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TRANSCRIPT
Management Presentation
May, 2020
NYSE American: GDP
This presentation has been prepared by Goodrich Petroleum Corporation (the “Company”) solely for information purposes and may include "forward-
looking statements" within the meaning of the U.S. Private Litigation Securities Reform Act of 1995. The Company, its respective employees, directors,
officers or advisors, does not make any representation or warranty as to the accuracy or completeness of the information contained in the presentation
materials. The Company shall have no liability for this presentation, information contained herein, or any representations (expressed or implied),
whether the communications were oral or written. The statements, other than statements of historical facts, included in this presentation that address
activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements.
These statements include, but are not limited to forward-looking statements about acquisitions, divestitures, trades, potential strategic alliances, the
availability of capital, the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the
Company's drilling program, production, hedging activities, capital expenditure levels and other guidance that may be included in this presentation.
These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends,
current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from
those implied or expressed by the forward-looking statements. These include risks relating to the Company's financial performance and results,
availability of sufficient cash flow to execute its business plan, prices and demand for oil, natural gas and natural gas liquids, the ability to replace
reserves and efficiently develop current reserves, the ability to access the capital markets and finance operations, including capital expenditures, and
other important factors that could cause actual results to differ materially from those projected as described in this presentation and the Company's
reports filed with the Securities and Exchange Commission. See "Risk Factors" in the Company's Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and other public filings and press releases.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or
update any forward-looking statement, whether as a result of new information, future events or otherwise.
May, 2020 2
Environmental: ◦ Total Gas Flared: (% of Production) ~0
◦ Total GHG Emissions: (2019) (000 Mt) (EPA,LDEQ,MDEQ,TECQ Compliant) 27
◦ Total Water Use (2019 - MMBls): 5.1
◦ OSHA Compliant
Social: ◦ Number of Employees: 51
◦ Percentage of Employees Unionized: 0%
◦ Percentage of Women in the Workforce: 51%
◦ Percentage of Minorities in the Workforce: 20%
Governance: ◦ Size of Board: 8
◦ Independent Directors: 6
◦ Percentage of Independent Directors: 75%
◦ Board Duration: 1 Year
◦ Number of Board Meetings: 10
◦ Board Meeting Attendance: 100%
May, 2020 3
