HOUSTON, Nov. 4, 2021 /PRNewswire/ -- Goodrich Petroleum Corporation (NYSE:GDP) (the "Company") today announced financial results for the third quarter ended September 30, 2021.
QUARTER HIGHLIGHTS
Net loss was $48.0 million in the quarter, or ($3.52) per basic and fully diluted share. The Company incurred a non-cash mark-to-market loss of $64.9 million in the quarter due to the change in fair value of unsettled derivatives not designated as hedges as future prices for natural gas rose during the quarter.
Adjusted net income (net income prior to change in fair value of unsettled derivatives not designated as hedges) was $16.9 million, or $1.24 per basic share and $1.10 per fully diluted share for the quarter.
Operating Income was $31.6 million in the quarter. Net cash provided by operating activities was $29.9 million in the quarter, which was negatively impacted by a change in working capital of $2.4 million.
Adjusted EBITDA was $33.2 million in the quarter.
Discretionary Cash Flow was $32.3 million and Capital Expenditures totaled $27.9 million in the quarter.
Production averaged approximately 166,000 Mcfe per day for the quarter, which grew by 7% sequentially over the second quarter. Production for the quarter was negatively impacted by downtime on non-operated wells.
Average realized price per unit was $3.85 per Mcfe, or $3.03 per Mcfe including settled hedges, and per unit operating expense was $1.77 per Mcfe for the quarter, which included non-cash expense of $0.91 per Mcfe.
Per unit cash operating expense was $0.86 per Mcfe, a 3% sequential decrease from the second quarter, and total per unit cash expense including cash interest was $0.92 per Mcfe for the quarter, broken out as follows:
- Lease operating expense ("LOE") decreased sequentially by 25% to $0.21 per Mcfe, which included $0.02 per Mcfe of workover expense
- Production and other taxes increased 33% sequentially to $0.08 per Mcfe due to the severance tax abatement period ending for wells that have reached payout or two years since first production
- Transportation and processing expense decreased 3% sequentially to $0.32 per Mcfe
- General and Administrative ("G&A") expense payable in cash increased by 14% sequentially to $0.25 per Mcfe due to an increase in accrual for expected payments due to better performance measures than target under the Company's annual incentive plan and long term cash incentive plan. G&A including stock based compensation increased by 17% sequentially to $0.28 per Mcfe; and
- Cash interest expense was $0.06 per Mcfe
Cash Margin was $2.11 per Mcfe (70%), comprised of a net realized price including hedges of $3.03 per Mcfe less per unit cash expenses (including interest) detailed above of $0.92 per Mcfe. The Company expects margin expansion for the rest of this year with anticipated higher realized prices in the fourth quarter.
Return on Invested Capital ("ROIC"), defined as trailing twelve month Adjusted EBITDA divided by total assets less current liabilities, was 76% at quarter-end. Adjusted Return on Invested Capital as defined as trailing twelve month Adjusted EBITDA divided by total assets less current liabilities exclusive of the Company's current derivative liability, was 45% at quarter-end. The Company expects ROIC to increase through the end of the year with higher volumes and higher realized prices.
Please see the disclosures and tables at the end of this press release for discussion of the non-US GAAP measures presented above and in the discussion below and a reconciliation of such measures to the most directly comparable US GAAP financial measure.
RECENT DEVELOPMENTS
FALL REDETERMINATION UNDER SENIOR CREDIT FACILITY:
In conjunction with its fall redetermination under its reserve based lending facility, the Company and the participating banks have an upcoming amendment to the credit facility establishing a new borrowing base of $150 million, a $30 million increase from its previous borrowing base.
THE COMPANY HAS POSTED A NEW PRESENTATION ON THE COMPANY'S WEBSITE WHICH WILL BE REVIEWED ON THE EARNINGS CONFERENCE CALL. INVESTORS CAN ACCESS THE SLIDES AT: http://goodrichpetroleumcorp.investorroom.com/events
To access the conference call, domestic participants should dial as follows:
PARTICIPANT DIAL IN (TOLL FREE): | 1-888-317-6003 |
PARTICIPANT INTERNATIONAL DIAL IN: | 1-412-317-6061 |
Canada Toll Free | 1-866-284-3684 |
Participant Elite Entry Number: 0616919 | |
Participants will need this Elite Entry number in order to join the conference. The Company encourages participants to dial in 10-15 minutes early to join the conference. | |
Participants may also access the live audio webcast of the conference call through the following web link: https://www.webcaster4.com/Webcast/Page/937/43340 or by accessing the webcast through the investor relations section of the Company's website. | |
FINANCIAL RESULTS
NET INCOME/LOSS
Net loss was $48.0 million in the quarter, or ($3.52) per basic and fully diluted share versus net loss of $16.4 million, or ($1.30) per basic and fully diluted share in the prior year period. Adjusted net income was $16.9 million, or $1.24 per basic share and $1.10 per fully diluted share in the quarter.
CASH FLOW
Net cash provided by operating activities was $29.9 million in the quarter, which was negatively impacted by a change in working capital of $2.4 million, versus $13.5 million in the prior year period. Adjusted EBITDA was $33.2 million in the quarter and discretionary cash flow ("DCF"), defined as net cash provided by operating activities before changes in working capital, was $32.3 million in the quarter, versus Adjusted EBITDA of $12.7 million and DCF of $11.8 million in the prior year period.
PRODUCTION
Production totaled approximately 15.3 Bcfe in the quarter, or an average of approximately 166,000 Mcfe per day (99% natural gas), versus 11.5 Bcfe, or an average of approximately 125,500 Mcfe per day (98% natural gas), in the prior year period.
REVENUES
Oil and natural gas revenues were $58.7 million and oil and natural gas revenues adjusted for cash settled derivatives of $12.5 million paid was $46.2 million. In the prior year period, oil and natural gas revenues were $21.5 million and oil and natural gas revenues adjusted for cash settled derivatives of $1.6 million received was $23.1 million. Average realized price per unit was $3.85 per Mcfe ($3.77 per Mcf of natural gas and $70.40 per barrel of oil) in the quarter, versus $1.86 per Mcfe in the prior year period ($1.78 per Mcf of natural gas and $39.63 per barrel of oil).
OPERATING EXPENSES
Lease operating expense ("LOE") was $3.3 million, or $0.21 per Mcfe, in the quarter, versus $2.8 million, or $0.25 per Mcfe, in the prior year period. LOE for the quarter included $0.3 million, or $0.02 per Mcfe, for workovers, versus $0.3 million, or $0.03 per Mcfe, in the prior year period. Lease operating expense for the quarter excluding workovers was $3.0 million, or $0.19 per Mcfe, versus $2.5 million, or $0.22 per Mcfe in the prior year period.
Production and other taxes were $1.3 million in the quarter, or $0.08 per Mcfe, versus $0.6 million, or $0.05 per Mcfe, in the prior year period. The increase in taxes for the quarter was due to the severance tax abatement period ending for wells that have reached payout or two years since first production.
Transportation and processing expense was $4.8 million, or $0.32 per Mcfe, in the quarter, versus $4.3 million, or $0.38 per Mcfe, in the prior year period.
Depreciation, depletion and amortization ("DD&A") expense was $13.4 million, or $0.88 per Mcfe, in the quarter, versus $10.3 million, or $0.90 per Mcfe, in the prior year period.
General and administrative expense was $4.3 million, or $0.28 per Mcfe, in the quarter, versus $3.9 million, or $0.34 per Mcfe, in the prior year period. G&A expense payable in cash was $3.8 million, or $0.25 per Mcfe, versus $2.9 million or $0.25 per Mcfe, in the prior year period. The increase in G&A for the quarter was due to an increase in accrual for expected payments due to better performance measures than target under the Company's annual incentive plan and long term cash incentive plan.
OPERATING INCOME/LOSS
Operating income, defined as revenues minus operating expenses, totaled $31.6 million in the quarter. Adjusted operating income adjusted for cash settled derivatives was $19.1 million for the quarter, which included $12.5 million paid for cash settled derivatives. In the prior year period, operating loss totaled $3.6 million and adjusted operating loss adjusted for cash settled derivatives was $2.0 million, which included $1.6 million received for cash settled derivatives.
INTEREST EXPENSE
Interest expense totaled $2.2 million in the quarter, which included interest payable in cash of $0.9 million incurred on the credit facility and non-cash interest of $1.3 million incurred primarily on the Company's second lien notes, which included $1.1 million paid in-kind interest and $0.2 million amortization of debt discount and issuance costs. Interest expense totaled $1.7 million in the prior year period, which included interest payable in cash of $1.0 million incurred on the credit facility and non-cash interest of $0.7 million incurred primarily on the Company's second lien notes, which included $0.5 million paid in-kind interest and $0.2 million amortization of debt discount and issuance costs.
CAPITAL EXPENDITURES
Capital expenditures totaled $27.9 million in the quarter, of which a majority was spent on drilling and completion costs, versus $16.9 million in the prior year period, of which a majority was also spent on drilling and completion costs. The Company conducted drilling and completion operations on 12 gross (4.5 net) wells in the quarter and added 4 gross (2.2 net) wells to production. The Company had 8 gross (2.3 net) wells in the drilling or completion process at the end of the quarter.
BALANCE SHEET
The Company exited the quarter with $5.5 million of cash, $90.4 million outstanding under the Company's credit facility, and total principal debt outstanding, including the credit facility and second lien notes, of $122.9 million.
CRUDE OIL AND NATURAL GAS DERIVATIVES
The Company had a loss of $77.4 million on its derivatives not designated as hedges in the quarter, which was comprised of a loss of $12.5 million on cash settlements and a $64.9 million loss representing the change of the fair value of our open natural gas and oil derivative contracts. The Company had a loss of $11.1 million on its derivatives not designated as hedges in the prior year period, which was comprised of a $12.7 million loss representing the change of the fair value of our open natural gas and oil derivative contracts, offset by a gain of $1.6 million on cash settlements.
OTHER INFORMATION
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, changes in commodities prices and costs of drilling and completion, 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 for the year ended December 31, 2020 and other subsequent 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.
Unless otherwise stated, oil production volumes include condensate.
NON-US GAAP INFORMATION
In this press release, the Company refers to several non-US GAAP financial measures, including Adjusted EBITDA, DCF, Return on Invested Capital ("ROIC"), cash margin, oil and natural gas revenues adjusted for cash settled derivatives, adjusted net income, adjusted operating income (loss), G&A expense payable in cash and interest payable in cash. Management believes Adjusted EBITDA, DCF and ROIC are good financial indicators of the Company's performance and ability to internally generate operating funds. Adjusted EBITDA and adjusted net income should not be considered an alternative to net income (loss) applicable to common stock, as defined by US GAAP. DCF should not be considered an alternative to net cash provided by operating activities, as defined by US GAAP. Oil and natural gas revenues adjusted for cash settled derivatives should not be considered an alternative for oil and natural gas revenues, as defined by US GAAP. Adjusted operating income (loss) should not be considered an alternative to operating income (loss), as defined by US GAAP. G&A expense payable in cash should not be considered an alternative to general and administrative expense, as defined by US GAAP. Interest payable in cash should not be considered an alternative to interest expense, as defined by US GAAP. Management believes that all of these non-US GAAP financial measures provide useful information to investors because they are monitored and used by Company management and widely used by professional research analysts in the valuation and investment recommendations of companies within the oil and gas exploration and production industry.
Goodrich Petroleum is an independent oil and natural gas exploration and production company listed on the NYSE American under the symbol "GDP".
