EXHIBIT 99.1
GOODRICH PETROLEUM CORPORATION
ANNOUNCES FIRST QUARTER 2003 RESULTS
Houston, Texas/Shreveport, Louisiana - May 9, 2003. Goodrich Petroleum
Corporation today announced financial and operating results for the first
quarter ended March 31, 2003, and also provided an operational update on its
current and recent drilling activities.
REVENUES. Total revenues for the three months ended March 31, 2003 amounted to
$7,078,000 versus $4,700,000 for the three months ended March 31, 2002, with the
increase due primarily to higher commodity prices. The Company received $4.21
per Mcf of gas and $29.70 per barrel of oil in the first quarter of 2003 versus
$2.69 per Mcf of gas and $20.38 per barrel of oil in the first quarter of 2002.
NET INCOME. In the three months ended March 31, 2003, the Company reported net
income, before cumulative effect of change in accounting principle, of $562,000
($.03 per share) compared to net income of $1,262,000 ($.07 per share) in the
prior year period. Due to the adoption of a new accounting standard for asset
retirement obligations, the Company recorded a cumulative effect of change in
accounting principle amounting to $205,000 ($.01 per share) in the first quarter
of 2003 reducing net income, before preferred stock dividends, to $357,000 ($.02
per share). After giving effect to preferred stock dividends of $158,000, net
income applicable to common stock was $198,000 ($.01 per share) in the first
quarter of 2003 compared to $1,107,000 ($.06 per share) in the prior year
period.
Net income in the first quarter of 2003 was negatively impacted by the Company
recording non-cash charges to general and administrative expense of $403,000
related to the issuance of 125,157 shares of common stock in lieu of cancelled
stock options and $27,000 related to the initial vesting of employee stock
awards of 150,000 shares of restricted common stock. Net income in the first
quarter of 2002 was positively impacted by non-operating gains on sales of oil
and gas properties of $2,837,000, primarily resulting from the sale of a 30%
interest in the Company's Burrwood and West Delta 83 fields in March 2002 for
net proceeds of $12 million.
CASH FLOW. Net cash flow from operations, before changes in working capital, was
$3,099,000 in the first quarter of 2003 compared to $898,000 in the first
quarter of 2002. Net changes in current assets and current liabilities resulted
in a $2,471,000 decrease in working capital in the three months ended March 31,
2003 compared to a $672,000 increase in working capital in the three months
ended March 31, 2002 (see accompanying table for a reconciliation of net cash
flow from operations before changes in working capital, a non-GAAP measure, to
net cash provided by operating activities).
Net cash used in investing activities was $3,952,000 in the three months ended
March 31, 2003 compared to net cash provided by investing activities of
$11,067,000 in the three months ended March 31, 2002. In the first quarter of
2003, capital expenditures totaled $4,219,000 as the Company participated in the
drilling of four new wells in its Lafitte field (three of which were
successfully completed). In the same period, the Company sold its entire
interest in the South Drew field and the proceeds from the sale were $267,000.
In the first quarter of 2002, total capital expenditures were $1,748,000, which
were more than offset by proceeds from property sales of $12,815,000, primarily
due to the sale of a 30% interest in the Company's Burrwood and West Delta
fields.
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Net cash provided by financing activities was $1,242,000 in the three months
ended March 31, 2003 compared to net cash used in financing activities of
$12,243,000 in the three months ended March 31, 2002. In the first quarter of
2003, net borrowings under the Company's senior credit facility provided cash of
$1,500,000 to fund capital expenditures, while preferred stock dividends and
production payments required cash of $258,000. In the first quarter of 2002, net
repayments under the Company's senior credit facility reduced cash by
$12,000,000, while preferred stock dividends and production payments required
additional cash of $243,000. The cash resources for the net debt repayments in
the first quarter of 2002 were provided by the sale of a 30% interest in the
Company's Burrwood and West Delta fields.
For the full year 2003, the Company has preliminarily established a capital
expenditure budget totaling approximately $20 million, which will be primarily
directed toward the drilling of up to fifteen gross wells. The Company expects
to finance its capital expenditures out of operating cash flow and borrowing
capacity under its senior credit facility. As of March 31, 2003, borrowings
outstanding under the credit facility were $20,000,000 against a borrowing base
of $23,000,000. A redetermination of the borrowing base is pending an evaluation
by the Company's lender of reserve information on three new oil and gas wells
completed in the first quarter of 2003.
PRODUCTION. Production for the quarter ended March 31, 2003 was an average daily
rate of 16,378 Mcfe compared to an average daily rate of 17,041 Mcfe for the
quarter ending March 31, 2002, and up from an average daily rate of 14,441 Mcfe
for the quarter ending December 31, 2002. Natural gas production volumes
increased in the first quarter of 2003 to 744,410 Mcf from the first quarter
2002 level of 732,182 Mcf, while oil production volumes declined to 121,608
barrels from 133,580 barrels, primarily reflecting the sale of a 30% interest in
the Company's Burrwood and West Delta fields in March 2002.
