Goodrich Petroleum Announces Fourth Quarter and Year-End 201

|Mar 5|magazine62 min read

HOUSTON, March 5, 2020 /PRNewswire/ -- Goodrich Petroleum Corporation (NYSE American: GDP) (the "Company") today announced fourth quarter and year-end 2019 financial and operating results.

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/presentations

HIGHLIGHTS

  • Adjusted EBITDA was $20.9 million for the quarter and $79.0 million for the year. Discretionary cash flow ("DCF"), defined as net cash provided by operating activities before changes in working capital, was $19.8 million in the quarter and $75.5 million for the year;
  • The Company had a net loss of $0.9 million for the quarter and net income of $13.3 million ($1.09 per basic or $0.96 per diluted share) for the year;
  • Return on Capital Employed ("ROCE"), defined as trailing twelve month earnings before interest and taxes ("EBIT") divided by total assets less current liabilities, was 12.4% for the year;
  • Production for the quarter grew 6.5% sequentially to an average of approximately 145,000 Mcfe per day, versus an average of approximately 136,000 Mcfe per day in the third quarter of 2019. For the year, production grew by 85% over the previous year to approximately 131,000 Mcfe per day;
  • Average realized price received in the quarter was $2.53 per Mcfe, which included cash settled derivatives, and cash operating expense was $0.97 per Mcfe, generating a cash margin of 62%. Average realized price for the year was $2.68 per Mcfe, which included cash settled derivatives, and cash operating expense was $1.04 per Mcfe for the year, generating a cash margin of 61%;
  • Proved reserves grew by 8% over the previous year to 517 Bcfe. SEC PV10 at year-end 2019 was $297 million. Proved developed producing reserves comprised 28% of the total and 54% of PV10;
  • Capital expenditures for the quarter and year were $18.5 million and $98.4 million, respectively; and
  • We conducted drilling or completion operations on 16 wells, adding 3 gross (1.85 net) and 9 gross (7.2 net) wells to production in the quarter and year respectively, all in the core of the Haynesville Shale Trend.

RESERVES

The Company announced that proved oil and natural gas reserves as of December 31, 2019 increased by 8% to 517 billion cubic feet equivalent ("Bcfe") versus 480 Bcfe at year-end 2018. The present value, using a 10% discount rate of the future net cash flows ("PV10"), was $297 million. Proved developed producing PV10 comprised 54% of total PV10. Oil and natural gas prices used to determine proved reserves were $55.69 per barrel of oil and $2.58 per MMBtu of natural gas, pursuant to Securities and Exchange Commission ("SEC") guidelines.

The Company had reserve additions of 218 Bcfe, production of 48 Bcfe and negative revisions of 133 Bcfe primarily from the transfer to probable of proved undeveloped ("PUD") reserves due to the SEC's five year rule. Drilling and completion capital expenditures in 2019 were $97.9 million, for an organic finding and development cost of $0.45 per Mcfe. Proved developed reserve additions had a finding and development cost of $1.09 per Mcfe.

FINANCIAL RESULTS

Cash Flow

Adjusted EBITDA was $20.9 million in the quarter, compared to $21.4 million in the prior year period. Adjusted EBITDA for the year was $79.0 million versus $48.0 million in the prior year.

Discretionary cash flow ("DCF"), defined as net cash provided by operating activities before changes in working capital, was $19.8 million in the quarter, compared to $20.0 million in the prior year period. DCF was $75.5 million for the year, versus $46.3 million in the prior year.

(See accompanying tables at the end of this press release that reconcile Adjusted EBITDA and DCF, each of which are non-US GAAP financial measures, to their most directly comparable US GAAP financial measure.)

Net Income (Loss)

Net loss for the quarter was $0.9 million, or ($0.08) per basic and fully diluted share, versus net income of $8.1 million, or $0.68 per basic and $0.58 per fully diluted share in the prior year period. Net income for the year was $13.3 million, or $1.09 per basic and $0.96 per fully diluted share, versus net income of $1.8 million, or $0.15 per basic and $0.13 per fully diluted share in the prior year.

