HOUSTON - Goodrich Petroleum Corporation (NYSE American: 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.
GOODRICH PETROLEUM CORPORATION 
