University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013

University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013
April 30, 2013

University of Texas at Austin Energy Symposium 2013
      Energy Innovation and Entrepreneurship

                                                    NYSE: LPI
University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013
Forward-Looking / Cautionary Statements
This presentation (which includes oral statements made in connection with this presentation) contains forward-looking statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included in this presentation that address activities, events or
developments that Laredo Petroleum Holdings, Inc. (the “Company”, “Laredo” or “LPI”) assumes, plans, expects, believes or anticipates will or may occur in the future are forward-looking
statements. The words “believe,” “expect,” “may,” “estimates,” “will,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify
forward-looking statements, which are generally not historical in nature. However, the absence of these words does not mean that the statements are not forward-looking. Without limiting
the generality of the foregoing, forward-looking statements contained in this presentation specifically include the expectations of plans, strategies, objectives and anticipated financial and
operating results of the Company, including as to the Company’s drilling program, production, hedging activities, capital expenditure levels and other guidance included in this presentation.
These statements are based on certain assumptions made by the Company based on management’s expectations and perception of historical trends, current conditions, anticipated future
developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the
Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to financial performance and
results, current economic conditions and resulting capital restraints, prices and demand for oil and natural gas, availability of drilling equipment and personnel, availability of sufficient capital
to execute the Company’s business plan, impact of compliance with legislation and regulations, successful results from our identified drilling locations, the Company’s ability to replace reserves
and efficiently develop and exploit its current reserves and other important factors that could cause actual results to differ materially from those projected as described in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2012, and other reports filed with the Securities and Exchange Commission (“SEC”).
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise, except as required by applicable law.
The SEC generally permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are reserve estimates that geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions and certain probable and possible reserves that meet the SEC’s
definitions for such terms. In this presentation, the Company may use the terms “unproved reserves”, “unbooked resource potential”, “estimated ultimate recovery”, “EUR” or other
descriptions of volumes of reserves, which the SEC guidelines restrict from being included in filings with the SEC. The Company does not choose to include unproved reserve estimates in its
filings with the SEC. “Unproved reserves” refers to the Company’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered
with additional drilling or recovery techniques. “Unbooked resource potential” is used by the Company to refer to the estimated quantities of hydrocarbons that may be added to proved
reserves, largely from a specified resource play. A resource play is a term used by the Company to describe an accumulation of hydrocarbons known to exist over a large areal expanse and/or
thick vertical section, which, when compared to a conventional play, typically has a lower geological and/or commercial development risk. Estimated ultimate recovery, or “EUR”, refers to the
Company’s internal estimates of per well hydrocarbon quantities that may be potentially recovered from a hypothetical future well completed as a producer in the area. Unproved reserves,
EURs and unbooked resource potential, may not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or SEC rules and do
not include any proved reserves. Actual quantities that may be ultimately recovered from the Company’s interests will differ substantially. Factors affecting ultimate recovery include the scope
of the Company’s ongoing drilling program, which will be directly affected by the availability of capital, drilling and production costs, availability of drilling services and equipment, drilling
results, lease expirations, transportation constraints, regulatory approvals and other factors, as well as actual drilling results, including geological and mechanical factors affecting recovery
rates. Estimates of unproved reserves, EURs and unbooked resource potential may change significantly as development of the Company’s core assets provide additional data. In addition, the
Company’s production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the
undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases.
This presentation includes financial measures that are not in accordance with generally accepted accounting principles (“GAAP”), including Adjusted EBITDA. While management believes that
such measures are useful for investors, they should not be used as a replacement for financial measures that are in accordance with GAAP. For a reconciliation of Adjusted EBITDA to the
nearest comparable measure in accordance with GAAP, please see the Appendix.