Production

Production totaled 13.3 Bcfe in the quarter, or an average of approximately 145,000 Mcfe (98% natural gas) per day, versus 9.1 Bcfe, or an average of approximately 99,000 Mcfe (97% natural gas) per day in the prior year period.  Production for the year was 47.7 Bcfe, or an average of approximately 131,000 Mcfe per day (98% natural gas), versus 25.7 Bcfe, or an average of approximately 71,000 Mcfe (95% natural gas) per day in the prior year.

Revenues 

Oil and natural gas revenues adjusted for cash settled derivatives totaled $33.6 million in the quarter, comprised of $30.2 million of realized oil and natural gas revenues and $3.4 million of cash settled derivatives.  The average realized price per unit was $2.27 per Mcfe ($2.14 per Mcf of natural gas and $58.52 per barrel of oil) or $2.53 per Mcfe when including cash settled derivatives, versus $3.72 per Mcfe ($3.50 per Mcf of natural gas and $64.57 per barrel of oil) or $3.45 per Mcfe when including cash settled derivatives in the prior year.

Oil and natural gas revenues adjusted for cash settled derivatives totaled $127.9 million for the year, comprised of $118.3 million of oil and natural gas revenues and $9.6 million of cash settled derivatives.  The average realized price per unit was $2.48 per Mcfe ($2.31 per Mcf of natural gas and $60.77 per barrel of oil) or $2.68 per Mcfe when including cash settled derivatives, versus $3.42 per Mcfe ($2.99 per Mcf of natural gas and $67.93 per barrel of oil), or $3.29 per Mcfe when including cash settled derivatives in the prior year.

(See accompanying table at the end of this press release that reconciles oil and natural gas revenues adjusted for cash settled derivatives, which is a non-US GAAP financial measure, to its most directly comparable US GAAP financial measure.)

Operating Expenses

Lease operating expense ("LOE") was $3.5 million in the quarter, or $0.26 per Mcfe, which included $0.4 million, or $0.03 per Mcfe for workovers. LOE was $2.8 million, or $0.31 per Mcfe, in the prior year period, which included $0.5 million, or $0.05 per Mcfe, for workovers.  For the year, LOE totaled $12.4 million, or $0.26 per Mcfe, which included $1.3 million, or $0.03 per Mcfe, for workovers, versus $10.4 million, or $0.41 per Mcfe in the prior year, which included $1.4 million, or $0.06 per Mcfe, for workovers.       

Production and other taxes were $0.07 million in the quarter, or $0.05 per Mcfe, versus $0.3 million, or $0.04 per Mcfe, in the prior year period.  For the year, production and other taxes totaled $2.6 million, or $0.05 per Mcfe, versus $2.6 million, or $0.10 per Mcfe, in the prior year.     

Transportation and processing expense was $5.1 million in the quarter, or $0.39 per Mcfe, versus $4.3 million, or $0.47 per Mcfe, in the prior year period.  For the year, transportation and processing expense totaled $20.7 million, or $0.43 per Mcfe, versus $11.0 million, or $0.43 per Mcfe, in the prior year. 

Depreciation, depletion and amortization ("DD&A") expense was $14.2 million in the quarter, or $1.06 per Mcfe, versus $9.9 million, or $1.08 per Mcfe, in the prior year period.  For the year, DD&A expense totaled $50.7 million, or $1.06 per Mcfe, versus $26.8 million, or $1.04 per Mcfe, in the prior year.

General and Administrative ("G&A") expense was $5.3 million in the quarter, or $0.40 per Mcfe, versus $5.0 million, or $0.55 per Mcfe, in the prior year period.  G&A expense payable in cash was $3.7 million in the quarter, or $0.28 per Mcfe, versus $3.3 million or $0.36 per Mcfe, in the prior year period.  For the year, G&A expense totaled $20.8 million, or $0.44 per Mcfe, versus $19.7 million, or $0.76 per Mcfe, in the prior year. G&A expense payable in cash for the year was $14.5 million, or $0.30 per Mcfe, versus $13.2 million, or $0.51 per Mcfe, in the prior year.  

G&A expense related to non-cash, stock based compensation totaled $1.6 million in the quarter, or $0.12 per Mcfe, versus $1.7 million, or $0.19 per Mcfe, in the prior year period.  For the year, G&A expense related to non-cash, stock based compensation totaled $6.3 million, or $0.14 per Mcfe, versus $6.4 million, or $0.25 per Mcfe, in the prior year.    

(See accompanying table at the end of this press release that reconciles G&A expense payable in cash, which is a non-US GAAP financial measure, to its most directly comparable US GAAP financial measure.)

Operating Income

Operating income adjusted for cash settled derivatives was $4.8 million for the quarter, which included $3.4 million for cash settled derivatives. Operating income, defined as revenues minus operating expenses, totaled $1.4 million in the quarter.   Operating income adjusted for cash settled derivatives of $9.6 million for the year was $20.7 million.

(See accompanying table at the end of this press release that reconciles operating income adjusted for cash settled derivatives, which is a non-US GAAP financial measure, to its most directly comparable US GAAP financial measure.)

Interest Expense

Interest expense totaled $2.0 million in the quarter, which included interest payable in cash of $1.2 million incurred on the Company's credit facility and non-cash interest of $0.8 million, which included $0.4 million paid-in-kind interest and $0.4 million amortization of debt discount and issuance costs incurred on the Company's second lien notes.  Interest expense was $3.4 million in the prior year period, which included interest payable in cash of $0.4 million incurred on the Company's credit facility and non-cash interest of $3.0 million, which included $1.8 million paid-in-kind interest and $1.2 million amortization of debt discount on the Company's second lien notes.

Interest expense for the year totaled $11.0 million, which included interest payable in cash of $3.9 million incurred on the Company's credit facility and non-cash interest of $7.1 million, which included $4.0 million paid-in-kind interest and $3.1 million amortization of debt discount and issuance costs on the Company's second lien notes. Interest expense was $11.9 million in the prior year, which included interest payable in cash of $1.0 million incurred on the Company's credit facility and non-cash interest of $10.9 million, which included $6.7 million paid-in-kind interest and $4.2 million amortization of debt discount and issuance costs on the Company's second lien notes.

(See accompanying table at the end of this press release that reconciles interest payable in cash, which is a non-US GAAP financial measure, to its most directly comparable US GAAP financial measure.)

Capital Expenditures 

Capital expenditures totaled $18.5 million in the quarter, of which $18.3 million was spent on drilling and completion costs and $0.2 million on asset retirement obligations and other expenditures.  For the year, capital expenditures totaled $98.4 million, of which $97.9 million was spent on drilling and completion costs and $0.5 million for asset retirement obligations and other expenditures. The Company's Board of Directors will review the Company's preliminary capital expenditure budget for 2020 quarterly and adjust, if necessary, based on commodity prices and the goal of free cash flow generation from moderate growth in volumes and a further reduction in per unit costs.

Balance Sheet 

The Company exited the year with $1.5 million of cash, $92.9 million outstanding under the Company's senior credit facility and total principal debt outstanding, including the senior credit facility and the second lien notes, of $105.9 million.   

Crude Oil and Natural Gas Derivatives

The Company had a loss of $0.4 million on its derivatives not designated as hedges in the quarter, which was comprised of a $3.4 million gain on cash derivative settlements and a $3.8 million loss from the change in fair value of our natural gas and oil derivative contracts. The Company had a loss of $0.6 million on its derivatives not designated as hedges in the prior year period, comprised of a $2.5 million realized loss on derivative settlements and a $1.9 million gain from the change in fair value of our natural gas and oil derivative contracts.

