Laredo Petroleum, Inc. (NYSE: LPI) ("Laredo" or the "Company")
today announced its second-quarter 2021 financial and operating
results.
Second-Quarter 2021
Highlights
- Announced agreements to purchase the assets of Sabalo Energy,
LLC ("Sabalo") and divest of 37.5% of the Company's legacy proved
developed producing reserves, transforming Laredo's expected future
production mix and Free Cash Flow1 trajectory
- Incurred capital expenditures of $95 million, excluding
non-budgeted acquisitions and leasehold expenditures, and completed
16 wells during second-quarter 2021
- Completed and began flowing back the 13-well Davis package in
Howard County, the Company's third Howard County development
package and first developed on wider spacing
- Produced an average of 85,924 barrels of oil equivalent ("BOE")
per day and 26,440 barrels of oil per day ("BOPD"), both increases
of 9% from the first quarter of 2021
- Held flaring/venting to just 0.29% of produced gas, despite
delayed third-party connections to tank batteries and downtime at
third-party facilities
- Sold 714,526 shares for net proceeds of $45.6 million through
the Company's at-the-market equity program ("ATM program"),
completing the program
Subsequent Highlights
- Closed Sabalo acquisition and divestment of legacy proved
developed producing reserves on July 1, 2021
- Issued $400 million of senior unsecured notes due 2029 and
utilized proceeds to reduce the balance on the Company's senior
secured credit facility
- Extended the maturity of the Company's senior secured credit
facility until 2025, with the borrowing base reaffirmed at $725
million
"During 2021, we have significantly accelerated
Laredo's transformation," stated Jason Pigott, President and Chief
Executive Officer. "The combined Sabalo purchase and sale of legacy
proved developed reserves increased our oil cut and added
additional oil-weighted inventory. We continued to optimize our
development in Howard County by increasing operational efficiency
and completing our first wider-spaced development package. We
improved our financial flexibility by completing a $75 million ATM
program, extending the maturity of our senior secured credit
facility and issuing $400 million of unsecured notes to reduce the
balance on our credit facility. These actions, and our talented
workforce, position us well to continue driving a rapid rate of
change as we focus on our principles of adding high-margin
inventory, risk management and continuous improvement to create
long-term value for our investors."
Second-Quarter 2021 Financial
Results
For the second quarter of 2021, the Company
reported a net loss attributable to common stockholders of $132.7
million, or $10.47 per diluted share, which included a $159.3
million non-cash loss on derivatives. Adjusted Net Income1 for the
second quarter of 2021 was $22.0 million, or $1.71 per adjusted
diluted share. Adjusted EBITDA1 for the second quarter of 2021 was
$97.0 million.
1Non-GAAP financial measure; please see
supplemental reconciliations of GAAP to non-GAAP financial measures
at the end of this release.
Operations Summary
In the second quarter of 2021, Laredo's total
production averaged 85,924 BOE per day, including oil production of
26,440 BOPD. As previously announced, in mid-to-late June, the
Company’s production operations in Howard County were impacted by a
combination of delayed third-party connections to tank batteries,
downtime at third-party facilities due to weather-related events
and lost power in the field. Laredo estimates that the curtailments
and shut-ins reduced second-quarter 2021 total production by
approximately 900 BOE per day, including approximately 700 BOPD of
oil production. Absent these interruptions, the Company's oil
production would have been above the midpoint of its oil production
guidance range for second-quarter 2021.
Laredo maintained its commitment to reducing the
flaring/venting of produced gas during the second quarter of 2021.
Despite the challenges associated with the third-party delays and
downtime, the Company only flared/vented 0.29% of produced gas
during the quarter. Through the first half of 2021, Laredo has
flared/vented 0.25% of produced gas, down from 0.71% for full-year
2020.
The Company completed 16 wells during
second-quarter 2021, three more than anticipated. Operational
efficiencies continued to reduce Laredo's time to drill and
complete wells versus budgeted expectations, which pulled forward
activity and resulted in the three additional completions during
the quarter. Estimated drilling, completions and equipment cost
during second-quarter 2021 remained at $525 per foot as Laredo's
sand mine in Howard County protected the Company from rising sand
prices and continued completions efficiencies offset other service
cost pressures.
The Company's 13-well Davis package was completed
during second-quarter 2021. This was Laredo's third well package in
Howard County and the Company's first package developed on wider
spacing in the Wolfcamp-A formation. Although production data is
still limited, the Davis package is outperforming Laredo's first
two Howard County packages that were developed on tighter spacing
by 19%.
The Company is currently operating three drilling
rigs and one completions crew in Howard and Glasscock counties. One
of the three rigs was inherited with the Sabalo acquisition and is
currently drilling an eight-well package that was spud prior to the
closing of the acquisition. Laredo expects to release the third rig
when drilling is completed and to utilize a second completions crew
through the end of third-quarter 2021 to complete the package. The
Company expects to complete a total of 17 wells during
third-quarter 2021, comprised of the remaining nine wells of the
12-well West package and eight wells of the 12-well Worthy/Buchanan
package.
Operational and General and Administrative
Expenses
Unit lease operating expense ("LOE") for the
second quarter of 2021 was $2.53 per BOE, a decrease of 5% from the
first quarter of 2021. Beginning in third-quarter 2021, the Company
expects unit LOE to approach $4.00 per BOE as more of Laredo's
production comes from Howard County after the closing of the Sabalo
acquisition and the sale of working interests in certain producing
reserves in Laredo's legacy acreage. The expected unit LOE increase
reflects the Company's production shift away from legacy acreage
with a production oil cut of approximately 20% to acreage in Howard
County with a production oil cut of approximately 80%.
Cash long-term incentive plan ("LTIP") expense of
$0.92 per BOE for second-quarter 2021 reflects the 209%
appreciation in Laredo's stock price during the quarter. This
expense is highly correlated to price changes in the Company's
stock and would have been approximately $0.25 per BOE had the price
remained at first-quarter 2021 levels. At a stock price of
approximately $55, the expected expense for third-quarter 2021 is
($0.20) per BOE.
