Research Update: Laredo Petroleum Inc. Outlook Revised To Stable From Negative, 'B-' Rating Affirmed; Issue Ratings Raised To 'B'

S&P Global Ratings raised its near-term crude oil price assumptions and now anticipates West Texas Intermediate (WTI) crude oil to average $55 per barrel (/bbl) for the remainder of 2021 and 2022. We expect Oklahoma-based exploration and production (E&P) company Laredo Petroleum's credit metrics to show a modest improvement under our new price assumptions. As a result, we are affirming our 'B-' issuer credit rating on Laredo and revising the outlook to stable from negative. We are raising our issue-level rating on the company's senior unsecured notes to 'B' from 'B-' and revising our recovery rating on the notes to '2' from '3'. The stable outlook reflects our expectation that Laredo will maintain credit measures appropriate for the rating over

...- S&P Global Ratings raised its near-term crude oil price assumptions and now anticipates West Texas Intermediate (WTI) crude oil to average $55 per barrel (/bbl) for the remainder of 2021 and 2022. - We expect Oklahoma-based exploration and production (E&P) company Laredo Petroleum's credit metrics to show a modest improvement under our new price assumptions. - As a result, we are affirming our 'B-' issuer credit rating on Laredo and revising the outlook to stable from negative. - We are raising our issue-level rating on the company's senior unsecured notes to 'B' from 'B-' and revising our recovery rating on the notes to '2' from '3'. - The stable outlook reflects our expectation that Laredo will maintain credit measures appropriate for the rating over the next 12 months, including average funds from operations (FFO) to debt of about 30%, supported by robust hedging....

Research Update