TULSA, OK - February 27, 2014 - Laredo Petroleum, Inc. ( LPI ) ("Laredo" or "the Company"), today announced its 2013 fourth-quarter and full-year results. For the fourth quarter of 2013, the Company reported net income attributable to common stockholders of $68.2 million, or $0.48 per diluted share. Adjusted Net Income, a non-GAAP financial measure, for the fourth quarter of 2013 was $19.1 million, or $0.13 per diluted share. Adjusted EBITDA, a non-GAAP financial measure, for the fourth quarter of 2013 was $111.4 million. For the year ended December 31, 2013, the Company reported net income attributable to common stockholders of $118.0 million, or $0.88 per diluted share, Adjusted Net Income of $75.7 million, or $0.56 per diluted share, and Adjusted EBITDA of $472.2 million.
Adjusted net income per share beat my forecast. - Dan
LPI
Re: LPI
2013 Full-Year Highlights
•Increased Permian production volumes in 2013 to 24,960 barrels of oil equivalent per day ("BOE/D") on a two-stream basis, up approximately 21% from 2012, in spite of significant operational disruptions due to severe winter weather in the fourth quarter of 2013
•Increased Adjusted EBITDA in 2013 to a record $472.2 million
•Increased cash margin per barrel of oil equivalent ("BOE") to $49.67 per BOE in fourth-quarter 2013, up approximately 40% from fourth-quarter 2012
•Increased Permian proved reserves to 203.6 million BOE in 2013 on a two-stream basis, up approximately 27% from year-end 2012
•Replaced approximately 487% of total production at a finding and development cost of $12.00/BOE
•Divested the Company`s Anadarko Basin properties for proceeds of approximately $428 million, net of working capital adjustments, becoming a pure-play Permian Basin producer
•Strengthened the balance sheet and reduced the ratio of debt less cash to Adjusted EBITDA to 1.8 at year end
•Increased liquidity to more than $1 billion at year end
"During 2013, Laredo continued to implement its multi-year plan for the Company`s world-class Permian acreage and made significant progress in positioning the Company for the multi-zone development program that we are executing in 2014," commented Randy A. Foutch, Laredo Chairman and Chief Executive Officer. "We maintained our disciplined, data-driven approach to developing our Permian-Garden City asset by confirming both the vertical and horizontal spacing of laterals and are continuing to gather and process the data needed to further optimize the drilling and completion of horizontal wells. Additionally, we accelerated our build-out of production corridors to efficiently move oil, gas and water both on and off leases. In 2014, we expect to invest approximately 85% of our drilling and completion budget on development drilling and will continue to optimize our development program. Our focus on multi-well pad drilling is expected to further reduce drilling and completion costs while maintaining our strong well results and continuing to enhance our already impressive economics. With the sale of our Anadarko Basin assets, subsequent capital raises and increased, high-quality reserves to underpin our credit facility, we believe we are well positioned to fund our accelerating multi-zone development program and bring forward the value of the Permian-Garden City asset for our stockholders."
•Increased Permian production volumes in 2013 to 24,960 barrels of oil equivalent per day ("BOE/D") on a two-stream basis, up approximately 21% from 2012, in spite of significant operational disruptions due to severe winter weather in the fourth quarter of 2013
•Increased Adjusted EBITDA in 2013 to a record $472.2 million
•Increased cash margin per barrel of oil equivalent ("BOE") to $49.67 per BOE in fourth-quarter 2013, up approximately 40% from fourth-quarter 2012
•Increased Permian proved reserves to 203.6 million BOE in 2013 on a two-stream basis, up approximately 27% from year-end 2012
•Replaced approximately 487% of total production at a finding and development cost of $12.00/BOE
•Divested the Company`s Anadarko Basin properties for proceeds of approximately $428 million, net of working capital adjustments, becoming a pure-play Permian Basin producer
•Strengthened the balance sheet and reduced the ratio of debt less cash to Adjusted EBITDA to 1.8 at year end
•Increased liquidity to more than $1 billion at year end
"During 2013, Laredo continued to implement its multi-year plan for the Company`s world-class Permian acreage and made significant progress in positioning the Company for the multi-zone development program that we are executing in 2014," commented Randy A. Foutch, Laredo Chairman and Chief Executive Officer. "We maintained our disciplined, data-driven approach to developing our Permian-Garden City asset by confirming both the vertical and horizontal spacing of laterals and are continuing to gather and process the data needed to further optimize the drilling and completion of horizontal wells. Additionally, we accelerated our build-out of production corridors to efficiently move oil, gas and water both on and off leases. In 2014, we expect to invest approximately 85% of our drilling and completion budget on development drilling and will continue to optimize our development program. Our focus on multi-well pad drilling is expected to further reduce drilling and completion costs while maintaining our strong well results and continuing to enhance our already impressive economics. With the sale of our Anadarko Basin assets, subsequent capital raises and increased, high-quality reserves to underpin our credit facility, we believe we are well positioned to fund our accelerating multi-zone development program and bring forward the value of the Permian-Garden City asset for our stockholders."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group