Not every company producing oil and natural gas products in the oil mecca of Oklahoma is going to be a huge conglomerate trying to compete at the highest level. For a company like Laredo Petroleum, being the new kid on the block has brought plenty of challenges, but the company has seemingly done a good job of positioning itself for future growth.
Laredo Petroleum is a publicly owned oil and natural gas concern that sits on the New York Stock Exchange under the symbol LPI. With a 41% stake, Warburg Pincus stands as the single-largest shareholder. The company was founded in 2006 by Randy Foutch, the man who currently operates the company as both the chairman and chief executive officer.
Under Foutch’s guidance that company was able to position itself with a significant presence in the robust Permian Basin. This was achieved largely through a $1.0 billion acquisition of Broad Oak Energy, which took place in 2011. The company currently owns or controls interest of 135,408 net acres in the area, resulting in a product distribution of reserves at 42% oil and 58% natural gas. That translates to 125 million barrels of oil equivalent (760,000,000 GJ) in proven reserves as reported at the end of 2015. From over 1,100 producing wells, the company was producing over 44,000 barrels a day of oil equivalent.
Laredo Petroleum employs approximately 340 employees, operating out of the company’s headquarters located in Tulsa, Oklahoma. Other top key officials include Jay Still, President & COO and Richard Buterbaugh, Executive VP & CFO. For the fiscal year ended December 31, 2015, the company had operating revenues of $606 million. That translated into an operating loss of $2.4 billion and a net loss of $2.2 billion. The state of oil prices were to blame for the bad numbers. The company also had net assets of $1.8 billion and shareholders equity of $131 million.