2013-03-12 12:02:54 -
TULSA, OK - March 12, 2013 - Laredo Petroleum Holdings, Inc. (NYSE: LPI)
("Laredo" or the "Company") today announced 2012 fourth-quarter results,
reporting net income attributable to common stockholders of $11.8 million, or
$0.09 per diluted share. Adjusted net income, a non-GAAP financial measure, for
the quarter was $13.5 million, or $0.11 per diluted share. Adjusted EBITDA, a
non-GAAP financial measure, for the fourth quarter of 2012 was $113.9 million.
For the year ended December 31, 2012, Laredo reported net income attributable to
common stockholders of $61.7 million, or $0.48 per diluted share, adjusted net
income attributable to common stockholders of $72.4 million, or $0.57 per
diluted share, and adjusted EBITDA of $452.6 million. (Please see supplemental
financial information at the end of this news release for reconciliations of
non-GAAP financial measures.)
2012 Full-year Highlights
* Increased oil production 42% to 4.8 million barrels, representing 42% of
total production
* Increased total production volumes 31% to a record 11.3 million barrels of
oil equivalent (MMBOE)
* Increased total revenue to $588.1 million in 2012, an increase of 15% from
2011
* Increased operating cash flow to $376.8 million for 2012 compared to $344.1
million in 2011
* Confirmed commercial viability of all four zones initially targeted for
horizontal development on the Permian-Garden City acreage
* Replaced 385% of annual production
* Grew reserves 21% to a record 188.6 MMBOE, 52% of which are oil
"At Laredo, we set challenging goals and we plan for success, but even we didn't
realize how big the prize was that we had captured in our Permian-Garden City
asset," said Randy A. Foutch, Laredo Chairman and Chief Executive Officer. "In
2012, we set out to grow reserves, production and operating cash flow and we did
just that. Reserves and production each grew to record levels, up 21% and 31%,
respectively, as we continued our focus on delineation activities in the oil-
rich Permian Basin, and operating cash flows increased 10%. We believe our 2012
drilling activities, which achieved a success rate of greater than 99%,
confirmed the commercial horizontal development viability of approximately
360,000 net equivalent acres in the Permian Basin from four stacked shale zones.
We believe just this de-risked acreage identifies total net resource potential
of more than 1.6 billion barrels of oil equivalent (on a two-stream basis),
which is predominantly oil, and is more than eight times our existing booked
reserves. Today, we are preparing to methodically accelerate the exploitation
and cost-effective development of this acreage and de-risk the remaining acreage
to maximize its value to our stockholders."
Permian-Garden City
Throughout 2012, Laredo continued its disciplined and deliberate approach to
delineate its core acreage position in the Garden City area of the Permian Basin
by successfully drilling and completing 35 horizontal wells. This activity has
confirmed the economic potential of each of the initial four identified zones
(Upper Wolfcamp, Middle Wolfcamp, Lower Wolfcamp and Cline) targeted for
horizontal development. At December 31, 2012, the Company had completed a total
of 60 horizontal wells in the initial four targeted horizontal zones on its
Permian-Garden City acreage, including 23 wells in the Upper Wolfcamp, two wells
in the Middle Wolfcamp, one well in the Lower Wolfcamp and 34 wells in the Cline
shales.
During 2012, the Company increased the lateral lengths of its horizontal wells
and continued to optimize completion techniques and processes. The following
table presents the average 30-day initial production rate, presented on a two-
stream basis, for the Company's top ten horizontal wells in the Permian-Garden
City area, nine of which were brought on production in the past year.
