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MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc.

Laredo Petroleum Inc. · May 6, 2015 · 38 slides

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Slides

  1. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 1
    Corporate Presentation May 2015 1
  2. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 2
    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…
  3. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 3
    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…
  4. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 4
    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…
  5. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 5
    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…
  6. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 6
    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 -…
  7. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 7
    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…
  8. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 8
    Wolfcamp Inventory Development Hz Commerciality Hz Commerciality Formation/Zone Ready Confirmed Not Confirmed Upper Wolfcamp 828 36 637 Middle Wolfcamp 807 36 721 Lower Wolfcamp 813 36 722 Total 2,448 108 2,080 Formation/Zone LPI…
  9. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 9
    Cline Inventory Development Hz Commerciality Hz Commerciality Formation/Zone Ready Confirmed Not Confirmed Cline 1,223 182 161 Formation/Zone LPI Operated Hz Wells Cline 52 LPI Hz Cline well Cline Development Ready Hz…
  10. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 10
    Canyon Inventory Development Hz Commerciality Hz Commerciality Formation/Zone Ready Confirmed Not Confirmed Canyon 311 593 686 Formation/Zone LPI Operated Hz wells Canyon 2 LPI Hz Canyon well Canyon Development Ready…
  11. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 11
    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…
  12. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 12
    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…
  13. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 13
    Upper Wolfcamp 7,500 Type Curve EUR: 850 MBOE (45% oil) 200,000 180 cumulative: 55 MBO (60% oil) 160,000 Cumulative Production 80 UWC wells 120,000 (BOE) 60 UWC wells operated by LPI included in 7,500 type curve…
  14. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 14
    Middle Wolfcamp 7,500 Type Curve EUR: 750 MBOE (50% oil) 200,000 180 cumulative: 49 MBO (61% oil) 160,000 Cumulative Production 28 MWC wells 120,000 26 MWC wells operated by LPI (BOE) included in 7,500 type curve…
  15. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 15
    Lower Wolfcamp 7,500 Type Curve EUR: 700 MBOE (45% oil) 200,000 180 cumulative: 44 MBO (55% oil) 160,000 Cumulative Production 20 LWC wells 120,000 20 LWC wells operated by LPI (BOE) included in 7,500 type curve…
  16. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 16
    Cline 7,500 Type Curve 200,000 EUR: 725 MBOE (50% oil) 180 cumulative: 52 MBO (55% oil) 160,000 Cumulative Production 50 Cline wells 120,000 12 Cline wells operated by LPI (BOE) included in 7,500 type curve 80,000…
  17. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 17
    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…
  18. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 18
    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…
  19. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 19
    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…
  20. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 20
    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…
  21. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 21
    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 +…
  22. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 22
    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…
  23. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 23
    Reduced Well Costs (7,500 Laterals) 2013 2015 Cline Lower Wolfcamp Middle Wolfcamp Upper Wolfcamp 24
  24. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 24
    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 &…
  25. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 25
    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…
  26. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 26
    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…
  27. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 27
    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…
  28. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 28
    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…
  29. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 29
    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…
  30. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 30
    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…
  31. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 31
    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…
  32. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 32
    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…
  33. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 33
    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…
  34. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 34
    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…
  35. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 35
    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…
  36. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 36
    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…
  37. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 37
    2015 Guidance 2Q-2015 FY-2015 Production (MMBOE) 4.0 - 4.2 15.6 - 16.0 Crude oil % of production 50% 50% Natural gas liquids % of production 25% 25% Natural gas % of production 25% 25% Price Realizations (pre-hedge): Crude oil…
  38. MAY 2015 CORPORATE PRESENTATION – Laredo Petroleum Inc. – slide 38
    Two-Stream to Three-Stream Conversions 1Q-14 2Q-14 3Q-14 4Q-14 FY-14 Production (2-Stream) BOE/D 27,041 28,653 32,970 39,722 32,134 Production % oil 58% 58% 59% 60% 59% Production (3-Stream) BOE/D 32,358 33,829 38,798 46,379…

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