Goodrich Petroleum Corp. (NYSE: GDP) has provided an update on financing and an amendment to its credit facility.
Goodrich has entered into a definitive purchase agreement for the issuance and sale of $100 million aggregate principal amount of 8% senior secured notes due 2018 (the "second lien notes"), together with warrants to purchase up to 4.88 million shares of the company's common stock at an exercise price of $4.66 per share, a 10% premium to yesterday's closing stock price. Goodrich has increased its liquidity and has the ability to issue an additional $75 million aggregate principal amount of the second lien notes in the future.
Goodrich’s first lien credit facility maturity has been extended to February 2017, with the covenants amended to provide additional flexibility and borrowing base re-determined to $200 million, reduced to $150 million upon closing of the sale of the second lien notes.
The company’s adjusted EBITDAX totaled $41.7 million for the quarter, increasing approximately 29% over the prior year period. Discretionary cash flow totaled $31.6 million for the quarter increasing approximately 43% over the prior year period.
Goodrich saw significant cost reductions in the Tuscaloosa Marine Shale (TMS) from an approximate 35% reduction in drilling days, and reduced service costs, resulting in a combined reduction in estimated well costs of approximately 23%.