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2014 IPAA OGIS New York – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Apr 9, 2014 · 36 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. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 1
    2014 IPAA OGIS New York April 9, 2014
  2. 2014 IPAA OGIS New York – 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: 10x existing reserves…
  3. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 3
    Concentrated Asset Portfolio Focused in Midland Basin Mitchell Howard 143,212 net acres1 Proven Hz development in four stacked zones (Upper, Middle & Sterling Glasscock Lower Wolfcamp and Cline) yields 360,000 net…
  4. 2014 IPAA OGIS New York – 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. 2014 IPAA OGIS New York – 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. 2014 IPAA OGIS New York – 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. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 7
    2014 Approved Capital Budget Total Capital - 2014 Drilling & Completion 1,000 MM 840 MM Number of Rigs / Wells 6-7 Horizontal Rigs Development Wells: 90% Delineation Wells: 10% 5 Vertical Rigs Development: 120 - 125…
  8. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 8
    Consistent Permian Production Growth 70 Production growth is driven 60 by a rapid increase in 50 horizontal volumes1 MBOE/D 1 40 33.4 - 34.8 30 25.0 20.7 20 14.8 10 0 2011 2012 2013 2014P 2015P 2016P 1 Two-stream…
  9. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 9
    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 vertical well density is 85+…
  10. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 10
    Significant Data Inventory Garden City Data Inventory 1 Howard Mitchell 3,400 of whole cores in objective section 13 whole cores 650 SWC samples 43 single-zone tests from objective Sterling section (Spraberry to Ellenberger)…
  11. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 11
    Proven Multi-zone Horizontal Performance Commercial development has Mitchell been proven for initial four Howard zones from 96 horizontal wells Horizontal Total of Long Lateral Zone Completions1 30-Day Average IP2 Sterling…
  12. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 12
    Production History Supports Type Curves 150 150 Upper Wolfcamp Lower Wolfcamp 104% of Type Curve 111% of Type Curve 100 758 MBOE 100 Two-stream 668 MBOE MBOE Two-stream MBOE 50 50 - - 0 90 180 270 360 Days 0 90 180…
  13. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 13
    Northern Midland Basin Creaming Curve (Hz since 2008)1 Laredos well results continue to improve 400 350 LPI - Reagan LPI - Glasscock First 3 months cumulative production (MBOE) 300 250 Apache 200 Parsley Pioneer 150…
  14. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 14
    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…
  15. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 15
    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…
  16. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 16
    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…
  17. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 17
    Production Impact From Multi-Well Pads One Rig, 4-Well Stacked Pad Drilling Example 6,000 5,000 Production 2nd Pad Production Impact (Gross BOE/D) 4,000 Production 1st Pad 3,000 2,000 1,000 Wells Spud, Drill and…
  18. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 18
    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…
  19. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 19
    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 Proppant sourcing…
  20. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 20
    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% 50% 4-stack ROR…
  21. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 21
    Sales Price Diversification 1 Firm transportation out of the Permian 10,000 BOPD committed to Longhorn, increasing annually to 22,000 BOPD over 4 Cushing years; plus Wichita Falls 10,000 BOPD committed to BridgeTex (Mid- 2014)…
  22. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 22
    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…
  23. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 23
    Preserving Financial Flexibility 1.4 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…
  24. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 24
    Oil Hedges Open Positions As of January 1, 2014 (1) 2014 2015 2016 2017 2018 Total OIL (2) Puts: Hedged volume (Bbls) 540,000 456,000 - - - 996,000 Weighted average price (/Bbl) 75.00 75.00 - - - 75.00 Swaps: Hedged volume (Bbls)…
  25. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 25
    Natural Gas Hedges Open Positions As of January 1, 2014 (1) 2014 2015 2016 2017 2018 Total (2) NATURAL GAS Swaps: Hedged volume (MMBtu) 5,508,000 - - - - 5,508,000 Weighted average price (/MMBtu) 4.32 - - - - 4.32 Collars:…
  26. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 26
    Laredo Investment Opportunity High-quality acreage position in the fairway of the Midland Basin Significant resource potential: 10x existing reserves Top-tier well results in multiple horizons Stacked laterals optimizing…
  27. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 27
    Appendix
  28. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 28
    Permian Basin: Present Day LPI acreage Cline deposition axis Wolfcamp deposition axis Present day axis Delaware Basin N 0 100 miles 29 NYSE: LPI www.laredopetro.com
  29. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 29
    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 30 NYSE: LPI www.laredopetro.com
  30. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 30
    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 31 NYSE: LPI www.laredopetro.com
  31. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 31
    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…
  32. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 32
    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 60 60 Months Months 1,000 1,000 Middle Wolfcamp Cline BOE/D BOE/D 100…
  33. 2014 IPAA OGIS New York – 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. 2014 IPAA OGIS New York – 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. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 35
    Expanding Cash Margin 80 70% 70 65% 60 60% 50 55% /BOE % Oil 40 50% 30 45% 49.67 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 4Q-13 Cash…
  36. 2014 IPAA OGIS New York – Laredo Petroleum Inc. – slide 36
    2013 Reserve Update 1 487% Production Replacement 250 55 204 200 189 29 11 150 MMBOE 100 50 0 Total Proved Sales of Total Additions and Total Proved Reserves Reserves Production Revisions Reserves…

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