All CapEx in 2018 and 2019 focused on Haynesville
Goodrich Petroleum Corporation (ticker: GDP) had a net loss of $5.3 million in the first quarter of 2018, or $(0.47) per share. Capital expenditures totaled $21 million in the quarter, of which $20.6 million was spent on D&C and $0.4 million on other expenditures, Goodrich said. All of Q1’s total capital expenditures were spent in the Haynesville Shale.
The company anticipates capital expenditures of approximately $30 million in the second quarter and Goodrich reaffirmed its full year preliminary capital budget of $85-95 million. Preliminary capital expenditure plans for 2019 also remain unchanged at a range of $125-$150 million, and will be focused on the Haynesville Shale.
Production
Production totaled approximately 3.3 Bcfe in the quarter, or an average of approximately 37,000 Mcfe/d. According to Goodrich, natural gas production for the quarter was positively impacted by three operated Haynesville Shale wells completed late in the first quarter. However, production was negatively impacted by shut-ins due to offset fracs of approximately 4,300 Mcfe/d for the quarter, as well as frac delays.
The company is currently running one rig, which is drilling the Wurtsbaugh 35 No. 1 well (72% WI) in the Bethany-Longstreet field. According to Goodrich, the well will be an earn-in well under a farmout agreement, and should have a 4,600-foot lateral with a frac date scheduled for June.
A second rig is expected to begin operations in late June to drill the Harris-Dickson 14-23 3H well (95% WI), which is planned as an approximate 7,000-foot lateral to re-drill the remainder of the lateral originally planned for the Cason-Dickson 14-23 2H well.
Production for the second quarter to date has averaged 47,000 Mcfe/d (92% natural gas). This figure is prior to production additions from the Cason-Dickson wells, which are expected to increase production to ~70,000 Mcfe/d.
Due to completion delays, Goodrich said it is revising full year production guidance to an average of 65,000-75,000 Mcfe/d, but maintaining its 2018 exit rate of 100,000 Mcfe/d.
The company is also raising its 2019 guidance to a growth of 100%-120% over the midpoint of 2018 guidance.
