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August 2015 Investor Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Aug 10, 2015 · 42 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. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation August 2015 1
  2. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 2
    High-Quality Contiguous Acreage 179,713 Gross/149,921 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 95% average WI in…
  3. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 3
    Divestiture of Non-Strategic Properties Recently announced agreement to sell non-strategic properties Expected to close September 2015 5,882 net acres Primarily non-operated Sales proceeds of 65 million1 Proceeds utilized to…
  4. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 4
    2014 Reserve Summary Permian Year-End Reserves1 350 300 250 200 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 proved…
  5. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 5
    2015 Estimated Production Growth 50 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…
  6. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 6
    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…
  7. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 7
    4,500 gross ft of prospective zones Developing to Maximize NPV cline spraberry upper wolfcamp middle wolfcamp lower wolfcamp canyon penn cline cline shale strawn fusselman Laredo is focused on developing the entire resource and…
  8. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 8
    Efficient Development of the Entire Resource Stacked Lateral Multi-Well Pads Horizontal Wells on Multi-Well Pads Four-stacked Three-stacked Two-stacked 2013 13 of pads 2 11 23 completed 2014 56 87 wells total1 2015 18…
  9. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 9
    Best Composite Well: Cline Example 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…
  10. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 10
    Substantial Reduction in Drill Times (Cline Example) Days vs. Depth 0 2013 2014 2015 5,000 = Average = Best Composite Depth (feet) 30% Reduction 10,000 25% Reduction 15,000 +900 MD 32 days 45.5 days 24 days 32…
  11. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 11
    Well Cost Evolution (7,500 Laterals) 2013 2015 Cline Lower Wolfcamp Middle Wolfcamp Upper Wolfcamp 12
  12. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 12
    Contiguous Acreage Enables Efficient Development Centralization of infrastructure provides benefits of 1.2 MM per well A four-well completion requires1: 1,000,000 barrels of water in two weeks Takeaway capacity for 82,500 BOE…
  13. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 13
    Infrastructure Integrated with Complete Development Plan Oil Takeaway Pipeline Oil Gathering Station Plains to Midland Oil Gathering Line Gas Lift Compression Facility Oil Takeaway Pipeline Medallion to Colorado City…
  14. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 14
    Production Corridor Status 2 Lacy Creek Corridor 1 2 Crude Gathering: JE Cox/Blanco Corridor Under review Crude Gathering: Water: In service Under review Water: Gas: In service and connected to water Low-pressure gas gathering…
  15. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 15
    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…
  16. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 16
    Lease Operating Expenses (LOE) Realizing LOE Annualized Savings Water: Expanding water management infrastructure PUMPER WELL WORK 9% Power: Replacing generators with the grid in new areas (WOE) SUPERVISION Compression: Well pad…
  17. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 17
    Enhancing Well Returns1,2 50% 40% 30% Returns 20% 10% 0% 2013 Upper Wolfcamp 2015 UWC 7,500' 2015 UWC 10,000' 2015 UWC 10,000' 2015 UWC 10,000' (Pad) (Pad, -10% D&C) Capital efficiency gains from drilling…
  18. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 18
    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 &…
  19. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 19
    3D Production Attribute Fluid / Stress Fracturing Brittleness Lithology Storage 0 30K 60K 90-day Cumulative Oil (BO) Landing, geosteering & staying in-zone fundamentally linked to highest 90-day cumulative oil…
  20. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 20
    Earth Model Economic Uplift Implications 7,500 Upper Wolfcamp Multi-Well Pad Type Curve 50% Anticipate that the Earth Model will be utilized to select the landing point 40% and geosteer for 90% of 2015 Earth Model Potential…
  21. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 21
    Colorado City Hub Enhanced Liquidity Colorado City is an important trading hub for Permian crude oil Over 1.7 million BOPD capacity Avoids the congestion between Midland and Colorado City Provides access to both the Midwest and US…
