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Laredo Petroleum

DB:8LP
Snowflake Description

Undervalued with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
8LP
DB
$556M
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Laredo Petroleum, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The last earnings update was 47 days ago. More info.


Add to Portfolio Compare Print
  • Laredo Petroleum has significant price volatility in the past 3 months.
8LP Share Price and Events
7 Day Returns
-7.6%
DB:8LP
-0.1%
DE Oil and Gas
0.2%
DE Market
1 Year Returns
-70.9%
DB:8LP
16.1%
DE Oil and Gas
-10.9%
DE Market
8LP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Laredo Petroleum (8LP) -7.6% -30.4% -21.5% -70.9% -78.6% -
DE Oil and Gas -0.1% 0.4% 8.2% 16.1% 21.7% 72.3%
DE Market 0.2% -2.5% -2% -10.9% 8.9% 6.3%
1 Year Return vs Industry and Market
  • 8LP underperformed the Oil and Gas industry which returned 16.1% over the past year.
  • 8LP underperformed the Market in Germany which returned -10.9% over the past year.
Price Volatility
8LP
Industry
5yr Volatility vs Market

8LP Value

 Is Laredo Petroleum undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Laredo Petroleum to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Laredo Petroleum.

DB:8LP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:8LP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.911 (1 + (1- 21%) (195.48%))
1.883
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.883 * 5.96%)
11.45%

Discounted Cash Flow Calculation for DB:8LP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Laredo Petroleum is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:8LP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.45%)
2019 61.00 Analyst x3 54.73
2020 89.53 Analyst x4 72.08
2021 137.45 Analyst x4 99.29
2022 178.20 Est @ 29.65% 115.51
2023 215.31 Est @ 20.82% 125.22
2024 246.84 Est @ 14.64% 128.81
2025 272.31 Est @ 10.32% 127.50
2026 292.17 Est @ 7.29% 122.75
2027 307.28 Est @ 5.17% 115.84
2028 318.62 Est @ 3.69% 107.77
Present value of next 10 years cash flows $1,069.50
DB:8LP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $318.62 × (1 + 0.23%) ÷ (11.45% – 0.23%)
$2,845.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,845.90 ÷ (1 + 11.45%)10
$962.62
DB:8LP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,069.50 + $962.62
$2,032.12
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,032.12 / 228.68
$8.89
DB:8LP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:8LP represents 0.87181x of NYSE:LPI
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.87181x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 8.89 x 0.87181
€7.75
Value per share (EUR) From above. €7.75
Current discount Discount to share price of €2.12
= -1 x (€2.12 - €7.75) / €7.75
72.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Laredo Petroleum is available for.
Intrinsic value
>50%
Share price is €2.12 vs Future cash flow value of €7.75
Current Discount Checks
For Laredo Petroleum to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Laredo Petroleum's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Laredo Petroleum's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Laredo Petroleum's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Laredo Petroleum's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:8LP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.99
NYSE:LPI Share Price ** NYSE (2019-06-18) in USD $2.43
Germany Oil and Gas Industry PE Ratio Median Figure of 5 Publicly-Listed Oil and Gas Companies 8.77x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Laredo Petroleum.

DB:8LP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LPI Share Price ÷ EPS (both in USD)

= 2.43 ÷ 0.99

2.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Laredo Petroleum is good value based on earnings compared to the DE Oil and Gas industry average.
  • Laredo Petroleum is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Laredo Petroleum's expected growth come at a high price?
Raw Data
DB:8LP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2.45x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
0.9%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 58 Publicly-Listed Oil and Gas Companies 0.89x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

DB:8LP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 2.45x ÷ 0.9%

2.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Laredo Petroleum is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Laredo Petroleum's assets?
Raw Data
DB:8LP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.06
NYSE:LPI Share Price * NYSE (2019-06-18) in USD $2.43
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 1.28x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.77x
DB:8LP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LPI Share Price ÷ Book Value per Share (both in USD)

