Goodrich Petroleum completed a 8 for 1 reverse split last year and traded briefly around $8 (the old shares had traded in a range of $1-1.50), then went into a prolonged slide to under one dollar based on falling energy prices and financial problems due to lack of cash flow from production when oil hit $10 barrel and they had problems managing their debt.
GDP currently has 5.5 million shares on issue and current oil prices around $24 barrel have saved the day. The stock has moved up rapidly trading up from $1 last week to a high of $2.50 (currently at $2.12). They have a tiny market cap of around $12M, published assets of $41M based on oil at $9.37 a barrel and gas at $2.24, and debts of $29.5M. At to-days oil of $24 a barrel my guess is that the assets are worth around $65M.
They were due to be de-listed from the NYSE but to-day the NYSE agreed to allow the listing to continue based on a new business plan which was also announced to-day which will raise $15M by way of a combination of new shares and convertible debt financing at $4 per share. With oil prices rising sharply the company plans to announce new acquisitions and an aggressive drilling program.
At a current market cap of $12M the stock looks very interesting with plenty of up-side. |