  22. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 22
    Medallion Crude Oil System Overview Wolfcamp Connector: 60 miles of 12 Capacity: 140,000 BOPD Active October 2014 Reagan Extension: 53 miles of 4 10 Capacity: up to 90,000 BOPD Active October 2014 Midkiff Lateral: 95 miles of…
  23. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 23
    Medallion 2015 Forecast Projected Volumes Cumulative Estimated Net Cash Flow to LPI 120,000 12,000,000 100,000 10,000,000 Cumulative Cash Flow 80,000 8,000,000 BOPD 60,000 6,000,000 40,000 4,000,000 20,000…
  24. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 24
    Financial Flexibility to Enhance Value to Stakeholders Borrowing Base Decreased total debt 675 MM1 1,200 Reduced annual interest payment 40 MM 1,000 Extended first maturity to seven years 800 MM 600 Reduced weighted-average…
  25. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 25
    Cash Flow Underpinned With Hedges Oil Natural Gas/NGL 25,000 90,000 3.00 80.99 80,000 Floor Floor 20,000 70,000 77.25 60,000 Floor 3.00 15,000 Floor MMBtu/D 50,000 BO/D 40,000 10,000 77.22 Floor 30,000 3.00…
  26. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 26
    Peer Leading Hedging Program Hedging Benefit per Barrel of Oil 35 30 Uplift per Barrel of Oil Sold1 25 20 15 10 5 0 2H-2015 2016 LPI Peer Avg. Laredos hedging program produced approximately 110 million of cash…
  27. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 27
    2015 Guidance 3Q-2015 4Q-2015 FY-2015 Production (MMBOE) 3.9 4.1 3.7 3.9 16.1 16.5 Crude oil % of production 46% 46% 47% Natural gas liquids % of production 26% 26% 25% Natural gas % of production 28% 28% 28% Price Realizations…
  28. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 28
    Appendix
  29. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 29
    Building an 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…
  30. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 30
    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 -…
  31. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 31
    Land Position Chronology EXPLORATION DELINEATION DEVELOPMENT 2008 2010 2012 2015 Howard Howard Howard Howard Glasscock Glasscock Glasscock Glasscock Sterling Sterling Sterling Sterling Reagan LPI leasehold Irion Irion…
  32. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 32
    Wolfcamp Inventory1 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…
  33. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 33
    Cline Inventory1 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…
  34. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 34
    Canyon Inventory1 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…
  35. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 35
    Upper Wolfcamp 7,500 Type Curve 200,000 EUR: 850 MBOE (45% oil) Cumulative Production (BOE) 180-day cumulative: 91 MBOE (60% oil) 160,000 68 UWC wells operated by LPI included in 120,000 7,500 type curve normalized…
  36. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 36
    Middle Wolfcamp 7,500 Type Curve 200,000 EUR: 750 MBOE (50% oil) Cumulative Production (BOE) 180-day cumulative: 80 MBOE (61% oil) 160,000 27 MWC wells operated by LPI included in 120,000 7,500 type curve normalized…
  37. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 37
    Lower Wolfcamp 7,500 Type Curve 200,000 EUR: 700 MBOE (45% oil) Cumulative Production (BOE) 180-day cumulative: 80 MBOE (55% oil) 160,000 26 LWC wells operated by LPI included in 120,000 7,500 type curve normalized…
  38. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 38
    Cline 7,500 Type Curve 200,000 EUR: 725 MBOE (50% oil) Cumulative Production (BOE) 180-day cumulative: 96 MBOE (55% oil) 160,000 16 Cline wells operated by LPI included in 120,000 7,500 type curve normalized production PUDs…
  39. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 39
    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 1,500…
  40. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 40
    Oil Hedges Open Positions As of June 30, 2015 1 2H-2015 2016 2017 Total 2 OIL Puts: Hedged volume (Bbls) 228,000 - - 228,000 Weighted average price (/Bbl) 75.00 - - 75.00 Swaps: Hedged volume (Bbls) 336,000 1,573,800 -…
  41. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 41
    Natural Gas Hedges Open Positions As of June 30, 2015 (1) 2H-2015 2016 2017 Total (2) NATURAL GAS Collars: Hedged volume (MMBtu) 14,384,000 18,666,000 5,475,000 38,525,000 Weighted average floor price (/MMBtu) 3.00 3.00 3.00 3.00…
  42. August 2015 Investor Presentation – Laredo Petroleum Inc. – slide 42
    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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