Laredo Petroleum, Inc. reported it not only increased its average daily oil production and proved reserves in the fourth quarter of 2021, it also recorded net income attributable to common stockholders of $216.3 million, or $12.84 per diluted share.
But the company, like others, is not rushing headlong into expanded drilling operations and oil production, preferring to be more cautious about its capital expenditures.
“We posted exceptional results in 2021 and enter 2022 with strong momentum and a clearly defined strategy to
add value for shareholders,” stated Jason Pigott, President and Chief Executive Officer.
The Tulsa company’s adjusted net income for the quarter was $57.2 million or $3.39 per adjusted diluted share. Adjusted EBITDA was $182.2 million.
For the full year 2021, Laredo had $145 million or $10.03 per diluted share in net income attributable to common stockholders. Adjusted net income for the full year was $128.9 million or $8.91 per adjusted diluted share.
“Our outlook for 2022 is strong and our disciplined development plan will build upon our successes from 2021,” continued Pigott. “We are focused on capital efficient development, generation of Free Cash Flow and leverage reduction.”
As a result of Laredo’s acquisition of 41,000 acres in West Texas where it added 250 high-margin, oil-weighted locations, it increased average daily oil production by 19% compared to full-year 2020. It also increased total proved reserves by 15% in 2021 including a 78% increase in proved oil reserves.
Capital expenditures during the quarter totaled $142 million as Laredo completed 18 wells.
Pigott said capital for the remainder of 2022 is being allocated to the company’s highest return opportunities in Howard and western Glasscock counties where it made the acquisitions in West Texas.
“Our outlook for 2022 is strong and our disciplined development plan will build upon our successes from 2021,”he added.
The company is reported to be operating three drilling rigs and two completions crews but plans to release one drilling rig and one completions crew by the end of the first quarter of 2022. Its intentions are to maintain a two rig and one crew operation for the remainder of the year.
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