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Investor Meeting – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Jun 13, 2016 · 91 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. Investor Meeting – Laredo Petroleum Inc. – slide 1
    Investor Meeting June 13, 2016
  2. Investor Meeting – Laredo Petroleum Inc. – slide 2
    Introduction Ron Hagood Director, Investor Relations 3
  3. Investor Meeting – Laredo Petroleum Inc. – slide 3
    Laredo Today Randy Foutch Chairman & CEO 4
  4. Investor Meeting – Laredo Petroleum Inc. – slide 4
    Focus on Key Drivers That Impact Well Returns Acreage Position Improved well performance Earth Model Optimized Completions Infrastructure Improved efficiencies Infrastructure Focus of Capital Drilling Operating Activity Acreage…
  5. Investor Meeting – Laredo Petroleum Inc. – slide 5
    Focus on Value Creation Through EUR Improvements NPV Sensitivity to EUR 10,000' UWC; 6.3 MM D&C 100% NPV Increase NPV-10 EUR 30% EUR Gain Recent results support increased EURs Note: Analysis based on 6/3/16 strip pricing…
  6. Investor Meeting – Laredo Petroleum Inc. – slide 6
    Focus on Value Creation Through D&C Savings Rate of Return Sensitivity to D&C Cost 10,000' UWC 90% 80% 70% ROR-Percent 60% 50% . 40% 30% 20% 10% 0% 6.00 5.75 5.50 5.25 5.00 D&C Cost (MM) 35/Bbl 45/Bbl 55/Bbl Current…
  7. Investor Meeting – Laredo Petroleum Inc. – slide 7
    Earth Model and Optimized Completions Benefits 1,600 32 +32% vs Oil Type Curve 1,400 through Earth Model 28 Cumulative Oil Production (MBO) 10 - 20% Uplift from and optimized Optimized Completions3 1,200 completions 10 - 20%…
  8. Investor Meeting – Laredo Petroleum Inc. – slide 8
    Decreasing D&C Costs 1 D&C Capital Savings 9 7,500 Lateral 8.2 10,000 Lateral 8 7.0 1.4 7 6.9 D&C Capital Per Well ( MM) 1.1 6.1 1.0 6.3 6 0.9 0.8 5.4 5 0.8 4 6.8 3 5.9 5.9 5.3 5.4 4.6 2 1 0 2 2 YE-15 FY-16E…
  9. Investor Meeting – Laredo Petroleum Inc. – slide 9
    Production Corridor and Infrastructure Benefits1 Production Corridor & Infrastructure Benefits 149 MM infrastructure investment 30 to date 25 90 MM in production corridors 25 Short payout period on investment 20 that will…
  10. Investor Meeting – Laredo Petroleum Inc. – slide 10
    Peer-Leading Per Unit LOE 1Q-15 12 1Q-16 12 11 11 10 10 Peer Average 9 9 LOE (/BOE) LOE (/BOE) 8 8 7 7 Peer Average 6 6 5 5 4 4 LPI Peers Laredo outpaced peer groups LOE reduction by 16% since 1Q-15 1…
  11. Investor Meeting – Laredo Petroleum Inc. – slide 11
    Capitalizing on Contiguous Acreage Position Contiguous acreage position enables: 80% of acreage supporting 10,000 laterals Centralized infrastructure in multiple production corridors increasing capital and operational efficiencies…
  12. Investor Meeting – Laredo Petroleum Inc. – slide 12
    Near-Term Inventory Selection Process Near-term inventory selection criteria employed: 1. High working interest 2. Long laterals 3. Best Hz horizons from multiple zones 4. Earth Model technical analysis 5. Infrastructure investment…
  13. Investor Meeting – Laredo Petroleum Inc. – slide 13
    Not All Locations Are Created Equal Individual Well NPV-10 7 Continuous effort to focus on quality 6 locations, not quantity, to create 5 shareholder value 2.3 NPV-10 ( MM) 4 3 1.9 6.2 2 0.2 0.6 1 1.2 0 7,500'…
  14. Investor Meeting – Laredo Petroleum Inc. – slide 14