For the year ended December 31, 2019, the Company had a gain of $15.0 million on its derivatives not designated as hedges, which was comprised of a gain of $9.6 million on cash derivative settlements  and a $5.4 million gain from the change in fair value of our natural gas and oil derivative contracts versus a loss of $4.0 million during the prior year, representing a $3.2 million realized loss on derivative settlements and a $0.8 million loss from the change in fair value of our natural gas and oil derivative contracts.

OTHER INFORMATION

In this press release, the Company refers to several non-US GAAP financial measures, including Adjusted EBITDA, DCF, Return on Capital Employed ("ROCE"), operating income adjusted for cash settled derivatives, oil and natural gas revenues adjusted for cash settled derivatives and G&A expense payable in cash. Management believes Adjusted EBITDA, DCF and ROCE are good financial indicators of the Company's performance and ability to internally generate operating funds. DCF should not be considered an alternative to net cash provided by operating activities, as defined by US GAAP. Adjusted EBITDA should not be considered an alternative to net income (loss) applicable to common stock, as defined by US GAAP. Operating income adjusted for cash settled derivatives should not be considered an alternative for operating income, 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. G&A payable in cash should not be considered an alternative to general and administrative 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.

Unless otherwise stated, oil production volumes include condensate.

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, 2019 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.

Goodrich Petroleum is an independent oil and natural gas exploration and production company listed on the NYSE American under the symbol "GDP".

 

GOODRICH PETROLEUM CORPORATION

SELECTED INCOME AND PRODUCTION DATA

(In thousands, except per share amounts)














Three Months Ended


Three Months Ended


Year Ended


Year Ended




December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018

Volumes










Natural gas (MMcf)


13,089


8,843


46,712


24,444


Oil and condensate (MBbls)


37


48


171


217


Mmcfe - Total


13,313


9,129


47,737


25,746












Mcfe per day


144,704


99,227


130,787


70,537





















   Reconciliation of Oil and natural gas revenues adjusted for cash settled derivatives (non-US GAAP)















Three Months Ended


Three Months Ended


Year Ended


Year Ended




December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018

Oil and natural gas revenues (US GAAP)


$                  30,160


$                  33,985


$                118,353


$                    87,943

Net cash received in (paid for) settlement of derivative instruments


3,425


(2,499)


9,560


(3,236)

Oil and natural gas revenues adjusted for cash settled derivatives


$                    33,585


$                    31,486


$                  127,913


$                     84,707











Oil and natural gas revenues


$                    30,160


$                    33,985


$                  118,353


$                     87,943

Other


1


(78)


(3)


53




$                    30,161


$                    33,907


$                  118,350


$                     87,996











Operating Expenses










Lease operating expense (LOE excluding workovers - $3,109, $2,368, $11,087, $9,027, respectively)


3,469


2,827


12,371


10,446


Production and other taxes


695


337


2,573


2,605


Transportation and processing


5,141


4,304


20,703


11,046


Depreciation, depletion and amortization


14,172


9,875


50,722


26,809


General and administrative (payable in cash - $3,724, $3,269, $14,473, $13,220, respectively)


5,333


5,020


20,775


19,663


Other


(73)


(98)


106


7

Operating income


1,424


11,642


11,100


17,420











Other income (expense)










Interest expense (payable in cash - $1,208, $432, $3,902, $961, respectively)


(1,965)


(3,434)


(11,001)


(11,944)


Interest income (expense) and other


1


398


25


508


Loss (gain) on commodity derivatives not designated as hedges


(387)


(594)


15,010


(3,986)


Loss on early extinguishment of debt


-


-


(1,846)


-




(2,351)


(3,630)


2,188


(15,422)











Reorganization loss


-


-


-


(305)











Income (loss) before income taxes


(927)


8,012


13,288


1,693

Income tax benefit


-


57


-


57

Net income (loss)


$                        (927)


$                      8,069


$                     13,288


$                       1,750
































Discretionary cash flow (see non-US GAAP reconciliation) (1)


$                    19,820


$                    19,975


$                     75,482


$                     46,272












Adjusted EBITDA (see calculation and non-US GAAP reconciliation) (2)


$                    20,948


$                    21,352


$                     78,953


$                     47,950











Weighted average common shares outstanding - basic


12,307


11,872


12,233


11,622

Weighted average common shares outstanding - diluted (3)


12,307


14,005


13,895


13,655











Income (loss) per share










Net income (loss) - basic


$                       (0.08)


$                         0.68


$                         1.09


$                         0.15


Net income (loss) - diluted


$                       (0.08)


$                         0.58


$                         0.96


$                         0.13











 











(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 842 and any other extraordinary non-cash gains/losses.











