Laredo Petroleum, Inc. based in Tulsa announced its 2018 third-quarter results including net income of $55.1 million or 24-cents a share.
The company’s adjusted net income for the quarter was $62.4 million or 27-cents a share. Laredo indicated it had record 71,382 barrels of oil equivalent a day in production for the quarter which was 19% more than the third quarter of 2017.
Its cash flow increased to $145.9 million and the adjusted earnings before interest, taxes, depreciation and amortization grew 23% reaching $160.6 million for the quarter.
“With Laredo balancing operating cash flow and capital expenditures in the third quarter of 2018, as forecasted in
our 2018 budget, we similarly plan to manage activity levels in 2019 to minimize any outspend,” commented Randy
A. Foutch, Chairman and Chief Executive Officer. “We intend to continue exercising this discipline in the future and invest capital with a focus on returns and growth on a debt-adjusted per share basis.”
In the third quarter of 2018, Laredo completed 16 gross (16 net) horizontal wells with an average completed lateral length of approximately 11,300 feet. Laredo produced a Company record 71,382 BOE per day in third-quarter 2018, higher than Company guidance of 71,000 BOE per day.
Operational efficiencies continued to improve in the third quarter of 2018. Drilling operations set a Company record
for average drilling days per 10,000-foot lateral of 8.6 days, a 25% improvement from the third quarter of 2017.
Combined with the 53% improvement in completions efficiencies compared to third-quarter 2017, Laredo expects
gross completed lateral feet per rig to increase approximately 50% in 2018 versus 2017.
During the third quarter of 2018, the Company began utilizing in-basin sand on all of its completions, resulting in
the previously expected savings of approximately $400,000 per well.
During the third quarter of 2018, Laredo invested approximately $134 million in drilling and completions activities.
Other expenditures incurred during the quarter included approximately $5 million in bolt-on land acquisitions, lease
extensions and data, approximately $2 million in infrastructure, including LMS investments, and approximately $8
million in other capitalized costs.
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