Skip to main content March 2017 Corporate Presentation – Laredo Petroleum Inc. | Shale Experts
Loading...
Pm

March 2017 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Mar 10, 2017 · 40 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. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation March 2017
  2. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 2
    2016 Highlights Grew production 11% in 2016 and funded drilling program with operating cash flow Increased proved developed reserves organically by approximately 40% at a PD F&D cost of 5.12 per BOE Reduced LOE 37% during 2016…
  3. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    Prior Investments Creating Value Multi-zone, contiguous acreage position enabling development efficiencies 2016 average completed lateral length of 10,000 driving higher rates of return Data powering the multivariate Earth Model…
  4. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    Capitalizing on Contiguous Acreage Position 141,303 gross/124,654 net acres1 The company has identified 2,000 locations that support lateral lengths of 10,000+ feet on its contiguous acreage The expected average lateral length for…
  5. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    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…
  6. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    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 22 87 37 77 73 226 52 51 LPI Peers1 Contiguous acreage…
  7. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    Drilling Efficiencies Drive Lower Well Costs Drilled Lateral Footage per Rig per Year 2017E 175 2016 166 2015 125 2014 88 2013 76 0 20 40 60 80 100 120 140 160 180 200 Thousands of Lateral Feet Drilled per Rig per Year…
  8. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    Economic Benefits of Longer Laterals Proved Developed Finding & Development Costs 12 9.70 10 PD F&D (/BOE) 8 7.56 6.26 6 4 2 0 3x - 5,000' wells 2x - 7,500' wells 1x - 15,000' well Rate of Return (%) 60% 50% Rate…
  9. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Laredos Technology Workflow Actions Results Predicted Well Role of Interference Technology & Performance Optimized Completions Ranked Zones Integration Analysis Optimized Well Spacing Ranked Wells Frac Modeling Optimized…
  10. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    Evolving Beyond the Earth Model 2015 2016 2017 Project duration 12-18 months 6-12 months 2-4 weeks LPI acreage coverage 50% 80% 100% & offset acreage zones 2 4 5 Focus Seismic Inversion Expanded attributes Improved data…
  11. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    Earth Model and Completion Optimization Benefits Wells utilizing the Earth Model and optimized completions have performed at an average of 136% of 1.3 MMBOE Type Curve1 350 36% Uplift vs 1.3 MMBOE 300 Type Curve through Earth Model…
  12. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    Multivariate Earth Model Enhancing Production Upper Wolfcamp Middle Wolfcamp 350 350 Cumulative Production (MBOE) Cumulative Production (MBOE) 300 300 250 250 1.3 MMBOE 1.3 MMBOE 200 200 (New Reference Curve (New Reference…
  13. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    Latest Optimization Tests Significantly Exceeding Type Curve 200 Outperformance of 35% to 1.3 MMBOE 180 type curve is expected to increase as the impacts of managed pressure 1.3 MMBOE Average Cumulative Production (MBOE) 160 35%…
  14. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    New UWC & MWC 1.3 MMBOE Cumulative Production Type Curve 1.3 MMBOE Cumulative Production Type Curve 600 Cumulative Production (MBOE) 500 400 1.3 MMBOE (New Reference Curve 300 as of 2/15/17) 200 100 0 12 Months 24 Months…
  15. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    Multivariate Earth Model Driving Meaningful Uplift in Returns 200% 45 WTI 55 WTI 65 WTI 180% 160% 10,000 Lateral Rate of Return (%) 140% 120% 100% 80% 60% 40% 20% 0% UWC MWC Cline UWC MWC Cline UWC MWC Cline…
  16. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    2017 Budget Expectations 2017 Capital Budget 1 530 MM 2017 Drilling & Completions 450 MM Operating 4 Hz rigs 80 MM Drilling and completing 70 Hz wells 85% targeting the UWC & MWC 95% average working interest Hz wells average…
  17. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    Consistent Production Growth Anticipate 2017 production growth of 15% 60 50 Production1,2 (MBOE/d) 40 30 20 10 0 2011 2012 2013 2014 2015 2016 2017E Actual Estimate 1 Production numbers prior to 2014 have…
  18. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    Prior Investment in Infrastructure Providing Tangible Benefits 5.5 MM total realized benefits from infield infrastructure in 4Q-161 24 MM total benefits for FY-161 195 horizontal wells served by production corridors with…
  19. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    Corridor Financial Benefits 1.3 MM benefit over life of each 10,000 corridor well, with 25% of the benefit received in the first six months1 Water Oil Gas 2016 Benefits 2017 Benefits LMS Service Actual ( MM) Estimated ( MM)1…
  20. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    Significant Benefits through Water Infrastructure Investments Water infrastructure consists of: 78 miles of total water gathering pipelines Recycling plant capable of processing 30,000 BWPD Linked water storage assets with 5 MMBW…