30-Day Average Initial Production
---------------------------------------
Natural Two-Stream Percent
Well Name Shale Zone Oil Gas Equivalent Oil
--------------------- ----------------- ------- --------- ------------ --------
BOPD Mcf/D BOE/D %
LANE TRUST-C/E
421HU Upper Wolfcamp 901 1,694 1,183 76 %
SUGG-C-27-1HM Middle Wolfcamp 760 1,334 982 77 %
SUGG-D-106-2HL Lower Wolfcamp 635 2,005 969 66 %
SUGG-A-183-1HM Middle Wolfcamp 724 1,118 910 80 %
SUGG-A-157-1H Upper Wolfcamp 667 1,451 909 73 %
SUGG-E/A197-1HU Upper Wolfcamp 617 1,489 865 71 %
SUGG-A-143-1HU Upper Wolfcamp 640 1,235 846 76 %
SUGG-E/A208-1HU Upper Wolfcamp 558 1,708 843 66 %
BEARKAT-150-5H Cline 614 1,325 835 74 %
BEARKAT-803H
Cline((a)) 633 935 789 80 %
((a) )Designates a short lateral of less than 6,000 feet.
The Company increased its Permian-Garden City acreage holdings to approximately
145,800 net acres at year-end 2012. Drilling results from more than 800 vertical
wells, of which approximately 250 are deep vertical wells, have reduced the risk
and uncertainty ("de-risked") associated with this entire acreage block for
vertical development of the Wolfberry interval. In addition, based on actual
production history from the Company's horizontal wells that have been correlated
with core analysis, single-zone tests and supporting industry activity, the
Company now believes that it has de-risked the effective equivalent of
approximately 360,000 net acres in the Permian-Garden City area for horizontal
development from the four stacked zones. By zone, the de-risked acreage consists
of approximately 80,000 net acres in the Upper Wolfcamp, approximately 80,000
net acres in the Middle Wolfcamp, approximately 73,000 net acres in the Lower
Wolfcamp and approximately 127,000 net acres in the Cline shale. There is
significant overlap of the de-risked acreage by zone that provides development
opportunities for multiple stacked laterals to utilize common drilling pads and
surface facilities. A pilot program to test the vertical and horizontal spacing
criteria of the development laterals, within the four stacked zones, is expected
to begin in the second quarter of 2013. In addition, the delineation program
will continue in 2013 to de-risk additional acreage, by zone, for horizontal
development.
Permian-China Grove
Laredo continued to capitalize on its geologic expertise in the Permian Basin by
amassing 57,750 net acres primarily in Mitchell County, Texas as of December
31, 2012. The Company believes that this acreage is highly prospective for
horizontal Cline development based on geologic mapping and initial results of
vertical drilling activity. We are currently in the process of completing our
first horizontal Cline shale well on this acreage. The Company plans to drill at
least one additional horizontal Cline shale well on this acreage in 2013.
Anadarko Granite Wash
During 2012, Laredo drilled and completed 13 horizontal wells in the Anadarko
Granite Wash area with a 100% success rate. At year-end 2012, the Company was
operating three horizontal rigs on this acreage. As previously announced, the
Company has retained Wells Fargo Securities, LLC to assist in the possible
divestment of various assets outside of the Permian Basin, including the
Anadarko Granite Wash assets.
Commodity Derivatives
Laredo maintains an active hedging program to underpin its capital programs and
reduce, but not eliminate, the variability in its anticipated cash flow due to
fluctuations in commodity prices. For the balance of 2013, the Company swapped
an additional 4,500 BOPD at $98.10 a barrel and swapped 3,500 BOPD at the
weighted average price of $93.66 per barrel for 2014. Laredo also added basis
swaps covering 6,000 BOPD at a price of ($1.00) per barrel for the remainder of
2013 and 2014, to limit the Company's exposure to the Midland-to-Cushing
differential. (Please see the Company's Annual Report on Form 10-K for a
description of outstanding commodity derivative positions.)
Liquidity
At December 31, 2012, the Company had $165 million drawn on its senior secured
credit facility, which has a borrowing base of $825 million and a total facility
size of $2.0 billion. Additionally, at December 31, 2012, the Company had
approximately $33 million in cash and marketable securities resulting in total
liquidity of approximately $693 million. As of March 8, 2013, the outstanding
balance under the Company's senior secured credit facility was $300 million.
Earnings and Operational Update Conference Call Details
Laredo has scheduled a conference call today at 9:00 a.m. CT (10:00 a.m. ET) to
discuss management's outlook and its fourth-quarter and full-year 2012 financial
and operating results. Participants may access the webcast, titled "Q4 and Full-
Year 2012 Laredo Petroleum Holdings, Inc. Earnings Conference Call," from the
Company's website, www.laredopetro.com, under the tab for "Investor Relations."
