HOUSTON, Nov. 7, 2019 /PRNewswire/ -- Goodrich Petroleum
Corporation (NYSE American: GDP) (the "Company") today announced
financial results for the third quarter ended September 30, 2019.
QUARTER HIGHLIGHTS
- Net Income: Net income was $2.0
million in the quarter ($0.16
per basic, $0.14 per diluted share).
Net income adjusted for the non-cash change in fair value of
unsettled derivative contracts of $2.2
million was $4.2 million.
- Adjusted EBITDA: Adjusted EBITDA increased by 49%
over the prior year period and decreased 1% sequentially to
$21.3 million despite lower natural
gas prices versus the prior year period and second quarter of
2019.
- Production: Production increased by 61% over the
prior year period and decreased by 1% sequentially to an average of
136,000 Mcfe per day for the quarter. Production for the quarter
was negatively impacted by approximately 4,100 Mcfe per day,
comprised of third party pipeline maintenance of 2,200 Mcfe per day
and shut-ins due to offset fracs of 1,900 Mcfe per day. In
addition, the Company completed 1.0 gross (0.9 net) well in the
quarter versus previous guidance of 2.0 gross (2.0 net) wells.
- Cash Operating Expenses: Per unit cash operating
expenses decreased by 23% versus the prior year period and 5%
sequentially to $0.98 per Mcfe for
the quarter, as follows.
-
- Lease operating expense ("LOE") decreased by 13% sequentially
to $0.21 per Mcfe
- Production and other taxes expense were flat sequentially at
$0.05 per Mcfe
- Transportation and processing expense decreased by 11%
sequentially to $0.41 per Mcfe
- General and Administrative ("G&A") expense payable in cash
increased by 7% sequentially to $0.29
per Mcfe
- Senior Credit Facility Borrowing Base: The borrowing
base under the Company's senior credit facility increased by
$10 million to $125 million in August from the initial borrowing
base determined in May, 2019. After discussions with its lead bank,
the Company expects the fall borrowing base redetermination to be
reaffirmed at $125 million.
- Return on Capital Employed ("ROCE"), defined as
annualized third quarter earnings before interest and taxes
("EBIT") divided by total assets less current liabilities, was 17%
for the quarter.
(See accompanying tables at the end of this press release that
reconciles Net income adjusted for the non-cash change in fair
value of unsettled derivative contracts, Adjusted EBITDA, G&A
expense payable in cash and ROCE, all non-US GAAP financial
measures, to their most directly comparable US GAAP financial
measure.)
OPERATIONAL UPDATE
The Company has recently completed its Harris14&23 No. 2
(99% WI) well in the Thorn Lake field of Red River Parish, Louisiana. The well, which
has a lateral length of approximately 9,400 feet, had an average
24-hour initial production rate of approximately 26,000 Mcfe per
day. This is the Company's sixth recent vintage well completed in
the Thorn Lake field and the average cumulative production for the
previous five recent vintage wells has been approximately 7 Bcf
over 13 months from an average lateral length of 6,900 feet.
The Company has drilled and cased its Loftus 27&34 No. 1
(71% WI) well in the Bethany-Longstreet field of Caddo Parish, Louisiana. The well, which is a
7,500 foot lateral is currently being fracked and is expected to be
turned in line ("TIL") by December.
Due to current market conditions the Company and the operator of
certain non-operated wells plan to defer completions on an
additional 1.0 gross (1.0 net) operated well and 3.0 gross (0.75
net) non-operated wells until the first quarter of 2020, bringing
the Company total of drilled but uncompleted ("DUC") Haynesville wells to approximately 5.0 gross
(2.5 net) wells as we enter the first quarter. The expected fourth
quarter completion cadence is currently 2.0 gross (1.7 net) wells
compared to the prior guidance of 5.0 gross (2.7 net) wells.
