What: Shares of oil and gas company Goodrich Petroleum Corporation (NYSE: GDP ) fell 20% yesterday after reporting earnings.
So what: Fourth quarter revenue was up about 50% to $50.6 million but fell well short of the $62.4 million analysts expected. On the bottom line, Goodrich lost $30.9 million, or $0.73 per share, also below the $0.48 loss analysts expected.
Now what: A drop in realized price for natural gas from $7.24 per Mcfe to $6.81 per Mcfe overshadowed a rise in production but growth clearly wasn't up to expectations. Even a 36% increase in proved reserves to 452.2 Bcfe wasn't enough for investors. I'll stay out of Goodrich as losses continue to mount because I just can't see the point when the company turns a corner to profitability.
Better ways to play domestic energy growth
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.