Tuesday, April 8, 2008

Goodrich Petroleum (GDP) at Howard Weil

Goodrich Petroleum

GDP will have expanding margins on 2008 due in part to falling rig rates and completion services.

Goodrich is mainly in Cotton Valley Trend – 267 wells drilled through 2007 – 96,000 Mcfe per day is production rate currently. Core properties straddle Texas- Louisiana border.

Company is drill bit only – no acquisitions needed or planned.

Bethany Longstreet area in Louisiana – 18,700 net acres. Have been developing for several years.

Haynesville Shale – a highly gas saturated gas section - early in play – will be watching it over the next few months.

Longwood Area – 9300 net acres – monitoring development ongoing here.

Angelina River Play – Travis Peak and James Lime is target – 35 Travis and 4 James Lime wells on line currently – 40,100 net acres.

2008 drilling program:

115 wells – $ 275 million cost

GDP believes they have 1500 net locations to drill in inventory.

GDP is a big believer in hedging particularly given the margins in the areas that they drill.

359 Bcfe proved reserves – 125,000 net acres – 267 wells drilled in Cotton Valley Trend.


$250 million in debt and $283 million in total equity.

Employees own 42% of company.

NAV on proven basis is expanding rapidly – as probable reserves are converted to proved.

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