NYSE:LPI

Stock Analysis Report

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.


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

-4.4%

LPI

5.9%

US Oil and Gas

7.2%

US Market


1 Year Return

-87.4%

LPI

-56.4%

US Oil and Gas

-10.4%

US Market

Return vs Industry: LPI underperformed the US Oil and Gas industry which returned -56.4% over the past year.

Return vs Market: LPI underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

LPIIndustryMarket
7 Day-4.4%5.9%7.2%
30 Day-64.6%-35.6%-12.6%
90 Day-86.7%-51.6%-19.4%
1 Year-87.4%-87.4%-54.6%-56.4%-8.5%-10.4%
3 Year-97.4%-97.4%-51.8%-56.5%15.8%8.3%
5 Year-97.5%-97.5%-55.3%-62.2%35.8%21.0%

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

Valuation

Is Laredo Petroleum undervalued compared to its fair value and its price relative to the market?

0.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LPI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LPI's fair value to establish if it is undervalued.


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 (0.5x).


Next Steps

Future Growth

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

84.6%

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 (1.7%).

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 (-9.9% per year).

High Growth Revenue: LPI's revenue is forecast to decline over the next 3 years (-9.9% 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?

41.9%

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 41.9% 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 (-11.4%).


Return on Equity

High ROE: LPI has a negative Return on Equity (-40.68%), 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 ($200.5M) exceed its short term liabilities ($170.9M).

Long Term Liabilities: LPI's short term assets ($200.5M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: LPI's debt to equity ratio (139%) is considered high.

Reducing Debt: LPI's debt to equity ratio has increased from 113.3% to 139% over the past 5 years.


Balance Sheet

Inventory Level: LPI has a high level of physical assets or inventory.

Debt Coverage by Assets: LPI's debt is not covered by short term assets (assets are 0.2x debt).


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's 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 payouts.

High Dividend: Unable to evaluate LPI's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

1.4yrs

Average management tenure


CEO

Jason Pigott (45yo)

0.42

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Randy Foutch
Founder & Non-Executive Chairman13.42yrsUS$8.84m0.56% $502.8k
Tommye Chandler
Senior VP & COO1.42yrsUS$1.35m0.41% $364.6k
Mikell Pigott
President0.42yrno data0.91% $814.6k
Michael Beyer
Senior VP & CFO0.83yrno data0.27% $240.2k
Brandon Brown
VP & Chief Information Officer0.58yrno datano data
Ronald Hagood
Vice President of Investor Relations2.25yrsno datano data
Mark Denny
Senior VP1.58yrsno data0.15% $134.6k
Benjamin Klein
Vice President of Midstream & Marketing2.42yrsno datano data
Amelia Harding
Vice President of Human Resources0.58yrno datano data

1.4yrs

Average Tenure

48yo

Average Age

Experienced Management: LPI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Randy Foutch
Founder & Non-Executive Chairman13.42yrsUS$8.84m0.56% $502.8k
Mikell Pigott
President0.42yrno data0.91% $814.6k
Peter Randall Kagan
Independent Director12.67yrsUS$250.00k0.11% $97.4k
Pamela Pierce
Independent Director12.83yrsUS$271.00k0.15% $130.9k
Frances R. Hawes
Independent Director1.25yrsUS$46.88k0.056% $49.9k
Edmund Segner
Lead Independent Directorno dataUS$300.00k0.079% $71.1k
Myles Scoggins
Independent Director7.83yrsUS$250.00k0.11% $99.9k
James Levy
Independent Director12.83yrsUS$250.00k0.12% $107.1k
William Albrecht
Independent Directorno datano data0.043% $38.2k
Craig Jarchow
Independent Director0.25yrno data0.013% $11.6k

10.3yrs

Average Tenure

64yo

Average Age

Experienced Board: LPI's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LPI 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$89.468m
  • Shares outstanding: 233.90m
  • Website: https://www.laredopetro.com

Number of Employees


Location

  • Laredo Petroleum, Inc.
  • 15 West Sixth Street
  • Suite 900
  • Tulsa
  • Oklahoma
  • 74119
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LPINYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2011
8LPDB (Deutsche Boerse AG)YesCommon StockDEEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:07
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.