Yesterday, we recapped a sticky issue over at Goodrich Petroleum (GDP) regarding a successfully fracked well that got clogged.
Agence France-Presse/Getty Images Goodrich fell 5.1% yesterday but things have begun to normalize for Goodrich shares today, as at least one analyst weighed in this morning with a note saying this is a minor setback at best.
SunTrust Robinson Humphrey's Neil Dingmann explains that there’s no need to pull the plug on Goodrich’s shares:
It is not uncommon for a well to become plugged during the flowback stage, especially using new technology (dissolvable frac plugs). However, we still anticipate an initial production rate over 700 barrels per day, possibly rivaling the Smith 5-29H-1 (about 1,000 barrels per day) and coming online potentially as soon as early January. In addition, the Weyerhaeuser 51-1H-1 should be completed and initial production next month and the CMR 8-5H-1 should come online a few weeks later. We also still soon anticipate the announcement of a large acquisition by another operator in the Tuscaloosa Marine Shale (TMS).
Dingmann also notes that shares have been under pressure as investors worry over well completion, and that turnaround in the form of a few good wells will ease that worry.
Shares of Goodrich have gained 0.2% to $16.46 at 11:07 a.m. today, while Cabot Oil & Gas (COG) has fallen 0.2% to $38.39, Anadarko Petroleum (APC) has gained 0.4% to $78.50, Range Resources (RRC) is little changed at $83.56 and Pioneer Natural Resources (PXD) is little changed at$186.36.
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