Relatively small and concentrated reserve and production base High proportion of proved reserves that are undeveloped Participation in the cyclical and capital-intensive oil and gas exploration and production industry Expectation for capital spending to significantly exceed internally generated cash flows Improving credit measures through year-end 2015 due to expected EBITDA growth The outlook is stable, reflecting our expectation that leverage will improve to between 2x and 2.5x and liquidity will remain adequate while Laredo continues to invest to develop its Permian acreage position. We would consider a downgrade if debt to EBITDA exceeded 4.5x for a sustained period or if the company faced material liquidity issues that limited its access to capital to fund its growth. We believe this could
