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IPAA OGIS NEW YORK – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Apr 20, 2015 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 1
    IPAA-OGIS New York April 20, 2015 1
  2. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 2
    Do It Right From the Start Focus on long-term value from the beginning Hire quality people, and support them with the tools they need to be successful Acquire contiguous acreage in the right basin Collect quality data at the right…
  3. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 3
    Contiguous Acreage Position With High Working Interest 179,722 Gross/149,141 net acres1 4.3 billion barrels of resource potential on 7,700 identified locations 3,200 operated Development Ready Hz locations with 90% average WI…
  4. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 4
    Permian Asset Extensive Technical Database Technical database consisting of whole cores, sidewall cores, single-zone tests, open-hole logs, 3D seismic and production logs Provides the building blocks for identification of resource…
  5. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 5
    Regional Cross-Section 1 1 2 3 4 5 6 7 8 9 10 2 North South 3 Upper 4 Spraberry 5 6 7 Lower Spraberry 8 UWC 9 MWC 10 10 MILES LWC Flattened on the Middle Wolfcamp Canyon 500 Cline Strawn - GAMMA RAY ABW -…
  6. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 6
    Location(s), Location(s), Location(s) Concentrated multi-zone horizontal development Laredo Petroleum has categorized its horizontal drilling inventory utilizing the following classifications: De-Risked Development Ready Locations…
  7. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 7
    Canyon Formation: Discovery & Delineation LPI - Glass 22A-Aermotor 7SP 7,000 Lateral 30 Day IP: 1,151 BOED EUR 650 MBOE Normalized 7,500 lateral EUR: 696 MBOE LPI - Barbee C-1-1B 2SP 8,300 Lateral WOC EOG Rocker B 1949 1H…
  8. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 8
    Identified Resource Potential 4,500 4.3 BBOE 4,000 3,500 3,000 MMBOE 2,500 2,000 1,500 1,000 500 0 Total Proved1 Development 2 Hz Hz Total Resource (12/31/14) Ready Commerciality Commerciality Potential Confirmed…
  9. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 9
    2014 Reserve Summary Permian Year-End Reserves1 350 300 297 250 200 MMBOE 150 100 50 25% Oil 47% 0 NGL YE-11 YE-12 YE-13 YE-14 Natural Gas 28% Developed Undeveloped 1 Based on YE-2014 2-stream…
  10. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 10
    10,000 Lateral Type Curves Upper Wolfcamp Middle Wolfcamp 10,000 10,000 1,000 1,000 BOE/D BOE/D 100 100 10 10 Normalized Production1 Type Curve Normalized Production1 Type Curve 1 1 0 500 1,000 1,500 0 500 1,000…
  11. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 11
    Earth Model Objectives Standard Wellbore 1 Select Landing Point 2 3 4 6 2 Geosteering (stay in zone) 3 Frac Design 5 & Spacing 4 Frac 1 Barrier 5 Lateral Length 6 Earth Model potential to optimize development &…
  12. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 12
    Contrasting Upper Wolfcamp Lookback Examples Above Type Curve Below Type Curve Projected 90-day Cumulative Oil: 47,000 BO Projected 90-day Cumulative Oil: 24,636 BO 7,741 Lateral Length Actual 7,257 Lateral Length 90-day Percent…
  13. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 13
    Potential Upper Wolfcamp Economic Uplift Implications 7,500 Upper Wolfcamp Multi-Well Pad Type Curve 50% 40% Earth Model demonstrates increases in Earth Model Potential 90-day cumulative oil production ROR % 30% Upper…
  14. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 14
    Contiguous Acreage Enables Efficient Development Regan North development program Example of a development ready corridor LPI leasehold containing at least 450 future locations with an 98% average working interest1 1 As of…
  15. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 15
    Refining the Manufacturing Process: Multi-Well Pads Stacked Lateral Multi-Well Pads Horizontal Wells on Multi-Well Pads Four-stacked Three-stacked Two-stacked 2013 13 of pads 2 11 16 completed 2014 56 73 wells total1 2015 4 to…
  16. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 16
    Multi-Well Pad Savings 500,000 450,000 400,000 Completion 350,000 Savings per well 300,000 250,000 200,000 150,000 Drilling 100,000 50,000 - 2-Well Pad 4-Well Pad Rig moves Location Drill pipe handling Frac…
