HOUSTON, Nov. 4, 2021 /PRNewswire/ -- Goodrich Petroleum
Corporation (NYSE American: GDP) (the "Company") today announced
financial results for the third quarter ended September 30, 2021.
QUARTER HIGHLIGHTS
Net loss was $48.0 million
in the quarter, or ($3.52) per basic
and fully diluted share. The Company incurred a non-cash
mark-to-market loss of $64.9 million
in the quarter due to the change in fair value of unsettled
derivatives not designated as hedges as future prices for
natural gas rose during the quarter.
Adjusted net income (net income prior to change in
fair value of unsettled derivatives not designated as hedges) was
$16.9 million, or $1.24 per basic share and $1.10 per fully diluted share for the
quarter.
Operating Income was $31.6
million in the quarter. Net cash provided by
operating activities was $29.9
million in the quarter, which was negatively impacted by a
change in working capital of $2.4
million.
Adjusted EBITDA was $33.2
million in the quarter.
Discretionary Cash Flow was $32.3 million and Capital Expenditures
totaled $27.9 million in the
quarter.
Production averaged approximately 166,000 Mcfe per
day for the quarter, which grew by 7% sequentially over the second
quarter. Production for the quarter was negatively impacted by
downtime on non-operated wells.
Average realized price per unit was $3.85 per Mcfe, or $3.03 per Mcfe including settled hedges, and per
unit operating expense was $1.77
per Mcfe for the quarter, which included non-cash expense of
$0.91 per Mcfe.
Per unit cash operating expense was $0.86 per Mcfe, a 3% sequential decrease from the
second quarter, and total per unit cash expense including cash
interest was $0.92 per Mcfe for the
quarter, broken out as follows:
- Lease operating expense ("LOE") decreased sequentially by 25%
to $0.21 per Mcfe, which included
$0.02 per Mcfe of workover
expense
- Production and other taxes increased 33% sequentially to
$0.08 per Mcfe due to the severance
tax abatement period ending for wells that have reached payout or
two years since first production
- Transportation and processing expense decreased 3% sequentially
to $0.32 per Mcfe
- General and Administrative ("G&A") expense payable in cash
increased by 14% sequentially to $0.25 per Mcfe due to an increase in accrual for
expected payments due to better performance measures than target
under the Company's annual incentive plan and long term cash
incentive plan. G&A including stock based compensation
increased by 17% sequentially to $0.28 per Mcfe; and
- Cash interest expense was $0.06
per Mcfe
Cash Margin was $2.11
per Mcfe (70%), comprised of a net realized price including hedges
of $3.03 per Mcfe less per unit cash
expenses (including interest) detailed above of $0.92 per Mcfe. The Company expects margin
expansion for the rest of this year with anticipated higher
realized prices in the fourth quarter.
Return on Invested Capital ("ROIC"), defined as
trailing twelve month Adjusted EBITDA divided by total assets less
current liabilities, was 76% at quarter-end. Adjusted Return
on Invested Capital as defined as trailing twelve month Adjusted
EBITDA divided by total assets less current liabilities exclusive
of the Company's current derivative liability, was 45% at
quarter-end. The Company expects ROIC to increase through the
end of the year with higher volumes and higher realized prices.
Please see the disclosures and tables at the end of this press
release for discussion of the non-US GAAP measures presented above
and in the discussion below and a reconciliation of such measures
to the most directly comparable US GAAP financial
measure.
RECENT DEVELOPMENTS
FALL REDETERMINATION UNDER SENIOR CREDIT FACILITY:
In conjunction with its fall redetermination under its reserve
based lending facility, the Company and the participating banks
have an upcoming amendment to the credit facility establishing a
new borrowing base of $150 million, a
$30 million increase from its
previous borrowing base.
THE COMPANY HAS POSTED A NEW PRESENTATION ON THE COMPANY'S
WEBSITE WHICH WILL BE REVIEWED ON THE EARNINGS CONFERENCE
CALL. INVESTORS CAN ACCESS THE SLIDES
AT: http://goodrichpetroleumcorp.investorroom.com/events
To access the conference call, domestic participants should dial
as follows:
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PARTICIPANT DIAL IN
(TOLL FREE):
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1-888-317-6003
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PARTICIPANT
INTERNATIONAL DIAL IN:
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1-412-317-6061
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Canada Toll
Free
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1-866-284-3684
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Participant Elite
Entry Number: 0616919
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Participants will
need this Elite Entry number in order to join the conference.
