Goodrich Petroleum cuts capital expenditure budget 25%

Goodrich Petroleum Corp., Houston, has lowered its 2020 preliminary capital expenditure budget to $40-50 million from the $55-65 million 2020 guidance reported in December 2019. The company now expects to grow production by 5-7% versus 2019 to a range of 50–52 bcfe compared to its previous production growth expectation of 12.5–17.5% versus 2019 to a range of 53–56 bcfe.

As previously expected, the company will allocate the majority of the budget to drilling and completing core Haynesville Shale wells in the Bethany-Longstreet area of Caddo and DeSoto Parishes, La. Natural gas is expected to comprise about 99% of total production.

For full-year 2019, capital expenditures totaled $98.4 million, of which $97.9 million was spent on drilling and completion costs.