NEW YORK (TheStreet) -- Shares of Laredo Petroleum Inc. (LPI - Get Report) are higher by 5.79% to $11.87 in late morning trading on Tuesday, as some stocks within the oil and energy sectors get a jolt today due to the rally in the price of oil.
Brent crude is gaining by 3.54% to $61.65 per barrel and WTI crude is up by 1.81% to $50.49 per barrel this morning, according to the CNBC.com index.
Concerns regarding fighting in Libya and signals that global demand could be growing stronger are helping to drive oil prices into the green today.
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Rival forces in Libya have been carrying out airstrikes on oil terminals and on an airport arousing fears regarding supplies out of the OPEC member, Reuters reports, adding that oilfields and ports have been increasingly targeted by the two rival governments fighting in the country.
Looking to U.S. inventories, data for U.S. stockpiles for the week of February 27 is due out on Wednesday.
Crude supplies in Cushing, OK, the delivery point for the NYMEX contract, rose by a smaller amount than was expected for the same week.
"The pace of Cushing builds may start to ease in the coming weeks, making it less likely the storage center will reach its maximum capacity, Energy Aspects said in an analyst note, the Wall Street Journal noted.
Other oil related stocks rising today include Pioneer Natural Resources (PXD - Get Report), higher by 3.08% to $159.52, Oasis Petroleum Inc. (OAS - Get Report), up by 3.99% to $14.09 and Denbury Resources Inc. (DNR - Get Report) advancing by 2.77% to $8.53 this morning.
Separately, 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, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 18.7%. Since the same quarter one year prior, revenues rose by 17.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 565.0% when compared to the same quarter one year prior, rising from $12.54 million to $83.41 million.
- The gross profit margin for LAREDO PETROLEUM INC is currently very high, coming in at 80.22%. Regardless of LPI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LPI's net profit margin of 41.65% significantly outperformed against the industry.
- LPI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 55.31%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, LPI is still more expensive than most of the other companies in its industry.
- The debt-to-equity ratio of 1.16 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, LPI has a quick ratio of 0.50, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full analysis from the report here: LPI Ratings Report