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Jun 30, 2021
Vital Energy Q2 2021 Earnings Report
Laredo Petroleum announced second-quarter 2021 financial and operating results, highlighting strategic asset purchases and divestitures, increased production, and improved financial flexibility.
Key Takeaways
Laredo Petroleum reported a net loss of $132.7 million for Q2 2021, which included a $159.3 million non-cash loss on derivatives. However, Adjusted Net Income was $22.0 million, and Adjusted EBITDA was $97.0 million. The company also announced agreements to purchase Sabalo Energy's assets and divest 37.5% of its legacy proved developed producing reserves.
Announced agreements to purchase Sabalo Energy, LLC assets and divest 37.5% of legacy proved developed producing reserves.
Completed 16 wells, including the 13-well Davis package in Howard County.
Produced an average of 85,924 BOE per day and 26,440 barrels of oil per day, up 9% from Q1 2021.
Held flaring/venting to 0.29% of produced gas.
Vital Energy
Vital Energy
Vital Energy Revenue by Segment
Revenue by Segment
Oil Sales Revenue
CapyFin.comNGL Sales Revenue
CapyFin.comNatural Gas Sales Revenue
CapyFin.com Forward Guidance
Laredo Petroleum provided guidance for Q3 and Q4 2021, including total production, oil production, average sales price realizations, and selected average costs & expenses.
Positive Outlook
- Oil (% of WTI): 99%
- NGL (% of WTI): 35%
- Natural gas (% of Henry Hub): 75%
- General and administrative expenses (LTIP cash, $/BOE): ($0.20)
- General and administrative expenses (LTIP non-cash, $/BOE): $0.25
Challenges Ahead
- Oil($ MM):($48)
- NGL($ MM):($29)
- Natural gas($ MM):($17)
- Lease operating expenses ($/BOE)$3.90
- Transportation and marketing expenses ($/BOE)$1.60
Revenue & Expenses
Visualization of income flow from segment revenue to net income