Laredo Petroleum's production up, profits down
BY ROD WALTON World Staff Writer
Saturday, November 10, 2012
11/10/12 at 4:16 AM
Laredo Petroleum Holdings Inc. increased its oil and gas production by 27 percent in the third quarter but logged a $7.4 million net loss on substantially lower natural gas prices, the Tulsa-based energy producer announced Friday.
Crude oil prices held flat year over year, but Laredo's realized natural gas prices dropped by 39 percent. Third-quarter depreciation, depletion and amortization costs also were booked significantly higher than a year earlier.
Oil and gas production totaled 2.8 million barrels of oil equivalent, or 30,835 boe per day. Activity in Laredo's centerpiece Permian Basin play of West Texas accounted for 42 percent of output.
"Through our disciplined and science-backed approach, we have made substantial progress in de-risking a portion of our Permian Basin acreage, converting potential resources to higher-value reserves and confirming Laredo's potential for multi-zone horizontal development," Laredo CEO Randy Foutch said in a statement.
Laredo said it drilled 34 wells during the third quarter. It also completed 48 wells with a 100 percent success rate, according to the earnings report.
Aside from its Permian Basin acreage, Laredo also had three horizontal drilling rigs operating in the Granite Wash of the Anadarko Basin in western Oklahoma and the Texas Panhandle. Drilling expenditures topped $212 million for the quarter, 89 percent of that spent in the Permian Basin.
Laredo reported a debt balance of about $1.1 billion. Cash and cash equivalents totaled $29.1 million, while the borrowing base was $785 million for the third quarter.
Earlier this month, however, the company increased its borrowing base to $825 million.
Laredo Petroleum Earnings
||2012 9 Months
||2011 9 Months
|Net income (loss)
|Net per share (loss)
Laredo was not a publicly traded company in 2011's third quarter.
Original Print Headline: Laredo's production up, profits down
Rod Walton 918-581-8457