This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Goodrich Petroleum Announces 2012 Capital Expenditure Budget And Guidance

HOUSTON, Jan. 4, 2012 /PRNewswire/ -- Goodrich Petroleum Corporation (NYSE: GDP) today announced its preliminary capital expenditure budget for 2012, along with production and cash flow guidance for the year.

2012 CAPITAL EXPENDITURE BUDGET

The Company today announced a preliminary capital expenditure budget for 2012 of $250$275 million, which includes $235$260 million in drilling and completion expenditures and $15 million allocated to leasehold and infrastructure expenses.  The Company anticipates drilling 49 gross (29 net) to 54 gross (32 net) wells for the year, with approximately 75% of the anticipated drilling and completion capital expenditures allocated to oil directed activity.

Oil directed activity will be concentrated in the Eagle Ford Shale trend with $155 million allocated to 29 gross (19 net) wells (which assumes a combination of 6,000 to 9,000 foot laterals), and the Tuscaloosa Marine Shale trend, with $20$45 million allocated to 4 gross (2 net) to 6 gross (4 net) wells.

Of its natural gas directed activity, the Company anticipates completing 14 gross (6 net) non-operated Haynesville Shale wells previously drilled in the core of the play for $35 million, along with $25 million associated with 2 gross (2 net) Angelina River Trend wells.

Capital expenditures in 2012 in the Eagle Ford Shale trend will be positively impacted by the elimination of the drilling carry associated with the Company's leasehold acquisition equal to a 20.8% working interest in the vast majority of the wells drilled in 2011, along with a reduction in drilling and completion costs of an estimated $2.5 million per well as a result of pad drilling, zipper fracs and lower pressure pumping prices. 

PRODUCTION

The Company estimates oil volumes to grow by 130 – 160% in 2012 versus 2011, which will drive very strong cash flow growth.  Natural gas volumes are expected to be flat to slightly down, while overall production on a Mcfe basis is expected to increase by 10 – 15% over 2011.  Oil volumes are estimated to grow to approximately 5,000 barrels per day as the Company exits 2012.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,683.58 -46.53 -0.26%
S&P 500 2,068.76 -8.02 -0.39%
NASDAQ 4,991.94 -17.2740 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs