Analyst Note| Dave Meats, CFA |
Laredo delivered production of 83 mboe/d in the fourth quarter, which was 6% lower sequentially and 2% lower year over year. This was above the previously guided range of 78-80 mboe/d. In 2021, Laredo plans to keep slightly improving oil production at the expense of lower total production, as a result of drilling in acreage with a higher oil take. Management estimates freezing temperatures in mid-February will reduce oil production for the first quarter by around 3,000 bpd, which translates to 10%-20% lower oil volumes than anticipated pre-storm.