Laredo Petroleum (LPI) Update - July 3

[dan_s]

TULSA, OK, July 01, 2021 (GLOBE NEWSWIRE) -- Laredo Petroleum, Inc. (NYSE: LPI) ("Laredo" or the "Company") announced today that it has closed its previously announced transactions to acquire the oil-weighted Howard County leasehold of Sabalo Energy, LLC ("Sabalo"), a portfolio company of EnCap Investments L.P., and a non-operating partner, and to partially divest of certain legacy gas-weighted proved developed producing reserves to an affiliate of Sixth Street Partners, LLC ("Sixth Street"). Additionally, the Company announced the results of its "at-the-market" offering program (the "ATM Program"), described in a prospectus supplement filed with the Securities and Exchange Commission (the "SEC") on February 23, 2021, and scheduled its second-quarter 2021 earnings release and conference call.

On July 1, 2021, Laredo closed two previously announced transformative transactions. For the acquisition of Sabalo’s assets, after closing price adjustments, the Company paid the sellers aggregate consideration of $606 million in cash and 2.507 million shares of Laredo’s common stock. For the sale of proved developed reserves to Sixth Street, Laredo received $405 million in cash, subject to customary adjustments, and may receive additional potential cash flow based earn-out payments over the next six years.

Subsequent to the announcement of the transactions, the Company sold 714,526 shares through its ATM Program at an average price of $65.70 for net proceeds of $45.8 million. Laredo has 16.1 million total shares outstanding as of July 1, 2021, including shares issued in connection with the closing of the Sabalo acquisition.

In connection with the closing of the transactions, the Company’s senior secured credit facility borrowing base was reaffirmed at $725 million, with both Laredo’s elected commitment and lender commitments set at $725 million. As of July 1, 2021, Laredo has outstanding borrowings of $380 million on its senior secured credit facility, resulting in available capacity, after the reduction for outstanding letters of credit, of $301 million. Including cash and cash equivalents of $54 million, total liquidity is $355 million.

"The closing of these transformative transactions marks the transition of Laredo into a very different Company than it was two years ago," stated Jason Pigott, President and Chief Executive Officer. "Our disciplined acquisition strategy has dramatically improved our expected capital efficiency and Free Cash Flow1 generation capability. We remain committed to reducing leverage and maintaining our financial strength as we develop our oil-weighted properties and further transform our asset base."

Second-Quarter 2021 Earnings Release and Conference Call Details
Laredo will report second-quarter 2021 financial and operating results after the market close on Wednesday, August 4, 2021, and will host a conference call on Thursday, August 5, 2021, at 7:30 a.m. CT to discuss the results. To participate on the call, dial 877.930.8286 (international dial-in 253.336.8309), using conference code 3698069 or listen to the call via the Company's website at www.laredopetro.com, under the tab for "Investor Relations." A telephonic replay will be available approximately two hours after the call on Thursday, August 5, 2021 through Thursday, August 12, 2021. Participants may access this replay by dialing 855.859.2056, using conference code 3698069.

About Laredo
Laredo Petroleum, Inc. is an independent energy company with headquarters in Tulsa, Oklahoma. Laredo’s business strategy is focused on the acquisition, exploration and development of oil and natural gas properties, primarily in the Permian Basin in West Texas.

[dan_s]

Laredo Petroleum cutting approx 5% of its workforce -- 8-K filing
4:54 PM ET 7/2/21 | Briefing.com

In an 8-K filing, co announces a reduction of 14 individuals as part of its reorganization effort.