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Goodrich Petroleum Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 6, 2011 02:20PM

Goodrich Petroleum Corp. (GDP) filed Quarterly Report for the period ended 2011-03-31. Goodrich Petroleum Corp. has a market cap of $735.7 million; its shares were traded at around $19.53 with and P/S ratio of 5.



Highlight of Business Operations:

Our core Haynesville shale drilling program is primarily concentrated in the Bethany-Longstreet and Greenwood-Waskom fields in Caddo and DeSoto Parishes in northwest Louisiana. Our core Haynesville Shale drilling activity includes both operated and non-operated drilling in and around its core acreage positions in northwest Louisiana. We continue to build our acreage position in the trend and hold approximately 30,000 gross (16,000 net) acres as of March 31, 2011. Our net production volumes from our core Haynesville Shale wells totaled approximately 51,000 Mcfe per day in the first quarter of 2011, or approximately 51% of our total production for the quarter. In 2011, we estimate that we will spend approximately $25 to $30 million on 5 to 7 gross wells.

Our properties in the Shelby Trough/Angelina River trend, where we are the operator of all of our drilling activities, which are primarily located in Nacogdoches, Angelina and Shelby Counties of East Texas. We continue to build our acreage position in the trend and hold approximately 48,500 gross (27,000 net) acres as of March 31, 2011. Our net production volumes from our Shelby Trough wells totaled approximately 9,000 Mcfe per day in the first quarter of 2011, or approximately 8.9% of our total production for the first quarter of 2011. In 2011, we estimate that we will spend approximately $20 to $30 million on 2 to 3 gross wells.

During 2010, we conducted drilling operations on four horizontal Cotton Valley Taylor Sand wells throughout our acreage position in the Minden, Beckville and South Henderson fields of East Texas. In the South Henderson field, our Travis Crow 1H well reached initial production of over 12.0 MMcfe/day, which included approximately 380 Bbls of oil per day. In 2011, we plan to spend approximately $20 to $25 million to drill three offset wells in its South Henderson field. We have approximately 56,000 gross (50,000) net acres prospective for the Cotton Valley Taylor Sand. Net production volumes from our Cotton Valley Taylor Sand wells totaled approximately 12,000 Mcfe per day in the first quarter of 2011, or approximately 12% of our total oil and gas production for the quarter.

For the three months ended March 31, 2011, we reported a net loss applicable to common stock of $24.7 million, or $0.68 per basic and diluted share, on total revenue of $41.2 million as compared to a net income applicable to common stock of $2.8 million, or $0.08 per basic and diluted share, on total revenue of $40.4 million for the three months ended March 31, 2010. The increase in production contributed $5.6 million to the $0.5 million increase in oil and gas revenues offset by the $5.1 decrease in our average realized oil and gas prices as compared to the three months ended March 31, 2010. We recorded a $10.0 million loss on derivatives not designated as hedges in the three months ended March 31, 2011 compared to a $34.7 million gain on derivatives not designated as hedges for the three months ended March 31, 2010. The derivative loss between periods was the primary driver behind the decrease in net income and was due to the increase in futures oil prices.

For the three months ended March 31, 2011, our average realized price for natural gas was $3.91 per Mcf excluding the effect of the realized gains and losses on our natural gas derivatives. For the same period in 2010, our average realized price for natural gas was $4.87 per Mcf, excluding the effect of the realized gains and losses on our natural gas derivatives. For the three months ended March 31, 2011, our average realized price for natural gas was $5.08 per Mcf including the effect of the realized gains and losses on our natural gas derivatives. For the same period in 2010, our average realized price for natural gas was $4.70 per Mcf, including the effect of the realized gains and losses on our natural gas derivatives.

Production and Other Taxes. Production and other taxes for the three months ended March 31, 2011 includes ad valorem tax of $0.6 million and a $0.4 million in production tax. The production tax represents $0.8 million current period expense reduced by $0.4 million in Texas high cost severance tax credits. During the comparable period in 2010, production and other taxes included ad valorem tax of $0.5 million and production tax of $0.5 million. Production tax in the three months ended March 31, 2010 included $0.5 million in Tight Gas Sands (“TGS”) tax credits.

Read the The complete Report



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