Why Goodrich Petroleum Corporation's Shares Plunged
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of oil and gas company Goodrich Petroleum Corporation 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.
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The article Why Goodrich Petroleum Corporation's Shares Plunged originally appeared on Fool.com.Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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