Incurred Capital Expenditures
During the second quarter of 2021, total incurred
capital expenditures were $95 million, excluding non-budgeted
acquisitions and leasehold expenditures, comprised of $79 million
in drilling and completions activities, $4 million in land,
exploration and data related costs, $6 million in infrastructure,
including Laredo Midstream Services investments, and $6 million in
other capitalized costs.
The Company remains in line with its updated
full-year 2021 capital budget, excluding non-budgeted acquisitions
and leasehold expenses, of $420 million. Laredo expects incurred
capital expenditures of approximately $150 million in third-quarter
2021, reflecting transitional activity associated with the
integration of the Sabalo acquisition. Incurred capital
expenditures for fourth-quarter 2021 are expected to decrease to
approximately $105 million as the Company's development activity
returns to normalized levels.
Liquidity
At June 30, 2021, the Company had outstanding
borrowings of $380 million on its $725 million senior secured
credit facility, resulting in available capacity, after the
reduction for outstanding letters of credit, of $301 million.
Including cash and cash equivalents of $194 million, total
liquidity was $495 million. The cash and cash equivalents balance
reflects funds that were subsequently utilized to close the Sabalo
transaction on July 1, 2021.
On July 16, 2021, Laredo closed an offering of
$400 million in aggregate principal amount of senior unsecured
notes due 2029. In conjunction with the closing of the notes
offering, the maturity of the Company's senior secured credit
facility was extended until 2025 and the borrowing base was
reaffirmed at $725 million.
At August 4, 2021, the Company had outstanding
borrowings of $70 million on its $725 million senior secured credit
facility, resulting in available capacity, after the reduction for
outstanding letters of credit, of $611 million. Including cash and
cash equivalents of $62 million, total liquidity was $673
million.
Third-Quarter 2021 Guidance
The table below reflects the Company's guidance
for total and oil production for the third and fourth quarters of
2021. Additionally, the Company is reiterating its updated
full-year 2021 total and oil production guidance.
|
|
3Q-21E |
|
4Q-21E |
|
FY-21E |
Total
production (MBOE per
day) |
|
74.5 - 77.5 |
|
77.5 - 80.5 |
|
77.0 - 80.0 |
Oil
production
(MBOPD) |
|
33.5 -
35.5 |
|
37.5 -
39.5 |
|
30.5 -
31.5 |
The table below reflects the Company's guidance
for selected revenue and expense items for the third quarter of
2021.
|
|
3Q-21E |
Average
sales price realizations (excluding derivatives): |
|
|
Oil (% of WTI) |
|
99% |
NGL (% of WTI) |
|
35% |
Natural gas (% of Henry
Hub) |
|
75% |
|
|
|
Net
settlements received (paid) for matured commodity derivatives ($
MM): |
|
|
Oil |
|
($48) |
NGL |
|
($29) |
Natural gas |
|
($17) |
|
|
|
Other ($
MM): |
|
|
Net income
(expense) of purchased
oil |
|
($6.8) |
|
|
|
Selected
average costs & expenses: |
|
|
Lease operating expenses
($/BOE) |
|
$3.90 |
Production and ad valorem taxes (% of oil, NGL and natural gas
sales
revenues) |
|
6.50% |
Transportation and marketing expenses
($/BOE) |
|
$1.60 |
General and administrative expenses (excluding LTIP,
$/BOE) |
|
$1.65 |
General and administrative expenses (LTIP cash,
$/BOE) |
|
($0.20) |
General and administrative expenses (LTIP non-cash,
$/BOE) |
|
$0.25 |
Depletion, depreciation and amortization
($/BOE) |
|
$8.00 |
Conference Call Details
On Thursday, August 5, 2021, at 7:30 a.m. CT,
Laredo will host a conference call to discuss its second-quarter
2021 financial and operating results and management's outlook, the
content of which is not part of this earnings release. A slide
presentation providing summary financial and statistical
information that will be discussed on the call will be posted to
the Company's website and available for review. The Company invites
interested parties to listen to the call via the Company's website
at www.laredopetro.com, under the tab for "Investor Relations."
Portfolio managers and analysts who would like to participate on
the call should dial 877.930.8286 (international dial-in
253.336.8309), using conference code 3698069, 10 minutes prior to
the scheduled conference time. A telephonic replay will be
available two hours after the call on August 5, 2021 through
Thursday, August 12, 2021. Participants may access this replay by
dialing 855.859.2056, using conference code 3698069.
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, primarily in the Permian Basin
of West Texas.
Additional information about Laredo may be found
on its website at www.laredopetro.com.
Forward-Looking Statements This
press release and any oral statements made regarding the contents
of this release, including in the conference call referenced
herein, contain 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,
indicates, enables, transforms, 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, the
ability of the Company to execute its strategies, including its
ability to successfully identify and consummate strategic
acquisitions at purchase prices that are accretive to its financial
results and to successfully integrate acquired businesses, assets
and properties, oil production quotas or other actions that might
be imposed by the Organization of Petroleum Exporting Countries and
other producing countries ("OPEC+"), the outbreak of disease, such
as the coronavirus ("COVID-19") pandemic, and any related
government policies and actions, changes in domestic and global
production, supply and demand for commodities, including as a
result of the COVID-19 pandemic and actions by OPEC+, long-term
performance of wells, drilling and operating risks, the increase in
service and supply costs, tariffs on steel, pipeline transportation
and storage constraints in the Permian Basin, the possibility of
production curtailment, hedging activities, the impacts of severe
weather, including the freezing of wells and pipelines in the
Permian Basin due to cold weather, possible impacts of litigation
and regulations, the impact of the Company's transactions, if any,
with its securities from time to time, the impact of new laws and
regulations, including those regarding the use of hydraulic
fracturing, the impact of new environmental, health and safety
requirements applicable to the Company's business activities, the
possibility of the elimination of federal income tax deductions for
oil and gas exploration and development and other factors,
including those and other risks described in its Annual Report on
Form 10-K for the year ended December 31, 2020, Current Report on
Form 8-K, filed with the Securities and Exchange Commission ("SEC")
on May 11, 2021, and those set forth from time to time in other
filings with the 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. Any
forward-looking statement speaks only as of the date on which such
statement is made. Laredo does not intend to, and disclaims any
obligation to, correct update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by applicable law.
