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2Q 2019 Earnings Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Aug 1, 2019 · 17 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 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 1
    L A R E D O P E T R O L E U M Second Quarter 2019 Earnings Presentation
  2. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 2
    2019: A Transformational Year 700,000/well savings since YE-18 Optimized operations Moved to wider-spaced development 30 MM/year annualized cash & non-cash expenses & capital Aligned personnel savings expected costs with activity…
  3. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 3
    Surpassing Guidance on Production & Expenses 2Q-19A Select Results Oil Production Lease Operating Expense Controllable Cash Costs Production 30.4 MBO/d 3.16/BOE 7% Beat vs guidance 4% Beat vs guidance Total Production G&A…
  4. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 4
    Higher FY-19 Oil Guidance, Maintaining Capex & Generating Free Cash 750 30 644 27.9 Oil Production 28 27.3 27.9 (MBO/d) 537 ( MM) 26.5 495 26 500 465 465 465 24 365 365 22 250 20 FY-18A FY-19 Original FY-19…
  5. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 5
    Wider Spacing Improves Oil Productivity Initial Yellow Rose package results confirm that completed wider spacing shift is improving productivity and returns versus 2018 120 Cumulative Oil Production 100 Per 10,000 (MBO)…
  6. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 6
    Wider Spacing & Reduced Well Costs Improve IRR Per Well Costs & Drilling ROR 8 7.7 35% 7.5 31% 30% Per Well Cost ( MM) Per Well ROR (%) 7.0 25% 7 25% 20% 15% 6 10% 9% 5% 5 0% FY-18A FY-19 Original FY-19E Current FY-18A…
  7. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 7
    High-Grading Inventory to Reduce Risk & Maximize Returns UWC/MWC Combined Clearfork Wells per DSU Drill Pattern Inventory1 Upper/Middle Spraberry Lower Spraberry 8 - 12 350 - 500 Dean Upper Wolfcamp Middle Wolfcamp Regional…
  8. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 8
    Cline Reintroduced As Primary Target Due to Cost Savings Regional Cline wells exceed near-term UWC/MWC oil productivity 300 300 Cumulative Oil Production Cumulative Oil Production 250 250 200 200 (MBO) (MBO) 150 150…
  9. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 9
    2019 Product Hedges Protect Cash Flow 65 3.50 60.42 3.09 HH Price (/MMBtu) 60 WTI Price (/Bbl) 56.68 3.00 55 2.50 2.36 50 2.00 45 40 1.50 Strip LPI Strip LPI % Hedged1 Oil: 95% Natural Gas: 70% 1.50 NGL Price…
  10. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 10
    Stronger than Expected Cash Flow Generation Used to Pay Down Debt 700 1.7x net debt to 600 495 600 Adjusted EBITDA1 500 465 Debt ( MM) 905 MM of 500 available liquidity2 400 ( MM) 400 296 285 300 300 210 200 169 200…
  11. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 11
    Redefined Development Strategy Drives Free Cash Flow Generation High-Grading Free Cash Flow Inventory Optimizing Spacing Controlling Costs Improved Returns Driving Operational Efficiencies Ongoing Financial Measured Oil…
  12. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 12
    L A R E D O P E T R O L E U M APPENDIX
  13. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 13
    3Q-19 Guidance Production Total production (MBOE/d) 79.0 Oil production (MBbl/d) 27.3 Average sales price realizations: (excluding derivatives) Oil (% of WTI) 97% NGL (% of WTI) 15% Natural gas (% of Henry Hub) 20% Operating…
  14. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 14
    Oil, Natural Gas & Natural Gas Liquids Hedges Hedge Product Summary 3Q-19 - 4Q-19 FY-20 FY-21 Oil total floor volume (Bbl) 4,600,000 7,539,600 912,500 Oil wtd-avg floor price (/Bbl) 60.42 58.79 45.00 Oil total floor volume w.…
  15. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 15
    Supplemental Financial Calculations Net debt to Adjusted EBITDA Net debt to Adjusted EBITDA is calculated as net debt as of June 30, 2019 divided by trailing twelve-month Adjusted EBITDA ending June 30, 2019 of 569 million. Net debt as…
  16. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 16
    Supplemental Non-GAAP Financial Measure Adjusted EBITDA (Unaudited) Adjusted EBITDA is a non-GAAP financial measure that we define as net income or loss plus adjustments for income taxes, depletion, depreciation and amortization,…
  17. 2Q 2019 Earnings Presentation – Laredo Petroleum Inc. – slide 17
    Cash Flow and Free Cash Flow Free Cash Flow Historic Free Cash Flow is calculated as estimated cash flows from operating activities before changes in assets and liabilities, less cash and non-cash capital investments made during the…

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