Laredo Petroleum, Inc. announced this week that its board of directors authorized a $200 million share repurchase program.
The two-year program is authorized through May 27, 2024. In making the announcement, leadership of the Tulsa company said the move realizes Laredo’s commitment to begin returning significant cash to shareholders nearly nine months ahead of schedule.
Laredo has also updated its debt repayment target to $700 million by the end of 2023.
“Today’s buyback announcement is the continuation of a three-year effort to create a new Laredo Petroleum,” stated Jason Pigott, President and Chief Executive Officer.
He said the company has been successfully repositioned and is focused on high-return and disciplined investments in its oil-weighted developments.
“We expect to generate approximately $900 million of Free Cash Flow through the end of next year, enabling us to continue reducing debt while opportunistically repurchasing our shares.”
Laredo expects to make the share purchases in the open market or privately negotiated transactions. It also intends to fund the repurchases from available working capital and cash provided by its operating activities.
The share repurchasing announcement came a month after Laredo’s first quarter earnings report was released showing a net loss of $86.8 million and nearly $171 million in cash flows from operating activities. Its adjusted EBITDA amounted to more than $222 million with a free cash flow of more than $23 million.
Source: Laredo press release
