Q3 2012 Earnings Call Transcript

Transcript Call Date 11/09/2012

Operator: Good day ladies and gentlemen and welcome to the Third Quarter 2012 Laredo Petroleum Holdings, Inc. earnings conference call. My name is Carissa and I'll be your operator for today. At this time, all participants are in listen-only mode. We will be conducting and question-and-answer session after the financial and operations report. As a reminder, this conference is being recorded for replay purposes.

It is now my pleasure to introduce Mr. Rick Buterbaugh, Senior Vice President of Investor Relations, you may proceed, sir.

Richard C. Buterbaugh - SVP, IR: Thank you Carissa and good morning. With me today are Randy Foutch, Chairman and Chief Executive Officer; Jerry Schuyler, President and Chief Operating Officer; Mark Womble, Senior Vice President and Chief Financial Officer; and Dan Schooley, Vice President of Marketing as well as additional members of our management team.

Before we begin this morning, let me remind you that during today's call we'll be making forward-looking statements. These statements including those describing our beliefs, goals, expectations, forecasts, and assumptions are intended to be covered by the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results may differ from these forward-looking statements for a variety of reasons, many of which are beyond our control. Additional information concerning certain risks and uncertainties relating to our business, prospects and results, are available in the Company's filings with the SEC.

In addition, we will be making reference to adjusted net income and adjusted EBITDA which are non-GAAP financial measures. Reconciliations of GAAP net income to these non-GAAP financial measures are included in this morning's release.

Also as a reminder, Laredo reports operating and financial results on a two-stream production basis, that includes the volumes and values of natural gas liquids in our gas stream, not as part of oil and condensate nor is it included in a combined liquids total. Although two-stream reporting does understate our production volumes by approximately 20% relative to companies that report on three-stream basis. We believe this accurately portrays our ownership of the products. As a result, Laredo's unit cost metrics will appear higher when compared to companies that report on a three-stream basis. However, the true economic value is the same.

Earlier this morning the Company issued its third quarter 2012 earnings release which resulted in adjusted net income of $12.6 million or $0.10 per diluted share. Included in this release is the Company's updated guidance for the fourth quarter of 2012. If you do not have a copy of this news release, you may access it on the Company's website at

I'll now turn the call over to Randy Foutch to begin our discussion of the quarter.

Randy A. Foutch - Chairman and CEO: Thanks, Rick, and good morning, everyone. I think it's appropriate before I begin our discussion to express on behalf of the entire Laredo team our deepest sympathies to those in the Northeast affected by the recent storms and although still dealing with the aftermath.

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