The SEC generally permits oil and natural gas
companies, in filings made with the SEC, to disclose proved
reserves, which are reserve estimates that geological and
engineering data demonstrate with reasonable certainty to be
recoverable in future years from known reservoirs under existing
economic and operating conditions, and certain probable and
possible reserves that meet the SEC's definitions for such terms.
In this press release and the conference call, the Company may use
the terms "resource potential," "resource play," "estimated
ultimate recovery" or "EURs," "type curve" and "standardized
measure," each of which the SEC guidelines restrict from being
included in filings with the SEC without strict compliance with SEC
definitions. These terms refer to the Company’s internal estimates
of unbooked hydrocarbon quantities that may be potentially
discovered through exploratory drilling or recovered with
additional drilling or recovery techniques. "Resource potential" is
used by the Company to refer to the estimated quantities of
hydrocarbons that may be added to proved reserves, largely from a
specified resource play potentially supporting numerous drilling
locations. A "resource play" is a term used by the Company to
describe an accumulation of hydrocarbons known to exist over a
large areal expanse and/or thick vertical section potentially
supporting numerous drilling locations, which, when compared to a
conventional play, typically has a lower geological and/or
commercial development risk. "EURs" are based on the Company’s
previous operating experience in a given area and publicly
available information relating to the operations of producers who
are conducting operations in these areas. Unbooked resource
potential and "EURs" do not constitute reserves within the meaning
of the Society of Petroleum Engineer’s Petroleum Resource
Management System or SEC rules and do not include any proved
reserves. Actual quantities of reserves that may be ultimately
recovered from the Company’s interests may differ substantially
from those presented herein. Factors affecting ultimate recovery
include the scope of the Company’s ongoing drilling program, which
will be directly affected by the availability of capital, decreases
in oil, natural gas liquids and natural gas prices, well spacing,
drilling and production costs, availability and cost of drilling
services and equipment, lease expirations, transportation
constraints, regulatory approvals, negative revisions to reserve
estimates and other factors, as well as actual drilling results,
including geological and mechanical factors affecting recovery
rates. "EURs" from reserves may change significantly as development
of the Company’s core assets provides additional data. In addition,
the Company's production forecasts and expectations for future
periods are dependent upon many assumptions, including estimates of
production decline rates from existing wells and the undertaking
and outcome of future drilling activity, which may be affected by
significant commodity price declines or drilling cost increases.
"Type curve" refers to a production profile of a well, or a
particular category of wells, for a specific play and/or area. The
"standardized measure" of discounted future new cash flows is
calculated in accordance with SEC regulations and a discount rate
of 10%. Actual results may vary considerably and should not be
considered to represent the fair market value of the Company’s
proved reserves.
This press release and any accompanying
disclosures include financial measures that are not in accordance
with generally accepted accounting principles ("GAAP"), such as
Adjusted EBITDA, Adjusted Net Income and Free Cash Flow. While
management believes that such measures are useful for investors,
they should not be used as a replacement for financial measures
that are in accordance with GAAP. For a reconciliation of such
non-GAAP financial measures to the nearest comparable measure in
accordance with GAAP, please see the supplemental financial
information at the end of this press release.
Unless otherwise specified, references to "average
sales price" refer to average sales price excluding the effects of
the Company's derivative transactions.
All amounts, dollars and percentages presented in
this press release are rounded and therefore approximate.
Laredo Petroleum, Inc.
Selected operating data
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
Sales
volumes: |
|
|
|
|
|
|
|
|
Oil (MBbl) |
|
2,406 |
|
|
2,843 |
|
|
4,590 |
|
|
5,498 |
|
NGL (MBbl) |
|
2,551 |
|
|
2,752 |
|
|
4,872 |
|
|
5,219 |
|
Natural gas
(MMcf) |
|
17,169 |
|
|
17,817 |
|
|
32,799 |
|
|
34,329 |
|
Oil equivalents
(MBOE)(1)(2) |
|
7,819 |
|
|
8,565 |
|
|
14,928 |
|
|
16,439 |
|
Average daily oil equivalent sales volumes
(BOE/D)(2) |
|
85,924 |
|
|
94,117 |
|
|
82,475 |
|
|
90,324 |
|
Average daily oil sales volumes
(BOPD)(2) |
|
26,440 |
|
|
31,241 |
|
|
25,357 |
|
|
30,209 |
|
Average
sales prices(2): |
|
|
|
|
|
|
|
|
Oil ($/Bbl)(3) |
|
$ |
65.55 |
|
|
$ |
24.66 |
|
|
$ |
62.19 |
|
|
$ |
34.57 |
|
NGL ($/Bbl)(3) |
|
$ |
17.05 |
|
|
$ |
4.81 |
|
|
$ |
17.48 |
|
|
$ |
4.75 |
|
Natural
gas ($/Mcf)(3) |
|
$ |
1.81 |
|
|
$ |
0.61 |
|
|
$ |
1.96 |
|
|
$ |
0.44 |
|
Average sales price
($/BOE)(3) |
|
$ |
29.71 |
|
|
$ |
10.99 |
|
|
$ |
29.13 |
|
|
$ |
13.99 |
|
Oil, with commodity
derivatives ($/Bbl)(4) |
|
$ |
47.00 |
|
|
$ |
50.46 |
|
|
$ |
46.06 |
|
|
$ |
53.42 |
|
NGL, with commodity
derivatives ($/Bbl)(4) |
|
$ |
10.40 |
|
|
$ |
7.60 |
|
|
$ |
10.81 |
|
|
$ |
7.24 |
|
Natural gas, with commodity
derivatives ($/Mcf)(4) |
|
$ |
1.46 |
|
|
$ |
0.91 |
|
|
$ |
1.55 |
|
|
$ |
0.93 |
|
Average sales price, with commodity derivatives
($/BOE)(4) |
|
$ |
21.05 |
|
|
$ |
21.09 |
|
|
$ |
21.10 |
|
|
$ |
22.10 |
|
Selected
average costs and expenses per BOE sold(2): |
|
|
|
|
|
|
|
|
Lease operating
expenses |
|
$ |
2.53 |
|
|
$ |
2.40 |
|
|
$ |
2.59 |
|
|
$ |
2.59 |
|
Production and ad valorem
taxes |
|
1.88 |
|
|
0.81 |
|
|
1.88 |
|
|
0.98 |
|
Transportation and marketing
expenses |
|
1.37 |
|
|
1.31 |
|
|
1.53 |
|
|
1.50 |
|
Midstream service
expenses |
|
0.09 |
|
|
0.10 |
|
|
0.10 |
|
|
0.12 |
|
General and administrative (excluding
LTIP) |
|
1.60 |
|
|
1.02 |
|
|
1.48 |
|
|
1.17 |
|
Total selected operating
expenses |
|
$ |
7.47 |
|
|
$ |
5.64 |
|
|
$ |
7.58 |
|
|
$ |
6.36 |
|
General and administrative (LTIP): |
|
|
|
|
|
|
|
|
LTIP cash |
|
$ |
0.92 |
|
|
$ |
0.05 |
|
|
$ |
0.59 |
|
|
$ |
0.04 |
|
LTIP non-cash |
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
$ |
0.21 |
|
|
$ |
0.21 |
|
Depletion, depreciation and
amortization |
|
$ |
5.11 |
|
|
$ |
7.77 |
|
|
$ |
5.23 |
|
|
$ |
7.78 |
|
_______________________________________________________________________________
- BOE is calculated using a conversion rate of six Mcf per one
Bbl.
