Goodrich Petroleum Corporation, Company Intelligence Report

GlobalData
January 31, 2012
108 Pages - SKU: GBDT6800744
License type:
Goodrich Petroleum Corporation, Company Intelligence Report

Summary

Goodrich Petroleum Corporation (Goodrich) is an independent oil and gas company engaged in the exploration, exploitation, development and production of oil and natural gas. Its properties are primarily in the East Texas and Northwest Louisiana area (ETNL), which includes the Haynesville Shale, Cotton Valley, Travis Peak, James and Pettet formations; and South Texas, which includes the Eagle Ford Shale. As of December 31, 2010, the company owned working interests in 382 active oil and gas wells located in 32 fields in seven states. It had estimated proved reserves of approximately 454.2 billion cubic feet (bcf) of natural gas and 1.6 million barrels (MMbbls) of oil and condensate at the end of 2010. During this year, the company drilled and completed 47 gross wells in ETNL, including 36 gross Haynesville Shale wells. In December 2010, the Haynesville Shale accounted for 50.0% of the company’s proved reserves.

Scope
  • Key Highlights: This section provides detailed analysis on the company’s overall oil and gas value chain, new projects, growth opportunities, new ventures, assets performance, hedging strategies, Capex funding, geographical results of oil and gas operations.
  • Goals and Strategies: This section provides the upcoming goals and strategies of the company. The section mainly goals and strategies followed by the company in order to meet its upcoming goals.
  • SWOT: The report’s SWOT section provides the internal strength, weakness, opportunities and threats of company to reflect its strategic positions in the market.
  • Production and Development Overview: This section highlights the company’s crude oil and natural gas production forecast from its legacy and upcoming assets by region and commodity mix for next five years. The report also covers the detailed information and analysis on the company’s producing and development assets.
  • Exploration: This section includes detailed explanation and analysis on the company’s exploration assets resulted due to new discoveries, new drilling and other activities.
  • M&A trends: This section mainly provides information and analysis on the company’s recent assets transactions, joint ventures, acquisition, and divestment activities during the last one year. This section highlights the company’s status as a buyer or seller during the analyzed period.
  • Financial Forecast and Valuation: This section highlights the detailed financial statement forecast for next five years. With the financial statement forecast, this section also provides intrinsic value of the company by using Net Asset Valuation method.
  • Peer Group Analysis: This section compares the company’s performance with its peer group on the basis of share prices, financial ratios, operational and financial parameters and other related parameters.
  • Financial and Operational Metrics: This section covers the company’s historical performance on several financial and operational parameters such as Production and Reserves, Reserves Replacement, Costs Incurred, Acreage, Wells, F&D Costs, Oil and Gas Revenue and Expenses etc.
Reasons to buy

The report will enhance the decision-making capability in a more rapid and time sensitive manner. It will allow you to -
  • Provide detailed analysis to those who are interested in knowing the companies’ existing and future business strategies.
  • Provide in-depth analysis on the companies E&P profiles along with the exploration and M&A updates.
  • Provide valuable insights to those who are tracking oil and gas markets and wants to know the intrinsic value of the companies.
  • Use the analysis for strategy and planning, M&A identifications, and competitor analysis.



Additional Information

Goodrich’s Eagle Ford Shale Exposure Amplifying its Oil Content to Drive Profitability

Goodrich has been a predominantly natural gas centric company with its reserve base and production largely dominated by natural gas. During 2007 - 2010, despite of positive revenue numbers the company has consistently reported negative earning except for 2008. These continuous negative earnings for years coupled with sustained low natural gas prices, made Goodrich shift its focus towards development of crude oil through Eagle Ford shale. Goodrich acquired 55,000 gross and 39,000 net acres in the oil rich Eagle Ford shale in South Texas area during April 2010. The company has total proved reserve of 2.5 MMboe and unrisked resource potential of 145 MMboe in Eagle Ford shale. This exposure into the Eagle Ford shale is in line with Goodrich’s strategy of increasing its oil mix in its reserve and production portfolio. As of December 2010, crude oil accounted for 2.1% of Goodrich’s total proved reserves and 2.7% of the company’s total production. The figure below shows the Eagle Ford shale’s top companies by acreage for 2011.

Goodrich plans to spend around $175m, or 56% of its estimated capex, on leaseholds, drilling, and completion costs associated with the Eagle Ford shale oil play during 2011. Moreover in 2012, the company has allocated the capex of $155m for the development of Eagle Ford shale. The company plans to drill around 29 gross (19 net) wells during 2012, with two drilling rigs dedicated to this shale play. With this, Goodrich expects that its oil volume will grow from 0.15 MMbbls in 2010 to 0.60 MMbbls in 2011and oil contribution towards total production will be around 9%. This increased oil mix along with surging crude oil prices will enable Goodrich to create additional production value and enhance its profitability. The figure below shows the Goodrich’s projected oil production for 2011 - 2015.

The Eagle Ford Shale is one of the emerging oil rich shale in the US. GlobalData expects that future development activities in this shale will increase the oil contribution towards Goodrich upstream portfolio. During 2010 oil’s contribution towards total company’s production remained around 2.7% which is expected to reach 19% by 2015. GlobalData expects that oil production will grow at the CAGR of 36.5% for 2011 - 2015.

Goodrich strategy to shift towards Eagle Ford shale seems to be a right, as it will enable the company to maintain the right commodity mix, required to mitigate the associated price risk. GlobalData expects that with further development in Eagle Ford shale, Goodrich will be able to report positive bottom-line and will be able to grow in long run.