GOODRICH PETROLEUM CORPORATION | |||||||||
SELECTED INCOME AND PRODUCTION DATA | |||||||||
(In thousands, except per share amounts) | |||||||||
Unaudited | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
Volumes | |||||||||
Natural gas (MMcf) | 15,108 | 11,346 | 40,113 | 35,937 | |||||
Oil and condensate (MBbls) | 26 | 33 | 89 | 106 | |||||
Mmcfe - Total | 15,265 | 11,543 | 40,646 | 36,576 | |||||
Mcfe per day | 165,925 | 125,462 | 148,885 | 133,487 | |||||
Reconciliation of Oil and natural gas revenues adjusted for cash settled derivatives (non-US GAAP) | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
Oil and natural gas revenues (US GAAP) | $ 58,733 | $ 21,463 | $ 128,708 | $ 64,917 | |||||
Net cash received (paid) for settlement of derivative instruments | (12,498) | 1,597 | (14,515) | 14,905 | |||||
Oil and natural gas revenues adjusted for cash settled derivatives | $ 46,235 | $ 23,060 | $ 114,193 | $ 79,822 | |||||
Oil and natural gas revenues | $ 58,733 | $ 21,463 | $ 128,708 | $ 64,917 | |||||
Other | - | 3 | - | 9 | |||||
$ 58,733 | $ 21,466 | $ 128,708 | $ 64,926 | ||||||
Operating Expenses | |||||||||
Lease operating expense (LOE excluding workovers - $3,016, $2,524, $8,622 and $8,064, respectively) | 3,277 | 2,831 | 10,429 | 9,384 | |||||
Production and other taxes | 1,291 | 591 | 2,756 | 2,361 | |||||
Transportation and processing | 4,811 | 4,336 | 13,457 | 14,586 | |||||
Depreciation, depletion and amortization | 13,389 | 10,341 | 35,671 | 35,484 | |||||
General and administrative (payable in cash - $3,822, $2,878, $10,126 and $9,828, respectively) | 4,329 | 3,891 | 11,302 | 13,327 | |||||
Impairment of oil and natural gas properties | - | 3,040 | - | 17,170 | |||||
Other | 4 | (11) | (183) | (13) | |||||
Operating income (loss) | 31,632 | (3,553) | 55,276 | (27,373) | |||||
Other income (expense) | |||||||||
Interest expense (payable in cash - $884, $1,001, $2,612 and $3,149, respectively) | (2,232) | (1,733) | (6,255) | (5,410) | |||||
Interest income and other | - | 5 | - | 147 | |||||
Gain (loss) on commodity derivatives not designated as hedges | (77,369) | (11,079) | (103,111) | (3,629) | |||||
Loss on early extinguishment of debt | - | - | (935) | - | |||||
(79,601) | (12,807) | (110,301) | (8,892) | ||||||
Loss before income taxes | (47,969) | (16,360) | (55,025) | (36,265) | |||||
Income tax expense | - | - | - | - | |||||
Net loss | $ (47,969) | $ (16,360) | $ (55,025) | $ (36,265) | |||||
Discretionary cash flow (see non-US GAAP reconciliation) (1) | $ 32,291 | $ 11,790 | $ 75,434 | $ 41,687 | |||||
Adjusted EBITDA (see calculation and non-US GAAP reconciliation) (2) | $ 33,217 | $ 12,731 | $ 77,885 | $ 44,581 | |||||
Weighted average common shares outstanding - basic | 13,641 | 12,618 | 13,481 | 12,564 | |||||
Weighted average common shares outstanding - diluted (3) | 13,641 | 12,618 | 13,481 | 12,564 | |||||
Net loss per share | |||||||||
Net loss per share - basic | $ (3.52) | $ (1.30) | $ (4.08) | $ (2.89) | |||||
Net loss per share - diluted | $ (3.52) | $ (1.30) | $ (4.08) | $ (2.89) | |||||