    Earth Model and Optimized Completions Improving Results % of Completed Lateral 30-Day Average IP Type Curve at Well Name Zone Length (Ft) (BOE) 30-Day1 SUGG-E-208-209-8SU UWC 7,304 1,041 144% SUGG-A-171-5SU UWC 9,939 1,034 109%…
  15. Investor Meeting – Laredo Petroleum Inc. – slide 15
    Prior Investments Driving Results Earth Model and optimized completions yielded 1Q-16 average well results of 30% higher than type curve 10,000 UWC and MWC drilling and completions costs have decreased an additional 600,000 since…
  16. Investor Meeting – Laredo Petroleum Inc. – slide 16
    Medallion-Midland Basin: The Premier Pipeline in the Permian Laredo benefits significantly from its 49% ownership in Medallion, the premier pipeline serving the most productive counties of the Midland Basin MedallionMidland…
  17. Investor Meeting – Laredo Petroleum Inc. – slide 17
    Summary Strategic investments yielding results Contiguous acreage enables efficiencies through longer laterals and multiple production corridors providing cost, pricing and capital benefits Earth Model and optimized completions…
  18. Investor Meeting – Laredo Petroleum Inc. – slide 18
    Earth Model James Courtier VP - Exploration & Geosciences Technology 19
  19. Investor Meeting – Laredo Petroleum Inc. – slide 19
    Creating Value with Data, Experience and Technology Actions Results Predicted Well Role of Interference Technology & Performance Optimized Completions Ranked Zones Integration Analysis Optimized Well Spacing Ranked Wells…
  20. Investor Meeting – Laredo Petroleum Inc. – slide 20
    Pre-Earth Model: Problem with Bivariate Statistics Bulk Modulus Poisson's Ratio 6-Month Cumulative Oil 6-Month Cumulative Oil R = 0.0021 R = 0.0015 Young's Modulus Brittleness 6-Month Cumulative Oil 6-Month Cumulative…
  21. Investor Meeting – Laredo Petroleum Inc. – slide 21
    Log-Based Landing-Point Selection: Standard Wellbore A B C D Standard Wellbore Landing Point Significance A Clay content B Original oil in-place C Stress D Brittleness Landing Point 1 Simplified Dipole Log Display…
  22. Investor Meeting – Laredo Petroleum Inc. – slide 22
    Earth Model-Based Wellbore Landing A B C D E Earth Model Wellbore Landing Point Significance A Clay content B Original oil in-place C Stress D Brittleness E Natural fracturing E Geomechanical attributes Simplified…
  23. Investor Meeting – Laredo Petroleum Inc. – slide 23
    Earth Model-Based Wellbore Landing Example Cumulative Oil Production1 16 Earth Model and Landing Cumulative Oil Per 1000' (Mbbl) 14 optimized Landing Point 2 12 completions Point 1 10 Landing 8 Point 1 6 Pre Earth Model…
  24. Investor Meeting – Laredo Petroleum Inc. – slide 24
    Earth Model-Based Wellbore Landing Landing Landing 100% Point 1 Points 2 & 3 90% Landing Point 1 Cumulative Probability ( or = ) 80% 70% Landing 60% Point 2 Landing 50% Point 3 40% 30% 20% 10% 0% Simplified…
  25. Investor Meeting – Laredo Petroleum Inc. – slide 25
    Earth Modeling Workflow 1 Develop & improve technical data sets 2 Multivariate statistical calibration 3 Create 3D production attribute 4 Perform lookback analysis 5 Highgrade EUR and NPV targets 6 Plan new wells and execute…
  26. Investor Meeting – Laredo Petroleum Inc. – slide 26
    Step 1: Develop & Improve Technical Data Sets Comprehensive core-to-log-to- seismic calibration 3,600 feet of core 589 petrophysical wells 131 dipole sonic logs 1,133 square miles of 3D seismic 47 wells with microseismic…
