Canaccord Genuity Maintains a 'Buy' on Goodrich Petroleum (GDP); Got Our Liquidity Event

Canaccord Genuity maintains a 'Buy' on Goodrich Petroleum (NYSE: GDP) price target of $29.00.

Analyst, John Gerdes, said, "Goodrich recently announced the sale of its South Henderson properties for $95 million (~10x production rate multiple). The divesture provides the company much-needed financing visibility through ‘13 assuming a $250-$300 million per year capital program...Currently we project Goodrich would be ~90% drawn on its current bank line at year-end ’13 though we expect the borrowing base to grow meaningfully with the growth in oil production (~75% y/y). Further, the company could execute other non-core property rationalizations, like selling the remaining Cotton Valley assets (~15 Mmcfepd) to generate additional liquidity."

For an analyst ratings summary and ratings history on Goodrich Petroleum click here. For more ratings news on Goodrich Petroleum click here.

Shares of Goodrich Petroleum closed at $13.76 yesterday.

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