University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013
Technological Innovations Create Step Changes

                           Offshore Drilling

Rotary Drill Bit

                                                 Horizontal Drilling and
                                                  Hydraulic Fracturing

University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013
Horizontal Drilling & Hydraulic Fracturing: Unlocking Potential

   Horizontal drilling, hydraulic fracturing and long-reach laterals   Groundwater    Water wells >1,000
                                                                           aquifer           feet
   Multi-stage horizontal fracturing

   Fracturing fluids and techniques
                                                                                       Steel casing and
   Seismic and other geophysical analysis of drilling locations
                                                                                      cement to protect
   Reductions in environmental impacts (pad drilling, water
    conservation and recycling, reformulation of additives, etc)                        Protective
                                                                                       steel casing

                       Shale fractures

                                                                                      10,000+ Feet
     Horizontal Drilling and Hydraulic Fracturing Have Revolutionized the Oil and Gas Industry
University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013
Shale Gas Revolutionized North American Natural Gas Development

    Large-scale application
     of horizontal drilling
     and hydraulic
     fracturing techniques
     in the shale plays
     began in the early
    Since 2005, shale gas
     production has been
     increasing by about
     50% per year.

University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013
Oil Shale Revolution Changing U.S. Energy Landscape

                                      U.S. Avg Daily Oil Production (1970-2015)


                                                                                                    Oil Shale
Thousand Barrels per day

                            8,000                                                                   Revolution




                                    1970          1975           1980   1985   1990   1995   2000      2005      2010   2015

                                           Source: EIA, Raymond James                                                    6
University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013
Where is it Coming From?

University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013
Energy Independence Now a Real Speaking Point

North American Energy Independence
   and Security are now possible

University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013
“L” Companies have Capitalized on the Changing Energy Landscape

     1991   1992     1993   1994     1995   1996   1997    1998   1999   2000   2001   2002   2003   2004    2005   2006   2007    2008   2009   2010   2011   2012

     Colt Resources Corp.                     Lariat Petroleum, Inc.               Latigo Petroleum, Inc.                    Laredo Petroleum, Inc.
   Sold to JN Resources in 1996                Sold to Newfield in 2001            Sold to Pogo Producing                         Founded in October 2006
          for $33.5 million                        for $333 m illion               in 2006 for $750 million
    Equity Investor: First Reserve            Equity Investor: Warburg Pincus     Equity Investors: Warburg Pincus            Equity Investor: Warburg Pincus

  ($ millions)
   Equity Utilized                                                                                                                          $2,750

   Debt Utilized

   Sales Price / Enterprise Value


                                                                  $333                   $360
            $13         $33.5                                                                                                                $710
                                                    $74                                  $160
  Focus Areas:

                       A 20+-Year History of Generating Significant Value for Investors
University of Texas at Austin Energy Symposium 2013 Energy Innovation and Entrepreneurship - April 30, 2013
The “L” Company Culture

INTEGRITY – Always do the right thing.

STEWARDSHIP – Take care of the company,
  industry and environment.

RESPECT – Treat people everywhere the way you
  want to be treated.

TEAMWORK – One company working together to
  achieve common goals.

SUCCESS – Driven to succeed and plan for success.
Critical Elements for “L” Companies

 Plan for success from day one

 Determine your strengths

 Determine area of concentration

 Develop a business plan

 Secure “correct” equity funding

The Private Equity Market

    INVESTORS                                       Advantages
•   Pension funds                                    Fast Access to Capital
•   Endowments                                       Strategic Advice
•   Foundations                                      Formal Structure
    Bank holding
                                                     Credibility
                          Private Equity Provider
•   High-net-worth
    individuals                                     Disadvantages

•   Investment banks
                                                     Fast Equity Dilution

•   Corporations                                     Strategic Advice
•   Other investors                                  Formal Structure
                                                     Investment Cycle

Requirements for Private Equity Partners

 Compatibility

 Access to significant capital

 Long-term investment cycle

 Understand oil and gas industry risk and reward

 Strategic advice / experience

 Allow a strong outside board of directors

Warburg Pincus: Strong Track Record Supporting E&P Companies
Warburg Pincus: Sample of their Worldwide Energy Companies:

   Warburg Pincus’ philosophy of not “over leveraging” entities provides prudent balance sheet
   Management leverages Warburg Pincus’ relationships and industry contacts to support Company
   Warburg Pincus has taken over 120 of their portfolio companies public
   Laredo formed through a $600 million equity commitment from Warburg Pincus and members of

Laredo Overview

 Market Cap: ~$2.4 Billion
 Total Enterprise Value: ~$3.6 Billion

Total Company
  Permian oil focused
  Low-risk drilling inventory >10 years
  Proved reserves: 188.6 MMBOE1
  Average daily production: ~33.3 MBOE/D
   during Q4-20121
  Sound financial structure
      • Rapidly growing cash flow from
      • Operational and financial flexibility
        maintains capital options
          1   Production and reserves reported on a two-stream basis. Reserves are gas price adjusted to reflect NGL benefit. Proved reserves per Ryder Scott evaluation at 12/31/12, at SEC pricing.
Concentrated Asset Portfolio Focused in Permian Basin