(1) Discretionary cash flow is defined as net cash provided by operating activities before changes in operating assets and liabilities. Management believes that the non-US GAAP measure of discretionary cash flow is useful as an indicator of an oil and natural gas exploration and production company's ability to internally fund exploration and development activities and to service or incur additional debt. The company has also included this information because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements which the company may not control and may not relate to the period in which the operating activities occurred. Operating cash flow should not be considered in isolation or as a substitute for net cash provided by operating activities prepared in accordance with US GAAP. | |||||||||
(2) Adjusted EBITDA is defined as earnings before interest expense, income and similar taxes, DD&A, share based compensation expense and impairment of oil and natural gas properties. In calculating adjusted EBITDA, reorganization gains/losses and gains/losses on commodity derivatives not designated as hedges net of cash received or paid in settlement of derivative instruments are also excluded. Other excluded items include interest income and other, adjustments per our 2019 Senior Credit Facility agreement for operating leases under ASC Topic 842 and any other extraordinary non-cash gains/losses. | |||||||||
(3) Fully diluted shares excludes approximately 2.5 million and 2.4 million potentially dilutive instruments that were anti-dilutive for the three months ended September 30, 2021 and 2020, respectively. Fully diluted shares excludes approximately 2.4 million and 2.2 million potentially dilutive instruments that were anti-dilutive for the nine months ended September 30, 2021 and 2020, respectively. | |||||||||
GOODRICH PETROLEUM CORPORATION | |||||||||
Per Unit Sales Prices and Costs | |||||||||
Unaudited | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
Average sales price per unit: | |||||||||
Oil (per Bbl) | |||||||||
Including net cash received from/paid to settle oil derivatives | $ 70.40 | $ 49.90 | $ 64.25 | $ 55.06 | |||||
Excluding net cash received from/paid to settle oil derivatives | $ 70.40 | $ 39.63 | $ 64.50 | $ 42.76 | |||||
Natural gas (per Mcf) | |||||||||
Including net cash received from/paid to settle natural gas derivatives | $ 2.94 | $ 1.89 | $ 2.70 | $ 2.06 | |||||
Excluding net cash received from/paid to settle natural gas derivatives | $ 3.77 | $ 1.78 | $ 3.07 | $ 1.68 | |||||
Oil and natural gas (per Mcfe) | |||||||||
Including net cash received from/paid to settle oil and natural gas derivatives | $ 3.03 | $ 2.00 | $ 2.81 | $ 2.18 | |||||
Excluding net cash received from/paid to settle oil and natural gas derivatives | $ 3.85 | $ 1.86 | $ 3.17 | $ 1.77 | |||||
Costs Per Mcfe | |||||||||
Lease operating expense ($0.19, $0.22, $0.22 and $0.22 per Mcfe excluding workovers, respectively) | $ 0.21 | $ 0.25 | $ 0.26 | $ 0.26 | |||||
Production and other taxes | $ 0.08 | $ 0.05 | $ 0.07 | $ 0.06 | |||||
Transportation and processing | $ 0.32 | $ 0.38 | $ 0.34 | $ 0.41 | |||||
Depreciation, depletion and amortization | $ 0.88 | $ 0.90 | $ 0.88 | $ 0.97 | |||||
General and administrative (payable in cash - $0.25, $0.25, $0.25 and $0.27, respectively) | $ 0.28 | $ 0.34 | $ 0.28 | $ 0.36 | |||||
Impairment of oil and natural gas properties | $ - | $ 0.26 | $ - | $ 0.47 | |||||
Other | $ - | $ - | $ - | $ - | |||||
$ 1.77 | $ 2.17 | $ 1.81 | $ 2.52 | ||||||
Note: Amounts on a per Mcfe basis may not total due to rounding. | |||||||||
GOODRICH PETROLEUM CORPORATION | ||||||||
Cash Flow Data (In thousands), unaudited | ||||||||
Reconciliation of discretionary cash flow (non-US GAAP) | ||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||
