Earnings Reports

Google Ad

Independant energy group Laredo Petroleum report third quarter earnings after the close Monday. $LPI revenue is derived from oil and natural gas production in the Permian Basin of West Texas.

Laredo Petroleum

Laredo Petroleum Inc NYSE: $LPI: $PDCE Reported Earnings After Close Monday

$0.24 Missed Exp $0.30 EPS on $257.28 million forecast in revenue 

 Earnings Forecast: 

Laredo Petroleum (LPI) reported results for the quarter ended September 2018 of $55.1 million, or $0.24 per diluted share. Adjusted Net Income, a non-GAAP financial measure, for the third quarter of 2018 was $62.4 million, or $0.27 per diluted share. Adjusted EBITDA, a non-GAAP financial measure, for the third quarter of 2018 was $160.6 million. The consensus was for earnings of $0.30 per share expected. Revenues are expected to be $257.28 million.

 

Laredo Petroleum Inc NYSE: $LPI

Market Reaction - After Hours $5.29▼ 0.17 (-3.11%)

Highlights

  • Produced a Company record 71,382 barrels of oil equivalent ("BOE") per day, an increase of 19% from third-quarter 2017
  • Increased cash flows from operations to $145.9 million, balancing operating cash flows with capital expenditures
  • Increased Adjusted EBITDA to $160.6 million, up 23% from the third quarter of 2017
  • Improved drilling efficiency approximately 25%, reducing average days to drill a normalized 10,000-foot horizontal well to a Company record of 8.6 days from 11.4 days in third-quarter 2017
  • In the third quarter of 2018, Laredo completed 16 gross (16 net) horizontal wells with an average completed lateral length of approximately 11,300 feet.
  • Laredo produced a Company record 71,382 BOE per day in third-quarter 2018, higher than Company guidance of 71,000 BOE per day. 

Outlook

  • Laredo expects to complete 18 gross horizontal wells (15.3 net) in the fourth quarter of 2018 with an average lateral length of approximately 10,000 feet.
  • The Company is currently utilizing four horizontal drilling rigs and two completion crews. Reduced cycle times, driven by continued improvements in operational efficiencies, are expected to enable the early completion of Laredo's budgeted 2018 drilling program.
  • The Company therefore anticipates dropping one completion crew in mid-November and operating with one completion crew for the remainder of 2018.
  • The Company is increasing its anticipated full-year 2018 total production growth guidance to approximately 17% and reducing oil production growth guidance to approximately 7.5% as compared to 2017.

 Laredo Petroleum Acerage

Capital Program

During the third quarter of 2018, Laredo invested approximately $134 million in drilling and completions activities. Other expenditures incurred during the quarter included approximately $5 million in bolt-on land acquisitions, lease extensions and data, approximately $2 million in infrastructure, including LMS investments, and approximately $8 million in other capitalized costs.

Through the first nine months of 2018, Laredo has invested approximately $496 million, excluding non-budgeted leasehold acquisitions of $16 million. The Company expects total capital expenditures, excluding non-budgeted acquisitions of approximately $630 million for full-year 2018, in-line with the previously announced 2018 capital program.

Share Repurchases

During the third quarter of 2018, the Company repurchased 1,170,190 shares of common stock at a weighted-average price of $8.41 per share for $9.9 million. Through September 30, 2018, Laredo has repurchased 11,048,742 shares of common stock at a weighted-average price of $8.78 per share for $97.1 million under the authorized share repurchase program.

About Laredo Petroleum

Laredo Petroleum, Inc. is an independent energy company with headquarters in Tulsa, Oklahoma. Laredo’s business strategy is focused on the acquisition, exploration and development of oil and natural gas properties and the gathering of oil and liquids-rich natural gas from such properties, primarily in the Permian Basin of West Texas.

Laredo’s Permian activities are centered on the east side of the basin approximately 35 miles east of Midland, Texas in primarily Glasscock and Reagan Counties. Today, Laredo has over 140,000 gross acres (with a majority of it being contiguous) and of which 85% is HBP. The principal focus of Laredo’s horizontal drilling activities is an oil play (that also includes a liquids-rich natural gas component) that involves both the Wolfcamp (Upper, Middle, and Lower) and the Cline formations.

Secondary targets include the Spraberry, Canyon, Strawn and ABW intervals. In total, over 12 viable landing points have been identified throughout the stratigraphic section (~ 4,500 ft. thick) as being prospective for development.

Source: Laredo

Live From The Pit

Log in to comment
Discuss this article in the forums (0 replies).