Goodrich Petroleum GDP-NYSE Message Board

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Gold/Mining/Energy : Goodrich Petroleum GDP-NYSE

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To: Lawrence Burg who wrote (3)	1/22/2000 6:15:00 PM
From: richard badauskas	of 7

Stock is now around $3 with market cap of $15M for 5M shares (undiluted for recent financing), float is very, very small. September qtr free cash flow was $1.5M with oil around $24 per barrel. GDP has increased its oil production by 50% to around 1,350 b/p/d so my guess is that Dec. qtr numbers will show free cash flow of around $2.5M. At an annualized rate we have $10M. With oil hitting around $24 at end of Dec. ( based on the SEC valuation guidelines for oil leases) we will see a very, very healthy valuation upgrade for 1999. With oil around $30 per barrel we can probably add an additional $4 x (1350 barrels x 90 days) = $485,000 for the March qtr for free cash of around $2.9M per qtr. (assuming oil holds around $28 as indicated by March futures). Gas futures seem to have been pretty steady and I have assumed that production remains steady and prices remain around $2.40-80 per thousand cubic feet for all qtrs BUT the possibility remains that they may shot upwards following the dramatic increase in oil prices. This potential could add substantially to free cash flow going forward. GDP has been very quite BUT the recent financing injected $15M in September which is a good vote of confidence. Last bought GDP at $1 for a quick ride to $2.50 in September. Now back in at $3 after a three month consolidation around $3. As the supply of stock is very very tight expect to see a sharp rally of several dollars to around $5-6 where the next resistance level stands. On an undiluted basis this is still $30M market cap AND listed on NYSE. Probably one of the smallest issues on that exchange. I am assuming that a drill program should start up shortly which may lift the stock higher. I think that with a little more buying this stock has lots of potential.

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