- The numbers presented are calculated based on actual amounts
that are not rounded.
- Price reflects the average of actual sales prices received when
control passes to the purchaser/customer adjusted for quality,
certain transportation fees, geographical differentials, marketing
bonuses or deductions and other factors affecting the price
received at the delivery point.
- Price reflects the after-effects of the Company's commodity
derivative transactions on it's average sales prices. The Company's
calculation of such after-effects includes settlements of matured
commodity derivatives during the respective periods in accordance
with GAAP and an adjustment to reflect premiums incurred previously
or upon settlement that are attributable to commodity derivatives
that settled during the respective periods.
Laredo Petroleum, Inc.
Consolidated balance sheets
(in thousands, except share data) |
|
June 30, 2021 |
|
December 31, 2020 |
|
|
(unaudited) |
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash
equivalents |
|
$ |
193,543 |
|
|
|
$ |
48,757 |
|
|
Accounts receivable,
net |
|
90,609 |
|
|
|
63,976 |
|
|
Derivatives |
|
— |
|
|
|
7,893 |
|
|
Other current
assets |
|
18,665 |
|
|
|
15,964 |
|
|
Total current
assets |
|
302,817 |
|
|
|
136,590 |
|
|
Property and
equipment: |
|
|
|
|
Oil and natural gas properties, full cost method: |
|
|
|
|
Evaluated
properties |
|
8,053,975 |
|
|
|
7,874,932 |
|
|
Unevaluated properties not being
depleted |
|
62,248 |
|
|
|
70,020 |
|
|
Less accumulated depletion and
impairment |
|
(6,889,399 |
) |
|
|
(6,817,949 |
) |
|
Oil and natural gas properties,
net |
|
1,226,824 |
|
|
|
1,127,003 |
|
|
Midstream service assets,
net |
|
109,681 |
|
|
|
112,697 |
|
|
Other fixed assets,
net |
|
31,548 |
|
|
|
32,011 |
|
|
Property and equipment,
net |
|
1,368,053 |
|
|
|
1,271,711 |
|
|
Derivatives |
|
423 |
|
|
|
— |
|
|
Operating
lease right-of-use
assets |
|
19,231 |
|
|
|
17,973 |
|
|
Other
noncurrent assets,
net |
|
96,282 |
|
|
|
16,336 |
|
|
Total assets |
|
$ |
1,786,806 |
|
|
|
$ |
1,442,610 |
|
|
Liabilities and stockholders' equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable and accrued
liabilities |
|
$ |
49,783 |
|
|
|
$ |
38,279 |
|
|
Accrued capital
expenditures |
|
32,641 |
|
|
|
28,275 |
|
|
Undistributed revenue and
royalties |
|
46,285 |
|
|
|
24,728 |
|
|
Derivatives |
|
256,460 |
|
|
|
31,826 |
|
|
Operating lease
liabilities |
|
15,143 |
|
|
|
11,721 |
|
|
Other current
liabilities |
|
89,363 |
|
|
|
62,766 |
|
|
Total current
liabilities |
|
489,675 |
|
|
|
197,595 |
|
|
Long-term
debt, net |
|
1,306,112 |
|
|
|
1,179,266 |
|
|
Derivatives |
|
61,514 |
|
|
|
12,051 |
|
|
Asset
retirement
obligations |
|
67,587 |
|
|
|
64,775 |
|
|
Operating
lease
liabilities |
|
6,573 |
|
|
|
8,918 |
|
|
Other
noncurrent
liabilities |
|
9,627 |
|
|
|
1,448 |
|
|
Total
liabilities |
|
1,941,088 |
|
|
|
1,464,053 |
|
|
Commitments
and contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock, $0.01 par value, 50,000,000 shares authorized and
zero issued as of June 30, 2021 and December 31,
2020 |
|
— |
|
|
|
— |
|
|
Common stock, $0.01 par value, 22,500,000 shares authorized and
13,572,872 and 12,020,164 issued and outstanding as of June 30,
2021 and December 31, 2020,
respectively |
|
136 |
|
|
|
120 |
|
|
Additional paid-in
capital |
|
2,473,709 |
|
|
|
2,398,464 |
|
|
Accumulated
deficit |
|
(2,628,127 |
) |
|
|
(2,420,027 |
) |
|
Total stockholders'
equity |
|
(154,282 |
) |
|
|
(21,443 |
) |
|
Total liabilities and stockholders'
equity |
|
$ |
1,786,806 |
|
|
|
$ |
1,442,610 |
|
|
Laredo Petroleum, Inc.
