$GPOR

Energy Stocks Poised for Gains as Oil, Gas Outlook Improves, UBS Says

UBS maintained its bullish outlook for oil and natural gas, saying it expects 2027 prices to top what the current futures price would suggest even as volatility prompted it to stress-test energy stocks under multiple price scenarios, the bank said in a note on Tuesday.The analysis looked at oil prices ranging from $55-$65 per barrel for Brent crude and corresponding WTI prices of about $51-$61/bbl, along with natural gas prices between $2.75 and $4.25 per million British thermal units.UBS assumed companies would keep spending and production levels unchanged across all scenarios.UBS said current share prices for US oil and gas producers imply investors are expecting WTI crude prices in the low $60s/bbl and natural gas prices of about $3.50/MMBtu in 2027.In a scenario where Brent crude averages $75/bbl and natural gas averages $3.75/MMBtu, UBS believes the sector appears undervalued. Based on historical valuation levels, the bank estimates energy stocks could have over 20% upside.The bank also said energy company valuations are highly sensitive to changes in commodity prices. A $10/bbl move in oil prices and a $0.50 change in natural gas prices would have a significant impact on companies' cash flow and valuations.UBS added that if oil prices fall below $60/bbl and natural gas prices below $3/MMBtu many producers would likely reduce drilling activity and production.Despite higher oil prices since the recent conflict began, energy stocks have lagged the broader market. The S&P 500 Energy Index has gained 8% but has underperformed the broader S&P 500 by about 3 percentage points.Front-month WTI crude prices have risen 22%, while contracts for 2027 delivery are up 15%. Longer-dated natural gas prices, however, have fallen 10%.Among the companies UBS follows, SM Energy (SM) and Chord Energy (CHRD) have posted the strongest gains since the conflict began, while Liberty Energy (LBRT), Comstock Resources (CRK) and Gulfport Energy (GPOR) have been the weakest performers.Smaller and mid-sized oil producers have generally outperformed their larger peers, UBS said.UBS maintained its preferred exploration and production stocks as Ovintiv (OVV), Devon Energy (DVN) and Antero Resources (AR), while naming National Energy Services Reunited (NESR) as its top pick among oilfield services companies.Price: $29.40, Change: $-0.90, Percent Change: -2.97%

Energy Stocks Remain Undervalued Despite Long-Term Oil, Gas Outlook, UBS Says

UBS maintained a positive long-term outlook for crude oil and natural gas, saying energy stocks remain undervalued despite improving commodity fundamentals, the firm said in a note on Monday.UBS continues to expect stronger 2027 crude oil and natural gas prices than implied by current forward strips of $71 per barrel for West Texas Intermediate and $3.35 per million British thermal units for Henry Hub.The firm assessed producers across scenarios ranging from $55-$65/bbl Brent, $51-$81/bbl WTI and $2.75-$4.25/MMBtu Henry Hub.Using an 8% free cash flow-to-enterprise value yield and a 5.5x enterprise value-to-EBITDA sector midpoint, UBS estimates exploration and production stocks currently reflect $60 WTI and $3.50 Henry Hub for 2027.Under a $75 Brent and $3.75 Henry Hub scenario, oil producers would generate an average 12.2% free cash flow-to-enterprise value yields and trade at 3.9x enterprise value-to-EBITDA.Gas producers, excluding Comstock Resources (CRK), would generate an average 11.5% free cash flow-to-enterprise value yield and trade at 4.6x enterprise value-to-EBITDA, UBS said.The same commodity deck would leave year-end 2027 net debt-to-EBITDA at about 0.2x to 0.3x if companies maintain current capital return programs.UBS said those valuations remain below the historical 4.5x to 6.5x range, implying more than 20% upside to the 5.5x midpoint.A $10/bbl move in crude oil and a $0.50/MMBtu change in Henry Hub prices would shift average free cash flow-to-enterprise value yields by 450 to 480 basis points.Enterprise value-to-EBITDA multiples could move 0.5x to 0.7x or more, particularly for gas producers, UBS said.UBS kept capital spending and production assumptions unchanged, although WTI prices below $60/bbl and Henry Hub prices below $3/MMBtu would likely prompt exploration and production companies to reduce both investment and output.Since the conflict began, the S&P 500 Energy Index has gained 1.3% but has trailed the broader S&P 500 by 8%. During the same period, front-month WTI has risen 16%, the 2027 WTI forward strip has gained 15%, while the 2027 Henry Hub strip has fallen 10.3%, UBS said.UBS said energy-sector valuations have weakened since the conflict began despite stronger long-term oil prices, with APA (APA) and Chord Energy (CHRD) leading gains, while Comstock Resources, Weatherford International (WFRD) and Gulfport Energy (GPOR) have posted the weakest performance.UBS continues to favor Ovintiv (OVV), Devon Energy (DVN) and Antero Resources (AR) among exploration and production companies, while National Energy Services Reunited remains its top oilfield services pick.Price: $12.87, Change: $-0.37, Percent Change: -2.79%

