Fourth quarter loss of $242 million reported by Laredo Petroleum

Despite doing far better for oil and total production expectations in the fourth quarter, Tulsa’s Laredo Petroleum reported a fourth quarter loss of $242 million.

The net loss for the quarter was $241.8 million or $1.04 a share with total revenues of nearly $218.1 million.

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

Fourth quarter net income for the company was $149.6 million and the net income for the full year was $324.6 million. But the company reported negative cash flows for both the quarter and the entire year in 2018.

Oil production for the qyear was 28,429 barrels a day and 80,883 barrels of oil equivalent a day…increases of 2% and 19% respectively compared to full-year 2018. Laredo’s total proved reserves grew by 17 million barrels which was a 23% increase.

The company stated that in the past year, it managed to drive down well costs to $6.6 million for a 10,000 foot lateral. Well costs at the end of 2018 were an average of $7.7 million.

“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.”

He said the company is well positioned to deliver onits returns-focused strategy and in January of this year refinanced its senior unsecured notes and extended maturities to 2025 and 2028.

In the fourth quarter of 2019, Laredo completed 15 gross horizontal wells but expects to complete 28 gross widely-spaced horizontal wells in the first quarter of this year.

Click here to read entire report.

Source: Laredo release

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