Goodrich Petroleum Announces Acquisition and Updated 2021 and Preliminary 2022 Guidance

Rhea-AI Summary

Goodrich Petroleum Corporation (NYSE American: GDP) announced the acquisition of eight wells in the Haynesville Shale basin, producing about 2,000 Mcfe per day, for $1.5 million. The deal includes obligations to drill eight additional wells over four years, expanding their holdings to approximately 32,000 net acres. Updated production guidance for Q3 and Q4 2021 projects between 15.2 – 16.1 Bcfe and 17.3 – 18.2 Bcfe, respectively. Preliminary 2022 projections estimate production of 76.7 – 87.6 Bcfe.

Positive

• Acquisition of eight producing wells adds 2,000 Mcfe per day.
• Expansion of holdings to approximately 32,000 net acres.
• Guidance indicates potential increase in production and revenue.

Negative

• Obligation to drill eight new wells may strain financial resources.

HOUSTON, Sept. 1, 2021 /PRNewswire/ -- Goodrich Petroleum Corporation (NYSE American: GDP) (the "Company") today announced an acquisition in the core of the Haynesville Shale basin and updated third quarter and fourth quarter of 2021 and preliminary 2022 guidance.

ACQUISITION

The Company has acquired eight wells producing approximately 2,000 Mcfe per day and approximately 5,800 gross (4,500 net) acres in the core of the Haynesville Shale basin in Caddo and Bossier Parishes, Louisiana for $1.5 million and the obligation to drill eight wells over a four year period. The Company now has approximately 32,000 net acres in the core of the play.

GUIDANCE

The Company is giving additional guidance for the third quarter and fourth quarter of 2021 and preliminary guidance for 2022 based on current strip prices and subject to quarterly review, as follows:

	3Q21	4Q21	2022
Production (Bcfe – 99% Natural Gas):	15.2 – 16.1	17.3  –  18.2	76.7  –  87.6
Average Daily Production (Mcfe Per Day)	165,000 – 175,000	187,500 – 197,500	210,000 – 240,000
Hedged Percentage (Midpoint)	84%	78%	43%
Swaps ($2.86, $2.90 & $2.94, respectively)	66%	62%	16%
Collars ($2.50 - $3.50 for 2021 & $2.68 -               $3.40 for 2022)	18%	16%	27%
LOE (Per Mcfe)	$0.18 - $0.23	$0.18 - $0.23	$0.17 - $0.21
Transportation & processing (Per Mcfe)	$0.27 - $0.29	$0.27 - $0.29	$0.25 - $0.31
Production & other taxes (Per Mcfe)	$0.06	$0.06	$0.05 - $0.07
G&A (Per Mcfe – Cash)	$0.19 - $0.23	$0.19 - $0.23	$0.16 - $0.22
Adjusted EBITDA	$32 - $36 Million	$38 - $42 Million	$180 - $200 Million
Capex	$23 - $27 Million	$16 - $20 Million	$105 - $125 Million
Reinvestment Rate	~75%	~45%	~60%
Free Cash Flow	$6 - $10 Million	$19 - $23 Million	$65 - $85 Million
Net Debt (6/30/21)	$121 Million
Basic Shares (6/30/21)	13.4 Million
Fully Diluted Shares (6/30/21)	15.3 Million

 

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SOURCE Goodrich Petroleum Corporation

FAQ

What did Goodrich Petroleum announce on Sept. 1, 2021?

Goodrich Petroleum announced an acquisition of eight wells in the Haynesville Shale for $1.5 million.

How much gas does the newly acquired production generate?

The acquired wells produce approximately 2,000 Mcfe per day.

What is the expected production guidance for Q3 and Q4 2021?

Q3 guidance is 15.2 – 16.1 Bcfe, and Q4 guidance is 17.3 – 18.2 Bcfe.

What are the projections for Goodrich Petroleum in 2022?

Preliminary guidance for 2022 estimates production of 76.7 – 87.6 Bcfe.

How many total acres does Goodrich Petroleum now have?

Goodrich Petroleum now holds approximately 32,000 net acres in the Haynesville Shale.