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2Q 2017 Quarterly Update – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Aug 8, 2017 · 29 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. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 1
    Corporate Presentation August 2017
  2. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 2
    2Q-17 Highlights Produced a Company record 58,632 BOE/d, an increase of 23% from 2Q-16 and 12% from 1Q-17 Grew oil production to a Company record 27,275 BO/d, an increase of 16% from 1Q-17 Increased anticipated production growth…
  3. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 3
    Consistent Production Growth Increased anticipated 2017 production growth to 16% - 19% 60 50 Production1,2 (MBOE/d) 40 30 20 10 0 2011 2012 2013 2014 2015 2016 2017E Actual Estimate Note: 2017 estimated…
  4. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 4
    2017 Capital and Operating Expectations 2017 Capital Budget 1 530 MM 2017 Drilling & Completions 450 MM Operating 4 Hz rigs 80 MM Drilling and completing 60 - 65 Hz wells Lateral length expected to average 10,000 Developed as…
  5. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 5
    Capitalizing on Contiguous Acreage Position 145,499 gross/125,967 net acres1 The company has identified 2,000 locations that support lateral lengths of 10,000+ on its contiguous acreage Centralized infrastructure in multiple…
  6. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 6
    Multiple Targeted Horizons 3 Stream Identified 2017 Drilling Targets Hz Wells Drilled Thickness (STMMBOE)1 Landing Points Clearfork Upper/Middle Spraberry Lower 4,500 gross ft. of prospective zones Spraberry 2 415 90 2-3…
  7. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 7
    Peer-Leading Long-Lateral Execution Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 LPI Well Count 70 56 41 34 69 179 69 48 16,000 14,000 Estimated Lateral Length (ft) 12,000 10,000 8,000 6,000 4,000…
  8. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 8
    Proprietary Modeling Accelerates Value Creation Proprietary workflow accelerates the process of advancing concepts to implementation Extensive, High-Quality Data + In-House Technology Development = Increased Value Proprietary Field…
  9. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 9
    An Example of Field Tests Confirming Internal Models Initial models predicted 50% improvement to type curve when utilizing 2,400 lb/ft completions. Actual field tests are confirming our internal models 300 250 Average Cumulative…
  10. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 10
    Internal Models Accelerate Completions Design Evolution Prior 2H-15 Testing 1H-17 Testing 2H-17 Testing Base Design 2016 Base Design 2H-17 Base Design Internal modeling efforts are shortening time from concept to field…
  11. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 11
    Testing Co-Development of Landing Points Potential to add additional high-value inventory in the UWC formation 1,500 Upper Wolfcamp Vertical Pressure Monitor Well 530 Middle Wolfcamp Lower Wolfcamp Landing zone…
  12. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 12
    Proprietary Workflows Deliver Well Productivity Improvements Dataset includes all 80 wells utilizing proprietary models 450 to optimize completions 400 Average Cumulative Production (MBOE) 350 Outperformance of 300 37% to 1.3…
  13. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 13
    Prior Investments in Infrastructure Providing Tangible Benefits Expect to receive 28.4 MM total benefits for 20171 7.0 MM total benefits received in 2Q-17 Anticipate reducing 100,000 water truckloads in 20171 Eliminated 32,000…
  14. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 14
    Significant Benefits through Water Infrastructure Investments Water infrastructure1 consists of: 80 miles of total water gathering pipelines Recycling plant capable of processing 54 MBWPD upon completion of 2 additional plants…
  15. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 15
    Water Infrastructure Capital and LOE Savings 4.0 MMBW (73%) of total 2Q-17 produced water was gathered on pipe Expected to increase to 75% for FY 2017 1.9 MMBW (35%) of total 2Q-17 produced water was recycled by LMS Expected to…
  16. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 16
    LMS Crude Gathering System Benefits 45 miles of crude oil gathering lines 2.8 MMBO (82%) of gross operated production in 2Q-17 was gathered on pipe Reduces time from production to sales Benefits of system increase as trucking…
  17. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 17
    Corridor Financial Benefits Production corridors benefited unit LOE by 0.60/BOE in 2Q-17 to 3.77/BOE Water Oil Gas 2016 Benefits 2Q-17 Benefits 2017 Benefits LMS Service Actual ( MM) Actual ( MM) Estimated ( MM)1 LPI…
  18. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 18
    Maintaining Strong Financial Position Debt Maturity Summary 1,200 1,000 800 Debt ( MM) 600 Currently 400 Callable 200 0 2017 2018 2019 2020 2021 2022 2023 1 B Revolver (115MM drawn)1 1.3 B Senior Notes 5.625% No…
  19. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 19
    Consistent Risk Management Philosophy Insures Long-Term Value Quarterly Adj. EBITDA & Hedge Settlements vs WTI Price Hedge philosophy has 150 100 80 worked as intended, WTI Price (/Bbl) 100 60 ( MM) providing cash flow…
  20. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 20
    Disciplined Hedging Program Volumes Protected by Floors Oil Hedges Natural Gas Hedges 100% 100% 90% 90% 80% 80% Providing cash 70% 70% % Natural Gas Hedged1 flow stability % Oil Hedged1 60% 60% while 50% 50%…
  21. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 21
    Oil, Natural Gas & Natural Gas Liquids Hedges OIL1 2H-17 2018 Puts: Hedged volume (Bbls) 529,000 2,616,875 Weighted average price (/Bbl) 60.00 54.01 Swaps: Hedged volume (Bbls) 1,012,000 - Weighted average price (/Bbl) 51.54 -…
  22. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 22
    3Q-17 and 4Q-17 Guidance 3Q-17 4Q-17 Production (MBOE/d)... 59 - 62 61 - 64 Product % of total production: Crude oil.. 45% - 47% 45% - 47% Natural gas liquids...... 26% - 27% * Natural gas.... 27% - 28% * Price Realizations…
  23. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 23
    Appendix
  24. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 24
    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 300 200 100 0 12 Months 24 Months 36 Months 48 Months 60 Months…
  25. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 25
    Drilling & Completions Efficiencies Drive Savings 10 10,000 D&C Capital Savings 1 9 8 Cost-efficient development: Longer laterals D&C Capital Per Well ( MM) 7 Multi-well packages 6 Zipper fracing High-spec rigs 5 4…
  26. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 26
    2016 & 2017 YTD Actuals 1Q-16 2Q-16 3Q-16 4Q-16 FY-16 1Q-17 2Q-17 Production (3-Stream) Production MBOE 4,204 4,338 4,718 4,889 18,149 4,716 5,336 BOE/D 46,202 47,667 51,276 53,141 49,586 52,405 58,632 % oil 48% 46% 46% 46%…
  27. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 27
    2015 Actuals 1Q-15 2Q-15 3Q-15 4Q-15 FY-15 Production (3-Stream) Production MBOE 4,274 4,234 4,124 3,714 16,346 BOE/D 47,487 46,532 44,820 40,368 44,782 % oil 51% 46% 45% 45% 47% Realized Pricing 3-Stream Prices Gas…
  28. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 28
    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…
  29. 2Q 2017 Quarterly Update – Laredo Petroleum Inc. – slide 29
    EBITDA Reconciliation LPI Adjusted EBITDA 2Q-17 (in thousands) Net income 61,110 Plus: Depletion, depreciation and amortization 38,003 Impairment expense - Non-cash stock-based compensation, net of amounts capitalized 8,687…

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