  17. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 17
    Growing Production with Greater Efficiencies Delineation Development Testing Development Transition to Single-Well Pads Multi-Well Pads Multi-Well Pads 50 45 40 35 30 MBOE/D 25 20 15 10 5 0 1Q-11…
  18. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 18
    Drilling & Completion: Service Cost Reductions D&C AFE Components Rentals Cement 5% 3% Drilling Rig Completion 10% Services 34% 15% - 20% cost reductions to date D&C Fluids from service costs 13% D&C Tangibles Other +…
  19. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 19
    Improved Drilling Efficiencies Cline Best Composite Well 0 1,000 2013 Composite well goals 2,000 Continuous improvement 3,000 2014 Identification of best practices 4,000 2015 Implementation of best practices 5,000 6,000…
  20. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 20
    Reduced Well Costs (7,500 Laterals) 2013 2015 Cline Lower Wolfcamp Middle Wolfcamp Upper Wolfcamp 21
  21. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 21
    Potential to Enhance Returns 2013 UWC 2015 UWC Lateral Length +10% on EUR Pad Drilling -10% D&C Lateral Length 7,500' 10,000' 10,000' 10,000' 10,000' EUR 758 1,110 1221 1,110 1,110 D&C (MM) 7.8 7.3 7.3 6.9 6.21 Crude Price 90.00…
  22. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 22
    Production Corridor Implementation: Reagan North Oil Takeaway Pipeline Oil Gathering Station Plains to Midland Oil Gathering Line Gas Lift Compression Facility Oil Takeaway Pipeline Medallion to Colorado City Gas…
  23. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 23
    Reagan North Corridor Per well estimated benefits of corridor investment (capital savings, LOE savings and price uplift) Natural gas for rig fuel, displaces higher cost diesel 37,500 Approximately 40% total investment pays out…
  24. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 24
    Medallion Crude Oil System Overview Medallion facilities Wolfcamp Connector: 3rd-party dedications 100% Active: 60 miles of 12 LPI leasehold Laredo Acreage Capacity: 140,000 BOPD Active October 2014 Medallion pipelines lateral…
  25. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 25
    Medallion 2015 Forecast Total Projected Volumes Cumulative Estimated Net Cash Flow to LMS 80,000 14 70,000 12 Cumulative Cash Flow (MM) 60,000 10 50,000 8 BOPD 40,000 6 30,000 4 20,000 10,000 2 0 0 1Q 2015 2Q…
  26. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 26
    Increased Financial Flexibility Borrowing Base Decreased total debt 675 MM 1,200 Reduced annual interest payment 40 MM 1,000 Extended first maturity to seven years 800 MM 600 Reduced weighted-average cost of long-term 400…
  27. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 27
    2015 Capital Program Bringing capital in balance to cash flows 50% reduction in capital budget 80% of capital focused on drill & complete costs Drill & complete Additional service cost savings could Facilities reduce outspend…
  28. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 28
    Self-Fund a Growing Percent of Capital Expenditures 90% 80% 70% % of Capital Self-funded1 60% 50% 40% 30% 20% 10% 0% 2012 2013 2014 2015P Laredo remains committed to self-funding a growing percent of our capital…
  29. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 29
    2015 Estimated Production Growth 45 40 35 30 MBOE/D 25 20 15 10 5 0 2011 2012 2013 2014 2015P Avg. Daily Production1 Estimated Avg. Daily Production2 1 Quarterly production numbers prior to 2014 have been…
  30. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 30
    Cash Flow Underpinned With Hedges Oil Natural Gas/NGL 25,000 140,000 80.99 Floor 120,000 20,000 100,000 3.00 15,000 Floor 80,000 MMBtu/D 81.84 BO/D Floor 3.00 10,000 60,000 Floor 77.22 Floor 40,000 5,000…
  31. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 31
    Flexibility in Face of Commodity Price Decline Laredo took immediate and decisive action to structure the Company for a low-price environment 105 95 85 Aligning cash flows and capital expenditures LPI Hedge Floor: 81/Bbl 75…
  32. IPAA OGIS NEW YORK – Laredo Petroleum Inc. – slide 32
    Laredo has . . . Strong Board and management team with highly experienced employee base High-quality, contiguous acreage across its large leasehold Deep inventory of data-supported locations in stacked zones Growing and valuable…

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