Research Update: Laredo Petroleum Inc. Outlook Revised To Negative On Increased Operational And Refinancing Risk; 'B+' Rating Affirmed - S&P Global Ratings’ Credit Research

Research Update: Laredo Petroleum Inc. Outlook Revised To Negative On Increased Operational And Refinancing Risk; 'B+' Rating Affirmed

Research Update: Laredo Petroleum Inc. Outlook Revised To Negative On Increased Operational And Refinancing Risk; 'B+' Rating Affirmed - S&P Global Ratings’ Credit Research
Research Update: Laredo Petroleum Inc. Outlook Revised To Negative On Increased Operational And Refinancing Risk; 'B+' Rating Affirmed
Published Dec 10, 2019
7 pages (2725 words) — Published Dec 10, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Tulsa, Okla.–based oil and gas exploration and production (E&P) company Laredo Petroleum Inc. bought 4,475 contiguous net acres in Glasscock County for $65 million and plans to purchase 7,360 undeveloped acres in Howard County (Permian Basin) for $130 million, which it intends to pay for with its reserve-based lending facility. Upon closing of the acquisition, expected by year-end 2019, the company plans to move all three of its currently operated rigs to Howard Co., with first production from this area anticipated in the third quarter of 2020. We are affirming the 'B+' issuer credit rating on Laredo and revising the outlook to negative from stable. At the same time, we are affirming the 'B+' issue-level ratings on the company's unsecured

  
Brief Excerpt:

...- Tulsa, Okla.¡based oil and gas exploration and production (E&P) company Laredo Petroleum Inc. bought 4,475 contiguous net acres in Glasscock County for $65 million and plans to purchase 7,360 undeveloped acres in Howard County (Permian Basin) for $130 million, which it intends to pay for with its reserve-based lending facility. - Upon closing of the acquisition, expected by year-end 2019, the company plans to move all three of its currently operated rigs to Howard Co., with first production from this area anticipated in the third quarter of 2020. - We are affirming the 'B+' issuer credit rating on Laredo and revising the outlook to negative from stable. - At the same time, we are affirming the 'B+' issue-level ratings on the company's unsecured notes based on a company provided PV-10 and S&P Global Ratings' updated recovery price deck. - The negative outlook reflects the potential for a downgrade if production from Howard Co. does not come on as expected, if the company does not take...

  
Report Type:

Research Update

Ticker
2842257Z
Issuer
Laredo Petroleum Inc.
GICS
Oil & Gas Exploration & Production (10102020)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Laredo Petroleum Inc. Outlook Revised To Negative On Increased Operational And Refinancing Risk; 'B+' Rating Affirmed" Dec 10, 2019. Alacra Store. May 25, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Laredo-Petroleum-Inc-Outlook-Revised-To-Negative-On-Increased-Operational-And-Refinancing-Risk-B-Rating-Affirmed-2356025>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Laredo Petroleum Inc. Outlook Revised To Negative On Increased Operational And Refinancing Risk; 'B+' Rating Affirmed Dec 10, 2019. New York, NY: Alacra Store. Retrieved May 25, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Laredo-Petroleum-Inc-Outlook-Revised-To-Negative-On-Increased-Operational-And-Refinancing-Risk-B-Rating-Affirmed-2356025>
  
US$ 225.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.