18 Year Inventory of Core Locations (77% Operated) at
Current Pace
Acreage is Held By Production and Fully De-Risked
>1.0 Tcf of Natural Gas Resource Potential in North
Louisiana
Production: 137,000 Mcfe/day (1Q20), 32% YOY Growth
Low Finding/Development and Lifting Cost Generating
Competitive Rates of Return
2.5 Bcf Per 1,000 Feet of Lateral
Low LOE ($0.05/Mcf) and No Sev Tax on New Wells
Return on Capital Employed (“ROCE”) – 12.5% (TTM
EBIT/(Assets – Current Liabilities)
1Q20 Adjusted EBITDA of $16.6 Million. EBITDA Margin
of Approximately 58%*
Top Tier Capital Efficiency
Low Leverage (Net Debt to EBITDA (TTM) – 1.3X)
Low Multiple (EV/EBITDA ~ 2.50X)
TUSCALOOSA MARINE SHALE: Gross (Net) Acres (1Q20): 47,700 (33,200) Proved Reserves (YE19 – SEC) 7 Bcfe Objectives: Tuscaloosa Marine Shale
EAGLE FORD SHALE: Net Acres (1Q20): 4,300 Proved Reserves (YE19 – SEC) 0 Objectives: Eagle Ford Shale, Pearsall Shale & Buda Lime
HAYNESVILLE / BOSSIER SHALE ANGELINA RIVER TREND (“ART”) Gross (Net) Acres (4Q18): 7,000 (3,000) Proved Reserves (YE18 - SEC) Objective: Haynesville & Bossier Shale
HAYNESVILLE SHALE - CORE Gross (Net) Acres (1Q20): 40,300 (22,300) Proved Reserves (YE19 - SEC) 510 Bcfe Objective: Haynesville Shale
HAYNESVILLE PURE PLAY OPPORTUNITY
STRONG HAYNESVILLE RESULTS
COMPANY RETURNS AND BALANCE SHEET
Texas
Louisiana
Mississippi
May, 2020 4
* EBITDA Margin defined as EBITDA divided
by Revenues adjusted for settled derivatives
5
55
303
428
480 517
0
100
200
300
400
500
600
2015 2016 2017 2018* 2019
ETX TMS NLA - Haynesville Total
SEC PV10 of $297 Million
YE19 Proved Reserves by Area (Bcfe, %)
YE19 Proved Reserves by Category (Bcfe, %)
SEC Proved Reserves (Bcfe) YE19 Proved Reserves by Commodity
May, 2020
PUD-
372
(72%)
PDP-
145
(28%)
HS – 511
(99%)
TMS-6
(1%)
Natural
Gas –
511
(99%)
Oil - 6
(1%)
6
Net Debt to EBITDA of 1.3X based
on TTM EBITDA of $80.3 million
Target of Less than 1.5X
Capitalization
$ in millions 3/31/20
Cash and Cash Equivalents $1.3
Senior Credit Facility (Borrowing Base) 92.9
2L Senior Secured Notes 13.4
Total Debt $106.3
Total Stockholders' Equity 88.5
Total Book Capitalization $194.8
Credit Statistics
TTM 3/31/20 Adjusted EBITDA $80.3
Net Debt / Adjusted TTM EBITDA
1.3x
Net Debt to Total Capitalization 53.9%
Borrowing Base $120.0
May, 2020
May, 2020
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2016 2017 2018 2019 2020*
Mcfe/Day
Mcfe/Day
7
* Mid-Point of Guidance
8
Period Natural Gas Volumes
(Mcf/d) Swap Volumes
(Mcf/d) Collar Volumes
(Mcf/d) Swap Price Collar Prices
1Q20 70,000 70,000 0 $2.87
2Q20 70,000 47,000 23,000 $2.54 $2.40 - $2.62
3Q20 70,000 45,000 25,000 $2.56 $2.40 - $2.62
4Q20 70,000 45,000 25,000 $2.59 $2.40 - $2.62
1Q21 70,000 43,000 27,000 $2.64 $2.40 - $2.62
2Q21 50,000 50,000 0 $2.47
3Q21 50,000 50,000 0 $2.48
4Q21 50,000 50,000 0 $2.45
1Q22 50,000 50,000 0 $2.45
Period Oil Volumes
(Bo/d) Swap Volumes
(Bo/d) Collar Volumes
(Boe/d) Swap Price
1Q20 250 250 0 $60.44
2Q20 225 225 0 $59.41
3Q20 210 210 0 $58.36