Production for the fourth quarter of 2019 is expected to be 140,000
– 145,000 Mcfe per day, which is lower by an estimated 14,000 Mcfe
per day for the quarter due to the deferment of completions versus
previous guidance. For the year, the Company expects to complete
8.0 gross (7.2 net) wells versus previous guidance of 12.0 gross
(9.3 net) wells.
The Company is currently running one drilling rig.
THE COMPANY HAS POSTED A NEW PRESENTATION ON THE COMPANY'S
WEBSITE WHICH WILL BE REVIEWED ON THE EARNINGS CONFERENCE CALL.
INVESTORS CAN ACCESS THE SLIDES AT:
http://goodrichpetroleumcorp.investorroom.com/presentations
3Q19 FINANCIAL RESULTS
REVENUES
Revenues totaled $27.2 million in
the quarter, versus $24.4 million in
the prior year period. Average realized price per unit was
$2.17 per Mcfe ($2.01 per Mcf of gas and $59.67 per barrel of oil) in the quarter, versus
$3.12 per Mcfe in the prior year
period ($2.75 per Mcf of gas and
$72.29 per barrel of
oil). Revenues adjusted for the derivative cash settlements
for the quarter of $5.9 million was
$33.1 million.
(See accompanying table at the end of this press release that
reconciles revenues adjusted for the derivative cash settlements,
which is a non-US GAAP financial measure, to its most directly
comparable US GAAP financial measure.)
PRODUCTION
Production totaled 12.5 Bcfe in the quarter, or an average of
approximately 136,000 Mcfe per day, versus 7.8 Bcfe, or an average
of approximately 85,000 Mcfe per day, in the prior year
period. Natural gas production totaled 12.3 Bcf in the quarter
(98% of total production), versus 7.5 Bcf (96% of total production)
during the prior year period.
CASH FLOW
Adjusted EBITDA was $21.3 million
in the quarter and discretionary cash flow ("DCF"), defined as net
cash provided by operating activities before changes in working
capital, was $20.3 million in the
quarter versus Adjusted EBITDA of $14.3
million and DCF of $13.8
million in the prior year period.
(See accompanying tables at the end of this press release that
reconcile Adjusted EBITDA and DCF, which are non-US GAAP financial
measures, to their most directly comparable US GAAP financial
measures.)
NET INCOME
The Company announced net income of $2.0
million in the quarter ($0.16
per basic and $0.14 per fully diluted
share), versus net income of $1.7
million ($0.14 per basic and
$0.12 per fully diluted share) in the
prior year period. Net income adjusted for the non-cash change
in fair value of unsettled derivative contracts of $2.2 million was $4.2
million.
(See accompanying table at the end of this press release that
reconciles net income adjusted for the non-cash change in fair
value of unsettled derivative contracts, which is a non-US GAAP
financial measure, to its most directly comparable US GAAP
financial measure.)
OPERATING EXPENSES
Lease operating expense ("LOE") was $2.6
million ($0.21/Mcfe) in the
quarter, versus $2.6 million
($0.33/Mcfe) in the prior year
period. LOE for the quarter included $0.1 million ($0.01/Mcfe) for workovers, versus $0.3 million ($0.04/Mcfe) in the prior year period. Lease
operating expense for the quarter excluding workovers was
$2.5 million ($0.20/Mcfe) versus $2.3
million ($0.29/Mcfe) in the
prior year period.
Production and other taxes were $0.6
million in the quarter ($0.05/Mcfe), versus $1.0
million ($0.12/Mcfe) in the
prior year period.
Transportation and processing expense was $5.1 million ($0.41/Mcfe) in the quarter, versus $3.3 million ($0.43/Mcfe) in the prior year period.
Depreciation, depletion and amortization ("DD&A") expense
was $13.2 million ($1.06/Mcfe) in the quarter, versus $7.9 million ($1.02/Mcfe) in the prior year period.