Condensed consolidated statements of
operations
|
|
Three months ended June 30, |
|
Six months ended June 30, |
(in thousands, except per share data) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
Revenues: |
|
|
|
|
|
|
|
|
Oil, NGL and natural gas
sales |
|
$ |
232,326 |
|
|
|
$ |
94,143 |
|
|
|
$ |
434,783 |
|
|
|
$ |
230,028 |
|
|
Midstream service
revenues |
|
1,257 |
|
|
|
2,281 |
|
|
|
2,553 |
|
|
|
4,964 |
|
|
Sales of purchased
oil |
|
60,788 |
|
|
|
14,164 |
|
|
|
107,265 |
|
|
|
80,588 |
|
|
Total revenues |
|
294,371 |
|
|
|
110,588 |
|
|
|
544,601 |
|
|
|
315,580 |
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
Lease operating
expenses |
|
19,771 |
|
|
|
20,591 |
|
|
|
38,689 |
|
|
|
42,631 |
|
|
Production and ad valorem
taxes |
|
14,737 |
|
|
|
6,938 |
|
|
|
28,020 |
|
|
|
16,182 |
|
|
Transportation and marketing
expenses |
|
10,690 |
|
|
|
11,181 |
|
|
|
22,817 |
|
|
|
24,725 |
|
|
Midstream service
expenses |
|
700 |
|
|
|
815 |
|
|
|
1,558 |
|
|
|
1,985 |
|
|
Costs of purchased
oil |
|
64,737 |
|
|
|
16,117 |
|
|
|
114,653 |
|
|
|
95,414 |
|
|
General and
administrative |
|
21,101 |
|
|
|
10,659 |
|
|
|
34,174 |
|
|
|
23,221 |
|
|
Organizational restructuring
expenses |
|
9,800 |
|
|
|
4,200 |
|
|
|
9,800 |
|
|
|
4,200 |
|
|
Transaction
expenses |
|
1,741 |
|
|
|
— |
|
|
|
1,741 |
|
|
|
— |
|
|
Depletion, depreciation and
amortization |
|
39,976 |
|
|
|
66,574 |
|
|
|
78,085 |
|
|
|
127,876 |
|
|
Impairment
expense |
|
1,613 |
|
|
|
406,448 |
|
|
|
1,613 |
|
|
|
593,147 |
|
|
Other operating
expenses |
|
1,158 |
|
|
|
1,117 |
|
|
|
2,301 |
|
|
|
2,223 |
|
|
Total costs and
expenses |
|
186,024 |
|
|
|
544,640 |
|
|
|
333,451 |
|
|
|
931,604 |
|
|
Operating
income (loss) |
|
108,347 |
|
|
|
(434,052 |
) |
|
|
211,150 |
|
|
|
(616,024 |
) |
|
Non-operating income (expense): |
|
|
|
|
|
|
|
|
Gain (loss) on derivatives,
net |
|
(216,942 |
) |
|
|
(90,537 |
) |
|
|
(371,307 |
) |
|
|
207,299 |
|
|
Interest
expense |
|
(25,870 |
) |
|
|
(27,072 |
) |
|
|
(51,816 |
) |
|
|
(52,042 |
) |
|
Loss on extinguishment of
debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13,320 |
) |
|
Other, net |
|
482 |
|
|
|
(967 |
) |
|
|
1,789 |
|
|
|
(1,478 |
) |
|
Total non-operating income (expense),
net |
|
(242,330 |
) |
|
|
(118,576 |
) |
|
|
(421,334 |
) |
|
|
140,459 |
|
|
Loss before income
taxes |
|
(133,983 |
) |
|
|
(552,628 |
) |
|
|
(210,184 |
) |
|
|
(475,565 |
) |
|
Income tax
benefit: |
|
|
|
|
|
|
|
|
Deferred |
|
1,322 |
|
|
|
7,173 |
|
|
|
2,084 |
|
|
|
4,756 |
|
|
Total income tax
benefit |
|
1,322 |
|
|
|
7,173 |
|
|
|
2,084 |
|
|
|
4,756 |
|
|
Net
loss |
|
$ |
(132,661 |
) |
|
|
$ |
(545,455 |
) |
|
|
$ |
(208,100 |
) |
|
|
$ |
(470,809 |
) |
|
Net loss per
common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(10.47 |
) |
|
|
$ |
(46.75 |
) |
|
|
$ |
(16.92 |
) |
|
|
$ |
(40.44 |
) |
|
Diluted |
|
$ |
(10.47 |
) |
|
|
$ |
(46.75 |
) |
|
|
$ |
(16.92 |
) |
|
|
$ |
(40.44 |
) |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
12,674 |
|
|
|
11,667 |
|
|
|
12,298 |
|
|
|
11,642 |
|
|
Diluted |
|
12,674 |
|
|
|
11,667 |
|
|
|
12,298 |
|
|
|
11,642 |
|
|
Laredo Petroleum, Inc.
