Goodrich Petroleum Corporation
Goodrich Petroleum — Investor Presentation (April 2011)
35 slides from Goodrich Petroleum's investor presentation, April 2011
Slide 1: Management Presentation
Management Presentation April 2011
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation regarding future expectations and plans for future activities may be regarded as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. They are subject to various risks, such as fina
Slide 3: Market Data
Market Data Headquartered: Houston, Texas (NYSE:GDP) ■ Market Data as of April 21, 2011 ■ Price – $21.59 Per Share ■ Shares Of Common Stock Outstanding (Basic) – 35.9 Million ■ Market Capitalization – $ 775 Million ■ Enterprise Value – $ 1,270 Million ■ Enterprise Value / 3P Reserves (all objectives
Slide 4: Capitalization Table (Pro Forma)
Capitalization Table (Pro Forma) ($ in 000s) As of December 31, 2010 Cash & Equivalents $111,050 Current Debt: Senior Credit Facility (1) $0 Convertible Senior Notes due 2026 (2) 0 Long-term Debt: Convertible Senior Notes due 2029 (3) 218,500 Senior Notes due 2019 275,000 Total Debt $493,500 Stockho
Slide 5: Company Profile & Strategy
Company Profile & Strategy ■ Growth oriented low cost E&P company focused on Proved Reserves Growth unconventional resource plays in Louisiana and Texas. (Bcfe) Multiple objectives with long life reserves and repeatability 464 ■ Proven track record for consistently growing reserve base 402 421 (5 yr
Slide 6: FYE 2010 Reserve Overview
FYE 2010 Reserve Overview Proved Reserves by Area 3P Reserves by Area Shelby Trough / ART Eagle Ford Eagle Ford CV - Vertical 2% 1% 7% (1) 1% Cotton Valley CV - Vertical Taylor Sand 18% 15% Shelby Trough / ART North Louisiana 36% Haynesville (Core) Cotton Valley 18% Taylor Sand 30% North Louisiana H
Slide 7: 2011 Drilling Program
2011 Drilling Program % of Area ($ MM) total 2011 Capex Allocation Leasehold Eagle Ford Shale Trend $145 62% Cotton Valley 6% Taylor Sand Haynesville Core (NW La.) $28 12% 10% Shelby Trough Haynesville Shelby Trough / ART $24 10% / ART 10% Cotton Valley Taylor Sand $23 10% North Louisiana Leasehold
Slide 8: Production Volumes and GDP Stock Price
Production Volumes (Average Net Daily Mcfe) $40 120,000 $36.60 106,000 110,000 $35 $32.24 100,000 92,400 $30 90,000 81,600 GDP STOCK PRICE 80,000 $25 MCFE / DAY 66,100 $24.94 70,000 $20 $21.59 60,000 $15.80 43,800 50,000 $15 40,000 $10 30,000 20,000 $5 10,000 $0 0 (1) 2007 2008 2009 2010 2011E Avera
Slide 9: Hedging Summary
Hedging Summary Daily Natural Gas & Crude Oil Hedged Volumes (NYMEX) 2011 2012 Natural Gas Natural Gas Volume Volume (MBtu/d) Floor Ceiling (MBtu/d) Floor Ceiling Collar #1 10,000 $6.00 $7.40 10,000 $6.00 $7.40 Collar #2 30,000 $6.00 $6.98 30,000 $6.00 $6.98 Total Volume & Average Price 40,000 $6.00
Slide 10: Core Properties
Core Properties NORTH LOUISIANA – HAYNESVILLE CORE Gross (Net) Acres: 33,000 (16,000) Proved Reserves (YE’10): 230 Bcfe Proved Reserves % PD: 34% Proved Reserves PV-10: $155mm Probable/Possible Reserves: 892 Bcfe Objective: Haynesville Shale (Core) EAST TEXAS – COTTON VALLEY / HAYNESVILLE Gross (Net
Slide 11: Eagle Ford Shale Trend Overview
Eagle Ford Shale Trend Overview Pay Zones OLMOS ANACACHO TEXAS AUSTIN CHALK TEXAS EAGLE FORD } 90 – 105 feet BUDA 11
Slide 12: Eagle Ford Shale Trend – Oil Window
Eagle Ford Shale Trend – Oil Window La Salle and Frio Counties, Texas ■ Oil resource play with very good matrix porosity, permeability and fracture complexity for a shale play ■ Five Eagle Ford Shale wells (Avg. 675 BOE/day) and two Buda Lime wells (Avg. 520 BOE/day) completed. Two rigs running to d