(3) Fully diluted shares excludes approximately 2.1 million and 0.6 million potentially dilutive instruments that were anti-dilutive for the three months and year ended December 31, 2019, respectively, and 1.9 million potentially dilutive instruments that were anti-dilutive for the three months and year ended December 31, 2018. 

































GOODRICH PETROLEUM CORPORATION

Per Unit Sales Prices and Costs (Unaudited)














Three Months Ended


Three Months Ended


Year Ended


Year Ended




December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018











Average sales price per unit:










Oil (per Bbl)










     Including net cash received from/paid to settle oil derivatives 


$                       54.15


$                       59.32


$                       56.78


$                       59.27


     Excluding net cash received from/paid to settle oil derivatives


$                       58.52


$                       64.57


$                       60.77


$                       67.93


Natural gas (per Mcf)










     Including net cash received from/paid to settle natural gas derivatives


$                         2.41


$                         3.24


$                         2.53


$                         2.94


     Excluding net cash received from/paid to settle natural gas derivatives


$                         2.14


$                         3.50


$                         2.31


$                         2.99


Oil and natural gas (per Mcfe)










     Including net cash received from/paid to settle oil and natural gas derivatives


$                         2.53


$                         3.45


$                         2.68


$                         3.29


     Excluding net cash received from/paid to settle oil and natural gas derivatives


$                         2.27


$                         3.72


$                         2.48


$                         3.42





















Costs Per Mcfe










Lease operating expense ($0.23, $0.26, $0.23 and $0.35 per Mcfe excluding workovers, respectively)


$                         0.26


$                         0.31


$                         0.26


$                         0.41


Production and other taxes


$                         0.05


$                         0.04


$                         0.05


$                         0.10


Transportation and processing


$                         0.39


$                         0.47


$                         0.43


$                         0.43


Depreciation, depletion and amortization


$                         1.06


$                         1.08


$                         1.06


$                         1.04


General and administrative (payable in cash - $0.28, $0.36, $0.30, and $0.51, respectively)


$                         0.40


$                         0.55


$                         0.44


$                         0.76


Other


$                        (0.01)


$                        (0.01)


$                               -


$                               -




$                         2.16


$                         2.44


$                         2.25


$                         2.74




 . 







Note: Amounts on a per Mcfe basis may not total due to rounding.





 

 










GOODRICH PETROLEUM CORPORATION

Cash Flow Data (In thousands)



















Reconciliation of discretionary cash flow and net cash provided by operating activities (non-US GAAP)












Three Months Ended


Three Months Ended


Year Ended


Year Ended


December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018









Net cash provided by operating activities (US GAAP)


$                      22,224


$                      12,451


$                      79,071


$                      49,186

Net changes in working capital


2,404


(7,524)


3,589


2,914

Discretionary cash flow (1)

$                      19,820


$                      19,975


$                      75,482


$                      46,272






























Three Months Ended


Three Months Ended


Year Ended


Year Ended



December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018

CASH FLOWS FROM OPERATING ACTIVITIES:









Net income (loss)


$                          (927)


$                         8,069


$                      13,288


$                         1,750

Adjustments to reconcile net income (loss) to net cash provided by operating activities









Depletion, depreciation and amortization


14,172


9,875


50,722


26,809

Right of use asset depreciation


313


-


1,252


-

Deferred income taxes


-


(57)


-


(57)

(Gain) loss on derivatives not designated as hedges


387


594


(15,010)


