Laredo Petroleum (LPI) Update - April 18

[dan_s]

On February 22nd, Laredo said they expect to "Generate 2022 Free Cash Flow of >$300 million at $80 WTI and $4.65 Henry Hub"

Based on my updated forecast/valuation model, Laredo should generate close to $400 million of FCF from operations this year.
My valuation increases by $12 to $145.

Laredo has less than 17.5 million shares of common stock outstanding, so their per share results are "stunning".
> 2021 Actuals: Reported Net Income per share was $8.49. Adjusted Operating Cash flow per share was $26.42
> 2022 Forecast: Adjusted Net Income per share s/b $27.85. Adjusted Operating Cash flow per share s/b $51.50
> 2023 Forecast based on $90/bbl WTI and $5.00/mcf HH bas: Adjusted Net Income per share s/b $38.03. Adjusted Operating Cash Flow per share s/b $63.90.

The average net income and operating CFPS forecasts submitted to TipRanks are just slightly lower than my forecasts for 2022 and 2023.

On 4/2/2022 Derrick Whitfield at Stifel Nicolaus rated LPI a Buy with a price target of $160.00