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November 2016 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Nov 2, 2016 · 31 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 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation November 2016
  2. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 2
    Led By Experienced Management Team Each member of the senior management team has more than 30 years of energy industry experience Randy Foutch has founded four successful exploration and production companies and operated through a…
  3. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    Prior Investments Creating Value Data powering the multivariate Earth Model Multivariate Earth Model optimized drilling and completions have yielded well results averaging 35% higher than 1+ MM BOE type curves Production corridors…
  4. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    3Q-16 Highlights Company record production Produced 51,276 BOE/d, above the top end of updated production guidance Strong well results Initial two results of 2,400 /ft of proppant are exceeding the UWC and MWC type curves by 61% and…
  5. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    Latest Optimization Tests Significantly Exceeding Type Curve Initial two wells utilizing the multivariate Earth Model optimized drilling and completions with 2,400 /ft sand are yielding results significantly greater than type curve…
  6. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    Raising FY-16 Production Estimate Anticipated 2016 production growth of 10% 20,000 18,000 Original FY-16 Guidance Mdpt 15.5 MMBOE 16,000 14,000 Anticipate full-year 2016 Production1,2 (MBOE) production growth of 10% YoY…
  7. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    Significant Unit LOE Reduction Since 2015 8 7 6 LOE (/BOE) 5 4 3 2 1 0 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16E Actual LOE/BOE Expected LOE/BOE 8
  8. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    Capitalizing on Contiguous Acreage Position 145,356 gross/127,421 net acres1 Contiguous acreage position with 4,500 gross feet of prospective zones Centralized infrastructure in multiple production corridors and ability to drill…
  9. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Multiple Targeted Horizons Identified Primary targets Hz Wells Drilled Thickness OOIP1 Secondary targets Landing Points Clearfork Upper/Middle Spraberry Lower 4,500 gross ft of prospective zones Spraberry 2 415 90 2-3 Dean…
  10. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    Peer-Leading Long-Lateral Execution 14,000 LPI 13,000 12,000 Estimated Lateral Length (Feet) 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 Well Count 13 53 19 46 42 139 19 34 LPI Peers1 Average Lateral…
  11. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    Multivariate Earth Model Drives Performance Earth Model is facilitating the landing and steering of the wellbore and Standard optimizing the completion to provide Wellbore significant production uplift Completion Optimization…
  12. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    Hydraulic Fracture Test Site (HFTS) 23 MM high-profile, joint-industry project led by In-Progress Laredo and the Gas Technology Institute (GTI) Key Initiatives Complete Slant Well Fracture & Proppant Analysis Laredos Project…
  13. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    Advanced Hydraulic Fracture Data Collected on Laredo Leasehold HFTS GTI LAYOUT (6 UWC wells, 5 MWC wells, UWC & MWC refracs) UWC wells Refrac wells MWC wells Cored Intervals Slant Core Well HYDRAULICALLY FRACTURED CORE…
  14. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    Evolving Beyond the Earth Model Enhanced analysis of key production drivers 2015 2016 2017 12-18 months project duration 6-12 months project duration 2-4 weeks project duration 50% of LPI acreage 80% of LPI acreage 100% of LPI +…
  15. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    Advanced Fracture Modeling Increasing connected propped fractures Hydraulic propped fractures Hydraulic unpropped fractures Utilizing multivariate Earth Model analysis to optimize completions designs 16
  16. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    Multivariate Earth Model Enhancing Production 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 28 Wells Avg. 1,826 /ft Sand…
  17. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    Multivariate Earth Model Driving Meaningful Uplift in Returns 125% 45 WTI 55 WTI 65 WTI 100% 75% ROR (%) 50% 25% 0% UWC MWC Cline UWC MWC Cline UWC MWC Cline Laredo type curve ROR Multivariate Earth Model…
  18. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    Drilling Efficiencies Drive Lower Well Costs Drilled Lateral Footage per Rig per Year 2016 166 2015 125 2014 88 2013 76 0 20 40 60 80 100 120 140 160 180 Thousand Lateral Feet Drilled per Rig per Year Significant drilling…
  19. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    Decreasing D&C Costs 10,000 D&C Capital Savings 1 10 9 D&C costs for recent Upper 8.2 8 and Middle Wolfcamp D&C Capital Per Well ( MM) 7 1.4 6.9 6.3 wells have been in the mid 6 1.0 5 million range 0.9 5 4 6.8 D&C…
  20. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    Prior Investment in Infrastructure Providing Tangible Benefits 6.0 MM total realized benefits in 3Q-161 25 MM total estimated benefits for FY-161 195 horizontal wells served by production corridors with potential for 2,500 more2…
  21. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    Corridor Financial Benefits 1.6 million benefit over life of each 10,000 corridor well, with 25% of the benefit received in the first six months1 Water Oil Gas 3Q-16 Benefits 2016 Benefits LMS Service Actual ( MM) Estimated…
  22. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    Medallion-Midland Basin Crude Oil System Medallion - Midland Basin System 500 miles with 325,000 net acres dedicated to system 0.48/Bbl 3Q-16 cash flow margin net to LPI YE-16 estimated exit rate of 140,000 BOPD 2 MM acres…
  23. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    Medallion-Midland Basin: The Premier Pipeline in the Permian Current Oil Production per Square Mile (Bbl/d) Medallions Delivered Volumes 0 200 400 600 800 1,000 1,200+ 140 15% QoQ 3rd-party volume 120 increase from 3Q-16 to…
  24. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    Strong Financial Position 755 million of liquidity1 No term debt due until 2022 950 million of notes callable at Laredos option in 2017 Top-tier, multi-year hedge position Debt Maturity Summary 1,000 800 5.625% Debt ( MM)…
  25. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    Top-Tier, Multi-Year Hedge Position Oil Hedges Natural Gas Hedges 100% 100% 90% 90% 80% 80% Hedging 70% 70% program % Natural Gas Hedged1 provides price % Oil Hedged1 60% 60% 50% 50% protection 40% 40% while…
  26. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    Fourth-Quarter 2016 Guidance 4Q-2016 Production (MMBOE)... 4.7 - 4.9 Product % of total production: Crude oil.. 45% - 47% Natural gas liquids...... 26% - 27% Natural gas.... 27% - 28% Price Realizations (pre-hedge): Crude oil…
  27. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    Oil, Natural Gas & Natural Gas Liquids Hedges OIL1 4Q-16 2017 2018 Puts: Hedged volume (Bbls) 549,000 1,049,375 1,049,375 Weighted average price (/Bbl) 42.95 60.00 60.00 Swaps: Hedged volume (Bbls) 395,600 2,007,500 1,095,000…
  28. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 28
    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…
  29. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 29
    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…
  30. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 30
    2015 & 2016 (YTD) Actuals 1Q-15 2Q-15 3Q-15 4Q-15 FY-15 1Q-16 2Q-16 3Q-16 Production Production (3-Stream) BOE/D 47,487 46,532 44,820 40,368 44,782 46,202 47,667 51,276 % oil 51% 46% 45% 45% 47% 48% 46% 46% Realized…
  31. November 2016 Corporate Presentation – Laredo Petroleum Inc. – slide 31
    2014 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…

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