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September 2015 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Sep 8, 2015 · 46 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. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation September 2015 1
  2. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 2
    Laredo Positioned for Any Environment Experienced management team has weathered commodity price drops of 50% or more five times Contiguous acreage base enables production corridors that drive lower capital and operational costs…
  3. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    High-Quality Contiguous Acreage 162,143 Gross/144,039 net acres1, 89% WI 4.3 billion barrels of resource potential on 7,700 identified locations2 3,200 operated Development Ready Hz locations with 90% average WI 95% average WI…
  4. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    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…
  5. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    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 1Based on YE-2014 2-stream proved…
  6. September 2015 Corporate 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. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    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…
  8. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    Reagan North Corridor 11-well Development Project Enhancing returns with multi-well pads on production corridors, long laterals and the Earth Model Multi-well pads Reagan North corridor LPI leasehold Laredo Acreage Regan…
  9. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Project Fully Utilizes Earth Model Earth Model utilized to select optimal landing points and geosteer wellbore to keep it in targeted, highest potential zone UWC and MWC zones targeted Future targets 10
  10. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    4,500 gross ft of prospective zones Developing to Maximize NPV Laredo is focused on developing the entire resource and maximizing operational efficiency by drilling stacked laterals on multi-well pads and concentrating…
  11. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    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…
  12. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    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…
  13. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    Well Cost Evolution (7,500 Laterals) 2013 2015 Cline Lower Wolfcamp Middle Wolfcamp Upper Wolfcamp 14
  14. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    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…
  15. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    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…
  16. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    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…
  17. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    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…
  18. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    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) Compression: Well pad compressors to…
  19. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    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% EUR) Capital efficiency gains from drilling…
  20. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    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 &…
  21. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    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…
  22. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    Earth Model Enhancing Oil Production 60-day Cumulative Oil Production vs. Oil Type Curve 40,000 35,000 30,000 25,000 Barrels of Oil 20,000 15,000 Earth Model enhanced oil 10,000 production by more than 6,700 BO…
  23. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    Earth Model Economic Uplift Implications 10,000 Upper Wolfcamp Multi-Well Pad Type Curve 60% Anticipate that the Earth Model will 50% be utilized to select the landing point and geosteer for 90% of 2015 Earth Model Potential…
  24. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    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…
  25. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    Medallion Crude Oil System Overview Medallion pipeline system now 460 miles with 290,000 net acres dedicated to system and 1.8 million acres either under AMI or supporting firm commitments on the pipeline Total system capacity will…
  26. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    Medallion 2015 Forecast Cumulative Estimated Net Cash Flow to LPI Projected Volumes (quarterly, annualized) 120,000 25,000,000 100,000 20,000,000 Cumulative Cash Flow 80,000 15,000,000 BOPD 60,000 10,000,000…
  27. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    Financial Flexibility to Enhance Value to Stakeholders Borrowing Base Operating within cash flow during the 1,200 second half of 20151 1,000 Liquidity of 933 million 800 Expect fall redetermination of senior MM 600 secured…
  28. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 28
    Peer Leading Oil Hedge Position Oil Production Hedged 1 100% 80.99 Floor % of Estimated Oil Production Hedged 80% 77.25 Floor 60% 40% 20% 0% 2H-2015 2016 LPI Peers 2 1 BMO research estimates of production…
  29. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 29
    Benefits of 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 Midland Peer Avg.2 Laredos hedging program produced approximately 110 million…
  30. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 30
    Laredo Petroleum Investment Opportunity Contiguous acreage base in an outstanding basin Production corridor investments driving lower costs Medallion pipeline system is premier pipeline in Midland basin Earth Model initial…
  31. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 31
    Appendix
  32. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 32
    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…
  33. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 33
    Regional Cross-Section 1 2 3 4 5 6 7 8 9 10 1 North South 2 3 Upper Spraberry 4 5 Lower 6 Spraberry 7 8 UWC 9 MWC 10 10 MILES LWC Canyon Flattened on the Middle Wolfcamp 500 Cline Strawn - GAMMA RAY ABW -…
  34. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 34
    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…
  35. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 35
    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…
  36. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 36
    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…
  37. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 37
    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…
  38. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 38
    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…
  39. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 39
    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…
  40. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 40
    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…
  41. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 41
    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…
  42. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 42
    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…
  43. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 43
    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 -…
  44. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 44
    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…
  45. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 45
    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…
  46. September 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 46
    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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