4Q20 200 200 0 $57.51
1Q21 200 200 0 $56.58
May, 2020
9
Volumes and Cost Guidance 2020E
Production
Annual Net Production (Bcfe): 50 – 52
Avg. Daily Production – Midpoint (MMcfe/d): 140
Percent Natural Gas: 99%
Capital Expenditures (MM)
Total Capital Expenditures $40 - $50
Price Realization
Henry Hub Differential $0.15 – $0.25
Unit Cost (Per Mcfe)
LOE: $0.20 - $0.25
Taxes: $0.04 – $0.07
Transportation: $0.30 - $0.40
G&A (Cash): $0.24 - $0.30
Development Schedule 2020E
Activity
Gross (Net) Wells: 12 (5.0)
Avg. Net Lateral Length: ~8,500’
Percentage Operated (Net): 72%
Net Capital Allocation
Bethany-Longstreet 91%
Thorn Lake 9%
Quarterly Completion Cadence
1Q20 5 Gross (1.8 Net)
2Q20 1 Gross (0.8 Net)
3Q20 6 Gross (2.4 Net)
4Q20 0 Gross (0.0 Net)
Total 12 Gross (5.0 Net)
May, 2020
-10
-5
0
5
10
15
20
25
GDP
May, 2020 Peer Group Includes: AMPY,APA,AR,AXAS,BCEI,BRY,CDEV,CHAP,CHK,CLR,COG,CPE,CRC,CRK,CXO,DNR,DVN,EOG, EQT,ESTE,FANG,GDP,GPOR,HPR,KOS,LONE,LPI,MCF,MGY,MR,MTDR,MUR,NOG,NBL,OAS,OVV, PDCE,PE,PVAC,PXD,QEP,REI,RRC,SBOW,SD,SM,SWN,TALO,WLL,WPX,XEC,XOG Source: Bloomberg, Company (4Q19 Financials for Peers, 1Q20 Financials for GDP)
10
0
1
2
3
4
5
6
GDP
May, 2020
Peer Group Includes: AMPY,APA,AR,AXAS,BCEI,BRY,CDEV,CHAP,CHK,CLR,COG,CPE,CRC,CRK,CXO,DNR,DVN,EOG, EQT,ESTE,FANG,GDP,GPOR,HPR,KOS,LONE,LPI,MCF,MGY,MR,MTDR,MUR,NOG,NBL,OAS,OVV, PDCE,PE,PVAC,PXD,QEP,REI,RRC,SBOW,SD,SM,SWN,TALO,WLL,WPX,XEC,XOG Source: Bloomberg, Company (4Q19 Financials for Peers, 1Q20 Financials for GDP)
11
0
1
2
3
4
5
6
7
8
9
GDP
May, 2020 Peer Group Includes: AMPY,APA,AR,AXAS,BCEI,BRY,CDEV,CHAP,CHK,CLR,COG,CPE,CRC,CRK,CXO,DNR,DVN,EOG, EQT,ESTE,FANG,GDP,GPOR,HPR,KOS,LONE,LPI,MCF,MGY,MR,MTDR,MUR,NOG,NBL,OAS,OVV, PDCE,PE,PVAC,PXD,QEP,REI,RRC,SBOW,SD,SM,SWN,TALO,WLL,WPX,XEC,XOG Source: Bloomberg, Company (4Q19 Financials for Peers, 1Q20 Financials for GDP)
12
GDP 22,300 Net Acres
Pay Zones
} 100 – 300 feet
May, 2020 13
May, 2020 GDP 14
Haynesville - Core
Total Gross/Net Acres:
~34,300/19,300
Average WI/NRI: ~59%/43%
Acreage HBP: 100%
117 total producing wells (32
Operated)
1/1/20 – Inventory of 208 gross (91
net) potential locations on 880’
spacing providing 15+ year inventory
Operator for Approximately 73% of
the NLA core position
CHK Joint Venture on most of the
remaining 27% of NLA Core
Acreage
Recent Acreage Swaps Adding to
Operated and Long Lateral Acreage
Continuing to Look For Bolt-On
Opportunities
Shelby Trough/Angelina River Trend
(ART)
Haynesville and Bossier Shales:
Total Gross/Net Acres: ~6,000/
3,000
Average WI/NRI: ~40% / 30%
TOTAL HAYNESVILLE SHALE
~22,300 net Ac
ART 3,000 Net
Ac
NORTH LOUISIANA CORE
AREA 19,300 Net Ac
Rig Source: Ulterra Bits
Haynesville Completion Evolution
May, 2020 15
• 4,600‘ Laterals
• 1,000 lbs/ft Proppant
• Hybrid Fluid
• 300-450’ Frac Intervals
• Cluster Spacing 50-70’
• 10,000’ Laterals
• 5,000+ lbs/ft Proppant
• Slick Water & Hybrid Fluid
• <100’ Frac Intervals
• Cluster Spacing 20 - 50’
• 4,600 - 10,000’ Laterals
