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Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Feb 23, 2016 · 27 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. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 1
    Corporate Presentation February 2016
  2. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 2
    Improving Laredo Regardless of Price Environment Earth Model and enhanced completions drive well performance 2016 drilling program focuses on highest rate of return wells, capitalizing on Laredos contiguous acreage base and…
  3. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 3
    Contiguous Acreage Drives Efficiencies 152,423 gross/131,763 net acres1 1,100 locations capable of generating at least 12% rate of return in current price environment 44% of acreage supports 10,000 laterals 93% of acreage supports…
  4. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 4
    Managing Capital 1,600 1,400 1,398 1,200 Capital Investment1 ( MM) 1,000 800 737 600 631 562 562 400 345 200 0 2011 2012 2013 2014 2015 2016E Reducing capital 39% YoY enables the Company to self-fund a larger…
  5. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 5
    Financial Flexibility Benefits Stakeholder Value Borrowing Base ( MM) 800+ million of liquidity1 1,200 1,000 950 million of notes callable at 800 Laredos option in 2017 600 400 Borrowing Base does not include LPIs 200 49%…
  6. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 6
    FY-16 Budget Expectations Drilling 36 - 38 Hz Wells 345 MM FY-16E Capital Budget 35 95% targeting the UWC & MWC 65% 10,000 laterals 17 96% average working interest 13 80% on multi-well pads 55% on existing production corridors…
  7. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 7
    Maintaining Production 50 41.8 - 42.9 MBOE/d 40 4Q-15 Average Daily Production1,2 (MBOE/d) Exit Rate 30 20 10 0 3 2011 2012 2013 2014 2015 FY16E Expecting 6% exit-to-exit production growth in 2016 1…
  8. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 8
    Peer-Leading Oil Hedge Position1 Oil Production Hedged 120% 280 MM of mark-to-market value, as of 1/31/16 Oil Production Hedged 100% 70.84 % of Estimated Floor 80% 60% 77.22 40% Floor 20% 0% 2016 2017 Hedging…
  9. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 9
    Further Improved Drilling and Completions Efficiencies Hz Drilling Performance Hz Completions Performance 900 5.5 800 Average Frac Stages per Day Average Drilling Feet per Day 700 5.0 600 4.5 500 400 4.0 300 200…
  10. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 10
    Further Improved Drilling and Completions Capital Savings UWC/MWC Multi-Well Pad D&C Capital 8 7,500 Lateral 10,000 Lateral 7 D&C Capital Per Well ( MM) 6.8 6 5.9 5.9 5.2 10% 5 11% 4 53% 49% 3 2 1 40% 37% 0 1 1…
  11. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 11
    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…
  12. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 12
    Enhanced Completions Benefit 500 Actual, 130% of Oil Type Curve 400 Cumulative Oil Production (MBO) Earth Model estimate, 115% of Oil Type Curve Oil Type Curve 300 200 100 0 0 30 60 90 120 150 180 Producing…
  13. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 13
    Enhancing Well Returns1 60% Well Returns (% Rate of Return) 58% 50% 39% 40% 30% 30% 23% 20% 15% 12% 10% 0% 35 45 55 Crude Oil (/Bbl) MWC UWC Efficiency gains and cost savings generate positive returns in this…
  14. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 14
    Rig Cadence Drives Oil Percentage Number of Gross Hz Completions per Quarter vs. % Oil Production 30 60% Number of Gross Hz Completions per Quarter 55% 20 % Oil Production 50% 48% 10 45% 0 40% 1Q14 2Q14 3Q14 4Q14…
  15. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 15
    PUD Booking Approach Laredo has changed its approach to booking PUD locations in our YE-15 SEC reserve report to maximize optionality and flexibility 1,100 identified inventory locations capable of generating a ROR higher than 12%…
  16. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 16
    YE-15 Total Proved Reserves by Product YE-15 Total Proved Reserves YE-15 Total Proved Reserves Well Count % Oil PD (Hz) 235 42% PD (Vt) 471 36% 20% 80% Total PD 706 41% PUD (Hz) 38 46% PUD (Vt) 0 - Total PUD 38 46% Total Proved…
  17. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 17
    Continuing to Diligently Cut Cash Costs 20 18 17.01 16 14.07 14 13.52 12.15 12.26 Cash Costs (/BOE) 12 10 8 6 4 2 0 FY14 1 1Q15 2Q15 3Q15 4Q15 LOE Cash G&A Prod & ad val tax Midstream Demonstrable track…
  18. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 18
    Production Corridors Lower Capital and Operational Costs 2015 Savings- Actual 2016 Savings-Estimated LMS Service ( MM) ( MM) Crude Gathering 8.1 8.9 Gas Gathering Flow Assurance Flow Assurance Centralized Gas Lift 1.1 1.6 Frac Water 1.0…
  19. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 19
    Medallion Crude Oil System1 500 miles with 290,000 net acres dedicated to system 2 million acres either under AMI or supporting firm commitments Total delivery point capacity expected to exceed 500,000 BOPD Medallion pipelines…
  20. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 20
    Appendix
  21. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 21
    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…
  22. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 22
    Upper Wolfcamp Type Curves 10,000 Lateral 1,000 EUR: 1,110 MBOE (45% oil) BOE/D 100 180-day cumulative: 118 MBOE (61% oil) 365-day cumulative: 187 MBOE (58% oil) 10 Months Normalized production1 Type curve 1,000…
  23. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 23
    Middle Wolfcamp Type Curves 10,000 Lateral 1,000 EUR: 1,000 MBOE (51% oil) BOE/D 100 180-day cumulative: 104 MBOE (62% oil) 365-day cumulative: 165 MBOE (59% oil) 10 Normalized production1 Months Type curve 1,000…
  24. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 24
    Oil & Natural Gas Hedges Open Positions as of January 31, 20161 2016 2017 2018 Total OIL2 Puts: Hedged volume (Bbls) 1,296,000 1,296,000 Weighted average price (/Bbl) 45.00 45.00 Swaps: Hedged volume (Bbls) 1,573,800 1,573,800…
  25. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 25
    First-Quarter 2016 Guidance 1Q-2016 Production (MMBOE).... 3.7 - 4.0 Product % of total production: Crude oil... 48% Natural gas liquids.... 26% Natural gas.. 26% Price Realizations (pre-hedge): Crude oil (% of WTI)..... 80%…
  26. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 26
    2015 Actuals 1Q-15 2Q-15 3Q-15 4Q-15 FY-15 Production Production (3-Stream) BOE/D 47,487 46,532 44,820 40,368 44,782 % oil 51% 46% 45% 45% 47% Realized Pricing 3-Stream Prices Gas (/Mcf) 2.14 1.82 2.01 1.76 1.93 NGL…
  27. Credit Suisse 21st Annual Energy Summit – Laredo Petroleum Inc. – slide 27
    2014 Two-Stream to Three-Stream Conversions 1Q-14 2Q-14 3Q-14 4Q-14 FY-14 Production (2-Stream) Production BOE/D 27,041 28,653 32,970 39,722 32,134 % oil 58% 58% 59% 60% 59% Production (3-Stream) BOE/D 32,358 33,829 38,798…

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