Utica Shale Success Places Gulfport Energy on Top in List of Fastest Growing E&P Companies

By -
From Seeking Alpha:
The following five companies are among the fastest growing public oil and gas companies in the US. They are active in some of the "hottest", fastest growing shale oil plays in the US. They are primarily focused on growing oil production, mostly through unconventional development. And due to their rapid growth, they are likely to be featured more prominently going forward.
1) Gulfport Energy (GPOR)
One of the fastest growing oil and gas companies, small or large, is Gulfport. Gulfport is focused on the development of the Utica / Point Pleasant shale play in eastern Ohio. It has already grown rapidly and is projected by analysts to grow its EBITDA a phenomenal 153% (from 2013 to 2014)! Utica wells in the sweet spot, which Gulfport has exposure to, may generate 100%+ IRRs, which will help Gulfport finance its continued growth in 2014 and beyond.
One challenge I have had investing in Gulfport is the large premium Gulfport trades at to its proved reserve value. Gulfport trades at over 10x its most recently reported after-tax PV-10. This is likely because of the rapid growth it is experiencing, and reserves may be likely to increase rapidly along with production growth. But as a value investor, this does make investing in Gulfport a challenge. Another challenge is the high EV/EBITDA multiple Gulfport trades at. At ~8x EV/EBTIDA for consensus 2014 estimates, Gulfport trades above its comparable peers. But this is less difficult to reconcile than the reserve multiple, as the production growth could justify this higher than average multiple.
Read about the other four companies on the list by clicking here. 

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

By -
Image
From Energy in Depth: There is something very strange going on along Carter Road, in Dimock, Pennsylvania, and I’m not speaking of natural gas, methane migration, contamination, litigation or even the extensive water testing there by the EPA and others.  No, I’m talking about a new “Watergate” conspiracy, complete with 18 minutes of missing tape (well, video, actually). It seems the ever-present Green Party member and  naturist   Vera Scroggins  (a/k/a  Vera Duerga ) has posted a video of Craig Sautner meeting with the EPA.  Mysteriously, the video is but 14 seconds in length, cutting off conversation in what is obviously mid-stream.  It raises a question Craig Sautner, like  Ronald Reagan in Kings Row , might have asked, “Where’s the rest of me?’  Carter Road, isn’t Kings Row, of course, (at least not until you arrive at  the mansion Scott Ely, one of the Dimock litigants, is building with his royalty money ), but there appears to be...
Read more

The Second Largest Oil and Gas Merger - Cabot and Cimarex

By -
Image
       Due to investor pressure, the U.S shale drillers are being pushed to improve financial and operational performance after a few years of poor returns. Even though the industry has improved its numbers, when compared to last year, investors still want more to be done for them to earn more money.      That's why two mid-tier shale drillers, Cabot and Climarex, have decided to merge in order to eliminate $100 million in annual costs, which means more money for the investors. This all-stock transaction is valued at about $7.4 billion, which is relatively high for the oil and gas sector.      The new entity will be renamed and the headquarters located in Houston, Texas. Cabot shareholders will own 49.5 percent of the new entity, and Climarex the rest.       The Cimarex-Cabot merger will address the investor's demand for a higher amount of returning cash. The initial plan is to pay a 50-cent-per-share special dividen...
Read more

Do You Know The History of Fracking?

By -
Image
  In 2018, 59% of total oil production in the U.S came from hydraulic fracking, which means it accounted for more than two-thirds of domestically manufactured gas. By 2024, fracking will reach an astounding $68 billion market value! Of course, fracking is not a new drilling method as you can trace it back hundreds of years. That's why we want to consider the history of hydraulic fracturing (fracking). We will be stating historical facts about it and focusing on the major historical occurrences that have influenced modern-day fracking. Pre-Fracking Days The idea of fracking started back in 1862 when Edward A.L. Roberts (Civil War veteran) witnessed Confederate soldiers exploding artillery rounds into a canal that obstructed a battlefield. At the time, Edward A.L. Roberts called it superincumbent fluid tamping. On April 26th, 1865, Edward A.L. Roberts began experimenting with exploding torpedoes, which consisted of lowering a torpedo containing an amount of powder from fifteen to tw...
Read more