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Here's Why Goodrich (GDP) Is an Attractive Investment Bet Now

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Goodrich Petroleum Corporation (GDP - Free Report) has witnessed an upward estimate revision for 2021 and 2022 earnings in the past 30 days. Currently, the upstream energy firm carries a Zacks Rank #2 (Buy).

Factors Favoring the Stock

The company is a leading upstream energy firm with operations spread across prolific natural gas and oil resources like Haynesville Shale, the Tuscaloosa Marine Shale and the Eagle Ford Shale.

Notably, in the core of Haynesville Shale area in Caddo Parish, LA, the company made an acquisition of additional 2,000 net acres through the December quarter of 2020. With this buyout, the company’s total net acres from Haynesville Shale now stand at 26,000 net acres. Importantly, its long-term production outlook seems bright with more than 12 years of inventory of core drilling locations in Haynesville Shale.

It is to be noted that the company’s majority production comprises natural gas. Thus, it is well positioned to gain this year as analysts are expecting the residential and industrial natural gas consumption to grow with economic recovery.

Remarkably, the U.S. Energy Information Administration (EIA) predicts the residential consumption of natural gas to average 13.1 billion cubic feet per day (Bcf/d) in 2021, suggesting an increment of 0.4 Bcf/d from the 2020 reported figure. EIA also projects industrial consumption to average 23.8 Bcf/d in 2021, suggesting a gain of 1.3 Bcf/d from the 2020 reported number, courtesy of the reopening of manufacturing activities.

Other Stocks to Consider

Other prospective players in the energy space include Diamondback Energy, Inc. (FANG - Free Report) , Matador Resources Company (MTDR - Free Report) and Magnolia Oil & Gas Corporation (MGY - Free Report) , all stocks sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Diamondback is likely to see earnings growth of 112.5% in 2021.

Matador is likely to see earnings growth of 300% for the ongoing year.

Magnolia Oil & Gas has witnessed an upward estimate revision for 2021 earnings in the past 30 days.

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