General and administrative expense was $5.2 million ($0.42/Mcfe) in the quarter, which includes
non-cash expense of $1.6 million
($0.13/Mcfe) versus $4.6 million ($0.60/Mcfe) in the prior year period, which
included non-cash expense of $1.5
million ($0.20/Mcfe). G&A
Payable in Cash was $3.6 million
($0.29/Mcfe) in the quarter.
(See accompanying table at the end of this press release that
reconciles G&A expense payable in cash, which is a non-US GAAP
financial measure, to its most directly comparable US GAAP
financial measure.)
OPERATING INCOME
Operating income, defined as revenues minus operating expenses,
totaled $0.2 million in the quarter,
versus $5.0 million in the prior year
period. Operating income adjusted for the derivative cash
settlements of $5.9 million was
$6.1 million for the quarter.
(See accompanying table at the end of this press release that
reconciles operating income adjusted for the derivative cash
settlements, which is a non-US GAAP financial measure, to its most
directly comparable US GAAP financial measure.)
CAPITAL EXPENDITURES
Capital expenditures totaled $25.5
million in the quarter, of which $24.8 million was spent on drilling and
completion costs and $0.7 million on
other expenditures, versus $38.3
million in the prior year period, of which $37.5 million was spent on drilling and
completion costs and $0.8 million on
other expenditures. Capital expenditures for the fourth
quarter are expected to be $10 - 15
million.
INTEREST EXPENSE
Interest expense totaled $2.0
million ($0.16/Mcfe) in the
quarter, which included cash interest of $1.2 million incurred on the credit facility and
non-cash interest of $0.8 million,
which included $0.4 million paid
in-kind interest and $0.4 million
amortization of debt discount and debt issuance costs on the
Company's second lien notes. Interest expense for the prior
year period totaled $3.1 million,
which included cash interest of $0.3
million incurred on the credit facility and non-cash
interest of $2.8 million incurred on
the Company's second lien notes, which included $1.7 million paid in-kind interest and
$1.1 million amortization of debt
discount.
CRUDE OIL AND NATURAL GAS DERIVATIVES
The Company had a gain of $3.8
million on its derivatives not designated as hedges in the
quarter, which was comprised of a $5.9
million gain on derivative cash settlements offset by a
$2.2 million loss representing the
change in fair value of our open natural gas and oil derivative
contracts. In the prior year period the Company had a loss of
$0.2 million on its derivatives not
designated as hedges, which was comprised of a negligible change of
the fair value of our open natural gas and oil derivative contracts
as well as a $0.2 million loss on
cash settlement.
During the quarter, the Company increased the amount of natural
gas derivatives through March 2021 by
70,000 Mmbtu per day at an average price of $2.52 per Mmbtu.
BALANCE SHEET
The Company exited the quarter with $1.2
million of cash, $87.9 million
outstanding borrowings under the Company's senior credit facility,
which had a borrowing base of $125
million, and $12.5 million
outstanding under the Company's second lien notes. The borrowing
base on the senior credit facility increased $10 million in August
2019 to $125 million, and
after discussions with its lead bank, the Company expects the fall
redetermination to be reaffirmed at $125
million.
OTHER INFORMATION
In this press release, the Company refers to several non-US GAAP
financial measures, including Adjusted EBITDA, DCF, Return on
Capital Employed ("ROCE") and G&A expense payable in
cash. Management believes Adjusted EBITDA and DCF are good
financial indicators of the Company's performance and ability to
internally generate operating funds. DCF should not be
considered an alternative to net cash provided by operating
activities, as defined by US GAAP. Adjusted EBITDA should
not be considered an alternative to net income (loss) applicable to
common stock, as defined by US GAAP. G&A Payable in Cash
should not be considered an alternative to general and
administrative expense, as defined by US GAAP. Management believes
that all of these non-US GAAP financial measures provide useful
information to investors because they are monitored and used by
Company management and widely used by professional research
analysts in the valuation and investment recommendations of
companies within the oil and gas exploration and production
industry.