3,986

Net cash received (paid) for settlement of derivative instruments


3,425


(2,499)


9,560


(3,236)

Share based compensation (non-cash) 


1,635


1,781


6,400


6,545

Amortization of finance cost, debt discount, paid in-kind interest and accretion

757


3,002


7,097


10,983

Loss on early extinguishment of debt


-


-


1,846


-

Loss (gain) from material transfers & inventory write-downs


58


(9)


327


(32)

Reorganization items (non-cash)


-


(781)


-


(476)

Change in assets and liabilities:









Accounts receivable, trade and other, net of allowance


(201)


370


6


835

Accrued oil and gas revenue


(1,443)


(5,209)


3,119


(9,506)

Prepaid expenses and other


(157)


(18)


35


(249)

Inventory


(45)


-


(45)


-

Accounts payable


3,158


(4,434)


614


8,530

Accrued liabilities


1,092


1,767


(140)


3,304

   Net cash provided by operating activities


22,224


12,451


79,071


49,186

CASH FLOWS FROM INVESTING ACTIVITIES:









Capital expenditures


(25,102)


(19,983)


(99,301)


(105,088)

Proceeds from sale of assets


-


(81)


1,334


26,839

   Net cash used in investing activities


(25,102)


(20,064)


(97,967)


(78,249)

CASH FLOWS FROM FINANCING ACTIVITIES:









Principal payments of bank borrowings


-


-


(49,500)


(16,723)

Proceeds from bank borrowings


5,000


12,000


115,400


27,000

Repayments of Convertible Second Lien Notes


-


-


(56,728)


-

Proceeds from New 2L Notes


-




12,000



Issuance cost, net


(279)


1


(2,795)


(49)

Purchase of treasury stock and other


(1,551)


(2,251)


(2,097)


(3,089)

   Net cash provided by financing activities


3,170


9,750


16,280


7,139

Net increase (decrease) in cash and cash equivalents


292


2,137


(2,616)


(21,924)

Cash and cash equivalents, beginning of period


1,160


1,931


4,068


25,992

Cash and cash equivalents, end of period


$                         1,452


$                         4,068


$                         1,452


$                         4,068

 

 











GOODRICH PETROLEUM CORPORATION

Other Information and Reconciliations (In thousands)




















Supplemental Balance Sheet Data (unaudited)





















As of










December 31, 2019


















Cash and cash equivalents


$                       1,452


















Long-term debt, net


$                   104,435








Unamortized debt discount and issuance cost


1,434








Total principal amount of debt


$                   105,869



























Reconciliation of Net income (loss) to Adjusted EBITDA (non-US GAAP)























Three Months Ended


Three Months Ended


Year Ended


Year Ended




December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018












Net income (loss) (US GAAP)


$                         (927)


$                       8,069


$                     13,288


$                       1,750


Depreciation, depletion and amortization ("DD&A")


14,172


9,875


50,722


26,809


Income tax benefit


-


(57)


-


(57)


Stock compensation expense (non-cash)


1,635


1,782


6,400


6,545


Interest expense


1,965


3,434


11,001


11,944


Loss (gain) on derivatives not designated as hedges


387


594


(15,010)


3,986


Net cash received in (paid for) settlement of derivative instruments


3,425


(2,499)


9,560


(3,236)


Loss on early extinguishment of debt


-


-


1,846


-


Other excluded items **


291


154


1,146


209


     Adjusted EBITDA (2)


$                     20,948


$                     21,352


$                     78,953


$                     47,950












**  Other items include $0.3 million, zero, $1.2 million and zero, respectively, from the impact of accounting for operating leases under ASC 842 as well as interest income, reorganization items and other non-recurring income and expense.





