Condensed consolidated statements of cash
flows
|
|
Three months ended June 30, |
|
Six months ended June 30, |
(in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
Cash flows
from operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(132,661 |
) |
|
|
$ |
(545,455 |
) |
|
|
$ |
(208,100 |
) |
|
|
$ |
(470,809 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Share-settled equity-based compensation,
net |
|
1,730 |
|
|
|
1,694 |
|
|
|
3,798 |
|
|
|
4,070 |
|
|
Depletion, depreciation and
amortization |
|
39,976 |
|
|
|
66,574 |
|
|
|
78,085 |
|
|
|
127,876 |
|
|
Impairment
expense |
|
1,613 |
|
|
|
406,448 |
|
|
|
1,613 |
|
|
|
593,147 |
|
|
Mark-to-market on derivatives: |
|
|
|
|
|
|
|
|
(Gain) loss on derivatives,
net |
|
216,942 |
|
|
|
90,537 |
|
|
|
371,307 |
|
|
|
(207,299 |
) |
|
Settlements (paid) received for matured derivatives,
net |
|
(57,607 |
) |
|
|
86,872 |
|
|
|
(98,781 |
) |
|
|
134,595 |
|
|
Premiums (paid) received for commodity
derivatives |
|
— |
|
|
|
(50,593 |
) |
|
|
9,041 |
|
|
|
(51,070 |
) |
|
Loss on extinguishment of
debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,320 |
|
|
Deferred income tax
benefit |
|
(1,322 |
) |
|
|
(7,173 |
) |
|
|
(2,084 |
) |
|
|
(4,756 |
) |
|
Other, net |
|
4,883 |
|
|
|
5,936 |
|
|
|
10,360 |
|
|
|
12,857 |
|
|
Cash flows from operating activities before changes in operating
assets and liabilities,
net |
|
73,554 |
|
|
|
54,840 |
|
|
|
165,239 |
|
|
|
151,931 |
|
|
Change in current assets and liabilities,
net |
|
47,507 |
|
|
|
8,750 |
|
|
|
30,248 |
|
|
|
27,458 |
|
|
Change in noncurrent assets and liabilities,
net |
|
(4,515 |
) |
|
|
(1,617 |
) |
|
|
(7,790 |
) |
|
|
(7,827 |
) |
|
Net cash provided by operating
activities |
|
116,546 |
|
|
|
61,973 |
|
|
|
187,697 |
|
|
|
171,562 |
|
|
Cash flows
from investing activities: |
|
|
|
|
|
|
|
|
Acquisitions of oil and natural gas properties,
net |
|
— |
|
|
|
(687 |
) |
|
|
— |
|
|
|
(23,563 |
) |
|
Capital expenditures: |
|
|
|
|
|
|
|
|
Oil and natural gas
properties |
|
(97,748 |
) |
|
|
(106,563 |
) |
|
|
(166,077 |
) |
|
|
(241,939 |
) |
|
Midstream service
assets |
|
(1,232 |
) |
|
|
(1,000 |
) |
|
|
(1,561 |
) |
|
|
(1,761 |
) |
|
Other fixed
assets |
|
(685 |
) |
|
|
(1,240 |
) |
|
|
(1,236 |
) |
|
|
(2,069 |
) |
|
Proceeds from dispositions of capital assets, net of selling
costs |
|
118 |
|
|
|
677 |
|
|
|
307 |
|
|
|
728 |
|
|
Net cash used in investing
activities |
|
(99,547 |
) |
|
|
(108,813 |
) |
|
|
(168,567 |
) |
|
|
(268,604 |
) |
|
Cash flows
from financing activities: |
|
|
|
|
|
|
|
|
Borrowings on Senior Secured Credit
Facility |
|
230,000 |
|
|
|
— |
|
|
|
245,000 |
|
|
|
— |
|
|
Payments on Senior Secured Credit
Facility |
|
(70,000 |
) |
|
|
— |
|
|
|
(120,000 |
) |
|
|
(100,000 |
) |
|
Issuance of January 2025 Notes and January 2028
Notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,000,000 |
|
|
Extinguishment of
debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(808,855 |
) |
|
Proceeds from issuance of common stock, net of
costs |
|
45,626 |
|
|
|
— |
|
|
|
72,492 |
|
|
|
— |
|
|
Other, net |
|
(1,903 |
) |
|
|
(190 |
) |
|
|
(395 |
) |
|
|
(19,213 |
) |
|
Net cash provided by (used in) financing
activities |
|
203,723 |
|
|
|
(190 |
) |
|
|
197,097 |
|
|
|
71,932 |
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
220,722 |
|
|
|
(47,030 |
) |
|
|
216,227 |
|
|
|
(25,110 |
) |
|
Cash, cash
equivalents and restricted cash, beginning of
period |
|
44,262 |
|
|
|
62,777 |
|
|
|
48,757 |
|
|
|
40,857 |
|
|
Cash, cash
equivalents and restricted cash, end of
period |
|
$ |
264,984 |
|
|
|
$ |
15,747 |
|
|
|
$ |
264,984 |
|
|
|
$ |
15,747 |
|
|
Laredo Petroleum, Inc.
Total Cash, Cash Equivalents and Restricted
Cash
The following table presents the Company's cash,
cash equivalents and restricted cash as of the dates presented:
|
|
As of June 30, |
(in thousands) |
|
2021 |
|
2020 |
|
|
(unaudited) |
Cash and cash
equivalents |
|
$ |
193,543 |
|
|
$ |
15,747 |
|
Restricted
cash(1) |
|
71,441 |
|
|
— |
|
Total cash,
cash equivalents and restricted
cash |
|
$ |
264,984 |
|
|
$ |
15,747 |
|
_____________________________________________________________________________
(1) Under the terms
of the Sabalo/Shad purchase and sale agreements, the Company
deposited into third-party escrow accounts an amount equal to
$71.4 million, which is included in "Other noncurrent assets,
net" on the unaudited consolidated balance sheets as of June 30,
2021.
Laredo Petroleum, Inc.
Total Incurred Capital Expenditures
The following table presents the components of the
Company's incurred capital expenditures, excluding non-budgeted
acquisition costs, for the periods presented:
|
|
Three months ended June 30, |
|
Six months ended June 30, |
(in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
Oil and natural gas
properties |
|
$ |
102,822 |
|
|
$ |
75,941 |
|
|
$ |
171,271 |
|
|
$ |
228,809 |
|
Midstream
service assets |
|
979 |
|
|
671 |
|
|
1,855 |
|
|
1,594 |
|
Other fixed
assets |
|
944 |
|
|
1,774 |
|
|
1,544 |
|
|
2,597 |
|
Total incurred capital expenditures, excluding non-budgeted
acquisition
costs |
|
$ |
104,745 |
|
|
$ |
78,386 |
|
|
$ |
174,670 |
|
|
$ |
233,000 |
|
Laredo Petroleum, Inc.
Supplemental reconciliations of GAAP to non-GAAP financial
measures
Non-GAAP financial measures
The non-GAAP financial measures of Free Cash Flow,
Adjusted Net Income and Adjusted EBITDA, as defined by the Company,
may not be comparable to similarly titled measures used by other
companies. Therefore, these non-GAAP financial measures should be
considered in conjunction with net income or loss and other
performance measures prepared in accordance with GAAP, such as
operating income or loss or cash flows from operating activities.
Free Cash Flow, Adjusted Net Income and Adjusted EBITDA should not
be considered in isolation or as a substitute for GAAP measures,
such as net income or loss, operating income or loss or any other
GAAP measure of liquidity or financial performance.
