Strong management and a good track record are just a couple of reasons why some investment professionals ranked Laredo Petroleum Holdings Inc. among their top picks.
Founded in October 2006 by Chairman and CEO Randy Foutch, the Tulsa-based energy company focuses on the exploration, development and acquisition of oil and natural gas properties in the Permian region, which is located in west Texas and southeastern New Mexico. It is one of the most prolific onshore oil and natural gas producing regions in the United States.
Laredo's Permian activities are centered on the eastern side of the basin approximately 35 miles east of Midland, Texas.
"We don't see any downside to the company. We love their management. We love their competitive advantage and their track record," said Dan Dixon, executive vice president of Fredric E. Russell Investment Management Co.
Since its inception, the company has completed more than 725 gross vertical wells and 60 gross horizontal wells with a 99 percent success rate for oil production, Dixon said.
"Given their history ... we just really like Laredo Petroleum for the future," Dixon said.
Among its competitive advantages, Laredo has extensive Permian Basin technical database and expertise, owns the gathering infrastructure for its business and has significant operational control, Dixon said.
James "Skip" Nichols, president of Financial Planning Resources Inc., likes that Laredo is a significant player in the Permian Basin - one of the top five oil plays in the United States - where it does horizontal drilling in the Cline Shale. Horizontal drilling has the ability to increase production multiple times compared to traditional drilling, Nichols said.
He also points to Foutch as one reason he's "very high on the company." Last year, the national accounting firm Ernst & Young named Foutch one of its regional entrepreneurs of the year.
"The founder is a very solid guy," Nichols said. "He's a well-respected person, and he puts together a solid management team ... that knows the oil and gas business inside out."
If there is a potential downside to the company, it would be the risk of a worldwide recession, which would cause demand for oil to drop, Nichols said.
Laredo Petroleum Inc.
Address: 15 W. Sixth St., Suite 1800, Tulsa, OK, 74119
Phone: 918-513-4570
Web: www.laredopetro.com
Chairman/CEO: Randy A. Foutch
President: Jay P. Still
Symbol (Exchange): LPI (NYSE)
Operation: An independent oil and gas company that is focused on the exploration, development and acquisition of oil and natural gas properties in the Permian and Mid-Continent regions of the United States.
Laurie Winslow 918-581-8466
laurie.winslow@tulsaworld.com
Original Print Headline: Laredo's history makes it a top pick
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