The conference call may also be accessed by dialing 1-866-271-5140, using
conference code 50609315. It is recommended that participants dial in
approximately 10 minutes prior to the start of the conference call.
International participants may access the call by dialing (617) 213-8893, using
conference code 50609315. A telephonic replay will be available approximately
two hours after the call on March 12, 2013 through Tuesday, March 19, 2013.
Participants may access this replay by dialing (888) 286-8010, using conference
code 24183052.
About Laredo
Laredo Petroleum Holdings, Inc. is an independent energy company with
headquarters in Tulsa, Oklahoma. Laredo's business strategy is focused on the
exploration, development and acquisition of oil and natural gas properties
primarily in the Permian and Mid-Continent regions of the United States.
Additional information about Laredo may be found on its website at
www.laredopetro.com.
Forward-Looking Statements
This press release (and oral statements made regarding the subjects of this news
release, including the conference call announced herein) contains forward-
looking statements as defined under Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical facts, that address
activities that Laredo assumes, plans, expects, believes, intends, projects,
estimates or anticipates (and other similar expressions) will, should or may
occur in the future are forward-looking statements. The forward-looking
statements are based on management's current belief, based on currently
available information, as to the outcome and timing of future events. Our
expectations regarding our business outlook and business plans, including the
potential divestiture of any assets; oil and natural gas markets; cost and
availability of resources, legal and regulatory conditions and other matters are
our forecasts regarding these matters.
General risks relating to Laredo include, but are not limited to, the risks
described in its Annual Report on Form 10-K for the year ended December
31, 2012 and those set forth from time to time in other filings with the
Securities and Exchange Commission ("SEC"). These documents are available
through Laredo's website at www.laredopetro.com under the tab "Investor
Relations" or through the SEC's Electronic Data Gathering and Analysis Retrieval
System ("EDGAR") at www.sec.gov. Any of these factors could cause Laredo's
actual results and plans to differ materially from those in the forward-looking
statements. Therefore, Laredo can give no assurance that its future results will
be as estimated. Laredo does not intend to, and disclaims any obligation to,
update or revise any forward-looking statement.
The SEC generally permits oil and gas companies, in filings made with the SEC,
to disclose proved reserves, which are reserve estimates that geological and
engineering data demonstrate with reasonable certainty to be recoverable in
future years from known reservoirs under existing economic and operating
conditions and certain probable and possible reserves that meet the SEC's
definitions for such terms. In this communication, the Company may use the term
"resource potential" which the SEC guidelines restrict from being included in
filings with the SEC without strict compliance with SEC definitions. "Resource
potential" refers to the Company's internal estimates of unbooked hydrocarbon
quantities that may be potentially added to proved reserves, largely from a
specified resource play. A resource play is a term used by the Company to
describe an accumulation of hydrocarbons known to exist over a large areal
expanse and/or thick vertical section, which, when compared to a conventional
play, typically has a lower geological and/or commercial development risk.
Unbooked resource potential does not constitute reserves within the meaning of
the Society of Petroleum Engineer's Petroleum Resource Management System or SEC
rules and does not include any proved reserves. Actual quantities that may be
ultimately recovered from the Company's interests will differ substantially.
Factors affecting ultimate recovery include the scope of the Company's ongoing
drilling program, which will be directly affected by the availability of
capital, drilling and production costs, availability of drilling services and
equipment, drilling results, lease expirations, transportation constraints,
regulatory approvals and other factors, and actual drilling results, including
geological and mechanical factors affecting recovery rates. Estimates of
unproved reserves may change significantly as development of the Company's core
assets provides additional data. In addition, our production forecasts and
expectations for future periods are dependent upon many assumptions, including
estimates of production decline rates from existing wells and the undertaking
and outcome of future drilling activity, which may be affected by significant
commodity price declines or drilling cost increases.
Laredo Petroleum Holdings, Inc.
