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February 2014 Corporate Presentation – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Feb 11, 2014 · 41 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. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 1
    Corporate Presentation February 2014
  2. February 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. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 3
    Concentrated Asset Portfolio Focused in Midland Basin Mitchell Howard 143,212 net acres1 65% held by production1 Sterling 90% average working interest2 Glasscock 85+ miles Multiple horizontal zones in addition to the…
  4. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 4
    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…
  5. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 5
    Permian Reserves By Product 204 MMBOE as of 12/31/13 1 Permian Reserve Growth 250 45% 55% 200 Oil Natural Gas (1,300 btu) 150 MMBOE By Category 100 204 160 35% 50 101 65% 0 Proved Developed Proved…
  6. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 6
    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…
  7. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 7
    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 8 NYSE: LPI www.laredopetro.com
  8. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 8
    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…
  9. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 9
    Permian Production Growth 70 60 50 MBOE/D 40 33.4 - 34.8 30 24.8 20.7 20 14.8 10 0 2011 2012 20131 2014P 2015P 2016P 1Preliminary 10 NYSE: LPI www.laredopetro.com
  10. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 10
    Permian Basin: Present Day LPI acreage Cline deposition axis Wolfcamp deposition axis Present day axis Delaware Basin N 0 100 miles 11 NYSE: LPI www.laredopetro.com
  11. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 11
    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 12 NYSE: LPI www.laredopetro.com
  12. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 12
    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 13 NYSE: LPI www.laredopetro.com
  13. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 13
    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…
  14. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 14
    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+…
  15. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 15
    Vertical Program Data Collection Garden City Data Inventory 1 Howard Mitchell 3,400 of whole cores in objective section 13 whole cores 650 SWC samples 34 single-zone tests from objective Sterling section (Spraberry to…
  16. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 16
    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…
  17. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 17
    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 18 NYSE: LPI www.laredopetro.com
  18. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 18
    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…
  19. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 19
    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…
  20. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 20
    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…
  21. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 21
    Offset Pad Development Offset pad configuration provides the optimal geometry to fully drain a section 22 NYSE: LPI www.laredopetro.com
  22. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 22
    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…
  23. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 23
    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…
  24. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 24
    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…
  25. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 25
    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…
  26. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 26
    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% ROR (%)…
  27. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 27
    Sales Price Diversification 1 Firm transportation out of the Permian 10,000 BOPD committed to Longhorn, increasing annually to 22,000 BOPD over 5 years Cushing Eliminates Mid/Cush basis differential Wichita Falls Benefit from LLS…
  28. February 2014 Corporate Presentation – 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 Sterling Plt 62 MMcf/D Ector Midland Glasscock…
  29. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 29
    Preserving Financial Flexibility 1 1.4 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 - 1,500 Debt…
  30. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 30
    Oil Hedges Open Positions As of February 1, 2014 2014 2015 2016 2017 2018 Total OIL (1) Puts: Hedged volume (Bbls) 495,000 456,000 - - 951,000 Weighted average price (/Bbl) 75.00 75.00 - - - 75.00 Swaps: Hedged volume (Bbls)…
  31. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 31
    Natural Gas Hedges Open Positions As of February 1, 2014 2014 2015 2016 2017 2018 Total (1) NATURAL GAS Swaps: Hedged volume (MMBtu) 5,508,000 - - - - 5,508,000 Weighted average price (/MMBtu) 4.32 - - - - 4.32 Collars: Hedged…
  32. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 32
    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…
  33. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 33
    Appendix
  34. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 34
    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…
  35. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 35
    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…
  36. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 36
    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…
  37. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 37
    Hz Lower Wolfcamp Type Curve Type Curve 4 long lateral wells presented Presented on 2-stream basis 1,000 EUR - MBOE 605 - 730 30-Day IP - BOE/D 574 - 690 % Oil - (IP Life) 77% - 69% BOE/D 100 668 MBOE B-factor for all…
  38. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 38
    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, 2 1, 2 10 1 Months Months EUR - MBOE 550 - 690 30-Day IP -…
  39. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 39
    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…
  40. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 40
    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…
  41. February 2014 Corporate Presentation – Laredo Petroleum Inc. – slide 41

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