Laredo Petroleum
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 49 days ago. More info.
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- Laredo Petroleum has significant price volatility in the past 3 months.
LPI Share Price and Events
7 Day Returns
1 Year Returns
LPI Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Laredo Petroleum (LPI) | -3.4% | -25.3% | -18.3% | -71% | -77.8% | -91.6% |
| US Oil and Gas | 1.8% | -3% | -7.6% | -17.1% | -6.8% | -38.4% |
| US Market | 1.2% | 2% | 2% | 2.3% | 37.9% | 39.8% |
1 Year Return vs Industry and Market
- LPI underperformed the Oil and Gas industry which returned -17.1% over the past year.
- LPI underperformed the Market in United States of America which returned 2.3% over the past year.
LPI Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Laredo Petroleum.
| 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 | 13.7% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| 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))
= 0.914 (1 + (1- 21%) (187.01%)) |
1.847 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.85 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.847 * 5.96%) |
13.74% |
Discounted Cash Flow Calculation for NYSE:LPI 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.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 13.74%) |
|
|---|---|---|---|
| 2019 | 61.00 | Analyst x3 | 53.63 |
| 2020 | 89.53 | Analyst x4 | 69.20 |
| 2021 | 137.45 | Analyst x4 | 93.41 |
| 2022 | 179.23 | Est @ 30.4% | 107.09 |
| 2023 | 218.84 | Est @ 22.1% | 114.96 |
| 2024 | 254.49 | Est @ 16.29% | 117.54 |
| 2025 | 285.59 | Est @ 12.22% | 115.97 |
| 2026 | 312.35 | Est @ 9.37% | 111.51 |
| 2027 | 335.41 | Est @ 7.38% | 105.28 |
| 2028 | 355.48 | Est @ 5.99% | 98.10 |
| Present value of next 10 years cash flows | $986.69 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $355.48 × (1 + 2.73%) ÷ (13.74% – 2.73%) |
$3,316.69 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $3,316.69 ÷ (1 + 13.74%)10 |
$915.27 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $986.69 + $915.27 |
$1,901.96 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $1,901.96 / 228.68 |
$8.32 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $8.32 |
| Current discount | Discount to share price of
$2.54
= -1 x ($2.54 - $8.32) / $8.32 |
69.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- 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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $0.99 |
| NYSE:LPI Share Price ** | NYSE (2019-06-19) in USD | $2.54 |
| United States of America Oil and Gas Industry PE Ratio | Median Figure of 102 Publicly-Listed Oil and Gas Companies | 13.25x |
| United States of America Market PE Ratio | Median Figure of 3,092 Publicly-Listed Companies | 17.87x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Laredo Petroleum.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:LPI Share Price ÷ EPS (both in USD) = 2.54 ÷ 0.99 |
2.56x |
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 US Oil and Gas industry average.
- Laredo Petroleum is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Laredo Petroleum's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 2.56x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts |
0.9%per year |
| United States of America Oil and Gas Industry PEG Ratio | Median Figure of 79 Publicly-Listed Oil and Gas Companies | 0.38x |
| United States of America Market PEG Ratio | Median Figure of 2,128 Publicly-Listed Companies | 1.53x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 2.56x ÷ 0.9% |
2.77x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $5.06 |
| NYSE:LPI Share Price * | NYSE (2019-06-19) in USD | $2.54 |
| United States of America Oil and Gas Industry PB Ratio | Median Figure of 197 Publicly-Listed Oil and Gas Companies | 1.02x |
| United States of America Market PB Ratio | Median Figure of 5,246 Publicly-Listed Companies | 1.8x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:LPI Share Price ÷ Book Value per Share (both in USD) = 2.54 ÷ 5.06 |
0.5x |
* 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 US Oil and Gas industry average.
Value checks
We assess Laredo Petroleum's value by looking at:- 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. )
- 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)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check) 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.
LPI Future Performance
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!
Earnings growth vs Low Risk Savings
- Laredo Petroleum's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
- Laredo Petroleum's earnings growth is positive but not above the United States of America market average.
- Laredo Petroleum's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:LPI Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts | 0.9% |
| NYSE:LPI Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts | -1.3% |
| United States of America Oil and Gas Industry Earnings Growth Rate | Market Cap Weighted Average | 13% |
| United States of America Oil and Gas Industry Revenue Growth Rate | Market Cap Weighted Average | 4% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess Laredo Petroleum's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Laredo Petroleum has a total score of 0/6, 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.
LPI 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
Past Earnings growth analysis
- 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 US Oil and Gas industry average.
Earnings and Revenue History
All data from Laredo Petroleum Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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 US 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).
Past performance checks
We assess Laredo Petroleum's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
LPI 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.
- 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
Assets
Liabilities and shares
- 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.
All data from Laredo Petroleum Company Filings, last reported 2 months ago.
| 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).
Financial health checks
We assess Laredo Petroleum's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Laredo Petroleum has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
LPI 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
If you bought
$2,000 of
Laredo Petroleum
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- 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.
| 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 |
| United States of America Oil and Gas Industry Average Dividend Yield | Market Cap Weighted Average of 67 Stocks | 3.8% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2011 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| 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.