Net cash provided by operating activities (US GAAP) | $ 29,935 | $ 13,512 | $ 66,604 | $ 44,592 | ||||
Net changes in working capital | 2,356 | (1,722) | 8,830 | (2,905) | ||||
Discretionary cash flow (1) | $ 32,291 | $ 11,790 | $ 75,434 | $ 41,687 | ||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ (47,969) | $ (16,360) | $ (55,025) | $ (36,265) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||
Depreciation, depletion and amortization | 13,389 | 10,341 | 35,671 | 35,484 | ||||
Impairment of oil and natural gas properties | - | 3,040 | - | 17,170 | ||||
Right of use asset depreciation | 135 | 313 | 406 | 939 | ||||
Loss on derivatives not designated as hedges | 77,369 | 11,079 | 103,111 | 3,629 | ||||
Net cash (paid) received for settlement of derivative instruments | (12,498) | 1,597 | (14,515) | 14,905 | ||||
Share based compensation (non-cash) | 518 | 1,035 | 1,208 | 3,564 | ||||
Amortization of finance cost, debt discount, paid in-kind interest and accretion | 1,347 | 732 | 3,643 | 2,261 | ||||
Loss on early extinguishment of debt | - | - | 935 | - | ||||
Other | - | 13 | - | - | ||||
Change in assets and liabilities: | ||||||||
Accounts receivable, trade and other, net of allowance | (485) | (500) | (818) | (583) | ||||
Accrued oil and gas revenue | (7,311) | (44) | (14,389) | 3,708 | ||||
Prepaid expenses and other | 102 | 14 | 204 | 65 | ||||
Accounts payable | 2,884 | 2,219 | 4,885 | 2,505 | ||||
Accrued liabilities | 2,454 | 33 | 1,288 | (2,790) | ||||
Net cash provided by operating activities | 29,935 | 13,512 | 66,604 | 44,592 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (25,045) | (14,816) | (71,065) | (48,012) | ||||
Net cash used in investing activities | (25,045) | (14,816) | (71,065) | (48,012) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Principal payments of bank borrowings | (6,000) | (1,000) | (23,000) | (1,000) | ||||
Proceeds from bank borrowings | 6,000 | 2,000 | 17,000 | 4,500 | ||||
Proceeds from 2023 Second Lien Notes | - | - | 15,000 | - | ||||
Debt issuance costs | (140) | - | (339) | - | ||||
Purchase of treasury stock | (21) | (9) | (49) | (281) | ||||
Net cash provided by financing activities | (161) | 991 | 8,612 | 3,219 | ||||
Increase (decrease) in cash and cash equivalents | 4,729 | (313) | 4,151 | (201) | ||||
Cash and cash equivalents, beginning of period | 782 | 1,564 | 1,360 | 1,452 | ||||
Cash and cash equivalents, end of period | $ 5,511 | $ 1,251 | $ 5,511 | $ 1,251 | ||||
GOODRICH PETROLEUM CORPORATION | |||||||||
Other Information and Reconciliations (In thousands, except per share amounts), unaudited | |||||||||
Supplemental Balance Sheet Data | |||||||||
As of | |||||||||
September 30, 2021 | |||||||||
Cash and cash equivalents | $ 5,511 | ||||||||
Long-term debt, net | $ 121,749 | ||||||||
Unamortized debt discount and issuance cost | 1,186 | ||||||||
Total principal amount of debt | $ 122,935 | ||||||||
Reconciliation of Adjusted EBITDA (non-US GAAP) | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
Net loss (US GAAP) | $ (47,969) | $ (16,360) | $ (55,025) | $ (36,265) | |||||
Depreciation, depletion and amortization ("DD&A") | 13,389 | 10,341 | 35,671 | 35,484 | |||||
Impairment of oil and natural gas properties | - | 3,040 | - | 17,170 | |||||
Stock compensation expense (non-cash) | 517 | 1,035 | 1,207 | 3,564 | |||||
Interest expense | 2,232 | 1,733 | 6,255 | 5,410 | |||||
Loss on derivatives not designated as hedges | 77,369 | 11,079 | 103,111 | 3,629 | |||||
