Laredo Petroleum Announces 2020 Capital Budget and Updates Three-Year Outlook

TULSA, OK, Feb. 26, 2020 (GLOBE NEWSWIRE) -- Laredo Petroleum, Inc. (NYSE: LPI) ("Laredo" or "the Company") today announced the Company's 2020 capital budget of approximately $450 million and updated its 2020 - 2022 three-year outlook.

2020 Budget Highlights

• Expect to balance capital expenditures and cash flow at $50 per barrel WTI and $2.25 per MMBtu Henry Hub pricing
  
  
• Anticipating mid-single digit oil and total production growth versus full-year 2019, driven by capital- efficient development of recently acquired Howard County leasehold
  
  
• Planned 2020 capital budget of $450 million is a 7% decrease versus 2019 capital expenditures
  
  
• All development activity expected to transition to Howard County acreage by the end of second-quarter 2020

"Our 2020 budget and production expectations reflect the significant progress we made in 2019 optimizing our established acreage position and opportunistically adding high-margin inventory," stated Jason Pigott, President and Chief Executive Officer. "Throughout 2019, we drove down well costs, unit lease operating expenses and unit general and administration expenses, while improving well productivity versus 2018 by widening development spacing. We expect to retain the benefits of these improvements in our 2020 development program as we transition from our established acreage base to our recently acquired tier-one Howard County acreage. This transition to Howard County is expected to drive mid-single digit oil production growth within cash flow in 2020 and position the Company for continued oil growth with Free Cash Flow generation in 2021 - 2022 in a $50 oil price environment."

2020 Capital Program

The Company's capital program for 2020 is structured to facilitate an efficient transition from Laredo's established acreage position to the recently acquired, oilier acreage in Howard County and target capital efficient oil production growth within cash flow. Utilizing commodity prices of $50.00 per barrel WTI and $2.25 per MMBtu Henry Hub for the budget in 2020, the Company expects to grow oil at a mid-single digit rate within cash flow and be in full development mode in Howard County by the end of the second quarter of 2020.