• 3,000 – 4,000 lbs/ft Proppant
• Slick Water Fluid
• 100 - 150’ Frac Intervals
• Cluster Spacing 20 - 30’
Original Design
Tested
Current Design
Evolving completions maximize near-wellbore stimulation
Haynesville – Recent Industry Activity
May, 2020 16
(8) CHK ROTC 1 & 2
10,000’ Laterals IP: 72,000 Mcf/d
19 Bcf in 19 months
(11) GDP-Wurtsbaugh 25-24 #2&3
7,500’ Laterals IP: 25,000 Mcf/d IP: 29,000 Mcf/d
(10) GDP Wurtsbaugh 26 4,600’ Lateral
IP: 22,000 Mcf/d
(9) GDP MSR - Hunt 5H-1
4,600’ Lateral IP: 17,000 Mcf/d
(22) CHK Black 1H
IP: 44,000 Mcf/d 10,000’ Lateral
(21) Vine HA RA SU74;L L
Golson 3 - 003-ALT IP: 18,800 Mcf/d
4,661’ Lateral
5. CHK GEPH Unit
IP: 47,988 Mcf/d 15,000’ Lateral
4. CRK HUNTER 28-21HC 1&2 IP: 27,000 Mcf/d each
9,200’ Laterals
(13) GDP
Franks 25&24 #1 IP: 30,000 Mcf/d
9,600’ Lateral
(12) GDP
Wurtsbaugh 25-24 #1 8,800’ Lateral
IP: 31,000 Mcf/d
(19) GDP
Cason-Dickson #1&2 IP: 31 MMcf/d, IP: 23 MMcf/d
8,000 & 3,000’ Laterals
3. CRK FLORSHEIM 9-16 HC #1&2 10,000’ Laterals
IP: 26,500 Mcf/d IP: 27,600 Mcf/d
(20) GDP
Cason-Dickson 23&24 #3&4
IP: 62,000 Mcf/d 9,300’ Laterals
(18) GDP
Harris 14&23 #1 IP: 27,500 Mcf/d
6,100’ Lateral
(14) GDP
Loftus 27&22 #1 & 2 26,000 Mcfe/d 25,000 Mcfe/d 7,500’ Laterals
(15) GDP
Demmon 34H #1 22,500 Mcf/d 4,600’ Lateral
(16) GDP
Wurtsbaugh 35H #1 IP: 22,500 Mcf/d
4,600’ Lateral
(7) CRK Cook 21-28 HC #2
10,000’ Lateral IP: 26,800 Mcf/d
3,798#/ft
(6) CRK Cook 21-28 HC #1
10,000’ Lateral IP: 25,600 Mcf/d
3,803#/ft
(2) CRK Nissen 28-21HC #2
10,000’ Lateral IP: 25,000 Mcf/d
3,801#/ft
(1) CRK Nissen 28-21HC #1
10,000’ Lateral IP: 27,000 Mcf/d
3,796#/ft
(17) Covey Park Tucker 31-6C H1 IP 18,045 Mcf/d
7,466’ Lateral
1
2
3
4
5 6
7
8
9
10-16
17
18-20
21
22
(22) GDP Melody Jones 20H-1
4,600’ Lateral IP: 22,000 Mcf/d
22
(23) CRK Gates 26-35 #1 & #2
10,000’ Laterals IP: 24,600 Mcf/d IP: 23,700 Mcf/d
23
May, 2020 17
May, 2020 18
May, 2020 19
May, 2020 20
Assumptions Louisiana
EUR
12.6 Bcf (2.7 Bcf/1,000’)
Sales Gas BTU
Price
Adjustment
1.020
Pricing
Differentials/
Transportation
Average - NYMEX less $0.15 / MMBtu
Transportation: $0.30 / Mcf
Fixed Opex Fixed Opex:
$3,290 / month
Variable Opex $0.07 / Mcf
Severance Tax Payout or 24 month tax holiday;
thereafter $0.12 / Mcf
Ad Val Tax $0.03 / Mcf
Royalty Burden 27.0%
D&C Capex $7.0 MM
Facilities/Tubing
Capex
$0.381 MM, included in D&C Capex
Spud to 1st Sale 60 Days
PV10 (M$) ($2.75/Mcf Pricing)
$7,047 (Post Capex)
Economic EUR’s vary depending on gas price assumptions.
100
1,000
10,000
100,000
0 20 40 60 80 100 120
Avg D
aily P
roducti
on (M
cfp
d)
Months
4,600' Lateral Type Curve
4,600' Lateral
EUR Capex
(Mmcfe) ($M)
90% 100% 110% 90% 100% 110%
2.00 25.0% 37.8% 52.6% 2.00 53.0% 37.8% 27.0%
2.25 43.3% 61.3% 81.9% 2.25 82.8% 61.3% 45.9%
2.50 65.0% 89.2% 117.1% 2.50 118.5% 89.2% 68.3%
2.75 90.5% 122.1% 158.9% 2.75 161.0% 122.1% 94.6%
3.00 120.0% 160.6% 208.4% 3.00 211.4% 160.6% 125.1%
Ownership: WI 100% - NRI 73%
Pricing: Flat Pricing
AFE: Two well pad.
