LPI is one of the poorest performing U.S.-based petroleum companies for 2018.
The 2 major reasons for this underperformance are: 1) Their favorable off-take agreement with RDS was terminated 2) Midland WTI plunged as a result of supply bottlenecks in the Permian
Recently, the differential between Permian Basin and U.S. benchmark oil has been shrinking.
H-2/19, new pipelines will begin to relieve the bottleneck
LPI profits have already begun to improve. Earnings growth doubled H1/18 YOY.