Gulfport Energy buys back shares under repurchase program

Gulfport Energy (OTC:GPORQ) Corporation (NYSE:GPOR) has entered into an agreement to buy back 170,000 shares of its common stock for approximately $24.9 million, as part of its ongoing $650 million share repurchase initiative. The transaction, which was agreed upon on Thursday, is set to close on the upcoming Tuesday.

The Oklahoma City-based oil and natural gas company will purchase the shares at $146.25 each, a slight discount of about 2% from the stock's last closing price on the New York Stock Exchange on the day of the agreement. This buyback is a continuation of Gulfport's strategy to enhance shareholder value through its repurchase program.

Since the commencement of the repurchase program, Gulfport has acquired around 4.9 million shares at an average price of $97.40 per share, spending a total of approximately $476.1 million. After this latest transaction, the company will have around $149.0 million left for future buybacks under the current program.

In other recent news, Gulfport Energy has been actively involved in significant financial maneuvers. The energy firm is seeking a transformational acquisition that could potentially triple its current production levels.

Gulfport Energy has also issued $650 million in 6.7% Senior Notes due in 2029 and expanded its credit facility from $900 million to $1.0 billion. These moves are aimed at strengthening its capital structure and boosting liquidity.

The company also reported a strong $164 million in adjusted EBITDA and a considerable $20 million in adjusted free cash flow during its Second Quarter 2024 Earnings Call. Gulfport Energy has also initiated a cash tender offer to purchase all outstanding 8.0% Senior Notes due in 2026.

CapitalOne has reaffirmed its Overweight rating for Gulfport Energy, while KeyBanc upgraded the company's share price target to $165 due to strong free cash flow generation and potential for organic earnings growth. Both firms have also increased their 2025 EBITDA estimates for the company.

InvestingPro Insights

In light of Gulfport Energy Corporation's (NYSE:GPOR) recent share repurchase announcement, current metrics from InvestingPro provide a broader context for investors considering the company's financial health and market performance. With a market capitalization of approximately $2.74 billion and a notably low price-to-earnings (P/E) ratio of 3.69, Gulfport presents an interesting case for value-oriented investors. The company's P/E ratio has remained relatively stable over the past months, sitting just slightly lower at 3.59 for the last twelve months as of Q2 2024.

Despite analysts predicting a sales decline in the current year, Gulfport has demonstrated a strong return over the last five years, which aligns with the company's ongoing share repurchase initiative aimed at enhancing shareholder value. Additionally, the company has managed to maintain a high gross profit margin of 56.26% over the last twelve months as of Q2 2024, which speaks to its operational efficiency despite revenue growth challenges.

For investors considering long-term potential, it's worth noting that Gulfport has been profitable over the last twelve months and analysts predict it will remain profitable this year. However, potential investors should be mindful of the company's short-term liquidity, as current obligations exceed liquid assets. For those interested in further insights, there are 8 additional InvestingPro Tips available at: https://www.investing.com/pro/GPOR, which provide a deeper dive into Gulfport's financials and market outlook.

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