NEW YORK (TheStreet) -- Shares of Goodrich Petroleum (GDP) were falling 10.2% to $3.67 Wednesday after the oil and gas company announced it will explore the sale of its Eagle Ford Shale asset and announced its preliminary capital expenditure budget for 2015.
The company's board said it authorized management to explore strategic alternatives for all or a part of the Eagle Ford Shale asset in the first half of 2015. Goodrich Petroleum said selling the asset would "significantly enhance the company's flexibility to further expand its development activities under better market conditions."
Goodrich Petroleum announced a preliminary capital expenditure budget of $150 million to $200 million for 2015. The company expects oil production of 6,100 to 6,700 barrels a day for the year, which would represent a 30% to 42% year over year growth.
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TheStreet Ratings team rates GOODRICH PETROLEUM CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOODRICH PETROLEUM CORP (GDP) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."