One of our members just called me about Laredo Petroleum (LPI). My valuation is still $19/share, compared to First Call's Target Price of $13.83. Nothing has changed because.....
> 100% of this year's oil production is hedged at $80.99/bbl. 60% of 2016 production is hedged at $81.84/bbl.
> 60% of this year's natural gas is hedged at $3.00/mcf, 70% of 2016 gas production is hedged at $3.00/mcf.
Liquidity
On May 4, 2015, in connection with the regular semi-annual redetermination of the Company`s senior secured credit facility, lenders increased the Company`s borrowing base to $1.25 billion and the Company increased its aggregate elected commitment amount of $1.0 billion. At May 5, 2015, the Company had approximately $13 million in cash and equivalents and an outstanding balance of $60 million under the senior secured credit facility, resulting in total liquidity of approximately $950 million.
March 5, 2015 - Laredo Petroleum, Inc., a Delaware corporation (LPI) ("Laredo" or the "Company"), announced today the closing of the underwritten public offering of 69,000,000 shares of its common stock at a price to the public of $11.05 per share, including all 9,000,000 shares of common stock that were subject to the underwriter`s option to purchase additional shares. The Company intends to use the net proceeds from the sale of the shares of common stock, together with the net proceeds from its previously announced senior notes offering expected to close on or about March 18, 2015, to repay all of its outstanding indebtedness under its senior secured credit facility, to redeem the outstanding $550 million of its 9 1/2% senior unsecured notes due 2019 and for capital expenditures.