The Company encourages participants to dial in 10-15 minutes early
to join the conference.
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Participants may also
access the live audio webcast of the conference call through the
following web link:
https://www.webcaster4.com/Webcast/Page/937/43340 or by
accessing the webcast through the investor relations section of the
Company's website.
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FINANCIAL RESULTS
NET INCOME/LOSS
Net loss was $48.0 million in the
quarter, or ($3.52) per basic and
fully diluted share versus net loss of $16.4
million, or ($1.30) per basic
and fully diluted share in the prior year period. Adjusted
net income was $16.9 million, or
$1.24 per basic share and
$1.10 per fully diluted share in the
quarter.
CASH FLOW
Net cash provided by operating activities was $29.9 million in the quarter, which was
negatively impacted by a change in working capital of $2.4 million, versus $13.5
million in the prior year period. Adjusted EBITDA was
$33.2 million in the quarter and
discretionary cash flow ("DCF"), defined as net cash provided by
operating activities before changes in working capital, was
$32.3 million in the quarter, versus
Adjusted EBITDA of $12.7 million and
DCF of $11.8 million in the prior
year period.
PRODUCTION
Production totaled approximately 15.3 Bcfe in the quarter, or an
average of approximately 166,000 Mcfe per day (99% natural
gas), versus 11.5 Bcfe, or an average of approximately 125,500
Mcfe per day (98% natural gas), in the prior year
period.
REVENUES
Oil and natural gas revenues were $58.7
million and oil and natural gas revenues adjusted for cash
settled derivatives of $12.5 million
paid was $46.2 million. In the
prior year period, oil and natural gas revenues were $21.5 million and oil and natural gas revenues
adjusted for cash settled derivatives of $1.6 million received was $23.1 million. Average realized price
per unit was $3.85 per Mcfe
($3.77 per Mcf of natural gas and
$70.40 per barrel of oil) in the
quarter, versus $1.86 per Mcfe in the
prior year period ($1.78 per Mcf of
natural gas and $39.63 per barrel of
oil).
OPERATING EXPENSES
Lease operating expense ("LOE") was $3.3
million, or $0.21 per Mcfe, in
the quarter, versus $2.8 million, or
$0.25 per Mcfe, in the prior year
period. LOE for the quarter included $0.3 million, or $0.02 per Mcfe, for workovers, versus
$0.3 million, or $0.03 per Mcfe, in the prior year period. Lease
operating expense for the quarter excluding workovers was
$3.0 million, or $0.19 per Mcfe, versus $2.5 million, or $0.22 per Mcfe in the prior year period.
Production and other taxes were $1.3
million in the quarter, or $0.08 per Mcfe, versus $0.6 million, or $0.05 per Mcfe, in the prior year
period. The increase in taxes for the quarter was due to the
severance tax abatement period ending for wells that have reached
payout or two years since first production.
Transportation and processing expense was $4.8 million, or $0.32 per Mcfe, in the quarter, versus
$4.3 million, or $0.38 per Mcfe, in the prior year period.
Depreciation, depletion and amortization ("DD&A") expense
was $13.4 million, or $0.88 per Mcfe, in the quarter, versus
$10.3 million, or $0.90 per Mcfe, in the prior year period.
General and administrative expense was $4.3 million, or $0.28 per Mcfe, in the quarter, versus
$3.9 million, or $0.34 per Mcfe, in the prior year period.
G&A expense payable in cash was $3.8
million, or $0.25 per Mcfe,
versus $2.9 million or $0.25 per Mcfe, in the prior year
period. The increase in G&A for the quarter was due to an
increase in accrual for expected payments due to better performance
measures than target under the Company's annual incentive plan and
long term cash incentive plan.
OPERATING INCOME/LOSS
Operating income, defined as revenues minus operating expenses,
totaled $31.6 million in the
quarter. Adjusted operating income adjusted for cash settled
derivatives was $19.1 million for the
quarter, which included $12.5 million
paid for cash settled derivatives. In the prior year period,
operating loss totaled $3.6 million
and adjusted operating loss adjusted for cash settled
derivatives was $2.0 million, which
included $1.6 million received for
cash settled derivatives.