Income/ dividend checks
We assess Laredo Petroleum's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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.
LPI Management
CEO
| 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 United States of America.
Management Team Tenure
Average tenure and age of the Laredo Petroleum management team in years:
- The average tenure for the Laredo Petroleum management team is less than 2 years, this suggests a new team.
Management Team
Randy Foutch
Founder
$9M
66
12.7 yrs
Tommye Chandler
Senior VP & COO
$1M
47
0.7 yrs
Jason Pigott
President & Director
44
0.1 yrs
Michael Beyer
Senior VP & CFO
42
0.2 yrs
Ron Hagood
Vice President of Investor Relations
1.6 yrs
Mark Denny
Senior VP
0.8 yrs
Benjamin Klein
Vice President of Midstream & Marketing
1.8 yrs
Board of Directors Tenure
Average tenure and age of the Laredo Petroleum board of directors in years:
- 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
President & Director
44
0.1 yrs
Pam Pierce
Independent Director
$271K
63
12.1 yrs
Randy Foutch
Founder
$9M
66
12.7 yrs
Ed Segner
Lead Independent Director
$300K
64
Peter Randall Kagan
Independent Director
$250K
50
11.9 yrs
James Levy
Independent Director
$250K
42
12.1 yrs
Bill Scoggins
Independent Director
$250K
70
7.1 yrs
Frances R. Hawes
Independent Director
$47K
63
0.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 08. May 19 | Sell | SailingStone Capital Partners LLC | Company | 12. Mar 19 | 26. Apr 19 | -188,427 | $3.17 | $-589,389 | ||
| 14. Feb 19 | Sell | SailingStone Capital Partners LLC | Company | 20. Dec 18 | 24. Jan 19 | -2,880,472 | $4.11 | $-11,838,740 | ||
| 14. Feb 19 | Buy | SailingStone Capital Partners LLC | Company | 20. Dec 18 | 05. Feb 19 | 1,023,789 | $4.15 | $4,248,724 | ||
| 28. Sep 18 | Sell | Warburg Pincus LLC | Company | 27. Sep 18 | 27. Sep 18 | -12,300,000 | $8.08 | $-99,384,000 | ||
| 12. Sep 18 | Sell | Warburg Pincus LLC | Company | 11. Sep 18 | 11. Sep 18 | -14,200,000 | $7.42 | $-105,364,000 | ||
Management checks
We assess Laredo Petroleum's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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.
LPI News
Simply Wall St News
What Investors Should Know About Laredo Petroleum, Inc.'s (NYSE:LPI) Financial Strength
Additionally, LPI has generated US$469m in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 43%, meaning that LPI’s debt is appropriately covered by operating cash. … Looking at LPI’s US$204m in current liabilities, it appears that the company may not be able to easily meet these obligations given the level of current assets of US$173m, with a current ratio of 0.85x. … Next Steps: Although LPI’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised.
Simply Wall St - – Full articleDid Changing Sentiment Drive Laredo Petroleum's (NYSE:LPI) Share Price Down A Painful 89%?
One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Laredo Petroleum moved from a loss to profitability. … A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.
Simply Wall St - – Full articleDoes The Laredo Petroleum, Inc. (NYSE:LPI) Share Price Tend To Follow The Market?
Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
Simply Wall St - – Full articleHere's How P/E Ratios Can Help Us Understand Laredo Petroleum, Inc. (NYSE:LPI)
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use Laredo Petroleum, Inc.'s (NYSE:LPI) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleHere's What Laredo Petroleum, Inc.'s (NYSE:LPI) ROCE Can Tell Us
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:
Simply Wall St - – Full articleHow Financially Strong Is Laredo Petroleum, Inc. (NYSE:LPI)?
Investors are always looking for growth in small-cap stocks like Laredo Petroleum, Inc. … However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is
Simply Wall St - – Full articleHere's How P/E Ratios Can Help Us Understand Laredo Petroleum Inc (NYSE:LPI)
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Laredo Petroleum has a price to earnings ratio of 1.91, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhy Laredo Petroleum Inc (NYSE:LPI) Looks Like A Quality Company
We'll use ROE to examine Laredo Petroleum Inc (NYSE:LPI), by way of a worked example. … That means that for every $1 worth of shareholders' equity, it generated $0.57 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleHow Does Laredo Petroleum Inc (NYSE:LPI) Affect Your Portfolio Volatility?
Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Simply Wall St - – Full articleWhat Does Laredo Petroleum Inc's (NYSE:LPI) PE Ratio Tell You?
Laredo Petroleum Inc (NYSE:LPI) is currently trading at a trailing P/E of 3.3x, which is lower than the industry average of 13.3x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … See our latest analysis for Laredo Petroleum
Simply Wall St - – Full articleLPI 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. |
| LPI | |
| Exchange: | NYSE |
| Founded: | 2006 |
| $580,852,569 | |
| 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
Industry
| Oil and Gas Exploration and Production | |
| Energy |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/20 00:28 |
| End of day share price update: | 2019/06/19 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.
