As the spread of COVID-19 has started to decline, the unemployment numbers across the city and the state have declined as well.

In the latest available numbers, Texas is down to 6.8%, and Laredo is a little higher but still declined to 7.8%. Despite the improved numbers,

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Laredo Petroleum (NYSE:LPI) mentioned that it was planning on restoring oil production in 2021 to full-year 2019 levels, with a development focus on its oil-heavy Howard County inventory. This would result in Q4 2021 oil production potentially ending up 40+% higher than Q4 2020 oil production. At current strip prices, it appears it will be able to achieve this without cash burn.

Laredo still has a lot of work to do beyond 2021 though. Its unsecured bonds remain trading in the 60s, pointing to the potential challenges in refinancing those, although the next unsecured bond maturity remains over four years away.

2021 Outlook

Laredo is currently planning on developing its Howard County acreage fairly heavily starting in late 2020. It expects to complete a 15-well package in Q4 2020, boosting production starting in Q1 2020. It also currently plans on another 50 to 55 completions in 2021.

This is expected

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