Each one in plain English, with the numbers worked through for a shareholder.
22 Oct 2020debt financing▼ BadMajor
On 2020-10-22 Laredo signed a fifth amendment to its credit facility, keeping the borrowing base at $725 million (the figure set in April) but raising margins and letter-of-credit fees by another 0.500%. It added a weekly repayment requirement when cash exceeds $50 million and lowered the maximum leverage ratio for the main covenant from 4.25 to 4.00 from 2020-12-31, while letting the company buy back up to $50 million of notes under a looser 2.75 ratio test. The filing also gave preliminary third-quarter figures (e.g. $58.2 million of derivative settlements received, 11.7 million weighted-average shares) and mentions a Howard County acreage acquisition, with no further details in the text shown.
Morgan Stanley filed an amended Schedule 13G reporting 204,788 Vital Energy (then Laredo Petroleum) shares, or 1.7%, as of July 31, 2020. It said it had ceased to be the owner of more than 5% of the class.
Vital Energy, then named Laredo Petroleum, filed its quarterly report for the period ended June 30, 2020, covering its second-quarter and first-half results.
Laredo filed an amended first-quarter 2020 report to correct an error in the PV-10 of its reserves used to calculate the full cost ceiling impairment, restating the quarter's results.
Laredo said its first-quarter 2020 financial statements can no longer be relied on. A reserve-value calculation omitted transportation costs, so the asset write-down was understated by about $160 million and net income overstated by the same amount, meaning the net income reported in the 2020-05-06 results was too high. The company also said it had a material weakness in internal controls and will amend the 10-Q; the error was limited to the first-quarter estimate.
Laredo announced it would report second-quarter 2020 results on August 5, 2020, with a call on August 6, and posted an earnings presentation; the filing itself gave no figures.
Laredo gave preliminary second-quarter 2020 figures: $86.9 million of derivative settlements received, $50.6 million of premiums paid for 2021 hedges, and average realized prices of $24.66/Bbl oil, $4.81/Bbl NGL and $0.61/Mcf gas.
At the May 14, 2020 annual meeting, stockholders elected directors, ratified Grant Thornton as auditor and approved a reverse split, but voted against executive pay in the advisory vote. The board then set a 1-for-20 reverse split, expected around June 1, 2020.
Vital Energy (then Laredo Petroleum) filed its quarterly report for the three months ended March 31, 2020, covering its results, debt activity, acquisitions and derivative positions for the quarter.