INTEREST EXPENSE
Interest expense totaled $2.2
million in the quarter, which included interest payable in
cash of $0.9 million incurred on the
credit facility and non-cash interest of $1.3 million incurred primarily on the Company's
second lien notes, which included $1.1
million paid in-kind interest and $0.2 million amortization of debt discount and
issuance costs. Interest expense totaled $1.7 million in the prior year period, which
included interest payable in cash of $1.0
million incurred on the credit facility and non-cash
interest of $0.7 million incurred
primarily on the Company's second lien notes, which included
$0.5 million paid in-kind interest
and $0.2 million amortization of debt
discount and issuance costs.
CAPITAL EXPENDITURES
Capital expenditures totaled $27.9
million in the quarter, of which a majority was spent on
drilling and completion costs, versus $16.9 million in the
prior year period, of which a majority was also spent on drilling
and completion costs. The Company conducted drilling and
completion operations on 12 gross (4.5 net) wells in the quarter
and added 4 gross (2.2 net) wells to production. The Company
had 8 gross (2.3 net) wells in the drilling or completion
process at the end of the quarter.
BALANCE SHEET
The Company exited the quarter with $5.5
million of cash, $90.4 million
outstanding under the Company's credit facility, and total
principal debt outstanding, including the credit facility and
second lien notes, of $122.9
million.
CRUDE OIL AND NATURAL GAS DERIVATIVES
The Company had a loss of $77.4
million on its derivatives not designated as hedges in the
quarter, which was comprised of a loss of $12.5 million on cash settlements and a
$64.9 million loss representing the
change of the fair value of our open natural gas and oil derivative
contracts. The Company had a loss of $11.1 million on its derivatives not
designated as hedges in the prior year period, which was comprised
of a $12.7 million loss
representing the change of the fair value of our open natural gas
and oil derivative contracts, offset by a gain of $1.6 million on cash settlements.
OTHER INFORMATION
Certain statements in this news release regarding future
expectations and plans for future activities may be regarded as
"forward looking statements" within the meaning of the Securities
Litigation Reform Act. They are subject to various risks, such as
financial market conditions, changes in commodities prices and
costs of drilling and completion, operating hazards, drilling
risks, and the inherent uncertainties in interpreting engineering
data relating to underground accumulations of oil and gas, as well
as other risks discussed in detail in the Company's Annual Report
on Form 10-K for the year ended December 31,
2020 and other subsequent filings with the Securities and
Exchange Commission. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct.
Unless otherwise stated, oil production volumes include
condensate.
NON-US GAAP INFORMATION
In this press release, the Company refers to several non-US GAAP
financial measures, including Adjusted EBITDA, DCF, Return on
Invested Capital ("ROIC"), cash margin, oil and natural gas
revenues adjusted for cash settled derivatives, adjusted net
income, adjusted operating income (loss), G&A expense payable
in cash and interest payable in cash. Management believes Adjusted
EBITDA, DCF and ROIC are good financial indicators of the Company's
performance and ability to internally generate operating funds.
Adjusted EBITDA and adjusted net income should not be considered an
alternative to net income (loss) applicable to common stock, as
defined by US GAAP. DCF should not be considered an alternative to
net cash provided by operating activities, as defined by US GAAP.
Oil and natural gas revenues adjusted for cash settled derivatives
should not be considered an alternative for oil and natural gas
revenues, as defined by US GAAP. Adjusted operating income (loss)
should not be considered an alternative to operating income (loss),
as defined by US GAAP. G&A expense payable in cash should not
be considered an alternative to general and administrative expense,
as defined by US GAAP. Interest payable in cash should not be
considered an alternative to interest expense, as defined by US
GAAP. Management believes that all of these non-US GAAP financial
measures provide useful information to investors because they are
monitored and used by Company management and widely used by
professional research analysts in the valuation and investment
recommendations of companies within the oil and gas exploration and
production industry.
Goodrich Petroleum is an independent oil and natural gas
exploration and production company listed on the NYSE American
under the symbol "GDP".
