Goodrich Petroleum Corp. (NYSE:GDP) Q1 2019 Earnings Conference Call Transcript
May 08, 2019 • 11:00 am ET
Good morning and welcome to the Goodrich Petroleum First Quarter 2019 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Gil Goodrich, Chairman and Chief Executive Officer. Please go ahead.
Walter G. Goodrich
Hello and good morning, everyone. Thank you again for participating in our first quarter earnings call this morning. We are very pleased to have a chance and the opportunity to share with you our results and to provide you an update on our current activities as well as the plans we have for the rest of this year. In conjunction with the call, we've again prepared a slide presentation and we invite you to follow the slide deck during our prepared remarks. You can access the slide presentation on the Goodrich Petroleum website entitled 1Q '19 Earnings Presentation.
During first quarter, we continued to make good progress towards our stated goals and objectives for 2019. As outlined in our previous full-year guidance, we expect production volumes to double in 2019 versus 2018 on a preliminary capital expenditure budget of $90 million to $100 million. While these are our current plans, we maintain great flexibility to accelerate or decelerate our levels of development activity based on market conditions and quarterly review and approval by our Board.
Based on the preliminary plan and with the strong hedge position, we currently have of 100 million cubic feet of gas per day hedged for the remainder of this year at $2.89 per Mcf. We expect full year EBITDA will be within the same range as the capital expenditures. Working towards that objective, we added to production our Cason-Dickson 3H and 4H wells at Thorn Lake in Red River Parish of North Louisiana in the middle of the first quarter, which provided sequential production growth during the quarter.
More importantly, however, since the end of the first quarter, we have added three outstanding wells, including our Loftus 27 and 22 1H and 2H wells, which are 7,500-foot laterals with a combined gross initial production rate in excess of 50 million cubic feet per day as well as our MSR Hunt 5H-1 in the Bethany-Longstreet Field of DeSoto Parish, which is a 4,600-foot lateral with an initial production rate of approximately 17 million cubic feet per day.
Collectively, these three wells' initial rates have added over 40 million cubic feet of gas per day to our net production volumes and resulted in a current net production rate in excess of the midpoint of our full year 2019 production guidance. I will now turn to the slide presentation for those of you who would like to follow along and our standard disclaimer, forward-looking statements and risk factors are highlighted for you on Slide 2.
On Slide 3, you'll see a brief overview of the Company which includes highlights of our core Northwest Louisiana Haynesville shale position where we maintain a 10-year inventory of delineated development locations at the 2019 rate of development. While we maintain