Discounted Cash Flow (DCF) Analysis Levered
Laredo Petroleum, Inc. (LPI)
$48.09
+0.54 (+1.14%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 822.16 | 1,105.78 | 837.28 | 677.19 | 1,394.08 | 1,731.98 | 2,151.80 | 2,673.37 | 3,321.37 | 4,126.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 384.91 | 537.80 | 475.07 | 383.39 | 496.67 | 846.72 | 1,051.95 | 1,306.93 | 1,623.72 | 2,017.30 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -566.91 | -705.21 | -668.61 | -390.57 | -1,190.55 | -1,232 | -1,530.62 | -1,901.63 | -2,362.57 | -2,935.23 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -182 | -167.41 | -193.54 | -7.19 | -693.88 | -385.28 | -478.67 | -594.70 | -738.85 | -917.94 |
Weighted Average Cost Of Capital
| Share price | $ 48.09 |
|---|---|
| Beta | 3.398 |
| Diluted Shares Outstanding | 15.99 |
| Cost of Debt | |
| Tax Rate | 2.45 |
| After-tax Cost of Debt | 7.38% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 19.680 |
| Total Debt | 1,439.33 |
| Total Equity | 769.10 |
| Total Capital | 2,208.43 |
| Debt Weighting | 65.17 |
| Equity Weighting | 34.83 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 822.16 | 1,105.78 | 837.28 | 677.19 | 1,394.08 | 1,731.98 | 2,151.80 | 2,673.37 | 3,321.37 | 4,126.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 384.91 | 537.80 | 475.07 | 383.39 | 496.67 | 846.72 | 1,051.95 | 1,306.93 | 1,623.72 | 2,017.30 |
| Capital Expenditure | -566.91 | -705.21 | -668.61 | -390.57 | -1,190.55 | -1,232 | -1,530.62 | -1,901.63 | -2,362.57 | -2,935.23 |
| Free Cash Flow | -182 | -167.41 | -193.54 | -7.19 | -693.88 | -385.28 | -478.67 | -594.70 | -738.85 | -917.94 |
| WACC | ||||||||||
| PV LFCF | -345.02 | -383.85 | -427.06 | -475.13 | -528.60 | |||||
| SUM PV LFCF | -2,159.66 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 11.67 |
| Free cash flow (t + 1) | -936.29 |
| Terminal Value | -9,682.46 |
| Present Value of Terminal Value | -5,575.75 |
Intrinsic Value
| Enterprise Value | -7,735.41 |
|---|---|
| Net Debt | 1,382.53 |
| Equity Value | -9,117.94 |
| Shares Outstanding | 15.99 |
| Equity Value Per Share | -570.12 |