IPAA Oil and Gas Investment Symposia New York April 15th, 2013
Overview - W&T OFFSHORE (NYSE: WTI) Year ended ( in millions) December 31, 2012 Operating Locations Revenues 874.5 EBITDA 525.7 Proved Reserves (PV-10) 2,820.0 Permian Basin East Texas Dividend Yield 6.9% Capital Spending 684.9…
Why Invest in W&T Offshore Focused on organic growth through the drill bit 2013 CAPEX Budget focused on exploration Disciplined approach: drill within cash flow Balanced approach between Onshore and Offshore Offshore activity…
Exploration is the Capital Budget Focus in 2013 450 million budget weighted towards exploration and oil projects W&T Capital Budget Allocation ( in millions) Nearly half of the budget is 72 focused on offshore exploration…
Organic Growth in 2013 Exploration activities account for 2/3rds of the budget in 2013 Supports continuous, organic growth of the companys reserves in 2013 Heavier weighting in 2013 towards offshore, oil-focused projects Development…
Organic Growth with a Focus on Oil Proved Reserves (MMBoe) 120.0 Significant growth potential 100.0 from our 3P reserves 80.0 Gross resource potential extends well beyond our 3P reserves 60.0 40.0 3P Reserves (in MMBoe) 20.0…
Pricing Premiums Drive Higher Returns W&T continues to benefit from Gulf Coast oil premiums, which result in higher returns per barrel produced 130 Monthly Avg EUR Brent Spot 120 LLS Monthly 110 Average 100 W&T Average Realized…
Onshore and Offshore, a Balanced Approach for Growth Onshore Long-life reserves, lower IRRs, predictable growth in a long term outlook book reserves upfront spend cash as development occurs inventory of drilling activity for…
Balance The Offshore Component Tremendous rock properties lead to quick payback and higher IRRs IRRs often greater than 100% Deep water = Bigger risk, but much bigger rewards W&T has a large acreage position Shelf: 710,000 gross…
Exploration and Development - GOM MP 108 WC 73 2 Exploration Awaiting Completion B-1 ST: Currently drilling st 1 production: Q3 2013 B-2 ST: Spud planned Q2 2013 MC 243 Matterhorn Development & Reservoir Support HI 21 A-2 ST:…
Exploration - Deepwater GOM MC 698 Big Bend (WI: 20%, NRI: 16.7%) W&T has 357,000 gross Summary Well targeted the Big Hum sand exploratory acres in the at 15,300 feet and logged 150 feet of oil deepwater GOM covering pay in two high…
Exploration GOM Shelf SS 349 Mahogany 2013 Activity at SS 349 A Sub-Salt Exploration and Development Project (WI: 100%, NRI: 83.3%) SS 349 A-4 Summary SS 349 was the first Recomplete sub-salt discovery in the GOM, found in 1993…
Exploration GOM Shelf SS 349 A-14 Well (WI: 100%, NRI: 83.3%) Summary Targeting new A-14 Project NPV: reservoir (T-sand) with secondary 116 million target up-hole in primary field (T-Sand target only) pay (P-sand) Initial Est. Cost -…
Exploration GOM Shelf SS 349 A-15 Well (WI: 100%, NRI: 83.3%) Summary Single well bore targeting five separate sands (N,O,P,Q,Q5) Initial Est. Cost - 24.5 million SS 349 Target spud date Q3 2013 Target well depth of 14,000 A-15…
Exploration GOM Shelf MP 108 B-2 MP 108 B-1 & B-2 (WI: 100%, NRI 82%) Summary 2 wells targeting new reserve additions and production near term E Platform D Platform A Platform Initial Est. cost - 24 million per well B Target IP…
Development Deepwater GOM MC 243 Matterhorn A-2 ST (WI: 100%, NRI: 100%*) Summary Side-track well to re- establish production from the A sand at 6,800 (previous completion sanded up in Q4 2012) Initial Est. Cost - 23.8 million…
Development Deepwater GOM MC 243 A-2 well MC 243 Matterhorn Matterhorn Currently completing (WI: 100%, NRI: 100%*) TLP NPV 33 MM A-5 Well: Water injection well for pressure maintenance, expected to increase reserves on eastern sector…
Development GOM Shelf High Island 21 (WI: 100%, NRI: 81%) Summary Low risk gas and liquids development targeting the LH 20 sands Initial Est. cost - 25.0 million Target well depth 12,500 Target IP 1,500 Boepd Est. 1st production Q3…
