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Low ratings is truly an apple -- -- was missing estimates by a penny of reporting the company's first quarter net income significantly declined them while the stock is in the red today.
CEO Randy felt is encouraged by the impact of the -- cost cutting efforts the last year.
He joins us now Randi thank you so much just a quick somebody should be -- those.
First quarter earnings -- missing earnings by a penny down on net income what was the reason for that.
Well good afternoon sir and thank you for having this you know our financials were right in line and our guidance.
We missed by a fraction of a penny on the earnings per share.
The net income was them because of the non cash impact of some -- -- hedging processes.
But the important thing on our earnings call what we think was that we were well then guys.
But our overall well performance.
Our overall capital efficiency.
Are all headed in the right direction.
You're operating one of the largest oil basins in the world but is it getting more expensive these days to actually extract the oil Randy.
Well the Permian Basin is may turn out to be as large as the -- -- the bock and her or.
Any of the discoveries that have been made with the resource play in the long retort -- Wells that we can now track.
It's it's becoming.
-- capital intensive game it always has the average cost of -- going up but the efficiency.
And the dollar prepare -- our our to have turned the corner and headed in the right direction.
So crude oil production represents -- roughly 46% of the company's total production what about natural gas.
On a revenue base is natural gas and address liquids or somewhere around 30%.
Of our total revenues and decreasing as we drill more in the Permian.
So natural gas prices sticking with the gas story that ran up to walk for forty.
BTUs -- which is.
A whole lot better -- and when they were really depressed.
So what's driving the increase in price.
Well I think the increase was a function of a pretty cold spring and -- I think the long term we we need to realize that we have a huge supply of natural gas.
And while there's going to be ups and downs it is a volatile commodity I think it's going to be much more range bound that it has been historically.
We can head supply quickly at a higher prize.
What is the regulatory environment like that right now for you Randy operating this in this industry.
One of the reasons we like the Anadarko basin in the Permian -- -- we've been regulated for 275.
The states have done a good job with -- regulation.
We know what the rules are we know what we need to do.
It's worked out very well for both the the environment the public the state and healing gas companies in those areas.
Well we wish you the very best thank you so much for coming on and talking to us Randy felt -- Laredo petroleum oil chairman and CEO.
We appreciate -- time.
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