Condensed consolidated statements of operations
For the three months ended For the years ended
December 31, December 31,
----------------------------- --------------------------
(in thousands,
except per share
data) 2012 2011 2012 2011
---------------------- ------------- ------------- ------------- ------------
(unaudited)
Revenues:
Oil and natural
gas sales $ 151,249 $ 138,196 $ 583,569 $ 506,255
Natural gas
transportation and
treating 1,159 776 4,511 4,015
------------- ------------- ------------- ------------
Total revenues 152,408 138,972 588,080 510,270
------------- ------------- ------------- ------------
Costs and expenses:
Lease operating
expenses 20,116 14,048 67,325 43,306
Production and ad
valorem taxes 9,308 8,652 37,637 31,982
General and
administrative 13,490 11,806 52,050 44,953
Stock-based
compensation 2,454 1,024 10,056 6,111
Depreciation,
depletion and
amortization 67,504 61,390 243,649 176,366
Other 1,697 2,389 5,583 5,653
------------- ------------- ------------- ------------
Total costs and
expenses 114,569 99,309 416,300 308,371
------------- ------------- ------------- ------------
Operating income 37,839 39,663 171,780 201,899
------------- ------------- ------------- ------------
Non-operating income
(expense):
Realized and
unrealized gain
(loss):
Commodity
derivative financial
instruments, net 3,733 (21,804 ) 8,800 21,047
Interest rate
derivatives, net (3 ) 6 (412 ) (1,311 )
Interest expense (24,791 ) (15,518 ) (85,572 ) (50,580 )
Interest and other
income 15 19 59 108
Write-off of
deferred loan costs - - - (6,195 )
Loss on disposal
of assets (43 ) (5 ) (52 ) (40 )
------------- ------------- ------------- ------------
Non-operating
expense, net (21,089 ) (37,302 ) (77,177 ) (36,971 )
------------- ------------- ------------- ------------
Income before income
taxes 16,750 2,361 94,603 164,928
------------- ------------- ------------- ------------
Income tax expense:
Deferred income
tax expense (4,922 ) (795 ) (32,949 ) (59,374 )
------------- ------------- ------------- ------------
Net income $ 11,828 $ 1,566 $ 61,654 $ 105,554
------------- ------------- ------------- ------------
Net income per
common share((1)):
Basic $ 0.09 $ 0.01 $ 0.49 $ 0.98
Diluted $ 0.09 $ 0.01 $ 0.48 $ 0.98
Weighted average
common shares
outstanding((2)):
Basic 127,100 108,987 126,957 107,187
Diluted 128,248 109,899 128,171 108,099
______________________________________________________________________________
(1) For the quarter and the year ended December 31, 2011, represents pro
forma net income per common share.
(2) For the quarter and the year ended December 31, 2011, pro forma
weighted average diluted shares outstanding has been computed taking
into account (1) the conversion ratio at the time of the Laredo
corporate reorganization of all private company ownership units into
shares of the company common stock as if the conversion occurred as
of the beginning of the year and (2) shares of common stock issued by
the Company in the IPO.
Laredo Petroleum Holdings, Inc.
Condensed consolidated balance sheets
December December
(in thousands) 31, 2012 31, 2011
------------------------------------------------ --------------- --------------
Assets:
Current assets $ 137,437 $ 122,938
Net property and equipment 2,113,891 1,378,509
Other noncurrent assets 86,976 126,205
----------------- --------------
Total assets $ 2,338,304 $ 1,627,652
----------------- --------------
Liabilities and stockholders' equity:
Current liabilities $ 262,068 $ 214,361
Long-term debt 1,216,760 636,961
Other noncurrent liabilities 27,753 16,317
Stockholders' equity 831,723 760,013
----------------- --------------
Total liabilities and stockholders'
equity $ 2,338,304 $ 1,627,652
----------------- --------------
Laredo Petroleum Holdings, Inc.