Sector Update: Energy Stocks Decline Late Afternoon

Energy stocks were lower late Tuesday afternoon, with the NYSE Energy Sector Index easing 0.4% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 0.6%.The Philadelphia Oil Service Sector Index rose 0.5%, and the Dow Jones US Utilities Index retreated 1.2%.Front-month West Texas Intermediate crude oil fell 0.9% to $70.13 a barrel, and the global benchmark Brent crude contract eased 0.3% to $72.92 a barrel. Henry Hub natural gas futures rose 2.5% to $3.26 per 1 million BTU.In sector news, US envoy for the Middle East Steve Witkoff and President Donald Trump's son-in-law Jared Kushner are in Doha to meet Qatari mediators, CNN reported Tuesday, citing Qatar's Foreign Ministry spokesperson. The US duo will not meet with Iranian officials, the news report added.Separately, the US Federal Communications Commission is drafting a rule that would ban imports of foreign inverters, which connect solar projects and batteries to the grid, due to concerns China could disrupt power supplies with them, Reuters reported.In corporate news, Sable Offshore (SOC) shares tumbled 57%. Bloomberg reported that JPMorgan Chase (JPM), which is running a stock and note offering from Sable, has seen limited investor demand for a loan paying 15%.Air Products and Chemicals (APD) shares jumped 8% after it said Tuesday it will not proceed with the Louisiana Clean Energy Project due to expected financial returns that do not meet stringent return criteria.Shell (SHEL) is close to a deal to sell over 600 retail fuel outlets in South Africa to Abu Dhabi National Oil's retail arm for a deal valued at around $1 billion, Bloomberg reported. Shell shares rose 0.8%.Gulfport Energy (GPOR) has acquired roughly 4,700 net undeveloped acres in Ohio's Utica region for about $83 million, expanding its gas inventory in the area, the company said Monday. Its shares were up 2.5%.

Sector Update: Energy Stocks Softer Tuesday Afternoon

Energy stocks were lower Tuesday afternoon, with the NYSE Energy Sector Index easing 0.1% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 0.3%.The Philadelphia Oil Service Sector Index rose 0.4%, and the Dow Jones US Utilities Index was down 0.4%.Front-month West Texas Intermediate crude oil fell 1.4% to $69.76 a barrel, and the global benchmark Brent crude contract eased 0.2% to $72.99 a barrel. Henry Hub natural gas futures rose 3.9% to $3.30 per 1 million BTU.In sector news, US envoy for the Middle East Steve Witkoff and President Donald Trump's son-in-law Jared Kushner are in Doha to meet Qatari mediators, CNN reported Tuesday, citing Qatar's Foreign Ministry spokesperson. The US duo will not meet with Iranian officials, the news report added.Separately, the US Federal Communications Commission is drafting a rule that would ban imports of foreign inverters, which connect solar projects and batteries to the grid, due to concerns China could disrupt power supplies with them, Reuters reported.In corporate news, Shell (SHEL) is close to a deal to sell over 600 retail fuel outlets in South Africa to Abu Dhabi National Oil's retail arm for a deal valued at around $1 billion, Bloomberg reported. Shell shares rose 0.8%.Air Products and Chemicals (APD) shares jumped past 8% after it said Tuesday it will not proceed with the Louisiana Clean Energy Project due to expected financial returns that do not meet stringent return criteria.Gulfport Energy (GPOR) has acquired roughly 4,700 net undeveloped acres in Ohio's Utica region for about $83 million, expanding its gas inventory in the area, the company said Monday. Its shares were up 2.3%.

