Goodrich Petroleum files for Chapter 11 bankruptcy

Mike Snider, USA TODAY
11:35 a.m. EDT April 15, 2016

(Photo: Goodrich Petroleum)

Oil and gas producer Goodrich Petroleum Corp., filed for Chapter 11 bankruptcy Friday, making it the latest energy company to succumb to an ongoing energy price slump.

The Houston-based company, with primary oil and natural gas operations in Louisiana, Mississippi and Texas, expects to continue its operations during the restructuring, a process which will eliminate $400 million in debt.

Back in January, Goodrich Petroleum (GDPM) was delisted from the New York Stock Exchange and now trade over the counter. At the time, the company initiated a debt-for-equity exchange noting that "the current low commodity price environment ... has had a significant, adverse impact on the Company" and warning of possible bankruptcy. Last month, the company failed to make payments to bondholders, exercising 30-day grace periods.

Low oil prices have caused repercussions throughout the energy industry. In North America, at least 59 oil and gas producers have filed for bankruptcy since the beginning of 2015, according to an April report by law firm Haynes and Boone.

On Thursday, another Houston company Energy XXI Ltd. (EXXI), with operations in and along the
Gulf of Mexico, also filed for bankruptcy.

And on Wednesday, the largest coal miner in the U.S.,
Peabody Energy, filed for bankruptcy.

Overall, Goodrich owns interests in 193 oil and natural gas wells within 43 fields in eight states.

During 2015, Goodrich's average daily production fell 36% to 7,306 barrels daily. Its net loss of $409.9 million was 7% higher than in 2014; oil and gas revenues fell 62% to $79 million.

Goodrich had total assets in 2015 of $99 million, down from $722.1 million in 2014 and liabilities of $507 million, according to its annual report filed March 30.

The bankruptcy "will allow for the restructuring of the Company's balance sheet, which will strengthen the Company's financial position by reducing long-term debt and enhancing financial flexibility," the company said Friday.