Reconciliation of Return on Capital Employed ("ROCE") (non-US GAAP)













For the trailing 12 months ended December 31, 2019










Net income (US GAAP)


$                     13,288








Add: Interest expense


11,001








Earnings before Interest and Income Taxes ("EBIT") (non-US GAAP)


$                     24,289


















As of December 31, 2019










Total Assets (US GAAP)


$                  239,318








Less: Current Liabilities (US GAAP)


(42,963)








Capital Employed ("CE") (non-US GAAP)


$                  196,355


















Return on Capital Employed (ROCE) (EBIT / CE) 


12.4%



























Derivative Activity






















Three Months Ended


Three Months Ended


Year Ended


Year Ended




December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018


Change in fair value of derivatives not designated as hedges


$                     (3,812)


$                       1,905


$                       5,450


$                         (750)


Net cash received in (paid for) settlement of derivative instruments


3,425


(2,499)


9,560


(3,236)


Net gain (loss) on derivatives not designated as hedges


$                         (387)


$                         (594)


$                     15,010


$                     (3,986)





















Reconciliation of interest payable in cash to interest expense



























Three Months Ended


Three Months Ended


Year Ended


Year Ended




December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018












Interest expense ( US GAAP)


$                       1,965


$                       3,434


$                     11,001


$                     11,944


Amortization of debt discount and issuance cost and paid-in-kind interest


(757)


(3,002)


(7,099)


(10,983)


Interest payable in cash


$                       1,208


$                          432


$                       3,902


$                          961











 

 











GOODRICH PETROLEUM CORPORATION

Other Information and Reconciliations continued (In thousands, except per unit amounts)





















Reconciliation of capital expenditures (unaudited)






















Three Months Ended


Three Months Ended


Year Ended


Year Ended



December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018

Net cash used in investing activities (US GAAP)


$                   (25,102)


$                   (20,064)


$                   (97,967)


$                   (78,249)

Cash calls utilized


-


-


-


(1,193)

Inventory utilized


-


(237)


-


(1,957)

Cash (proceeds) payments related to sale of assets


-


81


(1,334)


(26,839)

Miscellaneous capitalized costs & ARO adjustments


(318)


(319)


(1,020)


(1,097)

Cost incurred in prior period and paid in current period


13,138


12,038


8,086


10,511

Capital accrual at period end


(6,175)


(8,086)


(6,175)


(8,086)

Total capital expenditures


$                   (18,457)


$                   (16,587)


$                   (98,410)


$                 (106,910)





















Reconciliation of general & administrative expense payable in cash to general and administrative expense (non-US GAAP)















Three Months Ended


Three Months Ended


Year Ended


Year Ended




December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018

General & administrative expense (US GAAP)


$                       5,333


$                       5,020


$                     20,775


$                     19,663

Share based compensation


(1,609)


(1,751)


(6,302)


(6,443)

General & administrative expense payable in cash


$                       3,724


$                       3,269


$                     14,473


$                     13,220


Oil and natural gas production (Mcfe)


13,313


9,129


47,737


25,746


General and administrative expense payable in cash per Mcfe


$                      0.28


$                      0.36


$                      0.30


$                      0.51





















   Reconciliation of Operating income adjusted for cash settled derivatives (non-US GAAP)















Three Months Ended


Three Months Ended


Year Ended


Year Ended




December 31, 2019


December 31, 2018


December 31, 2019


December 31, 2018

Operating income (US GAAP)


$                       1,424


$                     11,642


$                     11,100


$                     17,420

Net cash received in (paid for) settlement of derivative instruments


3,425


(2,499)


9,560


(3,236)

Operating income adjusted for cash settled derivatives


$                       4,849


$                       9,143


$                     20,660


$                     14,184





















   Reconciliation of organic finding and development cost per Mcfe (unaudited)

















Year Ended










December 31, 2019







Drilling and completions capital expenditures


$                  97,954







Proved reserves additions (Mmcfe)


218,016







Organic finding and development cost per Mcfe


$                      0.45



























   Reconciliation of finding and development cost per Mcfe (unaudited)

















Year Ended










December 31, 2019







Capital expenditures for wells brought online


$               100,144







Proved developed reserves additions (Mmcfe)


92,271







Finding and development cost per Mcfe


$                      1.09







 

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SOURCE Goodrich Petroleum Corporation