March 16, 2020 - 6:00 AM EDT
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Goodrich Petroleum Announces Revised Capital Expenditure Budget And 2020 Guidance

HOUSTON, March 16, 2020 /PRNewswire/ -- Goodrich Petroleum Corporation (NYSE American: GDP) today announced it has lowered its 2020 preliminary capital expenditure budget by $15 million to $40 - $50  million, which is expected to generate free cash flow of an estimated $15 - $25 million at $2.00 - $2.50 natural gas prices. At the midpoint of this revised guidance, the Company estimates it will generate a free cash flow yield of approximately 13% and 40% on the Company's current enterprise value and market capitalization, respectively, and remain below the Company's net Debt to EBITDA target of 1.5 times.

The Company now expects to grow production by 5 - 7% versus 2019 to a range of approximately 50 – 52 Bcfe, or an average of 137,000 – 142,000 Mcfe per day for the year. Natural gas is expected to comprise approximately 99% of total production.

The preliminary capital expenditure budget is subject to quarterly review and approval by the Company's board of directors, with the flexibility to accelerate in the second half of the year depending on commodity prices. The Company has allocated the majority of the budget to drilling and completing core Haynesville Shale wells in the Bethany-Longstreet area of Caddo and DeSoto Parishes, Louisiana.

The Company has hedged approximately 50% of its expected natural gas volumes for the year at a blended average price of approximately $2.60. In addition, to further support and protect the capital plans and balance sheet, the Company has recently added hedges from April, 2021 through March, 2022 as shown on the current management presentation posted on the Company's website.

OTHER INFORMATION

Certain statements in this news release regarding future expectations and plans for future activities may be regarded as "forward looking statements" within the meaning of the Securities Litigation Reform Act.  They are subject to various risks, such as financial market conditions, changes in commodities prices and costs of drilling and completion, operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and other subsequent filings with the Securities and Exchange Commission.  Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

Goodrich Petroleum is an independent oil and natural gas exploration and production company listed on the NYSE American under the symbol "GDP".

 

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SOURCE Goodrich Petroleum Corporation


Source: PR Newswire (March 16, 2020 - 6:00 AM EDT)

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