Laredo Petroleum, Inc. (LPI) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET

Company Participants

Jason Pigott – President and Chief Executive Officer

Ronald Hagood – Vice President, Investor Relations

Karen Chandler – Senior Vice President and Chief Operations Officer

Bryan Lemmerman – Senior Vice President and Chief Financial Officer

David Ferris – Vice President and Chief Sustainability Officer

Conference Call Participants

Derrick Whitfield – Stifel

John Daniel – Daniel Energy Partner

Jordan Stuart – GoldenTree

Joseph Mackay – Wells Fargo

Nicholas Pope – Seaport Research

Operator

Good day, ladies and gentlemen, and welcome to the Laredo Petroleum Incorporated, First Quarter 2022, Earnings Conference Call. My name is Amanda and I will be your operator for today. At this time, all participants are in a listen-only mode. We will be conducting a 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. Ronald Hagood, Vice President, Investor Relations. You may proceed, sir.

Ronald Hagood

Thank you and good morning. Joining me today are Jason Pigott, President and Chief Executive Officer. Karen Chandler, Senior Vice President and Chief Operations Officer. And 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, forecast, 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 will be making reference to non-GAAP financial measures, reconciliations to GAAP financial measures are included in the press release and presentation we issued yesterday that detail our financial and operating results for first quarter 2022. The press release and presentation can be accessed on our website at www.laredopetro.com. I will turn the call over to Jason Pigott, President and Chief Executive Officer.

Jason Pigott

Thank you, Ron. Good morning. And thank you for joining us today for a discussion of our first quarter results. We performed extremely well in the first quarter, continuing the momentum we generated in 2021. First, total oil and total production and capital were in line with guidance as our teams continue to execute our investments in Howard and Western Glasscock Counties. Second, we generated free cash flow of $23 million and consolidated EBITDA tax of $222 million. Third, we reduced leverage from 2.1 times debt-to-EBITDA at the end of the year, to 1.9 times at the end of the first quarter. We also continue to move forward on our initiative to achieve responsibly sourced gas and oil designation for a portion of our production, which was awarded in April.