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August 2014 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Aug 1, 2014 · 31 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. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation August 2014
  2. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 2
    Laredo Petroleum Today High-quality, contiguous acreage position in the heart of the Midland Midland Basin Basin Top-tier well results in multiple horizons Delaware Basin Significant resource potential: 8x existing reserves 1…
  3. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    Concentrated Asset Portfolio Focused in Midland Basin Mitchell Howard 145,423 net acres1 Proven Hz development in four stacked zones (Upper, Middle & Sterling Glasscock Lower Wolfcamp and Cline) yields 360,000 net…
  4. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    Permian Reserves 1 By Product 577% Production Replacement at 12.00/BOE Permian Reserve Growth 45% 250 50 55% 45 204 200 40 160 35 Oil Natural Gas (1,300 btu) 150 30 MMBOE /BOE 25 By Category 100 101 20…
  5. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    Identified Path for Growth 3,400 3,200 3,000 2,800 2,600 2,400 2,200 MMBOE (2-Stream) 2,000 1,800 1,400 1,600 1,600 1,400 1,200 1,000 800 600 400 204 200 0 Total Proved Additional Identified Additional Total…
  6. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    Horizontal Development Inventory 1 3,500 horizontal locations have Howard Mitchell been identified for development in the initial four zones More than 45 years of drilling inventory at current pace Glasscock Sterling 85+…
  7. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    Low-Risk Horizontal Inventory on De-Risked Acreage Upper Middle Lower Market Valuation Cline Wolfcamp Wolfcamp Wolfcamp Number of completions 1 44 18 10 10 LPI type curve EUR (2-stream) 758 MBOE 650 MBOE 668 MBOE 620 MBOE % EUR…
  8. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    Recently Announced Acquisitions 1 Entered into agreements to acquire 9,741 net acres for 203 million Expected to add 280 gross horizontal drilling locations and 142 MMBOE of net resource potential 7,700 net acres are contiguous…
  9. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Consistent Permian Production Growth 70 Production growth is driven 60 by a rapid increase in 50 horizontal volumes1 MBOE/D 1 40 30.4 32.1 30 25.0 20.7 20 14.8 10 0 2011 2012 2013 2014P 2015P 2016P 1 Two-stream…
  10. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    Vertical Wolfberry: Confirms Quality of Acreage1 Mitchell Howard 850 vertical Wolfberry wells across acreage 375 deep vertical Wolfberry wells through the Atoka Sterling Glasscock Average vertical well density is 85+…
  11. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    Significant Data Inventory Garden City Data Inventory 1 3,400 of whole cores in objective Howard section Mitchell 13 whole cores 650 SWC samples 48 single-zone tests from objective section (Spraberry to Ellenberger) 8,000…
  12. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    Proven Multi-zone Horizontal Performance Commercial development has been proven for initial four zones from 122 horizontal wells Horizontal Total of 30-Day Avg. IP Rate Zone Completions1 per 1,000 Lat Ft Short Lateral Long…
  13. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    Concentration of Resources Drives Efficiencies Not to scale Represents 5,000 ft 3 sections / 64 wells / 4 Zones 4-stacked development program recovers 44 MMBOE of reserves at 45% ROR Single-zone development (UWC) only…
  14. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    Transitioning to Muti-Zone Development in 2014 Stacked Lateral 4-Stacked 3-Stacked 2-Stacked Development 2014 program expected 60 wells total to drill 60 stacked lateral wells utilizing 20 multi-well pads Efficiency gains are…
  15. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    Production Corridor Oil Gathering Station Oil Takeaway Pipeline LMS Owned Gathering Line Gas Lift Compression Facility LMS Owned Gathering Line Production corridor can accommodate the 448 horizontal wells necessary to…
