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November 2015 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Nov 17, 2015 · 33 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. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation November 2015 1
  2. November 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 Well positioned financially with strong liquidity and hedge positions and no term debt maturities…
  3. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    Financial Flexibility to Enhance Value to Stakeholders Borrowing Base Operating approximately within cash flow 1,200 during the second half of 20151 1,000 Liquidity of 941 million2 800 Redetermination of senior secured credit…
  4. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    Peer Leading Oil Hedge Position Oil Production Hedged1 120% 80.99 Floor 100% % of Estimated Oil Production Hedged 80% 70.84 Floor 60% 40% 20% 2 0% 4Q-2015 2016 LPI Midland Peer Avg.2 1 Simmons research…
  5. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    Benefits of Hedging Program Hedging Benefit per Barrel of Oil 35 30 Uplift per Barrel of Oil Sold1 25 20 15 10 5 0 4Q-2015 2016 LPI Midland Peer Avg. 2 Laredos hedging program produced more than 175 million of…
  6. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    High-Quality Contiguous Acreage 160,813 gross/138,289 net acres1 75% of acreage supports laterals of 7,500 or longer 33% of acreage supports 10,000 laterals Facilitates centralized infrastructure in production corridors that…
  7. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    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…
  8. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    10,000 Laterals Increase Capital Efficiency EURs for 10,000 laterals are 30% higher than 7,500 laterals for a 15% capital expenditure increase1 1,000 12 893 900 Well Cost per Stimulated Foot (/Ft) 790 790 10 800 9.2…
  9. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Contiguous Acreage Enables Efficient Development Centralization of infrastructure provides benefits of 1.2 MM per well Production corridors can accommodate approximately 500 Upper and Middle Wolfcamp drilling locations Completion…
  10. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    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…
  11. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    Production Corridors Enable Multi-Well Pad Drilling Multi-well pads reduce capital expenditures by 400,000 per well A four-well completion requires1: 1,000,000 barrels of water in two weeks Takeaway capacity for 82,500 BOE per…
  12. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    Lease Operating Expenses (LOE) Trending Lower Production corridors facilitate lower unit LOE as more wells are drilled along corridors 35 8.00 30 7.50 25 7.00 LOE (/BOE) LOE ( MM) 20 6.50 15 6.00 10 5.50 5…
  13. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    Earth Model Objectives: Select, Steer and Space Landing, geosteering & staying in- zone fundamentally linked to highest 90-day cumulative oil Standard production Wellbore Select Landing Point 1 Geosteering 3 (stay in zone)…
  14. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    3D Attribution Analysis Proving Successful Fracturing Fluid / Stress Lithology Brittleness 0 30M 60M Storage 90-Day Cumulative Oil (BO) Earth Model has potential to optimize development & increase value 15
  15. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    Earth Model Enhancing Oil Production 90-day Cumulative Oil Production vs. Oil Type Curve 50,000 46,714 BO 45,000 20% increase in oil volumes 40,000 38,405 BO 35,000 30,000 Barrels of Oil 25,000 20,000 15,000…
  16. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    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…
  17. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    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 Reagan North corridor LPI leasehold UWC Hz MWC Hz…
  18. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    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 Laredo Midstream Services…
  19. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    Medallion 2015 Forecast Delivered Volumes Net Cash Flow to LPI (quarterly, annualized) 80,000 16 70,000 14 60,000 12 Net Cash Flow ( MM) Volumes (BOPD) 50,000 10 40,000 8 30,000 6 20,000 4 10,000 2 0 0 1Q15…
  20. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    Laredo Petroleum Investment Opportunity Experienced management team Strong liquidity and hedge positions Contiguous acreage base in an outstanding basin Production corridor investments driving lower costs Medallion pipeline…
  21. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    Appendix
  22. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    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…
  23. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    Regional Cross-Section 1 1 2 3 4 5 6 7 8 9 10 North South 2 3 Upper Spraberry 4 5 6 Lower 7 Spraberry 8 UWC 9 MWC 10 10 MILES LWC Canyon Flattened on the Middle Wolfcamp 500 Cline Strawn - GAMMA RAY ABW -…
  24. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    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…
  25. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    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…
  26. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    Reagan North Corridor Benefits 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…
  27. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    Upper & Middle Wolfcamp 7,500 Type Curve Upper Wolfcamp 1,000 EUR: 850 MBOE (45% oil) 180-day cumulative: 91 MBOE (60% oil) BOE/D 100 70 UWC wells operated by LPI included in 7,500 type curve normalized production…
  28. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 28
    Lower Wolfcamp & Cline 7,500 Type Curve Lower Wolfcamp 1,000 EUR: 700 MBOE (45% oil) 180-day cumulative: 80 MBOE (55% oil) BOE/D 100 26 LWC wells operated by LPI included in 7,500 type curve normalized production Normalized…
  29. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 29
    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…
  30. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 30
    Oil Hedges Open Positions As of September 30, 20151 4Q-2015 2016 2017 Total 2 OIL Puts: Hedged volume (Bbls) 114,000 1,296,000 - 1,410,000 Weighted average price (/Bbl) 75.00 45.00 - 47.43 Swaps: Hedged volume (Bbls) 168,000…
  31. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 31
    Natural Gas Hedges Open Positions As of September 30, 20151 4Q-2015 2016 2017 Total 2 NATURAL GAS Collars: Hedged volume (MMBtu) 7,192,000 18,666,000 5,475,000 31,333,000 Weighted average floor price (/MMBtu) 3.00 3.00 3.00 3.00…
  32. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 32
    2015 Guidance 4Q-2015 FY-2015 Production (MMBOE) 3.6 3.8 16.2 16.4 Crude oil % of production 45% 46% Natural gas liquids % of production 27% 26% Natural gas % of production 28% 28% Price Realizations (pre-hedge): Crude oil (%…
  33. November 2015 Corporate Presentation – Laredo Petroleum Inc. – slide 33
    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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