Laredo Petroleum Inc., Tulsa, expects fourth-quarter 2022 total production to be 72,500-75,500 boe/d, and oil production to be 32,000-34,000 b/d, down from this year’s third quarter, with capital expenditures of $135-145 million, in-line with third-quarter 2022 levels.
The company provided the update with preliminary third-quarter results in a release Oct. 18 ahead of complete quarterly results expected Nov. 3.
Updated fourth-quarter expectations include revised assumptions related to the impact of offset operator completions, production downtime due to increased equipment lead times, and a 1,600 boe/d (75% oil) reduction in volumes related to the sale of non-operated acreage in Howard County, Texas, to Northern Oil and Gas Inc., which closed Oct. 3, 2022, the company said (OGJ Online, Aug. 7, 2022).
In third-quarter 2022, the Permian basin-focused operator produced an average 79,500 boe/d, within guidance of 78,500-81,500 boe/d. Oil production for the quarter averaged 35,000 b/d, below guidance of 35,500-37,500 b/d. Oil production was negatively impacted as offset operator completions in Howard County affected more Laredo wells than expected, the company said. Of the impacted wells, newer, higher-production packages have returned to previous production expectations while older packages are taking longer than anticipated to return to expected production levels, the company said.
Total incurred capital expenditures during the third quarter were $140 million, excluding non-budgeted acquisitions and leasehold expenditures, higher than guidance of $120 million. Increased investments were related to the timing of drilling and completions activity and infrastructure build out.