Gulfport Secures Core Utica Expansion with Ohio State Lease Win

Gulfport Energy (GPOR) has made a successful bid on about 4,700 net undeveloped acres in the core of the Ohio Utica play, it said on Monday.Transacted through the competitive Ohio Oil and Gas Land Management Commission State Land Lease Sale, the total purchase price reached $83 million, the company said.The acquisition consists of a large, contiguous block of acreage in Belmont County, directly adjacent to Gulfport's active operational infrastructure and recently acquired discretionary parcels.Development drilling on the newly acquired Belmont County acreage is projected to commence in 2027, with anticipated economic returns sitting at the top end of Gulfport's portfolio, the company's statement said.Situated within the fairway of the highly productive, liquids-rich Utica wet gas window, the new acreage allows the company to minimize capital expenditure friction by leveraging its existing midstream capacity, it said.Gulfport estimated the transaction adds roughly 16 net drilling locations when normalized to 15,000-foot laterals.

Gulfport Energy Expands Ohio Utica Acreage With $83 Million Acquisition

Gulfport Energy Corp (GPOR) has acquired roughly 4,700 net undeveloped acres in Ohio's Utica region for about $83 million, expanding its gas inventory in the area, the company said Monday.The acquisition, completed through the Ohio Oil and Gas Land Management Commission State Land Lease Sale, adds 16 drilling locations in its portfolio, with development expected to begin in 2027.

Mizuho Securities Upgrades Gulfport Energy to Outperform From Neutral, $251 Price Target

Gulfport Energy (GPOR) has an average rating of overweight and mean price target of $243.39, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

Earnings Flash (GPOR) Gulfport Energy Posts Q1 EPS $8.87, vs. FactSet Est of $7.52

Earnings Flash (GPOR) Gulfport Energy Posts Q1 Revenue $437.5 Million

Gulfport Energy Q1 Production Climbs, Sets 2026 Growth and Drilling Plans

Gulfport Energy Corp (GPOR) reported Q1 earnings Tuesday, showing total production of 996.8 million cubic feet equivalent per day, up from 929.3 MMcfe/d a year earlier.The company produced 905,770 Mcf/d of natural gas for the quarter ended Mar. 31, compared with 837,816 Mcf/d a year earlier, reflecting higher gas output across its core operating areas.Oil and condensate production declined to 3,738 barrels per day in Q1 from 5,282 b/d a year earlier, while natural gas liquids production rose to 11,432 b/d from 9,962 b/d, the company said.Gulfport generated about 833 MMcfe/d from its Utica and Marcellus assets in Q1, while SCOOP production was 164 MMcfe/d, the company added.The company expects full-year production to range from 1.030 to 1.055 Bcfe/d, it said.Gulfport plans to deploy $400 million to $430 million in total capital during 2026, up from about $390 million in 2025, as it increases drilling and completion activity across core operating areas, the company said.The company will drill 18 gross wells and bring 20 wells to sales in the Utica, drill six gross wells and place four wells into production in the Marcellus, and target two gross wells in the SCOOP play during 2026, it said.Gulfport expanded its inventory to more than 700 gross operated locations, up from about 560 locations in 2024, supporting roughly 15 years of drilling inventory, the company added.Gulfport improved drilling efficiency across its operations, increasing drilling footage per day in the Marcellus by 50% and achieving SCOOP drilling cycle times that were 25% better than internal expectations, the company said.

UBS Adjusts Price Target on Gulfport Energy to $245 From $260, Maintains Buy Rating

Gulfport Energy Corp (GPOR) has an average rating of overweight and mean price target of $244.46, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)