Laredo Petroleum (LPI) Update from RJ - July 9

[dan_s]

Note from John Freeman at Raymond James 7-8-2021

Laredo Petroleum, Inc.
Updating Estimates for Pre-Release/Guidance Announcement; Reiterate Outperform
LPI-NYSE | $75.02
Before the open, Laredo provided a 2Q21 ops update along with updated pro-forma
Outperform 2 | $100.00 target
2021/2022 guidance. The company reported 2Q21 oil volumes of 26.4 Mboe/d, 3%/2%
below RJ/consensus estimates of 27.3/27.1 Mbo/d (though total production was still
1%/2% above RJ/consensus) due to delays related to third party connections and weather
related downtime. Laredo also announced a pro-forma capital plan that accelerated
activity relative to RJ/consensus expectations (further details below). The updated activity
cadence suggests 2022 FCF of $250M (RJe) while still generating >$40M in FCF in 2021.
We reiterate our Outperform rating and raise our target price to $100/share after updating estimates.