Earnings Call Slide Deck – March 2, 2017 March 2017
This presentation has been prepared by Goodrich Petroleum Corporation (the “Company”) solely for information purposes and may include "forward- looking statements" within the meaning of the U.S. Private Litigation Securities Reform Act of 1995. The Company, its respective employees, directors, officers or advisors, does not make any representation or warranty as to the accuracy or completeness of the information contained in the presentation materials. The Company shall have no liability for this presentation, information contained herein, or any representations (expressed or implied), whether the communications were oral or written. The statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include, but are not limited to forward-looking statements about acquisitions, divestitures, trades, potential strategic alliances, the availability of capital, the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, hedging activities, capital expenditure levels and other guidance that may be included in this presentation. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to the Company's financial performance and results, availability of sufficient cash flow to execute its business plan, prices and demand for oil, natural gas and natural gas liquids, the ability to replace reserves and efficiently develop current reserves, the ability to access the capital markets and finance operations, including capital expenditures, and other important factors that could cause actual results to differ materially from those projected as described in this presentation and the Company's reports filed with the Securities and Exchange Commission. See "Risk Factors" in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise. March 2017 2
Page Introduction 1 Disclaimer 2 Table of Contents 3 Company Highlights 4 Capitalization Table 5 Core Properties 6 Company Leasehold Position 7 Haynesville Shale Opportunity 8 Haynesville Shale Geologic Characteristics 9 Haynesville Shale Completion Evolution 14 Recent Industry Activity 17 Development Plan – Spacing 21 Economics 22 Why Invest in Goodrich Petroleum 25 March 2017 3
CAP TABLE: (12/31/16) Cash ~ $37 Million Total Net Debt - $21 Million Basic Shares Outstanding – 8.6 Million (11.1 Million with Costless Warrants) TRADING PLATFORM: Current - OTC- QX Market (“GDDP”) Plan – Up-list to NYSE ASSETS: Haynesville, Eagle Ford and TMS CATALYST: New Haynesville Completion Methodology Transformational for the Play and the Company PRELIMINARY 2017 PLANS: $40 - 50 Million Haynesville Capex Program 4 March 2017
( USD in thousands) Cash $37,000 Debt Senior Credit Facility 17,000 New 2L Notes (PIK) 41,000 58,000 Total Debt Total Net Debt $21,000 March 2017 5
HAYNESV ESVILL ILLE E SHALE E - CORE Gros oss (Net) t) Acres: 35,000 (16,000) Prove oved d Reserves (YE'16 - SEC) 281.6 Bcfe Objecti tive ve: Haynesvi ville Shale (Core) HAYNESVILLE / BOSSIER SHALE ANGELINA RIVER TREND (“ART”) Gross (Net) Acres : 13,000 (8,000) Proved Reserves (YE'16 - SEC) 4.2 Bcfe Mississippi Objective: Haynesville & Bossier Shale TUSCALOOSA MARINE SHALE: Texas Gross (Net) Acres: 215,100 (155,700) Proved Reserves ( YE’16 - SEC) 16.8 Bcfe Louisiana Objectives: Tuscaloosa Marine Shale EAGLE LE FORD SHALE: E: Gros oss (Net) t) Acres: 32,400 (14,100) Proved Reserves (YE’16 – SEC) 0 Objecti tive ves: Eagle Ford d Shale, Pearsall Shale & Buda da Lime me 6 March 2017
Greenw enwood- Waskom / North Louisiana (Haynesville) Metcalf/ alf/Lo Long ngwo wood Total Gross/Net Acres: 4,650 0 Net Ac 38,000/15,700 Average WI/NRI: 41%/30% Acreage HBP: 100% 85 total producing wells Approximately 235 potential locations Swan Lake/Tho horn rn CHK Joint Venture on 60% of NLA Core Acreage Lake 750 Net Ac Angelina River Trend (ART) Haynesville and Bossier Shales: Total Gross/Net Acres: 13,000/ 8,000 Average WI/NRI: 61% / 48% HAYNESV ESVILL ILLE E SHALE Total HBP acreage: 4,300 net acres ~24,000 net Ac 5 producing wells 230 potential locations 115 Haynesville locations 115 Bossier locations ART 8,000 0 Net Ac Ac March 2017 7
