Skip to main content Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. Investor Presentation | Shale Experts
Loading...
Pm

Q2 2016 Financial and Operating Results – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Aug 3, 2016 · 23 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. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 1
    2016 Second-Quarter Financial and Operating Results August 2016
  2. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 2
    2Q-16 Highlights Produced a Company record 47,667 BOE/d, exceeding the top end of updated production guidance Increased anticipated full-year 2016 production to a range midpoint of 17.15 MBOE, up 5.5% from prior guidance midpoint of…
  3. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 3
    2Q-16 Operational Achievements Produced 47.7 MBOE/d, 46% oil 3% BOE/d beat to updated guidance midpoint Invested 80 MM in exploration and development capital1 and increased FY-16 production guidance Completed 16 Hz wells with 100%…
  4. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 4
    Earth Model and Optimized Completions Benefits 2,200 36 2,000 10 - 20% Uplift from 32 Optimized Completions 1,800 Cumulative Production (MBO) 28 10 - 20% Uplift 1,600 from Earth Model 24 1,400 of Wells 1,200 20…
  5. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 5
    Earth Model and Optimized Completions Benefits by Horizon Upper Wolfcamp Middle Wolfcamp 250 250 Cumulative Production (MBOE) Cumulative Production (MBOE) 200 200 150 1.1 MMBOE 150 1.0 MMBOE 100 100 50 18 Wells Avg. 1,690…
  6. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 6
    Raising FY-16 Production Guidance 18,000 Previous Guidance Mdpt 16,000 16.25 MMBOE 14,000 Increasing FY-16E Production Guidance Production1,2 (MBOE) 12,000 2Q-16 production of 47.7 MBOE/d, 3% above midpoint of increased…
  7. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 7
    Top-Tier Unit LOE 8 7 6 LOE (/BOE) 5 4 3 2 1 0 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 42% reduction in unit LOE since 1Q-15 8
  8. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 8
    Drilling Efficiencies Yield Ongoing Savings Increased Efficiencies Lower Costs 1,200 30 Average Drilling Days Rig Accept Rig Accept to Rig Release (Ft/Day) Total Drilling Efficiency Average Drilling Days 1,000 25 to Rig…
  9. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 9
    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…
  10. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 10
    Infrastructure Lowers Capital & Operational Costs Infrastructure includes crude gathering/transportation, water gathering, distribution & recycle, natural gas gathering, and centralized gas lift compression 775 wells served by…
  11. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 11
    Corridor Financial Benefits 2Q-16 Benefits 2016 Benefits LMS Service Actual ( MM) Estimated ( MM)1 LPI Financial Benefits Increased revenues Crude Gathering 2.4 10.5 & 3rd-party income Centralized Gas Lift 0.2 0.8 LOE savings…
  12. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 12
    Medallion-Midland Basin Crude Oil System Medallions Delivered Volumes 140 120 Volumes (MBOPD) 100 80 60 40 20 0 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16E Laredo 3rd party Truck offloading Throughput on the…
  13. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 13
    Top-Tier, Multi-Year Hedge Position Oil Hedges Natural Gas Hedges 100% 100% 90% 90% 80% 80% Consistent 70% 70% philosophy to % Natural Gas Hedged1 protect capital % Oil Hedged1 60% 60% program and 50% 50% debt…
  14. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 14
    Oil, Natural Gas & Natural Gas Liquids Hedges OIL1 2H-16 2017 2018 Total Puts: Hedged volume (Bbls) 1,098,000 1,049,375 1,049,375 3,196,750 Weighted average price (/Bbl) 42.95 60.00 60.00 54.14 Swaps: Hedged volume (Bbls) 791,200…
  15. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 15
    Strong Financial Position 760 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 (…
  16. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 16
    Third-Quarter 2016 Guidance 3Q-2016 Production (MMBOE)... 4.2 - 4.4 Product % of total production: Crude oil.. 45% - 47% Natural gas liquids...... 26% - 27% Natural gas.... 27% - 28% Price Realizations (pre-hedge): Crude oil (%…
  17. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 17
    Appendix
  18. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 18
    Midland Basin Acreage Acquisition Bolsters Existing Footprint Acquisition overview: 125 MM purchase price1 300 BOE/D Laredo-operated production 9,200 net acres Increases working interest in current western Glasscock and Reagan…
  19. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 19
    Medallion-Midland Basin: The Premier Pipeline in the Permian 500 miles with 290,000 net acres dedicated to system 0.45/Bbl 2Q-16 cash flow margin net to LPI YE-16 estimated average exit rate of 140,000 BOPD 2 MM acres either…
  20. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 20
    Upper Wolfcamp Type Curves 1,000 10,000 Lateral 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 7,500…
  21. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 21
    Middle Wolfcamp Type Curves 1,000 10,000 Lateral EUR: 1,000 MBOE (51% oil) BOE/D 100 180-day cumulative: 104 MBOE (62% oil) 365-day cumulative: 165 MBOE (59% oil) 10 Months Normalized production1 Type curve 1,000 7,500…
  22. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 22
    2015 & 2016 (YTD) Actuals 1Q-15 2Q-15 3Q-15 4Q-15 FY-15 1Q-16 2Q-16 Production Production (3-Stream) BOE/D 47,487 46,532 44,820 40,368 44,782 46,202 47,667 % oil 51% 46% 45% 45% 47% 48% 46% Realized Pricing 3-Stream…
  23. Q2 2016 Financial and Operating Results – Laredo Petroleum Inc. – slide 23
    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…

From the store

Browse maps, data & reports in the Shale Experts store