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1Q 2019 Earnings Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · May 2, 2019 · 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. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 1
    First-Quarter 2019 Earnings Presentation
  2. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 2
    2019: A Transitional Year Operating Tailoring operational cadence & corporate cost structure to balance capital expenditures and cash flow from operations within Protected cash flow by restructuring Bal-19 and FY-20 hedges,…
  3. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 3
    2019 Capital Program Demonstrates Flexibility & Discipline 700 644 600 FY-19E FY-19E Updated 500 465 Budget Plan Capital ( MM) Average FY Rig Count 1.8 2.3 400 365 Average FY Completions Crew Count 0.9 1.3 300 Completions…
  4. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 4
    Restructured Hedges Underpin Updated Plan Original Budget Bal-19 Original Budget FY-20 54.00 Per BO 47.91 Per BO 54.15 Per BO 47.27 Per BO Internal Price Deck Weighted-Avg. Floor Internal Price Deck Weighted-Avg. Floor 90%…
  5. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 5
    Right Sized Our Cost Structure As Promised LPI (FY-18 & 2Q-19E) vs Peer (FY-18) Cash G&A Expense 4 Cash G&A Expense (/BOE) 3 2.40 2.00 2 1 0 Peer Peer Peer LPI FY-18 Peer Peer Peer LPI 2Q-19E YoY annualized cash &…
  6. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 6
    Improving Well Costs & Higher Pricing Bolster Well Returns 8.0 40% 7.7 7.5 35% 35% 30% 7.0 Per Well Cost ( MM) Per Well ROR (%) 7.0 25% 25% 23% 20% 15% 6.0 10% 5% 5.0 0% YE-18 FY-19E Budget FY-19E Updated Plan…
  7. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 7
    Delivering on Wider Spacing Earlier than Promised Wells per DSU Formation Development Zone NAV/ ROR/ Tight Spacing Wide Spacing 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…
  8. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 8
    1Q-19 Production and Controllable Cash Costs Versus Guidance Oil Production (MBO/d) Lease Operating Expense (/BOE) 1Q-19 Actual 3.34/BOE 28.2 0.00 Guidance Range 3.50 1Q-19 Guidance 27.5 G&A Cash Expense (/BOE) Target 27.5…
  9. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 9
    1Q-19 Highlights 33% 11% 2% 500 M 1.8x More Decrease in unit LOE & unit cash Oil production Decrease in per Net debt to completions G&A expense beat vs 1Q-19 well costs versus Adjusted than originally from FY-18 guidance…
  10. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 10
    Substantial Reduction in Controllable Cash Costs 14 12 LOE & Cash G&A (/BOE) 10 8 6 4 2 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 4Q-18 1Q-19 LOE (/BOE) Cash G&A…
  11. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 11
    History of Improving Efficiencies Expected to Continue Gross Completed Lateral Feet Per Crew 500 450 Thousand Gross Completed Lateral Feet per Crew 400 350 300 250 200 150 100 50 0 2017 2018 2019E Full-year…
  12. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 12
    Oil Value Enhanced Via Gulf Coast Access Long-Haul Connectivity Via Medallion: Medallion firm transportation secured for all crude oil produced within dedication area Long-haul connectivity maximized, as Medallion offers delivery…
  13. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 13
    Natural Gas Operational Assurance & Value Protection LMS assets provide field-level optionality to move production to an alternate purchaser when needed Targa processes 95% of LPIs liquids- rich natural gas volumes 70% of bal-19E…
  14. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 14
    Hedging Underpins Continuous Operations 18,000 16,000 14,000 Volumes (MBOE) 12,000 10,000 8,000 6,000 4,000 2,000 0 Commodity Basis Commodity Basis Commodity Basis Bal-19 FY-20 FY-21 Crude Natural Gas NGL 5.625%…
  15. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 15
    Maintaining A Strong Balance Sheet 1.8x net debt to Adjusted EBITDA1 Debt Maturity Summary 700 600 900 MM of available liquidity2 Debt ( MM) 500 L +1.25% 400 300 5.625% 6.250% 200 100 0 2019 2020 2021 2022 2023 800…
  16. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 16
    Redefined Development Strategy Translates to Increased Value Development Strategy wider-spacing development + measured growth Reduce Increase Improve future Cash flow ROR vs. long-term oil decline neutrality tighter-spaced…
  17. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 17
    APPENDIX 18
  18. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 18
    2Q-19 Guidance 2Q-19E Total production (MBOE/d)... 78.5 Oil production (MBbl/d)........................................ 28.5 Average sales price realizations (without derivatives): Oil (% of WTI).... 95% NGL (% of WTI)..........…
  19. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 19
    Transitional Year With a Focus on Cash Flow Neutrality Expected Activity 1Q-19A 2Q-19E 3Q-19E 4Q-19E Drilling Rigs 3 2 2 2 Updated Plan Spuds 14 12 12 10 Completion Crews 2.0 1.2 1.0 1.0 Completions 20 12 9 11 Drilling Rigs…
  20. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 20
    Contiguous Acreage & Robust Infrastructure Are Strategic Cornerstones 345 miles of crude, water & natural gas 1Q-19 Infrastructure Impact gathering, recycled water distribution & natural gas 11 MM of net benefits from capital…
  21. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 21
    Significant Benefits Through Water Infrastructure Investments Water Infrastructure LPI leasehold Water storage 115 miles of water gathering & distribution Water treatment facility Water lines Water corridor benefits pipelines…
  22. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 22
    Organically Grew Total Proved Reserves in 2018 YE-18 Total Proved Reserves Reserves By Category 300 PUD Total Proved Reserves (MMBOE) 9% 250 1 2 238 216 44 200 (25) PDP 150 91% 100 50 Reserves By Product 0 Oil 26%…
  23. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 23
    YE-18 Total PDP Reserves 5-Year Decline Exit-Rate Net Total Base Production 80 Net Total Base Production 70 60 (MBOE/d) 50 40 30 20 10 0 YE-18 YE-19 YE-20 YE-21 YE-22 YE-23 Year 1 Year 2 Year 3 Year 4 Year 5…
  24. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 24
    YE-18 Oil PDP Reserves 5-Year Decline Exit-Rate Net Oil Base Production 35 Net Oil Base Production 30 25 (MBO/d) 20 15 10 5 0 YE-18 YE-19 YE-20 YE-21 YE-22 YE-23 Year 1 Year 2 Year 3 Year 4 Year 5 Decline Rate -44%…
  25. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 25
    Oil, Natural Gas & Natural Gas Liquids Hedges Hedge Product Summary 2Q-19 - 4Q-19 FY-20 FY-21 Oil total floor volume (Bbl) 6,875,000 7,539,600 912,500 Oil wtd-avg floor price (/Bbl) 60.42 58.79 45.00 Oil total floor volume w.…
  26. 1Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 26
    Hedge Settlement Details Other than the oil basis swaps, the Company's oil derivatives are settled based on the month's arithmetic average of the daily settlement prices for the NYMEX index price for the first nearby month of the West…
  27. 1Q 2019 Earnings Presentation – 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…

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