Slide 13: Eagle Ford Shale Trend
Eagle Ford Shale Trend Goodrich Acreage – 55,000 gross (40,000 net) acres 13
Slide 14: Eagle Ford Shale Activity
Eagle Ford Shale Activity -2000 GDP GDP -4000 Pedro Morales 7H (EFS) Pan Am C 1H (EFS) Completing IP: 250 BOE/day Chesapeake -3000 Traylor North #1H IP: 980 BOE/day El Paso GDP TJ Pearsall #1H Pan Am B 1H (EFS) Completing -5000 Formerly (Frances Shiner B-1) -4000 IP: 667 BOE/day GDP Lancaster C 1H (
Slide 15: Eagle Ford Shale Type Curve
Eagle Ford Shale Type Curve 1000 Normalized Production (BOE/day) 800 600 400 200 0 0 6 12 18 24 30 36 42 48 54 60 Production Month Low TC - 400 MBoe Mid TC - 473 MBoe High TC - 574 MBoe ANNUAL DECLINE RATES: Year 1 Year 2 Year 3 Year 4 Year 5 71% 41% 28% 22% 18% 15
Slide 16: Eagle Ford Shale Well Economics
Eagle Ford Shale Well Economics IRR Sensitivity - $8.0 MM Capex 175% 150% 125% IRR (%) 100% 75% 50% 25% 0% $80.00 / $5.00 $90.00 / $5.00 $100.00 / $5.00 Oil Price ($/BBL) / Gas Price ($/MMBtu) Low TC - 400 Mboe Base TC - 473 Mboe High TC - 573 Mboe Note: 20:1 natural gas to crude oil price conversio
Slide 17: Buda Lime Type Curve
Buda Lime Type Curve 450 400 Normalized Production (Boe/day) 350 300 250 200 150 100 50 0 0 6 12 18 24 30 36 42 48 54 60 Producing Month Low TC - 135 MBoe Mid TC - 265 MBoe High TC - 400 MBoe ANNUAL DECLINE RATES: Year 1 Year 2 Year 3 Year 4 Year 5 73% 40% 27% 21% 16% 17
Slide 18: Buda Lime Well Economics
Buda Lime Well Economics IRR Sensitivity - $3.5 MM Capex 120% 100% 80% IRR (%) 60% 40% 20% 0% $80.00 / $5.00 $90.00 / $5.00 $100.00 / $5.00 Oil Price ($/BBL) / Gas Price ($/MMBtu) Low TC - 135 Mboe Base TC - 265 Mboe High TC - 400 Mboe Note: 20:1 natural gas to crude oil price conversion. NYMEX pric
Slide 19: Haynesville Shale Overview
Haynesville Shale Overview Pay Zones GDP 88,000 Net Acres TAYLOR TAYLOR SAND SAND TEXAS } 100 – 300 feet LOUISIANA TEXAS LOUISIANA 19
Slide 20: Haynesville / Bossier Shale Activity
Haynesville / Bossier Shale Activity GDP – Greenwood–Waskom Field Harrison Co. Core Haynesville horizontal Avg. EUR: 7.2 Bcfe Bossier Ph. Caddo Ph. CHK / GDP wells Avg. EUR: 7.0 Bcfe Panola Co. N. LA. Core DeSoto Ph. GDP – Beckville / Minden Fields Red River Ph. GDP – Bethany-Longstreet Field GDP –
Slide 21: Haynesville Type Curve – North Louisiana Core
Haynesville Type Curve North Louisiana – Core Low (6.5 Bcfe) Base (7.5 Bcfe) High (8.5 Bcfe) 100,000 IP rate (MMcf/d) 14.0 15.5 19.5 IP rate (30 day avg. MMcf/d) 10.0 11.0 15.5 Gross EUR (Bcf) 6.5 7.5 8.5 Pretax IRR 20% 30% 49% F&D ($/Mcfe) $1.87 $1.62 $1.43 PV10 ($MM) $2.0 $3.6 $5.6 Breakeven Price
Slide 22: Haynesville Well Performance
Haynesville Well Performance North Louisiana – Core Bethany Longstreet, Greenwood-Waskom & Metcalf Fields Haynesville Horizontal Well Performance 11,000 100 Well Count 10,000 90 Hay Hz Well Group Average Daily Production (Mcfpd) 9,000 80 6.5 Bcf Type Curve 8,000 70 7,000 Well Count 60 6,000 50 5,000
Slide 23: Haynesville Shale Well Economics
Haynesville Shale Well Economics North Louisiana – Core Haynesville Well Economics: $8.5 MM well cost 150% 125% 100% 75% 50% 25% 0% $4.00 $5.00 $6.00 $7.00 6.5 Bcfe 7.5 Bcfe 8.5 Bcfe Note: NYMEX pricing shown. IRR calculation assumes NYMEX pricing less $0.50/Mcf price differential. Source: Goodrich
Slide 24: Shelby Trough – Haynesville Shale Activity
Shelby Trough Haynesville Shale Activity Haynesville Shale Penetrations GDP – Minden / Beckville GDP Acreage Panola Co. Haynesville Shale Permits Haynesville Rig Activity GDP – Bethany Longstreet DeSoto Ph. GDP – South Henderson Rusk Co. EOG (Pop-Pop GU #1) IP: 19.3 MMcfe/day Shelby Co. EOG (Murray