  16. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    Cost Savings Initiatives Pad drilling efficiencies Multi-well frac efficiencies Negotiated service cost reductions Optimizing drilling and completions operations Reduction in transportation cost Improved water management…
  17. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    ROR vs Well Capital Costs Permian Well Costs Upper Middle Lower (MM) Cline Vertical Wolfcamp Wolfcamp Wolfcamp 2014 Budget 7.4 7.4 8.1 8.6 2.2 2014 YE Target 6.8 6.8 7.5 8.0 1.9 90/Bbl and 3.75/Mcf 70% 60% 4-stack 50% ROR%…
  18. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    Sales Price Diversification1 Firm transportation out of the Permian 13,000 BOPD committed to Longhorn, increasing annually to 22,000 BOPD in 4 years Cushing Wichita Falls 10,000 BOPD committed on BridgeTex Colorado City 2014…
  19. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    Processing Plant Capacity With LPI Direct Connectivity Rawhide Plt Conger Plt 75 MMcf/D 25 MMcf/D Bearkat Plt 60 MMcf/D Processor DCP Midstream High Plains Plt 200 MMcf/D Atlas Glasscock Sterling Plt 62 MMcf/D Ector Midland…
  20. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    Preserving Financial Flexibility 1.2 billion of liquidity1 1,200 1,000 Credit Facility - Borrowing Base Growing borrowing base 800 MM 600 No near-term maturities 400 200 Strong financial metrics - 1,500 Debt…
  21. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    Oil Hedges Open Positions As of June 30, 2014 (1) BAL-2014 2015 2016 2017 2018 Total OIL (2) Puts: Hedged volume (Bbls) 270,000 456,000 - - - 726,000 Weighted average price (/Bbl) 75.00 75.00 - - - 75.00 Swaps: Hedged volume…
  22. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    Natural Gas Hedges Open Positions As of June 30, 2014 (1) BAL-2014 2015 2016 2017 2018 Total (2) NATURAL GAS Swaps: Hedged volume (MMBtu) 3,312,000 - - - - 3,312,000 Weighted average price (/MMBtu) 4.32 - - - - 4.32 Collars:…
  23. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    Laredo Investment Opportunity High-quality acreage position in the fairway of the Midland Basin Significant resource potential: 8x existing reserves Top-tier well results in multiple horizons Stacked laterals optimizing…
  24. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    Appendix
  25. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    Permian Basin: Present Day LPI acreage Cline deposition axis Wolfcamp deposition axis Present day axis Delaware Basin N 0 100 miles 26 NYSE: LPI www.laredopetro.com
  26. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    Laredo Situated Over Thickest Column of Sediment: W-E West East A A Approx. 2,000 ft. of pay Cline Laredo Acreage 1 Modified from Core-Lab, 2013 27 NYSE: LPI www.laredopetro.com
  27. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    Laredo Situated Over Thickest Column of Sediment: N-S North South B B Approx. 2,000 ft. of pay Cline Laredo Acreage 1 Modified from Core-Lab, 2013 28 NYSE: LPI www.laredopetro.com
  28. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 28
    Laredos Permian-Garden City Shales1 Significant oil in place in multiple stacked zones Spraberry Wolfcamp Cline A/B/W Combined Depth (ft) 5,000 7,000 7,000 8,500 9,000 9,500 9,500 10,500 5,000 10,500 Average Thickness (ft) 1,500…
  29. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 29
    Horizontal Type Curves 1,000 1,000 Upper Wolfcamp Lower Wolfcamp BOE/D BOE/D 100 758 MBOE 100 668 MBOE Two-stream Two-stream 10 10 Months Months 1,000 Middle Wolfcamp Cline 1,000 BOE/D BOE/D 100 650 MBOE…
  30. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 30
    Efficiency Gains from Pad Drilling Drill and Complete Days For Individual Well 1 2 5 15 30 52 0 20 Days 40 60 Efficiency Gain for 4-Well Pad vs 4-Well Individual Program 52 52 52 52 3 135 15 18 2 40-Day Efficiency…
  31. August 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 31
    2013 Reserve Update 1 487% Production Replacement 577% Permian Production Replacement 250 55 204 200 189 Permian Reserves 150 (29) (11) MMBOE Permian Reserves 100 50 0 Total Proved Sales of Total…

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