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Sep 30, 2020
Vital Energy Q3 2020 Earnings Report
Laredo Petroleum announced its third-quarter 2020 results, reporting a net loss attributable to common stockholders of $237.4 million, or $20.32 per diluted share, and adjusted net income of $47.0 million, or $4.02 per adjusted diluted share.
Key Takeaways
Laredo Petroleum reported a net loss of $237.4 million, or $20.32 per diluted share, but generated $71 million in free cash flow and reduced net debt by $64 million. The company also increased its fourth-quarter and full-year 2020 oil and total production guidance while maintaining its full-year capital expenditure guidance.
Generated Free Cash Flow of $71 million and reduced net debt by $64 million during third-quarter 2020
Received $58.2 million from settlements of matured/terminated commodity derivatives, resulting in an average hedged sales price of $22.76 per barrel of oil equivalent, a 39% increase versus an average unhedged sales price of $16.39 per BOE in the same period
Added 6,800 barrels of oil per day of 2021 oil hedges at a weighted-average swap price of $45.55 Brent, increasing 2021 oil hedges to 22,150 BOPD, equivalent to 80% of anticipated 2021 oil production
Lowered lease operating expenses to $2.45 per BOE, an 18% decrease from third-quarter 2019
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 increased its fourth-quarter and full-year guidance for total and oil production for 2020. The increase in total production guidance for fourth-quarter and full-year 2020 reflects the continued outperformance versus expectations of natural gas production on the Company's established acreage position.
Positive Outlook
- Total production for 4Q-20 is expected to be 82.0 - 84.0 MBOE per day.
- Total production for FY-20 is expected to be 87.6 - 88.1 MBOE per day.
- Oil production for 4Q-20 is expected to be 21.0 - 23.0 MBOPD.
- Oil production for FY-20 is expected to be 26.6 - 27.1 MBOPD.
- Average oil sales price realization (% of WTI) is expected to be 95%.
Challenges Ahead
- Net income (expense) of purchased oil is expected to be ($4.3) MM.
- Lease operating expenses are expected to be $2.80/BOE.
- Production and ad valorem taxes are expected to be 7.25% of oil, NGL and natural gas sales revenues.
- Transportation and marketing expenses are expected to be $1.95/BOE.
- General and administrative expenses (excluding LTIP) are expected to be $1.25/BOE.
Revenue & Expenses
Visualization of income flow from segment revenue to net income