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  Economics : Rates of Return/ IRR

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Howard County Position Increases Leverage to Oil Prices Anticipated returns double with a 20% decrease in well costs Forecasted first-year production mix of 80% oil drives exposure to an oil price recovery 40 DUCs at YE-20E sets up capital-efficient development 100% 80% ROR1 (%) 60% 40% 20% 0% 35 40 45 50 WTI (/Bbl) 152,750 gross / 134,614 net acres Howard County (5.5 MM / Well) Howard County (6.8 MM / Well) LPI Leasehold 16 1 Rates of return utilize 2/MMBtu HH
Laredo Petroleum Inc.
June 2020

Reducing Capital Spend Activity Reductions Lowered 2020 capital budget to less than 700 High-Grading Drilling Activity at Lower Oil Prices million Parsley Acreage 1Q20 capex of 379 million comprises 50% of Initial Rigs at 50 WTI Budget full-year budget MARTIN HOWARD Ceased new drilling in the near-term Capital allocation guided by Rate of Return focus EDDY LEA ROR-focus will guide future activity mix ANDREWS Investment decision based on unhedged GLASSCOCK WINKLER economics LOVING ECTOR MIDLAND 2020 capital program suspended during 2Q20 as CULBERSON Central regional oil prices fell below 20 per barrel Delaware WARD Basin Basin Platform Ceased new drilling; frac hiatus began in April CRANE UPTON REEVES Stabilized activity poised to resume when oil market Midland Basin REAGAN fundamentals are more constructive Midland Midland Delaware Lower activity levels allow further focus on high- Basin Basin - West Basin - East PECOS grading returns 2020 Activity Plans Remain Dynamic Deferring Near-Term Completion Activity Initial Shutdown Stabilized 60 Activity reduced Budget Sensitivity Activity in March Gross Operated POPs(1) 50 Base Case Oil Price 50 WTI <20 WTI 30 WTI Strip pricing suggests a Rigs 15 Rigs Idled Rigs 4-5 Rigs 40 move toward stabilized activity levels by YE20 Frac Crews 4-5 Crews Frac Hiatus 1-2 Crews 30 20 Frac hiatus Quarterly POPs 45-50 0-10 15-25 started in April 10 Breakdown Midland West 45% N/A 60% Activity Midland East 20% N/A 10% 0 1Q20A 2Q20E 3Q20E 4Q20E Delaware 35% N/A 30% WTI Strip 46 20 30-35 Oil Price(2) (1) Wells placed on production. Includes wells placed on production by Jagged Peak Energy Inc. (Jagged Peak) between January 1, 2020 and January 10, 2020; (2) As of 5/29/2020. 5
Parsley Energy Inc.
June 2020

Wolfcamp A: CGA Type Curve 10,000 Wolfcamp A Key Points Cum Oil Production Normalized to 10,000 (Bo) Wolfcamp A type curve wells selected from 250,000 geologically similar region Oil Type Curve HighPeak has directly analogous landing zones and oil in place to highly developed parts of the play 200,000 Type curve: 12-mo cum.: 178 MBbl / 203 MBoe EUR: 825 MBbl / 969 MBoe 150,000 Wolfcamp A OOIP (MMBo/Section) 100,000 50,000 0 0 2 4 6 8 10 12 Month Single Well Return Sensitivities (1) Single Well IRR (%): DCE&F Costs vs. Price Deck Payback PeriodSingle (Yrs): DCE&F Costs Well IRR (%): vs. PriceCosts DCE&F Deckvs. Price Deck DCE&F Costs (MM) DCE&F Costs (MM) 4.75 5.25 5.75 4.75 5.25 5.75 35 / Bbl 59% 49% 40% 35 / Bbl 1.3 Yrs 1.5 Yrs 1.8 Yrs Price Deck Price Deck 40 / Bbl 81% 67% 56% 40 / Bbl 1.0 Yrs 1.2 Yrs 1.3 Yrs 50 / Bbl 132% 110% 93% 50 / Bbl 0.8 Yrs 0.8 Yrs 0.9 Yrs Type Curve Well Note: YE19 CGA Wolfcamp A PUD type curve (10,000 LL) utilizes peak oil rate of 825 Bo/d (month 4), b = 1.2, dmin = 6% and assumes 6 wells per section. (1) Assumes 2.50 / MMBtu (gas) in all cases. Payback period calculated from first production. 19
HighPeak Energy
May 2020

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