  27. Investor Meeting – Laredo Petroleum Inc. – slide 27
    Step 1: Develop & Improve Technical Data Sets 28
  28. Investor Meeting – Laredo Petroleum Inc. – slide 28
    Step 1: Takeaways 1 Develop & improve technical data sets Contiguous 3D seismic and attributes across 2 Multivariate statistical calibration 98% of our acreage 3 Create 3D production attribute Earth Model currently covers 80% of LPI 4…
  29. Investor Meeting – Laredo Petroleum Inc. – slide 29
    Step 2: Multivariate Statistical Calibration 1 2 3 4 Increasing Production Increasing Production Increasing Production Increasing Production Increasing Completion Length Increasing P-Impedence Increasing Fluid Volume…
  30. Investor Meeting – Laredo Petroleum Inc. – slide 30
    Step 2: Multivariate Statistical Calibration Cline-Canyon Model R2 0.760 Correlation Coeff 0.872 There is a point of diminishing return on the Predicted 180-day Oil addition of attributes 1.0 12 0.9 10 11 9 0.8 8 7 6…
  31. Investor Meeting – Laredo Petroleum Inc. – slide 31
    Step 2: Takeaways 1 Develop & improve technical data sets We have developed a reliable, multi-variate 2 Multivariate statistical calibration relationship to 6-month oil production 3 Create 3D production attribute Capability of analyzing…
  32. Investor Meeting – Laredo Petroleum Inc. – slide 32
    Step 3: Create 3D Production Attribute 33
  33. Investor Meeting – Laredo Petroleum Inc. – slide 33
    Step 3: Takeaways 1 Develop & improve technical data sets Contiguous Earth Model production attribute 2 Multivariate statistical calibration over 80% of our acreage 3 Create 3D production attribute 4 Perform lookback analysis Multiple…
  34. Investor Meeting – Laredo Petroleum Inc. – slide 34
    Step 4: Perform Lookback Analysis 250% 90-Day Cumulative Oil 225% 200% Predicted % of Type Curve 175% 150% 125% 100% 75% 50% 25% 0% 0% 25% 50% 75% 100% 125% 150% 175% 200% 225% 250% Actual % of Type Curve…
  35. Investor Meeting – Laredo Petroleum Inc. – slide 35
    Step 4: Takeaways 1 Develop & improve technical data sets Validate 3D production attribute by 2 Multivariate statistical calibration performing look-back analysis 3 Create 3D production attribute 4 Perform lookback analysis Ability to…
  36. Investor Meeting – Laredo Petroleum Inc. – slide 36
    Step 5: Highgrade EUR and NPV Targets 6-Month Oil vs. Oil EUR Increasing Cumulative 6-Month Oil /1,000 R = 0.7224 Increasing Oil EUR /1,000 Strong correlation between 6-month oil production and EUR demonstrates linkage and…
  37. Investor Meeting – Laredo Petroleum Inc. – slide 37
    Step 5: Highgrade EUR and NPV Targets LP-1 LP-2 LP-3 Primary Target: LP-3 LP-4 Scaled 90-Day Cum. Landing Point Oil Prediction % of Type Curve LP-1 56,146 111% Earth Model extraction drives LP-2 63,423 126% LP-3…
  38. Investor Meeting – Laredo Petroleum Inc. – slide 38
    Step 5: Takeaways 1 Develop & improve technical data sets Identification of highest productive 2 Multivariate statistical calibration targets at each location 3 Create 3D production attribute 4 Perform lookback analysis Evaluation…
  39. Investor Meeting – Laredo Petroleum Inc. – slide 39
    Step 6: Plan New Wells and Execute Operations Optimizing volume around wellbore Optimized trajectory to target best landing point 40
  40. Investor Meeting – Laredo Petroleum Inc. – slide 40
