MLV Maintains Buy On Goodrich Petroleum, Sees 332% Upside


MLV analyst Chad Mabry maintained a Buy rating on Goodrich Petroleum (NYSE:GDP) with a price target of $34.00, which represents a potential upside of 332% from where the stock is currently trading.

Mabry wrote, “We’d highlight that the company’s rig contracts offer flexibility for it to scale down as market conditions dictate: 1 rig contract is well-by-well, another expires in March 2015, and another expires in May 2015. We’re lowering our 2015 capex to ~$220 million (from ~$310) to reflect GDP’s high-graded activity (essentially all TMS). Our 2015 production forecast is reduced to ~70 MMcfe/d (42% gas) from ~80 MMcfe/d (50% gas) due to the removal of Beckville/Minden for its sale (see below). We’d note that GDP has hedged >50% of 2015e oil sales at ~$96/Bbl. We remain buyers of GDP on oversold conditions for the TMS, which do not appear warranted given results from the play to date.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chad Mabry has a total average return of -32.3% and a 8.3% success rate. Mabry has a -58.1% average return when recommending GDP, and is ranked #3356 out of 3364 analysts.

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