IRR Sensitivity Analysis Estimates (IRR Sensitivity to EURs and Capex)
IRRs Incoporate Early Time Outperformance
Gas
Pri
ce
Gas
Pri
ce
May, 2020 21
Assumptions Louisiana
EUR
21 Bcf (2.8 Bcf/1,000’)
Sales Gas BTU
Price
Adjustment
1.020
Pricing
Differentials/
Transportation
Average - NYMEX less $0.15 / MMBtu
Transportation - $0.30 / Mcf
Fixed Opex Fixed Opex: $3,290 / month
Variable Opex $0.07 / Mcf
Severance Tax Payout or 24 month tax holiday;
thereafter $0.12 / Mcf
Ad Val Tax $0.03 / Mcf
Royalty Burden 27.0%
D&C Capex $11.5 MM
Facilities/Tubing
Capex
$0.408 MM, included in D&C Capex
Spud to 1st Sale 60 Days
PV10 (M$) ($2.75/Mcf Pricing)
$13,453 (Post Capex)
Economic EUR’s vary depending on gas price assumptions.
100
1,000
10,000
100,000
0 20 40 60 80 100 120
Avg D
aily P
roducti
on (M
cfp
d)
Months
7,500' Lateral Type Curve
7,500' Lateral
EUR Capex
(Mmcfe) ($M)
90% 100% 110% 90% 100% 110%
2.00 47.8% 65.5% 85.7% 2.00 86.8% 65.5% 49.6%
2.25 72.8% 97.5% 125.9% 2.25 127.7% 97.5% 75.0%
2.50 102.6% 135.9% 174.8% 2.50 177.5% 135.9% 105.4%
2.75 137.8% 181.9% 233.9% 2.75 237.7% 181.9% 141.3%
3.00 179.0% 236.3% 304.9% 3.00 310.1% 236.3% 183.3%
Ownership: WI 100% - NRI 73%
Pricing: Flat Pricing
AFE: Two well pad.
IRR Sensitivity Analysis Estimates (IRR Sensitivity to EURs and Capex) IRRs Incoporate Early Time Outperformance
Gas
Pri
ce
Gas
Pri
ce
22
Assumptions Louisiana
EUR
25 Bcf (2.5 Bcf/1,000’)
Sales Gas BTU Price Adjustment
1.020
Pricing Differentials/ Transportation
Average - NYMEX less $0.15 / MMBtu Transportation: $0.30 / Mcf
Fixed Opex Fixed Opex: $3,290 / month
Variable Opex $0.07 / Mcf
Severance Tax Payout or 24 month tax holiday;
thereafter $0.12 / Mcf
Ad Val Tax $0.03 / Mcf
Royalty Burden 27.0%
D&C Capex $10.7 MM
Facilities/Tubing Capex
$0.485 MM, included in D&C Capex
Spud to 1st Sale 60 Days
PV10 (M$) ($2.75/Mcf Pricing)
$15,226 (Post Capex)
100
1,000
10,000
100,000
0 20 40 60 80 100 120
Avg D
aily P
roducti
on (M
cfp
d)
Months
10,000' Lateral Type Curve
10,000' Lateral
EUR Capex
(Mmcfe) ($M)
90% 100% 110% 90% 100% 110%
2.00 27.7% 39.9% 53.9% 2.00 54.5% 39.9% 29.4%
2.25 47.8% 65.7% 86.1% 2.25 87.3% 65.7% 50.1%
2.50 72.3% 97.1% 125.6% 2.50 127.4% 97.1% 75.4%
2.75 101.6% 134.7% 173.2% 2.75 175.8% 134.7% 105.5%
3.00 135.8% 179.2% 179.2% 3.00 233.5% 179.2% 140.9%
Ownership: WI 100% - NRI 73%
Pricing: Flat Pricing
AFE: Two well pad.
IRR Sensitivity Analysis (IRR Sensitivity to EURs and Capex) IRRs Incoporate Early Time Outperformance
Gas
Pri
ce
Gas
Pri
ce
Economic EUR’s vary depending on gas price assumptions
May, 2020
Cash Flow Generation With Strong Balance Sheet and Low Trading Multiple Creates an Attractive Entry Point for the Stock
16 Year Inventory on Core Haynesville Position Provides 1+ Tcf of Resource Potential on Acreage Held By Production
A Continued Reduction in Per Unit Cash Costs Driven By High Volume Low Lifting Costs Wells
Optionality on 2020 Capital Plans Expected to Deliver Additional Growth and Free Cash
May, 2020 23