Free Cash Flow (Unaudited)
Free Cash Flow is a non-GAAP financial measure
that the Company defines as net cash provided by operating
activities (GAAP) before changes in operating assets and
liabilities, net, less incurred capital expenditures, excluding
non-budgeted acquisition costs. Free Cash Flow does not represent
funds available for future discretionary use because it excludes
funds required for future debt service, capital expenditures,
acquisitions, working capital, income taxes, franchise taxes and
other commitments and obligations. However, management believes
Free Cash Flow is useful to management and investors in evaluating
operating trends in its business that are affected by production,
commodity prices, operating costs and other related factors. There
are significant limitations to the use of Free Cash Flow as a
measure of performance, including the lack of comparability due to
the different methods of calculating Free Cash Flow reported by
different companies.
The following table presents a reconciliation of
net cash provided by operating activities (GAAP) to Free Cash Flow
(non-GAAP) for the periods presented:
|
|
Three months ended June 30, |
|
Six months ended June 30, |
(in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
Net cash provided by operating
activities |
|
$ |
116,546 |
|
|
|
$ |
61,973 |
|
|
|
$ |
187,697 |
|
|
|
$ |
171,562 |
|
|
Less: |
|
|
|
|
|
|
|
|
Change in current assets and liabilities,
net |
|
47,507 |
|
|
|
8,750 |
|
|
|
30,248 |
|
|
|
27,458 |
|
|
Change in noncurrent assets and liabilities,
net |
|
(4,515 |
) |
|
|
(1,617 |
) |
|
|
(7,790 |
) |
|
|
(7,827 |
) |
|
Cash flows
from operating activities before changes in operating assets and
liabilities,
net |
|
73,554 |
|
|
|
54,840 |
|
|
|
165,239 |
|
|
|
151,931 |
|
|
Less incurred capital expenditures, excluding non-budgeted
acquisition costs: |
|
|
|
|
|
|
|
|
Oil and natural gas
properties(1) |
|
102,822 |
|
|
|
75,941 |
|
|
|
$ |
171,271 |
|
|
|
$ |
228,809 |
|
|
Midstream service
assets(1) |
|
979 |
|
|
|
671 |
|
|
|
1,855 |
|
|
|
1,594 |
|
|
Other fixed
assets |
|
944 |
|
|
|
1,774 |
|
|
|
1,544 |
|
|
|
2,597 |
|
|
Total incurred capital expenditures, excluding non-budgeted
acquisition
costs |
|
104,745 |
|
|
|
78,386 |
|
|
|
$ |
174,670 |
|
|
|
$ |
233,000 |
|
|
Free Cash
Flow
(non-GAAP) |
|
$ |
(31,191 |
) |
|
|
$ |
(23,546 |
) |
|
|
$ |
(9,431 |
) |
|
|
$ |
(81,069 |
) |
|
_____________________________________________________________________________
(1) Includes capitalized share-settled
equity-based compensation and asset retirement costs.
Adjusted Net Income
(Unaudited)
Adjusted Net Income is a non-GAAP financial
measure that the Company defines as income or loss before income
taxes (GAAP) plus adjustments for mark-to-market on derivatives,
premiums paid or received for commodity derivatives that matured
during the period, impairment expense, gains or losses on disposal
of assets, other non-recurring income and expenses and adjusted
income tax expense. Management believes Adjusted Net Income helps
investors in the oil and natural gas industry to measure and
compare the Company's performance to other oil and natural gas
companies by excluding from the calculation items that can vary
significantly from company to company depending upon accounting
methods, the book value of assets and other non-operational
factors.
The following table presents a reconciliation of
loss before income taxes (GAAP) to Adjusted Net Income (non-GAAP)
for the periods presented:
|
|
Three months ended June 30, |
|
Six months ended June 30, |
(in thousands, except per share data) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
Loss before income
taxes |
|
$ |
(133,983 |
) |
|
|
$ |
(552,628 |
) |
|
|
$ |
(210,184 |
) |
|
|
$ |
(475,565 |
) |
|
Plus: |
|
|
|
|
|
|
|
|
Mark-to-market on derivatives: |
|
|
|
|
|
|
|
|
(Gain) loss on derivatives,
net |
|
216,942 |
|
|
|
90,537 |
|
|
|
371,307 |
|
|
|
(207,299 |
) |
|
Settlements (paid) received for matured derivatives,
net |
|
(57,607 |
) |
|
|
86,872 |
|
|
|
(98,781 |
) |
|
|
134,595 |
|
|
Net premiums paid for commodity derivatives that matured during the
period(1) |
|
(10,183 |
) |
|
|
— |
|
|
|
(21,188 |
) |
|
|
(477 |
) |
|
Organizational restructuring
expenses |
|
9,800 |
|
|
|
4,200 |
|
|
|
9,800 |
|
|
|
4,200 |
|
|
Transaction
expenses |
|
1,741 |
|
|
|
— |
|
|
|
1,741 |
|
|
|
— |
|
|
Impairment
expense |
|
1,613 |
|
|
|
406,448 |
|
|
|
1,613 |
|
|
|
593,147 |
|
|
Loss on extinguishment of
debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,320 |
|
|
(Gain) loss on disposal of assets,
net |
|
(66 |
) |
|
|
(152 |
) |
|
|
6 |
|
|
|
450 |
|
|
Write-off of debt issuance
costs |
|
— |
|
|
|
1,103 |
|
|
|
— |
|
|
|
1,103 |
|
|
Adjusted income before adjusted income tax
expense |
|
28,257 |
|
|
|
36,380 |
|
|
|
54,314 |
|
|
|
63,474 |
|
|
Adjusted income tax
expense(2) |
|
(6,217 |
) |
|
|
(8,004 |
) |
|
|
(11,949 |
) |
|
|
(13,964 |
) |
|
Adjusted Net Income
(non-GAAP) |
|
$ |
22,040 |
|
|
|
$ |
28,376 |
|
|
|
$ |
42,365 |
|
|
|
$ |
49,510 |
|
|
Net income
(loss) per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(10.47 |
) |
|
|
$ |
(46.75 |
) |
|
|
$ |
(16.92 |
) |
|
|
$ |
(40.44 |
) |
|
Diluted |
|
$ |
(10.47 |
) |
|
|
$ |
(46.75 |
) |
|
|
$ |
(16.92 |
) |
|
|
$ |
(40.44 |
) |
|
Adjusted Net
Income per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.74 |
|
|
|
$ |
2.43 |
|
|
|
$ |
3.44 |
|
|
|
$ |
4.25 |
|
|
Diluted |
|
$ |
1.74 |
|
|
|
$ |
2.43 |
|
|
|
$ |
3.44 |
|
|
|
$ |
4.25 |
|
|
Adjusted
diluted |
|
$ |
1.71 |
|
|
|
$ |
2.43 |
|
|
|
$ |
3.40 |
|
|
|
$ |
4.23 |
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
12,674 |
|
|
|
11,667 |
|
|
|
12,298 |
|
|
|
11,642 |
|
|
Diluted |
|
12,674 |
|
|
|
11,667 |
|
|
|
12,298 |
|
|
|
11,642 |
|
|
Adjusted
diluted |
|
12,886 |
|
|
|
11,686 |
|
|
|
12,476 |
|
|
|
11,697 |
|
|
_______________________________________________________________________________
- Reflects net premiums paid previously or upon settlement that
are attributable to derivatives settled in the respective periods
presented.