= 2.43 ÷ 5.06

0.48x

* Primary Listing of Laredo Petroleum.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Laredo Petroleum is good value based on assets compared to the DE Oil and Gas industry average.
X
Value checks
We assess Laredo Petroleum's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Laredo Petroleum has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

8LP Future Performance

 How is Laredo Petroleum expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Laredo Petroleum expected to grow at an attractive rate?
  • Laredo Petroleum's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Laredo Petroleum's earnings growth is positive but not above the Germany market average.
  • Laredo Petroleum's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:8LP Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:8LP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 0.9%
DB:8LP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts -1.3%
Germany Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -5.5%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:8LP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:8LP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 847 575 153 1
2022-12-31 852 555 152 1
2021-12-31 942 558 246 2
2020-12-31 910 503 237 5
2019-12-31 867 494 160 5
DB:8LP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,055 469 229
2018-12-31 1,106 538 325
2018-09-30 1,131 521 584
2018-06-30 1,057 491 540
2018-03-31 893 468 567
2017-12-31 822 385 549
2017-09-30 766 383 122
2017-06-30 720 375 120
2017-03-31 680 364 -12
2016-12-31 597 356 -261
2016-09-30 536 336 -1,207
2016-06-30 527 340 -2,064

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Laredo Petroleum's earnings are expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).
  • Laredo Petroleum's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:8LP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Laredo Petroleum Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:8LP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.66 0.66 0.66 1.00
2022-12-31 0.66 0.66 0.66 1.00
2021-12-31 1.07 1.47 0.67 2.00
2020-12-31 0.93 1.26 0.74 6.00
2019-12-31 0.68 0.73 0.61 5.00
DB:8LP Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.99
2018-12-31 1.40
2018-09-30 2.49
2018-06-30 2.28
2018-03-31 2.37
2017-12-31 2.30
2017-09-30 0.51
2017-06-30 0.51
2017-03-31 -0.05
2016-12-31 -1.16
2016-09-30 -5.52
2016-06-30 -9.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Laredo Petroleum will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Laredo Petroleum's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Laredo Petroleum has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

8LP Past Performance

  How has Laredo Petroleum performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Laredo Petroleum's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Laredo Petroleum has delivered over 20% year on year earnings growth in the past 5 years.
  • Laredo Petroleum's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Laredo Petroleum's 1-year earnings growth is negative, it can't be compared to the Europe Oil and Gas industry average.
Earnings and Revenue History
Laredo Petroleum's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Laredo Petroleum Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:8LP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,055.03 228.58 92.93
2018-12-31 1,105.78 324.60 96.14
2018-09-30 1,130.83 583.58 98.66
2018-06-30 1,056.90 539.56 100.27
2018-03-31 892.85 567.22 95.44
2017-12-31 822.16 548.97 96.31
2017-09-30 766.14 121.99 98.30
2017-06-30 720.06 120.45 99.41
2017-03-31 679.83 -12.09 97.90
2016-12-31 597.38 -260.74 91.76
2016-09-30 536.34 -1,206.97 88.51
2016-06-30 526.95 -2,064.23 85.32
2016-03-31 562.50 -2,389.84 88.02
2015-12-31 606.64 -2,209.94 90.43
2015-09-30 720.66 -1,044.01 90.26
2015-06-30 770.56 -112.82 94.43
2015-03-31 771.27 265.31 100.77
2014-12-31 793.89 265.57 106.57
2014-09-30 710.01 132.62 104.75
2014-06-30 680.61 61.03 102.07
2014-03-31 674.86 115.23 92.34
2013-12-31 665.26 116.58 85.00
2013-09-30 663.17 60.12 81.32
2013-06-30 636.17 41.03 71.26
2013-03-31 598.59 36.82 66.12
2012-12-31 583.89 61.76 62.11
2012-09-30 571.53 51.46 63.02
2012-06-30 560.16 116.97 67.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Laredo Petroleum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Laredo Petroleum used its assets more efficiently than the DE Oil and Gas industry average last year based on Return on Assets.
  • Laredo Petroleum has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Laredo Petroleum's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Laredo Petroleum has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

8LP Health

 How is Laredo Petroleum's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Laredo Petroleum's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Laredo Petroleum's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Laredo Petroleum's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Laredo Petroleum's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Laredo Petroleum Company Filings, last reported 2 months ago.

