Laredo Petroleum Inc. announced over $1 billion worth of transactions on May 9, which the Tulsa, Okla.-based independent says accelerates its strategic ambitions in the Permian Basin.

In a company release, Laredo said it had signed an agreement to acquire the assets of Sabalo Energy LLC, a portfolio company of EnCap Investments LP, and a nonoperating partner for approximately $715 million in cash and stock. Additionally, the company announced the partial sale of operated PDP reserves in gas-weighted legacy assets in Reagan and Glasscock counties, Texas, to an affiliate of Sixth Street Partners LLC.

Laredo expects the $405 million of proceeds from the sale to partially fund its acquisition, which includes roughly 21,000 contiguous net acres directly offsetting Laredo’s existing Howard County leasehold in the Midland Basin of West Texas.

Already have an account? Log In

Thanks for reading Hart Energy.

Sign Up now to get unmatched coverage of the oil and gas industry’s entire landscape.

Free Access