Goodrich Petroleum (GDP) Update - April 16
Posted: Fri Apr 16, 2021 2:35 pm
GDP trading at $9.97 today.
Truist Financial fresh report rates it a BUY with a price target of $17.00
Goodrich Petroleum Corporation (GDP, $10.30, Buy) 4-16-2021
- No Surprises Just Cheap Growth & FCF - With one of the simplest stories in the E&P space, GDP is setting itself up to ride a wave of a potential natural gas recovery. We do not anticipate a scenario in which the company deviates from its $75-85mm capital plan in ’21 (1 rig, 1 crew) and we would not be surprised if spending is similar next year, which would likely mean more growth and FCF by which to continue reducing debt. Third party activity in GDP’s zip code appears to be increasing, which could help lead to more potential acreage swaps between GDP and other operators that could drive efficiencies of all. - Neal Dingmann
Truist Financial fresh report rates it a BUY with a price target of $17.00
Goodrich Petroleum Corporation (GDP, $10.30, Buy) 4-16-2021
- No Surprises Just Cheap Growth & FCF - With one of the simplest stories in the E&P space, GDP is setting itself up to ride a wave of a potential natural gas recovery. We do not anticipate a scenario in which the company deviates from its $75-85mm capital plan in ’21 (1 rig, 1 crew) and we would not be surprised if spending is similar next year, which would likely mean more growth and FCF by which to continue reducing debt. Third party activity in GDP’s zip code appears to be increasing, which could help lead to more potential acreage swaps between GDP and other operators that could drive efficiencies of all. - Neal Dingmann