Gulfport Energy Corporation (GPOR), Marathon Petroleum Corp (MPC): Employment Growth Here Could Be Right Around the Corner

Arguably the best positioned Utica driller is Gulfport Energy Corporation (NASDAQ:GPOR). It sees development of the Utica being a catalyst for both production and reserve growth, and its basically building the company’s future around this one play. Gulfport Energy Corporation (NASDAQ:GPOR) is planning to spend up to $426 million of its $512 million capital budget on the Utica this year. That’s a huge bet for a company of its size.

The final thing to consider is the increased midstream capacity that Chesapeake mentioned. Both Markwest Energy Partners LP (NYSE:MWE) and Dominion Resources, Inc. (NYSE:D) have processing and pipeline capacity coming on line over the next few years. This will get the gas and oil to market centers and drive profitability for the drillers, which will encourage more capital to be deployed in the region.

Marathon Petroleum Corp (NYSE:MPC) now has Utica crude oil being moved by truck, train, and barge to its refineries in the area. This is weening those refineries off of expensive foreign imports and improving profits. As production increases, expect to see more projects being announced to take advantage of Ohio’s resources. That will mean jobs, and if North Dakota and Texas are any indication, it could mean a lot of them.

Ohio might be wondering when those promised jobs from the Utica Shale boom will finally arrive. I’d venture to say that the Utica Shale would ask for a little more patience as these things take time to ramp up. While the employment growth will likely never exceed the already sky-high expectations, at some point the trickle-down effect will be felt as it has been in so many other areas affected by the shale boom.

The article Employment Growth Here Could Be Right Around the Corner originally appeared on Fool.com.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Dominion Resources (NYSE:D). The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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