Energy Prospectus

$ 23 per share by major insider, right before things were going to get interesting in 2022.

Lousy 7 % premium means existing shareholders get screwed

New company will be able to refinance 2nd lien debt which is costing them 20 % per year

Goodrich Petroleum Corporation (NYSE American: GDP) ("Goodrich" or the "Company") today announced that it has entered into a definitive merger agreement pursuant to which a subsidiary of Paloma Partners VI Holdings, LLC ("Paloma" and such subsidiary, "Merger Sub"), an affiliate of EnCap Energy Capital Fund XI L.P. ("EnCap"), will commence a tender offer to acquire all of Goodrich's outstanding common shares for $23.00 per share in cash.

The offer price in the transaction, which has been unanimously approved by Goodrich's Board of Directors, represents an approximate 7 percent premium to Goodrich's closing price on November 19, 2021, and a 47 percent premium to its year-to-date volume-weighted average price.

Darn! I was hoping to get them to host a luncheon for us in December.

It is possible that another Buyer will top the bid, but not likely. My advice is move the money to SBOW or CRK.

I believe you had a $45 on it, 4 x cash flow

so 23 is about 2 x

I don't own it but I view it is as a screw job to current investors, they get 2 bucks , insiders get the potential of 10 times more

My question is why did existing mgmt except such a lousy premium? Like you say, existing shareholders get hosed.

My valuation of $45/share was based on HH gas averaging $4.25/MMBtu in 2022.

Other analysts:
> Neal Dingmann at Truist Financial rated it a Hold on 10/07/21 with a price target of $26.00
> John M. White at Roth Capital rated it a Buy 10/11/21 with a price target of $28.00

Since GDP is a pure play on Haynesville Shale gas the valuation all depends on where you think natural gas prices are heading. Even if you think US natural gas will only average $3.00 after 2021, my valuation would be over $30/share.

There really is nothing stopping another Buyer from topping Paloma's bid. It does happen. When I was at Hess we announced an acquisition that was topped a few days after we announced it.

Unless you have $350 million available, there isn't much you can do but take the sales proceeds and move them to another grossly undervalued company. CRK, SBOW and CTRA are "gassers" with a lot of upside from where they are trading today.

On the oil side, IPOOF and HMENF look grossly under-valued to me. I know both CEOs and they are not interested in selling their companies at today's share price.

Good advice