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Gulfport Energy Corporation (G2U0.F)

Frankfurt - Frankfurt Delayed price. Currency in EUR
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71.00-0.50 (-0.70%)
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  • B
    Benjamin
    Everyone that was scammed by this company please contact me we have a group we are putting together for a class action lawsuit we need as many people as possible to get our money back
  • I
    Ivan
    this company just stole my money! I bought GPOR for 53 cents, then they allegedly went bankrupt, and then they began to cost $ 70! do not believe them, take care of your money!
  • N
    Nik
    This company owes its previous share holders. How can a company evaporate previous shares that were worth nothing and come back with high dollar shares. To me, they need to be sued.
  • G
    Guillermo
    UP -GRADED today to $120..........just great ,by Truist Securities...........can"t be better.
    I wrote in a post two months ago a PT of $120 on the way to $180 by end of next year............Wasn"t out the ball park....!!!----------DD as always.., to remember this Oct 7 2021.
  • J
    Jay
    I just put all my money in GPO @ $85 a share because I believe in the commodity supercycle. Is it a good investment?
  • P
    Paul
    Be sure to jump out of this stock when they accumulate more debt and NG prices drop. They love bankruptcy as regular tool to keep their party going.
  • S
    SwingTrader
    Real wolf 🐺 of wall street… robbed all previous share holder money … stay away
  • P
    Paul
    Amazing! can't believe this crooked scam of a company is back! 😳 I bought this for 4 bucks and change and sold for a little over 6. then it nosedived to the pinksheets with a big Q. so many folks said this was going to go to the moon after the chapter 11. sad! just sad!
  • G
    Guillermo
    upgraded today by JP Morgan to $88.................on the way to double by middle of next year--------------------New company with new management.......grab the great opportunity.Buen dia to all.
  • m
    mohd
    criminal management avoid. hope they suffer in life
  • G
    Guillermo
    Forgot who was the analyst that gave GPOR a PT of $79 ., last month......???----Can someone post his name.
    BSM a peer that I hold with SWN ., Raymond James gave a PT of $16 last month and still is trading in the $10 range------------the same is happening here., with such low range.
    Buen dia to all., wish you all the best ., holding this great new company.., with new management ., so guys who were wiped in CH 11., don"t cry for their loss.
  • G
    Guillermo
    Great numbers .....almost $15 of FREE CASH FLOW per share.......Just amazing for the year ending 2021.With a wide margin to catch rising nat gas values., for coming qtrs and next year--------!!!!...............GREAT ., bright future.
  • v
    vic
    they cheated the last investors with fake bruptcy. funny how they had all those assets to start new. scam--dont let them cheat you
  • W
    Wiselama
    On bad news this will see 2 million share of volume and trade to the low teens
  • S
    Shaun
    From a technical perspective this stock is a disaster. It breached the lows of 2009 ($1.58) and 2004 ($1.55). You need to go all the way back to 1999 when the low was $0.88.

    From a fundamental perspective, company is cash flow neutral as long as Nat Gas is over $2.60/mbtu. As of this writing Nat gas is at $1.81/mbtu so its quite a far ways off. In the 3Q earnings call, management stated hedges in "2020 totaling 548 million cubic feet per day at an average swap price of $2.88 per MMBtu" and guided 1.4B cubic feet per day for 2020 production. Which means that its hedged 39% of 2020 production, and the remaining 61% production is subject to the prevailing current prices of Nat Gas. Looking from a historical perspective, Nat Gas has not been this low in 20 years, it hit a low of $2.11/mmbtu in April 2012, and low of $1.78 in Feb, 2016. What's interesting to note is that those prices did recover within 12 months, the high in November 2012 was $3.90/mmbtu and $3.26 December, 2016. So while the drop in prices of Nat Gas recently is quite severe, its been around this level before in the last 8 years and has recovered fairly quickly each time.

    From a Value perspective, the price to book ratio of 0.05 is incredibly low. That means the book value of this company should be $24.40. Also bear in mind that the entire market cap of this company is only $206M and they just had non-core divestitures of 100M just last quarter alone. If you look at the balance sheet it shows $5.7B in plant/property/equipment assets, and even if you took out $2.7B liabilities, they would still have a net equity of $3B available for disposition. But all of this doesn't mean anything if the company goes bankrupt for stockholders, because Seadrill had a book value around the same level too and it was a value trap.