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GOODRICH PETROLEUM
CORPORATION
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SELECTED INCOME AND
PRODUCTION DATA
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(In thousands, except
per share amounts)
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2021
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|
September 30,
2020
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|
September 30,
2021
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September 30,
2020
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Volumes
|
|
|
|
|
|
|
|
|
|
Natural gas
(MMcf)
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|
15,108
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|
11,346
|
|
40,113
|
|
35,937
|
|
Oil and condensate
(MBbls)
|
|
26
|
|
33
|
|
89
|
|
106
|
|
Mmcfe -
Total
|
|
15,265
|
|
11,543
|
|
40,646
|
|
36,576
|
|
|
|
|
|
|
|
|
|
|
|
Mcfe per
day
|
|
165,925
|
|
125,462
|
|
148,885
|
|
133,487
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Oil and natural gas revenues adjusted for cash settled derivatives
(non-US GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
Oil and natural gas
revenues (US GAAP)
|
|
$
58,733
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|
$
21,463
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|
$
128,708
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|
$
64,917
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|
Net cash received
(paid) for settlement of derivative instruments
|
|
(12,498)
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|
1,597
|
|
(14,515)
|
|
14,905
|
|
Oil and natural gas
revenues adjusted for cash settled derivatives
|
|
$
46,235
|
|
$
23,060
|
|
$
114,193
|
|
$
79,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas
revenues
|
|
$
58,733
|
|
$
21,463
|
|
$
128,708
|
|
$
64,917
|
|
Other
|
|
-
|
|
3
|
|
-
|
|
9
|
|
|
|
$
58,733
|
|
$
21,466
|
|
$
128,708
|
|
$
64,926
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
Lease operating
expense (LOE excluding workovers - $3,016, $2,524, $8,622 and
$8,064, respectively)
|
|
3,277
|
|
2,831
|
|
10,429
|
|
9,384
|
|
Production and other
taxes
|
|
1,291
|
|
591
|
|
2,756
|
|
2,361
|
|
Transportation and
processing
|
|
4,811
|
|
4,336
|
|
13,457
|
|
14,586
|
|
Depreciation,
depletion and amortization
|
|
13,389
|
|
10,341
|
|
35,671
|
|
35,484
|
|
General and
administrative (payable in cash - $3,822, $2,878, $10,126 and
$9,828, respectively)
|
|
4,329
|
|
3,891
|
|
11,302
|
|
13,327
|
|
Impairment of oil and
natural gas properties
|
|
-
|
|
3,040
|
|
-
|
|
17,170
|
|
Other
|
|
4
|
|
(11)
|
|
(183)
|
|
(13)
|
|
Operating income
(loss)
|
|
31,632
|
|
(3,553)
|
|
55,276
|
|
(27,373)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest expense
(payable in cash - $884, $1,001, $2,612 and $3,149,
respectively)
|
|
(2,232)
|
|
(1,733)
|
|
(6,255)
|
|
(5,410)
|
|
Interest income and
other
|
|
-
|
|
5
|
|
-
|
|
147
|
|
Gain (loss) on
commodity derivatives not designated as hedges
|
|
(77,369)
|
|
(11,079)
|
|
(103,111)
|
|
(3,629)
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
(935)
|
|
-
|
|
|
|
(79,601)
|
|
(12,807)
|
|
(110,301)
|
|
(8,892)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(47,969)
|
|
(16,360)
|
|
(55,025)
|
|
(36,265)
|
|
Income tax
expense
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net loss
|
|
$
(47,969)
|
|
$
(16,360)
|
|
$
(55,025)
|
|
$
(36,265)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discretionary cash
flow (see non-US GAAP reconciliation) (1)
|
|
$
32,291
|
|
$
11,790
|
|
$
75,434
|
|
$
41,687
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (see
calculation and non-US GAAP reconciliation) (2)
|
|
$
33,217
|
|
$
12,731
|
|
$
77,885
|
|
$
44,581
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
13,641
|
|
12,618
|
|
13,481
|
|
12,564
|
|
Weighted average
common shares outstanding - diluted (3)
|
|
13,641
|
|
12,618
|
|
13,481
|
|
12,564
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
|
|
|
|
Net loss per share -
basic
|
|
$
(3.52)
|
|
$
(1.30)
|
|
$
(4.08)
|
|
$
(2.89)
|
|
Net loss per share -
diluted
|
|
$
(3.52)
|
|
$
(1.30)
|
|
$
(4.08)
|
|
$
(2.89)
|
|
|
|
|
|
|
|
|
|
|
|
(1) Discretionary
cash flow is defined as net cash provided by operating activities
before changes in operating assets and liabilities. Management
believes that the non-US GAAP measure of discretionary cash flow is
useful as an indicator of an oil and natural gas exploration and
production company's ability to internally fund exploration and
development activities and to service or incur additional debt. The
company has also included this information because changes in
operating assets and liabilities relate to the timing of cash
receipts and disbursements which the company may not control and
may not relate to the period in which the operating activities
occurred. Operating cash flow should not be considered in isolation
or as a substitute for net cash provided by operating activities
prepared in accordance with US GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
(2) Adjusted EBITDA
is defined as earnings before interest expense, income and similar
taxes, DD&A, share based compensation expense and impairment of
oil and natural gas properties. In calculating adjusted EBITDA,
reorganization gains/losses and gains/losses on commodity
derivatives not designated as hedges net of cash received or paid
in settlement of derivative instruments are also excluded. Other
excluded items include interest income and other, adjustments per
our 2019 Senior Credit Facility agreement for operating leases
under ASC Topic 842 and any other extraordinary non-cash
gains/losses.
