Laredo Petroleum, Inc. (LPI)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Laredo Petroleum, Inc. (LPI) trades at $48.09 with AI Score 53/100 (Grade B). Laredo Petroleum, Inc. is an independent energy company focused on the acquisition, exploration, and development of oil and natural gas properties. Sector: Energy.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for LPI: LPI does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates LPI against Energy peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
LPI: 4/7 perspectives are bullish. Dominant signal: Jim Simons bearish.
How is this calculated? →Laredo Petroleum, Inc. (LPI) Energy Operations & Outlook
Laredo Petroleum, Inc. focuses on oil and natural gas exploration and production within the Permian Basin. With 166,064 net acres, the company extracts and sells oil, natural gas liquids, and natural gas. Laredo Petroleum navigates the competitive energy landscape while managing its proved undeveloped reserves.
What Is the Investment Thesis for LPI?
Laredo Petroleum, Inc. presents a complex investment case within the energy sector. The company's focus on the Permian Basin provides exposure to a key oil and gas producing region. However, its negative profit margin of -69.3% raises concerns about operational efficiency and profitability. The company's strategy to maximize production from its 166,064 net acres in the Permian Basin could drive revenue growth, but this is contingent on favorable commodity prices. The absence of a dividend may deter income-focused investors. Key catalysts include potential increases in oil and gas prices and successful development of its proved undeveloped reserves of 86,592 thousand barrels of oil equivalent. Potential risks include commodity price volatility, operational challenges, and environmental regulations. Investors should closely monitor the company's ability to improve profitability and manage its debt levels.
Based on FMP financials and quantitative analysis
LPI Key Highlights
- Laredo Petroleum focuses on the Permian Basin, holding 166,064 net acres as of December 31, 2021.
- The company's total proved undeveloped reserves were 86,592 thousand barrels of oil equivalent as of December 31, 2021.
- Laredo Petroleum operates with 273 employees.
- The company's gross margin is 44.2%.
- Laredo Petroleum does not offer a dividend.
Who Are LPI's Competitors?
LPI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CEQP Crestwood Equity Partners LP | $28.26 | +4.36% | $2.97B | 48 |
| NESR National Energy Services Reunited Corp. | $27.92 | +0.06% | $2.82B | 75 |
| NPKI NPK International Inc. | $14.19 | -0.84% | $1.20B | 82 |
| OSG Octave Specialty Group, Inc. | $6.37 | +0.47% | $286.74M | — |
| ROCC Ranger Oil Corporation | $37.47 | -1.96% | $712.26M | 59 |
| EXE Expand Energy Corporation | $89.09 | -1.80% | $21.31B | 72 |
| ATUUF Tenaz Energy Corp. | $31.44 | -2.60% | $1.03B | 68 |
| VIST Vista Energy, S.A.B. de C.V. | $61.57 | +2.00% | $6.42B | 68 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are LPI's Key Strengths?
- Significant acreage in the Permian Basin.
- Proved undeveloped reserves provide future production potential.
- Experienced management team.
- Established infrastructure for production and transportation.
What Are LPI's Weaknesses?
- Negative profit margin.
- Exposure to commodity price volatility.
- High debt levels.
- Dependence on a single geographic region (Permian Basin).
What Could Drive LPI Stock Higher?
- Potential increase in oil and natural gas prices could improve profitability.
- Successful development of proved undeveloped reserves could increase production and revenue.
- Cost reduction initiatives could improve profit margins.
- Strategic acquisitions could expand the company's asset base.
What Are the Key Risks for LPI?
- Negative return on equity (-56.9%) — the business is not currently generating profit on shareholder capital.
- Commodity price volatility could negatively impact revenue and profitability.
- Increased environmental regulations could increase operating costs.
- Operational challenges in the Permian Basin could disrupt production.
- High debt levels could limit financial flexibility.
- Competition from other producers could erode market share.
What Are the Growth Opportunities for LPI?
- Increased Production Efficiency: Laredo Petroleum can enhance its profitability by improving operational efficiency in its Permian Basin assets. Implementing advanced drilling and completion techniques can lead to higher production rates and lower costs per barrel of oil equivalent. This involves optimizing well spacing, utilizing enhanced oil recovery methods, and leveraging data analytics to improve reservoir management. Successfully increasing production efficiency can directly improve the company's bottom line and strengthen its competitive position within the Permian Basin.
- Strategic Acquisitions: Laredo Petroleum can expand its asset base and production capacity through strategic acquisitions of complementary properties in the Permian Basin. Acquiring additional acreage or producing assets can increase the company's scale and diversify its production mix. Identifying undervalued assets and integrating them effectively into its existing operations can create synergies and enhance overall value. This strategy requires careful due diligence and financial discipline to ensure that acquisitions are accretive to earnings and contribute to long-term growth.
