Goodrich Petroleum (GDP) Reports Q4 Loss of $0.62, Revenues Miss

Goodrich Petroleum (NYSE: GDP) reported Q4 EPS of ($0.62), versus ($0.08) reported last year. Revenue for the quarter came in at $28.9 million versus the consensus estimate of $31.35 million.

FINANCIAL HIGHLIGHTS

• Adjusted net income was $3.3 million for the quarter and $2.7 million for the year. The Company had a net loss of $7.9 million ($0.62 per basic and fully diluted share) for the quarter and a net loss of $44.1 million ($3.50 per basic and fully diluted share) for the year, which included an impairment expense of $18.9 million for the quarter and $36.1 million for the year and a mark-to-market loss representing the change of the fair value of our open natural gas and oil derivative contracts of $10.8 million for the year.
• Adjusted EBITDA was $17.4 million for the quarter and $62.0 million for the year. Discretionary cash flow ("DCF"), defined as net cash provided by operating activities before changes in working capital, was $16.8 million in the quarter and $58.4 million for the year.
• Production totaled 12.4 Bcfe in the quarter, or an average of approximately 135,000 Mcfe per day. Production was negatively impacted by the completion deferral of 4 gross (0.5 net) non-operated wells to the first quarter of 2021.
• Return on Invested Capital ("ROIC"), defined as trailing twelve month Adjusted EBITDA divided by total assets less current liabilities, was 38% at year-end.
• Per unit cash expenses were $1.04 per Mcfe for the quarter, broken out as follows.
  • Lease operating expense ("LOE") including workovers was $0.29 per Mcfe, which included $0.07 per Mcfe of workover expense;
  • Production and other taxes expense was $0.03 per Mcfe;
  • Transportation and processing expense was $0.37 per Mcfe;
  • General and Administrative ("G&A") expense (payable in cash) was $0.28 per Mcfe; and
  • Cash Interest expense was $0.07 per Mcfe.
  • Cash Margin was $1.31 per Mcfe (56%), comprised of a net realized price including hedges of $2.35 per Mcfe less per unit cash expenses detailed above of $1.04 per Mcfe.
• On March 9, 2021, the Company added an incremental $15 million of second lien notes to its existing such notes and extended the maturity date to May 31, 2023. The Company used the proceeds to pay down its credit facility balance, which stood at $96.4 million at year-end. The incremental capital provides added liquidity under its credit facility, which currently has a borrowing base of $120 million, with its next redetermination in the spring.

GUIDANCE

The Company is maintaining its full year capital expenditure guidance for 2021 of $75 – 85 million, but issuing new production guidance to take into effect an increase in non-operated activity versus operated activity, which will cause a delay in previously scheduled completions, and production shut-ins from the storm in February. Production guidance for 2021 is reduced by 5,000 MMBtu per day at the midpoint, to an average of 160,000 – 170,000 Mcfe per day, and production for the first quarter is expected to average 127,500 – 132,500 Mcfe per day. The Company has recently completed 9.0 gross (3.2 net) wells, with current production rate of approximately 160,000 Mcfe per day.

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

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