Skip to main content

Goodrich Petroleum Q3 2015 results

Published by
Oilfield Technology,



Financial update

  • To date, the Company has reduced total debt by approximately US$198 million (31%) and annual interest expense by approximately US$9.5 million (debt exchanges and conversions only) since the end of the second quarter through the following transactions:
  • In September the Company exchanged US$55 million of (old) 2032 convertible notes into US$27.5 million of (new) 2032 convertible notes resulting in US$27.5 million of net debt reduction
  • In September the Company closed on the sale of its Eagle Ford Shale production, proved reserves and associated acreage which allowed for a reduction in net debt through the third quarter of approximately US$72.5 million. Approximately US$14 million of sales proceeds is still held in escrow pending a post-closing settlement;
  • In October the Company exchanged US$158.2 million of 2019 senior notes into US$75 million of second lien notes resulting in US$83.2 million of net debt reduction. The Company expects to book an estimated gain of US$62.6 million in the fourth quarter for the debt exchange;
  • In October the Company exchanged US$17.1 million of (old) 2032 convertible notes into US$8.5 million of (new) 2032 convertible notes resulting in US$8.6 million of net debt reduction;
  • In September and October the Company reduced total debt by an additional US$6.2 million through conversion of (new) 2032 convertible notes into common stock.
  • The Company remains focused on transactions that will reduce debt and interest expense.

    The borrowing base under the Company's senior credit facility was reaffirmed at $75 million and covenants amended to provide for flexibility through February 2017.

    Third quarter highlights:

  • Capital expenditures for the quarter totaled $16.4 million. Full year capital expenditures expected to be lower by 10-15% versus previous guidance;
  • Production for the quarter totaled 645,000 boe (50% oil), which was affected by deferred completions and the sale of the Company's Eagle Ford production, proved reserves and associated acreage;
  • Adjusted Revenues, which includes the benefit of realised gains on the Company's oil hedges, were US$31.5 million for the quarter versus US$55.1 million in the prior year period;
  • Operating Expenses were lower by US$114.5 million in the quarter versus the prior year period primarily due to a decrease in the amount of impairment expense recognised of US$52.9 million and a US$42.8 million gain recognised on the sale of the Company's producing interest and associated acreage in the Eagle Ford Shale. Sequentially Operating Expenses were lower by US$9.2 million;
  • (Adjusted EBITDAX) defined as earnings before interest, taxes, non-cash general & administrative (G&A) expenses and exploration was US$20.3 million in the quarter, compared to US$37.1 million in the prior year period.

  • Adapted from a press release by Louise Mulhall

    Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/05112015/goodrich-petroleum-q3-2015-results/

     

    Embed article link: (copy the HTML code below):