As oil prices reel from renewed tariff tensions triggered by former President Donald Trump’s policies, the global energy market is witnessing significant instability. Since the start of the month, oil prices have plunged by as much as 8.5%, with some points showing an alarming drop of 18%. The ripple effects of these tariffs are beginning to reflect in market sentiments, as fears of rising inflation and a potential recession weigh heavily on the economy. Unsurprisingly, this downturn has cast uncertainty over the future of some of the world’s largest oil producers.
Despite these turbulent conditions, a select group of oil and gas exploration and production (E&P) companies are outperforming broader market expectations. A recent analysis focusing on mid-cap E&P stocks — specifically those with market caps between $2 billion and $10 billion — has highlighted standout performers that could present strategic opportunities for retail investors during challenging times.
Gulfport Energy Shows Resilience
Among the top ten outperforming E&P stocks is Gulfport Energy Corporation (NYSE: GPOR), which has demonstrated surprising resilience. Specializing in the production, acquisition, and exploration of oil, natural gas liquids, and natural gas, Gulfport holds key assets in the SCOOP Woodford and Springer formations in central Oklahoma, as well as in the Utica and Marcellus shale plays in eastern Ohio.
Over the last week of trading, Gulfport’s stock has seen a 3.3% uptick, offering a glimmer of optimism amid its broader-year performance, which has seen an 8% decline. Interestingly, despite recent gains, the stock is still trading about 14% below Wall Street’s lowest price target of $190, indicating potential headroom for growth if market conditions stabilize.
In 2024, Gulfport recorded a net loss of approximately $261.4 million, primarily attributed to a non-cash impairment related to its oil and gas assets. Nevertheless, the company continues to focus on shareholder value, buying back 1.2 million shares worth $184.5 million and increasing its total repurchase authorization to $1 billion.
Outlook and Position Among Peers
Looking ahead to 2025, Gulfport projects daily production between 1040 and 1065 TCFe (trillion cubic feet equivalent), with 89% expected to come from natural gas. Its capital expenditures are anticipated to range between $370 million and $395 million. These projections indicate that the company is maintaining a strong focus on efficient operations and continued production growth despite current market volatility.
Ranked 7th among the top 10 oil and gas E&P stocks outperforming in a declining oil price environment, Gulfport Energy is drawing attention from analysts and investors alike. While there is growing belief in its long-term potential, some investors suggest that select AI-focused stocks may offer even faster returns. Nevertheless, Gulfport’s performance amidst economic headwinds stands out as a testament to its strategic focus and operational discipline.
In a market grappling with uncertainty, Gulfport Energy represents a case study in adaptability—highlighting that not all oil and gas stocks are equally vulnerable to broader commodity shocks.
