Goodrich closes East Texas asset sale

Goodrich Petroleum Corp. (NYSE: GDP) has closed on the previously announced divestiture of certain non-core East Texas Cotton Valley assets. The total consideration paid for the assets was $61 million, subject to customary adjustments.

Recently, the company set its preliminary capital expenditure budget for 2015 of $150 – $200 million. Oil-directed capital is estimated to be in excess of 95% of the total, with the entire oil-directed allocation to the Tuscaloosa Marine Shale.

Oil production volumes are expected to average 6,100 – 6,700 barrels per day for the year, which represents 30 – 42% year-over-year growth. Natural gas volumes are expected to decrease by 15 – 20% year-over-year when factoring in the sale of the aforementioned East Texas asset sale.

The company entered the fourth quarter with pro forma liquidity of $134.2 million under its $250 million borrowing base. Upon closing of the sale of its East Texas property, the borrowing base was reduced by $20 million. Goodrich Petroleum expects a new borrowing base under its senior credit facility early in 2015, which will include reserve additions from development activities during the second half of 2014. 

In a statement, the company said that management has been authorized to explore strategic alternatives for all or a portion of the company's Eagle Ford shale asset in the first half of 2015.  

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