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Q2 2020 Earnings Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Aug 5, 2020 · 22 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. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 1
    Second-Quarter 2020 Earnings Presentation
  2. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 2
    Successfully Operating in a Turbulent Macro Environment 2Q-20 Select Results vs Guidance1 Oil Production Lease Operating Expense Controllable Cash Costs Production 31.2 MBO/d 2.40/BOE 2% beat vs guidance 16% beat vs guidance…
  3. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 3
    Strategy to Increase Stakeholder Value Foundation Manage Optimize Financial Risk Existing Assets Expand High- Consolidate to Margin Inventory Increase Scale Objectives Improve Reduce Expand Target Free oil cut leverage…
  4. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 4
    Howard County Oil Productivity Drives Returns 100% 80% ROR1 (%) 60% 40% 20% LPI Leasehold Howard County Relevant 0% Offset Wells 35 40 45 50 WTI (/Bbl) Howard County Relevant Offset LPI Howard County Budget Howard…
  5. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 5
    Increased Activity Accelerates Development of Howard County DUCs 1Q-20A 2Q-20A 3Q-20E 4Q-20E FY-20E Drilling Rigs 4.0 2.4 1.0 1.0 2.1 Spuds 25 17 7 6 55 Accelerated Activity Completion Crews 1.7 0.3 0.3 1.0 0.8 Completions 28 5 0…
  6. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 6
    Howard County Development Drives Capital Efficiency Plan as of May-20 Current Plan 700 70035 35 33 600 600 31 Oil Production (MBO/d) 30 500 50029 28.4 29.0 28.4 Capital ( MM) 26.6 26.6 27 27.0 400 400 26.0 26.0 25…
  7. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 7
    Acquisitions Added Oily, High-Margin Inventory Returns on acquired inventory locations place them at the front of the development schedule High-margin (50+% oil), higher-return inventory Contiguous Midland Basin acreage positioned to…
  8. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 8
    Optimized Development Supports Consistent Oil Outperformance Optimized / Wider-Spaced Packages Deliver Oil Outperformance 180 Exceeding Type Curve by 13%1,2 160 Cumulative Oil Production (MBO) 140 120 100 80 60 40 20…
  9. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 9
    Maintaining Operational & Cost Advantages in Move to Howard County Drilling & Completions Efficiencies 1,600 Drive Continued Well Cost Reductions Feet per Day 1,200 Inefficiencies due to 800 suspension of completions…
  10. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 10
    Long-Term Focus on Minimizing Flaring Protects the Environment LPI Flared & Vented Natural Gas Flared & Vented Natural Gas 1,400 5% Flared & Vented Gas (MMcf) (% of Gas Production) LPI flared gas 1,200 1,000 0.3% May-20 -…
  11. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 11
    Expect to Maintain Peer-Leading LOE Demonstrated History of Reducing Unit LOE 7 6.63 6 5 4.15 3.67 /BOE 4 3.53 3.08 2.80 3 2.40 2 1 0 FY-15 FY-16 FY-17 FY-18 FY-19 1Q-20 2Q-20 Peer-Leading Operating Expenses 7 6 5…
  12. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 12
    Cost-Control Focus Drives Competitive G&A Expenses Demonstrated History of Reducing Unit G&A1 5 4.03 4 3.45 2.85 3 /BOE 2.40 2 1.57 1.33 1.02 1 0 FY-15 FY-16 FY-17 FY-18 FY-19 1Q-20 2Q-20 Peer-Leading G&A1 Expenses…
  13. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 13
    Active Derivatives Strategy Manages Price Risk and Supports Cash Flow Bal-201 Hedged Product Volumes (MBOE) FY-21 Hedged Product Volumes (MBOE) 6,000 8,000 7,355 7,087 4,802 7,000 5,000 6,000 4,000 5,000 3,000 4,000 1,993 3,000…
  14. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 14
    Actively Managing our Balance Sheet and Debt Ratios 2.4x Net Debt to Adj. EBITDA1,2 (as reported) 2.6x Net Debt to Consolidated EBITDAX1 (Credit Agreement calculation) 800 700 450 600 Debt ( MM) 600 500 400 400 300 275…
  15. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 15
    L A R E D O P E T R O L E U M APPENDIX
  16. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 16
    Guidance Production: 3Q-20 4Q-20 FY-20 Total production (MBOE/d) 83.5 - 85.5 78.0 - 80.0 85.5 - 86.5 Oil production (MBO/d) 24.2 - 25.2 20.5 - 21.5 26.2 - 26.8 Average sales price realizations: 3Q-20 (excluding derivatives) Oil (%…
  17. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 17
    Commodity Prices Used for 3Q-20 Realization Guidance Oil: WTI NYMEX Brent ICE (/Bbl) (/Bbl) Jul-20 40.77 43.24 Aug-20 41.42 44.15 Sep-20 41.79 44.53 3Q-20 Average 41.32 43.96 Natural Gas Liquids: C2 C3 IC4 NC4 C5+ Composite…
  18. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 18
    Strip Pricing WTI Brent HH (/Bbl) (/Bbl) (/MMBtu) Bal-20 41.45 44.60 2.45 FY-21 43.40 46.90 2.75 FY-22 44.80 48.85 2.55 19 Note: Utilizing 8-3-20 strip pricing
  19. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 19
    Oil, Natural Gas & Natural Gas Liquids Hedges Hedge Product Summary Bal-20 FY-21 FY-22 Oil total volume (Bbl) 4,802,400 7,354,750 2,920,000 Oil wtd-avg price (/Bbl) - WTI 59.50 Oil wtd-avg price (/Bbl) - Brent 63.07 51.11 46.40 Nat…
  20. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 20
    Supplemental Non-GAAP Financial Measures Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that we define as net income or loss plus adjustments for share-settled equity-based compensation, depletion, depreciation and…
  21. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 21
    Supplemental Non-GAAP Financial Measure Consolidated EBITDAX (Credit Agreement Calculation) Consolidated EBITDAX means, for any Person for any period, the Consolidated Net Income of such Person for such period, plus each of the…
  22. Q2 2020 Earnings Presentation – Laredo Petroleum Inc. – slide 22
    Supplemental Non-GAAP Financial Measure Net debt to TTM Adjusted EBITDA Net Debt to TTM Adjusted EBITDA is calculated as net debt divided by trailing twelve-month Adjusted EBITDA. Net debt is calculated as the face value of debt, reduced…

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