Last week was rich with significant developments at Goodrich Petroleum Corporation (GDP). The company made public the results of its most recent Tuscaloosa Marine Shale ("TMS") well, priced a successful equity offering, and announced major decisions related to its TMS operations.
The announced plan to move from a one-rig drilling program to a five-rig program in the TMS is radical and equates to a major change in the company's asset complexion. It also signals the company's strong confidence in the play's commerciality. The capital re-allocation built into Goodrich's new budget also hints at a possibility of strategic divestitures that would finish the transformation of the stock into a pure TMS play.
The successful equity financing and new capital...
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