Ahead of its third quarter financial results to be released next month, Laredo Petroleum Inc. disclosed its quarterly oil and natural gas production.
Prior to the third quarter release, the Tulsa company revealed its quarterly production averaged 79.5 thousand barrels of oil equivalent a day, which is within the guidance of 78.5 to 8.5 MBoepd.
Oil production for the quarter averaged 35,000 barrels of oil a day, below the guidance of 35,500 to 37,5000 Bopd. Laredo explained the oil production was negatively impacted as offset operator completions in Howard County, Texas affected more Laredo wells than expected.
Of the impacted wells, newer, higher-production packages have returned to previous production expectations while older packages are taking longer than anticipated to return to expected production levels.
Laredo expects fourth quarter 2022 total and oil production to be 72,500 to 75,500 barrels of oil equivalent a day and 32,000 to 34,000 barrels of oil produced a day. The updated fourth quarter expectations include a reduction in volumes because of the divestiture of non-operated acreage which closed Oct. 3.
The company stated that its realized prices for oil, NGL and natural gas in the third quarter were nearly $96 a barrel for oil, $29.10 per NGL and $5.90 per Mcf of natural gas. It resulted in net settlements paid for matured commodity derivatives in the quarter totaling $125 million.
Laredo’s capital expenditures during the quarter totaled $140 million, higher than the guidance of $120 million. The increase was related to the timing of drilling and completions activity and the build out of facilities and infrastructure.
Fourth-quarter 2022 capital expenditures are expected to be $135 – $145 million, in-line with third-quarter 2022 levels.
The company, in an announcement this week, said it plans to announce complete third-quarter 2022 financial and operating results after the market close on Thursday, November 3, 2022, with a conference call planned for the following day.
Source: press release