UPDATE: Global Hunter Securities Upgrades Goodrich Petroleum to Buy
Global Hunter Securities raises its rating on Goodrich Petroleum (NYSE: GDP) to Buy on hte company's transition to oil and the upside to Tuscaloosa.
Global Hunter Securities says, "Two things are currently going on with GDP, both positive: 1) An aggressive transition to oil: 10% of 2011's production was oil, ramping to an estimated 23% in 2012 and then to 40% in 2013. Such a move lights a fire under EBITDAX, growing it 34% in 2012 and 41% in 2013, according to our estimates, despite total production growth likely turning slightly negative in 2012; and 2) Tuscaloosa upside: GDP entered this MS/LA oil play early, paying $175/acre to aggregate 80,000 acres. Early indications are that GDP is in the right portion of the basin (in the oil window, at the right depth, and in the neighborhood of Encana's (ECA) recent horizontal that maxed >1,000 boed)."
GDP closed at $15.95 a share on Monday.
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