Q1 Triumph: Gulfport Energy's Strategy Insight

By Patricia Miller


In this article

  • Loading...
  • Want to see what you should be buying? Check out our top picks.

After a strong Q1 beat, Gulfport Energy (GPOR) reveals its dynamic hedging and Appalachian pad development strategies. With a solid financial foundation and a promising growth outlook, the company reaffirms its commitment to delivering sustainable value and returns to shareholders.

In a recent company update, John K. Reinhart, President, Chief Executive Officer, and Director of Gulfport Energy Corporation (NYSE: GPOR), provided an optimistic outlook on the company's performance in the first quarter of 2023.

Reinhart highlighted that production, adjusted EBITDA, and adjusted free cash flow outperformed analysts' predictions. This success, coupled with deflated capital costs, strong well productivity, and swift operational cycle times, has boosted confidence in the company's 2023 program.

In a Q&A session, following the Q1 results, analysts from Truist Securities and KeyBanc Capital Markets sought insights from Gulfport Energy Corporation executives on their future hedging plans and Appalachian pad development strategies.

Here's a summary of the main points discussed:

Hedging Strategy

Michael L. Hodges, Gulfport Energy’s CFO, discussed the company’s hedging strategy with Neal Dingmann, an analyst at Truist Securities. According to Hodges, Gulfport Energy is just beginning its 2025 program and aims to grow their hedge book to something in the 30% to 50% range over the next few years.

The company is looking to use a blend of different hedging structures, including collars and swaps. This strategy would ensure that they retain some of the upside should gas prices rise above their hedged levels.

Appalachian Pad Development

In response to another query from Dingmann, John K. Reinhart, Gulfport Energy’s CEO, discussed the company's Appalachian pad development strategy. Reinhart explained that Gulfport Energy takes a holistic approach when it comes to development plans and cycle times. The company is considering a blend of four-well, three-well, and two-well pads.

Reinhart also expressed excitement over the potential of stacked Marcellus opportunities and the company’s plans to take advantage of existing pads for future developments. The decision on whether to prioritize Marcellus or Utica development depends on the results of Marcellus' delineation efforts this year.

Future Opportunities and Balance Sheet Flexibility

John Reinhart and Michael Hodges also responded to questions from Tim Rezvan, an analyst at KeyBanc Capital Markets, about Gulfport's leasing opportunities and balance sheet flexibility. Reinhart emphasized that the company's robust balance sheet provides flexibility for future investments.

Hodges added that the strong balance sheet allows for dynamic decision-making in response to market conditions. This flexibility could be particularly advantageous when considering potential accretive acquisitions of leasehold and share repurchases.

Gulfport Energy sees itself well-positioned for future value due to improved gas market fundamentals over the next 18 months, a strong balance sheet, and the ability to generate sustainable free cash flow.

As a result of its strong Q1 performance, Gulfport has been able to continue returning capital to its shareholders through share repurchases.

Hodges ended his shareholder address stating,

"This is an exciting time to be part of Gulfport. This year's program is off to a solid start and our first quarter results highlight the company's ability to outperform expectations."

Unlocking European Opportunities

If you are seeking an alternative investment in the energy sector, a small-cap growth prospect may captivate your interest.

MCF Energy is an under-the-radar junior stock endowed with top-tier support. This company is armed with strategic natural gas assets and serious growth projections in Europe’s volatile energy sector.

With European energy supplies severely disrupted due to the war in Ukraine, MCF Energy has spotted a timely opportunity to capitalize. In doing so, MCF has acquired large-scale top-tier Austrian and German prospects with a clear path to market.

The German acquisition has positioned MCF Energy as a major player in natural gas exploration in the region, owning 100% of four licenses for exploration and development projects. This is particularly noteworthy since Germany is Europe's largest gas importer.

Meanwhile, the company is also evaluating other additional frontiers with huge expansion prospects. MCF Energy's modern technology, led by artificial intelligence expert Deborah Sacrey, plays a vital role in unlocking Europe's underexploited resources. Sacrey's extensive experience in oil and gas exploration, with nine discoveries under her belt using multi-attribute neural analysis, keeps the company at the cutting edge.

If you're in the process of evaluating investment opportunities within the energy sector, then you should carefully consider the potential of MCF Energy. It presents an exceptional opportunity in the European natural gas market, with multiple growth opportunities ahead. 



In this article:




This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by MCF Energy Ltd. to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of two hundred and sixty thousand US dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.


Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.


This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.


Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.

This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.


The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.


This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.


By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.


By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here https://www.valuethemarkets.com/terms-conditions/ and acknowledge that you have reviewed the Disclaimer found here https://www.valuethemarkets.com/disclaimer/. If you do not agree to the Terms of Use, please contact valuethemarkets.com to discontinue receiving future communications.


All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com.


valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above.

Sign up for Investing Intel Newsletter