DB:8LP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,171.43 1,086.28 44.54
2018-12-31 1,174.23 983.64 45.15
2018-09-30 1,015.11 963.19 50.41
2018-06-30 959.17 902.75 36.60
2018-03-31 941.83 847.30 55.89
2017-12-31 765.58 791.86 112.16
2017-09-30 346.23 1,440.97 20.82
2017-06-30 324.40 1,390.28 35.02
2017-03-31 252.91 1,349.59 30.35
2016-12-31 180.57 1,353.91 32.67
2016-09-30 187.10 1,353.23 30.36
2016-06-30 9.16 1,392.88 19.31
2016-03-31 -45.72 1,476.89 12.10
2015-12-31 131.45 1,416.23 31.15
2015-09-30 1,088.68 1,415.57 76.40
2015-06-30 1,928.95 1,425.00 57.59
2015-03-31 2,319.11 1,851.23 569.09
2014-12-31 1,563.20 1,779.45 29.32
2014-09-30 1,354.70 1,576.36 55.76
2014-06-30 1,264.31 1,501.42 399.51
2014-03-31 1,275.60 1,501.48 547.52
2013-12-31 1,272.26 1,051.54 198.15
2013-09-30 1,195.35 1,051.60 265.27
2013-06-30 875.71 1,446.65 43.59
2013-03-31 835.47 1,351.71 31.02
2012-12-31 831.72 1,216.76 33.22
2012-09-30 817.44 1,101.81 29.12
2012-06-30 822.06 1,051.86 146.49
  • Laredo Petroleum's level of debt (90.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (117.7% vs 90.8% today).
  • Debt is well covered by operating cash flow (44.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess Laredo Petroleum's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Laredo Petroleum has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

8LP Dividends

 What is Laredo Petroleum's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Laredo Petroleum dividends. Estimated to be 0% next year.
If you bought €2,000 of Laredo Petroleum shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Laredo Petroleum's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Laredo Petroleum's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:8LP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 58 Stocks 5.6%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:8LP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Laredo Petroleum has not reported any payouts.
  • Unable to verify if Laredo Petroleum's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Laredo Petroleum's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Laredo Petroleum has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Laredo Petroleum's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Laredo Petroleum's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Laredo Petroleum afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Laredo Petroleum has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

8LP Management

 What is the CEO of Laredo Petroleum's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Randy Foutch
COMPENSATION $8,840,734
AGE 66
TENURE AS CEO 12.7 years
CEO Bio

Mr. Randy A. Foutch founded Laredo Petroleum, Inc. in October 2006 and has been its Chairman of the Board and Chief Executive Officer since then. He founded and served in executive roles with Pogo Producing Company and Lariat Petroleum, Inc. Mr. Foutch has an experience in the oil and gas industry. Mr. Foutch is serving on the Board of Directors of Helmerich & Payne, Inc. since 2007 and served on the Board of Directors of Bill Barrett Corporation from 2006 to August 2011. From 2013 to June 2015, he served as a Director of Cheniere Energy, Inc. From 2006 to 2008, he served as a Director of MacroSolve, Inc. Mr. Foutch also serves on several nonprofit and private industry boards. Mr. Foutch is a Member of the National Petroleum Council, America’s Natural Gas Alliance and the Advisory Council of the Energy Institute at the University of Texas, Austin. He holds a Bachelor of Science in Geology from the University of Texas and a Master of Science in Petroleum Engineering from the University of Houston. As a result of Mr. Foutch's service as the Chief Executive Officer and in other executive positions and as a director of several oil and gas exploration and development companies, he provides valuable business, leadership and management experience and insights into many aspects of the oil, natural gas and contract drilling industries to the Company.

