Gulfport Energy Remains A 'Best Idea' For Wunderlich

In a report published Friday, Wunderlich Securities analyst Jason Wangler reaffirmed Gulfport Energy Corporation GPOR as a "Best Idea" as a strong 2014 "sets up big things for 2015."

Wangler wrote that Gulfport Energy's fourth-quarter results were "impressive" but even more so were the company's guidance that calls for another 80 percent to 100 percent growth in production on significantly lower spending as the Utica and Gulfport assets "begins to flex its muscle."

Wangler stated that the company's production "continues to move briskly higher" as it generated over 50 percent sequential production growth and averaged 381.9 mmcfe/day in the fourth quarter, nearly 300 percent higher compared to the fourth quarter 2013 as its Utica operations "begun hitting on all cylinders."

The analyst also added that activity should remain "solid" despite the commodity downturn even as production downshifted from eight rigs to three.

"Even current [commodity] prices can drive strong economics and allow the company to continue moving forward with development of the Utica," Wangler wrote. "While the company has slowed spending essentially every where else, we think this makes sense given the strong Utica potential."

Bottom line, the company's solid fourth quarter performance, improvements in execution and 2015 guidance gives the analyst confidence the company is in "as good of a position as ever" to drive solid growth.

Shares remain Buy rated with a price target raised to $60 from a previous $50.