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Laredo Petroleum, Inc. (NYSE: LPI) today announced the signing of a purchase and sale agreement to acquire the assets of Sabalo Energy, LLC, a portfolio company of EnCap Investments L.P., and a non-operating partner for approximately $715 million, subject to customary closing price adjustments, comprised of $625 million in cash and approximately 2.5 million shares of Laredo common equity. The transaction is expected to close July 1, 2021.

“This transaction complements Laredo’s existing asset base and strategy and accelerates the company’s transformation to becoming a leading independent operator in the Midland Basin,” said EnCap Managing Partner Doug Swanson. “Laredo is well positioned to maximize value from the Sabalo assets and we view this transaction as compelling for Laredo shareholders, including EnCap, as part of this transaction.”