Gulfport Energy: Brokerages cut PT, citing cash flow concern; shares down

Mammoth Energy Services

05/08/2019 15:59

** Jefferies, SunTrust Robinson cut PT on oil and gas
producer Gulfport Energy  GPOR.O ; shares down 5.5% at $3.25 
    ** Jefferies cuts PT by $1 to $4, SunTrust by $2 to $6
    ** Jefferies expects management to opt for FCF generation in
2020; estimates a 2% production decline in 2020
    ** Says in the current gas price environment, expects GPOR
may prioritize debt reduction vs larger buybacks
    ** Given management commentary on being disciplined, expect
co to solve free cash flow generation and let production fall in
2020 - Jefferies
    ** SunTrust says that while Gulfport did not repurchase any
additional shares during Q2, brokerage expects stock program
could resume in coming months; forecasts spending to slow in H2
    ** Brokerage expects proceeds from co's sale of its water
business and Mammoth Energy Services  TUSK.O  stake sale to be
used in purchase of liquids SCOOP acreage that could potentially
be drilled soon
    ** 9 of 21 brokerages rate the stock "buy" or higher, 9
"hold" and 3 "sell" or lower; median PT is $8
    ** Stock down ~50% YTD

 (Reporting By Arundhati Sarkar in Bengaluru)
 ((Reuters Messaging: arundhati.sarkar@.thomsonreuters.com))