Subsequent events

a. Senior Secured Credit Facility

On January 8, January 15, February 5 and February 12, 2015, the Company borrowed $20.0 million, $45.0 million, $15.0 million and $55.0 million on the Senior Secured Credit Facility, respectively. The outstanding balance under the Senior Secured Credit Facility was $435.0 million at February 25, 2015.

b. Restructuring

Following the recent drop in oil and natural gas prices, in an effort to reduce costs and better position the Company for ongoing efficient growth, on January 20, 2015, the Company committed to a company-wide restructuring and reduction in force (the "RIF") that includes (i) the relocation of certain employees in the Company's Dallas, Texas area office to the Company's other existing offices in Tulsa, Oklahoma and Midland, Texas; (ii) closing our Dallas, Texas area office; (iii) a workforce reduction of approximately 75 employees and (iv) the release of 24 contract personnel. The reduction in workforce was communicated to employees on January 20, 2015 and was generally effective immediately. The relocation of Company employees and the closing of the Company's Dallas, Texas area office are expected to be completed by June 1, 2015. The Company's compensation committee approved the RIF and the severance package offered in connection with the RIF.

c. Medallion capital call

On February 17, 2015, the Company received a capital call from Medallion totaling $14.5 million, which represents Laredo Midstream's remaining commitment for the extension from Medallion's Garden City Station to Midland and Upton counties, Texas and a portion of the commitment for the southern extension from Medallion's Reagan Station further into Reagan County, Texas.

d. New commodity derivative contracts

Subsequent to December 31, 2014, the Company entered into the following new commodity derivative contracts:



	Aggregate volumes	Swap Price			Floor Price		Ceiling Price		Contract period
Oil (volumes in Bbl)
Price collar⁽¹⁾	365,000	$	—		$	60.00	$	80.00	January 2017 - December 2017
Basis swaps⁽²⁾	3,060,000	$	(1.95	)	$	—	$	—	March 2015 - December 2015

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(1)	The associated commodity derivative will be settled based on the WTI NYMEX index oil price. There is a $1.0 million deferred premium associated with this contract.


(2)	The associated oil basis swaps will be settled on the differential between the West Texas Intermediate Argus Americas Crude Midland index oil price and the WTI NYMEX index oil price.