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September 2014 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Sep 29, 2014 · 33 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 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation September/October 2014
  2. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 2
    Concentrated Asset Portfolio Focused in Midland Basin 154,374 net acres1 Proven Hz development in four stacked Howard Mitchell zones (Upper, Middle & Lower Wolfcamp and Cline) Potential additional zones for Hz development…
  3. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    Permian Reserves 1 Permian Reserve Growth Identified Path for Growth 250 50 3,400 3,200 45 3,000 204 2,800 200 40 2,600 35 2,400 160 MMBOE (2-Stream) MMBOE (2-Stream) 2,200 150 30 2,000 1,600 /BOE 1,800 25…
  4. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    Concentrated Multi-Zone Horizontal Development 1 3,700 horizontal locations have been identified for development in the initial four zones 50% of acreage is ready for multi-zone development in initial four zones with potential in…
  5. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    Recent Acreage Acquisitions Acquired 9,741 net acres for 203 million 7,700 net acres are contiguous to existing leasehold, with 6,900 net acres adjacent to full-scale development areas Increases working interest in current…
  6. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    Permian Production Growth Initial Delineation Accelerated Delineation Development Testing Multi-well Pad Development 40 35 30 25 MBOE/D 20 15 10 5 0 1Q-11 2Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12…
  7. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    Significant Data Confirms Acreage Quality Data drives development Howard plan optimization Mitchell Data inventory supported by tests from 875 vertical wells 3,700 of whole cores in objective section 14 whole cores 650 SWC…
  8. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    Laredos Earth Model Optimizes Acreage Development Analysis shows correlation between earth model and actual test results Field Development The Earth Model Operations High-grading of acreage Where Technology Hydraulic Frac Design…
  9. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Laredos Top 15 Horizontal Wells Outstanding productivity in all four zones 30-day IP Rate 30-day IP Rate Lateral Peak 24-hr Peak 30-day as a % of per 1,000 Well Name Zone Length IP Rate1 Avg IP Rate1 Type Curve2 Lateral Feet1…
  10. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    Proven Multi-Zone Horizontal Performance Commercial development has been proven for initial four zones from 122 horizontal wells Total of 30-Day Avg. IP Rate per Zone Completions1 1,000 Lateral Feet Short Long BOE/D BOE/D…
  11. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    Concentration of Resources Drives Efficiencies Not to scale Represents 5,000 ft Laredo is focused on developing the entire resource and maximizing operational efficiency by drilling stacked laterals on multi-well pads and…
  12. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    Muti-Zone Development 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 Drilling efficiencies from stacked laterals are…
  13. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    Multi-Well Pads Drive Drilling Efficiencies 40 35 29% 23% 30 16% 25 7% Days to Drill 20 15 10 5 0 UWC MWC LWC Cline 2013 Avg. 2Q-2014 14 NYSE: LPI www.laredopetro.com
  14. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    Production Corridor Oil Gathering Station Oil Takeaway Pipeline Oil Gathering Line Gas Lift Compression Facility Gas Gathering Line Production corridors leverage Laredos resource concentration and contiguous acreage…
  15. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    Production Corridor Benefits Crude Oil Realized pricing uplift on volumes delivered into gathering system versus trucked volumes Sustainable management of lower crude oil inventories Safety and emissions benefits of minimized truck…
  16. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    Horizontal Well Economics 100% 60% Upper Wolfcamp Lower Wolfcamp 80% 40% 60% ROR % ROR % 40% 20% 20% 0% 0% 7.5 7.0 6.5 6.0 8.0 7.5 7.0 6.5 Capital Cost (MM) Capital Cost (MM) 80% 60% Middle Wolfcamp Cline 60% 40%…
  17. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    Ongoing Completion Optimization Proppants Completion Methods Resin Coated Sand (ongoing) Engineered Fracs (18) Ceramics (3) Coiled Tubing (1.5) Brown Sand (3) Completion Optimization Measurement Proppant Quantity…
  18. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    Initial 10,000 Lateral Test Results Preliminary results suggest IRRs of 50% - 100% on incremental capital 200 Upper Wolfcamp Lateral: 9,350 BOE/Day/1000 150 100 50 0 0 30 60 90 Days 300 Cline Lateral: 9,700 250…
  19. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    Sales Price Diversification1 Firm transportation out of the Permian 13,000 BOPD committed to Longhorn, increasing annually to 22,000 BOPD in 4 Cushing years Wichita Falls Colorado City 10,000 BOPD committed on BridgeTex…
  20. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    Medallion Pipeline Laredo is anchor shipper with committed volumes of 10,000 BOPD increasing to 30,000 BOPD over the next three years Provides access to premium pricing in WTI or U.S. Gulf Coast markets (LLS) while avoiding the…
  21. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    Commodity Hedges Oil Natural Gas 25,000 120,000 80.99 Floor 100,000 20,000 89.45 Floor 80,000 15,000 3.93 Mcf/D BO/D 60,000 Floor 4.80 10,000 Floor 40,000 5,000 20,000 0 0 2H-2014P 2015P 2H-2014P 2015P…
  22. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    Laredo Investment Opportunity High-quality acreage position in the fairway of the Midland Basin Significant resource potential: 8x existing reserves in currently delineated acreage and zones Top-tier well results in multiple…
  23. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    Permian Basin: Present Day LPI acreage Cline deposition axis Wolfcamp deposition axis Present day axis Delaware Basin N 0 100 miles 25 NYSE: LPI www.laredopetro.com
  24. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    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 26 NYSE: LPI www.laredopetro.com
  25. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    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 27 NYSE: LPI www.laredopetro.com
  26. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    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…
  27. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    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…
  28. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 28
    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…
  29. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 29
    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 Solid financial metrics - 1,500 Debt…
  30. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 30
    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…
  31. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 31
    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:…
  32. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 32
    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…
  33. September 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 33
    Sample Horizontal 2-Stream to 3-Stream Conversion 2-Stream 30-Day IP 3-Stream 30-Day IP 702 BOE/D 841 BOE/D Gas Gas 15% 25% Oil 20% Increase Oil NGL 75% 62% 23% 30% Shrinkage Factor Dry Gas: 750 Mcf/D 1,334 Btu Gas:…

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