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,
2018 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".
GOODRICH PETROLEUM
CORPORATION
|
SELECTED INCOME AND
PRODUCTION DATA
|
(In thousands, except
per share amounts) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
Volumes
|
|
|
|
|
|
|
|
|
|
Natural gas
(MMcf)
|
|
12,257
|
|
7,479
|
|
33,622
|
|
15,601
|
|
Oil and condensate
(MBbls)
|
|
42
|
|
52
|
|
134
|
|
169
|
|
Mmcfe -
Total
|
|
12,506
|
|
7,789
|
|
34,425
|
|
16,617
|
|
|
|
|
|
|
|
|
|
|
|
Mcfe per
day
|
|
135,936
|
|
84,663
|
|
126,097
|
|
60,868
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas
revenues
|
|
$
27,161
|
|
$
24,331
|
|
$
88,193
|
|
$
53,958
|
Other
|
|
4
|
|
89
|
|
(4)
|
|
131
|
|
|
|
$
27,165
|
|
$
24,420
|
|
$
88,189
|
|
$
54,089
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
Lease operating
expense (LOE excluding workovers - $2,504, $2,267, $7,979 and
$6,659, respectively)
|
|
2,589
|
|
2,588
|
|
8,902
|
|
7,619
|
|
Production and other
taxes
|
|
623
|
|
959
|
|
1,878
|
|
2,268
|
|
Transportation and
processing
|
|
5,107
|
|
3,344
|
|
15,562
|
|
6,742
|
|
Depreciation,
depletion and amortization
|
|
13,205
|
|
7,922
|
|
36,550
|
|
16,934
|
|
General and
administrative (payable in cash - $3,603, $3,095, $10,749 and
$10,024, respectively)
|
|
5,196
|
|
4,644
|
|
15,442
|
|
14,643
|
|
Other
|
|
228
|
|
(60)
|
|
179
|
|
105
|
Operating
income
|
|
217
|
|
5,023
|
|
9,676
|
|
5,778
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest expense
(payable in cash - $1,240, $281, $2,696 and $529,
respectively)
|
|
(1,981)
|
|
(3,105)
|
|
(9,036)
|
|
(8,510)
|
|
Interest income and
other expense
|
|
-
|
|
1
|
|
24
|
|
110
|
|
Gain (loss) on
commodity derivatives not designated as hedges
|
|
3,752
|
|
(237)
|
|
15,397
|
|
(3,392)
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
(1,846)
|
|
-
|
|
|
|
1,771
|
|
(3,341)
|
|
4,539
|
|
(11,792)
|
|
|
|
|
|
|
|
|
|
|
Reorganization items,
net
|
|
-
|
|
(16)
|
|
-
|
|
(305)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
1,988
|
|
1,666
|
|
14,215
|
|
(6,319)
|
Income tax
benefit
|
|
-
|
|
-
|
|
-
|
|
-
|
Net income
(loss)
|
|
$
1,988
|
|
$
1,666
|
|
$
14,215
|
|
$
(6,319)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discretionary cash
flow (see non-US GAAP reconciliation) (1)
|
|
$
20,291
|
|
$
13,825
|
|
$
55,662
|
|
$
26,297
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (see
calculation and non-US GAAP reconciliation) (2)
|
|
$
21,258
|
|
$
14,286
|
|
$
58,005
|
|
$
26,597
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
12,257
|
|
11,762
|
|
12,208
|
|
11,538
|
Weighted average
common shares outstanding - diluted (3)
|
|
14,040
|
|
14,046
|
|
14,497
|
|
11,538
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
|
|
|
Net income (loss) -
basic
|
|
$
0.16
|
|
$
0.14
|
|
$
1.16
|
|
$
(0.55)
|
|
Net income (loss) -
diluted
|
|
$
0.14
|
|
$
0.12
|
|
$
1.02
|
|
$
(0.55)
|
|
|
(1) Discretionary
cash flow is defined as net cash provided by operating activities
before changes in operating assets and liabilities. Management
believes that the non-US GAAP measure of discretionary cash flow is
useful as an indicator of an oil and natural gas exploration and
production company's ability to internally fund exploration and
development activities and to service or incur additional debt. The
company has also included this information because changes in
operating assets and liabilities relate to the timing of cash
receipts and disbursements which the company may not control and
may not relate to the period in which the operating activities
occurred. Operating cash flow should not be considered in isolation
or as a substitute for net cash provided by operating activities
prepared in accordance with US GAAP.
