- Goodrich Petroleum (GDP -4.2%) is downgraded to Underweight from Overweight at J.P. Morgan on concerns that a prolonged bear market for oil could create more financial strains for the company.
- Earlier this week, GDP unveiled a preliminary 2015 capex budget of $150M-$200M, down ~45% from 2014 levels, and authorized pursuit of strategic alternatives for its Eagle Ford properties, which JPM says indicates the potential need for outside capital by 2016.
- An Eagle Ford sale could raise $250M-$300M, the firm says, which certainly would help with any potential near-term financial strains but likely would reduce cash flow from operations significantly and lower the borrowing base.