Gulfport Energy: Gushing with good news

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A gusher of positive news has sent shares of Gulfport Energy Corp. (Nasdaq: GPOR) sharply higher in recent weeks. Just as motorists have found that pump prices have remained well above $2.50 a gallon since spring, Gulfport’s stock price is showing no signs of dropping back into its former trading range.
 
In fact, Gulfport’s share price is sending its market capitalization right out of the small-cap arena. Still, there could be some buying opportunities if there’s a market pullback – or, more likely, profit-taking by the patient investors who stuck with it. 

Gulfport Energy is an independent oil and natural gas exploration and production company based in Oklahoma City. The company, founded in 1997, has its principal producing properties located along the Louisiana Gulf Coast, along with some exploration activity in the Canadian oil sands and a smattering of activity in Thailand. As of Dec. 31, 2006, the company had 23.2 million barrels of oil equivalent of proved reserves.

Until the Gulf Coast was ripped apart by hurricanes Katrina and Rita in 2005, Gulfport Energy was truly a small-cap stock, trading in the $2-$5 range. Then it began taking off, riding the wave of a production fall-off and soaring oil demand.
 
The global demand for commodities, especially petroleum products, has helped push Gulfport Energy out of its stock trading rut, seemingly for good. In May, the company was listed among the top 100 growth companies compiled by BusinessWeek. Just as the big boys in the oilfields have seen their profits soar along with oil prices, Gulfport Energy’s profit has increased 308%, on average, over the past three years, BusinessWeek noted.

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