- Commodity Price Hedging: Laredo Petroleum can mitigate the impact of commodity price volatility by implementing a robust hedging program. Hedging involves using financial instruments, such as futures contracts and options, to lock in prices for future production. This provides greater revenue certainty and protects the company's cash flow from unexpected price declines. A well-designed hedging strategy can also provide a competitive advantage by allowing the company to invest in growth projects with greater confidence.
- Infrastructure Development: Investing in infrastructure development within the Permian Basin can alleviate bottlenecks and improve access to markets for Laredo Petroleum's production. This includes building or expanding pipelines, storage facilities, and processing plants. Improved infrastructure can reduce transportation costs, increase production capacity, and enhance the company's ability to capitalize on favorable market conditions. Collaborating with other producers and midstream companies on infrastructure projects can also spread the costs and risks associated with these investments.
- ESG Initiatives: Laredo Petroleum can enhance its long-term sustainability and attract environmentally conscious investors by implementing robust Environmental, Social, and Governance (ESG) initiatives. This includes reducing greenhouse gas emissions, minimizing water usage, and promoting responsible waste management practices. Transparent reporting on ESG performance and engagement with stakeholders can improve the company's reputation and access to capital. Embracing sustainable practices can also lead to cost savings and operational efficiencies, further enhancing the company's financial performance.
What Opportunities Does LPI Have?
- Increased oil and gas prices.
- Technological advancements in extraction techniques.
- Strategic acquisitions of complementary assets.
- Expansion into new markets.
What Threats Does LPI Face?
- Commodity price declines.
- Increased environmental regulations.
- Competition from other producers.
- Geopolitical risks.
What Are LPI's Competitive Advantages?
- Strategic land position in the Permian Basin.
- Expertise in unconventional oil and gas extraction techniques.
- Established infrastructure for transporting and processing production.
What Does LPI Do?
Laredo Petroleum, Inc. is an independent energy company specializing in the exploration, development, and production of oil and natural gas. Incorporated in 2006 and headquartered in Tulsa, Oklahoma, the company has strategically focused its operations within the Permian Basin of West Texas. Laredo Petroleum was initially known as Laredo Petroleum Holdings, Inc., before rebranding in December 2013 to reflect its core business activities more directly. The company's primary activities include acquiring and developing oil and natural gas properties, extracting resources, and selling these commodities. As of December 31, 2021, Laredo Petroleum had assembled a significant land position of 166,064 net acres in the Permian Basin, underlining its commitment to this prolific hydrocarbon region. The company's asset base includes total proved undeveloped reserves of 86,592 thousand barrels of oil equivalent, representing a substantial inventory for future production. Laredo Petroleum's revenue streams are derived from the sale of oil, natural gas liquids, and natural gas, making it susceptible to commodity price volatility and market dynamics within the energy sector. The company manages its operations with a workforce of 273 employees.
What Products and Services Does LPI Offer?
- Acquires oil and natural gas properties in the Permian Basin of West Texas.
- Explores for oil and natural gas reserves.
- Develops oil and natural gas properties to maximize production.
- Extracts oil, natural gas liquids, and natural gas from its properties.
- Sells the extracted oil, natural gas liquids, and natural gas to various customers.
- Manages its proved undeveloped reserves to optimize future production.
How Does LPI Make Money?
- Acquires and develops oil and gas properties.
- Extracts and processes oil, natural gas liquids, and natural gas.
- Generates revenue through the sale of these commodities.
What Industry Does LPI Operate In?
Laredo Petroleum operates within the highly competitive oil and gas exploration and production industry. The industry is characterized by fluctuating commodity prices, technological advancements in extraction techniques, and increasing environmental scrutiny. Companies like Laredo Petroleum face pressure to optimize production costs, manage environmental impact, and adapt to evolving energy policies. The Permian Basin, where Laredo Petroleum focuses its operations, is a key production area, but faces infrastructure constraints and competition from other producers. The industry is also seeing a shift towards sustainable energy practices, which could impact long-term demand for fossil fuels.
Who Are LPI's Key Customers?
- Refineries that process crude oil.
- Natural gas distributors that supply gas to residential and commercial customers.
- Petrochemical companies that use natural gas liquids as feedstock.
ROE -57%Key Financial Metrics
Return on equity for Laredo Petroleum, Inc. stands at -56.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -27.9%, showing how much profit it generates from its asset base. Its free cash flow yield is 17.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.78 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -194.0%, the inverse of the P/E and a quick read on earnings relative to price.
