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Acquisition of Glasscock Property – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Dec 10, 2019 · 19 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. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 1
    L A R E D O P E T R O L E U M Corporate Presentation December 2019
  2. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 2
    Laredo Petroleum Overview Laredo Petroleum (LPI) Market Cap1: 595 MM; Enterprise Value2: 1,550 MM Operations: Permian Basin (TX), Headquarters: Tulsa, OK 30 Growing Production Oil 81.9 MBOEPD Total Production3 NGL 3Q-19 total…
  3. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 3
    Pivoting Strategy to Increase Stakeholder Value Target consistent Free Cash Flow1 generation and oil growth per net debt-adjusted share Continuous In Process Opportunistic Improve corporate Increase scale Optimize existing returns…
  4. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 4
    Acquisition Strategy Supports Oil Growth & Free Cash Flow Generation FY-20 & FY-21 5 Expectations: Cumulative Undiscounted Cash Flow ( MM) Mid-to-high single digit annual oil growth 0 40% oil mix by YE-21 (5) 100 MM…
  5. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 5
    Howard County Tier-One Acquisition Delivers Higher-Margin Production 130 MM acquisition price1, well below historic Howard County averages High-margin, tier-one acreage 7,360 net acres / 750 net royalty acres Expected first-year…
  6. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 6
    Bolt-On Glasscock County Acquisition Adds High-Return Inventory 65 MM purchase price 4,475 net acres 1,400 BOE/d (55% oil) current net production 45 total gross expected locations Established Leasehold Acquired Leasehold across…
  7. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 7
    Acquisitions Add Oily, High-Margin Inventory Acquisition - L. Spraberry Clearfork Wells per DSU Inventory Upper/Middle Spraberry 4 45 Lower Spraberry Acquisition - UWC/MWC Dean Wells per DSU Inventory Upper Wolfcamp 8 - 12 120…
  8. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 8
    Surpassing Guidance on Production & Expenses 3Q-19 Select Results Oil Production Lease Operating Expense Controllable Cash Costs Production 27.8 MBO/d 3.00/BOE 2% beat vs guidance 10% beat vs guidance Total Production G&A…
  9. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 9
    Optimizing Well Productivity and Costs on Existing Acreage 2019 Wider-Spaced Well Results 100 Wider-spaced packages are outperforming Production (MBO) LPIs oil type curve by 18%, reiterating the Cumulative Oil 80 Companys…
  10. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 10
    Demonstrated Discipline and Continuous Improvement Drive Cash Flow 750 28.5 Oil Production 28.1 644 27.9 28.0 27.9 (MBO/d) 27.3 530 27.5 ( MM) 537 495 500 465 465 465 490 27.0 26.5 365 365 26.5 26.0 250 25.5…
  11. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 11
    Hedging Strategy Reduces Impact of Commodity Price Fluctuations 60 58.79 3.50 HH Price (/MMBtu) WTI Price (/Bbl) 55 3.00 52.38 2.72 50 2.50 2.41 45 2.00 40 1.50 Strip 2 LPI Strip2 LPI 2020 Vol Hedged1 Oil: 7,539,600…
  12. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 12
    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…
  13. Acquisition of Glasscock Property – 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. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 14
    L A R E D O P E T R O L E U M APPENDIX
  15. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 15
    4Q-19 Guidance Production: Total production (MBOE/d) 76.5 Oil production (MBbl/d) 26.0 Average sales price realizations: (excluding derivatives) Oil (% of WTI) 99% NGL (% of WTI) 20% Natural gas (% of Henry Hub) 29% Operating…
  16. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 16
    Oil, Natural Gas & Natural Gas Liquids Hedges Hedge Product Summary 4Q-19 FY-20 FY-21 Oil total floor volume (Bbl) 2,300,000 7,539,600 912,500 Oil wtd-avg floor price (/Bbl) 60.42 58.79 45.00 Oil total floor volume w. deferred…
  17. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 17
    Supplemental Financial Calculations Net debt to Adjusted EBITDA Net Debt to Adjusted EBITDA is calculated as net debt as of September 30, 2019 divided by trailing twelve-month Adjusted EBITDA ending September 30, 2019 of 555 million.…
  18. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 18
    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 income taxes, depletion, depreciation and amortization, impairment expense,…
  19. Acquisition of Glasscock Property – Laredo Petroleum Inc. – slide 19
    Free Cash Flow and Projected Free Cash Flow Free Cash Flow does not represent funds available for future discretionary use because those funds are required for future debt service, capital expenditures, working capital, income taxes,…

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