    Step 6: Takeaways 1 Develop & improve technical data sets Well planning based on 3D production 2 Multivariate statistical calibration attribute 3 Create 3D production attribute 4 Perform lookback analysis Targeting continuous…
  41. Investor Meeting – Laredo Petroleum Inc. – slide 41
    Step 7: Earth Model Completions Optimization Extensive frac modeling based on applied Earth Model to optimize completion length 42
  42. Investor Meeting – Laredo Petroleum Inc. – slide 42
    Step 7: Takeaways 1 Develop & improve technical data sets Wellbore placement impacts stimulated 2 Multivariate statistical calibration volume 3 Create 3D production attribute 4 Perform lookback analysis Improved production from…
  43. Investor Meeting – Laredo Petroleum Inc. – slide 43
    Focus on Value Creation Through EUR Improvements NPV Sensitivity to EUR 10,000' UWC; 6.3 MM D&C 100% NPV Increase NPV-10 EUR 30% EUR Gain Recent results support increased EURs Note: Analysis based on 6/3/16 strip pricing…
  44. Investor Meeting – Laredo Petroleum Inc. – slide 44
    Earth Model and Optimized Completions Benefits 1,600 32 +32% vs Oil Type Curve 1,400 through Earth Model 28 Cumulative Oil Production (MBO) 10 - 20% Uplift from and optimized Optimized Completions3 1,200 completions 10 - 20%…
  45. Investor Meeting – Laredo Petroleum Inc. – slide 45
    Earth Model & Completion Optimization Results UWC MWC Cum. Production (MBOE) Cum. Production (MBOE) 250 250 200 200 150 1.1 MMBOE 150 Type Curve 1.0 MMBOE 100 100 Type Curve 50 (11 Wells Avg. 1,595 /ft Sand) 50 (9 Wells…
  46. Investor Meeting – Laredo Petroleum Inc. – slide 46
    1Q-16 Well Results 250 UWC MWC Cum. Production (MBOE) 250 Cum. Production (MBOE) 200 200 150 1.1 MMBOE 150 Type Curve 1.0 MMBOE 100 100 Type Curve 50 7 Wells 50 1 Well 121% of Type Curve 217% of Type Curve 0 0 0 60…
  47. Investor Meeting – Laredo Petroleum Inc. – slide 47
    GTI Project In-Progress 20 MM high-profile, joint-industry project Project Initiatives Complete Laredos Project Contribution Pilot Hole Logs & Cores Horizontal DFITs Selected as operator Well Refracs (-seismic & tracers) Conducted…
  48. Investor Meeting – Laredo Petroleum Inc. – slide 48
    Drilling & Completions Karen Chandler Sr. Director - Operations 49
  49. Investor Meeting – Laredo Petroleum Inc. – slide 49
    Integration of Earth Model and Optimized Completions Creating differentiated value through seamless integration Reservoir Characterization & Earth Model Optimized Depletion Pattern Lateral Placement Completions Pressure…
  50. Investor Meeting – Laredo Petroleum Inc. – slide 50
    Optimized Completions: Proppant Placement & Complexity Increased proppant loading (/ft) Promoting fracture complexity 1,100 1,400 1,800 2,400 Cluster spacing 90 54 30 Optimized proppant placement Diversion techniques Hybrid designs…
  51. Investor Meeting – Laredo Petroleum Inc. – slide 51
    Optimized Completions: Real-Time Integration of Results Evaluating the Results Protecting the Formation / Completion Real-time microseismic Customized fluid packages Proppant and fluid tracers Optimized flowback techniques Cored thru…
  52. Investor Meeting – Laredo Petroleum Inc. – slide 52
    Drilling and Completions Efficiency Drivers Contiguous acreage position enables: Longer laterals Production corridors Multi-well development planning enables: Drilling efficiencies, capital savings and accelerated learning curve…
