Today, investors in Gulfport Energy (OTCMKTS:GPORQ) and Gulfport Energy stock are seeing gains of approximately 4% at the time of writing on an otherwise down day. Markets are taking a beating amid inflation concerns and a Federal Reserve minutes release scheduled for today at 2:00 p.m. Eastern.
That said, Gulfport has turned out to be one of the few bright spots in an otherwise dark and gloomy market today. The company announced yesterday it has successfully emerged from Chapter 11 bankruptcy. As such, today’s rise is one that many expected to materialize.
Currently, Gulfport’s trading below 5 cents per share, so it’s one of those high-risk, high-reward gambles retail investors have been attracted to of late. Accordingly, I expected this stock to get more attention on this news and see a bigger jump.
But that’s neither here nor there.
Let’s dive into the news, and see what it means for investors.
Gulfport Energy Stock Seeing Momentum Today
In November of last year, Gulfport filed for bankruptcy protection. The company announced a restructuring plan intended to eliminate more than $1.2 billion in debt, as well as reduce the company’s cash burn rate.
It appears the company has succeeded on all fronts in hitting these targets. Gulfport recently announced a much stronger balance sheet coming out of Chapter 11. It reduced its debt by more than $1.2 billion, announced $135 million of liquidity, and a net debt to EBITDA ratio of roughly 1.5 times. That’s not bad, considering where this company was just a few months ago.
Additionally, Gulfport announced a board shuffle and new executives to lead the charge forward.
Investors seem to be buying into this vision today. That said, the company’s shares have traded on lower-than-average volume thus far, and some investors may be dismayed at the rather small gain. Gulfport’s market capitalization places this company in the micro-cap segment of the market, valued at less than $10 million currently. Accordingly, Gulfport Energy stock remains a highly speculative bet today.
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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.