Goodrich Petroleum has recently added to its existing hedge position by executing a zero cost collar on 10,000 MMBtu per day for a three year period including all of 2010, 2011, and 2012. Under the terms of this transaction, the Company put in place a floor of $6.00 per MMBtu and a ceiling of $7.40 per MMBtu.
The transaction increases the Company's total 2010 volumes hedged to 20,000 MMBtu per day at a floor price of $6.00 and an average ceiling price of $7.275. These hedges are in addition to the Company's hedges in place for the remainder of 2009 of 60,000 MMBtu per day at an average swap and floor price of $8.61. Additionally, the Company has hedged a portion of its East Texas basis exposure at $0.47 per MMBtu on 60,000 MMBtu per day for the remainder of 2009, and at $0.37 per MMBtu on 50,000 MMBtu per day for calendar year 2010.
The Company also realized gains on its commodity derivative portfolio for the just-completed third quarter of approximately $27.6 million.
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