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December 2015 Investor Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Dec 9, 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. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation December 2015
  2. December 2015 Investor 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 and positioned the Company to weather a challenging price environment Took immediate action to reduce…
  3. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 3
    Maintaining Production and Managing Capital Average Daily Production1,2,3 Capital Investment2,3 50 1,400 45 1,200 Average Daily Production (MBOE/D) 40 Capital Investment (MM) 35 1,000 30 800 25 600 20 15 400 10…
  4. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 4
    Financial Flexibility to Enhance Value to Stakeholders Borrowing Base3 Operating approximately within cash flow 1,200 during the second half of 20151 1,000 Liquidity of 915 million2 800 MM Redetermination of senior secured…
  5. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 5
    Peer-Leading Oil Hedge Position Oil Production Hedged1 120% 80.99 70.84 Oil Production Hedged 100% Floor Floor % of Estimated 80% 60% 77.22 40% Floor 20% 0% 4Q-2015 2016 2017 LPI Midland Peer Avg. 2 Hedging…
  6. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 6
    Enhancing Value Regardless of Price Environment 10,000 laterals enhance rates of return Contiguous acreage base enables production corridors that drive lower capital and operational costs Early adoption of multi-well pad drilling…
  7. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 7
    Contiguous Acreage Drives Efficiencies 160,813 gross/138,289 net acres1 33% of acreage supports 10,000 laterals 75% of acreage supports laterals of 7,500 or longer Facilitates centralized infrastructure in production corridors…
  8. December 2015 Investor 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 9.2 754…
  9. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 9
    Production Corridors Lower Capital and Operational Costs Centralization of infrastructure provides benefits of 1.2 MM per well Production corridors can accommodate approximately 500 Upper and Middle Wolfcamp drilling locations…
  10. December 2015 Investor 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. December 2015 Investor 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. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 12
    Reducing Lease Operating Expense (LOE) Production corridors facilitate lower unit LOE as more wells are drilled along corridors 35 Actuals Guidance 30 25 LOE (MM) 20 15 10 5 0 1Q15 2Q15 3Q15 4Q15E LOE (MM)…
  13. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 13
    Enhancing Well Returns1 60% 52% Well Returns (% Rate of Return) 50% 40% 40% 33% 30% 26% 19% 20% 15% 9% 10% 7% 0% 30 40 50 60 Crude Oil (/Bbl) Middle Wolfcamp Upper Wolfcamp Capital efficiency gains from drilling…
  14. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 14
    Capitalizing on Value Drivers 11-well project utilizing multi-well pads on production corridors, long laterals and the Earth Model to enhance returns Completion operations Multi-well pads currently underway with flowback expected…
  15. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 15
    Optimizing Development with the Earth Model Objective of the Earth Model is to facilitate the landing and steering of the wellbore and optimize the Standard completion to maximize oil production Wellbore Select Landing Point…
  16. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 16
    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 17
  17. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 17
    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…
  18. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 18
    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…
  19. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 19
    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…
  20. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 20
    Medallion 2015 Forecast Delivered Volumes Third-party volume growth driven by 80,000 continued expansions of the pipeline 70,000 system and the optionality provided by the various delivery points 60,000 Volumes (BOPD)…
  21. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 21
    Laredo Petroleum Investment Opportunity Strong liquidity and hedge positions Contiguous acreage base in an outstanding basin Production corridor investments driving lower costs Medallion pipeline system is premier pipeline in…
  22. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 22
    Appendix
  23. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 23
    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…
  24. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 24
    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 -…
  25. December 2015 Investor Presentation – Laredo Petroleum Inc. – slide 25
    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…
  26. December 2015 Investor 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. December 2015 Investor 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. December 2015 Investor 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. December 2015 Investor 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. December 2015 Investor 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. December 2015 Investor 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. December 2015 Investor 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. December 2015 Investor 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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