Goodrich Petroleum to Issue Stock to Fund Drilling Expansion

To help fund an increase in drilling in the Tuscaloosa Marine Shale, or TMS, region from two to five horizontal rigs by the end of 2014, Goodrich Petroleum (NYSE: GDP  ) announced today its intention to offer 6 million shares of common stock. Underwriters of the stock offering have a 30-day option to purchase as many as 900 million additional shares, according to Goodrich.

Following the stock offering, which Goodrich said is dependent on "market and other conditions," it will have approximately 42.76 million shares outstanding, or 43.66 million shares should the underwriters exercise their options for all the additional 900 million shares.

Goodrich, according to the SEC filing related to its public offering, estimates the net proceeds will amount to $153.4 million, or approximately $176.4 million if the underwriters exercise their options. The proceeds, in addition to funding the expansion of Goodrich's TMS drilling efforts, will be used to pay down its existing senior credit facility.

Goodrich Petroleum's stock closed at $26.20 a share today, down 2.42%.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2683749, ~/Articles/ArticleHandler.aspx, 10/20/2014 1:09:19 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement