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

August 07, 2012 | About:
10qk

10qk

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Goodrich Petroleum Corp. (GDP) filed Quarterly Report for the period ended 2012-06-30.

Goodrich Petroleum Corporation has a market cap of $406 million; its shares were traded at around $12.55 with and P/S ratio of 2.
This is the annual revenues and earnings per share of GDP over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of GDP.


Highlight of Business Operations:

For the three months ended June 30, 2012, we reported a net loss applicable to common stock of $4.7 million, or $0.13 per basic and diluted share, on total revenue of $41.3 million as compared to a net loss applicable to common stock of $1.4 million, or $0.04 per basic and diluted share, on total revenue of $52.9 million for the three months ended June 30, 2011. The decrease in average realized sales price contributed approximately $0.9 million to the decrease in oil and natural gas revenue, while the decrease in production volumes contributed approximately $10.1 million to the decrease in oil and natural gas revenue as compared to the three months ended June 30, 2011. We recorded a $24.0 million gain on derivatives not designated as hedges in the three months ended June 30, 2012, compared to an $11.0 million gain on derivatives not designated as hedges for the three months ended June 30, 2011.

For the six months ended June 30, 2012, we reported a net loss applicable to common stock of $24.0 million, or $0.66 per basic and diluted share, on total revenue of $86.7 million as compared to a net loss applicable to common stock of $26.1 million, or $0.72 per basic and diluted share, on total revenue of $94.1 million for the six months ended June 30, 2011. The decrease in production volumes in the six months ended June 30, 2012 compared to the same period in 2011 reduced oil and natural gas revenue by $11.9 million, while the increase in average realized sales price benefited oil and natural gas revenues in the six months ended June 30, 2012 by approximately $5.3 million. We recorded a $33.5 million gain on derivatives not designated as hedges in the six months ended June 30, 2012, compared to a $0.9 million gain on derivatives not designated as hedges for the six months ended June 30, 2011.

Revenues from operations decreased for the three months ended June, 2012 compared to the same period in 2011 as a result of a 2% net decrease in average realized sales price, and a 20% decrease in daily production. The production decrease in the three month period ended June 30, 2012 compared to the same period in 2011 was caused by a natural decline in natural gas production. In response to depressed natural gas prices, we continue to focus our resources on increasing oil production, which we are currently able to sell at a more favorable relative price. For the three months ended June 30, 2012, 61% of our oil and natural gas revenue was attributable to oil revenue versus 25% for the three months ended June 30, 2011.

Revenues from operations decreased for the six months ended June 30, 2012 compared to the same period in 2011 as a result of a 13% decrease in daily production, partially offset by a 6% net increase in average realized sales price. The production decrease in the six month period ended June 30, 2012 compared to the same period in 2011 was caused by a natural decline in natural gas production. In response to depressed natural gas prices, we continue to focus our resources on increasing oil production, which we are currently able to sell at a more favorable relative price. For the six months ended June 30, 2012, 55% of our oil and natural gas revenue was attributable to oil revenue versus 22% for the six months ended June 30, 2011.

Operating activities. Production from our wells, the price of oil and natural gas and operating costs represent the main drivers behind our cash flow from operations. Changes in working capital also impact cash flows. Net cash provided by operating activities increased $10.0 million for the six months ended June 30, 2012 compared to the same period in 2011. Cash received related to oil and natural gas revenue increased $6.3 million in the six months ended June 30, 2012 compared to the same period in 2011 due to (i) growth in oil volumes as a percentage of total volumes from 7% in 2011 to 17% in 2012, and (ii) a 6% increase in the average realized sales price from $4.82 to $5.09 per Mcfe. Also additive to cash flow from operations was $24.1 million in additional realized cash settlements on our derivative contracts. Offsetting decreases to cash flow in the six months ended June 30, 2012 include (i) operating costs increased $7.7 million in 2012 as compared to 2011 (ii) $4.1 million in additional cash interest paid in 2012 as we refinanced $175 million of our 2026 Notes with $275 million of our 2019 Notes and increased borrowings under our Senior Credit Facility and (iii) $8.4 million in working capital changes.

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