Laredo Petroleum, Inc. reported a significant increase in its third quarter net income totaling $337.5 million and $20.08 per diluted share.
The Tulsla-based company said the income was up from the $262.5 million reported in the second quarter of the year.
Cash flows from operating activities in the third quarter totaled $182.6 million and adjusted EBITDA was $222.8 million with free cash flow of $51.4 million.
Adjusted Net Income was $89.2 million, or $5.30 per adjusted diluted share.
“We have continued to deliver on our commitment to utilize Free Cash Flow to strengthen our balance sheet and return cash to shareholders,” said Jason Pigott, President and Chief Executive Officer.
“We repurchased a combined $170 million of debt and equity, further reduced our leverage ratio and maintained liquidity of more than $1 billion. In 2023, we will remain focused on disciplined, capital-efficient development, Free Cash Flow generation, debt reduction and returning cash to shareholders.”
The company produced 40,553 barrels of oil per day (“BOPD”) and 87,032 barrels of oil equivalent per day.
Laredo completed 11 wells and turned-in-line (“TIL”) 12 wells during third-quarter 2022. Consistent with preliminary investments previously reported, total incurred capital expenditures were $140 million, excluding non-budgeted acquisitions and leasehold expenditures.
Investments included $120 million in drilling and completions activities, inclusive of $6 million of non-operated activities, $2 million in land, exploration and data related costs, $10 million in infrastructure, including Laredo Midstream Services investments, and $8 million in other capitalized costs. Non-budgeted acquisitions and leasehold expenditures totaled $4 million.
Consistent with preliminary amounts previously reported, lease operating expenses (“LOE”) during the period were $6.04 per BOE.
During the third quarter of 2022, Laredo repurchased 244,687 shares of its common stock for $17.5 million at an average price of $71.56 per share. As of November 2, 2022, the Company has repurchased 441,897 shares for $34.1 million at an average price of $77.06.
During third-quarter 2022, Laredo purchased $152.5 million face value of term-debt at 98% of par value. As of November 2, 2022, the Company has purchased $245.3 million face value of term-debt at 99% of par value in 2022.
At September 30, 2022, the Company had $40 million drawn on its $1.0 billion senior secured credit facility and cash and cash equivalents of $50 million.
On November 1, 2022, the borrowing base of the Company’s senior secured credit facility was increased to $1.3 billion from $1.25 billion. The elected commitment was maintained at $1.0 billion.
At November 2, 2022, the Company had no outstanding borrowing on its senior secured credit facility and cash and cash equivalents of $54 million.
Fourth-quarter 2022 production guidance has incorporated increased expectations for production downtime associated with offset operator completions. The Company is currently operating two drilling rigs and one completions crew and expects to complete 13 wells and TIL 11 wells during the fourth quarter of 2022.
