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      Laredo Petroleum, Inc. (LPI) Stock Plunged -7.37% Today, Here’s Why - Stocks Telegraph

      By Iqra Jamal

      Published on

      September 20, 2021

      1:40 PM UTC

      Laredo Petroleum, Inc. (LPI) Stock Plunged -7.37% Today, Here’s Why - Stocks Telegraph

      Laredo Petroleum, Inc. (LPI) stock plummeted -7.37% in the current market trading session at the price of $66.78 following the announcement of the expansion of its oil-weighted western Glasscock leasehold. LPI is an independent energy company centered on the research and development of oil and natural gas properties. 

      Expansion of Oil-Weighted Western Glasscock Leasehold 

      On 19th September 2021, LPI published that it had signed a sale and purchase agreement with Pioneer Natural Resources Company. Under the agreement, Laredo will obtain roughly 20,000 net acres worth $230 million in western Glasscock County from Pioneer. This acquired leasehold is directly adjacent to LPI’s existing western Glasscock leasehold. It aims to expand the company’s oil-weighted development area in the prolific Midland Basin. The transaction is subject to customary closing price adjustments and will close at the start of October 2021. 

       CEO of LPI, Jason Pigott, remarked that they had received 55,000 net acres of highly productive oil-weighted inventory in western Glasscock and Howard in the past two years. The next seven years across these fields will improve their capacity to deliver long-term and sustainable Free Cash Flow generation. Through such deals, they will continue to manifest their ability to integrate premier locations into their operations. They will grow their return profile while serving in an environmentally responsible and sustainable manner, he added.  

      LPI Second-Quarter 2021 Financial and Operating Results 

      On 4th August 2021, LPI reported financial and operating results for its second quarter ended 30th June 2021. The net loss attributable to common stockholders was $132.7 million, or $10.47 per diluted share, for the second quarter of 2021. It included a $159.3 million non-cash loss on derivatives. For the second quarter ended 30th June 2021, the Adjusted Net Income was $22.0 million or $1.71 per adjusted diluted share. Adjusted EBITDA for the second quarter ended 30th June 2021 was $97.0 million. The company sold 714,526 shares for net proceeds of $45.6 million through its at-the-market equity program. 

      Jason Pigott stated that their LPI’s transformation had expedited significantly during 2021. The company have extended operational efficiency and completed their first wider-spaced development package to optimize their growth in Howard County.  They have completed around $75 million ATM program and issued $400 million of unsecured notes to overcome the balance on their credit facility. They are focused on their core principles of adding high-margin inventory, risk management, and continuous improvement to create long-term value for stakeholders, he concluded. 

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