Tulsa-based Laredo Petroleum, Inc. announced it has started a $200 million share repurchase program.
The board of directors approved the decision this week and indicating the timing, number and value of shares repurchased will be at the discretion of management and the board. It will also depend on market conditions, business conditions and the trading price of the company’s common stock.
The authorization extends through Feb. 16, 2020.
“At current market prices, this program will enable the Company to repurchase approximately 10% of our
outstanding shares at, what we believe, is a substantial discount to the true value of the Company.” stated Randy A.
Foutch, Chairman and Chief Executive Officer. “Our balance sheet strength after the divestment of our interest in
the Medallion-Midland Basin pipeline system offers several avenues to accelerate value recognition for our current
shareholders. We believe this repurchase program is the most compelling and accretive avenue at this time.”
The repurchasing announcement came on the same day the company revealed net income of $408.6 million for the 4th quarter of 2017. Adjusted net income for the quarter was $44.8 million.
For the year, the company reported net income of $549 million while adjusted net income was $144.7 million. Laredo is an independent energy company and its main focus of acquisition and exploration is in the Permian Basin.