Slide 25: Shelby Trough – Bossier Shale Activity
Shelby Trough Bossier Shale Activity Haynesville Shale Penetrations GDP – Minden / Beckville GDP Acreage Panola Co. Haynesville Shale Permits Haynesville Rig Activity GDP – Bethany Longstreet GDP (R. Dean #2H) Bossier Shale Horizontal DeSoto Ph. IP: 8.6 MMcfe/day GDP – South Henderson EnCana Bossier
Slide 26: Angelina River Haynesville Type Curves
Angelina River Haynesville Type Curves (Restricted Choke Program) 12,000 10,000 8,000 Mcfd 6,000 4,000 2,000 0 0 6 12 18 24 30 36 42 48 54 60 Production Month Low TC - 8.0 Bcf Mid TC - 10.0 Bcf High TC - 12.0 Bcf ANNUAL DECLINE RATES: Year 1 Year 2 Year 3 Year 4 Year 5 60% 35% 24% 19% 15% 26
Slide 27: Angelina River Haynesville Well Economics
Angelina River Haynesville Well Economics IRR Sensitivity - $12.0 MM Capex 80% 60% 40% 20% 0% $4.00 $5.00 $6.00 $7.00 $8.00 8.0 Bcf 10.0 Bcf 12.0 Bcf Note: NYMEX pricing shown. IRR calculation assumes NYMEX pricing less $0.50/Mcf price differential. Source: Goodrich Petroleum Corporation internal pr
Slide 28: Potential Impact of the Haynesville Shale
Potential Impact of the Haynesville Shale Net Proved Gross Net Per Well Gross Reserve Estimates: Reserves Probable & Probable & Area (Bcfe) Possible Wells(1) Possible Wells(1) 4.5 Bcfe 6.5 Bcfe 8.5 Bcfe Potential Net Impact on GDP Reserves (Bcfe) Bethany 176 266 130 415 600 789 Longstreet Greenwood
Slide 29: Cotton Valley (Taylor Sand)
Cotton Valley (Taylor Sand) Beckville, Minden & South Henderson Fields / Rusk & Panola Counties, Texas Beckville & Minden: Shallow Deep GDP Gross Acres: 45,400 acres 45,200 acres KF WH Carter A2 GU B2H Net Acres: 40,200 acres 37,200 acres IP: 4.0 MMcf/day Proved Reserves (YE’10) Beckville: 129 Bcfe
Slide 30: Cotton Valley Taylor Sand Type Curve
Cotton Valley Taylor Sand Type Curve 12,000 Normalized Production (Mcf/day) 10,000 8,000 6,000 4,000 2,000 0 0 6 12 18 24 30 36 42 48 54 60 Production Month Low TC - 7.5 Bcfe Mid TC - 8.5 Bcfe High TC - 9.5 Bcfe ANNUAL DECLINE RATES: Year 1 Year 2 Year 3 Year 4 Year 5 67% 33% 22% 16% 13% 30
Slide 31: Cotton Valley Taylor Sand Well Economics
Cotton Valley Taylor Sand Well Economics IRR Sensitivity - $7.5 MM Capex 200% 160% IRR (%) 120% 80% 40% 0% $80.00 / $4.00 $90.00 / $5.00 $100.00 / $6.00 Oil Price ($/BBL) / Gas Price ($/MMBtu) Low TC - 7.5 Bcfe Base TC - 8.5 Bcfe High TC - 9.5 Bcfe Note: NYMEX pricing shown. IRR calculation assumes
Slide 32: Drilling Inventory
Drilling Inventory 2011 Capital Program Total Inventory Net Net Proved, 2011 Net Gross Net Probable / Probable, Unrisked YE10 Probable Probable Possible Possible Capital Proved and and Reserve Reserve Gross # Net # Expenditures Reserves Possible Possible Exposure Exposure Area of Wells of Wells (MM)
Slide 33: Estimated Sum of the Parts
Estimated Sum of the Parts Valuation Range Asset Amount (1) Metric ($ in millions) Low High Low High Flowing Production Multiple 100,000 Mcfe/day $8,000 / Mcfe – $12,000 / Mcfe $800 $1,200 Proved Undeveloped Reserves 272 Bcfe $1.50 / Mcfe – $2.00 / Mcfe $408 $544 Shelby Trough Acreage 27,000 Net Acr
Slide 34: Why Invest in Goodrich Petroleum?
Why Invest in Goodrich Petroleum? ■ Quality of reserves and inventory has never been this good ■ Excellent exposure to Eagle Ford Shale oil play and core Haynesville Shale ■ Attractive Margins: ■ Approximately 45% of forecasted natural gas production in 2011 hedged with $6.00/MMBtu floor. 40% of oil
Slide 35: Goodrich Petroleum Corporation
GOODRICH PETROLEUM CORPORATION a5
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