Gulfport Energy started Buy at Jefferies on 'misunderstood' inventory position

[Pumping unit in Permian Basin oilfiled near Midland, Texas]
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Gulfport Energy (NYSE:GPOR [https://seekingalpha.com/symbol/GPOR]) +3.1% in Thursday's trading as Jefferies initiated coverage with a Buy rating and $250 price target, believing the company's "inventory position is misunderstood and cost execution under-appreciated."

Jefferies analyst John Edelman said Gulfport (NYSE:GPOR [https://seekingalpha.com/symbol/GPOR]) trades at a discount to peers on EV/EBITDA given a lack of a comparable inventory runway, and he expects the company will revalue through successful organic leasing efforts, with significant upside to average natural gas peer valuation.

While the dry gas inventory may be short of peers, Gulfport's (GPOR [https://seekingalpha.com/symbol/GPOR]) liquids leasing program is closing any remaining duration gap, according to Edelman, and free cash flow conversion is positive, with its liquids cost structure competitive with industry leaders; once the market better understands the improving duration and cost structure, the company's discount to peers should tighten, the analyst said.

Gulfport's (GPOR [https://seekingalpha.com/symbol/GPOR]) shareholder return commitment is among the best in the industry, Edelman said, as the company has distributed ~100% of free cash flow since 2022 and could be accelerated through Silver Point share sales; the company historically has repurchased ~25% of any Silver Point sales, but given its free cash position, this likely will rise going forward.

MORE ON GULFPORT ENERGY

* Gulfport Energy: Preferred Share Redemption Removes 2.2 Million Potential Common Shares [https://seekingalpha.com/article/4811749-gulfport-energy-preferred-share-redemption-removes-2-2-million-potential-common-shares]
* Gulfport Energy Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4809781-gulfport-energy-corporation-gpor-q2-2025-earnings-call-transcript]
* Gulfport Energy Q2 2025 Earnings Call Presentation [https://seekingalpha.com/article/4809571-gulfport-energy-corporation-2025-q2-results-earnings-call-presentation]