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