• Mon. Nov 30th, 2020

Pharma Oracle

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Keep Your Eyes on This Stock Alert: Laredo Petroleum, Inc. (NYSE: LPI)

On 11 March 2020, Laredo Petroleum, Inc. (NYSE: LPI) changed -35.67% to recent value of $0.57. The stock transacted 8401682 shares during most recent day however it has an average volume of 6454.25K shares. It spotted trading -84.42% off 52-week high price. On the other end, the stock has been noted 60.41% away from the low price over the last 52-weeks.

Laredo Petroleum, Inc. (LPI) recently reported its fourth-quarter and full-year 2019 results. For the fourth quarter of 2019, the Company stated a net loss attributable to ordinary stockholders of $241.7M, or $1.04 per diluted share, which includes a non-cash full cost ceiling impairment charge of $222.7M. Adjusted Net Income, a non-GAAP financial measure, for the fourth quarter of 2019 was $39.7M, or $0.17 per adjusted diluted share. Adjusted EBITDA, a non-GAAP financial measure, for the fourth quarter of 2019 was $137.9M.

2019 Full-Year Highlights

Generated $475.1M of net cash provided by operating activities and $59.7M of Free Cash Flow in 2019 as the Company reduced capital expenditures by 25% from full-year 2018

Executed two accretive acquisitions of high-margin, oily inventory at valuations importantly below historic averages while maintaining a competitive leverage ratio

Produced 28,429 barrels of oil per day (“BOPD”) and 80,883 barrels of oil equivalent (“BOE”) per day, increases of 2% and 19%, respectively, from full-year 2018

Grew total proved reserves by 55M BOE and proved oil reserves by 17M barrels, increases of 23% and 27%, respectively, versus year-end 2018

Drove well costs down to $6.6M for a 10,000-foot lateral with the Company’s standard completion design, a decrease from $7.7M at year-end 2018

Reduced controllable cash costs of combined unit lease operating expenses (“LOE”) and unit cash general and administrative expenses (“G&A”) to $4.65 per BOE, a 23% decrease from full-year 2018 results of $6.07 per BOE

Received net cash of $48.7M on settlements of derivatives, as the Company’s hedges mitigated the impact of commodity price declines

“During 2019, we successfully completed our transition to a returns-focused, free-cash-flow-oriented strategy,” stated Jason Pigott, President and Chief Executive Officer. “We substantially improved well productivity, aligned staffing with our moderated development plan and continued to drive down both our well costs and operational expenses. Our strong performance in all facets of the business drove improved capital efficiency and Free Cash Flow generation of about $60M for full-year 2019.”

“We leveraged our strengths to complete two accretive acquisitions in oilier areas of the Midland Basin,” continued Mr. Pigott. “By deploying our proven operational expertise on acreage with higher oil content, we expect to further improve margins and capital efficiency and drive our oil mix above 40% by 2022. Our development program over the next three years is designed to maintain production levels, generate positive Projected Free Cash Flow at $50 per barrel and deliver over $100M in Projected Free Cash Flow at $55 per barrel.”

“Financially, we are well positioned to continue delivering on our returns-focused strategy. In January of 2020, we opportunistically refinanced our senior unsecured notes, extending our maturities to 2025 and 2028. For 2020, we have hedged a substantial portion of our predictable production at prices well above current levels. Laredo is committed to maintaining its financial strength, improving inventory quality and utilizing Free Cash Flow to reduce debt.”

LPI has a gross margin of 66.10% and an operating margin of -43.80% while its profit margin remained -40.90% for the last 12 months. Its earnings per share (EPS) expected to touch remained -206.40% for this year while earning per share for the next 5-years is expected to reach at -9.07%.  The company has 277.46M of outstanding shares and 179.25M shares were floated in the market. According to the most recent quarter its current ratio was 1.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of -51.68% from the mean of 20 days, -68.91% from mean of 50 days SMA and performed -76.38% from mean of 200 days price. Company’s performance for the week was -36.27%, -64.37% for month and YTD performance remained -80.14%.

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