Capital One Southcoast Raises Price Target on Goodrich Petroleum (GDP) to $78; Maintains Strong Buy

June 24, 2008 8:38 AM EDT

Capital One Southcoast raises their price target on Goodrich Petroleum (NYSE: GDP) from $75 to $78 and maintains their Strong Buy rating.

The firm said, "We continue to recommend GDP as a STRONG BUY given the significant upside for the Haynesville, should the play's metrics exceed our base case assumptions of 6 Bcfe wells, $7MM well costs, 80-acre spacing, and 20% of the acreage developed. We estimate about 150% upside from yesterday's close, should the Haynesville play develop on 40-acre spacing, 7 Bcfe wells, $6MM well costs and 50% of the acreage developed."

The firm also raises their production estimates to reflect GDP's guidance issued in yesterday’s operational update. The company is forecasting 62.5-64.0 MMcfe/d for 2Q compared to the firm’s updated estimate of 63.3 MMcfe/d.

Goodrich Petroleum Corporation is an oil and gas company engaged in the exploration, exploitation, development, and production of oil and natural gas properties.

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