Laredo moves to improve debt

Tulsa’s Laredo Petroleum has launched a nearly $1 billion effort to refinance its debt.

In an announcement this week, the company offered $900 million in different senior unsecured notes including $450 million in notes due 2025 and another $450 million in notes due 2028.

Laredo stated it will use the net proceeds to finance its $450 million in 5 5/8% senior unsecured notes due January 2022 and $350 million in 6.25% senior unsecured notes due March 2023.

The early settlement date for each series of existing notes is currently expected to occur on or about January 24,
2020, subject to all conditions to the applicable Tender Offer and Consent Solicitation having been either satisfied
or waived by the Company.

The new notes will be senior unsecured obligations of the Company and will be guaranteed on a senior unsecured
basis by the Company’s existing subsidiaries and all of its future subsidiaries, with certain exceptions. BofA Securities, Wells Fargo Securities, BMO Capital Markets, Goldman Sachs & Co. LLC, Barclays and Capitol One Securities are acting as joint book-running managers for the offering.

Also this week, Laredo Petroleum, Inc. announced year-end reserve estimates and annual production for 2019.
• Exceeded both oil and total production guidance for full-year 2019, producing an average of 28.4 thousand
barrels of oil per day (“MBOPD”) and 80.9 thousand barrels of oil equivalent per day (“MBOEPD”) in fullyear 2019, increases of 2% and 19% versus full-year 2018, respectively
• Grew proved oil reserves by 17 million barrels, an increase of 27% versus year-end 2018
• Grew total proved reserves by 55 million BOE to 293 million BOE, an increase of 23% versus year-end
“The Company’s strong performance in 2019 reflects the successful implementation of our returns and Free Cash
Flow1 generation focused strategy,” commented Jason Pigott, President and Chief Executive Officer. “Results in
2019 were driven by our outstanding operational performance and improved well productivity related to widerspaced development. Development in 2020 will shift to our recent Howard County acquisition, as we seek to further
improve corporate returns and Free Cash Flow1 generation through accretive acquisitions that target oily, highmargin inventory.”

Laredo exceeded both oil and total production guidance for the fourth consecutive quarter, with fourth-quarter 2019
oil production of 27.3 MBOPD beating guidance by 5% and total production of 84.0 MBOEPD beating guidance by
10%. Results throughout the year were driven by consistent operational efficiency gains that positively impacted
cycle times and wider-spaced well packages that averaged 16% better than the Company’s oil type curve for Upper/Middle Wolfcamp wells on Laredo’s established acreage.

The Company grew total proved reserves by 23%, an increase of 55 million BOE, partially driven by results from
wells developed with wider spacing versus wells developed in 2018 with tighter spacing. Additionally, Laredo has
increased PUD bookings, primarily related to the Company’s recently acquired Howard County acreage. The
Company has chosen to increase PUD bookings compared to previous years, reflecting the certainty of the nearterm development plan for the Howard County acreage.