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Summary: Goodrich Petroleum Corp. Sep 11
Standard & Poors, September 2011
The ratings on Houston-based Goodrich Petroleum Corp. (GDP) reflect its relatively small reserve base, meaningful exposure to natural gas (which we estimate to be 90% of this year's production), lower reserve life compared with some of its peers', projected negative free cash flow over the next few years, high costs, and the company's position in a highly cyclical, capital-intensive, competitive industry. Our ratings on GDP also reflect the company's good hedging position (45% of 2011 and 2012 natural gas production), adequate near-term liquidity, and its ongoing shift to oil development in the Eagle Ford shale. Standard & Poor's Ratings Services views GDP's business profile as vulnerable given its small size, high leverage to weak natural gas prices, and high proportion...
Companies mentioned in this report are: Goodrich Petroleum Corp.
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Goodrich Petroleum Corp.