Laredo Petroleum guides production lower quarter-over-quarter

Laredo Petroleum Inc., Tulsa, Okla., expects fourth-quarter 2022 production of 72,500-75,500 boe/d (32,000-34,000 b/d of oil) and capital expenditures (excluding non-budgeted acquisitions) of $135-145 million (OGJ Online, Oct. 19, 2022).

The guidance has incorporated increased expectations for production downtime associated with offset operator completions. The Permian basin-focused company is currently operating two drilling rigs and one completions crew and expects to complete 13 wells and turn-in-line 11 wells in this year’s fourth quarter.

The company reported the guidance as part of its third-quarter 2022 results Nov. 3.

For this year’s third quarter, the company reported net income of $337.5 million and cash flows from operating activities of $182.6 million. Adjusted net income was $89.2 million.

Laredo's total and oil production during the period averaged 79,613 boe/d and 34,994 b/d, respectively.

The company completed 11 wells and turned-in-line 12 wells during third-quarter 2022. Total incurred capital expenditures were $140 million, excluding non-budgeted acquisitions and leasehold expenditures. Investments included $120 million in drilling and completions activities, inclusive of $6 million of non-operated activities, $2 million in land, exploration and data related costs, $10 million in infrastructure, including Laredo Midstream Services investments, and $8 million in other capitalized costs. Non-budgeted acquisitions and leasehold expenditures totaled $4 million.