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Goodrich Petroleum Corp. Reports Operating Results (10-Q)

November 04, 2010 | About:
10qk

10qk

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Goodrich Petroleum Corp. (GDP) filed Quarterly Report for the period ended 2010-09-30.

Goodrich Petroleum Corp. has a market cap of $468.9 million; its shares were traded at around $12.51 with and P/S ratio of 4.2. GDP is in the portfolios of Bruce Kovner of Caxton Associates, Chuck Royce of Royce& Associates, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

For the three months ended September 30, 2010, we reported a net loss applicable to common stock of $215.1 million, or $5.98 per basic and diluted share, on total revenue of $37.4 million as compared to a net loss applicable to common stock of $31.0 million, or $0.87 per basic and diluted share, on total revenue of $23.5 million for the three months ended September 30, 2009. As a result of a decreasing projected natural gas price environment, we recorded impairment expense of $223.3 million in the current period. The rise in our average realized oil and gas prices period to period contributed $10.1 million and the increase in production contributed $3.8 million to the $13.9 million increase in oil and gas revenues as compared to the three months ended September 30, 2009. We recorded a $22.5 million gain on derivatives not designated as hedges in the three months ended September 30, 2010 compared to a $1.5 million loss on derivatives not designated as hedges for the three months ended September 30, 2009. The increase in the derivative gain between periods is due to the decrease in futures gas prices. We increased our tax valuation allowance in the three months ended September 30, 2010, resulting in our recording no income tax benefit for the period compared to a tax benefit of $16.4 million in the three months ended September 30, 2009.

For the nine months ended September 30, 2010, we reported a net loss applicable to common stock of $235.4 million, or $6.56 per basic and diluted share, on total revenue of $112.0 million as compared to a net loss applicable to common stock of $65.9 million, or $1.84 per basic and diluted share, on total revenue of $78.2 million for the nine months ended September 30, 2009. As a result of a decreasing projected natural gas price environment, we recorded impairment expense of $223.3 million in the current period compared to $23.5 million for the nine months ended September 30, 2009. The rise in our average realized oil and gas prices period to period increased oil and gas revenues by approximately $20.6 million and the production increase contributed approximately $13.1 million to the increase of $33.7 million in oil and gas revenues. Due to favorable terms on our hedges verses market prices, we recorded a $57.5 million gain on derivatives not designated as hedges in the nine months ended September 30, 2010 compared to a $38.0 million gain on derivatives not designated as hedges for the nine months ended September 30, 2009. We continue to maintain a full valuation allowance for our net deferred tax asset as of September 30, 2010, consequently; we did not record any income tax benefit in the nine months ended September 30, 2010 compared to an income tax benefit of $36.5 million for the nine months ended September 30, 2009.

For the three months ended September 30, 2010, our average realized price was $5.03 per Mcf including the effect of the realized gains and losses on our natural gas derivatives. For the same period, our average realized price was $4.26 per Mcf, excluding the effect of the realized gains and losses on our natural gas derivatives. For the three months ended September 30, 2009, our average realized price was $6.63 per Mcf including the effect of the realized gains and losses on our natural gas derivatives. For the same period, our average realized price was $2.89 per Mcf, excluding the effect of the realized gains and losses on our natural gas derivatives.

For the nine months ended September 30, 2010, our average realized price was $4.98 per Mcf including the effect of the realized gains and losses on our natural gas derivatives. For the same period, our average realized price was $4.33 per Mcf, excluding the effect of the realized gains and losses on our natural gas derivatives. For the nine months ended September 30, 2009, our average realized price was $7.01 per Mcf including the effect of the realized gains and losses on our natural gas derivatives. For the same period, our average realized price was $3.42 per Mcf, excluding the effect of the realized gains and losses on our natural gas derivatives.

The difference between our realized prices inclusive of the hedge realizations in the 2010 and 2009 periods relates to the floor price on our collars. In 2010, we had 50,000 MMBtu per day hedged at a floor price of $6.00 per MMBtu and in 2009, we had 60,000 MMBtu per day hedged at an average floor price of $8.48 per MMbtu.

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