    So the million dollar question is: Is Gulfport going to go bankrupt? If Nat Gas prices stay this low forever (which I think is highly unlikely), then I would say yes. But since the company's cost of production is quite low $0.93/mmbtu it should be able to cover short term current year shortfalls with its $1billion dollar revolving credit facility. And if Nat Gas prices recovers to over $2.60 within 12 months (which I think is very likely), then this company will be cash flow neutral and not be in danger of bankruptcy.

    Disclaimer: This post is for informational purposes only and should not be construed as investment advice. I do not hold any positions in GPOR.
  • P
    Pomp and Circumstances
    Sharing this post from Seeking Alpha comments, because I feel it captures my sentiments 100 percent....

    This seems to be a scam orchestrated by management with the help from the banks.
    Why would the banks cut the facility while the average NG price for 2021 is above $3? They could easily hedge the entire 2021 production above $3 which would translate in no need for the facility and free cash flow.
    Last year they approved the $1b limit while the NG price curve for 2020 was well below the 2021. They have no bond maturity before 2023 and next year in December most probably NG price will touch $4 and would have had the opportunity to refinance a significant part of the bonds.
    Early this year the bonds were trading around 20-25% while now all their bonds are above 60%. Never seen a similar case, where bonds continue to trade above 60 cents on a dollar after the company missed the coupon payment, even if they are now in a 30 days grace period.
    Unfortunately it seems nobody wants to investigate and stop this kind of scams/frauds.
    It's beyond my understanding why a shareholder with 13% like Firefly Value Partners has allowed management to do this. It seems the fiduciary duty of directors has no substance anymore...most probably we will see 10% from new equity reserved for management incentive plan.
  • S
    S. Gary
    Apparently, the recent sharp decline in share price and the "Going Concern" language in the most recent 10Q created tons of worries about the fate of the company among its inventors, me included. Reading message board, there were many different opinions, most of them worthy of reading other than a few that were bent to create panic. After spending a few hours looking into the BK concern, here is my understanding of the current situation of the company based on data reported by the company.

    The key to the issue is the re-determination of revolver borrowing base this Nov since the earliest note maturing time is still about 3 years away. The initial base was $1.5B with generous covenants. But because Covid-19 the most recent amendments has shrunk it to $750M and tightened the covenants significantly. Apparently, the current balance of revolver is only $123M, still way below the new base. Among other things two covenants are of most importance, namely, 1) to maintain a ratio of Net Secured Debt (NSD) to EBITDAX (as defined under the revolving credit agreement) not exceeding 2.00 to 1.00, and 2) to maintain a ratio of Net Funded Debt (NFD) to EBITDAX of 4.00 to 1.00.

    Before Covid-10, covenants like these would be non-issue. With the impact of the pandemic, they begin to matter. Let’s see what’s changed from 2019 to this quarter of the limits by the covenants. At the end of 2019, the revolver balance was $120M. For Covenant 1), we have 2019 EBITDA of $725.7M. With $30.1M Exploration cost, EBITDAX is then $695.6M. Therefrom, the max amount of NSD was 2 X $695.6M = $1.391B, apparently no issue, which is similar to the initial borrowing base. For 1st half of 2020, EBITDA was $224.7M, thanks to unusually low 2nd Q EBIDTA of just $69.7M. The exploration cost for the 1st half was $16.5M. The EBITDAX was then $208.2M. Thus, the pro forma full year EBITDAX would be 2 X $218.2M = $416.4M, assuming the full year EBITDAX doubling that of the 1st half to be conservative. Consequently, the pro forma full year NSD is 2 X $416.4M = $832.8M, though much lower than that of 2019, no problem there still.

    What about Covenant 2)? Here it goes. For 2019, the total NFD was $1.978B and EBITDAX was $695.6M, as calculated above. The max NFD limit was 4 times of it, which was $2.782B. No issue of course. For 1st half of this year, the pro forma full year max NFD limit would be 4 X $416.4M (EBITDAX) = $1.665B, which is less than current NFD of $1.91B, reported at June 30. PROBLEM !

    How big is the problem? If we assume the EBITDAX for the 2nd half of this year is the same as the 1st, the company will be in violation of the Covenant 2), thus, became default. Will this happen? yes it could, if the spot and strip prices of gas remain sub $2.00. Keep in mind that for the 1st quarter of this year the EBITDA was reasonable at $154.8M. As we mentioned above, the 2nd quarter EBITDA was only $69.7M. It was not because of low spot gas price, but the company deliberately reduced production, likely only selling hedged commitment and not to sell asset cheap at spot price. As gas price rebounds they are likely to increase production to make it up and, hopefully, increasing EBITDA for the 2nd half.