Net cash (paid) received for settlement of derivative instruments | (12,498) | 1,597 | (14,515) | 14,905 | |||||
Loss on early extinguishment of debt | - | - | 935 | - | |||||
Other items ** | 177 | 266 | 246 | 684 | |||||
Adjusted EBITDA (2) | $ 33,217 | $ 12,731 | $ 77,885 | $ 44,581 | |||||
** Other items included $0.2 million, $0.3 million, $0.2 million and $0.8 million, respectively, from the impact of accounting for operating leases under ASC 842 as well as interest income for the three and nine months ended September 30, 2021 and 2020. | |||||||||
Reconciliation of Return on Invested Capital ("ROIC") (non-US GAAP) | |||||||||
For the trailing 12 months ended September 30, 2021 | |||||||||
Adjusted EBITDA (non-US GAAP, see reconciliation above) | $ 95,327 | ||||||||
As of September 30, 2021 | |||||||||
Total Assets (US GAAP) | $ 265,952 | ||||||||
Less: Current Liabilities (US GAAP) | (140,019) | ||||||||
Invested Capital ("IC") (non-US GAAP) | $ 125,933 | ||||||||
Return on Invested Capital (ROIC) (Adjusted EBITDA / IC) | 76% | ||||||||
Reconciliation of Adjusted net income (loss) and adjusted EPS (non-US GAAP) | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
Net loss (US GAAP) | $ (47,969) | $ (16,360) | $ (55,025) | $ (36,265) | |||||
Change in fair value of derivatives not designated as hedges | 64,871 | 12,676 | 88,596 | 18,534 | |||||
Adjusted net income (loss) | $ 16,902 | $ (3,684) | $ 33,571 | $ (17,731) | |||||
Interest, discount and amortization of debt issuance cost for 2023 Second Lien Notes | 918 | - | 2,467 | - | |||||
Adjusted diluted net income (loss) | $ 17,820 | $ (3,684) | $ 36,038 | $ (17,731) | |||||
Weighted average common shares outstanding - basic | 13,641 | 12,618 | 13,481 | 12,564 | |||||
Weighted average common shares outstanding - diluted (4) | 16,132 | 12,618 | 15,871 | 12,564 | |||||
Adjusted net income (loss) per share - basic | $ 1.24 | $ (0.29) | $ 2.49 | $ (1.41) | |||||
Adjusted net income (loss) per share - diluted | $ 1.10 | $ (0.29) | $ 2.27 | $ (1.41) | |||||
(4) Fully diluted shares includes approximately 2.5 million and 2.4 million potentially dilutive instruments that were anti-dilutive for the three and nine months ended September 30, 2021, respectively, for the net loss per share calculation under US GAAP but became dilutive for the adjusted diluted net income per share calculation. | |||||||||
Reconciliation of Adjusted operating income (loss) (non-US GAAP) | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
Operating income (loss) (US GAAP) | $ 31,632 | $ (3,553) | $ 55,276 | $ (27,373) | |||||
Net cash (paid) received for settlement of derivative instruments | (12,498) | 1,597 | (14,515) | 14,905 | |||||
Adjusted operating income (loss) | $ 19,134 | $ (1,956) | $ 40,761 | $ (12,468) | |||||
Derivative Activity | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
Change in fair value of derivatives not designated as hedges | $ (64,871) | $ (12,676) | $ (88,596) | $ (18,534) | |||||
Net cash (paid) received for settlement of derivative instruments | (12,498) | 1,597 | (14,515) | 14,905 | |||||
Net loss on derivatives not designated as hedges | $ (77,369) | $ (11,079) | $ (103,111) | $ (3,629) | |||||
Reconciliation of interest payable in cash (non-US GAAP) | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
Interest expense (US GAAP) | $ 2,232 | $ 1,733 | $ 6,255 | $ 5,410 | |||||
