Laredo Petroleum Announces Transformative Transactions - Seite 2

Acquisition Highlights:

• ~21,000 contiguous net acres (86% operated, 100% held by production) directly offsetting Laredo's existing Howard County leasehold
• ~120 operated oil-weighted locations (91% WI) and ~150 non-operated locations (12% WI)
• 83% of locations are capital efficient long laterals of 10,000 feet or greater
• Currently producing ~14,500 BOE per day (83% oil, three stream) of low-decline production with an estimated next 12-month oil decline of 35%
• PDP reserves of approximately 30 million BOE (73% oil, three stream)
• Ideally situated for Laredo's efficient, low-cost operating structure
• Development and spacing assumptions of 12 wells per drilling spacing unit

"This transaction complements Laredo’s existing asset base and strategy and accelerates the Company’s transformation to becoming a leading independent operator in the Midland Basin," commented Doug Swanson, Managing Partner of EnCap. "Laredo is well positioned to maximize value from the Sabalo assets and we view this transaction as compelling for Laredo shareholders, including EnCap, as part of this transaction."

Divestiture Highlights:

• Proceeds of $405 million from Sixth Street for the sale of 37.5% of Laredo's working interest in operated PDP reserves in gas-weighted Legacy assets, which does not include the Western Glasscock acreage acquired in late 2019
• Divested reserves of approximately 94 million BOE (18% oil) with associated production of approximately 25,000 BOE per day (23% oil), at closing
• Wellbore working interest only, Laredo retains all undeveloped locations

Acquisition Financing Details:

• Funded through the partial sale of Legacy PDP reserves, borrowings on the Company's Senior Secured Credit Facility and the issuance of approximately 2.5 million common shares to EnCap
• Senior Secured Credit Facility borrowing base reaffirmed at $725 million

¹Non-GAAP financial measure; please see definitions of non-GAAP financial measures at the end of this release.

Citigroup and Houlihan Lokey provided advisory services on the Sabalo acquisition and Houlihan Lokey acted as financial advisor on the PDP sale to Sixth Street. Akin Gump and Willkie Farr & Gallagher served as Laredo’s legal advisors. Jefferies acted as exclusive financial advisor to Sabalo and Bracewell served as Sabalo's legal advisor. White & Case acted as legal advisor to Sixth Street.