- Goodrich’s latest two TMS wells had IP rates well below the play’s cutting-edge rates.
- On the positive side, however, the wells extend the pattern of execution without mechanical problems, which is a critical factor for the play’s success.
- While this morning’s announcement has moderate negative implications for GDP, the stock’s 10% drop appears to be an over-reaction.
- Given the busy completions calendar in the pay, a single strong well may be enough to reassure investors.
- GDP stock remains a binary bet on the TMS. Risks are amplified by the financial leverage. However, in the event the play succeeds, the upside may be substantial.