Condensed consolidated statements of cash flows
For the three months For the years ended
ended December 31, December 31,
-------------------------- --------------------------
(in thousands) 2012 2011 2012 2011
------------------------- ------------ ------------- ------------ -------------
(unaudited)
Cash flows from
operating activities:
Net income $ 11,828 $ 1,566 $ 61,654 $ 105,554
Adjustments to
reconcile net income to
net cash provided by
operating activities:
Deferred income tax
expense 4,922 795 32,949 59,374
Depreciation,
depletion and
amortization 67,504 61,390 243,649 176,366
Impairment expense - - - 243
Non-cash stock-
based compensation 2,454 1,024 10,056 6,111
Accretion of asset
retirement obligations 329 160 1,200 616
Unrealized loss
(gain) on derivative
financial instruments,
net 2,301 23,157 16,522 (20,890 )
Premiums paid for
derivative financial
instruments (1,596 ) (21 ) (6,118 ) (555 )
Amortization of
premiums paid for
derivative financial
instruments 173 142 668
471
Amortization of
deferred loan costs 1,283 1,056 4,816 3,871
Write-off of
deferred loan costs - - - 6,195
Amortization of
October 2011 Notes
premium (52 ) (39 ) (202 ) (39 )
Amortization of
other assets 4 4 19 19
Loss on disposal of
assets 43 5 52 40
------------ ------------- ------------ -------------
Cash flow from
operations before
changes in working
capital 89,193 89,239 365,265 337,376
------------ ------------- ------------ -------------
Changes in working
capital 3,833 21,215 9,616 6,849
Changes in other
noncurrent liabilities
and fair value of
performance unit awards 293 (51 ) 1,895 (149 )
------------ ------------- ------------ -------------
Net cash provided
by operating activities 93,319 110,403 376,776 344,076
------------ ------------- ------------ -------------
Cash flows from
investing activities:
Acquisitions of oil
and gas properties - - (20,496 ) -
Capital expenditures:
Oil and natural gas
properties (196,170 ) (183,141 ) (895,312 ) (687,062 )
Pipeline and gas
gathering assets (5,148 ) (3,651 ) (16,241 ) (13,368 )
Other fixed assets (2,586 ) (766 ) (8,755 ) (6,413 )
Proceeds from other
fixed asset disposals 19 35 53 56
------------ ------------- ------------ -------------
Net cash used in
investing activities (203,885 ) (187,523 ) (940,751 ) (706,787 )
------------ ------------- ------------ -------------
Cash flows from
financing activities:
Broad Oak
transaction - - - (81,963 )
Borrowings on
revolving credit
facilities 115,000 160,000 360,000 790,100
Payments on
revolving credit
facilities - (600,000 ) (280,000 ) (1,096,700 )
Payments on term
loan - - - (100,000 )
Issuance of 2019
Notes - 202,000 - 552,000
Issuance of 2022
Notes - - 500,000 -
Proceeds from
initial public offering - 319,378 - 319,378
Purchase of equity
interests and units,
net - (164 ) - (164 )
Purchase of
treasury stock - (3 ) - (3 )
Payments for loan
costs (327 ) (4,338 ) (10,803 ) (23,170 )
------------ ------------- ------------ -------------
Net cash provided
by financing activities 114,673 76,873 569,197 359,478
------------ ------------- ------------ -------------
Net increase (decrease)
in cash and cash
equivalents 4,107 (247 ) 5,222 (3,233 )
Cash and cash
equivalents, beginning
of period 29,117 28,249 28,002 31,235
------------ ------------- ------------ -------------
Cash and cash
equivalents, end of
period $ 33,224 $ 28,002 $ 33,224 $ 28,002
------------ ------------- ------------ -------------
Laredo Petroleum Holdings, Inc.
