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December 2018 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Dec 1, 2018 · 27 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. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    December 2018 Corporate Presentation
  2. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 2
    YTD-18 Highlights & FY-18 Expectations Increased FY-18E BOE production growth from initial 17% budget of 10% YoY growth 71 net wells Increased FY-18E net Hz completions from initial budget of 62.5 net wells 50% Growth in cash…
  3. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    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…
  4. December 2018 Corporate Presentation – 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. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    Company Record Drilling Efficiencies Average Drilling Days from Rig Accept to Rig Release 16 14 Days per 10,000' (Normalized) 13.3 12 11.4 11.4 10 10.6 9.6 8 8.9 8.6 6 4 2 0 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18…
  6. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    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 3Q-18 High-grading of…
  7. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    Combined 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…
  8. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    Low 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 9
  9. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Improving Per Share Value 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 3Q-18 Adj. EBITDA/Avg. Net Debt-Adj.…
  10. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    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…
  11. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    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…
  12. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    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…
  13. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    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…
  14. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    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…
  15. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    Stock Repurchase Program 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 Repurchase 3Q…
  16. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    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…
  17. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    Higher-Density Development Increases Value per DSU Higher-Density Development Cumulative Oil Production Results 200 150 MBO 100 50 Flat vs LPI oil type curve 0 0 50 100 150 200 250 300 350 400 450 Producing Days…
  18. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    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…
  19. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    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%…
  20. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    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…
  21. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    APPENDIX
  22. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    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…
  23. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    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…
  24. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    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…
  25. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    Information for Slides 19 & 20 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…
  26. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    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…
  27. December 2018 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    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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