Goodrich Petroleum (GDP) Misses Q3 EPS by 26c, Revenues Miss

Goodrich Petroleum (NYSE: GDP) reported Q3 EPS of $0.14, $0.26 worse than the analyst estimate of $0.40. Revenue for the quarter came in at $27.17 million versus the consensus estimate of $32.7 million.

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.

For earnings history and earnings-related data on Goodrich Petroleum (GDP) click here.

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