Selected operating data
(Unaudited)
For the three months ended For the years ended
December 31, December 31,
---------------------------- ----------------------
2012 2011 2012 2011
--------------------------- ----------- ---------------- ----------- ----------
Production data:
Oil (MBbl) 1,350 949 4,775 3,368
Natural gas (MMcf) 10,255 8,807 39,148 31,711
Oil equivalents
(MBOE)((1)(2)) 3,060 2,417 11,300 8,654
Average daily
production (BOE/d)((2)) 33,261 26,270 30,874 23,709
% Oil 44 % 39 % 42 % 39 %
Average sales prices:
Oil, realized((3)
)($/Bbl) $ 80.16 $ 89.96 $ 86.89 $ 91.00
Natural gas,
realized((3) )($/Mcf) 4.19 5.99 4.31 6.30
Average price, realized
($/BOE)((3)) 49.42 57.15 51.65 58.50
Oil, hedged((4))
($/Bbl) 81.00 88.14 86.69 88.62
Natural gas,
hedged((4)) ($/Mcf) 4.68 6.47 5.02 6.67
Average price, hedged
($/BOE)((4)) 51.44 58.19 54.03 58.93
Average costs per BOE:
Lease operating
expenses $ 6.57 $ 5.81 $ 5.96 $ 5.00
Production and ad
valorem taxes 3.04 3.58 3.33 3.70
General and
administrative((5)) 5.21 5.31 5.50 5.90
DD&A 22.06 25.40 21.56 20.38
----------- ---------------- ----------- ----------
Total $ 36.88 $ 40.10 $ 36.35 $ 34.98
----------- ---------------- ----------- ----------
_______________________________________________________________________________
(1) Bbl equivalents are calculated using a conversion rate of six Mcf per
one Bbl.
(2) The volumes presented are based on actual results and are not
calculated using the rounded numbers in the table above.
(3) Realized crude oil and natural gas prices are the actual prices
realized at the wellhead after all adjustments for NGL content,
quality, transportation fees, geographical differentials, marketing
bonuses or deductions and other factors affecting the price at the
wellhead.
(4) Hedged prices reflect the after effect of our commodity hedging
transactions on our average sales prices. Our calculation of such
after effects include realized gains and losses on cash settlements
for commodity derivatives, which do not qualify for hedge accounting.
(5) General and administrative includes non-cash stock-based compensation
of $2.5 million and $1.0 million for the three months ended December
31, 2012 and 2011, respectively, and $10.1 million and $6.1 million
for the years ended December 31, 2012 and 2011, respectively.
Excluding stock-based compensation from the above metric results in
general and administrative cost per BOE of $4.41 and $4.88 for the
three months ended December 31, 2012 and 2011, respectively, and
$4.61 and $5.19 for the years ended December 31, 2012 and 2011,
respectively.
Laredo Petroleum Holdings, Inc.
Costs incurred
Costs incurred in the acquisition and development of oil and natural gas assets
are presented below:
For the three months ended For the years ended
December 31, December 31,
----------------------------- --------------------------
(in thousands) 2012 2011 2012 2011
---------------------- ------------- --------------- ------------- ------------
(unaudited)
Property acquisition
costs:
Proved $ - $ - $ 16,925 $ -
Unproved - - 3,693 -
Exploration 27,669 22,211 93,266 62,888
Development
costs((1)) 196,292 195,001 839,118 660,922
------------- --------------- ------------- ------------
Total costs incurred $ 223,961 $ 217,212 $ 953,002 $ 723,810
------------- --------------- ------------- ------------
_______________________________________________________________________________
(1) The costs incurred for oil and natural gas development activities
include $4.0 million and $3.8 million in asset retirement obligations
for the three months ended December 31, 2012 and 2011, respectively,
and $7.4 million and $4.5 million in asset retirement obligations for
the years ended December 31, 2012, and 2011, respectively.
Laredo Petroleum Holdings, Inc.
Supplemental reconciliation of GAAP to non-GAAP financial measure
(Unaudited)
Non-GAAP financial measures and reconciliations
Adjusted EBITDA is a non-GAAP financial measure that we define as net income or
loss plus adjustments for interest expense, depreciation, depletion and
amortization, impairment of long-lived assets, write-off of deferred loan costs
and other, gains or losses on sale of assets, unrealized gains or losses on
derivative financial instruments, realized losses on interest rate swaps,
realized gains or losses on canceled derivative financial instruments, non-cash
stock-based compensation and income tax expense or benefit. Adjusted EBITDA
provides no information regarding a company's capital structure, borrowings,
interest costs, capital expenditures, working capital movement or tax position.
