The biggest player in an oil-rich formation that covers parts of Louisiana and Mississippi is in danger of being delisted by the New York Stock Exchange.
On Thursday, the exchange notified Houston-based Goodrich Petroleum Corp. that its average closing price share has been less than $1 for 30 consecutive trading days. Over the same period, the value of Goodrich’s stock, or its market capitalization, has fallen below $50 million. A stock must clear both those minimum levels to be listed on the exchange.
Goodrich said it plans to notify the stock exchange within 10 business days of its intent to cure both deficiencies. Goodrich has six months to raise its shares’ value to the $50 million level.
Like many exploration and production companies, Goodrich shares have plummeted along with oil prices. Goodrich has leased more than 300,000 acres in the still-developing and expensive-to-drill Tuscaloosa Marine Shale. The company’s bet on the formation has proven punishing. In the last year, Goodrich’s stock price has fallen from more than $22 per share to its current price, 82 cents.