Jefferies 2014 Global Energy Conference November 11-12, 2014 Houston, TX 0
W&T Offshore Overview (NYSE: WTI) Financial Summary Track Record of Growth Financial Overview Twelve Months Ended 9/30/14 12/31/13 Revenue 997.0 984.1 Adjusted EBITDA (1) 621.1 606.7 Dividend Yield (2) 2.7% 4.9% 1) See the slide…
Premium Assets in Three Prolific Basins Deepwater Gulf of Mexico 535,000 gross acres (268,000 net acres) 38% of daily production 1P reserves of 25.2 MMBoe + 1.9 MMBoe of 1P reserves for Neptune (from Woodside) 2P reserves of 41.5…
High Impact Projects Drive Long-Term Growth Deepwater success will add significant value over next several years Recent large discoveries yield multi-year reserve additions Provides increased visibility of future growth Planned…
2014 Capital Expenditures Budget Increased to 635 million Revised Capital Budget Allocation Increased Budget For Quality, High Impact Projects Deepwater GOM development at Big Bend Acquisitions: 9% and Dantzler. Revised budget…
Incremental Cash Flow Associated with Probable and Possible Reserves (1) Probables and Possibles provide hidden value and significant upside (1) Figures reflect year-end 2013 SEC price case. (2) Probable and possible reserves with no…
Proved Reserve Bookings Example 7
3P Reserves of 222 MMBoe Provides Long Term Value 63% liquids 62% liquids 68% liquids 88% liquids 61% liquids 55% liquids Substantial probable and possible reserves provide Yet to be included in this analysis are all of the…
DEEPWATER Gulf of Mexico 9
Deepwater Acquisitions Drive Growth Through acquisitions and lease sales, W&T now holds interests in 535,000 gross / 268,000 net acres in the deepwater of the Gulf of Mexico - 39% of total net offshore acres Total Newfield Woodside…
Significant Growth in the Deepwater GOM Between 2009 and 2013, average deepwater production has grown nearly 700% and proved reserves(1) are up 320%. Gross Acres have increased 345% from 2009 to now. Deepwater Net Daily Deepwater Net…
Well Positioned in the Deepwater GOM MC 538/582 Medusa VK 822/823 Virgo Cum Gross Prod: 63.2 MMBoe Cum Gross Prod: 21.7 MMBoe VK 783/784 Tahoe Avg. Gross Prod: 2.1 MBoepd Cum Gross Prod: 96.1 MMBoe Avg. Gross Prod: 7.6 MBoepd…
Deepwater Success MC 698 Big Bend MC 698 Big Bend (working interest 20%) Located about 165 miles SSE of New Orleans, LA Gross resource estimate of 30 to 65 MMBoe with potential additional 30 50 MMBoe (P75 P25)(1) MC 698 Big…
Deepwater Success MC 782 Dantzler MC 782 Dantzler (working interest 20%) Located about 160 miles SSE of New Orleans, LA Two oil discovery wells o The Dantzler 2 appraisal well MC 699 encountered 122 net feet of crude oil…
Exploration Opportunities at MC 538 Medusa Medusa (MC 538/582) acquired in 2013 (WI: 15%; NRI: 15%*) Current daily production of roughly 1,150 Boepd net to W&T (85% oil) Medusa spar is also the host facility for the W&T owned…
Neptune Field Neptune Field (WI: 20.0%, NRI: 17.5%) Atwater Valley 574, 575 and 618 Current estimated daily production rate of 1,750 Boe, net to W&Ts interest Water depth of 6,200; TLP is situated on Block 574 where the water…
Neptune Field and Other Woodside Acquisition Upside Neptune Upside Drilling Northern half of field has never been tested due to salt overhang. Significant upside exists to potentially double the size of the field. Gas-lift…
Multi Well Potential at Ewing Bank 910 EW 910 Field Current Drilling Plans Water depth of 560 feet Initial two well drilling program in a 50% / 50% JV, Cumulative field production of with potential for third well thereafter, in 2015…
Deepwater GOM Production Growth Outlook Deepwater production, predominantly oil, is expected to grow over 50% to a rate of 23,500 Boe per day in January 2016(2) Mboe per day Repeatable deepwater growth We anticipate 1 - 2…
SHELF Gulf of Mexico 20
Well Positioned on Shelf Fairway Field & SS 208 Yellowhammer Plant Cum Gross Prod: 453.5 MMBoe Recent acquisition of remaining Well, Platform & Pipeline Work 35.7% WI for 18.2MM HI 111 Company Operated Cum Gross Prod: 80.1 MMBoe…
