GDP

[Fraser921]

I like the company but hate the 3rd lien debt 13.5 % interest and if you adjust for the conversion factor its costing 20 %

They keep paying in kind. Use the bank line to pay if off and save 4 m year 30 cents per share. Make me wonder if the CFO can influence the boss with common sense.

They will have a great q2 with new wells coming on line

[dan_s]

It has been difficult (if not impossible) for the small-caps to raise any capital. Yes, the debt is expensive and they should focus on getting it paid off.

During quarterly earnings periods my primary focus is on the Sweet 16 companies as they are the "core holdings" for most of our members. I will take a quick look at GDP this morning.

[Fraser921]

I took a closer look this am. Gdp has a negative working cap that eats into the available revolver. They just completed 3 prolific wells and if prices hold up, they will be in better position to pay them off next year

Since things are getting better, maybe there could be an opportunity here.

[dan_s]

If ngas prices firm up over $3.00 in 2H 2021, which I expect to happen, GDP should be a double for us.

They have some VERY GOOD drilling inventory in the Haynesville. At $3 gas, an "average" Haynesville well pays out in 6 to 8 months.

Go to the EPG website home page and watch the webinar we recorded with the CEO of Goodrich on 3-12-2021.