- Adjusted income tax expense is calculated by applying a
statutory tax rate of 22% for each of the periods ended
June 30, 2021 and 2020.
Adjusted EBITDA (Unaudited)
Adjusted EBITDA is a non-GAAP financial measure
that the Company defines as net income or loss (GAAP) plus
adjustments for share-settled equity-based compensation, depletion,
depreciation and amortization, impairment expense, mark-to-market
on derivatives, premiums paid or received for commodity derivatives
that matured during the period, accretion expense, gains or losses
on disposal of assets, interest expense, income taxes and other
non-recurring income and expenses. Adjusted EBITDA provides no
information regarding a company's capital structure, borrowings,
interest costs, capital expenditures, working capital movement or
tax position. Adjusted EBITDA does not represent funds available
for future discretionary use because it excludes funds required for
debt service, capital expenditures, working capital, income taxes,
franchise taxes and other commitments and obligations. However,
management believes Adjusted EBITDA is useful to an investor in
evaluating the Company's operating performance because this
measure:
- is widely used by investors in the oil and natural gas industry
to measure a company's operating performance without regard to
items that can vary substantially from company to company depending
upon accounting methods, the book value of assets, capital
structure and the method by which assets were acquired, among other
factors;
- helps investors to more meaningfully evaluate and compare the
results of the Company's operations from period to period by
removing the effect of its capital structure from its operating
structure; and
- is used by management for various purposes, including as
a measure of operating performance, in presentations to the
Company's board of directors and as a basis for strategic planning
and forecasting.
There are significant limitations to the use of
Adjusted EBITDA as a measure of performance, including the
inability to analyze the effect of certain recurring and
non-recurring items that materially affect the Company's net income
or loss and the lack of comparability of results of operations to
different companies due to the different methods of calculating
Adjusted EBITDA reported by different companies. The Company's
measurements of Adjusted EBITDA for financial reporting as compared
to compliance under its debt agreements differ.
The following table presents a reconciliation of
net loss (GAAP) to Adjusted EBITDA (non-GAAP) for the periods
presented:
|
|
Three months ended June 30, |
|
Six months ended June 30, |
(in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
Net loss |
|
$ |
(132,661 |
) |
|
|
$ |
(545,455 |
) |
|
|
$ |
(208,100 |
) |
|
|
$ |
(470,809 |
) |
|
Plus: |
|
|
|
|
|
|
|
|
Share-settled equity-based compensation,
net |
|
1,730 |
|
|
|
1,694 |
|
|
|
3,798 |
|
|
|
4,070 |
|
|
Depletion, depreciation and
amortization |
|
39,976 |
|
|
|
66,574 |
|
|
|
78,085 |
|
|
|
127,876 |
|
|
Impairment
expense |
|
1,613 |
|
|
|
406,448 |
|
|
|
1,613 |
|
|
|
593,147 |
|
|
Organizational restructuring
expenses |
|
9,800 |
|
|
|
4,200 |
|
|
|
9,800 |
|
|
|
4,200 |
|
|
Transaction
expenses |
|
1,741 |
|
|
|
— |
|
|
|
1,741 |
|
|
|
— |
|
|
Mark-to-market on derivatives: |
|
|
|
|
|
|
|
|
(Gain) loss on derivatives,
net |
|
216,942 |
|
|
|
90,537 |
|
|
|
371,307 |
|
|
|
(207,299 |
) |
|
Settlements (paid) received for matured derivatives,
net |
|
(57,607 |
) |
|
|
86,872 |
|
|
|
(98,781 |
) |
|
|
134,595 |
|
|
Net premiums paid for commodity derivatives that matured during the
period(1) |
|
(10,183 |
) |
|
|
— |
|
|
|
(21,188 |
) |
|
|
(477 |
) |
|
Accretion
expense |
|
1,158 |
|
|
|
1,117 |
|
|
|
2,301 |
|
|
|
2,223 |
|
|
(Gain) loss on disposal of assets,
net |
|
(66 |
) |
|
|
(152 |
) |
|
|
6 |
|
|
|
450 |
|
|
Interest
expense |
|
25,870 |
|
|
|
27,072 |
|
|
|
51,816 |
|
|
|
52,042 |
|
|
Loss on extinguishment of
debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,320 |
|
|
Write-off of debt issuance
costs |
|
— |
|
|
|
1,103 |
|
|
|
— |
|
|
|
1,103 |
|
|
Income tax
benefit |
|
(1,322 |
) |
|
|
(7,173 |
) |
|
|
(2,084 |
) |
|
|
(4,756 |
) |
|
Adjusted EBITDA
(non-GAAP) |
|
$ |
96,991 |
|
|
|
$ |
132,837 |
|
|
|
$ |
190,314 |
|
|
|
$ |
249,685 |
|
|
_____________________________________________________________________________
(1) Reflects net premiums paid previously or
upon settlement that are attributable to derivatives settled in the
respective periods presented.
Investor Contact: Ron Hagood
918.858.5504 rhagood@laredopetro.com
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