Revenue during the quarter grew 6.25 percent to $159.73 million from $150.34 million in the previous year period. Gross margin for the quarter expanded 795 basis points over the previous year period to 59.29 percent.

Operating income for the quarter was $25.49 million, compared with an operating loss of $927.86 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $118.01 million compared with $121.63 million in the prior year period. At the same time, adjusted EBITDA margin contracted 703 basis points in the quarter to 73.88 percent from 80.90 percent in the last year period.

"Third quarter results again demonstrated the benefits of the Company's prior strategic investments in data and infrastructure," commented Randy A. Foutch, chairman and chief executive officer. "Laredo's multivariate Earth Model analysis of data collected throughout eight years of development activity has enabled the identification of multiple landing points per zone and optimized completions driving recent results, on average, more than 30% above type curve in the Upper and Middle Wolfcamp and Cline shale zones. Field infrastructure investments have helped lower unit LOE almost 50% since the beginning of 2015. To take advantage of these tremendous capital efficiency improvements and accelerate value creation, Laredo is adding a fourth horizontal rig beginning in mid November. We anticipate the additional cash flows will be protected by Laredo's outstanding hedge position and the increased activity is being accomplished without increasing the Company's capital budget."

The company has spent $455.90 million cash to meet investing activities during the nine month period as against cash outgo of $531.88 million in the last year period. It has incurred net capital expenditure of $277.35 million on net basis during the nine month period, down 36.04 percent or $156.28 million from year ago period.

Cash flow from financing activities was $209.65 million for the nine month period, down 40.69 percent or $143.81 million, when compared with the last year period.

Cash and cash equivalents stood at $30.36 million as on Sep. 30, 2016, down 60.26 percent or $46.04 million from $76.40 million on Sep. 30, 2015.

Working capital drops significantly
Laredo Petroleum, Inc. has witnessed a decline in the working capital over the last year. It stood at $30.14 million as at Sep. 30, 2016, down 64.07 percent or $53.75 million from $83.89 million on Sep. 30, 2015. Current ratio was at 1.19 as on Sep. 30, 2016, down from 1.29 on Sep. 30, 2015.

Days sales outstanding went down to 32 days for the quarter compared with 65 days for the same period last year.

Debt comes down marginally
Laredo Petroleum, Inc. has recorded a decline in total debt over the last one year. It stood at $1,353.23 million as on Sep. 30, 2016, down 4.40 percent or $62.33 million from $1,415.57 million on Sep. 30, 2015. Laredo Petroleum has recorded a decline in long-term debt over the last one year. It stood at $1,353.23 million as on Sep. 30, 2016, down 4.40 percent or $62.33 million from $1,415.57 million on Sep. 30, 2015. Total debt was 77.04 percent of total assets as on Sep. 30, 2016, compared with 49.98 percent on Sep. 30, 2015. Debt to equity ratio was at 7.23 as on Sep. 30, 2016, up from 1.30 as on Sep. 30, 2015.