|
|
|
|
|
|
|
|
|
|
|
|
(3) Fully diluted
shares excludes approximately 2.5 million and 2.4 million
potentially dilutive instruments that were anti-dilutive for the
three months ended September 30, 2021 and 2020, respectively. Fully
diluted shares excludes approximately 2.4 million and 2.2 million
potentially dilutive instruments that were anti-dilutive for the
nine months ended September 30, 2021 and 2020,
respectively.
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|
GOODRICH PETROLEUM
CORPORATION
|
|
Per Unit Sales Prices
and Costs
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price
per unit:
|
|
|
|
|
|
|
|
|
|
Oil (per
Bbl)
|
|
|
|
|
|
|
|
|
|
Including net cash received
from/paid to settle oil derivatives
|
|
$
70.40
|
|
$
49.90
|
|
$
64.25
|
|
$
55.06
|
|
Excluding net cash received
from/paid to settle oil derivatives
|
|
$
70.40
|
|
$
39.63
|
|
$
64.50
|
|
$
42.76
|
|
Natural gas (per
Mcf)
|
|
|
|
|
|
|
|
|
|
Including net cash received
from/paid to settle natural gas derivatives
|
|
$
2.94
|
|
$
1.89
|
|
$
2.70
|
|
$
2.06
|
|
Excluding net cash received
from/paid to settle natural gas derivatives
|
|
$
3.77
|
|
$
1.78
|
|
$
3.07
|
|
$
1.68
|
|
Oil and natural gas
(per Mcfe)
|
|
|
|
|
|
|
|
|
|
Including net cash received
from/paid to settle oil and natural gas derivatives
|
|
$
3.03
|
|
$
2.00
|
|
$
2.81
|
|
$
2.18
|
|
Excluding net cash received
from/paid to settle oil and natural gas derivatives
|
|
$
3.85
|
|
$
1.86
|
|
$
3.17
|
|
$
1.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs Per
Mcfe
|
|
|
|
|
|
|
|
|
|
Lease operating
expense ($0.19, $0.22, $0.22 and $0.22 per Mcfe excluding
workovers, respectively)
|
|
$
0.21
|
|
$
0.25
|
|
$
0.26
|
|
$
0.26
|
|
Production and other
taxes
|
|
$
0.08
|
|
$
0.05
|
|
$
0.07
|
|
$
0.06
|
|
Transportation and
processing
|
|
$
0.32
|
|
$
0.38
|
|
$
0.34
|
|
$
0.41
|
|
Depreciation,
depletion and amortization
|
|
$
0.88
|
|
$
0.90
|
|
$
0.88
|
|
$
0.97
|
|
General and
administrative (payable in cash - $0.25, $0.25, $0.25 and $0.27,
respectively)
|
|
$
0.28
|
|
$
0.34
|
|
$
0.28
|
|
$
0.36
|
|
Impairment of oil and
natural gas properties
|
|
$
-
|
|
$
0.26
|
|
$
-
|
|
$
0.47
|
|
Other
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
|
|
$
1.77
|
|
$
2.17
|
|
$
1.81
|
|
$
2.52
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts on a
per Mcfe basis may not total due to rounding.
|
|
|
|
|
|
|
|
|
|
GOODRICH PETROLEUM
CORPORATION
|
|
Cash Flow Data (In
thousands), unaudited
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
discretionary cash flow (non-US GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities (US GAAP)
|
|
$
29,935
|
|
$
13,512
|
|
$
66,604
|
|
$
44,592
|
|
Net changes in
working capital
|
|
2,356
|
|
(1,722)
|
|
8,830
|
|
(2,905)
|
|
Discretionary cash
flow (1)
|
$
32,291
|
|
$
11,790
|
|
$
75,434
|
|
$
41,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(47,969)
|
|
$
(16,360)
|
|
$
(55,025)
|
|
$
(36,265)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
13,389
|
|
10,341
|
|
35,671
|
|
35,484
|
|
Impairment of oil and
natural gas properties
|
|
-
|
|
3,040
|
|
-
|
|
17,170
|
|
Right of use asset
depreciation
|
|
135
|
|
313
|
|
406
|
|
939
|
|
Loss on derivatives
not designated as hedges
|
|
77,369
|
|
11,079
|
|
103,111
|
|
3,629
|
|
Net cash (paid)
received for settlement of derivative instruments
|
|
(12,498)
|
|
1,597
|
|
(14,515)
|
|
14,905
|
|
Share based
compensation (non-cash)
|
|
518
|
|
1,035
|
|
1,208
|
|
3,564
|
|
Amortization of
finance cost, debt discount, paid in-kind interest and
accretion
|
1,347
|
|
732
|
|
3,643
|
|
2,261
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
935
|
|
-
|
|
Other
|
|
-
|
|
13
|
|
-
|
|
-
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
trade and other, net of allowance
|
|
(485)
|
|
(500)
|
|
(818)
|
|
(583)
|
|
Accrued oil and gas
revenue
|
|
(7,311)
|
|
(44)
|
|
(14,389)
|
|
3,708
|
|
Prepaid expenses and
other
|
|
102
|
|
14
|
|
204
|
|
65
|
|
Accounts
payable
|
|
2,884
|
|
2,219
|
|
4,885
|
|
2,505
|
|
Accrued
liabilities
|
|
2,454
|
|
33
|
|
1,288
|
|
(2,790)
|
|
Net cash
provided by operating activities
|
|
29,935
|
|
13,512
|
|
66,604
|
|
44,592
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(25,045)
|
|
(14,816)
|
|
(71,065)
|
|
(48,012)
|
|
Net cash
used in investing activities
|
|
(25,045)
|
|
(14,816)
|
|
(71,065)
|
|
(48,012)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Principal payments of
bank borrowings
|
|
(6,000)
|
|
(1,000)
|
|
(23,000)
|
|
(1,000)
|
|
Proceeds from bank
borrowings
|
|
6,000
|
|
2,000
|
|
17,000
|
|
4,500
|
|
Proceeds from 2023
Second Lien Notes
|
|
-
|
|
-
|
|
15,000
|
|
-
|
|
Debt issuance
costs
|
|
(140)
|
|
-
|
|
(339)
|
|
-
|
|
Purchase of treasury
stock
|
|
(21)
|
|
(9)
|
|
(49)
|
|
(281)
|
|
Net cash
provided by financing activities
|
|
(161)
|
|
991
|
|
8,612
|
|
3,219
|
|
Increase (decrease)
in cash and cash equivalents
|
|
4,729
|
|
(313)
|
|
4,151
|
|
(201)
|
|
Cash and cash
equivalents, beginning of period
|
|
782
|
|
1,564
|
|
1,360
|
|
1,452
|
|
Cash and cash
equivalents, end of period
|
|
$
5,511
|
|
$
1,251
|
|
$
5,511
|
|
$
1,251
|
|
GOODRICH PETROLEUM
CORPORATION
|
|
Other Information and
Reconciliations (In thousands, except per share amounts),
unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
|
|
|
September 30,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
5,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt,
net
|
|
$
121,749
|
|
|
|
|
|
|
|
Unamortized debt
discount and issuance cost
|
|
1,186
|
|
|
|
|
|
|
|
Total principal
amount of debt
|
|
$
122,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA (non-US GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (US
GAAP)
|
|
$
(47,969)
|
|
$
(16,360)
|
|
$
(55,025)
|
|
$
(36,265)
|
|
Depreciation,
depletion and amortization ("DD&A")
|
|
13,389
|
|
10,341
|
|
35,671
|
|
35,484
|
|
Impairment of oil and
natural gas properties
|
|
-
|
|
3,040
|
|
-
|
|
17,170
|
|
Stock compensation
expense (non-cash)
|
|
517
|
|
1,035
|
|
1,207
|
|
3,564
|
|
Interest
expense
|
|
2,232
|
|
1,733
|
|
6,255
|
|
5,410
|
|
Loss on derivatives
not designated as hedges
|
|
77,369
|
|
11,079
|
|
103,111
|
|
3,629
|
|
Net cash (paid)
received for settlement of derivative instruments
|
|
(12,498)
|
|
1,597
|
|
(14,515)
|
|
14,905
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
935
|
|
-
|
|
Other items
**
|
|
177
|
|
266
|
|
246
|
|
684
|
|
Adjusted EBITDA
(2)
|
|
$
33,217
|
|
$
12,731
|
|
$
77,885
|
|
$
44,581
|
|
|
|
|
|
|
|
|
|
|
|
** Other items
included $0.2 million, $0.3 million, $0.2 million and $0.8 million,
respectively, from the impact of accounting for operating leases
under ASC 842 as well as interest income for the three and nine
months ended September 30, 2021 and 2020.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Return on Invested Capital ("ROIC") (non-US GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the trailing 12
months ended September 30, 2021
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(non-US GAAP, see reconciliation above)
|
|
$
95,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30,
2021
|
|
|
|
|
|
|
|
|
|
Total Assets (US
GAAP)
|
|
$
265,952
|
|
|
|
|
|
|
|
Less: Current
Liabilities (US GAAP)
|
|
(140,019)
|
|
|
|
|
|
|
|
Invested Capital
("IC") (non-US GAAP)
|
|
$
125,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Invested
Capital (ROIC) (Adjusted EBITDA / IC)
|
|
76%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted net income (loss) and adjusted EPS (non-US
GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
Net loss (US
GAAP)
|
|
$
(47,969)
|
|
$
(16,360)
|
|
$
(55,025)
|
|
$
(36,265)
|
|
Change in fair value
of derivatives not designated as hedges
|
|
64,871
|
|
12,676
|
|
88,596
|
|
18,534
|
|
Adjusted net income
(loss)
|
|
$
16,902
|
|
$
(3,684)
|
|
$
33,571
|
|
$
(17,731)
|
|
Interest, discount
and amortization of debt issuance cost for 2023 Second Lien
Notes
|
|
918
|
|
-
|
|
2,467
|
|
-
|
|
Adjusted diluted net
income (loss)
|
|
$
17,820
|
|
$
(3,684)
|
|
$
36,038
|
|
$
(17,731)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
13,641
|
|
12,618
|
|
13,481
|
|
12,564
|
|
Weighted average
common shares outstanding - diluted (4)
|
|
16,132
|
|
12,618
|
|
15,871
|
|
12,564
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per share - basic
|
|
$
1.24
|
|
$
(0.29)
|
|
$
2.49
|
|
$
(1.41)
|
|
Adjusted net income
(loss) per share - diluted
|
|
$
1.10
|
|
$
(0.29)
|
|
$
2.27
|
|
$
(1.41)
|
|
|
|
|
|
|
|
|
|
|
|
(4) Fully diluted
shares includes approximately 2.5 million and 2.4 million
potentially dilutive instruments that were anti-dilutive for the
three and nine months ended September 30, 2021, respectively, for
the net loss per share calculation under US GAAP but became
dilutive for the adjusted diluted net income per share
calculation.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted operating income (loss) (non-US GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
Operating income
(loss) (US GAAP)
|
|
$
31,632
|
|
$
(3,553)
|
|
$
55,276
|
|
$
(27,373)
|
|
Net cash (paid)
received for settlement of derivative instruments
|
|
(12,498)
|
|
1,597
|
|
(14,515)
|
|
14,905
|
|
Adjusted operating
income (loss)
|
|
$
19,134
|
|
$
(1,956)
|
|
$
40,761
|
|
$
(12,468)
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Three Months
Ended
|
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
Change in fair value
of derivatives not designated as hedges
|
|
$
(64,871)
|
|
$
(12,676)
|
|
$
(88,596)
|
|
$
(18,534)
|
|
Net cash (paid)
received for settlement of derivative instruments
|
|
(12,498)
|
|
1,597
|
|
(14,515)
|
|
14,905
|
|
Net loss on
derivatives not designated as hedges
|
|
$
(77,369)
|
|
$
(11,079)
|
|
$
(103,111)
|
|
$
(3,629)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
interest payable in cash (non-US GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Three Months
Ended
|
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
Interest expense (US
GAAP)
|
|
$
2,232
|
|
$
1,733
|
|
$
6,255
|
|
$
5,410
|
|
Amortization of debt
discount and issuance cost and paid-in-kind interest
|
|
(1,348)
|
|
(732)
|
|
(3,643)
|
|
(2,261)
|
|
Interest payable in
cash
|
|
$
884
|
|
$
1,001
|
|
$
2,612
|
|
$
3,149
|
|
GOODRICH PETROLEUM
CORPORATION
|
|
Other Information and
Reconciliations continued (In thousands, except per unit amounts),
unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash margin (non-US GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
Oil and natural gas
revenues
|
|
$
58,733
|
|
$
21,463
|
|
$
128,708
|
|
$
64,917
|
|
Other
|
|
-
|
|
3
|
|
-
|
|
9
|
|
|
|
$
58,733
|
|
$
21,466
|
|
$
128,708
|
|
$
64,926
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
Lease operating
expense (LOE excluding workovers - $3,016, $2,524, $8,622 and
$8,064, respectively)
|
|
3,277
|
|
2,831
|
|
10,429
|
|
9,384
|
|
Production and other
taxes
|
|
1,291
|
|
591
|
|
2,756
|
|
2,361
|
|
Transportation and
processing
|
|
4,811
|
|
4,336
|
|
13,457
|
|
14,586
|
|
Depreciation,
depletion and amortization
|
|
13,389
|
|
10,341
|
|
35,671
|
|
35,484
|
|
General and
administrative (payable in cash - $3,822, $2,878, $10,126 and
$9,828, respectively)
|
|
4,329
|
|
3,891
|
|
11,302
|
|
13,327
|
|
Impairment of oil and
natural gas properties
|
|
-
|
|
3,040
|
|
-
|
|
17,170
|
|
Other
|
|
4
|
|
(11)
|
|
(183)
|
|
(13)
|
|
Operating income
(loss)
|
|
31,632
|
|
(3,553)
|
|
55,276
|
|
(27,373)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest expense
(payable in cash - $884, $1,001, $2,612 and $3,149,
respectively)
|
|
(2,232)
|
|
(1,733)
|
|
(6,255)
|
|
(5,410)
|
|
Interest income and
other
|
|
-
|
|
5
|
|
-
|
|
147
|
|
Gain (loss) on
commodity derivatives not designated as hedges
|
|
(77,369)
|
|
(11,079)
|
|
(103,111)
|
|
(3,629)
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
(935)
|
|
-
|
|
|
|
(79,601)
|
|
(12,807)
|
|
(110,301)
|
|
(8,892)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(47,969)
|
|
(16,360)
|
|
(55,025)
|
|
(36,265)
|
|
Income tax
expense
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net loss
|
|
$
(47,969)
|
|
$
(16,360)
|
|
$
(55,025)
|
|
$
(36,265)
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin, a non-US
GAAP measure
|
|
$
32,150
|
|
$
11,423
|
|
$
74,813
|
|
$
40,514
|
|
Mmcfe produced during
period
|
|
15,265
|
|
11,543
|
|
40,646
|
|
36,576
|
|
Cash margin per
Mcfe
|
|
$
2.11
|
|
$
0.99
|
|
$
1.84
|
|
$
1.11
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
capital expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
Net cash used in
investing activities (US GAAP)
|
|
$
(25,045)
|
|
$
(14,816)
|
|
$
(71,065)
|
|
$
(48,012)
|
|
Cash calls received
(utilized), net
|
|
-
|
|
-
|
|
(615)
|
|
-
|
|
Miscellaneous
capitalized costs, ARO adjustments & sales
|
|
(620)
|
|
564
|
|
(698)
|
|
135
|
|
Cost incurred in
prior period and paid in current period
|
|
6,461
|
|
1,117
|
|
4,138
|
|
6,175
|
|
Capital accrual at
period end
|
|
(8,737)
|
|
(3,808)
|
|
(8,737)
|
|
(3,808)
|
|
Total capital
expenditures
|
|
$
(27,941)
|
|
$
(16,943)
|
|
$
(76,977)
|
|
$
(45,510)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
general & administrative expense payable in cash (non-US
GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
General &
administrative expense (US GAAP)
|
|
$
4,329
|
|
$
3,891
|
|
$
11,302
|
|
$
13,327
|
|
Share based
compensation
|
|
(507)
|
|
(1,013)
|
|
(1,176)
|
|
(3,499)
|
|
General &
administrative expense payable in cash
|
|
$
3,822
|
|
$
2,878
|
|
$
10,126
|
|
$
9,828
|
|
Oil and natural gas
production (Mcfe)
|
|
15,265
|
|
11,543
|
|
40,646
|
|
36,576
|
|
General and
administrative expense payable in cash per Mcfe
|
|
$
0.25
|
|
$
0.25
|
|
$
0.25
|
|
$
0.27
|
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SOURCE Goodrich Petroleum Corporation