Current Offshore Projects Driving Value Growth PROJECT Unbooked Net Resource Net Value Timing Potential (MMBoe ) (NPV10, MM) MC 698 Big Bend 5-11 200-425 2013 Sanction Deepwater Development Well 2015 First Oil SS349 A14 (T-sand only)…
Balance The Onshore Component Onshore provides: Onshore Proved Reserves (MMBoe) Long life reserves with more predictable growth 32 31 IRRs that are lower than offshore 30 29 Provides for reserve additions more 28 27 quickly than…
Exploration and Development - Onshore Yellow Rose average production mix Yellow Rose (WI: 100%, NRI: 78%) 71% crude oil, 18% NGLs, 11% gas Summary: Permian basin exploration and development project with long-life reserves 2013…
Exploration and Development - Onshore Yellow Rose Well Economics Early efforts have Vertical Wells 20 wells in 2013 focused on: Upper All in cost per well - 2.0 -2.3 MM and Lower Spraberry, Dean, and Wolfcamp Avg well depth 11,500…
Exploration and Development - Onshore Yellow Rose Average 30 Day IP - Verticals Wells 120 Implemented new W&T 101 100 completion technique 85 80 59 60 47 41 40 15 17 17 20 11 3 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1…
Exploration Onshore Potential This does not account for additional benches beyond the Wolfcamp A Yellow Rose Resource Potential (MMBoe) Estimated resource value at strip pricing 1.37 Billion 20 acre unbooked - 56 MMBoe Unbooked…
Exploration - Onshore STAR Prospect (WI: 97.6%) Low entry cost, pure exploration play Currently 147,900 net acres in six East Texas counties (St. Augustine, Shelby, Sabine, Nacogdoches, Angelina, and Jasper) with ongoing lease…
Balance The Acquisition Component W&T has proven acquisition criteria Properties generate cash flow, are financeable, and have identified upside We are a preferred buyer in the Gulf of Mexico Over 30 years of proven experience for…
Liquidity Available for Further Growth Revolving bank credit facility with 725 million borrowing base Amount available under credit facility(1) 582 million Cash balance(1) 13.3 million 20 banks in our current credit facility with…
Drilling Within Cash Flow Historically, we have not borrowed money for drilling Adj. EBITDA CAPEX, Excl. Acquisitions Acquisition CAPEX 700 600 500 ( in millions) 400 300 200 100 0 2010 2011 2012 2012 was…
Returning Cash to Investors W&T current quarterly Dividends per share 1.20 1.11 dividend is 0.08 per share 1.00 The next quarterly dividend is payable on March 29th to shareholders of record at 0.80 0.79 0.80 March 15th 0.60…
Aligned Interests: Shareholder View 60% 53.6% 50% *Average inside ownership among peers is 7% vs. W&T at 53.6% 40% 30% 20% 10% 0% WTI 2 3 4 5 6 7 8 9 10 11 12 13 *Peers include: Apache, Bill Barrett, Cabot Oil &…
How We Provide Value to Our Investors Focused on organic growth through the drill bit 2013 CAPEX Budget focused on exploration Disciplined approach: drill within cash flow Balanced approach between Onshore and Offshore Offshore…
APPENDIX
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Year Ended December 31, 2009 2010 2011 2012 ( in thousands) Net income…
2013 Guidance First Quarter Full Year Estimated Production 2013 2013 Oil and NGLs (MMBbls) 2.0 - 2.2 8.1 - 9.0 Natural Gas (Bcf) 14.2 - 15.7 52.9 - 58.5 Total (Bcfe) 26.0 - 28.7 102.0 - 112.0 Total (MMBbls) 4.3 - 4.8 17.0 - 18.7…
2012 Year End Reserves As of December 31, 2012 Total Equivalent Reserves (1) Classification of Proved Reserves Oil NGLs Natural Oil Natural Gas PV-10 (MMBbls) (MMBbls) Gas (Bcf) Equivalent Equivalent (Millions) (MMBoe) (Bcfe) Proved…
Financial Commodity Derivatives This schedule only contains open hedge positions. Settled months are not included. Brent Swaps WTI Swaps Total Swaps Barrels Swap Barrels Swap Barrels Swap Period Per Day Price Per Day Price Per Day…
Nine Greenway Plaza, Suite 300 Houston, TX 77046 Main line: 713-626-8525 Fax: 713-626-8527 Investor Relations: 713-297-8024 www.wtoffshore.com www.investorrelationswtoffshore.com
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