Key Points The Haynesville Shale is a proven natural gas resource play experiencing a renaissance due to Large natural gas reserve longer laterals and improvements in completion design base on concentrated Over 2,700 wells drilled by industry in North Louisiana with a well-defined core area leasehold position with expected net resource Consistent well results when utilizing similar completion recipes potential of over 1.1 Tcf Recent wells drilled by offset operators utilizing a predominantly slick water design and up to 5,000 lbs (approximately 900 BCF of proppant per foot (an increased proppant concentration of close to 400%) projected to yield more alone in NLA) at 2.5 Bcf/1,000 than 2.5 Bcf per 1,000 feet of lateral, a 100+% improvement in EUR per foot versus short lateral/low feet proppant wells 235 Gross Potential Locations Shared and received technical data with numerous industry participants active in the basin which Average EUR for the 85 wells further enhances our technical knowledge, in-house database and industry best practices drilled to date of ~5.4 Bcf (~1.2 Bcf /1,000’) from short laterals (4,600’) and low Economic Advantages of the Play proppant (~1,100 lbs / foot) Henry Hub pricing less an average of ~ $0.63/Mcf ($0.37/Mcf Operated) at the wellhead, including concentrations transportation expense, provides for high realized price compared to other prolific natural gas basins 2.0 – 2.5 Bcf per 1,000’ of Dry gas production and high rates provide for low per unit operating expenses ($0.05/Mcf initially) lateral expected from long No severance tax until the earlier of Payout or 2 Years lateral / high proppant wells Existing facilities and infrastructure provide for pad drilled wells with low incremental costs and rapid Recent long lateral industry “spud -to- sales” cycle times to bring the wells to production wells have produced 3-4 Bcf in 120 days and expect to Incremental production from offset wells as a result of the fracs offers additional upside produce over 9 Bcf in 1 year Excess throughput capacity in desirable region 8 March 2017
Type Log Goodrich Petroleum, James Cook #1 Caddo Parish, Louisiana Key Points Dark organic rich, brittle mudstone-shale with modest clay (<30%) content The Haynesville Shale is deposited in deep-basin setting with generally south, basin-ward dip at depths ranging from 10,500’ - 14,000 ’ Thick pay interval ranging from 150’ - 400 ’ with an average 250’ (gross) Top HS Porosity Consistent high porosity (~15%) log characteristics throughout the pay section Potential Upper Target 3-D Seismic shows calm depositional environment with no faulting Core Lab consortium (65 wells with whole cores) demonstrate consistent high quality rock across core of the play Over-pressured shale (> 0.9 psi/ft) provides for high production rates and gas recovery factor Future staggered lateral placement in upper and lower targets may allow for Potential Lower higher recovery factor from tighter spacing Target 15% Porosity 9 March 2017
March 2017 10
11 March 2017
GDP March 2017 12
March 2017 13
Evolving completions maximize near-wellbore stimulation Original Design Recent Design Testing (2008 - 2014) (2015 - Current) (Currently) • 4,600‘ Laterals • 4,600 – 10,000’ Laterals • 10,000’ Laterals • • 3,000 lbs/ft Proppant • 1,000 lbs/ft Proppant 5,000+ lbs/ft Proppant • • Slick Water Fluid • Hybrid Fluid Slick Water Fluid • 300- 450’ Frac Intervals • 150- 250’ Frac Intervals • 75- 150’ Frac Intervals • Cluster Spacing 50- 70’ • Cluster Spacing 30- 50’ • Cluster Spacing 10- 20’ March 2017 14
Recommend
More recommend