CEO Compensation
  • Randy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Randy's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Laredo Petroleum management team in years:

0.8
Average Tenure
45.5
Average Age
  • The average tenure for the Laredo Petroleum management team is less than 2 years, this suggests a new team.
Management Team

Randy Foutch

TITLE
Founder
COMPENSATION
$9M
AGE
66
TENURE
12.7 yrs

Tommye Chandler

TITLE
Senior VP & COO
COMPENSATION
$1M
AGE
47
TENURE
0.7 yrs

Jason Pigott

TITLE
President & Director
AGE
44
TENURE
0.1 yrs

Michael Beyer

TITLE
Senior VP & CFO
AGE
42
TENURE
0.2 yrs

Ron Hagood

TITLE
Vice President of Investor Relations
TENURE
1.6 yrs

Mark Denny

TITLE
Senior VP
TENURE
0.8 yrs

Benjamin Klein

TITLE
Vice President of Midstream & Marketing
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Laredo Petroleum board of directors in years:

11.9
Average Tenure
63
Average Age
  • The average tenure for the Laredo Petroleum board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Jason Pigott

TITLE
President & Director
AGE
44
TENURE
0.1 yrs

Pam Pierce

TITLE
Independent Director
COMPENSATION
$271K
AGE
63
TENURE
12.1 yrs

Randy Foutch

TITLE
Founder
COMPENSATION
$9M
AGE
66
TENURE
12.7 yrs

Ed Segner

TITLE
Lead Independent Director
COMPENSATION
$300K
AGE
64

Peter Randall Kagan

TITLE
Independent Director
COMPENSATION
$250K
AGE
50
TENURE
11.9 yrs

James Levy

TITLE
Independent Director
COMPENSATION
$250K
AGE
42
TENURE
12.1 yrs

Bill Scoggins

TITLE
Independent Director
COMPENSATION
$250K
AGE
70
TENURE
7.1 yrs

Frances R. Hawes

TITLE
Independent Director
COMPENSATION
$47K
AGE
63
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
08. May 19 Sell SailingStone Capital Partners LLC Company 12. Mar 19 26. Apr 19 -188,427 €2.84 €-527,975
14. Feb 19 Sell SailingStone Capital Partners LLC Company 20. Dec 18 24. Jan 19 -2,880,472 €3.62 €-10,434,665
14. Feb 19 Buy SailingStone Capital Partners LLC Company 20. Dec 18 05. Feb 19 1,023,789 €3.64 €3,724,857
28. Sep 18 Sell Warburg Pincus LLC Company 27. Sep 18 27. Sep 18 -12,300,000 €6.92 €-85,152,211
12. Sep 18 Sell Warburg Pincus LLC Company 11. Sep 18 11. Sep 18 -14,200,000 €6.40 €-90,918,596
X
Management checks
We assess Laredo Petroleum's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Laredo Petroleum has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

8LP News

Simply Wall St News

8LP Company Info

Description

Laredo Petroleum, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company also provides midstream and marketing services comprising transportation and marketing of oil and natural gas; and natural gas lift systems, crude oil and natural gas gathering, and water delivery and takeaway services. As of December 31, 2018, it had assembled 120,617 net acres in the Permian Basin; and had total proved reserves of 238,167 thousand barrels of oil equivalent. The company was formerly known as Laredo Petroleum Holdings, Inc. and changed its name to Laredo Petroleum, Inc. in December 2013. Laredo Petroleum, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.

Details
Name: Laredo Petroleum, Inc.
8LP
Exchange: DB
Founded: 2006
$496,071,191
228,682,114
Website: http://www.laredopetro.com
Address: Laredo Petroleum, Inc.
15 West Sixth Street,
Suite 900,
Tulsa,
Oklahoma, 74119,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LPI Common Stock New York Stock Exchange US USD 15. Dec 2011
DB 8LP Common Stock Deutsche Boerse AG DE EUR 15. Dec 2011
Number of employees
Current staff
Staff numbers
340
Laredo Petroleum employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 21:41
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.