Laredo Petroleum Announces Closing of Sale of Interest in Medallion Pipeline
October 30 2017 - 4:17PM
Laredo Petroleum, Inc. (NYSE:LPI) ("Laredo" or the "Company") today
announced the closing of the previously announced agreement among
an affiliate of Global Infrastructure Partners ("GIP"), Laredo’s
wholly-owned subsidiary Laredo Midstream Services, LLC ("LMS") and
Medallion Midstream Holdings, LLC, which is owned and controlled by
an affiliate of The Energy & Minerals Group, whereby GIP
purchased 100% of the ownership interests in Medallion Gathering
& Processing, LLC ("MGP") for a cash purchase price of $1.825
billion plus potential additional cash consideration. MGP is the
sole owner of the Medallion - Midland Basin pipeline system. LMS
received net proceeds of approximately $830 million for its 49%
interest in MGP, after deduction of its proportionate share of fees
and other expenses, but prior to customary post-closing adjustments
and taxes. The Company intends to use the net proceeds from the
sale primarily to repay debt.
About Laredo
Laredo Petroleum, Inc. is an independent energy company with
headquarters in Tulsa, Oklahoma. Laredo’s business strategy is
focused on the acquisition, exploration and development of oil and
natural gas properties and the gathering of oil and liquids-rich
natural gas from such properties, primarily in the Permian Basin of
West Texas.
Additional information about Laredo may be found on its website
at www.laredopetro.com.
Forward-Looking Statements
This press release and any oral statements made regarding the
subject of this release contain forward-looking statements as
defined under Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical facts,
that address activities that Laredo assumes, plans, expects,
believes, intends, projects, estimates or anticipates (and other
similar expressions) will, should or may occur in the future,
including, but not limited to, the application of net proceeds, are
forward-looking statements. The forward-looking statements are
based on management’s current belief, based on currently available
information, as to the outcome and timing of future events.
General risks relating to Laredo include, but are not limited
to, the decline in prices of oil, natural gas liquids and natural
gas and the related impact to financial statements as a result of
asset impairments and revisions to reserve estimates, and other
factors, including those and other risks described in its Annual
Report on Form 10-K for the year ended December 31, 2016, and those
set forth from time to time in other filings with the Securities
Exchange Commission (“SEC”). These documents are available through
Laredo’s website at www.laredopetro.com under the tab
“Investor Relations” or through the SEC’s Electronic Data Gathering
and Analysis Retrieval System at www.sec.gov. Any of these factors
could cause Laredo’s actual results and plans to differ materially
from those in the forward-looking statements. Therefore, Laredo can
give no assurance that its future results will be as estimated.
Laredo does not intend to, and disclaims any obligation to, update
or revise any forward-looking statement.
Contacts:
Ron Hagood: (918) 858-5504 - RHagood@laredopetro.com
17-13
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