Laredo Petroleum Announces $200 Million Share Buyback Program Debt Repayment Target Raised to $700 Million

TULSALaredo Petroleum, Inc. (NYSE: LPI) (“Laredo” or the “Company”) today announced that its Board of Directors has authorized a $200 million share buyback program.

The two-year program is authorized by May 27, 2024.

Strong points

$200 million share buyback program delivers on the Company’s commitment to begin returning significant cash to shareholders approximately nine months ahead of schedule

Debt repayment target updated to $700 million by the end of 2023

On track to achieve net debt1/consolidated EBITDAX1 ratio target of 1.0x by Q1 2023

Free Cash Flow1 for 2022-23 estimated at $900 million at current commodity prices

“Today’s takeover announcement is the continuation of a three-year effort to create a new Laredo Petroleum,’ declared Jason Pigot, President and CEO. “We have successfully repositioned the company and are focused on disciplined, high-return investments in our oil-weighted developments. We expect to generate approximately $900 million Free Cash Flow until the end of next year, allowing us to continue to reduce our debt while buying back our shares on an opportunistic basis.

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.

About Laredo

Laredo Petroleum, Inc. is an independent energy company headquartered in Tulsa, Oklahoma. Laredo’s business strategy is focused on the acquisition, exploration and development of oil and gas properties, primarily in the Permian Basin of West Texas.

Forward-looking statements

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 Organization of Petroleum Exporting Countries and other producing nations (“OPEC+”), disease outbreak, such as the coronavirus pandemic (“COVID-19”), and any related government policies and actions, changes in domestic and global production, supply and demand for commodities, including due to the COVID-19 pandemic, OPEC+ actions and the Russian-Ukrainian military conflict, long-term well performance, drilling risks and operating costs, increased service and supply costs, including inflationary pressures, steel tariffs, pipeline transportation and storage constraints Permian Basinthe possibility of reduced production, hedging activities, the impacts of severe weather events, including freezing of wells and pipelines in the Permian Basin due to cold weather, the possible impacts of litigation and regulations, the impact of the Company’s dealings, if any, with its securities from time to time, the impact of new laws and regulations, including those regarding the use of hydraulic fracturing, the impact of new environmental, health and safety requirements applicable to the Company’s business activities, the possibility of eliminating federal tax deductions for exploration and oil and gas development and other factors, including those and other risks described in its annual report on Form 10-K for the year ended December 31, 2021 and those set forth from time to time in other documents filed with the Security and Exchange Commission (‘SECOND‘). These documents are available on Laredo’s website at www.laredopetro.com under the “Investor Relations” tab or through the DRY Electronic Data Collection and Analysis System at www.sec.gov. Each of these factors could cause Laredo’s actual results and plans to differ materially from those contained in the forward-looking statements. Accordingly, Laredo cannot guarantee that its future results will be as estimated. Any forward-looking statement speaks only as of the date such statement is made. Laredo does not intend to correct, update or revise any forward-looking statement, and disclaims any obligation to do so, whether as a result of new information, future events or otherwise, except as required by applicable law. requires it.

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 SECOND on April 19, 2022.

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 March 31, 2022the calculation is the annualization of the three completed quarters March 31, 2022. The net debt/consolidated EBITDAX ratio is used by the Company’s management for various purposes, including as a measure of operating performance, in presentations to its board of directors and as a basis for strategic planning and forecasting.

Contact:

Ron Hagood

Tel: 918.858.5504

Email: [email protected]

Tana T. Thorsen