  53. Investor Meeting – Laredo Petroleum Inc. – slide 53
    Drilling & Completions Efficiencies Total Drilling Efficiency Average Drilling Days 1,000 30 Rig Accept to Rig Release (Ft/Day) Average Drilling Days Rig Accept to 900 25 800 Average Feet Drilled Rig Release (Days) 700…
  54. Investor Meeting – Laredo Petroleum Inc. – slide 54
    Drilling Cost Reductions 250 200 150 (/Ft) 100 50 0 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 35% reduction in average drilling cost while increasing average well length by 45% 55
  55. Investor Meeting – Laredo Petroleum Inc. – slide 55
    Completions Cost Reductions 800 700 600 500 (/Ft) 400 300 200 100 0 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 45% reduction in average completions cost while increasing average sand amount by 35% 56
  56. Investor Meeting – Laredo Petroleum Inc. – slide 56
    Longer Laterals Improve Capital Efficiency 750 720 Well Cost per Stimulated Lateral Foot 700 650 (/Ft)1 630 600 589 550 500 7,500' Lateral 10,000' Lateral 12,500' Lateral 80% of our contiguous acreage…
  57. Investor Meeting – Laredo Petroleum Inc. – slide 57
    Decreasing D&C Costs 1 D&C Capital Savings 9 7,500 Lateral 8.2 10,000 Lateral 8 7.0 1.4 7 6.9 D&C Capital Per Well ( MM) 1.1 6.1 1.0 6.3 6 0.9 0.8 5.4 5 0.8 4 6.8 3 5.9 5.9 5.3 5.4 4.6 2 1 0 2 2 YE-15 FY-16E…
  58. Investor Meeting – Laredo Petroleum Inc. – slide 58
    Focus on Value Creation Through D&C Savings ROR Sensitivity to D&C Cost 10,000' UWC 90% 80% 70% Rate of Return (%) 60% 50% . 40% 30% 20% 10% 0% 6.00 5.75 5.50 5.25 5.00 D&C Cost ( MM) 35/Bbl 45/Bbl 55/Bbl Current D&C…
  59. Investor Meeting – Laredo Petroleum Inc. – slide 59
    Intermission 60
  60. Investor Meeting – Laredo Petroleum Inc. – slide 60
    Infrastructure Investment Value Dan Schooley Sr. VP - Operations 61
  61. Investor Meeting – Laredo Petroleum Inc. – slide 61
    Laredo Midstream Services (LMS) LMS Intra-asset efficiencies Inter-asset EBITDA Cost savings generation Flow/operational assurance Firm-transport status Higher netback pricing Access to Gulf Coast pricing LPI Infrastructure…
  62. Investor Meeting – Laredo Petroleum Inc. – slide 62
    Production Corridors and Infrastructure Wholly-owned gathering, transportation, infrastructure and marketing subsidiary Crude gathering/transportation Water gathering, distribution & recycle Water Oil Gas Natural gas…
  63. Investor Meeting – Laredo Petroleum Inc. – slide 63
    Infrastructure Lowers Capital & Operational Costs 775 wells served by midstream assets 6.2 MM total realized benefits in 1Q-161 25 MM total estimated benefits for FY-16 Invested 149 MM in crude oil, water and natural gas…
  64. Investor Meeting – Laredo Petroleum Inc. – slide 64
    Crude Infrastructure 40 miles of crude gathering pipelines and two crude oil truck stations Crude gathering from lease is more financially and operationally efficient vs truck transportation 1Q-16 50% of crude oil gathered by…
  65. Investor Meeting – Laredo Petroleum Inc. – slide 65
    Reagan Truck Station Truck Offloading Tanks Crude Gathering Tanks Crude Gathering To Plains Pump Tanks Station To Medallion Pump & Truck Truck Station Offloading Tanks Reagan North Gathering LACT Units Truck Offload Incoming…
  66. Investor Meeting – Laredo Petroleum Inc. – slide 66
