Laredo Petroleum Announces Reduction of Personnel Costs by ~25%
April 08 2019 - 4:15PM
Laredo Petroleum, Inc. (NYSE: LPI) ("Laredo" or "the Company")
today announced the Company has taken measures to align the
Company's cost structure with operational activity, reducing
combined cash and non-cash general and administrative expenses and
capitalized employee costs by approximately 25% on an annualized
basis. Separately, the Company announced the promotion of Michael
T. Beyer to Senior Vice President and Chief Financial Officer,
immediately replacing Richard C. Buterbaugh.
"The Company has delivered on its commitment to
align general and administrative expenses and capitalized employee
costs with our current operational activity," commented Randy A.
Foutch, Chairman and Chief Executive Officer. "We have reduced our
total employee count by approximately 20%, including a greater than
40% reduction at the Vice President and above level, resulting in
annualized savings of approximately $30 million. While these
actions are always difficult, they are necessary as we focus on
increasing corporate-level returns and growing within cash flow
from operations."
"Michael's promotion is the latest action in the
Company's senior leadership succession planning process," continued
Mr. Foutch. "Since the fourth quarter of 2018, we have named a new
Chief Operating Officer, Chief Financial Officer and General
Counsel. I welcome Michael's expanded leadership role as the
Company sharpens it's focus on full-cycle economics and
corporate-level returns. I would also like to thank Rick for his
contributions over the last seven years. His dedication to Laredo
is truly appreciated and I wish him well in his future
endeavors."
Mr. Beyer began his career in the oil and gas
industry in 2002 and joined Laredo in 2007. Most recently, Mr.
Beyer served as the Company's Chief Accounting Officer and was
Controller prior to 2014. Mr. Beyer holds a Bachelor of Business
Administration in Accounting from The University of Oklahoma and
has been a Certified Public Accountant since 2002.
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, including in the conference
call referenced herein, 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 share repurchase program, which
may be suspended or discontinued by the Company at any time, 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, the increase in service costs, hedging
activities, possible impacts of pending or potential litigation and
other factors, including those and other risks described in its
Annual Report on Form 10-K for the year ended December 31, 2018,
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
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