OPERATIONS UPDATE. Burrwood and West Delta Fields. The Company is currently
drilling its Tunney prospect, the State Lease 15016 No.1, in the West Delta 83
field in Plaquemines Parish, Louisiana. The well is currently drilling at
approximately 16,735' measured depth ("MD") or 14,235' true vertical depth
("TVD"). An intermediate string of 9 5/8ths" casing has been set at 11,800' MD
(10,713' TVD) and a 7" protection liner has been set to 14,004'. The deeper
portion of the well below the intermediate casing at 11,800' MD has not been
logged with open-hole logs but LWD tools have been utilized, which indicate
potential pay in two horizons. The well is drilling toward total depth, which is
currently scheduled to be approximately 16,800' MD. Once the well reaches total
depth, the Company plans to log the open hole with conventional logs, and will
release additional information upon receipt.
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Lafitte Field. As noted above, the Company completed a four-well drilling
program in the Lafitte field during the first quarter of 2003. Three of the four
wells resulted in successful producers. The Company's Valdarrama Uno and
Valdarrama Dos wells commenced production during April and all three successful
wells are now on production. Initial production appears to be impacted by
significant shut-in time. During the last two weeks of April, these three wells
produced at an average combined gross rate of 308 barrels of oil per day and 552
Mcf of gas per day, or 2,400 Mcfe. Goodrich is the non-operator and has an
approximate 49% working interest in the field.
Australia. On March 31, 2003, the Company participated in the spudding of the
Banjo prospect, an exploratory well on Block EP 397 offshore Australia. The well
was unsuccessful and was abandoned in April 2003. The Company's share of the
estimated well costs, which was paid into an escrow account in 2002, was
$650,000. Of this amount, approximately $100,000 of the estimated well costs
were incurred and expensed in the quarter ending March 31, 2003. The remaining
share of well costs will be expensed in the second quarter of 2003. With the
drilling and abandonment of the Banjo prospect the Company has fulfilled its
drilling obligations on the exploration permits and has no further drilling
activities planned in Australia.
OTHER INFORMATION. In this press release, the Company refers to a non-GAAP
financial measure called net cash flow from operations before changes in working
capital because of management's belief that this measure is a financial
indicator of the Company's ability to internally generate operating funds.
Management also believes that this non-GAAP financial measure of cash flow is
useful information to investors because it is widely used by professional
research analysts in the valuation and investment recommendations of companies
within the oil and gas exploration and production industry. Net cash flow from
operations before changes in working capital should not be considered an
alternative to net cash provided by operating activities, as defined by GAAP.
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, 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 and other 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 gas exploration and production
company listed on the New York Stock Exchange under the symbol "GDP." The
majority of its properties are in Louisiana and Texas.
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For Three Months Ended
March 31,
Selected Income Data
2003 2002
--------- ---------
Total Revenues...................................... $ 7,078,480 $ 4,699,682
Lease Operating Expense ............................ 1,757,185 1,987,048
Production Taxes.................................... 530,904 399,589
Depletion, Depreciation, and Amortization........... 1,577,239 1,603,301
Exploration......................................... 553,472 445,758
General and Administrative.......................... 1,538,444 842,743
Interest Expense.................................... 235,497 316,417
Gain (Loss) on Sale of Asset........................ (21,082) 2,836,501
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Income Before Income Taxes.......................... 864,657 1,941,327
Income Taxes........................................ 302,627 679,464
----------- ----------
Income Before Cumulative Effect..................... 562,030 1,261,863
Cumulative Effect of Change in Accounting Principle (205,293) ---
----------- ----------
Net Income.......................................... 356,737 1,261,863
Preferred Stock Dividends........................... 158,366 154,798
----------- ----------
Net Income Applicable To Common Stock............... $ 198,371 $ 1,107,065
----------- ----------
Income Per Common Share - Basic
Income Before Cumulative Effect.................. $ .03 $ .07
Cumulative Effect of Change in Accounting Principle $ (.01) $ ---
------------ ----------
Net Income......................................... $ .02 $ .07
------------ ----------
Net Income Applicable To Common Stock.............. $ .01 $ .06
------------ ----------
Income Per Common Share - Diluted
Income Before Cumulative Effect.................. $ .03 $ .06
Cumulative Effect of Change in Accounting Principle $ (.01) $ ---
------------ ----------
Net Income......................................... $ .02 $ .06
------------ ----------
Net Income Applicable To Common Stock.............. $ .01 $ .05
------------ ----------
Average Common Shares Outstanding (Basic).......... 17,971,341 17,896,356
Average Common Shares Outstanding (Diluted)........ 20,112,090 20,282,305
Selected Cash Flow Data
Operating cash flow, before changes in working
capital (non GAAP)
$ 3,099,252 $ 897,704
Net changes in working capital...................... (2,471,246) 671,819
----------- ----------
Net cash provided by operating activities (GAAP).... $ 628,006 $ 1,569,523
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Selected Operating Data
Net Natural Gas Produced (Mcf)...................... 744,410 732,182
Average Price Per Mcf............................... $ 4.21 $ 2.69
Net Crude Oil Produced (Bbl)........................ 121,608 133,580
Average Price Per Bbl............................... $ 29.70 $ 20.38
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