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January 2014 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Jan 31, 2014 · 37 slides

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Slides

  1. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation January 2014
  2. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 2
    Laredo Petroleum Today High-quality acreage position in the fairway of the Midland Basin Midland Basin Top-tier well results in multiple horizons Delaware Basin Significant resource potential: 10x existing reserves 1…
  3. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    Concentrated Asset Portfolio Focused in Midland Basin Mitchell Howard 141,230 net acres1 65% held by production1 Sterling 90% average working interest2 Glasscock 85+ miles Multiple horizontal zones in addition to the…
  4. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    2013 Mid-Year Reserve Update By Product 183 MMBOE as of 6/30/131 Permian Reserve Growth 200 42% 180 58% 160 140 Oil Natural Gas (1,300 btu) 120 Mmboe 100 By Category 183 80 160 60 40% 101 40 60% 20 0…
  5. January 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 1,000 800 600 400 183 200 0 LPI Estimate Additional Identified Additional Total…
  6. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    2014 Capital Program Total Capital - 2014 1,000 MM Drilling & Completion 840 MM Facilities 130 MM Land & Seismic 20 MM Other 10 MM Drilling & Completion Facilities Land & Seismic Other 7 NYSE: LPI www.laredopetro.com
  7. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    Drilling & Completion Capital Drilling & Completion 840 MM Hz Development 55% Vertical Development 30% Hz Delineation 10% Non-operated 5% Number of Rigs / Wells 6-7 Horizontal Rigs Development: 60 - 65 Delineation: 10 - 12…
  8. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    Permian Production Growth 70 60 50 MBOE/D 40 33.4 - 34.8 30 24.4 - 24.7 20.7 20 14.8 10 0 2011 2012 2013P 2014P 2015P 2016P 9 NYSE: LPI www.laredopetro.com
  9. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Permian Basin: Present Day LPI acreage Cline deposition axis Wolfcamp deposition axis Present day axis Delaware Basin N 0 100 miles 10 NYSE: LPI www.laredopetro.com
  10. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    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 11 NYSE: LPI www.laredopetro.com
  11. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    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 12 NYSE: LPI www.laredopetro.com
  12. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    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…
  13. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    Vertical Wolfberry: Confirms Quality of Acreage1 Mitchell Howard 800 vertical Wolfberry wells across acreage 300 deep vertical Wolfberry wells through the Atoka Sterling Glasscock Average well density is 85+ miles…
  14. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    Proven Multi-zone Horizontal Performance Average 30-day IP results from the Upper, Middle and Lower Wolfcamp at Howard Mitchell high end or exceeding type curve Horizontal Total of Long Lateral Zone Completions1 30-Day Average…
  15. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    Concentration of Resources Drives Efficiencies Not to scale Represents 5,000 ft 3 sections / 64 wells 4 Zones Reserves: 44 MMBOE 1 rig program: 5+ years D+C 16 NYSE: LPI www.laredopetro.com
  16. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    Lateral Spacing Reservoir Simulation1 Distance between Distance between wells 1,500 Ft. wells 500 Ft. Reservoir Modeling Goals Optimize economics 20-year reservoir drainage Maximize recovery simulation supports 660-ft spacing…
  17. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    Side-by-Side Conceptual Design 1 mile Side-by-Side Design Two side-by-side wells both drilled in one zone Lateral lengths: 7,000 7,500 feet Spacing: 660 feet 3 miles Objectives Optimize spacing Minimize interference Frac…
  18. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    Muti-Zone Development in 2014 Stacked Lateral 4-Stacked 3-Stacked 2-Stacked Development 28 wells 18 wells 14 wells 2014 program expected to drill 60 stacked laterals utilizing 20 multi-well pads First 3-well stacked pad…
  19. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    Offset Pad Development Offset pad configuration provides the optimal geometry to fully drain a section 20 NYSE: LPI www.laredopetro.com