    What if the gas price drops again, giving no chance for GPOR to play EBITDA catchup game for the 2nd half? If you pay close attention to a sentence in the most recent 10Q, which says “deferred the requirement to maintain a ratio of Net Funded Debt to EBITDAX of 4.00 to 1.00 until September 30, 2021” we then can breathe a sigh of relief that this covenant would not apply at the end of 2020 because of Covid-19.

    Based the above analysis, the current worry of BK is apparently overblown. Having said that I am still concerned about overall debt level, although not much about imminent BK. If the company could not reduce the debt level at least by half before middle of 2022 it could repeat what CHK went through early this year. But I am still cautiously optimistic given that we still have plenty of time to make things better and pray for the price of gas to recover going forward, which is highly likely for the significantly reduced oil and gas industry future investment, which will curb production in the near future.

    Cheers.
  • S
    S. Gary
    You may not believe it, the current GPOR price is likely a godsend opportunity for those who are looking out 2 or 3 years down the road. Most investors of natural gas are hoping for a quick recovery of gas price, but this wish may actually limit the gains of long term investors in the future. As we all heard "the cure to low price is the low price" as reiterated at Friday's ER by the CEO. In fact, the longer the price stays low the better the chance for greater future returns. The reason is simple, we need to significantly reduce production capacity investment now and going forward for the industry to regain its health after years of over investment. And a short term low price environment won't do it. From this point of view, the warm weather this winter is helping, not hurting for capacity reduction although it's counter intuitive.
    Some people are concerned about this 10K earnings. I saw the opposite. Note the loss is entirely from an impairment of $2B. Is it real bad? it depends. First let's see what really happened in terms of company's financial assets. Since the impairment is related to the valuation of company property so we should start there. The proven preserve was at 4.743 Tmcfe at the end of 2018 and it was 4.528 Tmcfe at 2019 end. The 2019 total sales was 0.501742 Tmcfe. Since GPOR did not buy new properties during 2019, the above numbers indicate that the proven property had in fact increased by 0.287 Tmcfe. Apparently the impairment is not about loss of property but about valuation of the property.
    When you buy a property you need to enter on the balance sheet an estimated price (sum of book and future value). The estimate is based on then current gas price. Now the gas price is lowered one must make adjustment to the carrying asset value, thus impairment. Can they readjust it back when the gas price recovers? No, they cannot since it's illegal. When price recovers the book value will stay the same but the hidden value of the company is a lot higher, which most people don't realize.
    Impairment may look bad from ER point of view, but it has some upsides. One of them is that it helps the company to save tax. Imaging when the gas price recovers and the company start to make profit, it's going to be a long time before they pay any tax for all these losses.
    The real concern is if the company can survive, based on my reading of the conference call, the management has been preparing for the trough. As someone mentioned on this board one effort is to buy back distressed bonds. If BK is eminent why do that. They also reduced work force by 13% and save high value inventory for future sales at higher gas prices. Most importantly, don't forget that they generated free cash flow last year. They may not be able to do so this year depending on the gas price environment. But they still have 50% production hedged at $2.83. They know they don't need to make any profit this year but just survive the down turn.
    Although there is no guarantee that everything will work out fine for this company, I see a pretty good chance that it will come out fine and hopefully help investors to make some serious money in the end. It's hard to imagine that it would succumb to the temporary setback after so much had been invested in their properties. Plus, institutions own almost 100% of the stock. Time will tell. AIMHO.
  • j
    jamie
    This bk was premeditated, Gulfport wrote down the value of their gas reserves by one billion earlier this year when NG traded at 2$. the ceo and cfo did this to increase their leverage on the balance sheet and make it possible to get a bankruptcy filing started. This will be brought forward from the lawyer's representing current equity holders when valuing the current assets.
  • T
    TexasInvestor1
    Ok, for those that don't yet appreciate the game-changing events this weekend:

    A large percentage of North American supply is provided by "associated gas" in the Permian. This is gas generated simply as a by-product of shale oil drilling. A shale oil has grown over the past few years, so has this associated gas. This has helped keep nat gas prices depressed for years.

    With the full-on OPEC/Russia/US Shale price war, crude prices look to fall into the 20s. This will dramatically decrease oil production in the Permian, along with the associated gas. The effect will be higher prices and more reliance on Appalachian producers like GPOR.

    It is it not hyperbole to call what happened this weekend as a historic game-changer.