Laredo Petroleum Announces $200 Million Share Buyback Program Debt Repayment Target Raised to $700 Million
The two-year program is authorized by
Debt repayment target updated to
On track to achieve net debt1/consolidated EBITDAX1 ratio target of 1.0x by Q1 2023
Free Cash Flow1 for 2022-23 estimated at
“Today’s takeover announcement is the continuation of a three-year effort to create a new
The Company may purchase shares in accordance with applicable securities laws from time to time in open market or over-the-counter transactions. The Company intends to fund redemptions from available working capital and cash provided by operations. The timing, number and value of shares repurchased under the program will be at the discretion of management and the Board of Directors and will depend on a number of factors, including market conditions, trading conditions, share price of the Company’s common stock and the nature of other investment opportunities available to the Company. The program does not obligate Laredo to acquire any particular amount or number of shares of common stock, and the stock repurchase program may be suspended, modified, extended or terminated from time to time by the board of directors of the Company at any time.
This press release and all oral statements made regarding the contents of this release, including on the conference call referenced herein, contain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and in Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities that Laredo assumes, plans, expects, believes, intends, projects, indicates, enables, transforms, estimates or anticipates (and other similar expressions) will, will or may occur in the future are forward-looking statements. Forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. These statements are not guarantees of future performance and involve risks, assumptions and uncertainties.
General risks related to Laredo include, but are not limited to, declining oil, natural gas liquids and natural gas prices and the related impact on the financial statements due to asset write-downs and revisions reserves estimates, the Company’s ability to execute its strategies, including its ability to identify and successfully complete strategic acquisitions at purchase prices accretive to its financial results and to successfully integrate the businesses, assets and acquired properties, oil production quotas or other actions that may be imposed by the
This press release and all accompanying information includes financial measures that do not conform to generally accepted accounting principles (“GAAP”), such as consolidated EBITDAX and free cash flow. Although management believes these measures are useful to investors, they should not be relied upon as a substitute for GAAP financial measures.
Unless otherwise stated, references to “average sale price” mean the average sale price excluding the effects of the Company’s derivative transactions.
All amounts, dollars and percentages presented in this press release are rounded and therefore approximate.
Free cash flow (unaudited)
Free cash flow is a non-GAAP financial measure that the Company defines as net cash provided by operating activities (GAAP) before changes in operating assets and liabilities, net, less capital expenditures incurred. , excluding unbudgeted acquisition costs. Free cash flow does not represent funds available for future discretionary use, as it excludes funds required for future debt service, capital expenditures, acquisitions, working capital, income taxes, franchise taxes and other commitments and obligations. However, management believes that free cash flow is useful to management and investors in evaluating operating trends in its business that are affected by production, raw material prices, operating costs and other factors. related. There are significant limitations to using Free Cash Flow as a measure of performance, including the lack of comparability due to the different methods of calculating Free Cash Flow reported by different companies.
Consolidated EBITDAX (unaudited)
Consolidated EBITDAX is a non-GAAP financial measure defined in the Company’s senior secured credit facility as net income (GAAP) plus adjustments for extraordinary gains (or losses), recurring gains (or losses non-cash), depletion, depreciation and amortization. expenses, interest charges, any provisions for (or benefit from) income or franchise taxes, exploration expenses and other non-cash charges. Consolidated EBITDAX is used by the Company’s management for various purposes, including as a measure of operational performance and compliance under the Company’s senior secured credit facility. Additional information on the calculation of consolidated EBITDAX may be found in the Company’s Senior Secured Credit Facility, as amended by the Eighth Amendment thereto, as filed with the
Net debt (unaudited)
Net debt, a non-GAAP financial measure, is the face value of long-term debt plus any outstanding letters of credit less cash and cash equivalents. Management believes that net debt is useful to management and investors in determining the Company’s debt position since the Company has the ability and may decide to use a portion of its cash and cash equivalents to reduce its debt. .
Net debt to consolidated EBITDAX (unaudited)
Net debt to consolidated EBITDAX, a non-GAAP financial measure, is net debt, including letters of credit, divided by consolidated EBITDAX, as defined in the prime secured credit facility rank of the Society. For the purpose of calculating consolidated EBITDAX for the period ended
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