  20. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    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…
  21. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    Production Impact From Multi-Well Pads One Rig, 4-Well Stacked Pad Drilling Example 6000 5000 Production 2nd Pad Production Impact (Gross BOE/D) 4000 Production 1st Pad 3000 2000 1000 Wells Spud, Drill and Complete 0…
  22. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    Fluid / Gas Management Plan Water well pit Water wells Well pad Multi- line corridor Oil gathering Off lease wtr disposal HP gas lift/HP Sale LP gas gathering Rig fuel gas Flowback water Treated water SR/ET…
  23. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    Cost Savings Initiatives Pad drilling efficiencies Multi-well frac efficiencies Negotiated service cost reductions Coil Pumping services Wireline logging Frac tank Optimizing drilling and completions operations Anticipated…
  24. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    Sales Price Diversification Firm transportation out of the Permian 10,000 BOPD committed to Longhorn, increasing annually to 23,000 BOPD over 5 years Cushing Eliminates Mid/Cush basis differential Wichita Falls Benefit from LLS…
  25. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    Processing Plant Capacity With LPI Direct Connectivity Rawyhide Plt Bearkat Plt 75 MMcf/D High Plains 60 Conger Plt Plt MMcf/D 25 MMcf/D 200 MMcf/D Deadwood Plt Sterling Plt Roberts Ranch Plt Sprawberry Plt 60 MMcf/D 62…
  26. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    Preserving Financial Flexibility 1.1 billion of liquidity 1,200 1,000 Credit Facility - Borrowing Base Growing borrowing base 800 MM 600 No near-term maturities 400 200 Strong financial metrics - Debt (less…
  27. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    Expanding Cash Margin 80 70% 70 65% 60 60% 50 55% /BOE % Oil 40 50% 30 45% 46.39 43.08 20 39.97 40% 36.70 36.54 35.40 36.26 10 35% 0 30% 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 Cash margin Lease…
  28. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 28
    Appendix
  29. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 29
    Hz Upper Wolfcamp Type Curve Type Curve 25 long lateral wells presented 1,000 Presented on 2-stream basis EUR - MBOE 715 - 800 30-Day IP - BOE/D 675 - 754 % Oil - (IP Life) 77% - 69% BOD/D 100 758 MBOE B-factor for all…
  30. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 30
    Hz Middle Wolfcamp Type Curve Type Curve 4 long lateral wells presented Presented on 2-stream basis 1,000 EUR - MBOE 600 - 700 30-Day IP - BOE/D 569 - 659 % Oil - (IP Life) 77% - 69% BOE/D 100 650 MBOE B-factor for all…
  31. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 31
    Hz Lower Wolfcamp Type Curve Type Curve 4 long lateral wells presented Presented on 2-stream basis EUR - MBOE 605 - 730 1,000 30-Day IP - BOE/D 574 - 690 % Oil - (IP Life) 77% - 69% BOE/D 100 668 MBOE B-factor for all…
  32. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 32
    Hz Cline Type Curve BOEPD/Frac Stage normalized data from 5 Long lateral wells presented 36 wells presented 100 1,000 BOD/D/STAGE BOE/D 10 100 1 1 10 1 Months Months EUR - MBOE 550 - 690 30-Day IP - BOE/D…
  33. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 33
    Sample Wolfcamp Hz 3-Stream Conversion 2-Stream - Wellhead Conversion 3-Stream Natural Gas 30-Day IP 740 Mcf/D Gas Shrinkage Factor: 25% % of Total Volume: 15% 986 Mcf/D Wellhead Gas % of Total Volume: 23% 30-Day IP 158 Bbl/D…
  34. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 34
    Sample Cline Hz 3-Stream Conversion 2-Stream - Wellhead Conversion 3-Stream Natural Gas 30-Day IP 906 Mcf/D Gas Shrinkage Factor: 25% % of Total Volume: 17% 1,208 Mcf/D Wellhead Gas % of Total Volume: 27% 30-Day IP 193 Bbl/D…
  35. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 35
    Adjusted EBITDA Reconciliation Three months ended September 30, Nine months ended September 30, (in thousands) 2013 2012 2013 2012 Net income (loss) ..................................................................... 12,543…
  36. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 36
    Guidance Fourth quarter 2013 Production (MMBOE) 2.1 - 2.2 Crude oil % of production 57% Price Realizations (pre-hedge, two-stream basis, % of NYMEX): Crude Oil 90% - 95% Natural Gas, including natural gas liquids 135% - 145%…
  37. January 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 37

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