|
|
|
|
|
|
|
|
|
|
|
(2) Adjusted EBITDA
is defined as earnings before interest expense, income and similar
taxes, DD&A, share based compensation expense and impairment of
oil and natural gas properties. In calculating adjusted EBITDA,
reorganization gains/losses and gains/losses on commodity
derivatives not designated as hedges net of cash received or paid
in settlement of derivative instruments are also excluded. Other
excluded items include interest income and other, adjustments per
our 2019 Senior Credit Facility agreement for operating leases
under ASC 842 and any other extraordinary non-cash
gains/losses.
|
|
|
|
|
|
|
|
|
|
|
(3) Fully diluted
shares excludes approximately 0.6 million and 1.9 million
potentially dilutive instruments that were anti-dilutive for the
three months ended September 30, 2019 and 2018, respectively, and
approximately 4.0 million potentially dilutive instruments that
were anti-dilutive for the nine months ended September 30,
2018.
|
GOODRICH PETROLEUM
CORPORATION
|
Per Unit Sales Prices
and Costs (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
Average sales price
per unit:
|
|
|
|
|
|
|
|
|
|
Oil (per
Bbl)
|
|
|
|
|
|
|
|
|
|
Including net cash received
from/paid to settle oil derivatives
|
|
$
56.09
|
|
$
61.37
|
|
$
57.52
|
|
$
59.25
|
|
Excluding net cash received
from/paid to settle oil derivatives
|
|
$
59.67
|
|
$
72.29
|
|
$
61.40
|
|
$
69.05
|
|
Natural gas (per
Mcf)
|
|
|
|
|
|
|
|
|
|
Including net cash received
from/paid to settle natural gas derivatives
|
|
$
2.51
|
|
$
2.80
|
|
$
2.58
|
|
$
2.77
|
|
Excluding net cash received
from/paid to settle natural gas derivatives
|
|
$
2.01
|
|
$
2.75
|
|
$
2.38
|
|
$
2.71
|
|
Oil and natural gas
(per Mcfe)
|
|
|
|
|
|
|
|
|
|
Including net cash received
from/paid to settle oil and natural gas derivatives
|
|
$
2.65
|
|
$
3.10
|
|
$
2.74
|
|
$
3.20
|
|
Excluding net cash received
from/paid to settle oil and natural gas derivatives
|
|
$
2.17
|
|
$
3.12
|
|
$
2.56
|
|
$
3.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs Per
Mcfe
|
|
|
|
|
|
|
|
|
|
Lease operating
expense ($0.20, $0.29, $0.23 and $0.40 excluding workovers,
respectively)
|
|
$
0.21
|
|
$
0.33
|
|
$
0.26
|
|
$
0.46
|
|
Production and other
taxes
|
|
$
0.05
|
|
$
0.12
|
|
$
0.05
|
|
$
0.14
|
|
Transportation and
processing
|
|
$
0.41
|
|
$
0.43
|
|
$
0.45
|
|
$
0.41
|
|
Depreciation,
depletion and amortization
|
|
$
1.06
|
|
$
1.02
|
|
$
1.06
|
|
$
1.02
|
|
General and
administrative (payable in cash - $0.29, $0.39, $0.31 and $0.60,
respectively)
|
|
$
0.42
|
|
$
0.60
|
|
$
0.45
|
|
$
0.88
|
|
Other
|
|
$
0.02
|
|
$
(0.01)
|
|
$
0.01
|
|
$
0.01
|
|
|
|
$
2.15
|
|
$
2.49
|
|
$
2.28
|
|
$
2.91
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts on a
per Mcfe basis may not total due to rounding.
