Laredo Petroleum, Inc. (LPI) saw its loss narrow to $18.42 million, or $0.08 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $964.65 million, or $4.57 a share. On the other hand, adjusted net income for the quarter stood at $38.78 million, or $0.16 a share compared with $12.13 million or $0.06 a share, a year ago.
Revenue during the quarter surged 49.51 percent to $184.31 million from $123.28 million in the previous year period. Gross margin for the quarter expanded 1602 basis points over the previous year period to 63.31 percent.
Operating income for the quarter was $45.46 million, compared with an operating loss of $1,015.68 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $134.92 million compared with $117.95 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2248 basis points in the quarter to 73.20 percent from 95.68 percent in the last year period.
"From the moment that Laredo leased its first acre in the Midland Basin, the Company's primary strategy has been maximizing Laredo's total value through efficient resource development," stated Randy A. Foutch, chairman and chief executive officer. "Building a contiguous acreage position, gathering data for the proprietary Earth Model, investing in field infrastructure, developing production corridors and forming a partnership to build the Medallion-Midland Basin system are all part of that goal. In 2016, our strategy provided a substantive, repeatable benefit to the Company."
Operating cash flow improves
Laredo Petroleum, Inc. has generated cash of $356.30 million from operating activities during the year, up 12.77 percent or $40.35 million, when compared with the last year.
The company has spent $564.40 million cash to meet investing activities during the year as against cash outgo of $667.51 million in the last year. It has incurred net capital expenditure of $367.89 million on net basis during the year, down 30.87 percent or $164.30 million from year ago.
Cash flow from financing activities was $209.62 million for the year, down 40.68 percent or $143.77 million, when compared with the last year.
Cash and cash equivalents stood at $32.67 million as on Dec. 31, 2016, up 4.87 percent or $1.52 million from $31.15 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Laredo Petroleum, Inc. has turned negative to $33.17 million on Dec. 31, 2016 from positive $115.42 million on Dec. 31, 2015. Current ratio was at 0.82 as on Dec. 31, 2016, down from 1.53 on Dec. 31, 2015.
Debt comes down marginally
Laredo Petroleum, Inc. has recorded a decline in total debt over the last one year. It stood at $1,353.91 million as on Dec. 31, 2016, down 4.40 percent or $62.32 million from $1,416.23 million on Dec. 31, 2015. Total debt was 75.96 percent of total assets as on Dec. 31, 2016, compared with 78.10 percent on Dec. 31, 2015. Debt to equity ratio was at 7.50 as on Dec. 31, 2016, down from 10.77 as on Dec. 31, 2015.
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