Gulfport share buybacks sought by investor

Bloomberg

One of the largest investors in Gulfport Energy Corp. is urging changes at the natural gas and oil company, saying its board lacks the experience needed to correct its lagging performance.
Firefly Value Partners, which said it and its affiliates own 8.1 percent of Gulfport, also wants the company to implement a $500 million share buyback program, according to a letter to the company’s board. It argues doing so could increase its share price by at least $9. The shares fell 2.5 percent to $8.68 at 12:45 pm in New York trading.
“We are concerned that the current board does not possess the necessary skills, experience, or alignment with the company’s stockholders to effectively steer Gulfport’s strategy and maximise long-term shareholder value,” Firefly said in the letter, which was reviewed by Bloomberg.
Firefly, which has never run an activist campaign, wants to work with the company on refreshing the board, said people familiar with the matter who asked not to be identified because it was private. The investment firm will consider nominating a slate of its own directors if that effort fails, the people said.
Oklahoma City-based Gulfport confirmed in a statement that it had received the letter, which it said followed dialogue with Firefly. “Separately, the board of directors has a previously scheduled meeting, after which Gulfport looks forward to providing further information to investors concerning the company’s plans for 2019,” Chief Executive Officer David Wood said in the statement.