Laredo Petroleum, Inc. (LPI) Q3 2022 Results Conference Call November 4, 2022 8:30 AM ET

Company Participants

Ron Hagood - IR

Jason Pigott - President and CEO

Bryan Lemmerman - CFO

Kyle Coldiron - VP of Development & Production

Conference Call Participants

John Annis - Stifel

Karl Blunden - Goldman Sachs

Zach Parham - JPMorgan

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2022 Laredo Petroleum, Inc. Earnings Conference Call.

I would now like to turn the call over to Ron Hagood, Vice President of Investor Relations. Please go ahead.

Ron Hagood

Thank you, and good morning. Joining me today are Jason Pigott, President and Chief Executive Officer; Bryan Lemmerman, Senior Vice President and Chief Financial Officer; as well as additional members of our management team.

During today's call, we will 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. Our actual results may differ from these forward-looking statements for a variety of reasons, many of which are beyond our control.

In addition, we'll be making reference to non-GAAP financial measures. Reconciliations to GAAP financial measures are included in the press release and presentation we issued yesterday, detailing our financial and operating results for third quarter 2022. The press release and presentation can be accessed on our website at www.laredopetro.com.

I will now turn the call over to Jason Pigott, President and Chief Executive Officer.

Jason Pigott

Thanks, Ron, and good morning, everyone. Thanks for joining us today. We appreciate your interest in our company. Financially, the third quarter was another good one for Laredo as we continued to execute our proven plan to add long-term value. We continue to benefit from strong commodity prices and maintain capital discipline to preserve our margins and manage our ongoing inflationary pressures.

There are a few highlights I would like to review. First, we generated $51 million of free cash flow in the third quarter. Second, we used this cash flow and cash on hand to repurchase a combined $170 million of debt and equity, strengthening our balance sheet to a leverage ratio of 1.25x. And finally, capital investments in the quarter were similar to last quarter with a consistent pace, 2 drilling rigs and 1 completions crew. We will maintain similar levels of activity in the fourth quarter and plan to invest $135 million to $145 million.