    Water Infrastructure Investments in water infrastructure provide: Efficiencies and cost savings for our drilling and completions operations Capability to perform multiple completions simultaneously 80 miles of water gathering…
  67. Investor Meeting – Laredo Petroleum Inc. – slide 67
    Water Treatment Plant Incoming 1 MM Bbl Produced Water Water Supply 0.3 MM Bbl 0.3 MM Bbl on Gathering Water Supply Water Supply Outgoing Recycled Water to Various Completions Water Produced Water Gathering Treatment…
  68. Investor Meeting – Laredo Petroleum Inc. – slide 68
    Produced Water to Water Treatment Plant 1 MM Bbl Water Supply 0.3 MM Bbl 0.3 MM Bbl Incoming Produced Water Supply Water Supply Water Water Treatment Plant Produced Water Gathering Water Treatment Plant Produced water to Water…
  69. Investor Meeting – Laredo Petroleum Inc. – slide 69
    Recycled Water Utilized for Completions 1 MM Bbl Water Supply 0.3 MM 0.3 MM Water Supply Water Supply Outgoing Recycled Water to Various Completions Water Treatment Plant Recycled Water Recycled water utilized for…
  70. Investor Meeting – Laredo Petroleum Inc. – slide 70
    Natural Gas Infrastructure 175 miles of natural gas gathering pipelines and four centralized gas lift stations Extensive infrastructure provides: Downstream sales-point optionality Less dependence on third-party…
  71. Investor Meeting – Laredo Petroleum Inc. – slide 71
    Centralized Gas Lift Primary Sales Secondary Sales Centralized gas lift vs individual well to Targa to Enlink compressors Gas Gathering 1Q-16 50% of LPIs total gas lift demand 760/month/well saved Gas Lift Distribution FY-16…
  72. Investor Meeting – Laredo Petroleum Inc. – slide 72
    Production Corridor and Infrastructure Benefits1 Production Corridor & Infrastructure Benefits 149 MM infrastructure investment 30 to date 25 90 MM in production 25 corridors 20 Short payout period on investment ( MM) that…
  73. Investor Meeting – Laredo Petroleum Inc. – slide 73
    Corridor Financial Benefits 1Q-16 Benefits 2016 Benefits LMS Service Actual ( MM) Estimated ( MM)1 LPI Financial Benefits Increased revenues Crude Gathering 2.2 10.3 & 3rd-party income Centralized Gas Lift 0.2 0.9 LOE savings…
  74. Investor Meeting – Laredo Petroleum Inc. – slide 74
    Corridors Provide Operating Cost Reductions 140 8 7.58 120 6.90 120 7 108 6.09 Total Net LOE ( MM) Per Unit LOE (/BOE) 6 5.83 100 97 4.88 5 80 4 60 3 40 2 20 1 0 0 FY-14 FY-15 FY-16E 1Q-15 2Q-15 3Q-15 4Q-15…
  75. Investor Meeting – Laredo Petroleum Inc. – slide 75
    Peer-Leading Per Unit LOE 1Q-15 12 1Q-16 12 11 11 10 10 Peer Average 9 9 LOE (/BOE) LOE (/BOE) 8 8 7 7 Peer Average 6 6 5 5 4 4 LPI Peers Laredo outpaced peer groups LOE reduction by 16% since 1Q-15 1…
  76. Investor Meeting – Laredo Petroleum Inc. – slide 76
    Medallion Dan Schooley Sr. VP - Operations 77
  77. Investor Meeting – Laredo Petroleum Inc. – slide 77
    Medallion-Midland Basin Crude Oil System 500 miles with 290,000 net acres dedicated to system 0.49/Bbl 2Q-16E cash flow margin net to LPI YE-16 estimated exit rate of 140,000 - 150,000 Bbl/d 2 MM acres either under AMI or…
  78. Investor Meeting – Laredo Petroleum Inc. – slide 78
    Medallion-Midland Basin: The Premier Pipeline in the Permian Laredo benefits significantly from its 49% ownership in Medallion, the premier pipeline serving the most productive counties of the Midland Basin MedallionMidland…
