Wunderlich Securities Sees Gulfport Energy's Sale of Blackhawk Midstream Equity Interest as Adding Value

In a report published Monday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating and $85.00 price target on Gulfport Energy (NASDAQ: GPOR).

In the report, Wunderlich Securities noted, “Last week Gulfport Energy (GPOR) announced that Blackhawk Midstream LLC, an entity that is 50% owned by Gulfport, has entered into an agreement to sell its equity interest in Ohio Gathering LLC for $190 million. Ohio Gathering is currently owned by MarkWest Energy Partners LP (MWE-NR) and Blackhawk Midstream. The company owns, operates and is developing significant midstream infrastructure in the core of the Utica consisting of liquids-rich and dry gas gathering systems, condensate stabilization storage and terminating facility. Essentially simultaneously, MarkWest announced that it has formed a joint venture with Gulfport and signed definitive agreements to develop and expand condensate solutions in the Utica. These moves should add nice cash and midstream availability.”

Gulfport Energy closed on Friday at $60.34.