                                                                          China Grove

Delaware                                                                       Garden City

                                                               Permian Basin – ~203,500 net acres 1

                                                               • ~85% of total company reserves
                                                               • ~69% of Q4-2012 total production
                                                               • ~92% working interest - average

           1   Acreage totals as of 12/31/12.                                                         16
Consistent Growth in Reserves and Production

                                Permian oil is driving repeatable growth

                               Reserves                                                                                                        Production                            34.5-35.9
        200                                                                      188.6                             35
        180                                                                                                                                                                   30.9
                                               136.6                              48%                              25                                                  23.7           19.0
        120                                                      64%                                                                                                          17.3


                                                                                                                                                        14.3           14.5
         80                                                                                                        15
         60   44.2
                                                                                                                   10                                    9.8
                                                                                  52%                                                                                                 16.2
         40                   89%                                                                                                                                             13.6
                                                                36%                                                          4.2           8.4
              92%                              33%                                                                 5                                                   9.2
               8%             11%                                                                                            3.7                         4.5
         -                                                                                                         0         0.5           1.4
              2008           2009             2010             2011              2012                                      2008          2009          2010            2011   2012 2013 E

              Successful transition to                                                                                              2013
              higher value oil reserves                                                                             25% growth in oil production
                                                                                                                    Targeting 15% total production growth

                     Reserves reported on a two-stream basis with gas price adjusted to reflect NGL benefit; per Ryder Scott evaluation at 12/31/12, at SEC pricing.
                     Production data includes production from Broad Oak Energy, Inc. on a combined basis and presented on a two-stream basis.                                                    17
                     CAGR in MBOE/D production from 2008 through midpoint of projected 2013.
Permian Basin: Multiple Targets of Opportunity




85+ miles


                  LPI Acreage                                                      Tom Green                        Commercial horizontal
              LPI Horizontal Wells
                   Upper Wolfcamp
                                                                                                                    development has been
                      Middle Wolfcamp                                                Irion                         proven for all four zones
                      Lower Wolfcamp
                                                                                                                       from >60 wells
                                                            20+ miles
                                  1   Well counts as of 2/28/13
                                  2   Based on 2012 and 2013 completions with at least 30 days of production history as of 2/28/13             18
Identified Resource Potential – De-risked Acreage To-Date

        1800                                                                                Identified Resource Potential1
                                              1,415 +                     1,600 +
                                                                                            De-risked Resource Potential of greater
                                                                                             than 1,600 MMBOE

                                                                                            Additional upside to resource potential for
                                                                                             continued delineation of:
        1000                                                                                    •   Hz Upper Wolfcamp
                                                                                                    Hz Middle Wolfcamp

                                                                                                •   Hz Lower Wolfcamp
        800                                                                                     •   Hz Cline
        600                                                                                 15+ year of development opportunities
                                                                                            Development of our identified resource
                    189                                                                      potential will require access to additional
        200                                                                                  capital

                                                                                                •   Debt capital markets
               Estimated Total              Additional                   Identified             •   Equity capital markets
               Proved Reserves              De-risked                    De-risked
                  12/31/12                  Resource                     Resource
                                            Potential                     Potential

                       1   De-risked acreage and resource potential totals as of 2/28/13
Laredo’s Debt Financing
    Strong bank group

          $825 million Revolving Credit Facility from commercial banks

          Comprehensive risk management program

    Public debt

          $550 million HY 9.5% Senior Notes due 2019

          $500 million HY 7.375% Senior Notes due 2022

    Laredo’s Bank Group Includes:

Laredo’s Initial Public Offering

Advantages to public equity                  Disadvantages to public equity
 Access to capital                           Expensive and time consuming
 Increased liquidity                         Restrictions
 Public currency for acquisitions            Broader shareholder base
 Enhanced benefits for current employees     Reduced control

What Are The Next Innovations in Oil and Gas?

                                         Horizontal Drilling and
                                          Hydraulic Fracturing
                     Offshore Drilling

Rotary Drill Bit

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