Laredo Petroleum Revenue Higher on Permian Activity

Independant Energy group Laredo Petroleum reported mixed first quarter earnings after the close Wednesday. $LPI revenue were boosted by oil and natural gas production in the Permian Basin of West Texas.

Independant Energy group Laredo Petroleum reported first quarter earnings after the close Wednesday. $LPI results were boosted by oil and natural gas production in the Permian Basin of West Texas.

Laredo Petroleum

 Earnings: 

First-quarter profit of $86.5 million, 36 cents per share. Earnings, adjusted for non-recurring gains, were 24 cents per share missing Wall Street expectations of 25 cents per share. Revenue of $259.7 million however beat street forecasts of $204.7 million.

Laredo Petroleum Inc NYSE: $LPI

Market Reaction >Pre-market 9.49 −1.43 (-13.10%)

 Laredo Petroleum Acerage

2018 First-Quarter Highlights

  • Produced a Company record 63,314 barrels of oil equivalent (“BOE”) per day and increased anticipated production growth for full-year 2018 to greater than 12%
  • Reduced unit cash costs to $8.74 per BOE, a decrease of approximately 4% from the first quarter of 2017
  • Increased Adjusted EBITDA to $143.4 million, up 33% from the first quarter of 2017
  • Repurchased 6,727,901 shares of common stock at a weighted-average price of $8.69 per share for $58.5 million under the Company’s share repurchase program

Outlook

The Company is increasing its anticipated full-year 2018 total production growth guidance to greater than 12% and reiterating previously-issued oil production growth guidance of greater than 10% as compared to 2017. Quarterly production growth is expected to be uneven as three packages of at least eight wells are scheduled to be brought on production throughout the last seven months of 2018.

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.

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