net, increased to $2.306 billion as of March 31, 2024, from $2.252 billion at December 31, 2023[34] - Total liabilities decreased to $1.023 billion as of March 31, 2024, from $1.062 billion at December 31, 2023[34] - Stockholders' equity increased to $2.187 billion as of March 31, 2024, compared to $2.162 billion at December 31, 2023[34] - The company’s long-term debt decreased to $636,442 as of March 31, 2024, down from $667,382 at the end of 2023, a reduction of approximately 4.9%[60] - The company’s accounts payable and accrued liabilities totaled $290,144 as of March 31, 2024, down from $309,532 at the end of 2023, a decline of about 6.3%[51] Cash Flow and Capital Expenditures - Cash and cash equivalents at the end of the period increased to $8,209 from $3,460 year-over-year, marking a rise of approximately 137.5%[41] - Capital expenditures for the three months ended March 31, 2024, totaled $124.4 million, with $106.4 million allocated to drilling and completion activities[183] - The company estimates drilling and completion capital expenditures for 2024 to be between $330 million and $360 million, with an expected production of approximately 1,045 to 1,080 MMcfe per day[184] - The company expects to spend approximately $50 million to $60 million in 2024 for maintenance leasehold and land investment, focusing on near-term drilling programs[184] Debt and Financing - As of March 31, 2024, the Company had $87.0 million in outstanding borrowings under the Credit Facility and $63.8 million in letters of credit outstanding, in compliance with all covenants[66] - The Credit Facility bore interest at a weighted average rate of 8.33% for the three months ended March 31, 2024[67] - The Company issued $550 million aggregate principal amount of 8.0% senior notes due 2026, with interest payable semi-annually[69] - The carrying value of the outstanding debt represented by the 2026 Senior Notes was $549.4 million, with a fair value of $560.0 million as of March 31, 2024[72] - The company had $87.0 million in outstanding borrowings under its Credit Facility at a weighted average interest rate of 8.33% for the three months ended March 31, 2024[201] Stock and Dividends - During the three months ended March 31, 2024, the Company repurchased 210,075 shares for $29.5 million at a weighted average price of $140.39 per share[83] - The Company paid $1.1 million and $1.3 million in cash dividends to holders of preferred stock for the three months ended March 31, 2024 and 2023, respectively[80] - For the three months ended March 31, 2024, net income attributable to common stockholders was $43.398 million, resulting in a basic EPS of $2.39 and diluted EPS of $2.34[93] Production and Operations - The company's total net production averaged approximately 1,053.7 MMcfe per day for the three months ended March 31, 2024, compared to 1,057.4 MMcfe per day for the same period in 2023[149] - Natural gas production volumes increased by 4% to 88,594 MMcf for the three months ended March 31, 2024, from 84,997 MMcf in the same period of 2023[155] - The company spud five gross (4.66 net) operated wells in Q1 2024, with total incurred costs of approximately $94.1 million[186] Tax and Expenses - The effective income tax rate for the company was 22.4% for the three months ended March 31, 2024, compared to 0% for the same period in 2023[137] - Income tax expense for Q1 2024 was recorded at $14.9 million, compared to no income tax expense in Q1 2023[167] - General and administrative expenses increased by 5% from $8,733,000 in Q1 2023 to $9,198,000 in Q1 2024, primarily due to increases in employee headcount and compensation[163] Derivative Instruments - The fair value of the company's derivative instruments as of March 31, 2024, includes a short-term derivative asset of $228,579,000 and a long-term derivative asset of $45,617,000, resulting in a total commodity derivative position of $220,042,000[113] - For the three months ended March 31, 2024, the total gains on natural gas derivatives amounted to $45,136,000, a significant decrease from $378,061,000 in the same period of 2023[114] - The company's derivative assets as of March 31, 2024, were reported at $274,196,000, while derivative liabilities were $54,154,000, resulting in a net amount of $225,980,000 after offsetting[115]