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3Q 2018 Earnings – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Nov 5, 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. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 1
    Third-Quarter 2018 Earnings Presentation
  2. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 2
    3Q-18 Highlights & FY-18 Expectations 6% Daily total production growth QoQ from 2Q-18 71 net wells Increased anticipated FY-18E net horizontal completions 17% Increased anticipated FY-18E BOE production growth 1.4x Net debt…
  3. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 3
    3Q-18 Guidance vs. Actuals Guidance Actuals Production (MBOE/d)... 71.0 71.4 Crude oil production (MBbl/d) 29.1 28.8 Price Realizations (pre-hedge): Crude oil (% of WTI).... 86% 87% Natural gas liquids (% of WTI)........ 33% 37%…
  4. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 4
    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 FY-18E YoY BOE production…
  5. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 5
    2018 Current Capital Program 2018 Capital Program 700 630 Completing 71 net wells 600 85 10,400 avg. Hz lateral length 500 Capital ( MM) 96% avg. working interest 400 Operational efficiencies enabling a 300 reduction from…
  6. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 6
    Focusing on Improving Capital Efficiency & Returns Wells per DSU Formation Development Zone NAV/ ROR/ High Density Low Density UW-AB UWC UW-CD 12 - 16 4-8 Wells Wells UWE-MWA MW-B MWC MW-C 12 - 16 4-8 Wells Wells MW-D…
  7. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 7
    Higher-Density Development Increases Value per DSU Higher-Density Development Cumulative Oil Production Results 200 150 MBO 100 50 1% uplift vs LPI oil type curve 0 0 50 100 150 200 250 300 350 400 450 Producing…
  8. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 8
    Yearly BOE Completions Performance 600 2015 Cumulative Total Production 2016 Cumulative Total Production 600 500 500 400 400 MBOE MBOE 300 300 200 200 100 Peak Performance: +15% 100 Peak Performance: +44% Current…
  9. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 9
    Yearly Oil Completions Performance 2015 Cumulative Oil Production 2016 Cumulative Oil Production 250 250 200 200 MBO 150 150 MBO 100 100 50 Peak Performance: +19% 50 Peak Performance: +40% Current performance: -4%…
  10. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 10
    Achieved New Drilling Days Record in 3Q-18 Average Drilling Days from Rig Accept to Rig Release 16 14 Days per 10,000' (Normalized) 13.4 12 11.4 10 10.8 10.6 9.6 8 9.0 8.6 6 4 2 0 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18…
  11. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 11
    Completions Efficiencies Improving Cycle Times Completions Crew Performance 450 400 420 406 Thousand Lateral Feet Per Crew 350 300 313 309 286 250 266 200 226 150 100 50 0 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18…
  12. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 12
    Continued Efficiency Improvements Gross Completed Lateral Feet Per Rig 225,000 200,000 175,000 Completed Feet per Rig +12% gross 150,000 completed lateral feet/rig 125,000 original from initial budget FY-18 budget…
  13. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 13
    Continued Focus on Operating Costs Unit LOE Cost 8 7 6 5 /BOE 4.00/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 3Q-18 Nine Quarters below 4.00/BOE 14
  14. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 14
    Increasing Adjusted EBITDA Per Average Net Debt-Adjusted Share 0.50 100 Adj. EBITDA/Avg. Net Debt-Adjusted Share 90 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…
  15. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 15
    Maintaining A Strong Balance Sheet 1.4x net debt to Adjusted EBITDA1 Debt Maturity Summary 500 450 No public debt due until 2022 400 Debt ( MM) 350 1.3 B borrowing base & 1.2 B elected 5.625% 300 commitment reaffirmed in…
  16. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 16
    Stock Repurchase Program - Update 11,048,742 shares of common stock repurchased with a weighted-average share price of 8.78/share 250 Repurchase ( MM) 200 150 87 97 100 58 50 0 1Q-18 2Q-18 3Q-18 1Q Repurchase 2Q…
  17. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 17
    Consistent Financial Hedging Program 16,000 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 5.625% 6.250% Crude Natural…
  18. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 18
    4Q-18 Guidance 4Q-18E Production (MBOE/d).... 70.5 Crude oil production (MBbl/d).............................. 28.2 Price Realizations (pre-hedge): Crude oil (% of WTI)..... 90% Natural gas liquids (% of WTI)......... 33% Natural…
  19. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 19
    Positioned For The Future Operational Efficiencies Strong Balance Sheet facilitated by contiguous acreage provides flexibility Production Corridors Investment Optionality reducing costs & enabling enhances shareholder value…
  20. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 20
    APPENDIX
  21. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 21
    Oil, Natural Gas & Natural Gas Liquids Hedges Hedge Product Summary 4Q-18 FY-19 FY-20 FY-21 Oil total floor volume (Bbl) 2,398,175 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…
  22. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 22
    Crude Flow Assurance Supported By LMS & Medallion Infrastructure Medallion firm transportation secured for all dedicated-acreage volumes, including expected future growth Long-haul connectivity maximized, as Medallion offers…
  23. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 23
    Oil Value Protected Via Gulf Coast Access & Financial Contracts 35 2018 Net Crude Volume Protected From 2019 30 Midland Basis (MBOPD) 25 20 15 10 5 0 4Q-18 1Q-19 2Q-19 3Q-19 4Q-19 1 Bridgetex Firm Dedicated Gulf…
  24. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 24
    Natural Gas Operational Assurance & Value Protection LMS assets provide field-level optionality to move production to an alternate purchaser when needed Targa processes 90% of LPIs liquids-rich natural gas volumes 70% of 4Q-18…
  25. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 25
    Significant Benefits Through Water Infrastructure Investments LPI leasehold Water Infrastructure Water storage Water treatment facility Water lines Water corridor benefits 110 miles of water gathering & distribution pipelines…
  26. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 26
    Information for Slides 9 & 10 Horizontal drilling in unconventional wells using enhanced completions techniques, including but not limited to hydraulic fracturing, is a relatively new process and, as such, forecasting the long-term…
  27. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 27
    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…
  28. 3Q 2018 Earnings – Laredo Petroleum Inc. – slide 28
    Supplemental Non-GAAP Financial Measure Reconciliation-Continued 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 (in thousands) Net income 68,276 61,110 11,027 408,561 86,520 33,452 55,050 Plus: Income tax expense - - - 1,800 - - 1,387…

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