By Asjylyn Loder
in New York
The gains haven’t
come cheaply. Goodrich said earlier this month that it’s trying to whittle its
well costs in the Tuscaloosa Marine Shale down to $11.5 million apiece. The
$1.1 billion company, based in Houston, spent almost $52 million more than it
earned in the first quarter.
The company has
enough money to cover its 2014 capital needs and is working with its board to
fund 2015 as it ramps up drilling, spokesman Daniel Jenkins said in an e-mail.
A successful
well announced last month has propelled Goodrich shares to $25.34, more than
double the 2014 low of $12.28.
While borrowing
to spend is typical of start-up companies, it’s not always sustainable. Forest
Oil, where interest expense totaled 27 percent of revenue in the first quarter,
in February reporteddisappointing well results, and
warned that it might run afoul of its debt agreements. Forest on May 6
announced a plan to sell itself to Sabine Oil & Gas LLC in an all-stock
transaction. Denver-based Forest declined to put a value on the deal. The
company declined comment. Shares have declined 39 percent so far this year.
Credit:
Bloomberg.net
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