Amortization of debt discount and issuance cost and paid-in-kind interest | (1,348) | (732) | (3,643) | (2,261) | |||||
Interest payable in cash | $ 884 | $ 1,001 | $ 2,612 | $ 3,149 | |||||
GOODRICH PETROLEUM CORPORATION | |||||||||
Other Information and Reconciliations continued (In thousands, except per unit amounts), unaudited | |||||||||
Reconciliation of cash margin (non-US GAAP) | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
Oil and natural gas revenues | $ 58,733 | $ 21,463 | $ 128,708 | $ 64,917 | |||||
Other | - | 3 | - | 9 | |||||
$ 58,733 | $ 21,466 | $ 128,708 | $ 64,926 | ||||||
Operating Expenses | |||||||||
Lease operating expense (LOE excluding workovers - $3,016, $2,524, $8,622 and $8,064, respectively) | 3,277 | 2,831 | 10,429 | 9,384 | |||||
Production and other taxes | 1,291 | 591 | 2,756 | 2,361 | |||||
Transportation and processing | 4,811 | 4,336 | 13,457 | 14,586 | |||||
Depreciation, depletion and amortization | 13,389 | 10,341 | 35,671 | 35,484 | |||||
General and administrative (payable in cash - $3,822, $2,878, $10,126 and $9,828, respectively) | 4,329 | 3,891 | 11,302 | 13,327 | |||||
Impairment of oil and natural gas properties | - | 3,040 | - | 17,170 | |||||
Other | 4 | (11) | (183) | (13) | |||||
Operating income (loss) | 31,632 | (3,553) | 55,276 | (27,373) | |||||
Other income (expense) | |||||||||
Interest expense (payable in cash - $884, $1,001, $2,612 and $3,149, respectively) | (2,232) | (1,733) | (6,255) | (5,410) | |||||
Interest income and other | - | 5 | - | 147 | |||||
Gain (loss) on commodity derivatives not designated as hedges | (77,369) | (11,079) | (103,111) | (3,629) | |||||
Loss on early extinguishment of debt | - | - | (935) | - | |||||
(79,601) | (12,807) | (110,301) | (8,892) | ||||||
Loss before income taxes | (47,969) | (16,360) | (55,025) | (36,265) | |||||
Income tax expense | - | - | - | - | |||||
Net loss | $ (47,969) | $ (16,360) | $ (55,025) | $ (36,265) | |||||
Cash margin, a non-US GAAP measure | $ 32,150 | $ 11,423 | $ 74,813 | $ 40,514 | |||||
Mmcfe produced during period | 15,265 | 11,543 | 40,646 | 36,576 | |||||
Cash margin per Mcfe | $ 2.11 | $ 0.99 | $ 1.84 | $ 1.11 | |||||
Reconciliation of capital expenditures | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
Net cash used in investing activities (US GAAP) | $ (25,045) | $ (14,816) | $ (71,065) | $ (48,012) | |||||
Cash calls received (utilized), net | - | - | (615) | - | |||||
Miscellaneous capitalized costs, ARO adjustments & sales | (620) | 564 | (698) | 135 | |||||
Cost incurred in prior period and paid in current period | 6,461 | 1,117 | 4,138 | 6,175 | |||||
Capital accrual at period end | (8,737) | (3,808) | (8,737) | (3,808) | |||||
Total capital expenditures | $ (27,941) | $ (16,943) | $ (76,977) | $ (45,510) | |||||
Reconciliation of general & administrative expense payable in cash (non-US GAAP) | |||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||
General & administrative expense (US GAAP) | $ 4,329 | $ 3,891 | $ 11,302 | $ 13,327 | |||||
Share based compensation | (507) | (1,013) | (1,176) | (3,499) | |||||
General & administrative expense payable in cash | $ 3,822 | $ 2,878 | $ 10,126 | $ 9,828 | |||||
Oil and natural gas production (Mcfe) | 15,265 | 11,543 | 40,646 | 36,576 | |||||
General and administrative expense payable in cash per Mcfe | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.27 | |||||
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SOURCE Goodrich Petroleum Corporation