TULSA, OK, Oct. 18, 2022 (GLOBE NEWSWIRE) -- Laredo Petroleum, Inc. (NYSE: LPI) ("Laredo" or the "Company") today disclosed selected preliminary third-quarter 2022 financial and operating results. The Company plans to announce complete third-quarter 2022 financial and operating results after the market close on Thursday, November 3, 2022, with a conference call planned for the following day. Details can be found within this release.
Third-Quarter 2022 Selected Preliminary Financial and Operating Results
Production. The Company's third-quarter 2022 total production averaged ~79.5 thousand barrels of oil equivalent per day ("MBOEPD"), within guidance of 78.5 - 81.5 MBOEPD. Oil production for the quarter averaged ~35.0 thousand barrels of oil per day ("MBOPD"), below guidance of 35.5 - 37.5 MBOPD. Oil production was negatively impacted as offset operator completions in Howard County affected more Laredo wells than expected. Of the impacted wells, newer, higher-production packages have returned to previous production expectations while older packages are taking longer than anticipated to return to expected production levels.
The Company expects fourth-quarter 2022 total and oil production to be 72.5 - 75.5 MBOEPD and 32.0 - 34.0 MBOPD, respectively. Updated fourth-quarter expectations include revised assumptions related to the impact of offset operator completions, production downtime due to increased equipment lead times and an ~1.6 MBOEPD (75% oil) reduction in volumes related to the divestiture of non-operated acreage, which closed on October 3, 2022.
Realized Pricing and Commodity Settlements. Realized prices for oil, NGL and natural gas for third-quarter 2022 were approximately $96.00 per barrel, $29.10 per barrel and $5.90 per Mcf, respectively. Net settlements paid for matured commodity derivatives for third-quarter 2022 totaled ~$125 million.
Capital Investments. Total incurred capital expenditures during the third quarter were ~$140 million, excluding non-budgeted acquisitions and leasehold expenditures, higher than guidance of ~$120 million. Increased investments were related to the timing of drilling and completions activity and facilities/infrastructure build out.
Fourth-quarter 2022 capital expenditures are expected to be $135 - $145 million, in-line with third-quarter 2022 levels.
Operating Expenses. Lease operating expenses ("LOE") in third-quarter 2022 were ~$6.05 per barrel of oil equivalent ("BOE") versus guidance of $5.70 per BOE. The increase from guidance was driven primarily by remediation operations on the Leech package and unplanned workover activity.
General and Administrative Expenses. General and administrative ("G&A") expenses for third-quarter 2022, in aggregate, were ~$1.60 per BOE versus guidance of $2.50 per BOE. Cash and non-cash long-term incentive plan expenses were positively impacted by adjustments associated with the departure of the Company’s Chief Operating Officer. < Good and very "interesting".
Equity and Debt Repurchases. During the third quarter of 2022, Laredo purchased 244,687 shares of its common stock for $17.5 million at an average price of $71.56 per share. Diluted weighted-average common shares for the quarter were ~16.8 million. < Lower share count is a big +.
During third-quarter 2022, the Company purchased $152.5 million face value of term-debt at 98% of par value. Term-debt outstanding at the end of the quarter was $1.154 billion. < Less debt is good.
Liquidity. At September 30, 2022, the Company had $40 million drawn on its $1.0 billion senior secured credit facility. Including cash and cash equivalents of $50 million, total liquidity was $1.01 billion. < Good news.
Closing of Divestiture. On October 3, 2022, Laredo closed the previously announced divestiture of certain non-operated properties in Howard County for total proceeds of $110 million.
Third-Quarter 2022 Earnings Release and Conference Call
Laredo will report full third-quarter 2022 financial and operating results and updated fourth-quarter 2022 guidance after the market close on Thursday, November 3, 2022, and will host a conference call and webcast on Friday, November 4, 2022, at 7:30 a.m. CT to discuss the results.
To participate on the call, dial 800.715.9871, using conference code 1804797 or listen to the call via the Company's website at www.laredopetro.com, under the tab for "Investor Relations | Event Calendar." A replay will be available following the call via the Company’s website.
About Laredo
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 in the Permian Basin of West Texas.
--------------------------
Production for Q3 is disappointing, but operating cashflow should still be close to $13/share for the quarter, vs $14.43 CFPS in Q2. I will post an updated forecast/valuation model tomorrow.
Laredo Petroleum (LPI) Q3 Results - Oct 18
Laredo Petroleum (LPI) Q3 Results - Oct 18
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Laredo Petroleum (LPI) Q3 Results - Oct 18
Q4 is worse
2022 total and oil production to be 72.5 - 75.5 MBOEPD and 32.0 - 34.0 MBOPD, respectively. Updated fourth-quarter expectations include revised assumptions related to the impact of offset operator completions, production downtime due to increased equipment lead times and an ~1.6 MBOEPD
Production drops 7.5 and the excuse was sold 1.8 m. Where's the other 7.0 m?
The new wells are a disaster
2022 total and oil production to be 72.5 - 75.5 MBOEPD and 32.0 - 34.0 MBOPD, respectively. Updated fourth-quarter expectations include revised assumptions related to the impact of offset operator completions, production downtime due to increased equipment lead times and an ~1.6 MBOEPD
Production drops 7.5 and the excuse was sold 1.8 m. Where's the other 7.0 m?
The new wells are a disaster
Re: Laredo Petroleum (LPI) Q3 Results - Oct 18
Piper Sandler cut from 83 to 71
Down 10 %, What a f'n disaster
Down 10 %, What a f'n disaster