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April 2018 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Apr 10, 2018 · 32 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. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation April 2018
  2. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 2
    2017 Highlights 17% Production growth 36% Organic PDP reserve growth 15% Decrease in unit LOE Average anticipated well-level rate of return on 30% invested capital 50% Decrease in net debt to annualized Adjusted EBITDA1…
  3. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    Low-Cost Proved Reserves Growth Total Proved Reserves Total Reserves Value 300 2,000 1,800 1,770 Standardized Measure ( MM) 250 70 (0.2) (21) 216 1,600 200 1,400 167 1,200 MMBOE 978 150 1,000 800 PDP: 1,659 100 PDP:…
  4. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    Cash Margin Improved By Reducing Cash Costs 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 LOE Prod. &…
  5. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    2018 Budget Aligns Capital with Operating Cash Flow Laredo Capital Budget 700 630 600 555 115 2018 Drilling & Completion Plan 500 85 Capital ( MM) Completing 60 - 65 net wells 400 10,400 average Hz lateral length 300 92%…
  6. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    Operational Efficiencies Enable Us to Do More with Less 225,000 200,000 Gross Completed Lateral Feet per Rig 175,000 150,000 125,000 100,000 75,000 50,000 25,000 0 2013 2014 2015 2016 2017 2018E 35% YoY…
  7. April 2018 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. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    Crude Value Maximized Via Physical & Financial Contracts Physical Firm Transport LMS-owned gathering minimizes trucking 81% gross operated crude gathered on pipe as of YE-17 Medallion contract provides intra-basin transport 30,000…
  9. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Natural Gas Value Maximized Via Physical & Financial Contracts Operational Assurance Data from purchasers supports that they have sufficient firm transportation, and it is believed they can accommodate LPIs natural gas volumes LMS…
  10. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    Capitalizing on Our Contiguous Acreage Position 144,538 gross/124,843 net acres Longer laterals enhance returns 500 land-ready UWC/MWC locations of at least 15,000 Centralized infrastructure enables increased capital and…
  11. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    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…
  12. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    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…
  13. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    Significant Benefits Through Water Infrastructure Investments 78% LPI leasehold Water storage Water treatment facility YE-17 produced water Water lines (existing) Water lines (constructing) Water corridor benefits gathered on…
  14. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    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…
  15. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    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 LPI unit LOE vs. peers…
  16. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    Advanced Subsurface Characterization Drives Optimized Development Physics-Based Workflows High-Resolution 3D Improved Analytics Reservoir Geomodels Bivariate analytics Acquire Production Production Subsurface data Variable…
  17. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    Transitioning to Higher-Density Development 1 section 16 wells 1 section 32 wells Wolfcamp Upper Wolfcamp Middle Previous development Planned development using high-resolution 3D geomodels 32 locations Results of 2017…
  18. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    Tighter Cluster Spacing Facilitates Higher-Density Development UWC/MWC NAV Per Spacing Unit 32 wells per section, 100% of type curve 16 wells per section, 120% of type curve 12 wells per +61 MM section, 130% of type…
  19. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    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% and 6.250% notes both 300 currently callable 250 200 5.625% 6.250%…
  20. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    Stock Repurchase Program Up to 200 MM stock repurchase approved 10% reduction in current common stock outstanding1,2 Plan to utilize cash on hand and senior secured credit facility Results in 1.7x net debt to Adjusted EBITDA post…
  21. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    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…
  22. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    Positioned for the Future High-Density Operational Efficiencies facilitated by contiguous acreage Development enhancing shareholder value Production Corridors Consistent Growth reducing costs & enabling underpinned by strong…
  23. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    APPENDIX
  24. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    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)....…
  25. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    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…
  26. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    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)…
  27. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    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…
  28. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 28
    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…
  29. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 29
    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%…
  30. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 30
    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…
  31. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 31
    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…
  32. April 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 32
    Supplemental Non-GAAP Financial Measure Adjusted EBITDA 4Q-16 4Q-17 (in thousands) Net income (18,421) 408,561 Plus: Income tax expense - 1,800 Depletion, depreciation and amortization 37,526 45,062 Non-cash stock-based…

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