The Tulsa, OK-based energy company expects full year 2015 production growth of greater than 12%, but this compares to 11.7 million barrels of oil equivalent MMBOE in 2014, up approximately 29% from 2013.
"As we enter 2015 in a challenging commodity price environment, our philosophy of hedging a meaningful amount of expected production and insisting on short-term service contracts has protected cash flow and enabled us to quickly and efficiently adjust our plans for the year. By the second half of 2015, we expect that our cash flows should be sufficient to fund capital expenditures," CEO Randy Foutch said.
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The company reported fourth quarter adjusted earnings of 15 cents on revenue of $237.29 million which beat the average of analysts' estimates that had expected adjusted earnings of 14 cents on $200.3 million in revenue, according to Reuters.
Adding pressure to the stock, oil prices declined today.
Both benchmarks fell, with West Texas Intermediate down 4.04% to $48.93 at 4:07 p.m. in New York. Brent was lower by 1.91% to $61.16.
Crude oil futures fell on Thursday, as rising inventories in the U.S. pressured the industry.
U.S. crude stocks rose 8.4 million barrels last week to a record 434.07 million, the Energy Information Administration said yesterday.
Industry experts said that the dollar's rise today against the euro also pushed oil prices lower. The WSJ Dollar Index rose 0.86%.
"A rebound in the dollar against the euro added to the bearish trade for dollar-denominated crude," Global Hunter Securities macro strategist Richard Hastings told Marketwatch.
Separately, the average recommendation of 20 brokers' estimates on the stock is 2.4, with a 2 representing an "outperform" rating and 3 a "hold," according to Reuters. The mean price target is $12.19.
TheStreet Ratings team rates LAREDO PETROLEUM INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAREDO PETROLEUM INC (LPI) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself."
You can view the full analysis from the report here: LPI Ratings Report