Gulfport Energy Stock Is a Strong Buy Fueled by Natural Gas Momentum

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$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$325-$335 million [10]. - The company is focusing on liquids-weighted assets, with over 60$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].