Adjusted EBITDA does not represent funds available for discretionary use,
because those funds are required for debt service, capital expenditures and
working capital, income taxes, franchise taxes and other commitments and
obligations. However, our management believes Adjusted EBITDA is useful to an
investor in evaluating our operating performance because this measure:
* is widely used by investors in the oil and natural gas industry to measure a
company's operating performance without regard to items excluded from the
calculation of such term, which can vary substantially from company to
company depending upon accounting methods and book value of assets, capital
structure and the method by which assets were acquired, among other factors;
* helps investors to more meaningfully evaluate and compare the results of our
operations from period to period by removing the effect of our capital
structure from our operating structure; and
* is used by our management for various purposes, including as a measure of
operating performance, in presentations to our board of directors, as a
basis for strategic planning and forecasting.
There are significant limitations to the use of Adjusted EBITDA as a measure of
performance, including the inability to analyze the effect of certain recurring
and non-recurring items that materially affect our net income or loss, the lack
of comparability of results of operations to different companies, and the
methods of calculating Adjusted EBITDA and our measurements of Adjusted EBITDA
for financial reporting and compliance under our debt agreements differ.
The following presents a reconciliation of net income to Adjusted EBITDA:
For the three months ended For the years ended
December 31, December 31,
----------------------------- --------------------------
(in thousands) 2012 2011 2012 2011
---------------------- ------------- --------------- ------------- ------------
Net income $ 11,828 $ 1,566 $ 61,654 $ 105,554
Plus:
Interest expense 24,791 15,518 85,572 50,580
Depreciation,
depletion and
amortization 67,504 61,390 243,649 176,366
Impairment of
long-lived assets - - - 243
Write-off of
deferred loan costs - - - 6,195
Loss on disposal
of assets 43 5 52 40
Unrealized losses
(gains) on
derivative
financial
instruments 2,301 23,157 16,522 (20,890 )
Realized loss on
interest rate
derivatives 93 1,141 2,115 4,873
Non-cash stock-
based compensation 2,454 1,024 10,056 6,111
Income tax expense 4,922 795 32,949 59,374
------------- --------------- ------------- ------------
Adjusted EBITDA $ 113,936 $ 104,596 $ 452,569 $ 388,446
------------- --------------- ------------- ------------
Adjusted net income
Adjusted net income is a performance measure used by our management to evaluate
performance, prior to unrealized (gains) losses on derivatives, impairment of
long-lived assets and losses on disposal of assets.
The following presents a reconciliation of net income to adjusted net income:
For the three months ended For the years ended
December 31, December 31,
----------------------------- -------------------------
(in thousands, except
for per share data) 2012 2011 2012 2011
----------------------- ------------ ---------------- ------------ ------------
Net income $ 11,828 $ 1,566 $ 61,654 $ 105,554
Plus:
Unrealized losses
(gains) on derivative
financial instruments 2,301 23,157 16,522 (20,890 )
Impairment of long-
lived asset - - - 243
Loss on disposal of
assets 43 5 52 40
------------ ---------------- ------------ ------------
14,172 24,728 78,228 84,947
Income tax adjustment (680 ) (7,875 ) (5,801 ) 7,419
------------ ---------------- ------------ ------------
Adjusted net income $ 13,492 $ 16,853 $ 72,427 $ 92,366
------------ ---------------- ------------ ------------
Adjusted net income
per common share:
Basic $ 0.11 $ 0.15 $ 0.57 $ 0.86
Diluted $ 0.11 $ 0.15 $ 0.57 $ 0.85
Weighted average
common shares
outstanding:
Basic 127,100 108,987 126,957 107,187
Diluted 128,248 109,899 128,171 108,099
# # #
Contacts:
Rick Buterbaugh: (918) 858-5151 -
RButerbaugh@laredopetro.com
Branden Kennedy: (918) 858-5015 -
BKennedy@laredopetro.com
13-3
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originality of the information contained therein.
Source: Laredo Petroleum, Inc via Thomson Reuters ONE
[HUG#1684585]
