Laredo Petroleum Inc. (NYSE: LPI) had an uneven second quarter in 2014 as the company missed some targets, including production forecasts, but picked up 9,741 net acres in the Midland Basin.

Since the start of the second quarter through Aug. 7, the company has acquired or entered into agreements to acquire the acres for about $203 million.

Laredo said the additional acreage furthers the company's strategy of efficiently developing its Permian-Garden City asset with high working interest, long lateral horizontal wells.

The bolt-on acquisitions are a win for LPI’s portfolio in Reagan County, said Ian Macpherson, director and co-head of oil service research for Simmons & Co. International.

In Reagan County, about 6,900 of new net acreage sits adjacent to the company's full-scale development area and combines with the company’s existing leasehold. Laredo said the contiguous leases will enable it to construct at least two additional production corridors that should provide benefit in the efficient development of the acreage.

The company expects to add about 280 gross horizontal drilling locations in the Upper, Middle and Lower Wolfcamp and Cline zones and an estimated net resource potential of about 142 million barrels of oil equivalent (MMboe).

However, Macpherson said lower third-quarter 2014 and fiscal year production guidance will be most sharply in focus for investors.

“The stock is likely to be under some pressure,” he said.

David Tameron, senior analyst at Wells Fargo Securities, said Laredo had said the acquisition’s $203 million price tag was not in the original 2014 budget. As of June, Laredo had $1.2 billion of liquidity, including $400 million in cash and cash equivalents.

“The increased outspend may concern Wall Street,” he said.

The company also produced 28.7 Mboe/d compared to Wall Street’s estimates of 29.9 Mboe/d. Earnings per share of $0.14 was in line with Wells Fargo’s $0.15 estimate but below the Street's $0.18.

Laredo said it set a company record for Permian Basin production, which was about 13% greater than second-quarter 2013. The company completed 19 horizontal wells during the second quarter of 2014, 15 of which were drilled as stacked laterals on multi-well pads.

Randy A. Foutch, Laredo chairman and CEO, said the company’s acreage has significant advantages as it accelerated drilling.

“Selectively adding contiguous acreage is enabling us to add or expand new production corridors and gain additional operating efficiencies,” Foutch said. “The benefits of our concentrated asset base, infrastructure investments and stacked lateral program are beginning to accrue and we believe will become more impactful as we aggressively accelerate the development of this tremendous resource.”