Deutsche Bank Discusses Gulfport Energy's 2015 Expectations

In a note to clients on Monday, Josh Silverstein of Deutsche Bank discusses

and what to look for in the coming year. “2014 was a year of transition at Gulfport Energy that saw new leadership emerge and a strategy shift from run and gun to a more managed pace of development,” Silverstein wrote. “While the change was initially painful, in our view it was prudent and the company has executed on deliverables since.” According to Silverstein, the company is set to enter 2015 with underlying production and wells trends “heading in the right direction.” The analyst adds that he has “increased confidence” in the company's Utica resource and that the company is “one of the better” positioned gas-focused companies. Silverstein expects a year end 2014 exit rate (approximately 60mboepd estimate) and 2015 guidance to be presented by late January. The analyst adds that based on a production standpoint, the company will see a current run rate of turning 14 to 21 wells to sales per quarter continuing into 2015, generating 10+mboepd quarterly growth with a backlog of three to five pads in hand, drill days to decline as well as increased activity in the second half of 2014. Shares are Buy rated with a $60 price target.