Company Update (NYSE:GDP): Goodrich Petroleum Corporation Announces Operational And Planning Update
Goodrich Petroleum Corporation (NYSE:GDP) announced that it has commenced completion operations on two of its six drilled but uncompleted wells in the Tuscaloosa Marine Shale (“TMS”). The B-Nez 43H-1 (70%WI) and B-Nez 43H-2 (74% WI) wells in Tangipahoa Parish are near completion of fracture stimulation, with flow back and initial production expected within 1 – 2 weeks. The Company currently anticipates completing the remaining four drilled but uncompleted TMS wells from mid-July through early September. All six wells, which are located within the Company’s core acreage position of 150,000 net acres, will be completed prior to the fall borrowing base redetermination scheduled for October 2015.
The Company’s full year capital expenditure budget of $90 – 110 million was front-end loaded, with approximately 46% of the budget at the mid-point of guidance spent in the first quarter, as the Company entered the year with three rigs under contract. The Company currently has zero rigs running with plans to bring a rig back to the TMS in October, with no change to previously issued guidance. The Company re-affirms second quarter capital expenditure guidance of $10 – 15 million and exited the first quarter with in excess of $100 million of liquidity. The Company maintains the ability to enhance liquidity by pursuing a potential joint venture or sale of its Eagle Ford Shale asset. (Original Source)
Shares of Goodrich Petroleum closed last Friday at $1.58 . GDP has a 1-year high of $29.28 and a 1-year low of $1.55. The stock’s 50-day moving average is $2.92 and its 200-day moving average is $3.45.
On the ratings front, Goodrich Petroleum has been the subject of a number of recent research reports. In a report issued on June 18, Suntrust Robinson Humphrey analyst Neal Dingmann maintained a Buy rating on GDP, with a price target of $4, which represents a potential upside of 153.2% from where the stock is currently trading. Separately, on May 7, Imperial’s Kim Pacanovsky reiterated a Buy rating on the stock and has a price target of $7.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Neal Dingmann and Kim Pacanovsky have a total average return of -7.0% and -30.0% respectively. Dingmann has a success rate of 36.5% and is ranked #3527 out of 3638 analysts, while Pacanovsky has a success rate of 23.2% and is ranked #3636.
Goodrich Petroleum Corp is an independent oil & natural gas company engaged in the exploration, development & production of oil & natural gas on properties in South Texas, Northwest Louisiana & East Texas & Southwest Mississippi & Southeast Louisiana.