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What: Shares of oil and gas company Gulfport Energy
So what: Gulfport reported that production increased 24% from last year to 7,089 barrels of oil equivalent per day and net income rose 27% to $26.7 million, or $0.48 per share. But analysts and investors thought the company would generate $0.60 per share in earnings, so the company didn't live up to expectations this quarter.
Now what: Management expects production to increase to an average of 7,923-8,470 barrels of oil equivalent per day for the full year, which is expected to bring a steady rise in earnings. Even after this quarterly miss, Gulfport has been a fairly steady producer and trades at just 8.2 times 2012 earnings estimates. I think this gives investors a nice discount and shares will improve from here as production increases.
Interested in more info on Gulfport Energy? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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