Gross receipts show slowing economy

OKLAHOMA CITY — Oklahoma Gross Receipts to the Treasury for calendar year 2019 paint the picture of a sound, but slowing state economy, according to State Treasurer Randy McDaniel.

Gross receipts during all of 2019 are 5.7% more than during 2018. That growth rate is down from 13.2% in 2018 compared to 2017.

McDaniel said the slowdown becomes more pronounced when viewed on a quarterly basis. Growth in collections during the first two quarters of 2019 reflected expansion of almost 10%. Third quarter growth fell to 4.2%, while fourth quarter receipts contracted by 0.5% when compared to the fourth quarter of 2018.

“Recent economic trends appear to be primarily related to low oil and gas prices,” McDaniel said. “We are seeing both a direct and spillover effect on some tax collections due to suppressed energy prices.”

Tax collections on oil and gas production have been significantly below the prior year for four consecutive months. Sales tax receipts have shown contraction for six of the past seven months. In December, use tax collections on out-of-state purchases dropped below those of the prior year for the first time in more than three years.

Tax records show the downturn in sales and use taxes are reflecting the spillover effect of reduced oil field activity due to a drop off in the buying of drilling equipment and related purchases. Drilling activity has plunged by more than 60% in the past year. Natural gas prices are down by almost 30% and oil prices are off by almost 25% since this time last year.

Laredo Petroleum announces offering of senior notes

TULSA — Laredo Petroleum Inc., a Delaware corporation, announced that it intends, subject to market conditions, to publicly offer $450 million in aggregate principal amount of senior unsecured notes due 2025 and $450 million in aggregate principal amount of senior unsecured notes due 2028 in a registered underwritten offering for a total of $900 million.

The company intends to use the net proceeds of the offering, if completed, to refinance the Company’s $450 million in aggregate principal amount of 5 5/8% senior unsecured notes due January 2022 and $350 million in aggregate principal amount of 6 1/4% senior unsecured notes due March 2023 through tender offers or, if applicable, redemptions, and to pay tender premiums and fees and the fees and expenses related to the offering and for general corporate purposes, including repaying a portion of the borrowings outstanding under the Company’s senior secured credit facility.

The new notes will be senior unsecured obligations of the company and will be guaranteed on a senior unsecured basis by the company’s existing subsidiaries and all of its future subsidiaries, with certain exceptions.

BofA Securities, Wells Fargo Securities, BMO Capital Markets, Goldman Sachs & Co. LLC, Barclays and Capitol One Securities are acting as joint book-running managers for the offering.

Devon Energy to report financial results

OKLAHOMA CITY — Devon Energy Corp. announced plans to report its fourth-quarter and full-year 2019 results Feb. 18, after the close of U.S. financial markets. The earnings release and operations report for the fourth-quarter and full-year results will be available on the company’s website, devonenergy.com.

At 10 a.m. Feb. 19, the company will host a conference call, which will consist primarily of answers to questions from analysts and investors. A webcast link to the conference call will be provided at devonenergy.com. A replay will be available on the website following the call.

Laredo Petroleum announces proved reserves, production

TULSA — Laredo Petroleum Inc. announced year-end reserve estimates and annual production for 2019. Highlights include the following:

• Exceeded both oil and total production guidance for full-year 2019, producing an average of 28.4 thousand barrels of oil per day ("MBOPD") and 80.9 thousand barrels of oil equivalent per day ("MBOEPD") in full-year 2019, increases of 2% and 19% versus full-year 2018, respectively

• Grew proved oil reserves by 17 million barrels, an increase of 27% versus year-end 2018

• Grew total proved reserves by 55 million BOE to 293 million BOE, an increase of 23% versus year-end 2018

Laredo exceeded both oil and total production guidance for the fourth consecutive quarter, with fourth-quarter 2019 oil production of 27.3 MBOPD beating guidance by 5% and total production of 84.0 MBOEPD beating guidance by 10%. Results throughout the year were driven by consistent operational efficiency gains that positively impacted cycle times and wider-spaced well packages that averaged 16% better than the Company's oil type curve for Upper/Middle Wolfcamp wells on Laredo's established acreage.

The company grew total proved reserves by 23%, an increase of 55 million BOE, partially driven by results from wells developed with wider spacing versus wells developed in 2018 with tighter spacing.

Additionally, Laredo has increased PUD bookings, primarily related to the company's recently acquired Howard County acreage. The company has chosen to increase PUD bookings compared to previous years, reflecting the certainty of the near-term development plan for the Howard County acreage.

— Submitted Content

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