|
|
GOODRICH PETROLEUM
CORPORATION
|
Cash Flow Data (In
Thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
Reconciliation of
discretionary cash flow and net cash provided by operating
activities (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
Net cash provided by
operating activities (US GAAP)
|
|
$
15,594
|
|
$
24,080
|
|
$
56,847
|
|
$
36,735
|
Net changes in
working capital
|
|
(4,697)
|
|
10,255
|
|
1,185
|
|
10,438
|
Discretionary cash
flow (1)
|
|
$
20,291
|
|
$
13,825
|
|
$
55,662
|
|
$
26,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
1,988
|
|
$
1,666
|
|
$
14,215
|
|
$
(6,319)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
Depletion, depreciation
and amortization
|
|
13,205
|
|
7,922
|
|
36,550
|
|
16,934
|
Right of use asset
depreciation
|
|
313
|
|
-
|
|
939
|
|
-
|
(Gain) loss on
derivatives not designated as hedges
|
|
(3,752)
|
|
237
|
|
(15,397)
|
|
3,392
|
Net cash received from
(paid for) settlement of derivative instruments
|
|
5,922
|
|
(196)
|
|
6,135
|
|
(737)
|
Share based
compensation (non-cash)
|
|
1,617
|
|
1,597
|
|
4,765
|
|
4,764
|
Amortization of finance
cost, debt discount, paid in-kind interest and accretion
|
|
741
|
|
2,824
|
|
6,340
|
|
7,981
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
1,846
|
|
-
|
Reorganization items
(non-cash), net
|
|
-
|
|
16
|
|
-
|
|
305
|
Other
|
|
257
|
|
(241)
|
|
269
|
|
(23)
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
trade and other, net of allowance
|
|
2,123
|
|
1,063
|
|
207
|
|
465
|
Accrued oil and gas
revenue
|
|
5,967
|
|
(1,938)
|
|
4,562
|
|
(4,297)
|
Prepaid expenses and
other
|
|
61
|
|
(211)
|
|
192
|
|
(231)
|
Accounts
payable
|
|
(12,707)
|
|
9,028
|
|
(2,544)
|
|
12,964
|
Accrued
liabilities
|
|
(141)
|
|
2,313
|
|
(1,232)
|
|
1,537
|
Net cash
provided by operating activities
|
|
15,594
|
|
24,080
|
|
56,847
|
|
36,735
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(19,133)
|
|
(32,005)
|
|
(74,199)
|
|
(85,105)
|
Proceeds from sale of
assets
|
|
50
|
|
-
|
|
1,334
|
|
26,920
|
Net cash
used in investing activities
|
|
(19,083)
|
|
(32,005)
|
|
(72,865)
|
|
(58,185)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Principal payments of
bank borrowings
|
|
-
|
|
-
|
|
(49,500)
|
|
(16,723)
|
Proceeds from bank
borrowings
|
|
3,500
|
|
9,000
|
|
110,400
|
|
15,000
|
Repayments of
Convertible Second Lien Notes
|
|
-
|
|
-
|
|
(56,728)
|
|
-
|
Proceeds from New 2L
Notes
|
|
-
|
|
-
|
|
12,000
|
|
-
|
Issuance cost,
net
|
|
(516)
|
|
(43)
|
|
(2,516)
|
|
(53)
|
Purchase of treasury
stock and other
|
|
(4)
|
|
(830)
|
|
(546)
|
|
(835)
|
Net cash
provided by (used in) financing activities
|
|
2,980
|
|
8,127
|
|
13,110
|
|
(2,611)
|
Net increase
(decrease) in cash and cash equivalents
|
|
(509)
|
|
202
|
|
(2,908)
|
|
(24,061)
|
Cash and cash
equivalents, beginning of period
|
|
1,669
|
|
1,729
|
|
4,068
|
|
25,992
|
Cash and cash
equivalents, end of period
|
|
$
1,160
|
|
$
1,931
|
|
$
1,160
|
|
$
1,931
|
GOODRICH PETROLEUM
CORPORATION
|
Other Information and
Reconciliations (In Thousands)