  79. Investor Meeting – Laredo Petroleum Inc. – slide 79
    Premier Pipeline in the Right Basin 58% of 1Q-16 Permian-Basin issued permits were in Medallions six supply counties 46% of current active rigs in the Permian working in Medallions six supply counties (39% in late 2015) 39% of…
  80. Investor Meeting – Laredo Petroleum Inc. – slide 80
    Delivery-Point Optionality Colorado City Total delivery point capacity expected to exceed 500,000 BOPD Alon Refinery Acts as header system, offering Midland access to multiple, long-haul pipelines Multiple sales points…
  81. Investor Meeting – Laredo Petroleum Inc. – slide 81
    Growing Volumes Medallions Delivered Volumes 120,000 100,000 80,000 Volumes (BOPD) 60,000 40,000 20,000 0 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16E Laredo 3rd party Throughput on the Medallion system has grown…
  82. Investor Meeting – Laredo Petroleum Inc. – slide 82
    Financial Rick Buterbaugh Executive VP & CFO 83
  83. Investor Meeting – Laredo Petroleum Inc. – slide 83
    Foresight has Provided Value Creation Earth Model Enhanced well performance Infrastructure Reduced capital and operating costs Medallion takeaway Optionality in marketing while creating substantial value Hedging Cash flow…
  84. Investor Meeting – Laredo Petroleum Inc. – slide 84
    Capitalizing on Proven Results: 2016 Capital Program 420 MM Budget 35 Operating 3 Hz Rigs 27 Now maintaining 3 rigs throughout year 13 Expected average completed lateral length of 9,800 345 Drilling 45 - 49 Hz Development…
  85. Investor Meeting – Laredo Petroleum Inc. – slide 85
    Strong Financial Position 745 million of liquidity1 No term debt due until 2022 950 million of notes callable at Laredos option in 2017 Peer-leading, multi-year hedge position Debt Maturity Summary 1,000 800 5.625% Debt (…
  86. Investor Meeting – Laredo Petroleum Inc. – slide 86
    Peer-Leading Multi-Year Hedge Position 100% 100% 67.48 80% 80% % Natural Gas Hedged 3.00 2.65 % Oil Hedged 60% 60% 60.00 2.50 40% 40% 20% 55.98 20% 0% 0% 2Q-16 - 4Q-16 FY-17 FY-18 2Q-16 - 4Q-16 FY-17 FY-18…
  87. Investor Meeting – Laredo Petroleum Inc. – slide 87
    Top-Quartile 1Q-16 Hedged Cash Margin 30 Laredos cash margins 25 preserved through proactive cost and risk management Hedged Cash Margin (/BOE) 20 initiatives Peer Average 15 10 5 0 LPI Peers1 1 Peers are CPE,…
  88. Investor Meeting – Laredo Petroleum Inc. – slide 88
    2Q-16 Guidance Update Prior investments are leading to tangible improvements in both production and operating expenses Production Improved uptime on existing wells as a result of prior infrastructure investment Well results continue…
  89. Investor Meeting – Laredo Petroleum Inc. – slide 89
    Financial Impact of Operations Results Production 1Q-16 results: 9% higher than midpoint of guidance 2Q-16 updated guidance: 6% increase to midpoint of prior guidance Drilling results support annual production growth YoY at 3 Hz rig…
  90. Investor Meeting – Laredo Petroleum Inc. – slide 90
    Summary Randy Foutch Chairman & CEO 91
  91. Investor Meeting – Laredo Petroleum Inc. – slide 91
    Summary Strategic investments yielding results Contiguous acreage enables efficiencies through longer laterals and multiple production corridors providing cost, pricing and capital benefits Earth Model and optimized completions…

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