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2Q 2018 Earnings Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Aug 1, 2018 · 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 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 1
    Second-Quarter 2018 Earnings Presentation
  2. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 2
    2Q-18 Highlights & FY-18 Expectations 15% Production growth YoY from 2Q-17 70 net wells Increased anticipated FY-18E net horizontal completions 15% Increased anticipated FY-18E BOE production growth 1.4x Net debt to Adjusted…
  3. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 3
    2Q-18 Guidance vs. Actuals Guidance Actuals Production (MBOE/d)... 64.0 67.2 Crude oil production (MBbl/d) 27.4 27.6 Price Realizations (pre-hedge): Crude oil (% of WTI).... 91% 93% Natural gas liquids (% of WTI)........ 28% 30%…
  4. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 4
    Operational Efficiencies Enable Us To Do More With Less Gross Completed Lateral Feet Per Rig Per Year 225,000 200,000 175,000 150,000 Feet per Year 125,000 100,000 75,000 50,000 25,000 0 2013 2014 2015 2016 2017…
  5. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 5
    Transitioning To Higher-Density Development 1 section 16 wells 1 section Up to 32 wells Wolfcamp Upper Wolfcamp Middle Previous development Planned development using high-resolution 3D geomodels Co-development package…
  6. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 6
    Operational Update 20% increase in 2Q-18 completed lateral feet as a result of completing 3.5 additional net wells versus guidance 34% improvement in average 1H-18 completions crew efficiencies versus average 2017 performance…
  7. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 7
    Safely Setting New Drilling & Completions Records in 2Q-18 Drilling Efficiencies Completions Efficiencies 16 450 420 Thousand Lateral Feet per Crew per Year 14 13.4 400 Average Drilling Days per 10,000 11.4 350 12 10.8 313…
  8. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 8
    Continued Focus On Cost Control Unit LOE Cost 8 7 6 5 /BOE 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 1Q-18 2Q-18 Contiguous acreage & infrastructure investments…
  9. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 9
    Recent Upper/Middle Wolfcamp Co-Development Results Cumulative Oil Production 150 100 MBO 50 0 8% uplift vs LPI oil type curve 0 30 60 90 120 150 180 210 240 270 300 330 360 390 Producing Days Individual Well Laredo Oil…
  10. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 10
    2017 Vintage Completions Performance Cumulative Oil Production 200 150 MBO 100 50 0 7% uplift vs LPI oil type curve 0 100 200 300 400 500 Producing Days Cumulative Oil Production Laredo Oil Type Curve Cumulative Total…
  11. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 11
    2016 Vintage Completions Performance Cumulative Oil Production 250 200 MBO 150 100 50 23% uplift vs LPI oil type curve 0 0 100 200 300 400 500 600 700 800 900 Producing Days Cumulative Oil Production Laredo Oil Type Curve…
  12. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 12
    2015 Vintage Completions Performance Cumulative Oil Production 200 150 MBO 100 50 0 3% below LPI oil type curve 0 200 400 600 800 1,000 1,200 Producing Days Cumulative Oil Production Laredo Oil Type Curve Cumulative…
  13. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 13
    2Q-18 Marketing & Midstream Highlights Gathered 85% of LPIs gross operated volumes on LMS- or Medallion-owned gathering systems, substantially minimizing the need for trucks Contracted firm transportation to the Gulf Coast on the…
  14. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 14
    Firm Transportation to Multiple Pipelines Exiting the Midland Basin LMS Infrastructure Flow assurance supported by LMS- and Medallion-owned pipelines LMS-owned truck stations shorten hauls…
  15. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 15
    Crude Value Maximized Via Physical & Financial Contracts 25 Gross Crude Volume Protected From Midland Basis (MBOPD) 20 15 10 5 0 Physical Basis Physical Basis Physical Basis 2H-18 1H-19 2H-19 Bridgetex Firm Gray Oak…
  16. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 16
    Natural Gas Value Maximized Via Physical & Financial Contracts Operational Assurance Targa processes 90% of LPIs liquids-rich natural gas volumes LMS assets provide field-level optionality to move production to an alternate…
  17. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 17
    Significant Benefits Through Water Infrastructure Investments LPI leasehold Water Infrastructure Water storage Water treatment facility Water lines (existing) Water corridor benefits 110 miles of water gathering & distribution…
  18. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 18
    2Q-18 Financial Highlights Increased adjusted EBITDA per average net debt-adjusted share by 8% QoQ Maintained solid financial position, with net debt / Adjusted EBITDA of 1.4x as of 2Q-181 Repurchased 3,150,651 shares of common…
  19. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 19
    Increasing Adjusted EBITDA Per Average Net Debt-Adjusted Share 0.50 100 Net Debt-Adjusted Share 90 Adj. EBITDA/Average 0.45 WTI Price (/Bbl) 80 0.40 70 0.35 60 0.30 50 0.25 40 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18…
  20. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 20
    Stock Repurchase Program 250 200 Repurchase ( MM) Program Update 150 9,878,552 shares of common stock 100 87 repurchased to date with a weighted- 58 average share price of 8.83/share 50 0 1Q Repurchase 2Q Repurchase 1Q…
  21. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 21
    Consistent Financial Hedging Program 14,000 12,000 Volumes (MBOE) 10,000 8,000 6,000 4,000 2,000 0 Commodity Basis Commodity Basis Commodity Basis Commodity Basis 2018 2019 2020 2021 Crude Natural Gas NGL 5.625%…
  22. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 22
    2018 Capital Program Update Previous 2018 Capital Program Updated 2018 Capital Program (as of May 2018) (as of August 2018) 700 700 630 600 585 600 85 85 500 500 Capital ( MM) Capital ( MM) 400 400 300 300 500 545 200…
  23. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 23
    Consistent Production Growth Production 26 24 22 Total Production1 (MMBOE) 20 18 16 14 12 10 8 6 4 2 0 2011 2012 2013 2014 2015 2016 2017 2018E Oil Natural Gas NGL Expected Production 10% FY-18E YoY oil production…
  24. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 24
    3Q-18 Guidance 3Q-18E Production (MBOE/d).... 71.0 Crude oil production (MBbl/d).............................. 29.1 Price Realizations (pre-hedge): Crude oil (% of WTI)..... 86% Natural gas liquids (% of WTI)......... 33% Natural…
  25. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 25
    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…
  26. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 26
    APPENDIX
  27. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 27
    Oil, Natural Gas & Natural Gas Liquids Hedges Hedge Product Summary 2H-18 FY-19 FY-20 FY-21 Oil total floor volume (Bbl) 4,796,350 8,687,000 2,196,000 912,500 Oil wtd-avg floor price (/Bbl) 47.42 47.91 47.27 45.00 Nat gas total floor…
  28. 2Q 2018 Earnings 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 depletion, depreciation and amortization, non-cash stock-based…
  29. 2Q 2018 Earnings Presentation – Laredo Petroleum Inc. – slide 29
    Supplemental Non-GAAP Financial Measure Reconciliation 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 (in thousands) Net income 68,276 61,110 11,027 408,561 86,520 33,452 Plus: Income tax expense - - - 1,800 - - Depletion, depreciation and…

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