Goodrich Petroleum Corp. (NYSE: GDP) plans to shore up its liquidity by selling off all or part of its Eagle Ford Shale assets in the first half of 2015, the company said Dec. 10.

As with many other independents hurt by oil prices, Goodrich is also reducing its 2015 capex. It will cut spending by up to $200 million, a decrease of up to 54% compared to 2014.

Goodrich owns about 30,000 net acres in the Eagle Ford. It was an early entrant into the play, paying about $1,650 per acre in 2010 and roughly $59 million overall. The company has an average working interest of 72.5% and net revenue interest of 56%.

Goodrich’s board authorized management to explore a sale, which “would significantly enhance the company's flexibility to further expand its development activities under better market conditions,” the company said.

However, Goodrich will sacrifice a large chunk of its oil production in the process. Eagle Ford Shale wells made up about 53% of total oil production and about 28% of total gas equivalent production.

Goodrich’s Eagle Ford proved reserves at the end of 2013 were 12 million barrels of oil equivalent per day (boe/d), including the Pearsall Shale and Buda Lime. As of September, the company had 45 net wells in the play.

Pearce Hammond, managing director and co-head of E&P research for Simmons & Co. International, said the possible sale was unsurprising. The company remains focused on the Tuscaloosa Marine Shale (TMS), where it has committed most of its capex.

Hammond said Goodrich has seen good results in the TMS as it continues to make traction with well cost reductions and announced another strong well with a 24-hour IP rate of 1,375 boe/d.

“The challenge for GDP is that the well cost reductions and improvements the company has made in the TMS have been overwhelmed by the steep fall in oil prices,” Hammond said.

In 2014, the company set a preliminary capital budget of $40 million to drill about six net Eagle Ford wells in Northern La Salle and Southern Frio counties, Texas. In its third quarter 2014 earnings report, Goodrich said that in the nine months of 2014 it spent $50.7 million on drilling and completion, leasehold and infrastructure capital expenditures.

Of greater concern is the company’s debt load.

Mike Kelly, senior analyst, Global Hunter Securities, said in November that Goodrich was facing an increased default risk with the ratio of net debt/EBITDA climbing higher than five times by the end of fiscal year 2014. Goodrich also suffered from negative free cash flow and has drawn $118 million on a $230 million pro forma revolver.

The company said Dec. 10 that it has the liquidity to execute on its plans, provided a November deal to sell its Beckville/Minden assets in Panola and Rusk counties, Texas, closes on Dec. 22. The transaction will bring $61 million in to Goodrich’s coffers.

The company entered the fourth quarter with pro forma liquidity of $134.2 million under its $250 million borrowing base. After closing of a sale of its East Texas properties, the borrowing base will be reduced by $20 million.