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September 2019 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Sep 4, 2019 · 23 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. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    L A R E D O P E T R O L E U M Corporate Presentation September 2019
  2. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 2
    Laredo Petroleum Overview Laredo Petroleum (LPI) Market Cap1: 589 MM; Enterprise Value2: 1,568 MM Operations: Permian Basin (TX), Headquarters: Tulsa, OK 55.9 30.4 1.7x MMBO PDP MBOPD oil Net Debt to oil reserves3 production4 Adj.…
  3. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    2019: A Transformational Year Optimized operations Moved to wider-spaced development Aligned personnel 30 MM/year annualized cash & non-cash expenses & capital costs with activity savings expected Reconstructed Senior New…
  4. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    Wider Spacing Improves Oil Productivity 120 Yellow Rose Cumulative Oil Production 100 Yellow Rose package is outperforming per 10,000 (MBO) offset tighter-spaced package by 25% 80 60 40 1.3 MMBOE UWC/MWC Type Curve (400…
  5. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    Wider Spacing & Reduced Well Costs Improve IRR Per Well Costs & 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 FY-19…
  6. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    Lowest Cash Costs Among Permian Peers 9.82 9.70 Peer Avg. 7.86 7.71/BOE Cash G&A 7.08 6.82 Expense1 6.41 6.27 4.69 LOE1 2Q-19 2Q-19 2Q-19 2Q-19 2Q-19 2Q-19 2Q-19 2Q-19 Peer Peer Peer Peer Peer Peer Peer LPI 40%…
  7. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    Higher FY-19 Oil Guidance, Maintaining Capex & Generating Free Cash 750 30 644 27.9 Oil Production 28 27.9 (MBO/d) 537 27.3 ( MM) 26.5 495 26 500 465 465 465 24 365 365 22 250 20 4 FY-18A FY-19 Original FY-19…
  8. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    Operational Efficiencies Pulling Activity Forward Operating Activity by Quarter Actual/Future Activity 1Q-19A 2Q-19A 3Q-19E 4Q-19E Drilling Rigs 3.0 2.6 2.0 2.0 Spuds 14 14 12 10 Completion Crews 2.0 1.2 1.0 0.3 Completions 20 12…
  9. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    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…
  10. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    Cline Reintroduced As Primary Target 300 250 Production (MBO) Cumulative Oil 200 150 100 50 0 10 16 11 12 13 14 14 15 17 0 12 24 36 48 60 83 0 166 249 332 415 498 581 664 747 830 913 996…
  11. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    Regional Cline Returns Compete With UWC/MWC 300 Production (MBO) 250 Cumulative Oil 200 150 100 50 0 10 12 366 24 731 36 1096 48 1461 60 Months Regional Cline 1.0 MMBOE Type Curve (400 MBO) UWC/MWC 1.3 MMBOE Type…
  12. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    Existing Infrastructure Reduces Operating Costs 345 miles of crude, water & natural gas 12 consecutive quarters with gathering, recycled water distribution & natural gas unit LOE less than 4.00/BOE distribution pipelines 7…
  13. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    Infrastructure Protects The Environment & Enhances Economics LPI In-Place Infrastructure 60 Miles 170 miles Crude oil gathering pipelines Natural gas gathering pipelines 110 Miles 54 MBWPD Water gathering & distribution pipelines…
  14. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    Oil Value Enhanced Via Gulf Coast Access Gross Physical Transportation Contracts: Medallion firm transportation secured for all crude oil produced within dedication area 10 MBOPD firm transportation on Bridgetex through 1Q-22, with…
  15. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    2019 Product Hedges Protect Cash Flow 65 3.50 60.42 3.09 HH Price (/MMBtu) 60 WTI Price (/Bbl) 3.00 55.52 55 2.50 2.37 50 2.00 45 40 1.50 Strip LPI Strip LPI % Hedged1 Oil: 95% Natural Gas: 70% 1.50 NGL Price…
  16. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    Stronger Than Expected Cash Flow Generation Used To Pay Down Debt 700 1.7x net debt to 600 Adjusted EBITDA1 495 600 500 465 Debt ( MM) 906 MM of 500 available liquidity2 400 ( MM) 400 296 285 300 300 210 200 169 200…
  17. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    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…
  18. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    L A R E D O P E T R O L E U M APPENDIX
  19. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    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…
  20. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    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.…
  21. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    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…
  22. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    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,…
  23. September 2019 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    Cash Flow & 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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