Laredo Petroleum, Inc. (NYSE:LPI) (“Laredo” or the “Company”) will
host a conference call on Thursday, November 3, 2016 to discuss its
third-quarter 2016 financial and operating results. The Company
also announces preliminary results for its commodity derivatives
for third-quarter 2016 and its basic and diluted weighted-average
shares outstanding.
Third-Quarter 2016 Earnings Conference
Call
Laredo plans to release third-quarter 2016 earnings
on Wednesday, November 2, 2016 after the market close and the
Company will host a conference call on Thursday, November 3, 2016
at 7:30 a.m. CT (8:30 a.m. ET) to discuss its third-quarter 2016
financial and operating results. Individuals who would like to
participate on the call should dial 877.930.8286 (international
dial-in 253.336.8309), using conference code 99103479 or listen to
the call via the Company's website at www.laredopetro.com, under
the tab for "Investor Relations." A telephonic replay will be
available approximately two hours after the call on November 3,
2016 through Thursday, November 10, 2016. Participants may access
this replay by dialing 855.859.2056, using conference code
99103479.
Commodity Derivatives Update
For the three months ended September 30, 2016,
Laredo expects to report a gain on derivatives of approximately
$6.9 million, including approximately $41.6 million net cash
received on settlements of matured derivatives, net of deferred
premiums paid. Although management does not expect these numbers to
change, they are preliminary and unaudited.
Laredo maintains an active hedging program to
reduce the variability in its anticipated cash flow due to
fluctuations in commodity prices. At September 30, 2016, the
Company had hedges in place for the fourth quarter of 2016 for
1,861,350 barrels of oil at a weighted-average floor price of
$67.13 per barrel and 4,692,000 million British thermal units
("MMBtu") of natural gas at a weighted-average floor price of $3.00
per MMBtu.
At September 30, 2016, for 2017, the Company had
hedged 5,684,875 barrels of oil at a weighted-average floor price
of $57.01 per barrel, 18,771,000 MMBtu of natural gas at a
weighted-average floor price of $2.65 per MMBtu, 444,000 barrels of
ethane at $11.24 per barrel and 375,000 barrels of propane at
$22.26 per barrel. Subsequently, the Company hedged an additional
1,168,000 barrels of oil for 2017 and currently has 6,852,875
barrels of oil hedged for 2017 at a weighted-average floor price of
$55.82 per barrel. A large portion of the Company's 2017 oil hedges
retain the benefit of an increase in the price of oil with
3,796,000 barrels structured as collars with a weighted-average
ceiling price of $86.00 per barrel and 1,049,375 barrels are puts
and do not have a ceiling.
At September 30, 2016, for 2018, the Company had
hedged 2,144,375 barrels of oil at a weighted-average floor price
of $55.98 per barrel and 12,855,500 MMBtu of natural gas at a
weighted-average floor price of $2.50 per MMBtu.
Laredo records all derivatives on its balance sheet
as either assets or liabilities measured at their estimated fair
value. Laredo has not designated any derivatives as hedges for
accounting purposes and Laredo does not enter into such instruments
for speculative trading purposes. Gain (loss) on derivatives is
reported under "Non-operating income (expense)" in Laredo's
consolidated statement of operations.
Weighted-Average Shares
Outstanding
For the three months ended September 30, 2016,
basic and diluted weighted-average shares outstanding were
approximately 234.639 million and 238.108 million, respectively.
For the nine months ended September 30, 2016, basic and diluted
weighted-average shares outstanding were approximately 221.303
million and 223.197 million, respectively.
About Laredo
Laredo Petroleum, Inc. is an independent energy
company with headquarters in Tulsa, Oklahoma. Laredo's business
strategy is focused on the acquisition, exploration and development
of oil and natural gas properties, and the transportation of oil
and natural gas from such properties, primarily in the Permian
Basin in West Texas.
Additional information about Laredo may be found on
its website at www.laredopetro.com.
Forward-Looking StatementsThis
press release contains forward-looking statements as defined under
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical facts, that address
activities that Laredo assumes, plans, expects, believes, intends,
projects, estimates or anticipates (and other similar expressions)
will, should or may occur in the future are forward-looking
statements. The forward-looking statements are based on
management's current belief, based on currently available
information, as to the outcome and timing of future events.
General risks relating to Laredo include, but are
not limited to, the decline in prices of oil, natural gas liquids
and natural gas and the related impact to financial statements as a
result of asset impairments and revisions to reserve estimates, and
other factors, including those and other risks described in its
Annual Report on Form 10-K for the year ended December 31, 2015,
and those set forth from time to time in other filings with the
Securities Exchange Commission (“SEC”). These documents are
available through Laredo’s website at www.laredopetro.com under the
tab “Investor Relations” or through the SEC’s Electronic Data
Gathering and Analysis Retrieval System at www.sec.gov. Any of
these factors could cause Laredo's actual results and plans to
differ materially from those in the forward-looking statements.
Therefore, Laredo can give no assurance that its future results
will be as estimated. Laredo does not intend to, and disclaims any
obligation to, update or revise any forward-looking statement.
Contacts:Ron Hagood: (918) 858-5504 -
RHagood@laredopetro.com
16-19
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