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 18 days ago.
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
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Laredo Petroleum. This is due to cash flow or dividend data being
unavailable. The share price is
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
is considered below, and whether this is a fair price.
Price based on past earnings
Laredo Petroleum's earnings available for a low price, and how does
this compare to other companies in the same industry?
Laredo Petroleum's earnings are expected to grow by 6.1% 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.
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)
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.
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.
A company's financial position is much like your own financial position,
it includes everything you own
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.
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
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.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
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.
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
management team in years:
The average tenure for the Laredo Petroleum management team is less than 2 years, this suggests a new team.
Senior VP & COO
Senior VP & CFO
Vice President of Investor Relations
Vice President of Midstream & Marketing
Board of Directors Tenure
Average tenure and age of the
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.
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.
Did 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.
Does 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.
Here'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)
Here'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:
How 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
Here'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)
Why 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
How 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.
What 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
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.
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