Laredo Petroleum
Market Cap
US$157.9m
Last Updated
2020/07/04 23:51 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -33% per year for the next 3 years
Snowflake Analysis
Moderate growth potential and overvalued.
Similar Companies
Share Price & News
How has Laredo Petroleum's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LPI's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0.7%
LPI
2.5%
US Oil and Gas
4.0%
US Market
1 Year Return
-76.7%
LPI
-39.9%
US Oil and Gas
4.9%
US Market
Return vs Industry: LPI underperformed the US Oil and Gas industry which returned -39.9% over the past year.
Return vs Market: LPI underperformed the US Market which returned 5% over the past year.
Shareholder returns
| LPI | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | 2.5% | 4.0% |
| 30 Day | -25.0% | -9.3% | 1.3% |
| 90 Day | 74.2% | 24.6% | 29.5% |
| 1 Year | -76.7%-76.7% | -37.1%-39.9% | 7.2%4.9% |
| 3 Year | -93.5%-93.5% | -30.9%-38.2% | 36.1%27.2% |
| 5 Year | -93.9%-93.9% | -36.3%-46.7% | 65.3%46.9% |
Price Volatility Vs. Market
How volatile is Laredo Petroleum's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Analysts Just Published A Bright New Outlook For Laredo Petroleum, Inc.'s (NYSE:LPI)3 months ago | Simply Wall St
News Flash: 9 Analysts Think Laredo Petroleum, Inc. (NYSE:LPI) Earnings Are Under Threat7 months ago | Simply Wall St
How Much Are Laredo Petroleum, Inc. (NYSE:LPI) Insiders Taking Off The Table?Valuation
Is Laredo Petroleum undervalued compared to its fair value and its price relative to the market?
0.15x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: LPI ($13.55) is trading above our estimate of fair value ($9.05)
Significantly Below Fair Value: LPI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LPI is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.
PE vs Market: LPI is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate LPI's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: LPI is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is Laredo Petroleum forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
-33.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LPI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: LPI is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: LPI's is expected to become profitable in the next 3 years.
Revenue vs Market: LPI's revenue is expected to decline over the next 3 years (-9% per year).
High Growth Revenue: LPI's revenue is forecast to decline over the next 3 years (-9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LPI is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Laredo Petroleum performed over the past 5 years?
48.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LPI is currently unprofitable.
Growing Profit Margin: LPI is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: LPI is unprofitable, but has reduced losses over the past 5 years at a rate of 48.5% per year.
Accelerating Growth: Unable to compare LPI's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: LPI is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-17.5%).
Return on Equity
High ROE: LPI has a negative Return on Equity (-9.07%), as it is currently unprofitable.
Next Steps
Financial Health
How is Laredo Petroleum's financial position?
Financial Position Analysis
Short Term Liabilities: LPI's short term assets ($427.3M) exceed its short term liabilities ($185.7M).
Long Term Liabilities: LPI's short term assets ($427.3M) do not cover its long term liabilities ($1.3B).
Debt to Equity History and Analysis
Debt Level: LPI's debt to equity ratio (116.5%) is considered high.
Reducing Debt: LPI's debt to equity ratio has increased from 79.7% to 116.5% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Insufficient data to determine if LPI has enough cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if LPI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Laredo Petroleum current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LPI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LPI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LPI's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LPI's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LPI's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Jason Pigott (46yo)
0.75
Tenure
US$7,217,941
Compensation
Mr. Mikell J. Pigott, also known as Jason, has been the President and Director of Laredo Petroleum, Inc. since May 28, 2019 and is its Chief Executive Officer since October 1, 2019. Mr. Pigott served as Ex ...
CEO Compensation Analysis
Compensation vs Market: Jason's total compensation ($USD7.22M) is above average for companies of similar size in the US market ($USD1.34M).
Compensation vs Earnings: Insufficient data to compare Jason's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.75yr | US$7.22m | 0.86% $1.4m | |
| 13.75yrs | US$10.51m | 0.56% $890.6k | ||
| Senior VP & COO | 1.75yrs | US$2.91m | 0.41% $645.9k | |
| Senior VP | 1.92yrs | US$1.15m | 0.15% $238.4k | |
| Senior VP & CFO | 0.083yr | no data | no data | |
| VP & Chief Information Officer | 0.92yr | no data | no data | |
| Vice President of Investor Relations | 2.67yrs | no data | no data | |
| Vice President of Midstream & Marketing | 2.83yrs | no data | no data | |
| Vice President of Human Resources | 0.92yr | no data | no data |
1.8yrs
Average Tenure
49yo
Average Age
Experienced Management: LPI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.75yr | US$7.22m | 0.86% $1.4m | |
| Independent Director | 13yrs | US$250.00k | 0.12% $194.2k | |
| Independent Director | 13.17yrs | US$270.00k | 0.16% $255.7k | |
| Independent Director | 1.58yrs | US$265.00k | 0.071% $112.3k | |
| Lead Independent Director | no data | US$285.00k | 0.096% $150.9k | |
| Independent Director | 8.17yrs | US$261.25k | 0.13% $200.3k | |
| Independent Director | 13.17yrs | US$250.00k | 0.13% $211.4k | |
| Independent Chairman | 0.17yr | no data | 0.057% $89.5k | |
| Independent Director | 0.58yr | US$45.92k | 0.027% $42.2k |
4.9yrs
Average Tenure
65yo
Average Age
Experienced Board: LPI's board of directors are considered experienced (4.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Laredo Petroleum, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Laredo Petroleum, Inc.
- Ticker: LPI
- Exchange: NYSE
- Founded: 2006
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: US$157.949m
- Shares outstanding: 11.66m
- Website: https://www.laredopetro.com
Number of Employees
Location
- Laredo Petroleum, Inc.
- 15 West Sixth Street
- Suite 900
- Tulsa
- Oklahoma
- 74119
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LPI | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 2011 |
| 8LP1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2011 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/04 23:51 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.