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Balance Sheet Data (unaudited)
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
|
|
|
September 30,
2019
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt,
net
|
|
$
98,822
|
|
|
|
|
|
|
|
Unamortized debt
discount and issuance cost
|
|
1,624
|
|
|
|
|
|
|
|
Total principal
amount of debt
|
|
$
100,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net income (loss) to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
|
Net income (loss) (US
GAAP)
|
|
$
1,988
|
|
$
1,666
|
|
$
14,215
|
|
$
(6,319)
|
|
Depreciation,
depletion and amortization ("DD&A")
|
|
13,205
|
|
7,922
|
|
36,550
|
|
16,934
|
|
Stock compensation
expense (non-cash)
|
|
1,617
|
|
1,597
|
|
4,765
|
|
4,763
|
|
Interest
expense
|
|
1,981
|
|
3,105
|
|
9,036
|
|
8,510
|
|
(Gain) loss on
derivatives not designated as hedges
|
|
(3,752)
|
|
237
|
|
(15,397)
|
|
3,392
|
|
Net cash received
from (paid for) settlement of derivative instruments
|
|
5,922
|
|
(196)
|
|
6,135
|
|
(737)
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
1,846
|
|
-
|
|
Other items
**
|
|
297
|
|
(45)
|
|
855
|
|
54
|
|
Adjusted EBITDA
(2)
|
|
$
21,258
|
|
$
14,286
|
|
$
58,005
|
|
$
26,597
|
|
|
|
|
|
|
|
|
|
|
|
** Other items
include $0.3 million, zero, $0.9 million and zero, respectively,
from the impact of accounting for operating leases under ASC 842 as
well as interest income, reorganization items and other
non-recurring income and expense.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Return on Capital Employed ("ROCE") (non-US GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
21,258
|
|
|
|
|
|
|
|
Less: DD&A (US
GAAP)
|
|
(13,205)
|
|
|
|
|
|
|
|
Earnings before
Interest and Income Taxes ("EBIT") (non-US GAAP)
|
|
$
8,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30,
2019
|
|
|
|
|
|
|
|
|
|
Total Assets (US
GAAP)
|
|
$
234,658
|
|
|
|
|
|
|
|
Less: Current
Liabilities (US GAAP)
|
|
(45,635)
|
|
|
|
|
|
|
|
Capital Employed
("CE") (non- US GAAP)
|
|
$
189,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Return on
Capital Employed (ROCE) (EBIT*4 / CE)
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
|
Change in fair value
of derivatives not designated as hedges
|
|
$
(2,170)
|
|
$
(41)
|
|
$
9,262
|
|
$
(2,655)
|
|
Net cash received
from (paid for) settlement of derivative instruments
|
|
5,922
|
|
(196)
|
|
6,135
|
|
(737)
|
|
Net gain (loss) on
derivatives not designated as hedges
|
|
$
3,752
|
|
$
(237)
|
|
$
15,397
|
|
$
(3,392)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
interest payable in cash to interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
|
Interest expense (US
GAAP)
|
|
$
1,981
|
|
$
3,105
|
|
$
9,036
|
|
$
8,510
|
|
Amortization of debt
discount and issuance cost and paid-in-kind interest
|
|
(741)
|
|
(2,824)
|
|
(6,340)
|
|
(7,981)
|
|
Interest payable in
cash
|
|
$
1,240
|
|
$
281
|
|
$
2,696
|
|
$
529
|
GOODRICH PETROLEUM
CORPORATION
|
Other Information and
Reconciliations continued (In Thousands)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
