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Laredo Petroleum posts net losses for quarter, year

A Laredo Petroleum production pad near Midland, Texas, is seen. [THE OKLAHOMAN ARCHIVES]
A Laredo Petroleum production pad near Midland, Texas, is seen. [THE OKLAHOMAN ARCHIVES]

TULSA — Laredo Petroleum’s top executive declared its efforts to reward investors a success on Wednesday as the company announced its fourth-quarter and full-year results after markets closed.

The company posted a net loss for the fourth quarter of 2019 of about $241.8 million, or $1.04 a share, on total revenues of about $218.1 million.

It posted a free cash flow for the quarter of about $21.8 million.

For the full year, the company posted a net loss of about $342.5 million, or $1.48 a share, on total revenues of about $837.3 million.

It reported free cash flow for the year at about $59.7 million.

In the fourth quarter of 2018, the company had earned a net income of about $149.6 million, while it reported its net income for that year at about $324.6 million.

However, it posted negative cash flows both for the final quarter and entire year in 2018.

Its release highlighted Laredo had generated $475.1 million of net cash through its operating activities in 2019, noting that it had boosted that in part by reducing its capital expenditures by 25%, compared to the previous year.

It also noted the company produced a daily average of 28,429 barrels of oil and 80,883 barrels of oil equivalent in 2019, up 2% and 19% respectively, compared to its 2018 averages.

The company reported it had grown its total proved reserves by 55 million barrels of oil equivalent and proved oil reserves by 17 million barrels, year-over-year.

It also reported it had continued to drive its drilling, completion and lease operating expenses lower in 2019.

“During 2019, we successfully completed our transition to a returns-focused, free-cash-flow-oriented strategy,” Jason Pigott, Laredo’s CEO, stated in the earnings release.

“We substantially improved well productivity, aligned staffing with our moderated development plan and continued to drive down both our well costs and operational expenses.”

The company reported it plans to complete 28 wells with an average lateral length of 8,500 feet during the first quarter of 2020 in its established operational area in the Permian Basin’s Reagan and Glasscock Counties.

The company has moved two of its four contracted drilling rigs, meanwhile, to neighboring Howard County, where the first well of a planned 15-well package has already been drilled and completed.

The company has hedged nearly 17 million barrels of oil production in 2020 at better-than-market pricing now and also has hedged about 23.8 billion British thermal units of natural gas at $2.72 per million BTU.

“Financially, we are well positioned to continue delivering on our returns-focused strategy,” Pigott said.

Jack Money

Jack Money has worked for The Oklahoman for more than 20 years. During that time, he has worked for the paper’s city, state, metro and business news desks, including serving for a while as an assistant city editor. Money has won state and regional... Read more ›