  21. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    Water Infrastructure Capital and LOE Savings 11.3 MMBW (61%) of total 2016 produced water was gathered on pipe Expected to increase to 75% in 2017 6.3 MMBW (34%) of total 2016 produced water was recycled by LMS Expected to increase…
  22. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    LMS Crude Gathering System Benefits 44 miles of crude oil gathering lines 7.4 MMBO (64%) of gross operated production in 2016 was gathered on pipe Eliminated 41,000 truckloads of oil in 2016 Reduces time from production to sales…
  23. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    Consistent Unit LOE Reduction 8 7 LOE (/BOE) 6 5 4 3 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 24
  24. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    Medallion-Midland Basin System Medallion - Midland Basin System1 YE-15 YE-16 Throughput (MBOPD) 67.6 134.3 Miles of Pipeline 460 6502 System Deliverability 125 550 (MBOPD) of AMI or Firm 1.8 MM 2.0 MM Commitment Acres of…
  25. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    Medallion-Midland Basin System Scale Majority of system is large-diameter pipe to multiple delivery points 16-inch line to Midland delivery point with 200,000 BOPD capacity 12-inch line to Colorado City delivery point with 150,000…
  26. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    Medallion-Midland Basin: The Premier Pipeline in the Permian Current Oil Production per Square Mile (Bbl/d) Medallions Delivered Volumes 160 0 200 400 600 800 1,000 1,200+ 0.54/Bbl EBITDA net to LPI in 4Q-161 140 Volumes (MBOPD)…
  27. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    Maintaining Strong Financial Position Historical Oil Price and Net Debt to Adjusted EBITDA 75 6.0 Net Debt to TTM Adj. EBITDA Proactively maintaining leverage ratio despite a 33% drop in WTI prices from 4Q-14 to 4Q-16 5.0 WTI…
  28. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 28
    Disciplined Hedging Program 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 retaining…
  29. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 29
    Oil Hedges Retain Meaningful Upside in 2017 Estimated Avg. NYMEX Price Received 70 Estimated Avg. Price Received (/Bbl) 65 60 Downside Protection Upside Participation 55 50 45 40 40 45 50 55 60 65 70 NYMEX Price…
  30. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 30
    2017 Guidance 1Q-17 2Q-17 Production (MBOE/d)... 52 - 54 55 - 58 Product % of total production: Crude oil.. 44% - 46% 45% - 47% Natural gas liquids...... 27% - 28% * Natural gas.... 27% - 28% * Price Realizations (pre-hedge):…
  31. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 31
    Appendix
  32. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 32
    YE-16 Proved Reserves Reserves 200 24.9 0.5 Total Proved Reserves (MMBOE) 167.1 34.1 (18.1) PUD 150 16% 125.7 100 PDP 84% 50 0 YE 2015 Revisions1 Additions Acquisition Production YE 2016 Grew proved developed…
  33. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 33
    Oil, Natural Gas & Natural Gas Liquids Hedges OIL1 2017 2018 Puts: Hedged volume (Bbls) 1,049,375 1,049,375 Weighted average price (/Bbl) 60.00 60.00 Swaps: Hedged volume (Bbls) 2,007,500 1,095,000 Weighted average price (/Bbl)…
  34. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 34
    Hydraulic Fracture Test Site (HFTS) 23.1 MM high-profile, joint-industry project led In-Progress by Laredo and the Gas Technology Institute (GTI) Key Initiatives Complete Slant Well Fracture & Proppant Analysis Laredos Project…
  35. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 35
    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…
  36. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 36
    Advanced Fracture Modeling Increasing connected propped fractures Hydraulic propped fractures Hydraulic unpropped fractures Utilizing multivariate Earth Model analysis to optimize completions designs 37
  37. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 37
    Drilling & Completion Costs 10 10,000 D&C Capital Savings 1 Efficiency gains partially 9 offset recent increases in 1,800 lb/ft D&C Capital Per Well ( MM) 8 service costs 7 D&C capital includes: 6 1 MM for 1,800 lb/ft sand…
  38. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 38
    2014 Two-Stream to Three-Stream Conversions 1Q-14 2Q-14 3Q-14 4Q-14 FY-14 Production (2-Stream) MBOE 2,434 2,607 3,033 3,655 11,729 Production BOE/D 27,041 28,653 32,970 39,722 32,134 % oil 58% 58% 59% 60% 59% Production…
  39. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 39
    2015 & 2016 YTD Actuals 1Q-15 2Q-15 3Q-15 4Q-15 FY-15 1Q-16 2Q-16 3Q-16 4Q-16 FY-16 Production (3-Stream) Production MBOE 4,274 4,234 4,124 3,714 16,346 4,204 4,338 4,718 4,889 18,149 BOE/D 47,487 46,532 44,820 40,368 44,782…
  40. March 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 40
    EBITDA Reconciliation LPI Adjusted EBITDA 4Q-16 FY 2016 (in thousands) Net income (18,421) (260,739) Plus: Depletion, depreciation and amortization 37,526 148,339 Impairment expense - 162,027 Non-cash stock-based compensation, net…

From the store

Browse maps, data & reports in the Shale Experts store