capital expenditures (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
Net cash used in
investing activities (US GAAP)
|
|
$
(19,083)
|
|
$
(32,005)
|
|
$
(72,865)
|
|
$
(58,185)
|
Cash calls
utilized
|
|
-
|
|
(482)
|
|
-
|
|
(1,193)
|
Inventory
utilized
|
|
-
|
|
(1,234)
|
|
-
|
|
(1,720)
|
Cash proceeds related
to sale of assets
|
|
(50)
|
|
-
|
|
(1,334)
|
|
(26,920)
|
Miscellaneous
capitalized costs & ARO adjustments
|
|
(261)
|
|
(288)
|
|
(702)
|
|
(779)
|
Cost incurred in
prior period and paid in current period
|
|
7,067
|
|
7,706
|
|
8,086
|
|
10,511
|
Capital accrual at
period end
|
|
(13,138)
|
|
(12,038)
|
|
(13,138)
|
|
(12,038)
|
Total capital
expenditures
|
|
$
(25,465)
|
|
$
(38,341)
|
|
$
(79,953)
|
|
$
(90,324)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
general & administrative expense payable in cash to general and
administrative expense (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
General &
administrative expense (US GAAP)
|
|
$
5,196
|
|
$
4,644
|
|
$
15,442
|
|
$
14,643
|
Share based
compensation & non-cash rent
|
|
(1,593)
|
|
(1,549)
|
|
(4,693)
|
|
(4,619)
|
General &
administrative expense payable in cash
|
|
$
3,603
|
|
$
3,095
|
|
$
10,749
|
|
$
10,024
|
|
Oil and natural gas
production (Mcfe)
|
|
12,506
|
|
7,789
|
|
34,425
|
|
16,617
|
|
General and
administrative expense payable in cash per Mcfe
|
|
$
0.29
|
|
$
0.40
|
|
$
0.31
|
|
$
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net income adjusted for the non-cash change in
fair value of unsettled derivative contracts
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
Net income (loss) (US
GAAP)
|
|
$
1,988
|
|
$
1,666
|
|
$
14,215
|
|
$
(6,319)
|
Change in fair value
of derivatives not designated as hedges - loss (gain)
|
|
2,170
|
|
41
|
|
(9,262)
|
|
2,655
|
Net income adjusted
for the non-cash change in fair value of unsettled derivative
contracts
|
$
4,158
|
|
$
1,707
|
|
$
4,953
|
|
$
(3,664)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Revenues adjusted for the derivative cash
settlements (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
Revenues (US
GAAP)
|
|
$
27,165
|
|
$
24,420
|
|
$
88,189
|
|
$
54,089
|
Net cash received
from (paid for) settlement of derivative instruments
|
|
5,922
|
|
(196)
|
|
6,135
|
|
(737)
|
Revenues adjusted for
the derivative cash settlements
|
|
$
33,087
|
|
$
24,224
|
|
$
94,324
|
|
$
53,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating income adjusted for the derivative cash
settlements (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
Operating income (US
GAAP)
|
|
$
217
|
|
$
5,023
|
|
$
9,676
|
|
$
5,778
|
Net cash received
from (paid for) settlement of derivative instruments
|
|
5,922
|
|
(196)
|
|
6,135
|
|
(737)
|
Operating income
adjusted for the derivative cash settlements
|
|
$
6,139
|
|
$
4,827
|
|
$
15,811
|
|
$
5,041
|
View original
content:http://www.prnewswire.com/news-releases/goodrich-petroleum-announces-third-quarter-2019-financial-results-300953178.html
SOURCE Goodrich Petroleum Corporation