Laredo Petroleum, Inc. (LPI) Valuation Context
Relative to its peer group, LPI's quantitative score of 53/100 is below the peer average of 66/100.
Company Profile
Laredo Petroleum, Inc. operates in the Oil & Gas Exploration & Production industry within the Energy sector. It is headquartered in Tulsa, US. The company is led by CEO Mikell Jason Pigott. LPI has traded publicly since 2011.
LPI Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2024
Bull Case vs Bear Case
Bull Case
- Laredo's recent insider buying suggests those in the know see value, a classic 'follow the leader' signal.
- The community's bullish sentiment seems to be driven by anticipation of increased energy demand, mirroring the optimism we saw with oil stocks in early 2022.
- Positive market perception around Laredo's strategic acquisitions could lead to expanded operations and revenue streams.
- Laredo's operational efficiency gains, as discussed in recent community forums, might translate to stronger profitability.
Bear Case
- Some community members are concerned about Laredo's debt levels, similar to worries surrounding energy companies during the 2008 crisis.
- Recent bearish sentiment highlights fears of fluctuating oil prices impacting Laredo's revenue, a recurring theme in the energy sector.
- Insider selling, even if minor, raises questions about long-term confidence, echoing concerns seen with some tech stocks post-pandemic boom.
- There's a perception that Laredo might struggle to compete with larger players in the Permian Basin, a David vs. Goliath scenario.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
LPI Latest News
No recent news available for LPI.
LPI Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for LPI.
Price Targets
Wall Street price target analysis for LPI.
LPI MoonshotScore
What does this score mean?
The MoonshotScore rates LPI's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Mikell Jason Pigott
CEO
Mikell Jason Pigott serves as the CEO of Laredo Petroleum, Inc. His career reflects a deep understanding of the oil and gas industry, with experience in various leadership roles. Pigott's background includes expertise in operations, engineering, and business development. His leadership is focused on driving operational efficiency, maximizing shareholder value, and ensuring sustainable growth for Laredo Petroleum. He manages a workforce of 273 employees.
Track Record: Under Mikell Jason Pigott's leadership, Laredo Petroleum has focused on optimizing its Permian Basin assets and improving its financial performance. Key milestones include strategic acquisitions, cost reduction initiatives, and efforts to enhance production efficiency. Pigott has also emphasized responsible environmental stewardship and engagement with stakeholders. His strategic decisions aim to position Laredo Petroleum for long-term success in the dynamic energy market.
Laredo Petroleum, Inc. Energy Stock: Key Questions Answered
What does Laredo Petroleum, Inc. do?
Laredo Petroleum, Inc. operates as an independent energy company engaged in the acquisition, exploration, and development of oil and natural gas properties. The company's primary focus is within the Permian Basin of West Texas, where it holds significant acreage. Laredo Petroleum extracts and sells oil, natural gas liquids, and natural gas, deriving its revenue from these commodity sales. The company manages its proved undeveloped reserves to optimize future production and navigate the competitive energy landscape.
What do analysts say about LPI stock?
Analyst coverage of Laredo Petroleum, Inc. typically focuses on the company's production levels, cost structure, and commodity price exposure. Key valuation metrics include price-to-earnings ratio, enterprise value-to-EBITDA, and discounted cash flow analysis. Analysts consider the company's growth potential based on its Permian Basin assets and its ability to improve operational efficiency. Consensus estimates reflect expectations for future earnings and cash flow, but these are subject to change based on market conditions and company performance. Analyst ratings and price targets should be viewed as opinions and not as guarantees of future stock performance.
What are the main risks for LPI?
Laredo Petroleum, Inc. faces several key risks inherent to the oil and gas industry. Commodity price volatility poses a significant threat to revenue and profitability, as fluctuations in oil and natural gas prices can directly impact the company's financial performance. Increased environmental regulations could increase operating costs and limit the company's ability to develop its assets. Operational challenges in the Permian Basin, such as pipeline constraints and water scarcity, could disrupt production. The company's high debt levels also create financial risk, limiting its flexibility to invest in growth opportunities or weather periods of low commodity prices. Competition from other producers in the Permian Basin could erode market share and put pressure on margins.
What are the key factors to evaluate for LPI?
Laredo Petroleum, Inc. (LPI) holds an AI score of 53/100 (moderate). Not financial advice.
How frequently does LPI data refresh on this page?
LPI prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven LPI's recent stock price performance?
Laredo Petroleum, Inc. (LPI) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Significant acreage in the Permian Basin. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider LPI overvalued or undervalued right now?
Valuing Laredo Petroleum, Inc. (LPI) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying LPI?
Before investing in Laredo Petroleum, Inc. (LPI), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on information available as of December 31, 2021.
- AI analysis is pending and may provide additional insights.