Source: Streetwise Reports 06/20/2019
A review of those figures and revised Q2/19 estimates were given in a ROTH Capital Partners report.
In a June 18 research note, ROTH Capital Partners analyst John White reported that Goodrich Petroleum Corp.’s (GDP:NYSE) “excellent” three-year reserve replacement cost (RRC) and finding and development cost (F&DC) “are the best in our coverage.”
With its three-year RRC and its three-year F&DC, both at $1.96 per barrels of oil equivalent ($1.95/boe), the company ranks first among ROTH’s exploration and production coverage universe for each. The numbers is the same for both because all growth during that period occurred through drilling and not acquisitions.
“The figures demonstrate, in our view, the strong characteristics of the asset base and Goodrich’s management and technical expertise,” White commented.
White also presented ROTH’s revised estimates for Goodrich’s Q2/19. Forecasted cash flow per share and EBITDA are $1.29 million and $18 million, similar to its previous figures of $1.26 million and $18.2 million. Projected production is now higher, at 135,704 thousand cubic feet equivalent per day (135,704 Mcfe/day) versus 129,926 Mcfe/day previously.
ROTH lowered Goodrich’s realized natural gas price for Q2/19 to 2.3 per million British thermal units (2.3/MMBtu) from $2.40/MMBtu due to higher differentials, but noted it should not affect revenue.
In terms of expenses, ROTH expects higher transportation costs to offset lower operating costs. Its estimated earnings per share for Q2/19 is $0.16, down from its previous $0.25 on higher depreciation, depletion and amortization, only partially offset by lower interest expense.
ROTH has a Buy rating and a $23 per share price target on Goodrich, whose stock is currently trading at around $11.10 per share.
Sign up for our FREE newsletter at: www.streetwisereports.com/get-news
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from ROTH Capital Partners, Goodrich Petroleum Corp., Company Note, June 18, 2019
Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
ROTH makes a market in shares of Goodrich Petroleum Corp. and as such, buys and sells from customers on a principal basis.
A Research Analyst and/or a member of the Analyst’s household own(s) debt or equity securities of Goodrich Petroleum Corp. stock.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.
( Companies Mentioned: GDP:NYSE,