Laredo Petroleum Announces the Reaffirmation of the Company’s $725 Million Senior Secured Credit Facility Borrowing Base

Purchases 2,758 Net Acres in Howard County

TULSA, OK, Oct. 22, 2020 (GLOBE NEWSWIRE) -- Laredo Petroleum, Inc. (NYSE: LPI) ("Laredo" or the "Company") today announced that the borrowing base of the Company’s Senior Secured Credit Facility was reaffirmed at $725 million in association with the semi-annual redetermination process. Additionally, the Company announced the purchase of 2,758 net acres in Howard County, including production of 210 barrels of oil equivalent ("BOE") per day, for $11.3 million.

Senior Secured Credit Facility Highlights (cash balance as of Oct. 19, 2020, includes acquisition payment)

• Reaffirmed borrowing base and maintained elected commitment of $725 million
• Reduced current borrowings to $220 million, a decrease from $275 million at June 30, 2020
• Increased liquidity to $476 million, including cash and cash equivalents of $15 million and adjusted for $44 million in letters of credit, an increase from $422 million at June 30, 2020

Howard County Bolt-On Highlights

• Acquired 2,758 net acres adjacent to existing Howard County acreage, increasing the Company’s position to 11,299 net acres
• Added 12 new 10,000-foot locations at conservative, 12 wells per unit development assumptions, with the potential for 25 additional locations as drilling units are formed
• Increased the working interest and lateral length of 12 existing locations, from 45% to 83% and from 7,500 feet to 10,000 feet, respectively
• Includes production of 210 BOE per day (80% oil)
• Low-cost financing with entire transaction funded with borrowings from Senior Secured Credit Facility

"During the third quarter, we delivered on our commitment to reduce net borrowings and strengthen our balance sheet, and have now reduced Net Debt by $54 million after paying for the Howard County bolt-on acquisition," stated Jason Pigott, President and Chief Executive Officer. "With the reaffirmation of our borrowing base fortifying our liquidity, hedges in 2021 equivalent to 80% of expected oil production supporting anticipated cash flows, and no term-debt maturities until 2025, we feel we are well positioned to execute on our strategic objectives of capital efficient oil growth and sustained Free Cash Flow generation."