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4Q 2017 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Feb 15, 2018 · 28 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. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation February 2018
  2. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 2
    2017 Highlights 17% YoY production growth Company record of 58,273 BOE/d 36% YoY organic PDP reserve growth 7.90/BOE proved F&D cost1 62 Hz development wells completed 30% average anticipated well-level rate of return on invested…
  3. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    Low-Cost Proved Reserves Growth Total Proved Reserves Total Reserves Value 300 2,000 1,770 1,800 Standardized Measure ( MM) 250 70 (0.2) (21) PUD: 216 1,600 111 200 PUD: 25 1,400 167 1,200 MMBOE 978 150 PUD: 26 1,000…
  4. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    Improved Cash Margin Percentage During Volatile Pricing 60 80% 68% 71% 70% 50 Cash Margin (% of realized) 60% 60% 40 51% 50% /BOE 30 40% 30% 20 20% 10 10% 0 0% 2014 2015 2016 2017 Unhedged Avg. Realized Price…
  5. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    2018 Capital Budget 2018 Capital Budget 555 MM 2018 Drilling & Completions 85 Operating 3 - 4 Hz rigs Completing 60 - 65 net wells 99% targeting the UWC & MWC 10,400 average Hz lateral length 470 Drilling & Completions…
  6. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    Operational Efficiencies Enable Us to Do More with Less 800,000 9 697,000 700,000 8 Gross Completed Lateral Feet 596,797 591,542 7 600,000 6 500,000 of Hz Rigs 458,976 451,159 5 400,000 4 300,000 270,817 3 200,000…
  7. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    Consistent Growth Through Commodity Price Cycle Production 120 24 22 100 20 Total Production1 (MMBOE) 18 80 WTI Price (/Bbl) 16 14 12 60 10 8 40 6 4 20 2 0 0 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18E…
  8. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    Capitalizing on Our Contiguous Acreage Position 144,538 gross/124,843 net acres The Company has identified 500 land- ready UWC/MWC locations from its total inventory that support lateral lengths of 15,000+ on its contiguous…
  9. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Infrastructure Provides Tangible Benefits Yields capital & LOE savings, plus increased revenues & 3rd-party income Enables multi-well pad drilling & operational flexibility Minimizes trucking 4Q-17 Net Benefits 2017 Net Benefits LMS…
  10. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    Contiguous Acreage Facilitates Robust Infrastructure Investments PIPELINE INFRASTRUCTURE 60 Miles CRUDE GATHERING 95 Miles WATER GATHERING / RECYCLED DISTRIBUTION 188 Miles NATURAL GAS GATHERING & DISTRIBUTION 185,000…
  11. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    LMS Crude Gathering System Benefits 81% YE-17 gross operated crude production gathered on pipe LPI leasehold Medallion Pipeline LMS Oil gathering lines LMS Crude station Reduces time from production to sales System benefits…
  12. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    Significant Benefits Through Water Infrastructure Investments 15.7 MMBW LPI leasehold Water storage Water treatment facility FY-17 produced water Water lines (existing) Water lines (constructing) Water corridor benefits…
  13. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    Infrastructure Helping to Deliver Peer-Leading LOE 9 8 7 LOE/BOE (/BOE) 6 5 4 3 2 1 0 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 LPI Peer Average Gap between LPIs unit LOE vs.…
  14. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    Advanced Subsurface Characterization Drives Optimized Development Physics-Based Workflows High-Resolution 3D Improved Analytics Reservoir Geomodels Bivariate analytics Acquire Production Production Subsurface data Variable…
  15. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    Tightened Spacing Increases Premium UWC/MWC Locations 1 section 1 section Wolfcamp Upper Wolfcamp Middle Previous development Planned development using high-resolution 3D geomodels 32 locations Results of 2017 spacing tests…
  16. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    Tighter Cluster Spacing Facilitates Higher-Density Development UWC/MWC NAV Per Spacing Unit 32 wells per section, 100% of type +61 MM curve 16 wells per section, 120% of type +38 MM curve 12 wells per section, 130%…
  17. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    Maintaining A Strong Balance Sheet 1.3x net debt to Adjusted EBITDA 1 Debt Maturity Summary 500 450 400 No debt due until 2022 Debt ( MM) 350 5.625% notes currently callable 300 6.250% notes callable in Mar-18 250 200…
  18. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    Stock Repurchase Program Up to 200 MM stock repurchase approved 10% reduction in current common stock outstanding1 Plan to utilize cash on hand and senior secured credit facility Results in 1.7x net debt to Adjusted EBITDA post…
  19. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    Disciplined Risk Management Philosophy Protects Long-Term Value Hedge Settlements and Product Revenue vs. WTI Price 250 100 90 200 80 WTI Price (/Bbl) 150 70 MM 60 100 50 50 40 0 30 3Q-14 4Q-14 1Q-15 2Q-15…
  20. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    Oil, Natural Gas & Natural Gas Liquids Hedges Hedge Product Summary FY-18 FY-19 FY-20 Oil total floor volume (Bbl) 9,515,375 6,606,500 1,061,400 Oil wtd-avg floor price (/Bbl) 47.42 48.82 49.70 Nat gas total floor volume (MMBtu)…
  21. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    1Q-18E Guidance 1Q-18E Production (MBOE/d)... 62.0 Crude oil production (MBbl/d)...... 27.0 Price Realizations (pre-hedge): Crude oil (% of WTI)..... 97% Natural gas liquids (% of WTI)......... 28% Natural gas (% of Henry Hub)....…
  22. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    APPENDIX
  23. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    UWC & MWC 1.3 MMBOE Cumulative Production Type Curve 1.3 MMBOE Cumulative Production Type Curve 600 Cumulative Production 500 400 (MBOE) 300 200 100 0 12 Months 24 Months 36 Months 48 Months 60 Months…
  24. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    2017 Actuals 1Q-17 2Q-17 3Q-17 4Q-17 FY-17 Sales Volumes 3-Stream Sales Volumes MBOE 4,716 5,336 5,521 5,697 21,270 BOE/d 52,405 58,632 60,011 61,922 58,273 % oil 45% 47% 44% 43% 45% 3-Stream Realized Prices Oil (/Bbl) 46.91…
  25. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    2015 & 2016 Actuals 1Q-15 2Q-15 3Q-15 4Q-15 FY-15 1Q-16 2Q-16 3Q-16 4Q-16 FY-16 Sales Volumes 3-Stream Sales Volumes 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…
  26. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    2014 Actuals: Two-Stream to Three-Stream Conversions 1Q-14 2Q-14 3Q-14 4Q-14 FY-14 2-Stream Sales Volumes MBOE 2,434 2,607 3,033 3,654 11,729 Sales Volumes BOE/d 27,041 28,653 32,970 39,722 32,134 % oil 58% 58% 59% 60% 59%…
  27. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    Supplemental Non-GAAP Financial Measure Proved Developed Finding and Development Cost (Unaudited) Proved developed finding and development (F&D) cost per BOE is calculated by dividing (x) development costs for the period, by (y) proved…
  28. 4Q 2017 Corporate Presentation – Laredo Petroleum Inc. – slide 28
    Supplemental Non-GAAP Financial Measure Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that we define as net income or loss plus adjustments for income tax expense or benefit, depletion, depreciation & amortization, bad…

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