GOM Shelf Exploration at Ship Shoal 349 SS 349 Mahogany Continued Sub-Salt Exploration & 2014 Activity at SS 349 Development Success (WI: 100%, NRI: 83.3%) SS 349 A-17 Mahogany production 76% oil SS 349 A-6 Exploration well…
Development GOM Shelf SS 349 Mahogany A-16 Well bring SS 359 A14 Log forward production from zones SS 349 identified above the T-sand in the A- A Platform A 14 well M sand (WI: 100%, NRI: 83.3%) Targets the M, N, O, and P sand…
Mahoganys prolific P & T Sand Mahogany's primary field pay P Sand has cumulatively produced over 22.5 MMBO since 1997 from multiple wells T Sand is 3,000 feet deeper and better quality than P Sand Upside potential up-dip from…
Mahogany A-14 T-Sand Strong Production Current Rate is 2,767 Boe net (3,321 gross) Production is 75% crude oil Cumulative production 1,298,000 Boe net (1,558,000 Boe gross) Steady production indicates strong water drive and/or large…
Exploration GOM Shelf EC 321 A-2 ST (WI: 100%, NRI: 83.3%) EC 321 A & B platforms Summary Targeting new reserves in the Lentic 1 sand by drilling a side-track from the existing A-2 well bore EC 321 A-2 ST Target well depth 8,500…
PERMIAN BASIN 27
Permian Basin: Overview of Asset and Activity Permian Basin (WI: 100%, NRI: 78%) 32,000 net acres with 26,000 highly contiguous net acres in the heart of the Northern Midland Basin portion of the Permian Basin Current drilling…
Permian Basin Northern Midland Basin Portion Potential Horizontal Targets W&Ts approximately 28,000 gross acre leasehold in the Yellow Rose Field is located in the Northern Midland Basin, slightly east of the basin axis. Deep…
Stacked Lateral Drilling W&T is moving towards multi-well pad drilling with stacked laterals to efficiently unlock the value of the stacked pay resource potential. 30
Significant Activity Near W&T Acreage 31
Permian Basin Horizontal Well Fracture Stimulation Currently evaluating both hybrid and slickwater fracture stimulation treatments to stimulate our horizontal wells On the last five horizontal wells we have performed two slickwater…
Untapped Reserve and Inventory Growth Potential 33
Liquidity Available for Further Growth Revolving bank credit facility of 1.2 billion with an 750 million borrowing base Borrowing base(1) at 750 million with facility maturity of Nov. 2018 As of October 31, 2014, cash on hand ( 26.1…
Drilling Within Cash Flow Historically, we have not borrowed money for drilling ( in millions) 35
Returning Cash to Investors W&T has paid four normal quarterly dividends of Dividends and Yield 0.10 per share in 2014 (Paid in March, June 2014 and September 2014; dividend 8.0% declared in November, payable in 4 year average…
How We Provide Value to Our Investors Continued focus on organic growth activity Active exploration program providing significant potential for reserve additions Disciplined approach: drill within cash flow Balanced Asset…
APPENDIX 38
Reconciliation of Net Income to Adjusted EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Twelve Months Ended Nine Months Ended September 30, September…
2014 Guidance ( in millions) Fourth Quarter Full Year Estim ated Production 2014 2014 Oil and NGLs (MMBbls) 2.2 - 2.5 9.1 - 9.3 Natural Gas (Bcf) 12.3 - 13.5 49.4 - 50.3 Total (Bcfe) 25.7 - 28.4 104.2 - 106.4 Total (MMBoe) 4.3 -…
2013 Year End Proved Reserves Classification of Proved Reserves Oil Natural Gas NGLs Natural Gas Equivalent Equivalent % of total PV-10 (1) Oil (MMBbls) (MMBbls) (Bcf) (MMBoe) (Bcfe) reserves (Millions) Proved developed producing…
Financial Commodity Derivatives (1) 2014 Swaps Brent Swaps LLS Swaps Barrels Per Avg Swap Barrels Per Avg Swap Month Day Price Day Price November 1,700 97.37 5,000 98.12 December 1,700 97.37 5,000 98.12 (1) All figures reflect…
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 44
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