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Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Feb 6, 2015 · 30 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. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 1
    Corporate Presentation February 2015
  2. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 2
    Laredo Petroleum Highlights Grew Permian production 29% in 2014 Grew proved reserves 21% in 2014 Hedged thoroughly:1 More than 95% of anticipated oil production in 2015 with floors of approximately 81 per barrel2 Approximately…
  3. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 3
    Concentrated Asset Portfolio Focused in Midland Basin 186,807 gross / 154,908 net acres1 Proven Hz development in four stacked Howard Mitchell zones (Upper, Middle & Lower Wolfcamp and Cline) Potential additional zones for Hz…
  4. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 4
    2015 Budget Estimated 2015 Hz Completions 25 Drill & Complete Operated 375 MM Gross Horizontal Completions by Quarter (Operated) Non-op 55 20 Facilities 35 LMS Infrastructure 25 15 Land & Seismic 10 Other 25 525 MM 10…
  5. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 5
    Permian Production Growth Initial Delineation Accelerated Delineation Development Testing Multi-well Pad Development 50.0 45.0 40.0 35.0 30.0 MBOE/D 25.0 20.0 15.0 10.0 5.0 - 1Q-11 2Q-11 3Q-11 4Q-11…
  6. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 6
    2014 Reserve Summary (2-Stream)1 300 Permian Reserve Growth 300 55 247 247 250 250 MMBOE (2-Stream) 204 200 204 12 160 200 150 101 MMBOE 100 150 50 0 100 YE-2011 YE-2012 YE-2013 YE-2014 50 By Type PUD 43% 0…
  7. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 7
    2014 Reserve Conversion to 3-Stream 350 By Product 82 297 300 25% 47% 247 32 250 28% MMBOE 200 Oil NGL Natural Gas 150 By Type 100 50 43% 57% 0 Total Proved Natural Gas NGL Reserves Total Proved Reserves…
  8. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 8
    Upper Wolfcamp Horizontal Type Curve (3-Stream) EUR: 850 MBOE (45% oil) 250,000 Cumulative Production (BOE)1 30-day peak IP: 735 BOE/D (70% oil) 200,000 150,000 Completed lateral length: 7,500 100,000 B-factor: 1.55…
  9. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 9
    Middle Wolfcamp Horizontal Type Curve (3-Stream) EUR: 750 MBOE (50% oil) 250,000 Cumulative Production (BOE)1 30-day peak IP: 640 BOE/D (70% oil) 200,000 150,000 Completed lateral length: 7,500 100,000 B-factor: 1.55…
  10. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 10
    Lower Wolfcamp Horizontal Type Curve (3-Stream) EUR: 700 MBOE (45% oil) 250,000 Cumulative Production (BOE)1 200,000 30-day peak IP: 615 BOE/D (65% oil) 150,000 Completed lateral length: 7,500 100,000 B-factor: 1.55…
  11. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 11
    Cline Horizontal Type Curve (3-Stream) EUR: 725 MBOE (50% oil) 250,000 Cumulative Production (BOE)1 200,000 30-day peak IP: 910 BOE/D (60% oil) 150,000 Completed lateral length: 7,500 100,000 B-factor: 1.55 50,000…
  12. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 12
    Horizontal Well Economics1 60% 60% Upper Wolfcamp Middle Wolfcamp 50% 50% 40% 40% ROR (%) ROR (%) 30% 30% 20% 20% 10% 10% 0% 0% 7.0 6.5 6.0 7.0 6.5 6.0 Well Cost (MM) Well Cost (MM) 40% 40% Lower Wolfcamp Cline…
  13. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 13
    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…
  14. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 14
    Identified Path for Growth1 4,000 3,500 3,000 MMBOE (3-Stream) 2,500 2,000 2,000 1,500 1,000 500 297 0 Total Additional Additional Total Proved De-risked Potential Resource Reserves 1 Resource Resource 3…
  15. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 15
    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…
  16. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 16
    Production Corridors Enhance Long-Term Value Oil Gathering Station Oil Takeaway Pipeline Oil Gathering Line Gas Lift Compression Facility Gas Gathering Line Each production corridor Water Recycling Facility will support…
  17. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 17
    Laredo Midstream Services Introduction Laredo has built its wholly-owned gathering, transportation and marketing subsidiary, Laredo Midstream Services (LMS) Water Distribution/Recycle: Ensures water availability for simultaneous…
  18. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 18
    Medallion Pipeline Medallion is a 65,000 BO/D pipeline (expandable to 130,000 BO/D) in which Laredo owns a 49% interest Provides optionality to access premium pricing in Cushing (WTI) or U.S. Gulf Coast markets (LLS) while…
  19. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 19
    Preserving Financial Flexibility 1,200 600 million of liquidity 1 1,000 Borrowing Base 800 MM Well supported borrowing base 600 400 No near-term maturities 200 - 1,500 Debt Maturities Summary 900 950 1,000…
  20. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 20
    Credit Agreement Financial Covenants Current Ratio Current assets to current liabilities ratio must be greater than 1.0 Credit facility availability is added to current assets for purposes of the calculation Interest Coverage…
  21. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 21
    Commodity Hedges Oil Natural Gas/NGL 25,000 140,000 80.99 Floor 120,000 20,000 100,000 3.00 15,000 Floor 80,000 MMBtu/D 81.84 BO/D Floor 3.00 10,000 60,000 Floor 80.00 Floor 40,000 5,000 20,000 0 0…
  22. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 22
    Oil Hedges Open Positions As of December 31, 2014 (1) 2015 2016 2017 Total (2) OIL Puts: Hedged volume (Bbls) 456,000 - - 456,000 Weighted average price (/Bbl) 75.00 - - 75.00 Swaps: Hedged volume (Bbls) 672,000 1,573,800 -…
  23. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 23
    Natural Gas Hedges Open Positions As of December 31, 2014 (1) 2015 2016 2017 Total (2) NATURAL GAS Collars: Hedged volume (MMBtu) 28,600,000 18,666,000 - 47,266,000 Weighted average floor price (/MMBtu) 3.00 3.00 - 3.00 Weighted…
  24. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 24
    Laredo Petroleum Summary Grew Permian production 29% in 2014 Grew proved reserves 21% in 2014 Hedged thoroughly1: More than 95% of anticipated oil production in 2015 with floors of approximately 81 per barrel Approximately 65%…
  25. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 25
    Appendix
  26. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 26
    Significant Data Inventory Garden City Data Inventory 1 3,700 of whole cores in objective Howard Mitchell section 14 whole cores 715 SWC samples 56 single-zone tests from objective section (Spraberry to Ellenberger) 8,000…
  27. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 27
    PDP Reserves 5-Year Decline 140,000 120,000 100,000 Annual PDP (MBOE)1 80,000 60,000 40,000 20,000 - YE 2014 YE 2015 YE 2016 YE 2017 YE 2018 YE 2019 Year 1 Year 2 Year 3 Year 4 Year 5 12% PDP Reserve 9% PDP…
  28. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 28
    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…
  29. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 29
    Sales Price Diversification1 Firm transportation out of the Permian Cushing 16,000 BO/D committed to Longhorn, increasing annually to 22,000 BOPD in Wichita Falls three years Colorado City BridgeTex 10,000 BOPD committed on…
  30. Q4 & Full Year 2014 Financial Results – Laredo Petroleum Inc. – slide 30
    Sample Horizontal 2-Stream to 3-Stream Conversion Laredo presents 3-stream reserves and production based on gas plant economics that reflect the actual volumes recovered from the tailgate of the plant and adjust for system losses and…

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