This Day On The Street
Continue to site
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's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Our transition will continue, and we are confident further progress will be made over the coming quarters, as we will direct virtually all of our drilling and development capital expenditures to oil-directed drilling in both the Eagle Ford Shale and the Tuscaloosa Marine Shale. In the TMS, we significantly expanded our footprint and acreage position in the thick, high-resistivity portion of the play during the second quarter.

We exited the first quarter with approximately 102,000 net acres. We updated that position on May 23 to reflect the addition of 18,000 net acres, and we subsequently added another 12,000 net acres, during the second quarter, to bring our total net position to 132,000 net acres.

The agreements we have in place and the wells we have participated in, to date, provide us excellent insight into the development of the play, and we are pleased and encouraged by the early-stage well performance in the TMS.

As a result, we are increasing our capital allocation to the TMS during the second quarter of this year, with plans for further acceleration in 2013. At the core of our natural-gas-to-oil strategy is the rapid expansion of revenues, cash margins, and cash flow.

Our growing crude oil volumes, coupled with our excellent hedge position, are achieving the projected results. While production, measured on an Mcfe basis, declined by approximately 6% sequentially. Discretionary cash flow, led by sequential oil volume growth, grew by 16% over the first quarter of this year.

Both EBITDAX and cash flow grew to record levels as realized pricing, after giving effect to our realized crude oil and natural gas hedges, increased by 34% over the year-ago period to $7.58 per Mcfe.

Going forward, we have an outstanding hedge position to protect against price volatility during the second half of this year. We have recently added to our crude oil positions and, coupled with our natural gas hedges; provide us price protection on approximately 90% of our anticipated production in the second half of this year, at a blended average price of approximately $8.60 per Mcfe or $52 per BOE.

3 of 4

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $247.54 -0.07%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs