More Goodrich Petroleum News

• Capital expenditures totaled $73.4 million in the quarter, of which $68.8 million was spent on drilling and completion costs, $0.8 million on leasehold acquisition and $3.8 million on facilities, capital workovers and other expenditures. For the year, capital expenditures totaled $332.9 million, of which $295.1 million was spent on drilling and completion costs, $23.2 million on leasehold and property acquisitions and $14.6 million on facilities, capital workovers and other expenditures.
• As previously announced, the Company revised its preliminary capital expenditure budget for 2015 to $90 – 110 million, comprised of $80 – 100 million of drilling and completion capital expenditures and approximately $10 million of leasehold and infrastructure expenditures. The Company will monitor capital expenditures on a quarterly basis and maintain flexibility to accelerate capital expenditures with improvement in oil prices and the monetization of certain assets. Oil-directed capital is estimated to be approximately 91 – 93% of the total drilling and completion budget, with the entire oil-directed allocation to the Tuscaloosa Marine Shale, where the Company is seeing significant reductions in well costs, as authority for expenditures ("AFEs" ) have decreased from approximately $13 million per well in 2014 for single well pads to approximately $10 million per well for single well pads and $9.4 million per well for two well pads. The reduction in well costs is being driven by a reduction in drilling days from approximately 40 days to an average of 26 days (21 – 29 days per well) over the last four wells, and approximately 15 – 20% reduction in service costs. More detail is given in the presentation for the earnings release.
• For 2015, the Company has a total of 3,500 Bbls/day swapped at an average LLS price of $96.11 per Bbl.
• Following the sale of the Company's East Texas assets on December 22, 2014, the borrowing base of the Company's first lien credit facility was reduced to $230 million. The Company had $121 million drawn on its first lien credit facility at the end of 2014 resulting in approximately $109 million of available liquidity as the Company entered 2015.
• The Company has entered into an amendment to its first lien credit facility which extends the term until February 2017, amends the debt to EBITDAX covenant to 2.5 times secured debt to EBITDAX and sets the borrowing base at $200 million, which reduces to $150 million upon closing of the notes offering. The Company expects to finance the remainder of its 2015 capital expenditure budget with cash flow from operations and available capacity on its first lien credit facility.
• In addition, the Company currently has seven TMS wells drilled and waiting on completion, with plans to begin completion operations on these wells beginning late 1Q'15 through early 2016, pending better market conditions. Since the end of the fourth quarter, the Company has released two rigs, with one active in the TMS.