want saying improving fortunate the to the outlined. achieving of strength. I the Good balance our sheet to to to be by Jason has plans and assist in start goals team supporting I feel forward financial opportunity plan given and morning. Laredo's Laredo I look
report reserve as noncash material has XX-Q around a impairment, in running weakness business. quarter, the had QX. approximately or on earnings we understating $XXX material corrected in operations, filed has do for covenants to reserves costs error yesterday million. test related in charge to impairment and controls. our or included the file in the we the not As financial a in SEC of the weakness an calculation ratio no impairment first the timeline. impairment is in impact in as on This XX-Q/A depletion we well expect you ceiling our of use the for the saw we by charge the centered and the been our quarter as and business our normal The release This This led weakness the the calculation XX-Q/A, second
We our group for arising have from restatement. also from the this received technical bank default a waiver
and big-picture quarter 'XX our 'XX well touch second will some a in as around items into levels balance dive I specific on Now and then the items as sheet. few activity to
mentioned the company's operational outstanding. overall Jason quarter was and during performance his the As remarks, in financial
of on of LOE our both long-term We unit XX. below trend and peers, illustrated Slides driving that G&A and as continue our XX expenses
equation, year-over-year we decrease On the side of the Laredo and decrease by be system, leader, of drive LOE low-cost to as cost a quarter-over-quarter. XX% the continue to the noted continues out and XX%
for begin currently and those wells those on our established than and we in lined of ESPs we versus LOE to artificial Howard expect per we These oilier utilize base, we use As are wells wells gas lifts $X acreage will established County, the complete lift substantially the for BOE. acreage. turn to would in approximately be our
existing LOE G&A, respect Our per and infrastructure company from the will we and are to our the below production to 'XX monitor $X on manage year. benefit unit a for average assets, remain for continue environment we BOE expect the continues costs blended in With to our to in. basis
the year full the for full reduce XX% Capital and taken annual the XXXX. second million, approximately a force $X.X reductions, management expenses versus board by salary discussed expected we were in As a are directors million. going June, have had year our personnel in expected XXXX in $XX previously, quarter costs savings to versus reduction charge of resulting million. and in incurred forward of The $XX
For additional target the related first for during in CapEx a the on half our and capital of invoicing are year the for period activity. of spend QX timing year, estimates of and full the we to activity expectations. The rapid decreasing and
Karen With back we and discussed, put County activity in stabilized growing with expect half work of are comfortable in slowly this year. the later crews Jason capital of second half As the to to year year, completion we Howard our guidance. the and
Spending even we these help would as QX the thoughtful back low-price in impacts operations point like strip maintain so, sheet to are a wells to in months plan flow. our production put returns couple the level be environment our the the will the to crews when dollars a the work, us We competitive extremely 'XX, the prices, balance completion DUCS. timing and We wells executing considerably stabilizing and our reasonable we are of were of going half-cycle also at we will in over more completing on out cash into ago. balancing
updated more Turning balance to how the give intend data we 'XX we capital expenditures flows cash XX, to Slide and plan. some on in
During taking day Brent of in per us additional the oil added 'XX, oil of barrels a production XX% the hedged of hedges we X,XXX oil approximately at second floor anticipated to quarter, $XX. of an
unhedged the position. position see oil impact chart, can decrease an on substantially bottom price you versus our As an of the mitigates hedge
process and consistent of the a served settlements This exposes in well, support returns the puts since into more of including XXXX, unhedged enter our flows quarter. beginning generating $XXX Additionally, prices. in XX% than and possible. hedges production increasing We company cumulative methodical to hedging oil of strategy. second pursue We million as as $XX has the lock the expected much cash combination to million of
positioned Turning to next the Slide XX, for few years. well we are
term no on we ratios. debt and substantial We liquidity position great are revolver have maturities by debt our 'XX, in a provided until our
reduce to expect the free second of we in half with net Additionally, the borrowings cash flow year.
debt, our other that companies relative it the many obvious quite is to including little have equity hand, too space On Laredo. in
steps with the bolt-on We balance to our and all through are sense, entities. our acreage or benefit increasing plan to while and committed others We to to bringing constructive consolidate scale. larger sheet of to we larger value-added opportunity chance positions be can, or using a looking makes in whether stakeholders stakeholders, acquire wherever equity that incremental our to ways structures for equity it make every substantially to stakeholders working by
more large evolve, As a better please we I open working and With for here. honored efficient. here find are so the was thoroughly decision become that and commitment and my a use come ways Operator, believe improvement I we line technology to many of driver continue to to committed said questions. comments, to can in be to at employees. the industry Laredo great company processes improve continue an to employees I am that, must my Jason's onset Laredo to and with as continual
